95-060

Response September 26, 1995

Request

September 14, 1995

ATTN: XXXXX

Utah State Tax Commission

210 No. 1950 W.

Salt Lake City, UT 84134

XXXXX,

In contacting the tax commission in regard to sales tax exemption on helium, I was referred to your office.

I would like to request any and all information that would pertain to this matter. Would you please mail it to the above address at your earliest convenience.

Thank you for your cooperation.

Sincerely,

XXXXX

September 26, 1995

XXXXX

RE: Advisory Opinion - Application of Sales Tax to Sales of Helium

Dear XXXXX,

We have received your request for information regarding the application of Utah sales and use tax to sales of helium. Your letter did not include details about your particular circumstances, so we offer you the following general guidelines.

The sales of fuels are exempt from sales tax if they are used for:

1. mining or extraction of minerals;

2. agricultural uses; or

3. manufacturing.

A fuel is defined as a product that burns independently to produce heat or energy.

Unless you can show that helium is a fuel as defined above and that it is being used for one of the qualifying activities listed, the transaction is taxable. Please contact us again if you have other questions.

For the Commission,

Alice Shearer

Commissioner