96-123
Response
August 23, 1996
Request
To
XXXXX
I
would like to request an advisory opinion for the duty free shop at the Salt Lake
International Airport.
They
want to know if sales to Caribbean bound travelers have to pay tobacco tax on
cigars.
The
condition on these sales would be the traveler would have to show his ticket
for purchase and then the product would be delivered to the plane.
Please
respond as soon as possible.
XXXXX
XXXXX
Advisory Opinion - Tobacco tax on tobacco products
sold from a duty-free store
Dear XXXXX
We
have received your request for an opinion as to whether the cigarette and tobacco
tax is imposed on sales of cigarettes and cigars from the duty-free store at
the Salt Lake International Airport. We
find as follows:
The
cigarette and the tobacco taxes are levied on the first sale, purchase,
use or storage of cigarettes or tobacco products in this state. See §§59-14-204 and 59-14-302 Utah Code
Ann., and Utah Admin. Rule (emphasis added).
XXXXX, then is liable for the tax on the products it imports into the
state and distributes for sale or resale in Utah. A very narrow exemption exists for products that XXXXX exports
directly to dealers outside the state.
§59-14-401 Utah Code Ann.
You
have described a situation in which XXXXX sells cigarettes and tobacco products
to the duty-free store for resale. The transaction
between XXXXX and the duty-free store is not in international transit, and it
is not exempt. The fact that the
duty-free shop, in turn, resells the products for movement out of state does
not relieve XXXXX from its obligation to pay the tax. Of course, the duty-free store should not be charging additional
cigarette or tobacco tax on its sale of these products to consumers.
XXXXX
must affix stamps to the cigarettes sold to the duty-free store, and it must
report and remit the tobacco tax due on sales of other tobacco products to the
duty-free store.
Please
let us know if you have additional questions.
For
the Commission,
Alice
Shearer,
Commissioner