95-048
Response
August 22, 1995
Request
To:
Val Oveson
From:
XXXXX
Just
a note of appreciate to you, the other Commissioners in attendance and the
others from your staff who took the time to meet with our group this morning
relative to the method of reporting for the sales tax exemption on equipment
for home medical purchases.
I
realize that it must have taken longer than you and the others had planned to
give to this project. However, I
believe that meetings like this are very important to all involved. Seldom do all involved feel absolutely that
they got what they wanted from the meeting.
However, I believe that they were satisfied with the agreement on the
approach to reporting that was reached.
As one not directly involved in dispensing this equipment I have no way
of judging the impact it will have on the Tax Commission nor on the vendors.
Please
express my thanks to the others in attendance.
It was nice visiting with the Commissioners again.
XXXXX
P.S.
Thanks
for sharing you opinion of the work of my son XXXXX in representing the
XXXXX. It is always pleasing and nice to
hear good things about tour children in their work and otherwise.
XXXXX
RE:
Advisory Opinion - Record keeping requirements for sales of tax exempt home
medical equipment
Dear
XXXXX,
We
appreciate ed the opportunity to meet with you and the other representatives of
your industry. After considering your
remarks, discussing the record keeping requirements with our Auditing Staff,
and reviewing the law, we conclude that the purchaser must sign an exemption
certificate verifying that the requirements for exemption have been met. That certificate and the prescription must
be maintained in your tax records.
Section
59-12-106(2) (copy enclosed) of the Utah Code requires an exemption certificate
signed by the purchaser. Regarding the TC-721, our auditing staff does not
require you to use that particular form. But it does require some form which
contains the same information and the purchaser’s signature. Perhaps we can work with you to either design
a different exemption certificate or incorporate the exemption certificates
into your invoices. In any case, you
must use some type of exemption certificate.
If an auditor finds a sale on which no tax has been collected, the
auditor will assume that the sales was taxable unless you have the exemption
certificate and prescription. In that
case, we will look to you for the tax on that item. As long as the exemption certificate is in your files, we will
look to the customer for any tax that may be due.
Please
let us know if we can be of further assistance.
For
the Commission,
Alice
shearer
Commissioner