97-049
Response
August 25, 1997
To Whom It May Concern:
COMPANY A requests a ruling regarding lubrication
oil fee on product purchased
exclusively for export from the State of Utah. For example, if a wholesale distributor from
another state picks up packaged oil product in Utah and exports 1000/0 of the
product to another state for resale, is the Utah lubrication oil fee
applicable?
There is currently some confusion regarding if an
exemption exists at the time of purchase or if a
refund is allowed for product charged the Utah
lubrication oil fee and immediately exported from
Utah.
In the case of motor fuel, environmental surcharge
and sales tax, if the product is
exported from
the State of Utah, Utah tax is not applicable. If
the same logic used regarding other Utah taxes
applies, the
Utah lubrication oil fee should not apply on product exported from the State of
Utah. If there is an inconsistency in
the law, please make the necessary technical correction to the lubrication oil
fee law.
If you have additional questions please contact NAME
& NUMBER.
Sincerely
NAME
August
25, 1997
NAME
ADDRESS
CITY STATE ZIP
Advisory Opinion - Application of recycling fee on
the sale of oil exported out of state.
Dear NAME,
Under
Utah law, the fee on sales of lubricating oil is collected on the first sale in
Utah, except that the fee does not apply when the oil purchased is shipped
directly out of state. Utah Code Ann. §
19-6-714. A vendor who sells
lubricating oil for export out of state need not collect this fee, but must
retain records of invoices, bills of lading or other evidence sufficient to
support the exemption in the event of an audit.
If
the fee is paid at the time of purchase, but the lubricating oil is exported
out of state, an adjustment may be made on line three of the lubricating oil
fee return or, in the case of a party who is not required to file a return, a
refund request can be submitted to the Customer Service Division of the Tax
Commission.
Enclosed
are copies of Tax Bulletins 18-93 and 19-93 which explain the administration of
this fee in more detail. Please let us
know if you have other questions.
For
the Commission,
Joe
B. Pacheco,
Commissioner