95-067

Response October 5, 1995

Request

July 7, 1995

XXXXX

Auditing Division

Utah State Tax Commission

210 North 1950 West

Salt Lake City, Utah 84134

Dear XXXXX,

Effective July 1, 1995 XXXXX implemented a 1/4% gross-taxable-receipts-based business license fee or tax under the authority of Section 10-1-203 Utah Code Annotated. Some concerns expressed by local businesses have generated the following questions for which some guidance from the Tax Commission would be appreciated.

1. Some businesses would have a difficult and expensive task to alter cash registers, computer programs, or other sales receipting and documentation tools in order to show the local fee or tax separately from Utah State sales tax, on receipts of sale.

As long as the business tracks, books, reports, and pays the appropriate amounts of state sales tax and local fee or tax, must receipts of sale show the two amounts separately as opposed to showing one combined state and local tax amount?

Of course, what we are trying to avoid, if possible, is any unnecessary expense to the businesses for equipment or programming changes.

2. If some transactions require showing the fees separately, under what circumstances, or for what kinds of sales, must the local business license fee or tax be shown separately from Utah State sales tax on sales receipts, invoices, or motor vehicle contracts of sale?

Thank you for your previous assistance and for the opportunity to clarify these questions.

Sincerely,

XXXXX

October 5, 1995

XXXXX

RE: Advisory Opinion - Documentation of Local Business License Tax on Sales Tax Receipts

Dear XXXXX,

We have received your letter regarding the XXXXX business license fee imposed on the gross receipts of businesses operating within your city. It is the Commission's position that only the local option sales and use taxes specified in Chapter 12, Part 2 of Title 59 of the Utah Code may be included in the combined tax rate shown on sales receipts or invoices which document taxable sales transactions.

Please let us know if we can answer any other questions.

For the Commission,

Alice Shearer

Commissioner