95-096
Response
December 23, 1995
Request
Utah
State Tax Commission
Sales
Tax Department
210
North 1950 West
Salt
Lake City, Utah 84134
ATTN:
W. Val Oveson, Chairman
XXXXX
RE: Sales Tax on Catalog Orders
XXXXX
is coming out with a Retain Catalog of our products which include: water and
air filters; hair, skin and body care products; cleaning products; vitamins and
minerals. All of these products are
environmentally friendly.
XXXXX
is located in XXXXX, however, our catalog will be available through out the
country. Orders will be taken by phone
then shipped by common carrier from our distribution center, also located in
XXXXX.
My
question is whether or not we should be charging your state sales tax rate for
merchandise shipped to your state.
If
there are any questions please call XXXXX.
Any correspondence you have regarding this matter can be sent by
fax. Our fax number is XXXXX. It is imperative that we receive this
information as soon as possible.
Sincerely,
XXXXX
XXXXX
RE: Advisory
Opinion - Collection of sales tax on items sold and delivered to customers in
Utah.
Dear
XXXXX,
We have received your request for
information regarding your company’s obligation to collect Utah sales and use
tax on items sold by your company and delivered to your Utah customers. We find as follows:
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. Section 59-12-107(1)(a)(iii) of the Utah Code 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.
It
appears from your description that XXXXX does not have a physical presence in
Utah. Therefore, XXXXX is not required
to collect and remit Utah sales tax. If
XXXXX uses an in- state sales force (including independent contractors) to
deliver the catalogs or solicit order, XXXXX must obtain a sales tax license
and collect and remit sales and use tax on its Utah sales.
If we can answer any other
questions, please let us know.
For
the Commission,
Alice
Shearer
Commission