Free 2008 Pub 25, Utah Sales and Use Tax General Information - Utah

tax.utah.gov

Publication 25
Revised 5/08

This publication is provided for general guidance only. It does not contain all sales or use tax laws or rules.

Sales and Use Tax
General Information

Utah State Tax Commission 210 North 1950 West Salt Lake City, Utah 84134 (801) 297-2200 1-800-662-4335 www.tax.utah.gov

If you need an accommodation under the Americans with Disabilities Act, contact the Tax Commission at (801) 297-3811, or TDD (801) 297-2020. Please allow three working days for a response.

Contents
Sales and Use Tax General Information .......................................... 2 Introduction ................................................................................ 2 Utah Tax Code ........................................................................... 2 Starting a New Business ........................................................... 2 Notification of Liability ................................................................ 2 What is Sales and Use Tax? ...................................................... 2 Sales Tax License ...................................................................... 2 Nexus Filers ............................................................................... 2 Non-Nexus Filers ....................................................................... 2 How To Close an Outlet ............................................................. 2 How To Close a Sales Tax Account ........................................... 2 Sales-based Tax Rates and Types................................................... 3 Determining Tax Rate (Sourcing) ............................................... 3 Tax Rate Changes ..................................................................... 3 Combined Sales Tax Rate ......................................................... 3 Chart: Taxes in the Combined Rate ..................................... 4 Related Taxes and Fees ............................................................ 4 Tourism Tax .......................................................................... 4 Motor Vehicle Rental Tax ...................................................... 5 Transient Room Tax.............................................................. 5 Municipality Transient Room Taxes ...................................... 5 Waste Tire Recycling Fee .................................................... 5 Other Information ....................................................................... 5 Sales and Use Tax Exemptions ....................................................... 5 Entity-based Exemptions ........................................................... 5 Use-based Exemptions .............................................................. 7 Product-based Exemptions ........................................................ 7 Calculating Sales Tax ...................................................................... 8 Definitions .................................................................................. 8 Taxable Transactions ................................................................. 9 Taxes or Fees Imposed on the Seller ...................................... 10 Filing and Reporting Requirements ............................................... 10 Returns .................................................................................... 10 Paper Returns .................................................................... 10 Online Sales Tax Return .................................................... 10 Forms and Schedules .............................................................. 10 What to File ........................................................................ 10 Seller Discount......................................................................... 11 Goods Consumed by the Seller ............................................... 11 Returned Checks and Bad Debts ........................................... 11 PaymentExpress ...................................................................... 11 Electronic Funds Transfer (EFT) .............................................. 11 Penalties .................................................................................. 12 Interest ..................................................................................... 12 Overpayments and Refunds .................................................... 12 Record Keeping Requirements ................................................ 12 Reminders ............................................................................... 12 Additional Information .................................................................... 13 Car Washes ............................................................................ 13 Cigarettes and Tobacco Products ............................................ 13 Coupons ................................................................................. 13 Food Stamps and WIC ............................................................. 13 Money Orders, Faxes and Photocopies ................................... 13 Newspapers and Postage ........................................................ 13 Premiums and Gifts ................................................................. 13 Returnable Containers ............................................................. 13 Returned Merchandise ............................................................ 13 Special Events ......................................................................... 13 Trade-in on Manufactured Homes ........................................... 14 Vending Machine Sales ........................................................... 14 Videos and DVDs..................................................................... 14 Forms ............................................................................................ 14 Sales Tax Publications ................................................................... 15 Internet Information ....................................................................... 15

Sales and Use Tax General Information
Introduction
This publication is a general guide to basic sales and use tax information. This publication includes Utah tax law and Tax Commission rules, but is not all-inclusive. Future changes to laws or rules will supersede this publication.

Use Tax
Use tax is a tax on amounts paid or charged for purchases of tangible personal property and for certain services where sales tax was due but not charged. In cases where the seller does not charge sales tax, it becomes use tax and the purchaser is responsible to report and remit use tax directly to the Tax Commission. Examples of activities that trigger use tax liabilities include withdrawal of items from resale inventories and other consumption of goods or services purchased tax-free. Use tax must be paid on the purchase of any tangible personal property that is stored, used, or consumed in the state if sales tax is not collected by the seller. Some of the more common items for use tax reporting include advertising supplies, office or shop equipment, computer hardware and software, office supplies and Internet purchases.

Utah Tax Code
Utah Tax Code is published by Matthew Bender & Co., Inc. under the trademark LexisNexis. The online site requires a subscription fee to access its services. To order a hardcopy, contact the publisher at: Matthew Bender & Co., Inc. Attn: Customer Support 1275 Broadway Albany, NY 12204-2694 1-800-562-1197 Utah Code, Title 59, Revenue and Taxation, is available free of charge at the Utah Legislature's homepage (www.le.state.ut.us/~code/title59/title59.htm). The state makes every effort to maintain current information; however, published code found at LexisNexis may be more current than the information found at the state site.

Sales Tax License
All sellers with Utah nexus must have a Utah Sales Tax License and related account number. Application for a license and account number is made to the Tax Commission on a Utah State Business and Tax Registration, form TC-69, or online using OneStop Business Registration, found at business.utah.gov/registration. Examples of businesses that typically must register for a sales tax license include: retailers selling tangible goods or services, wholesalers purchasing resale inventory, manufacturers, leasing companies, and consumers such as professional firms and construction contractors. Sales tax licenses are not transferable.

Starting a New Business
If starting a new business, see Publication 38, Doing Business in Utah, at tax.utah.gov/forms/.

Notification of Liability
If you are purchasing a business or the stock of goods of another business, you must withhold enough of the purchase money to cover any taxes due and unpaid until the former owner of the business produces a receipt from the Tax Commission showing that all taxes have been paid, or a certificate showing no taxes are due. If you fail to withhold the required purchase money and the taxes remain due and unpaid 30 days after the business is sold, you will be personally liable for payment of the unpaid sales taxes of the former owner. See Utah Code §59-12-112.

Nexus Filers
Nexus means a business entity has established a direct or representational presence within a particular state. This presence gives the state the right to require a seller to pay or collect and remit certain taxes. Businesses with Utah nexus must file sales tax returns even if they have no tax liability for a particular period.

Non-Nexus Filers
For a business entity that does not have a direct or representational presence in the state of Utah, the sales and use tax rate (except on grocery food) is 5.9 percent for all locations within Utah. The sales tax rate for grocery food is 3 percent.

What is Sales and Use Tax?
Sales and use taxes are transaction taxes. This means the tax is not on the items sold or furnished, but on the transaction and the purchaser is the actual taxpayer. The seller is charged with collecting sales tax from the purchaser and remitting the tax to Utah. Sales and use taxes are trust fund taxes; the funds collected may not be used for any other purpose. The seller holds the collected tax in trust for the state until remitted to the Utah State Tax Commission.

How To Close an Outlet
If the account remains open, but an outlet location in Utah is closed, the sales tax license holder is required to notify the Tax Commission immediately in writing, identifying the effective date of the closure. Use Tax Commission form TC-69C, Notice of Change for a Tax Account. Businesses may contact the Taxpayer Services Division of the Tax Commission for help in closing sales tax outlets. The closed outlet will no longer appear on the sales tax return generated and mailed to the account holder.

Sales Tax
Sales tax is a tax on the retail sale or lease of all tangible personal property and on certain services. Sales tax is collected by a Utah licensed retailer or seller, and is paid to the Tax Commission on monthly, quarterly or annual tax returns. For more information, see Utah Code §59-12-103 and Administrative Rules R865-12L, R865-19S, and R865-21U.

