98-010
Response February 27, 1998
REQUEST
LETTER
January
20, 1998
Re: Taxability of New Products
Dear
Sir/Madam:
COMPANY
A is planning the release of a new product
line. These products will be
sold through our network of COMPANYB in Utah. As we have done in the past, we
request your office's determination regarding the taxability of these new
products. Enclosed please find labels from our new products for your review.
Please
let us know as soon as possible if the State of Utah views these new products as subject to the
Sales/Use Tax or as nontaxable. Your
assistance in this matter is appreciated. We look forward to hearing from you.
Sincerely,
COMPANY
A
NAME
February
27, 1998
NAME
ADDRESS
CITY
STATE ZIP
Advisory
Opinion - Application of sales tax to
sales of hair care products in Utah
Dear
NAME,
We have received your request for sales
tax guidance pertaining sales of your products in Utah. Your products consist of various hair care
products. Sales of these products are
subject to sales or use tax as sales of tangible personal property.
Your independent contractors in Utah
may purchase the items tax free from your company under the resale exemption,
but they must collect sales tax from their customers. They must also obtain a Utah sales tax license. Alternatively, your company may enter an
agreement with our Customer Service Division to collect the sales tax on behalf
of all of your independent contractors.
Please let us know if you have other
questions.
For
the Commission,
Joe
B. Pacheco,
Commissioner
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