96-135
Response September 3, 1996
Request
Date: August
27, 1996
To: XXXXX
From: XXXXX
Subject:Request for Tax Exemption on Sales to the
Blind
Quite some time ago I spoke with you about materials
which we purchased in quantity and then resold to blind individuals,
specifically the possibility of these items being classified as tax exempt.
You requested a paragraph regarding ourXXXXX at the
division of XXXXX. I am faxing with
this memo information from the XXXXX.
If additional information is needed, you can contact
me at XXXXX or XXXXX.
Thank you for your help in this matter.
Information:
XXXXX is a section of the Division of Services XXXXX
which provides low vision evaluations to individuals who have usable residual
vision. In addition to counseling
clients on how to best utilize their remaining sight, they sell items which
enable these individuals to maximize the use of this vision. These include aids to see things at a
distance, magnification devices for reading and other near vision tasks,
special lamps to improve lighting, and other non-optical aids which enables
these individuals to be more independent.
All optical and non-optical aids are sold at our cost; there is no
charge for the evaluations or nay of the counseling services.
XXXXX
RE:
Advisory Opinion - Utah Sales and Use Tax Exemptions
Dear XXXXX,
We
received your request for an advisory opinion regarding the sales tax treatment
of items sold to the visually impaired to enable them to maximize their
vision. Specifically, you inquired
whether such items are tax exempt when sold to the visually impaired. We find as follows:
In
general, sales of home medical equipment and supplies are exempt from Utah
sales and use tax. See Utah Code Ann. §
59-12-104(40)(1996 as amended). However,
section 59-12-102(9)(b)(1996 as amended) provides certain limitations as to
what constitutes “home medical equipment and supplies.”
Section
59-12-102(9)(b) states in pertinent part:
(9)(b)
“Home medical equipment and supplies” does not include:
. .
.
(ii)
eyeglasses, contact lenses, or equipment to correct impaired vision; or
. .
.
Thus, any equipment your organization sells which is
used to “correct impaired vision” is subject to Utah sales and use tax.
As
to tax exempt purchases, Utah law does not provide a special exemption for
blind or visually impaired individuals purchasing items to improve their
vision. Rather, the Utah Code imposes a
sales tax on all purchases, regardless of a purchaser’s physical limitations,
for sales tax purposes.
Utah
Code Ann. § 59-12-103(1)(l)(1996) states in pertinent part:
(1)
There is levied a tax on the purchaser for the amount paid or charged for the following:
. .
.
(l)
tangible personal property stored, used, or consumed in this state.
Therefore, blind or visually impaired individuals
must pay sales tax for tangible personal property purchased from your
organization. Furthermore, your
organization is responsible for collecting the tax from such individuals and
remitting that tax to the Tax Commission.
Purchases
made by the state or by state institutions are, generally, not subject to
tax. If your organization qualifies as
a state institution, the purchases it makes on behalf of the state are tax
exempt. See Utah Code Ann. § 59-12-104
(3)(1996). Therefore, as a state
institution, your organization should not pay sales tax for the materials it
purchases to be resold to blind or visually impaired individuals.
Additionally,
if your organization qualifies as a “charitable institution,” then purchases
made to or by your organization would be tax exempt. See Utah Code Ann. § 59-12-104.1 (1996). To qualify, your organization must be
recognized as exempt according to section 501(c)(3) of the Internal Revenue
Code and must obtain a sales tax exemption number from the Utah State Tax
Commission.
We
hope this information will resolve any concerns you may have regarding this
matter. Please let us know if we can be
of further assistance.
For
the Commission,
Alice
Shearer,
Commissioner