96-072
Request
April 25, 1996
To
whom it may concern;
I
have a tour that travels throughout the state of Utah. Clients from around the
world will be coming to fly fish, rappel, ATV, horseback ride, Mt. bike and
more. The tour begins in Salt Lake City and will end in Southern Utah. There
will be lodging accommodation for the clients in, hotels, motels, and XXXXX's.
The tour will last six day's and all transportation in Utah is included.
Could
you please let me know what amount of tax I need to collect to cover all the
recreational charges, XXXXX and any other tax that I need to collect. If you
have any questions please call, me ASAP at XXXXX.
Sincerely,
XXXXX
XXXXX
RE: Advisory Opinion - sales tax on recreational
activities.
Dear XXXXX
We have received your request for sales tax information
pertaining to tours that you will conduct in Utah. From the information provided in your request, we assume that the
activities take place in Utah.
Under Utah law, charges for admissions or user fees
for recreational activities are subject to sales tax. Additionally, charges to your clients for guide service, camping,
lodging, meals, entrance onto private lands, access to private waters, or use
of facilities or equipment are taxable.
The sales tax rate varies from place to place. When you arrange for lodging or recreational activities, the tax
rate at the point sale applies. If you
cannot determine a tax rate for a particular area, please contact us for help.
Charges for lessons are not taxable (e.g. charges
for a fly fishing lesson). To qualify
as a lesson, the essence of the activity must be instruction in development of
skills, knowledge, and abilities to perform the related activities. Specific examples include golf and tennis
lessons which provide basic or enhanced skill training to benefit the student
in future participation. The
instruction must be active. The mere
presence or availability of instructors is not sufficient to meet the criteria
allowing exemption. The exemption applied to lessons does not extend beyond
reasonable charges for the instruction provided. Commercial interstate air travel or interstate bus travel is not
subject to sales tax.
If charges to your customers include both taxable
and non-taxable charges, the non-taxable charges must be separately stated on
the invoice or receipt or the entire charge is taxable.
For
the Commission,
Alice
Shearer,
Commissioner