How To Close a Sales Tax Account
Every sales tax license holder that discontinues business in Utah is required to notify the Tax Commission immediately in writing. Businesses may contact the Taxpayer Services Division of the Tax Commission for assistance in closing sales tax accounts. Use Tax Commission form TC-69C, Notice of Change for a Tax Account. page 2

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If the Tax Commission is not informed that the business has closed, the license holder may be assessed an estimated tax, including late penalties and interest.

Rate changes for taxable transactions covering a period starting before and ending after the statutory effective date will be as follows: · For a rate increase, the new rate applies to the seller's first billing period starting on or after the effective date. · For a rate decrease, the new rate applies to the seller's bills issued on or after the effective date.

Sales-based Tax Rates and Types
Tax rates vary from one community to another depending on the taxes imposed by the individual community. Tax rates are available on the Tax Commission website at tax.utah.gov/sales/rates.html.

Example 1
A 36-month vehicle lease contract requires payments on the 15th day of each month. After the lease went into effect, the sales tax rate increased effective Oct 1. The Sept 15 payment was taxed at the old (lower) rate. The payment due Oct 15 is for the period beginning Sept 16, which is before the new rate went into effect. The Oct 15 payment is taxed at the old rate even though the payment is made after the new rate went into effect. The Nov 15 payment will be for the period beginning Oct 16 and is subject to the new (higher) rate.

Determining Tax Rate (Sourcing)
Sourcing is defined as attributing a sale to a specific taxing jurisdiction in order to determine the tax rate to charge. For sellers with one or more fixed places of business, sales are sourced to the place of business where the sales occur, regardless of whether the goods are delivered. For sellers with a non-fixed place of business (e.g. vending machine operators, mobile tool companies, etc.), sales will be sourced to where the sales take place. If a business sells merchandise that is shipped from outside Utah direct to a consumer in Utah, and if the seller engages in business in Utah (has nexus), then the sale is sourced to the location where the goods are delivered.

Example 2
Using Example 1 above, instead of an increase there was a tax rate decrease effective Oct 1. The Sept 15 payment was at the old (higher) rate. However, the Oct 15 payment is taxed at the new (lower) rate because the bill was issued after the rate went into effect, even though the period started before the effective date. All future bills will be taxed at the new rate.

Tax Rate Changes
The Tax Commission will provide sellers with advance notice of rate changes by publishing the information on its website at tax.utah.gov/sales/rates.html. This site contains a list of rate changes and the current tax rate chart. Tax rates and jurisdiction boundaries may change only at the beginning of a calendar quarter and will be posted 60 days prior to the effective date. Failure to receive notice does not relieve a seller of the obligation to collect sales and use tax at the correct rate.

Combined Sales Tax Rate
The taxes listed in the chart on the next page are included in the combined sales tax rate and are filed on the sales tax return (TC-62S for Single Place of Business, or TC-62M for Multiple Places of Business). The combined sales tax rate is applied to all taxable transactions, except as noted in the chart.

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Chart: Taxes in the Combined Rate
Tax State Sales and Use Imposed By State Rate 4.65% Exemptions The state sales tax rate for grocery food is 1.75 percent. These transactions are also subject to local option and county option and results in a total combined rate on grocery food of 3 percent throughout Utah. None None Sales of motor vehicles, aircraft, watercraft, modular homes, manufactured homes or mobile homes are exempt from resort communities tax, but are subject to the remaining portion of sales and use tax. This exemption, however, does not apply to trailers, off-highway vehicles, snowmobiles, truckmounted campers, etc. Grocery food sales Grocery food sales Grocery food sales Grocery food sales

Local Option County Option Resort Communities

County, city or town County City or town

1.00% 0.25% Up to 1.60%

Rural Health Care Public Transit Highways Recreational Facilities and Botanical, Cultural and Zoological Organizations Town Option Mass Transit Fixed Guideway County Option Transportation Supplemental State Sales and Use

County, city or town County, city or town City or town County, city or town

Up to 1.00% Up to 0.55% Up to 0.30% 0.10%

Town County County State

Up to 1.00% Up to 0.30% Up to 0.25% Up to 0.05%

Grocery food sales Grocery food sales Grocery food sales Grocery food sales

Related Taxes and Fees
The following sales-related taxes and fees are filed on separate returns:

or stools for customers. However, if a grocery store or convenience store has a full-service restaurant, the tourism tax is due on sales in that restaurant. · A motor vehicle rental tax of up to 7 percent may be imposed on all short-term rentals or leases. This applies to all rentals of passenger cars or recreational vehicles for a period of 30 days or less, except: · leases and rentals of motor vehicles that temporarily replace a motor vehicle being repaired under a repair or insurance agreement; · leases and rentals of motor vehicles that are registered for a gross laden weight of 12,001 or more pounds; or · leases and rentals of motor vehicles as moving vans for personal household goods. Leases and rentals of motor vehicles that would be exempt from sales tax are also exempt from this tax. Exemptions must be documented by an exemption certificate, such as form TC-721, and retained by the lessor. This is reported on form TC-62L. page 4

Tourism Tax
Where adopted, this tax is imposed on the following types of transactions: · A restaurant tax of up to 1 percent may be imposed on all food (including prepared food) and beverages sold by restaurants. This is reported on form TC-62F. The term "restaurant" is defined as any retail establishment, other than a theater, whose business is the sale of foods and beverages for immediate consumption. Restaurant includes dinner theaters. See Utah Code §59-12-602(4) for more information. Exception: In counties that have adopted the tourism tax, it does not apply to sales of food from deli areas, pizza takeout counters or salad bars within a grocery store or convenience store whose primary business is the sale of fuel or food not prepared for immediate consumption. These sales are exempt from the tourism tax even if the store has seats

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Persons filing monthly returns are entitled to a seller discount equal to 1 percent of the tourism short-term leasing tax adopted by the county.

Waste Tire Recycling Fee
A waste tire recycling fee of $1 per tire with rim sizes up to and including 24½ inches is imposed on each purchase of new tires. The waste tire recycling fee is paid by the consumer to the tire retailer at the time of purchase. Both new and used vehicle dealers (including trailer and off-road vehicle dealers) are considered tire retailers for this purpose. The fee applies to all tires sold with a new vehicle. Dealers may pay the fee to a tire dealer if they also pay sales tax on the purchase. Sales tax exemptions do not apply to the recycling fee. Sales to government or other normally exempt institutions are not exempt from this fee. The fee itself is not subject to sales tax. The fee does not apply to used tires, bicycle tires, or tires attached to devices propelled by human power, nor does it apply to tires sold and delivered out of Utah. Tire retailers may keep 2.5 percent of the fee to cover collection costs. Waste tire recycling fee is reported on form TC-62W.

Motor Vehicle Rental Tax
A statewide motor vehicle rental tax of 2.5 percent is charged on all short-term motor vehicle rentals or leases. This is in addition to the tourism tax, if adopted, of up to 7 percent on all short-term motor vehicle rentals or leases. The statewide motor vehicle rental tax of 2.5 percent is not eligible for a seller discount. The statewide motor vehicle rental tax, and the tourism tax if adopted, apply to all rentals of passenger cars or recreational vehicles for a period of 30 days or less, except: · leases and rentals of motor vehicles for the purpose of temporarily replacing a motor vehicle being repaired pursuant to a repair or insurance agreement; · leases and rentals of motor vehicles that are registered for a gross laden weight of 12,001 or more pounds; or · leases and rentals of motor vehicles as personal household goods moving vans. Leases and rentals of motor vehicles that would be exempt from sales tax are also exempt from this tax. Exemptions must be documented by an exemption certificate, such as form TC-721, and retained by the lessor. Motor vehicle rental tax is reported on form TC-62L.

