95-095
Response
December 23, 1995
Request
Val
Oveson, Chairman
State
Tax Commission
Heber
M. Wells Office Building
160
East 300 South
Salt
Lake City, Utah 84134
Dear
Mr. Oveson:
We are the attorneys for a firm which
may be selling its product to organizations in your jurisdiction.
This product is in the nature of an
incinerator and will transform medical waste into ash or recycle it in
conformity with Federal and State requirements.
Please advise us as to the status of
the receipts from such products for sales and/or use tax purposes.
Thank you for your attention to this
matter.
Very
truly yours,
XXXXX
XXXXX
RE: Advisory Opinion -Application of use tax to
sales of incinerators to customers in Utah.
Dear
XXXXX
We have reviewed your request for
advice regarding the operation of our sales and use tax laws on sales by your
client to customers in Utah. Your
inquiry lacked specific details about the sales. For purposes of this opinion, we assume that your client is
making retail sales of tangible personal property in Utah and that your client
is not installing the incinerators in a way that converts the incinerator to
real property.
Use tax is a tax on the storage use
or consumption of tangible personal property in Utah. When tangible personal property is sold in interstate commerce
for use or consumption in this state, the sale is subject to Utah use tax.
Although sales and use tax is the liability of the purchaser, the retail vendor
is responsible for collecting and remitting the tax to the State of Utah if the
vendor has an office, warehouse, salesperson, or other physical presence in
Utah. Utah Code Section 59-12-107 (5)
states, in pertinent part:
(1) (a) Each vendor shall pay or collect and remit the
sales and use taxes imposed by this chapter if within this state the vendor:
(I) has or utilizes an office, distribution house, sales
house, warehouse, service enterprise, or other place of business,
(ii) maintains a stock of goods;
(iv) regularly engages in the delivery of property in
this state other than by common carrier or United States mail; or
(v) regularly engages in any activity in connection with
the leasing or servicing of property located within this state.
As a vendor, your client is required
to obtain a sales tax license (application attached), normally, the vendor is
required to file a return and remit the tax quarterly, on or before the last
day of the month next succeeding each calendar quarterly period. However, if the tax liability is $$$$$ or
more, the vendor must file monthly. If
the tax liability is $$$$$ or more, the vendor must file monthly via electronic
transfer.
Please let us know if you have additional
questions.
For the
Commission,
Alice
Shearer
Commissioner