96-162

Response October 28, 1996

Request

October 8, 1996

From: XXXXX

To: Utah State Tax Commission

Attn: XXXXX

210 N 1950 W

Salt Lake city UT 84134

Subj: Advisory Opinion

Dear XXXXX

Please provide advise whether my business (XXXXX) is subject to withholding State Sales Tax under the following business practice:

XXXXX is currently buying, and selling to salespeople, brochures for a reminder service provided by the “Lifetime Reminder Service” (LRS), located in Phoenix, Arizona. These brochures each describe the LRS service and include a unique, registered identification number which the direct salesperson requires in selling the service; however, the service itself is entirely performed by LRS in Phoenix, Arizona.

XXXXX is interested only in selling these brochures to salespeople who in turn make direct sales to the ultimate customer. Are sales of these brochures by XXXXX to salespeople in Utah subject to Utah sales tax?

Thank you in advance for your opinion regarding this question. We look forward to hearing from you soon If you should have any questions, I can best be reached at my daytime telephone number which is XXXXX.

Sincerely,

XXXXX

October 28, 1996

XXXXX

Advisory opinion - sales of brochures

Dear XXXXX

We have received your request for information concerning the application of sales tax to sales of brochures in Utah. As we understand the transaction in question, XXXXX purchases brochures, then resells them in Utah to sales agents for their use in advertising a product. The sales agents do not resell the brochures. On that basis, we advise as follows:

XXXXX may purchase the brochures tax free for resale. If XXXXX purchases the items from a Utah vendor, XXXXX must obtain a sales tax number from the Tax Commission and use that number to complete an exemption certificate for the vendor’s records. The sales tax license is also necessary because XXXXX must collect sales tax on its sales of the brochures in Utah and remit that tax to the Tax Commission.

If you do not already have an sales tax license, you may use the enclosed form to apply for one. Contact us if you have further questions.

For the Commission,

Joe B. Pacheco,

Commissioner