Other Information
The following miscellaneous taxes and fees may also apply to certain sellers. For more information, contact the Tax Commission. · Motor fuel, aviation fuel, and special fuel taxes · Lubricating oil fee · Beer, cigarette and tobacco products taxes · Municipal energy sales and use tax · Emergency services telephone charge (911 and poison control) · Royalty payment on unprocessed brine shrimp eggs · Multi-channel audio and video tax · Sexually explicit business and escort service tax · Municipal telecommunications license tax

Transient Room Tax
Utah counties may impose a transient room tax of up to 4.25 percent on rentals in hotels, motels, inns, trailer courts, campgrounds, tourist homes, and similar accommodations for stays of less than 30 consecutive days. The transient room tax, if imposed, is charged in addition to sales tax and in addition to other applicable taxes adopted in the community. The transient room tax does not apply to charges for meeting rooms. In addition to the transient room tax, Salt Lake County imposes an additional tax of .5 percent on rentals in hotels, motels, inns, trailer courts, campgrounds, tourist homes and similar accommodations of less than 30 consecutive days. Each county may elect to collect the tax itself or contract with the Tax Commission to collect it. The published rate chart (see tax.utah.gov/sales/rates.html) identifies those counties that elect to directly collect the tax. Transient room tax is reported on form TC-62T, unless it is collected by the county.

Sales and Use Tax Exemptions
Utah law provides some exemptions from sales and use tax. Some common exemptions are explained below. For more information, see Utah Code §59-12-104. If an exemption is either entity-based or use-based, the seller must obtain standard exemption information from the purchaser. Exemption information may be obtained either electronically or on an exemption certificate, TC-721 (nongovernment) or TC-721G (government). If captured electronically, the same information that is on the exemption certificate must be retained. A purchaser only needs to provide a signature if using a paper exemption certificate. If the exemption is product based, an exemption certificate is not necessary.

Municipality Transient Room Taxes
In addition to the county-imposed transient room tax and the tourism tax on room rentals, municipalities may impose taxes of up to 1.5 percent on rents charged for the same accommodations that are subject to the Transient Room Tax. Each municipality may elect to collect the tax itself or contract with the Tax Commission to collect it. The published rate chart (see tax.utah.gov/sales/rates.html) identifies those municipalities that elect to directly collect the tax. Municipality transient room tax is reported on form TC-62T, unless it is collected by the municipality.

Entity-based Exemptions
An entity-based exemption is determined by who purchases or sells the product. An exemption certificate is required. The following are exempt: · Sales to a public transit district. Sales to a subcontractor of a public transit district, if the tangible personal property is clearly identified and installed or converted to real property owned by the public transit district.

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· Sales to United States and Utah government agencies. Sales of construction materials to most Utah government agencies are exempt only if installed by the agencies' employees. Construction materials purchased by or on behalf of public elementary and secondary schools are exempt from sales tax. The construction materials must be clearly identified and segregated, and they must be installed or converted into real property owned by the school. See Tax Commission Rule R865-19S-23 for information relating to documentation of sales to government agencies. To qualify as a tax exempt sale made to a U.S. or Utah government agency, the purchase must be made with the government entity's funds. A purchase does not qualify for this exemption if a government agency employee pays for the purchase with personal funds, even if the employee is reimbursed for the purchase by the government agency. Government employees traveling on official business are exempt from sales tax if they present one of the following: · a properly completed TC-721G, Exemption Certificate for Governments & Schools; · a check supplied by the U.S. or Utah government agency; or · a U.S. government credit card (also called SmartPay cards). For detailed information on Federal government credit cards, please refer to FTA bulletin B-07/02, which can be found at www.taxadmin.org/fta/rate/b-0702.pdf. U.S. Department of the Interior (DOI) bureaus that centrally bill travel expenses include: Bureau of Indian Affairs, Bureau of Reclamation, U.S. Geological Survey, Minerals Management Service, Office of Special Trust, Office of Surface Mining, Office of the Secretary and National Business Center. If employees of these DOI bureaus incur travel expenses in Utah, the transactions may be exempt from sales tax. To qualify as tax exempt, the employee must use the DOI MasterCard issued by Bank of America with beginning numbers of 5568 16. In addition, the DOI credit card is embossed with the employee's name, U.S. Department of the Interior, and the DOI tax exempt ID number. The sales tax exemption for purchases by Utah state and local government entities does NOT apply to purchases by a state other than Utah or to purchases by any local government entity located outside of Utah. Utah government purchases are tax exempt if made with a Utah state purchasing card or paid with a Utah state check. Purchasing cards are issued by US Bank. The cards display the Utah state seal, include the words "State of Utah Tax Exempt" and are imprinted with the individual purchaser's name and Utah state agency. While sellers are required to maintain evidence that a purchase qualifies for the sales tax exemption as a sale to the federal or Utah State government, this requirement is satisfied if the seller maintains a record of the qualifying credit card number, a copy of the government entity check, purchase order, or voucher, or a properly completed and signed form TC-721G. · Sales made to or by: · an area agency on aging; or · a senior citizen center owned by a county, city or town; and · sales made by a senior citizen center that contracts with an area agency on aging.

· Certain enrolled members of Native American tribes (including the tribe itself) may purchase tax free if: · the member has a tribal card showing a Federal Bureau Number; · the sale is to an enrolled tribal member and delivery is taken on the member's own reservation (in the case of the Ute Indian Tribe, the sale must be made on or delivery must be made to tribal trust lands within the Uintah and Ouray reservations); and · in the case of sales to the tribe itself, a purchase order, exemption certificate, or similar evidence of tribal identity must be presented. Sales of tangible personal property made off the reservation to enrolled members of the tribe are taxable. They are exempt from tax only if delivery is made to the reservation by the seller or a licensed common carrier. · Foreign diplomats ­ Certain foreign diplomatic employees are exempt from sales tax to varying degrees. These diplomatic personnel are issued tax exemption cards by the U.S. Department of State. The cards are color-striped, indicating the type and/or amount of sales tax exemption. Bearers of cards with a green stripe are not exempt from taxes on hotel rooms. Sellers must retain a photocopy of the card for evidence of exemption. The cards are not valid to make exempt purchases of telephone service or other utility services; the U.S. Department of State issues special exemption certificates for such purposes. · Feed, seed, baling ties, etc. sold to commercial agricultural producers. · Sales of tangible personal property used or consumed primarily and directly in farming operations. Charges for labor and/or parts (including lubricating oil, antifreeze or other supplies) used to repair or maintain off-road machinery and equipment used primarily and directly in agricultural production are also exempt. · Sales of electricity and fuel for industrial use as defined in Utah Code §59-12-102. · Sale or lease of semiconductor fabricating, processing, research or development materials. · Sales relating to schools and fundraising. · Sales to religious or charitable institutions. The exemption for purchases is allowed in the following manner: 1. The exemption is taken at the point of sale if the purchase is $1,000 or more. 2. If the purchase is less than $1,000, the exemption is taken by submitting form TC-62N to claim a refund from the Tax Commission. 3. If the sale is made by a public utility to a religious or charitable institution, the exemption must be taken at the point of sale. 4. If a contract exists between the seller and the religious or charitable institution, the exemption may be taken at the point of sale regardless of the dollar amount of the sale. To be eligible for the exemption, the organization must be recognized as exempt under Section 501(c)(3) of the Internal Revenue Code, and must have a sales tax exemption number from the Tax Commission. Submit form TC-160 to get a tax exemption number. · Sales of construction materials to a religious or charitable institution or to a contractor purchasing on behalf of a religious or charitable institution. page 6

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· Aircraft and boat tour operators, river runners and similar services: · Amounts paid or charged for helicopter, airplane, or other aircraft tours that enter into airspace designated by the Federal Aviation Administration as a federal airway during the tour. · Amounts paid or charged for boat tours, scenic cruises, or other similar activities on the waters of the state if the waters on which the tour, cruise, or other similar activity operates are used, by themselves or in connection with other waters, as highways for interstate commerce. For more information, see R865-19S-113.

