96-133

Response October 3, 1996

 

 

Request

XXXXX

 

August 23, 1996

 

W. Val Oveson

State Tax Commission

210 N. 1950 W.

Salt Lake City, UT 84134

 

To Whom it May Concern:

 

We are an accounting firm representing an Iowa-based manufacturing corporation which will soon be soliciting business in your state.

 

All solicitation will be done as interstate commerce over the telephone and our client will not have any physical presence or employees in your state.

 

1) Please forward information on corporation registration requirements.

 

2) Also, we request that you send us information on filing requirements as related to corporate franchise and/or income taxes, as well as any other relevant filing requirements. Also, please provide information as to what establishes NEXUS.

 

3) Also, most sales will be to government agencies, with a lesser amount of sales to non- government agencies. Please forward sales tax filing requirements for an out of state vendor, along with the information as to what establishes NEXUS.

 

The above requested filing requirement information should be sent to:

 

XXXXX

 

Sincerely,

 

XXXXX

 

October 3, 1996

 

 

XXXXX

 

Advisory opinion - Nexus

 

Dear XXXXX

 

We have received your request for advice concerning nexus and filing requirements for your client who will be making sales in Utah. Enclosed is a publication which discusses nexus requirements for both sales tax and income tax. Also enclosed is a publication called “Doing Business in Utah.” This publication should provide information about filing requirements. You may also wish to visit our Web site at www.tax.ex.state.ut.us for tax information or for information provided by other state agencies.

 

With regard to sales to state agencies, Utah state and its political subdivisions (including local counties and municipalities) are exempt from sales tax on purchases. The federal government may also make tax free purchases in Utah. The exemption does not apply to any other states making purchases in Utah. Copies of Utah Administrative Rules R865-19S-41 and R865-19S-42 are enclosed for your information concerning these exemptions.

 

If you have other questions of this nature, please feel free to contact our Customer Service Division at 801-297-2200.

For the Commission,

 

 

Alice Shearer,

Commissioner