94-028
Request
Utah State Tax
Commission
210 North 1950 West
Salt Lake City, UT
84134
ATTN: Tax
Commissioners
This is the third
request we have made for a determination of XXXXX tax status with regard to the
products we manufacture. It is obvious
that we need this determination to perform ongoing business under the correct
status. We, therefore, respectfully
request that you review the following products in making a timely decision as
to whether the following products are classed as tangible personal property
attached to real property or as real property.
VISUAL DISPLAY BOARDS
We are the
manufacturer of visual display boards.
This class includes markerboards, chalkboards, tackboards, directories,
trophy cases, etc. These boards are
primarily used in new construction to schools, churches, businesses, hospitals,
etc. They are attached to the wall
usually after the painting of the wall or any wall covering has been
complete. Most trophy cases are stand
alone; however, they are occasionally installed in a recess left in the wall.
PORTABLE OFFICE
DIVIDERS
We are a manufacturer
of portable (on rollers) office dividers.
This divider was designed to roll into position and is not attached in
any way to the building.
FOLDING CLASSROOMS
We are also a
manufacturer of a folding classroom that is similar to the roll-around in that
it can be stacked against the wall or it can be folded out to provide a
classroom or an office in a larger area.
However, this particular product is attached to the wall and is usually
installed after the construction period.
PORTABLE TOY CABINETS
We are a manufacturer
of a portable toy cabinet. This is a locked
toy cabinet that is stand-alone, i.e. not attached to any part of the building.
Please note that we
have been advised that this is probably personal tangible property, and we have
been treating it as such. However, we
have not heard back from our previous requests and look forward to your quick
consideration with regard to these items.
Sincerely,
XXXXX
Re: Advisory Opinion -- Real Property/Personal
Property Determinations for Sales Tax Purposes
Dear XXXXX:
You requested an advisory
opinion as to whether certain specific items are deemed to be treated as
tangible personal property or real property for sales and use tax purposes.
Our research indicates
as follows:
1.
Markerboards, chalkboards, tackboards, directories, and trophy cases
which are either free-standing or are attached to the wall after the painting
of the wall, or after the wall covering has been completed, could generally be
considered as remaining tangible personal property. A trophy case which is built into a recess in the wall and
intended to be permanently affixed would generally be considered part of the
realty after installation.
2.
Portable office dividers which are on rollers, designed to be rolled
into position and not attached to the
building would also be considered as tangible personal property.
3.
The folding classrooms, called “Folding Dividers” in the catalog you
have provided, would also be considered as tangible personal property. The method of attachment to the all is not
sufficient to be considered as converting the panels to realty. It would appear that simply attaching
another set of hinges to the all in a different location would make the
dividers easily relocatable.
4.
Your portable toy cabinets which are not attached to any part of the
building are clearly tangible personal property.
This opinion is based
upon the facts presented in your letters and catalog. 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 Taxpayers Bill of Rights are attached.
For The Commission,
Alice Shearer
Commissioner