· Charges for labor to repair or renovate tangible personal property are exempt from sales and use tax if the parts used are exempt from sales and use tax. · Parts used in the repair or renovation of the following exempt tangible personal property: · tooling or equipment used or consumed exclusively in the performance of an aerospace or electronics industry contract with the United States government; · tangible personal property used or consumed primarily and directly in farming operations; · snow making equipment, ski slope grooming equipment, and passenger ropeways; · hearing aids and hearing aid accessories. · Sales of nonreturnable containers, labels, bags, shipping cases, and casing to a manufacturer, processor, wholesaler, or retailer for use in packaging tangible personal property to be sold by the manufacturer, processor, wholesalers, or retailer. · Purchases of lists or databases containing names and addresses that are used to send direct mail. · Purchases or leases by a telephone service provider of equipment, machinery, or software are exempt if they have a useful economic life of one or more years and are used for the following telecommunication purposes: · enabling or facilitating; · 911 service; · maintenance or repair; · switching or routing; or · transmission. · Purchases of property (except vehicles) for business use from outside the state where the property is brought into the state after the first use for which the property is designed. This exemption does not apply to leases or rentals.

Use-based Exemptions
A use-based exemption is determined by the purchaser's use of the product. An exemption certificate is required. The following are exempt: · Sales of certain vehicles for exclusive use outside of Utah. · Property purchased in the regular course of business for resale in this state, either in its original form or as an ingredient or component part of a manufactured or compounded product. · Sales for resale or lease. In addition, the lease of tangible personal property is exempt if it meets all of the following conditions: · the property is part of a sale-leaseback transaction; · sales or use tax was paid on the initial purchase of the property; and · the leased property will be capitalized and the lease payments will be accounted for as payments made under a financing arrangement. · Purchases of tangible personal property upon which a sales and use tax was paid to another state are exempt, except if the tax paid was lower than Utah's rate. If lower than Utah's rate, the purchaser must pay the difference. No adjustment or credit is allowed if the tax paid was greater than Utah's rate. · Purchases or leases of machinery and equipment and repair or replacement parts with an economic life of three or more years that are used in a cogeneration facility as defined in Utah Code §54-2-1, or a qualified manufacturing facility or scrap recycler described in the Standard Industrial Classification Manual (SIC) classification 2000-3999. Purchasers of the qualifying machinery and equipment that fail to report this on the Sales and Use Tax Return will be penalized the lesser of $1,000 or 10 percent of the sales and use tax that would have been imposed if the exemption had not applied. · Purchases or leases of machinery and equipment and repair or replacement parts with an economic life of three or more years that are used in a mining production process or in research and development, by a business described in NAICS 212, Mining (except Oil and Gas) or NAICS 213113, Support Activities for Coal Mining, NAICS 213114, Support Activities for Metal Mining, or NAICS 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining. Purchasers of the qualifying machinery and equipment that fail to report this on the Sales and Use Tax Return will be penalized the lesser of $1,000 or 10 percent of the sales and use tax that would have been imposed if the exemption had not applied.

Product-based Exemptions
A product-based exemption is based on the description of a product. Product-based exemptions do not require an exemption certificate. The following are exempt: · Isolated or occasional sales, if the sale is made by a person not regularly engaged in the business of selling that type of tangible personal property. The exemption does not apply to sales of tangible personal property for resale or the sale of a vehicle or vessel required to be titled or registered in Utah. · The amount paid for a drug. A drug is defined as a compound, substance or preparation that is intended for the diagnosis, cure, mitigation, treatment or prevention of disease or is intended to affect the structure or function of the human body. Food, dietary supplements, alcoholic beverages, and prosthetic devices are not considered drugs. Sales of drugs are exempt from sales and use tax only if the purchaser presents a prescription for the drug. · Sales or rentals of durable medical equipment, including parts used to repair the equipment and replacements. Sales or rentals of durable medical equipment are exempt from sales and use tax only if the purchaser presents a prescription for the equipment.

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· Sales or rentals of mobility enhancing equipment that is primarily used to provide or increase the ability to move from one place to another for a person with limited mobility. Sales or rentals of mobility enhancing equipment are exempt from sales and use tax only if the purchaser presents a prescription for the equipment. · A prosthetic device, including repair or replacement parts, and dental prostheses that will replace a missing tooth. This includes a bridge, denture, crown (if it replaces at least 75 percent of the tooth structure), implant and other similar items purchased from a dental lab. Corrective eyeglasses, contact lenses, hearing aids, and most orthodontic devices are not considered prosthetic devices. Sales or rentals of prosthetic devices are exempt from sales and use tax only if the purchaser presents a prescription for the device or it is purchased by a hospital or other medical facility. · Sales of disposable home medical equipment or supplies that cannot withstand repeated use. Sales of disposable home medical equipment or supplies are exempt from sales and use tax only if the purchaser presents a prescription for the equipment or supplies. The equipment and supplies must be eligible for payment under Title XVIII, federal Social Security Act, or the state plan for medical assistance under Title XIX, federal Social Security Act. · Sales of hearing aids and hearing aid accessories, except batteries, and charges for labor and/or parts used in the repair or renovation of hearing aids and hearing aid accessories. Sales of hearing aid batteries are taxable. · Forty-five percent of the sales price of a new manufactured home and 100 percent of the sales price of a used manufactured home. · Fees charged for unassisted amusement devices. · Sales of unassisted car washes, and unassisted dry cleaning and laundry services. · Interstate sales delivered by common carrier or the seller to a point outside of Utah. A copy of the bill of lading, freight bill, form TC-757 or other evidence of out-of-Utah delivery must be kept by the licensed seller or retailer. If the property is delivered in the state of Utah to a consumer, the tax applies, regardless of its removal from Utah. See Tax Commission Rule R865-19S-44. · Motor fuels and special fuels subject to Utah state fuel excise tax. · Sales of hay. · Exclusive sale of seedling plants, or garden, farm, or other agricultural produce, if sold during the harvest season by the producer, an employee of the producer, or a member of the producer's immediate family. · Sales of telephone service charged to a prepaid telephone calling card. · Sales of newspapers or newspaper subscriptions. · Sales of water in a pipe, conduit, ditch or reservoir. · Room and trailer space rentals for 30 consecutive days or more. · Sales of currency or coinage that constitute legal tender of the United States or of a foreign nation. · Sales of an ingot, bar, medallion, or decorative coin having a gold, silver or platinum content of 80 percent or more and that does not constitute legal tender of any nation.

