96-070

Response May 3, 1996

Request

TO: XXXXX County Clerk/Auditor

FROM: XXXXX, Deputy XXXXX County Attorney

DATE : January 23, 1996

RE: Assistance for Volunteer Fire Departments

by XXXXX County

By Motion made on January 22, 1996, the XXXXX County Commission adopted a policy authorizing you to assist volunteer fire departments within XXXXX County to acquire equipment for the fire departments. It is my opinion that XXXXX County can accomplish this pursuant to authority granted to XXXXX County in §17-5-257, Utah Code Annotated, 1953, as amended. XXXXX County can be the sponsoring entity to acquire equipment for volunteer fire departments that are not established as legal entities.

cc: XXXXX

MEMO

DATE: MARCH 5, 1996

FROM: XXXXX

TO: XXXXX VALLEY VOLUNTEER FIRE DEPT

REFERENCE: TAX EXEMPT STATUS

ATTACHED IS A MEMO FROM THE COUNTY ATTORNEY'S OFFICE GIVING ME AUTHORIZATION TO ASSIST YOU IN ACQUIRING PURCHASES ON A TAX EXEMPT BASIS. UNDER AUTHORITY QUOTED, XXXXX COUNTY CAN BE THE SPONSORING ENTITY FOR THIS PURPOSE. THEREFORE PLEASE USE OUR EMPLOYER IDENTIFICATION NUMBER XXXXX. IF VENDORS NEED MY SIGNATURE, PLEASE HAVE THEM MAIL THE REQUEST TO ME AT THE ADDRESS SHOWN ON MY LETTERHEAD.

I HOPE THIS WILL FULFILL THE NECESSARY INFORMATION THAT YOU REQUESTED. PLEASE CALL ME AT XXXXX IF I CAN BE OF ADDITIONAL HELP.

May 3, 1996

XXXXX

Re: Advisory opinion - Application of government tax exempt status to private volunteer fire department.

XXXXX,

XXXXX forwarded your request for an advisory opinion to us along with copies of documents from XXXXX County officials authorizing the XXXXX Valley Landowners Association to purchase fire fighting equipment tax free. You are questioning the Landowners Association’s exempt status. Noting from the invoice that the XXXXX Valley Landowners Association is making the purchase from its “fire department account,” we find as follows:

Although XXXXX County may provide for the organization and support of a fire department, and procure fire apparatus and equipment for voluntary or paid fire companies, it has no authority to grant or extend tax exempt status to a private landowner’s association. Under Utah law, XXXXX County, like all political subdivisions of the state, may purchase the fire equipment tax free. However, the XXXXX Valley Landowner’s Association is not a tax exempt government entity and it cannot rely on this provision to claim tax exempt status.

State law provides for tax exempt purchases by certain charitable organizations. If the XXXXX Valley Landowner’s Association is recognized by the Internal Revenue Service as a 501 (c) (3)organization, any purchases made in the conduct of its regular charitable functions or activities are tax exempt. If the landowners association is a qualified charitable organization, it will have tax exemption number issued by the state.

Thank you for bringing this matter to our attention. We will mail a copy of this reply to XXXXX, XXXXX County Clerk/Auditor in order to clarify the matter with the county officials. Please let us know if you have further questions.

For the Commission,

Alice Shearer,

Commissioner

May 3, 1996

XXXXX

Re: Attached letter concerning purchases by the XXXXX Valley Landowner’s Association

Dear XXXXX

We have received a request from XXXXX to verify a claim for sales tax exemption by the XXXXX Valley Landowners Association. Our response is enclosed for your information.

XXXXX Valley Landowner’s Association is not a political subdivision of the state, and it may not claim exempt status as a government agency. XXXXX County may have authority under section 17-5-257 to purchase fire equipment for the landowner’s association, but the county must purchase and pay for the equipment to claim the exemption. The county may then give or loan the equipment to the landowners association, but if the county sells the equipment to the landowners association, the county must collect sales tax on the transaction.

Please contact us if you have further questions.

For the Commission,

Alice Shearer,

Commissioner