95-073
Response
October 17, 1995 and October 17, 1995
Request
XXXXX
RE:
Advisory Opinion - XXXXX responsibility to collect sales tax from the XXXXX.
Dear
XXXXX:
We
have received your request for an advisory opinion as to your responsibility
for collecting sales tax from the XXXXX.
As we understand the facts, the XXXXX issued to you an exemption
certificate certifying the eligibility for a sales tax exemption. Along with the exemption certificate, the
XXXXX submitted to you a copy of a letter from the Auditing Division of the Tax
Commission which authorized the exemption.
You contacted our offices prior to the event to confirm the XXXXX’s tax
exempt status, but you did not receive a timely response. Therefore, you treated the XXXXX as tax
exempt.
Your
question is this: if the XXXXX is not exempt as a government agency, are you
required to bill the XXXXX for the sales tax?
The answer is “no.” Because you accepted the exemption certificate in
good faith, you are not liable to collect sales tax from the XXXXX. If sales tax is due, our auditors will look
to the XXXXX for payment.
Please
keep a copy of the exemption certificate, the letter from our Auditing Division
and this letter with your tax records.
Let us know if we can be of further help.
For
the Commission,
Alice
Shearer
Commissioner
XXXXX
Dear
XXXXX,
We
recently received an inquiry from XXXXX in Park City regarding the tax exempt
status of your organization. Although
the XXXXX has a letter from our Auditing Division, dated July 19, 1989,
authorizing the XXXXX to make tax exempt purchases, the Commission does not
endorse that decision. This letter is
to inform you that you may not rely on the 1989 letter as confirmation of your
tax exempt status.
Because
you relied on good faith on a letter from our Auditing Division, we will not hold
you liable for the sales tax status due on your recent transactions with
XXXXX. However, we will not disallow
your exemption in the future. You may
submit to us information to support your argument that the XXXXX is a
government agency if you would like us to reconsider the issue. If so, please address your request to:
XXXXX
Thank
you for your cooperation.
For
the Commission,
Alice
Shearer
Commissioner