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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