96-110

Response July 9, 1996

Request

ATTN: XXXXX

DEAR XXXXX

In 1994 the legislature passed several bills affecting sales tax on many different kinds of businesses. Some of the most affected were the Transportation for hire types of businesses. The downtown taxicab and carriages for hire were included in those bills.

When we received word that we were included in the same verbiage as the taxicabs since we operate in the downtown district and share or have similar curb use and are for intrastate movements of people, our concerns were the same as the taxicabs, since we have close to forty different individuals driving the carriages and reporting their sales for their own shifts. This of course has been a paperwork nightmare since it is very difficult to figure and give change to the fare while holding on to a horse and then calculating each drivers sales taxable amount for the night. In the 1995 session we were told that any changes with the sales tax that affected the taxicab service would apply to us. We were delighted with the 1996 legislature’s passage of the bill exempting the taxicab and intrastate movements of people for hire and would like a clarification on SB 50 as to whether it will hold true to the carriages for hire.

Sincerely,

XXXXX

July 9, 1996

XXXXX

Advisory Opinion - Scope of sales tax exemption for taxicabs

Dear XXXXX,

We have received your request for information about whether the sales tax exemption for charges by taxicabs applies to charges for horse-drawn carriage rides. It does not. To qualify for the exemption, the carrier must be classified within code 4121 of the Standard Industrial Classification Manual (1987). That classification includes “passenger transportation by automobiles not operated on regular schedules or between fixed terminals. Horse-drawn carriages are classified in code 4789 of the manual, and, therefore, do not qualify for this exemption.

We understand your argument that accounting can be difficult, but we have no authority to extend the scope of this exemption beyond that stated in the statute. We suggest that you present your arguments to the legislature for consideration during the next session.

If we can answer any other questions, please let us know.

For the Commission,

Alice Shearer,

Commissioner