Response July 12, 1995
Request
February 16, 1995
Commissioner
Utah State Tax Commission
210 North 1950 West
Salt Lake City, Utah 84134
Dear Commissioners:
Regarding: IFTA, IRP, and ICC authority.
I spoke with XXXXX last December regarding the following question. It would be helpful it we could get written
confirmation of the position he explained to me.
We represent XXXXX, a company that leases its trucks from XXXXX. Futura does not have an International Fuel
Tax Agreement (IFTA) number. Instead,
XXXXX has the IFTA number, which is used by XXXXX; and XXXXX does the reporting
on behalf of XXXXX. Prior to 1994,
XXXXX had an International Registration Plan (IRP) number, but XXXXX did the
IRP reporting for XXXXX under the lease contract. Since 1994, XXXXX has had neither an IFTA nor and IRP numbers and
has used XXXXX numbers. XXXXX has
continued to do the reporting.
It is my understanding that the lease payments made to XXXXX by XXXXX
should be exempt form sales and use taxes, even though XXXXX must rely on XXXXX
IFTA and/or IRP authority. In other
words, the commission has allowed the exemption as long as the vehicle itself
is operating in interstate commerce under the required authority.
I realize leases that began prior to XXXXX do not qualify even if they
were in effect after that date.
Again, thank you for your attention to our concerns.
Sincerely,
XXXXX
RE: Advisory Opinion - Sales Tax Exemption for
Authorized Motor Carrier Vehicles
Dear
XXXXX,
You
requested an advisory opinion as to whether XXXXX is eligible for a sales tax
exemption on their truck leases. We
find as follows:
The
Utah State Legislature, in its 1995 session, passed House Bill 120 authorizing
a sales tax exemption for the lease of vehicles to authorized carriers. An authorized carrier is one who operates
under both the International Registration Plan (IRP) and the International Fuel
Tax Agreement (IFTA). The leases
described in your letter meet the requirements for this exemption. However, this exemption did not take effect
until July 1, 1995, and it does not apply retroactively to lease agreements
entered prior to that date.
This
opinion is based only on the facts presented.
If additional facts arise which present you with new questions, please
feel free to ask for another advisory opinion.
For
the Commission,
Alice
Shearer
Commissioner