· Admissions to higher education athletic events. · Sales of grocery food, prepared food or alcoholic beverages by a church or a charitable institution if the items are not available to the general public. · Sales of grocery food, prepared food or alcoholic beverages by an institution of higher education if the items are not available to the general public and are prepaid as part of a student meal plan offered by the institution of higher education. · Sales of grocery food, prepared food or alcoholic beverages provided at a medical facility or a nursing facility for inpatient meals. See Tax Commission Rule R865-19S-61.

Calculating Sales Tax
The following definitions are provided to assist you in determining what to include in the tax calculation.

Definitions
Delivery Charges
Delivery charges means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating and packing. Purchase price and sales price of tangible personal property do not include delivery charges if separately stated. The taxable base does include the cost of transportation to the seller, typically referred to as freight-in.

Grocery Food
Grocery food means substances regardless of whether the substances are in liquid, concentrated, solid, dried or dehydrated form that are sold for ingestion or chewing by humans and consumed for the substance's taste or nutritional value. Grocery food does not include an alcoholic beverage, tobacco or prepared food. Grocery food includes items sold without eating utensils by a food manufacturer other than a bakery and tortilla manufacturer, items that are sold singly in an unheated state by weight or volume, or that are bakery items including a bagel, bar, biscuit, bread, bun, cake, cookie, croissant, danish, donut, muffin, pastry, pie, roll, tart, torte or tortilla. An eating utensil provided by the seller does not include a container or packaging used to transport the food. See also the Prepared Food definition below.

Installation Charges
Installation charges means charges for permanently installing tangible personal property to real property. Installation charges do not include charges for repairs or renovations of tangible personal property. Purchase price and sales price of tangible personal property do not include an installation charge if separately stated. Sales of real property are nontaxable. For tangible personal property that becomes part of the underlying realty upon installation, the transaction to purchase and install the tangible personal property is considered the sale of real property and, accordingly, is nontaxable. The contractor is considered to be the user of the materials and is responsible for paying sales and use tax.

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Prepared Food
Prepared food means food sold in a heated state or heated by a seller, two or more food ingredients mixed or combined by the seller for sale as a single item, or food sold with an eating utensil provided by the seller, including a plate, knife, fork, spoon, glass, cup, napkin or straw. Prepared food does not include food that a seller only cuts, repackages or pasteurizes, or is a raw egg, raw fish, raw meat, raw poultry or a food containing these items if the Food and Drug Administration recommends that a consumer cook the items to prevent food borne illness.

Charges for labor and parts used to service, repair, or renovate real property are not subject to tax. For real property repairs, the contractor is considered to be the user of the materials and is responsible for paying sales and use tax.

Tangible Personal Property
Tangible personal property is property that may be seen, weighed, measured, felt, touched, or is in any manner perceptible to the senses. Tangible personal property includes electricity, water, gas, steam, prewritten software, and digital and electronic goods.

Purchase Price and Sales Price (Utah Code §59-12-102)
Purchase price and sales price mean the total amount of consideration valued in money and for which tangible personal property or services are sold, leased, or rented. Purchase price and sales price include: · the seller's cost of the tangible personal property or services sold; · expenses of the seller, including the cost of materials used; a labor cost; a service cost; interest; a loss; the cost of transportation to the seller; or a tax (including federal excise tax) imposed on the seller; · a charge by the seller for any service necessary to complete the sale. Purchase price and sales price do not include: · a delivery charge; · an installation charge; · a discount in a form including cash or term taken by a purchaser, or coupon that is allowed by a seller and that is not reimbursed by a third party; · the following if separately stated on an invoice, bill of sale, or similar document provided to the purchaser: a. the amount of a trade-in; b. the following from credit extended on the sale of tangible personal property or services: separately stated interest charges; financing charges; or carrying charges; or c. a tax or fee legally imposed directly on the consumer.

Tangible Personal Property Permanently Attached to Real Property
Tangible personal property is classified as permanently attached to real property if: 1. the attachment is essential to use the tangible personal property, and 2. the tangible personal property will remain attached over its useful life. This includes attaching an accessory to the tangible personal property if it is essential to the operation of the tangible personal property and is attached solely for that purpose. This classification is further supported if: 1. detachment would cause substantial damage to the tangible personal property, or 2. detachment would require substantial alteration or repair of the real property. The permanently attached tangible personal property retains its classification even if it is temporarily detached for repair or renovation onsite. The permanently attached classification does not include: 1. attaching portable or movable tangible personal property for convenience, stability, or for an obvious temporary purpose, or 2. detachment for repair or renovation other than onsite. Also excluded from this classification is a refrigerator, washer, dryer, stove, television, computer or telephone if the attachment to real property is only through a line that supplies water, electricity, gas, telephone or cable.

Real Property
Real property is classified as any right, title, estate, or interest in land, including all buildings or structures on the land. Real property includes construction materials that typically lose their separate identity as personal property once incorporated into the real property. These include lumber, bricks, nails and cement used to construct buildings or structures on the land, as well as fixtures such as furnaces, built-in air conditioning systems, built-in appliances, or other items added to or incorporated into real property.

Taxable Transactions
Sales and leases of tangible personal property and certain services are taxable to final consumers. The following transactions are taxable unless an exemption applies: · Retail sales or purchases of tangible personal property made within Utah. · Tangible personal property stored, used, or consumed in Utah. · Rentals and leases of tangible personal property if the location of the tangible personal property is in this state, the lessee took possession of the tangible personal property in this state, or the tangible personal property is stored, used, or otherwise consumed in this state. · Labor to repair, renovate, wash and clean tangible personal property. This includes maintenance agreements. · Labor to attach tangible personal property to other tangible personal property. (Labor to attach tangible personal property to real property is not subject to tax if separately stated.)

Repair Charges
Repair charges means repair or renovation of tangible personal property that is not permanently attached to real property or attaching tangible personal property to other tangible personal property. Charges for labor to repair, renovate, wash, or clean tangible personal property are subject to sales tax. Parts used to repair or renovate tangible personal property, whether or not the parts are actually used, are also subject to sales tax.

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· Laundry and dry cleaning services when the labor is not performed by the purchaser. · Admission or user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, jeep tours, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity. User fees include charges for access to a video, video game, television program, or cable or satellite broadcast, if that access occurs at any location other than the individual's residence. · Use of assisted amusement devices when the device or ride is not operated by the purchaser. · Assisted cleaning or washing of tangible personal property if the cleaning or washing labor is not performed by the purchaser. · Tourist home, hotel, motel, campground or trailer court accommodations and services regularly rented for less than 30 consecutive days. · Telegraph services and in-state telephone service. · Meals at restaurants or other eating places. · Sales for commercial use of gas, electricity, heat, coal, fuel oil, or other fuels. (Sales of these items for industrial use may qualify for an entity-based exemption.) · Sales for residential use of gas, electricity, heat, coal, fuel oil, or other fuels are taxed at the state rate of 2 percent plus any applicable local and/or public transit tax. · Sales of grocery food are taxed statewide at the rate of 3 percent. (Sales of prepared food are taxed at the full combined rate.) · Sales of prepaid telephone calling cards, including vending machine sales of prepaid telephone calling cards. · Memberships that entitle the purchaser to discounted or free merchandise or services of a type subject to the sales tax. Examples include memberships allowing the card holder to enter a facility and make purchases of merchandise at the stated price without any additional markup, and video memberships that allow members to rent videos at half price. All purchases made with these membership cards are subject to sales tax at the time of purchase unless a specific exemption applies. For more information, see the Additional Information section.

