96-090

Response May 15, 1996

Request

May 8, 1996

Dear XXXXX

The Administrative Office of the United States Courts is negotiating a contract with the XXXXX for 25 guest rooms for faculty, meeting room rental, and audio visual equipment rental for a training program on XXXXX. The charges for the guest rooms, meeting room rental fees and A-V rental will be paid for under a purchase order issued by the Administrative Office. Because the Administrative Office is a federal agency, and because payment will be made to XXXXX under a government purchase order, we have advised the hotel that Utah State taxes should not be included in our billing. XXXXX has requested that we provide written confirmation from the Utah Tax Commission. Accordingly, we ask that confirmation be faxed so that we may attach it our contract and return it to XXXXX.

Please do not hesitate to contact me at XXXXX (telephone) if you have ally questions regarding this matter. My fax number is XXXXX.

Sincerely,

XXXXX

May 15, 1996

XXXXX

Advisory Opinion - Sales tax on purchases by federal government entity

Dear XXXXX

We have received your request for confirmation that travel expenses paid directly to the a Utah vendor by the United States government are exempt from sales tax. So long as the purchase order is issued and paid by your agency directly to the vendor, and not to individual attendees by way of reimbursement, your purchases are exempt from Utah sales tax.

Please let us know if we can be of further assistance.

For the Commission,

Alice Shearer,

Commissioner