97-080

Response January 13, 1998

 

 

REQUEST LETTER

 

 

December 6, 1997

 

Dear Attorney General,

 

COMPANY A is a nationwide provider of retail and wholesale Internet Services, offering comprehensive solutions and high quality customer and technical support to individuals, business and other Internet Service Providers.

 

COMPANY A will soon be offering Internet Access and providing Internet Services in the State of Utah.

 

We are in the process of setting up our billing system for your state and we would like to know if our service is subject to a/an Utah State sales or any other tax.

 

Please respond on your letterhead, using the enclosed return envelope, as this will help

determine our billing process.

 

Sincerely,

 

NAME

 

RESPONSE LETTER

 

January 13, 1998

 

 

NAME

ADDRESS

CITY STATE ZIP

 

Advisory Opinion - Application of sales tax to internet access charges.

 

Dear NAME,

 

We have received your request for sales tax guidance pertaining to charges for internet access. At this time, the Utah State Tax Commission is treating internet access charges as nontaxable under our current statutes. You do not describe the other internet services that you will offer to Utah customers, so we cannot advise you whether such services are subject to sales tax.

 

You may be aware that taxation of the internet is a subject that is under discussion and consideration in Utah as well as other states across the nation. Should our state legislature enact a statutory change that directs us to impose sales tax on internet access some time in the future, that action will supersede this opinion.

 

For the Commission,

Joe B. Pacheco,

Commissioner

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