Taxable sales City imposed gross receipts tax @ 2% Amount subject to state and local taxes Applicable sales tax rate @ 6.125% State and local sales taxes remitted to the state Transaction total (item cost plus taxes)

$100.00 2.00 $102.00 x.06125 $6.25 $108.25

Filing and Reporting Requirements
Returns
Only one sales and use tax return is required for each filing period. Each return may include schedules that allow for multiple outlet or non-fixed location sales and goods consumed to be reported on the return. If a seller is liable for salesrelated taxes, such as transient room, tourism, waste tire, etc., a separate return must be filed for each period for each separate type of tax or fee. Returns are due on or before the last day of the month following each filing period, unless the due date falls on a weekend or holiday. In that case, the return will be due the next business day. The Tax Commission determines the filing frequency for sales and use tax returns. If your sales tax liability is less than $1,000 per year, you may file annually. If your sales tax liability is $1,000 or more but less than $50,000 per year, you may file quarterly. If your sales tax liability is $50,000 or more, you must file monthly. The Tax Commission will notify you if your filing frequency has changed.

Paper Returns
Once a license has been issued or a new tax imposed, the Tax Commission will mail a personalized return to each seller (unless the seller has requested no paper returns be mailed to them by the Tax Commission). However, if a seller does not receive a return, it is the seller's responsibility to obtain blank forms, file all appropriate returns, and pay the taxes by the due date. Returns must be filed even if the account holder has no tax liability for a particular filing period.

Online Sales Tax Return
Sellers have the option of filing their sales and use tax returns and schedules online using the TC-62 web application found at utah.gov/salestax. The Tax Commission will assign a PIN and print it on the TC-62 return that will allow access to the online application. Forms TC-62S, TC-62M and Schedules A, AG, B, BG and X can be filed electronically. Other forms in the TC-62 series (restaurant tax return, motor vehicle rental tax return, transient room tax, etc.) must be filed on paper.

Taxes or Fees Imposed on the Seller
Utah law allows municipalities to impose and collect a license fee or tax on any business within the municipality. Examples of city-imposed taxes include a gross receipts tax on all businesses within the city and taxes directed at a particular category of business, such as innkeepers. City-imposed taxes (other than sales and use taxes imposed under the Utah Sales and Use Tax Act) must be included in the taxable sales reported on the state sales and use tax return. For example, a seller makes sales in a city that has imposed a two percent gross receipts tax on revenues. City and state taxes are calculated as follows:

Forms and Schedules
What to File
For filing periods beginning January 2008, filers must use the TC-62 series of return forms and schedules. Form and schedule filing requirements vary based on the nature of your business. You may be penalized if you do not file the correct forms and schedules. All sales tax license holders must file TC-62S or TC-62M and the corresponding payment coupon. The filing of schedules and related TC-62 forms may be required depending on the nature of your business. For example, a restaurant must also file TC-62F, Restaurant Tax Return, as part of a complete return. page 10

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TC-62S, Sales and Use Tax Return, Single Place of Business -- filed by sellers with one fixed business location in Utah and non-nexus sellers. Sellers eligible to file TC-62S are not required to file Schedule A, AG, B, or BG. TC-62M, Sales and Use Tax Return, Multiple Places of Business -- filed by sellers with no fixed business location or multiple fixed business locations in Utah. The following transactions are reported on TC-62M: · sales of goods from vending machines situated at various multiple locations; · sales made from a location in Utah other than a fixed place of business in Utah; · sales made in a resort community; · sales of tangible personal property shipped into Utah by sellers that have established Utah sales tax nexus; and Sellers that file TC-62M must also include one or more of the following applicable schedules: · Schedule A for sales of non-food and prepared food from multiple fixed business locations based on the seller's location. · Schedule AG for sales of grocery food from multiple fixed business locations based on the seller's location. · Schedule B for sales of non-food and prepared food from non-fixed places of business based on the customer's location or consumption of tangible personal property at a location other than a fixed place of business. · Schedule BG for sales of grocery food from non-fixed places of business based on the customer's location. · Schedule X for sales exempt from resort communities tax.

The purchase of printed advertising inserts is taxable unless the inserts contain the name and publication date of the newspaper distributing the inserts and are included in and distributed with the newspaper. See Tax Commission Rule R865-19S-65. Report use tax on your TC-62 Sales and Use Tax Return.

Returned Checks and Bad Debts
Bad debts may be claimed only by a seller. A seller is entitled to a sales tax adjustment for returned checks and bad debts. Nontaxable amounts, such as cash back to the customer and exempt charges, must be deducted from the total amount of the returned check or bad debt amount to arrive at the net write-off amount. The amount of the adjustment to be claimed on the sales tax return is determined by dividing the net write-off amount by one (1) plus the tax rate in the community at the time of sale. For example, if the net write-off amount is $100 and the tax rate is 6.5 percent, the amount of the adjustment to be claimed on the return is determined by dividing $100 by 1.065, resulting in a claim of $93.90. If an item is repossessed, a credit may not be taken, with the exception of motor vehicle repossessions. See Publication 5, Sales Tax Information for Motor Vehicle/Marine Dealer/Body & Repair Shops.

PaymentExpress
Whether sales tax returns are filed electronically or on paper, sales tax can be electronically remitted to the Tax Commission using PaymentExpress available at paymentexpress.utah.gov. PaymentExpress will accept payment for most tax types, including sales tax. Payment can be made by credit card (American Express, Discover, or MasterCard) or by electronic check (direct debit to a checking or savings account). A convenience fee is applied to PaymentExpress transactions to cover costs associated with the electronic payment service. The convenience fee is $1 for an electronic check payment. For credit card payments, the convenience fee varies depending on the amount paid. A complete convenience fee table is available on the PaymentExpress website in the Frequently Asked Questions section. PaymentExpress is only for the payment of taxes and other amounts due. Be sure to file any tax return separately.

Seller Discount
Persons filing monthly sales tax returns are entitled to a seller discount equal to 1.31 percent of the combined sales tax. Persons filing monthly tourism tax returns are entitled to a seller discount equal to 1 percent of the tourism short-term leasing tax adopted by the county. Persons selling grocery food are entitled to the seller discount of 1.31 percent as if they had collected tax at the full combined rate. Quarterly and annual filers are not eligible for the seller discount.

Goods Consumed by the Seller
Items consumed by the seller are subject to use tax on the amount of the seller's cost of the items, not the selling price. Items consumed by the seller include: · items taken from a seller's inventory and used by the seller; · samples given away for advertising; and, · products consumed by employees without payment. When making purchases for store use from local businesses, tax should be paid at the time of purchase. For example, office supplies and equipment, such as labels for internal accounting, cash register tapes, returnable containers, and furniture are taxable at the point of sale. The seller may purchase tax-free grocery bags, sacks and other non-returnable packaging material that go out the door with the customer. No tax is due on items discarded because of spoilage, broken packaging, and similar incidents, because they are not considered as consumed by the seller.

