97-048
Response
August 25, 1997
July
18, 1997
Re: Sales & Use Tax on Sale of Bottled
Water
Dear
W. Val Oveson:
Please
provide answers to the following questions on the taxability of bottled water
(still and carbonated) within your state.
1.) Are retail sales of bottled water (still and carbonated)
subject to sales tax?
2.) Are wholesale sales of bottled water
(still and carbonated) subject to sales tax?
Is
it necessary to register only wholesale?
3.) Do wholesale sales (sale and resale)
require receipt of an exemption certificate
from
the purchaser? Please provide a copy of such certificate.
4.) If the answer to question #1 or #2 above
is yes, please provide a copy of the
applicable
state tax regulations along with a copy of the applicable registration
forms.
5.) In addition, please provide any
reporting requirements for municipalities
within
your state.
If
you have any questions, please call. I
can be reached at ##### . Thank you
for your help.
Kind
Regards:
NAME
August
25, 1997
NAME
ADDRESS
CITY
STATE ZIP
Advisory
Opinion - Application of sales tax to Utah sales of bottled water.
Dear
NAME,
We have received your request for
sales tax guidance pertaining to bottled water. We advise as follows:
Under Utah law, sales of tangible
personal property are subject to sales tax unless otherwise exempt. The term “tangible personal property”
includes “water in bottles, tanks or other containers.” See Utah Code Ann. §§59-12-102 (23) and
59-12-103. Retail sales of bottled
water in Utah are subject to Utah sales and use tax. Wholesale sales (sales for resale) in Utah are exempt.
If your company operates outside of
Utah, but makes sales in Utah, it is required to collect and remit sales tax on
its Utah sales if it has sufficient presence in Utah to create nexus. A publication explaining Utah’s nexus
guidelines is enclosed for your information.
If your company has nexus in Utah or if your company has no nexus but
opts to collect and remit sales tax voluntarily, you must apply for a sales tax
license. An application form (TC-69) is
enclosed. If you need assistance with
the licensing process, contact our Customer Service Division at (801) 297-7741.
As a vendor licensed to collect
sales tax in Utah, your company must keep appropriate records of all Utah sales
transactions, including exemption certificates for all tax free sales. A copy of our exemption certificate is
enclosed. You may copy it for use by
your Utah wholesale customers as needed.
Various counties and cities have
adopted local option sales taxes. As a
result, tax rates vary from one community to another. The tax rates that apply to your Utah sales may depend upon how
or where you make Utah sales (e.g. from a fixed retail location vs. mail
order). I have enclosed a tax rate
schedule for your information However,
once you are licensed, the Tax Commission will send you the appropriate tax
return forms with instructions about tax rates. If you have questions about local ordinances passed by any
particular county or municipality, please contact that entity directly.
If you have further questions,
please contact us again.
For
the Commission,
Joe
B. Pacheco,
Commissioner
^^