95-088
Response
December 20, 1995
Request
To: XXXXX
Date: 11/24/95 8:49 a.m.
Subject:
Dog grooming
Is
it possible to send out such a thing as a clarification bulletin?
The
reason I ask is a lady in American Fork who applied for a Sales tax license
asked if the actual grooming of animals was taxable or considered a
service. We contacted XXXXX in auditing
and he provided up with R865-19S-78 and referred to Attorney Generals opinion
no. 70- 008 dated XXXXX stating wigs, dogs, livestock and a business machine
are very clearly within the definition of tangible personal property.
In
conveying this to the lady, she claims to have called all listed dog groomers
in Utah County and only one charged sales tax on the actual grooming. She is very concerned that if she must
collect the sales tax that all of the other groomer be brought into compliance
as well, if not she feels she will lose revenue to the shops that do not charge
the sales tax.
Would
it be possible to send a bulletin to only those in the SIC code of 0752, animal
specialty services and 5999 which covers pet food stores and pet shops, those
sic codes should cover all who do grooming.
cc: manager
XXXXX
Administration
Division
Utah
State Tax Commission
RE:
Advisory Opinion - Application of Sales Tax to Dog Grooming Services
Dear
XXXXX,
In
response to your request for an advisory opinion regarding the taxability of
dog grooming services, we find as follows:
Grooming
Services:
Dogs and other pets are tangible personal property. Under Utah Administrative
Rule R865-19A-78, charges for services to clean personal property are subject
to sales tax. Therefore, groomers should be collecting sales tax on charges for
grooming services in addition to any sales of retail property that they may
make.
Although your request did not
address other types of services performed on animals. we will take this
opportunity to restate our sales tax policy with regard to some typical types
of sales and services related to animals.
Veterinary Services: Charges
for medical services performed by a veterinarian are not subject to sales tax.
However, sales of medicine, food, and supplies are taxable except sales to
farmers and agricultural producers who use the products primarily and directly
in farming operations or agricultural production. The veterinarian is
considered the consumer of medicines and supplies that he or she uses in the
performance of medical services.
Animal Boarding Charges to
board an animal are not subject to tax. Where no separate charge or specific
amount is charged for food which is furnished as part of the boarding charges.
the proprietor is considered the consumer of the food.
The
note to you from XXXXX indicates that he received information from one dog
groomer concerning widespread non-compliance in the industry. If you receive
additional information that supports that claim, please bring it to my
attention so we can publish a Tax Bulletin on this topic.
For
the Commission,
Alice
Shearer