Electronic Funds Transfer (EFT)
If your annual sales tax liability is $96,000 or more, payment must be made by Electronic Funds Transfer (EFT). EFT payments can be scheduled up to 30 days before the filing due date and the payment can be withdrawn from your account on the date you select. If you wait until the filing due date to make a payment, it must be completed by 7:00 p.m. Mountain Time, with a settlement date no later than the next business day. This account must be set up prior to making your payment. Contact the Tax Commission for information. Caution: Filers who are required to pay by Electronic Funds Transfer (EFT) should not use PaymentExpress for current returns. Payments made online by credit card or electronic check do not meet EFT filing requirements. Sellers required to pay by EFT that use the online payment system for current returns will lose their seller discount. However, EFT filers may pay past-due liabilities online using PaymentExpress. page 11

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Penalties
The penalty for failure to file a tax due return by the due date is the greater of $20 or up to 10 percent of the unpaid tax based on the date the return is filed. Failure to file a tax return includes filing a tax return that does not contain information necessary for the Tax Commission to make a correct distribution of tax revenues to counties, cities and towns. A failure-to-pay penalty, the greater of $20 or up to 10 percent of the tax balance, will be added if the tax balance remains unpaid 90 days after the due date. The penalty for failure to pay the full amount of tax due as reported on a timely filed return, or within 30 days of a notice of deficiency, is the greater of $20 or up to 10 percent of the tax due based on the date the payment is made. Unpaid tax includes tax remitted to the Tax Commission that is not accompanied by a tax return. In addition, monthly returns filed late or underpaid returns will result in the loss of seller discount. The penalty is imposed at a graduated rate, based on the time period of the delinquency. For more information, see Publication 58, Utah Interest and Penalties at tax.utah.gov/forms/. Purchasers or lessees who claim sales and use tax exemptions for qualified purchases or leases of manufacturing or mining equipment, and normal operating repair or replacement parts and semiconductor fabricating, processing, research or development materials are required to report the amount of such purchases or leases on the appropriate line of their periodic sales and use tax returns. Failure to comply with these reporting requirements may subject the responsible party to a penalty of the lesser of $1,000 or 10 percent of the sales tax that would have been imposed if the exemption had not applied.

Record Keeping Requirements
From Tax Commission Rule R865-19S-22
Every retailer, lessor or person doing business in Utah is required to keep complete records used to determine the amount of sales and use tax for which they are liable. Records must be retained for three years from the filing date of the tax returns and must be available to the Tax Commission in their original format (paper or electronic). These records should: · Show taxable and non-taxable gross receipts from sales or rental payments from leases of tangible personal property, or services performed in connection with tangible personal property made in Utah. · Show deductions and exemptions allowed by law and claimed in filing sales tax returns. · Show bills, invoices, or similar evidence of all tangible personal property purchased for sale, consumption, or lease in Utah. · Include original supporting documents (e.g. bills, receipts, invoices and cash register tapes) and all schedules or working papers used in the preparation of tax returns. Note: Additional record keeping requirements can be found in Tax Commission Rule R861-1A-35.

Reminders
This information is only a summary and does not contain all sales or use tax laws and rules. 1. You must collect sales tax on all taxable sales of tangible personal property or taxable services to the final consumer. 2. You must file a sales and use tax return for every period, whether or not tax is due for a particular filing period. 3. You must notify the Tax Commission in writing if you change business locations or add or close any outlets. 4. If you discontinue business, you must notify the Tax Commission in writing within 30 days of the final date you were required to collect sales tax. 5. You must retain your records for three years from the filing date of the return. 6. Records are subject to audit by the Tax Commission. 7. Sales tax licenses are not transferable. 8. Goods purchased tax free but used or consumed by you or your company must be reported on the sales and use tax return. You must pay use tax on goods you or your company consume. 9. You must retain exemption certificates from your exempt customers to verify nontaxable sales. 10. You must document out-of-state sales with a bill of lading or other proof of shipment. The terms of the sale must require shipment or delivery of the property across Utah's boundaries by the seller. 11. Round tax up to the next whole cent whenever the third decimal place is greater than four.

Interest
Interest will be assessed from the original due date until the tax liability is paid in full. For more information see Publication 58, Utah Interest and Penalties at tax.utah.gov/forms/.

Overpayments and Refunds
A taxpayer can file a claim for a credit or a refund of an overpayment within three years of paying the tax. If the Tax Commission denies a claim for credit or refund, the taxpayer may file a petition for agency action. A taxpayer may not file a claim for a credit or a refund on a tax deficiency that has been adjudicated. There are three methods to file a claim for refund or credit:: 1. Take an adjustment on the current sales tax return; 2. File an amended sales tax return for the period in question; or 3. Mail a refund request letter to the Tax Commission. The refund request must include the legal basis for a refund and supporting documents such as copies of invoices that show tax collected and copies of checks that verify payment of the invoice. Additional verification may be required to process the refund request.

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Additional Information
Car Washes
Assisted car washes are subject to sales and use tax. A car wash is assisted if: 1. The cleaning or washing labor is not performed by the buyer of the car wash; and 2. The cleaning or washing labor is performed by an employee of the car wash. A business location that sells both assisted and unassisted car washes must collect tax on all its sales unless its assisted and unassisted sales are recorded separately.

An in-store coupon issued by the seller is considered a reduction in the sales price. The taxable amount is the amount paid for an item after deducting the value of the in-store coupon.

Food Stamps and WIC
Sales of food paid with federal food stamps or Women, Infants and Children (WIC) coupons are exempt from sales and use tax.

Money Orders, Faxes and Photocopies
Money order fees and fax charges are not subject to sales tax. Photocopy charges are taxable.

Example 1
A customer buys a car wash and machines wash and dry the car. This is an unassisted car wash and is not subject to sales tax.

Newspapers and Postage
Sales of newspapers and postage stamps are exempt from sales tax. To qualify as a newspaper, a publication must: · be published daily or weekly; · be printed for circulation among the general public; · contain matters of general interest; · report on current events; and · not create a book when multiple issues are put together. Sales of tabloids (e.g., Enquirer, Star, Globe) and magazines (e.g., Newsweek, Ladies Home Journal, Time) are taxable.

Example 2
A customer buys a machine car wash, but a car wash employee runs a soapy brush over the car's wheels at the entrance. This is an assisted car wash and is subject to sales tax.

Example 3
A customer buys a machine car wash, but a car wash employee dries the vehicle. This is an assisted car wash and is subject to sales tax.

Example 4
As a fundraising activity, a scout troop offers to dry cars coming out of a car wash. The scouts are not paid by the car wash, so their labor is not a factor in whether car wash is assisted or unassisted.

Premiums and Gifts
A premium or gift given away with the sale of a product subject to tax is part of that sale, and the purchase of the premium or gift by the seller is not taxable. Items given away without requiring a specific purchase and items given away as advertising are consumed by the seller and the seller must pay tax on the seller's cost of those items.

Cigarettes and Tobacco Products
An entity selling cigarettes and/or tobacco products must be licensed for each selling location. Apply online using OneStop Business Registration at business.utah.gov/registration, or use form TC-69. Cigarette tax is paid by purchasing stamps from the Tax Commission. Only registered and bonded businesses may receive stamps. Cigarette stamps must be affixed to each package within 72 hours of receipt of the package. Any cigarette pack without a Utah stamp is subject to a $25 penalty and confiscation. Tobacco products tax is due from the first purchaser within Utah. If a retail store purchases directly from an out-ofUtah source not collecting the tax, the retail store must be registered and bonded. Pay the tobacco products tax with form TC-553, due the last day of the month following each calendar quarter. Consumers purchasing cigarettes or tobacco products online must pay the sales tax and cigarette or tobacco products tax on form TC-720. The sale of cigarettes and/or tobacco products is subject to state and local sales tax. The amount subject to sales tax includes the cigarette tax or the tobacco products tax.

