Response
October 29, 1992
Letter
October
29, 1992
XXXXX
Re:
Advisory Opinion - Excise Tax on Cigarettes
Dear
XXXXX:
Your
request for an advisory opinion that your client be permitted to post a sign on
cigarette vending machines showing a breakdown of the sale price of the
cigarettes, the $1.00 Federal excise tax, the amount of the sales tax and the
total vended amount was referred to the Auditing Division for their analysis.
It
is the division staff recommendation that:
1.
Based upon the decision of the Utah Supreme Court in the XXXXX case, and Rule
R865-19-52S separately stated Federal excise tax is not subject to sales tax.
It is not necessary that a sign be posted on each vending machine, providing
accounting records reflect the sale price separate from the Federal excise tax.
If this is consistently done, sales tax is not due on the excise tax.
Based
upon the facts presented in your letter, we are in agreement with the Auditing
Division's recommendations. Obviously, if there are deviations from these
facts, this opinion may be negated.
If
you do not agree with this determination, you may appeal to the Tax Commission
for a formal hearing. The results of that hearing would constitute a
declaratory judgment and be appealable to the Utah State Supreme Court. A
Notice of Appeal Rights and a copy of the Utah Taxpayer Bill of Rights are
attached.
To
arrange for Americans with Disabilities Act accommodations, please contact the
Tax Commission at (801) 530-6920, (801) 530-6077 or TDD (801) 530-6269 allowing
three working days notice.
For
the Commission,
Joe
B. Pacheco
Commissioner
Joe
B. Pacheco, Commissioner
Utah
State Tax Commission
160
East Third South
Salt
Lake City, Utah 84134
Dear
Mr. Pacheco;
A
client of mine sells cigarettes through vending machines. At the present time there is $1.00 per pack
federal excise tax. One of the following
statements is posted on the vending machines:
Vendor
Name
Sales
Invoice
Established
Sales Price $$$$$
Fed
Excise tax $$$$$
Sales
Tax $$$$$
Total
Amount $$$$$
This
is representative and if the total price is different, the taxable amount and
the sales tax amount will be adjusted.
or
Vendor
Name
Sales
Invoice
Established
Sales Price equals the TOTAL AMOUNT less federal excise tax of $1.00 and applicable sales tax.
For
example:
Established
Sales Price $$$$$
Fed
Excise Tax $$$$$
Sales
Tax $$$$$
Total
Amount $$$$$
Please
advise me by XXXXX if this procedure is not correct.
Respectfully,
XXXXX