97-082
Response January 27, 1998
97-082
December
12. 1997
Dear
Ms. Rees
In
speaking with representatives from the Utah State Tax Commission, I understand coin
operated vacuum sales adjacent to our carwashes are sales tax exempt. I also understand that our carwash equipment
that can be activated both by coin or currency and by a code should have the
revenue split. The code is purchased
from our cashier. The coin and currency
sales are tax exempt and the code sales are taxable.
Please
issue an advisory opinion for our carwashes.
Sincerely
NAME
January
27, 1998
NAME
ADDRESS
CITY
STATE ZIP
Advisory
opinion - sales tax exemption for car washes
Dear
NAME,
We have received your request for
information concerning the sales tax exemption for coin-operated car washes
provided under Utah Code Ann. §59-12-104(45).
Your request consists of two separate issues.
First, do sales from coin-operated
vacuum cleaners qualify for the sales tax exemption? Yes, the language of Section 104(45) provides a sales tax
exemption for coin-operated car wash machines that both “clean and wash.” Coin-operated vacuum cleaners would qualify
as such a machine.
Second, as your car wash equipment
can be operated both by coin or by a code, does the exemption extend to those
sales where the equipment is operated by a code? No, the statute is explicit in exempting only “coin-operated”
sales. Car wash sales where a code is
purchased from a cashier are subject to sales tax.
Please let us know if you have other
questions.
For
the Commission,
Joe
B. Pacheco,
Commissioner
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