Response
November 20, 1992
Letter
November
20, 1992
XXXXX
Re:
Advisory Opinion - Radio Relay Transmitter
Dear
XXXXX:
Your
request for an advisory opinion as to whether your charges for customer use of
a radio relay transmitter (repeater) are subject to sales tax was referred to the
Auditing Division for their analysis.
It
is the division's staff recommendation that the service falls within the
definition of "telephone service" as outlined in Utah State Tax
Commission Administrative Rule R865-19-90S (copy enclosed). Such charges would,
therefore, be subject to the tax under Utah Code Annotated Section
59-12-102(1)(b)(ii).
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.
In
contacting the Tax Commission, if special accommodations are needed in
accordance with the Americans with Disabilities Act, please call (801)
530-6920, (801) 530-6077 or TDD (801) 530-6269 allowing three working days
notice.
For
the Commission,
Joe
B. Pacheco
Commissioner
Utah
State Sales Tax Commission
Utah
State Auditing Division
Heber
M. Wells Building
160
E. 300 So.
Salt
Lake City, Utah 84134
November
3, 1992
Reference:
Advisory Opinion Requested:
Dear
XXXXX,
Are
charges for customer use of a radio relay repeater subject to sales tax? We do not furnish any tangible property to
customer. (Equipment is owned by customers and sales tax is of course collected
when the equipment is sold to the customer).
Our
question for tax determination is:
Are
charges for customer use of radio relay transmitter subject to sales tax?
Preliminary information from the Tax Commission by telephone indicates that
since there is no tangible personal property involved that such charges are not
subject to sales tax.
If
you have any questions please direct any inquiries to the attention of XXXXX
at: XXXXX.
We
appreciate your help in clarifying this tax matter for us.
Sincerely
XXXXX