Response June 22, 1994
Request
February 11, 1994
Utah State Tax
Commission
Attn: Commissioner
Shearer
160 East 300 South
Salt Lake City, Utah
84134
Dear Shearer:
XXXXX is a tax
consulting firm providing services to companies on sales, use and property
tax. Often times, we must represent our
clients when requesting information from the State tax Commission. today
we ask that XXXXX Company be granted the ability to take possession to
their interstate XXXXX inside the state and remain exempt from sales and use
lax.
As you may know, XXXXX
is engaged in interstate commerce and is part of a interstate chain running
from XXXXX and eventually into XXXXX and VIA other routes into XXXXX. XXXXX is
licensed with the Interstate Commerce Commission (ICC) under 49 USC 10901 and
regulated by the ICC under 49 USC 10501. Moreover, XXXXX would normally be
exempt under TC-767 if delivery was taken outside of the state. Ownership
change of its XXXXX is scheduled to take place fairly soon; however, XXXXX may
not be able to exchange ownership in another state. lt is our understanding
that trucking companies are able to take possession in the state while
remaining exempt, pursuant to R8965-19-97S.
In accordance with 59-210 and 59-12-104(12) it is further understood the
commission has the ability to grant our client the same exemption available to
tucking companies under R865-19-97S. With this in mind, we request the XXXXX
State Tax Commission allow our client, XXXXX, to take delivery of their XXXXX
within the state without being subject to taxation.
We realize that the
tax commission is currently working on this issue and we are confident that the
rule will be applied fairly to all interstate businesses. I
understand that you are busy at this time, however, our client's
scheduled exchange of ownership is imminent. l would greatly appreciate a
response before the first week of XXXXX. Thank you for your time and energy. If
you have any questions or concerns please call me at XXXXX.
Sincerely,
XXXXX
Re: Advisory Opinion - Application of Tax
Commission Administrative Rule R865-19-97S to Railroad Locomotives
Dear XXXXX:
Your request (copy
attached) for an advisory opinion as to whether acquisitions of railroad
locomotives may be exempted from the sales tax under conditions similar to the
treatment of trucks, trailers, etc. pursuant to Rule R865-19-97S was referred
to the Auditing Division for their analysis.
The division's staff
recommendations are as follows:
1.
Administrative Rule R865-19-97S, as currently written, applies only to
the “purchase of a truck, trailer, tractor, or tractor-trailer combination.”
2.
Railway locomotives are excluded from the referenced exemption. If
delivery of the locomotives takes place in Utah, the transaction will be
subject to the 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.
For the Commission,
Alice Shearer
Commissioner