Response November 1,
1993
Request
November 1, 1993
Utah State Tax
Commission
Attn: XXXXX, Auditing
Division
Heber M. Wells
Building
160 E. 300 South
Salt Lake City, Utah
84134
Dear XXXXX:
The XXXXX, a 501 c(6)
non-profit corporation, operates the XXXXX and does tourism promotion for XXXXX
Counties under a contract with XXXXX County, which has a inter local agreement
with XXXXX County. The Counties allocate all of their Transient Room Tax to the
XXXXX to be expended by the Chamber according to an annual marketing plan
approved by both Counties. Although the Chamber has just one checking account,
every expenditure for the XXXXX is approved by a XXXXX member and is tracked by
a very good accounting system which treats the XXXXX as a separate cost center.
An annual audit completed by a Certified Public Accountant and reviewed by the
XXXXX County auditor verifies that expenditures of Transient Room Tax funds are
in accordance with the contract. The Chamber also makes quarterly and annual
reports to the XXXXX County Council and the XXXXX County Commission to see that
the XXXXX is being operated in agreement with the wishes of the elected
officials, the contract and the approved marketing plan.
We think that
purchases made expressly for the XXXXX should be sales tax exempt because those
purchases are made with Transient Room Tax funds with the guidance, direction
and approval before and after the fact by XXXXX and XXXXX County.
We ask the Tax
Commission to allow the Chamber to make sales tax exempt purchases when those
purchases are specifically for the XXXXX using Transient Room Tax funds. We
also ask that this ruling be made retroactive.
Sincerely,
XXXXX