95-003
Response March 13, 1995
Request
Dear Sirs;
This is to inquire about the collection of sales taxes in your state.
We are a sales office, representing foreign machinery companies and
would like to know your state's policy on collecting sales taxes on machinery that
may be imported to a business in your state.
This machinery would be used to manufacture our customer's products.
We also might consider stocking replacement parts for these machines in
Georgia and selling them to customers in various states as needed.
Would a sales tax need to be collected on either.
Please advise.
Thank you very much for your help.
Very truly yours,
XXXXX
TO: XXXXX
FROM: XXXXX, Secretary
DATE: January 9, 1995
SUBJECT:Request for Advisory Opinion - No. 95-003DJ
Attached is a request for an advisory opinion from XXXXX of XXXXX. Will you please review the request of XXXXX
for an advisory opinion regarding the collection of sales taxes on machinery
that may be imported to a business in Utah.
Please prepare the response for signature by the Commission as per the
guidelines established by them.
Thank you.
XXXXX
TO: ALICE SHEARER, Commissioner
FROM: XXXXX, Executive Director
DATE: March 8, 1995
RE: Advisory Opinion
for XXXXX - XXXXX - Sales or Use Tax Application to Sales of Manufacturing
Machinery and Replacement parts for such Machinery
Auditing
Division has prepared an advisory opinion for XXXXX of XXXXX. I have reviewed this opinion and am
forwarding it to you for your review and signature.
Thank you!
XXXXX
Re: Advisory Opinion - - Sales
or Use Tax Application to Sales of Manufacturing Machinery and Replacement
Parts for such Machinery
Dear XXXXX
You requested an advisory opinion as to whether the sale of
manufacturing, machinery or replacement parts for such machinery is subject to
the Utah sales or use tax.
1. Utah Code Annotated Section 59-12-104(15)
and Administrative Rule R865-19S-85 (copies attached) allow and describe sales
and use tax exemption for certain sales of manufacturing equipment and
machinery for new or expanding manufacturing facilities.
2. Your responsibility as
seller, however, is to collect the tax unless your customer provides you with a
completed exemption certificate as required under Rule R865-19S-23 (copy
attached). A blank exemption
certificate, Form TC-721, is attached for your review.
3. Please note that replacement
parts will not qualify for the exemption.
This opinion is based upon the facts presented in your letter. 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 judgement 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