98-032
Response
May 4, 1998
REQUEST
LETTER
February
17, 1998
Dear
Sir or Madam,
We
believe after talking with NAME, the XXXXX Manager and a gentleman in your
offices by the name of Scott Stevens, that because our product is explosives
and is stored in magazines in two locations outside the XXXXX limits, we should
be paying only 6%. I have changed the
actual physical location on the form TC-71 Schedule A, and used a new code
number that was supplied by Mr.
Stevens, The address that was on the Schedule A was the physical address
of our office.
Please
notify me of any problems.
NAME
ADDRESS
CITY
STATE ZIP
May
4, 1998
NAME
ADDRESS
CITY
STATE ZIP
RE: Advisory
Opinion - Place of Sale
Dear
NAME,
We have received your request for an
advisory opinion concerning the sales tax rate that applies to your sales of
explosives. For this opinion, we
understand that you have a sales office in XXXXX, Utah, and two storage
facilities located in XXXXX County outside the XXXXX City limits. The explosives you sell are both stored at
and delivered from these two storage facilities outside XXXXX City. This opinion is valid only for the facts as
thus stated.
Utah Admin. Code R865-12L-5(C)
provides that “[i]f a seller has more than one place of business in Utah, and
if two or more of such locations participate in the sale, the sale occurs at
the place of business where the tangible personal property is located or the
place from which it is shipped or delivered.”
A sales office and a warehouse are both considered a place of business,
and both do participate in your sales.
As the explosives are both stored at and delivered from the storage
facilities outside XXXXX City, the rule provides that the storage facility, and
not the sales office, is the place of sale.
The sales tax rate in XXXXX County
outside the XXXXXX City limits is currently six percent (6%) and is the rate
that should be applied to your sales of explosives. Please contact us if you have any other questions.
For
the Commission,
Joe
B. Pacheco
Commissioner
^^