99-036

Response March 10, 2000

 

 

 

REQUEST LETTER

 

Re: Sales Tax on Hearing Aid Repairs‑Advisory Opinion

 

To Whom it May Concern,

 

I understand that, as of July 1, there will no longer be a sales tax on hearing aids and hear aid accessories; however, I am uncertain as to whether or not there should be a sales tax on hearing aid repairs. It would seem that hearing aid repairs would also be exempt from sales tax but I was advised to contact this office and request and advisory opinion.

 

I appreciate your assistance. Please advise before July 1 if at all possible.

 

Sincerely

NAME

ADDRESS

 

 

 

RESPONSE LETTER

 

 

March 10, 2000

 

NAME

ADDRESS

 

RE: Sales Tax on Hearing Aid Repairs


Dear NAME,

 

We have received your request for an advisory opinion concerning the 1999 Utah Legislature=s passage of Senate Bill 19, which became effective on July 1, 1999. This bill exempts sales of hearing aids and hearing aid accessories from sales and use taxation. You specifically ask if hearing aid repairs would also be considered exempt from taxation due to this bill.

 

While the bill does exempt hearing aids and hearing aid accessories, the bill does not exempt repairs made to hearing aids. Utah Code Ann. ' 59-12-103(g) dictates that a tax is to be levied on the purchaser for Aservices for repairs or renovations of tangible personal property. . ..@ As a hearing aid is tangible personal property, the repair of a hearing aid is subject to sales tax unless a specific exemption relates to that repair. Senate Bill 19 provides no such exemption, and, accordingly, the repair of hearing aids remains a taxable transaction.

 

The Commission plans to enact an administrative rule that will include the above opinion and address other issues relating to the hearing aid exemption. Please let us know if you have any other questions.

 

For the Commission,

 

Marc B. Johnson

Commissioner

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