Returnable Containers
Deposits on returnable containers, bottles, pallets and drums are subject to tax. When containers are returned for refund of the deposit, sales tax should be refunded. Bottle deposits are exempt from tax when purchased with food stamps or Women, Infants and Children (WIC) coupons.

Returned Merchandise
A customer who receives credit for returned merchandise is entitled to a refund of the sales tax. If a customer is given a partial refund or allowance, the customer is entitled to a refund of sales tax on the portion of the original sales price refunded.

Special Events
A special event is defined as a one-time event or an event that runs for six months or less where sales occur. Sales tax is collected on taxable transactions at special events. A seller who participates in a special event must register for a temporary sales tax license, even if the seller has a current sales tax license. For more information or to obtain a temporary sales tax license, go to tax.utah.gov/sales/specialevents.html or call (801) 297-6303 or toll free 1-800-662-4335, ext. 6303.

Coupons
Coupons for which a seller is reimbursed by a third party (such as a manufacturer or distributor) do not reduce the sales amount subject to tax. The taxable amount is the sales price of the item before the value of the coupon is deducted.

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Trade-in on Manufactured Homes
Utah Code §59-12-104 provides an exemption of 45 percent of the sales price of a new manufactured home and 100 percent of the sales price of a used manufactured home. When there is a trade-in, calculate the sales price subject to the exemption as follows: 1. Subtract the trade-in amount from the full sales price. The difference is the net sales price. 2. Multiply the net sales price by the allowed exemption (45 or 100 percent) to determine the exempt amount. 3. Subtract the exempt amount from the net sales price. This is the portion of the net sales price subject to sales tax. For example, if a dealer accepts a trade-in at a value of $8,000 against the purchase of a new manufactured home valued at $60,000, the calculation would be: Original sales price Less trade-in amount Net sales price Portion of net sales price exempt from sales tax ($52,000 x .45) Portion of net sales price subject to sales tax ($52,000 - $23,400) $60,000 - 8,000 $52,000 $23,400 $28,600

Forms
The following forms are available at tax.utah.gov/forms/ or by calling the Tax Commission automated forms order hot-line at (801) 297-6700 or 1-800-662-4335 ext. 6700. TC-51 TC-55A TC-62S TC-62M ­ Nexus Questionnaire ­ Claim for Refund of Motor Vehicle Fees or Sales Tax ­ Utah Sales and Use Tax Return, Single Place of Business ­ Sales and Use Tax Return, Multiple Places of Business ­ Sales of Non-Food and Prepared Food Items from Multiple Business Locations in Utah

TC-62M Schedule A

TC-62M Schedule AG ­ Sales of Grocery Food from Multiple Business Locations in Utah TC-62M Schedule B ­ Sales of Non-Food and Prepared Food from Non-fixed Places of Business in Utah

TC-62M Schedule BG ­ Sales of Grocery Food from Nonfixed Places of Business in Utah TC-62E TC-62F TC-62L TC-62N ­ Municipal Energy Sales and Use Tax ­ Restaurant Tax Return ­ Motor Vehicle Rental Tax Return ­ Sales Tax Refund Request for Religious or Charitable Organizations ­ Instructions for Filing Refund Claims for Sales Tax Paid on Pollution Control Facilities ­ Utah Sales Tax Sourcing Schedule ­ Sales Exempt from Resort Tax ­ Transient Room Tax Return ­ Waste Tire Recycling Fee Return ­ Utah State Business and Tax Registration Application ­ Additional Business Locations for a Sales Tax Account ­ Sales Tax Exemption Contract ­ Agreement for Remitting through Electronic Funds Transfer (EFT) ­ Application for Sales Tax Exemption for Religious and Charitable Institutions ­ Tobacco Products Tax Return ­ Sales Tax Exemption Affidavit for Authorized Interstate Carriers ­ Order for Cigarette Revenue Stamps, or TAX for Products Imported for Use, Storage or Consumption ­ Exemption Certificate ­ Sales and Use Tax Exemption Affidavit for Exclusive Use Outside Utah

Vending Machine Sales
Sales of tangible personal property from vending machines are taxable. Vending machine sales of items that cannot be ingested, such as cigarettes or novelty toys, are taxed at the full combined rate. Vending machine sales of prepared food, such as sandwiches or slices of pizza, are also taxed at the full combined rate. For vending machine sales of grocery food, such as packs of gum or bags of pretzels, the statewide combined rate is 3.0 percent. Tax is included in the vended price. To find the dollar amount of sales without tax, divide the sales by one (1) plus the combined tax rate in the community where the vending machine is located. For example: · Where the combined rate is 6.0 percent, divide by 1.060 · Where the combined rate is 6.125 percent, divide by 1.06125 · Where the combined rate on food and food ingredients is 3.0 percent, divide by 1.030. A seller of food, beverage and dairy products for $1 or less may choose to pay tax on 150 percent of the seller's cost (including incoming freight costs) rather than on the sales price. If this option is taken, the taxable amount (150 percent of cost) must be reported on the sales tax return as goods consumed. If the vending machine is owned and serviced by a vending machine company, the tax is the responsibility of the vending machine company. TC-62P TC-62Q TC-62X TC-62T TC-62W TC-69 TC-69B TC-73 TC-85 TC-160 TC-553 TC-719 TC-720

TC-721 TC-721A

Videos and DVDs
Rentals of videotapes and DVDs are taxed as sales of tangible personal property.

TC-721NR ­ Sales Tax Exemption Certificate for Non-Utah Retailers Accepting Delivery of Merchandise in Utah TC-738 TC-757 TC-762 ­ Petition for Redetermination ­ Affidavit of Out-of-State Delivery ­ Lease/Rental Sales Tax Affidavit page 14

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Sales Tax Publications
The following publications are available at tax.utah.gov/ forms/ or by calling the Tax Commission forms order hot-line at (801) 297-6700 or 1-800-662-4335 ext. 6700. Pub 5 Pub 25 Pub 35 Pub 37 Pub 38 Pub 40 Pub 42 ­ Sales Tax Information for Motor Vehicle/Marine Dealer/Body & Repair Shops ­ Sales and Use Tax General Information ­ Sales Tax Guidelines for Public and Private Elementary and Secondary Schools ­ Business Activity and Nexus in Utah ­ Doing Business in Utah ­ Personal Liability for Unpaid Sales, Fuel and Withholding Taxes ­ Sales Tax Information for Sales, Installation and Repair of Tangible Personal Property Attached to Real Property ­ Sales Tax Information for Nurseries, Florists, Landscapers and Related Industries ­ Sales Tax Information for Health Care ­ Sales Tax Information for Public Utilities ­ Sales Tax Information for Restaurants ­ Sales Tax Information for Lodging Providers ­ Utah Interest and Penalties ­ Sales Tax Information for Telecommunications Service Providers

Internet Information
Utah State Tax Commission Website
www.tax.utah.gov This site has links to: · Forms and publications · Online sales tax return filing · OneStop Business Registration · PaymentExpress · Current and past sales tax rates · Internal Revenue Service · Utah Counties (business license, property tax) · Multistate Tax Compact · Other States' Revenue Departments

State of Utah Website
www.utah.gov This site has links to: · Workforce Services (unemployment) · Labor (worker's compensation) · Commerce (corporations, DBA registration)

Pub 45 Pub 53 Pub 54 Pub 55 Pub 56 Pub 58 Pub 62

Pub 99-ST ­ Guidelines for Substitute and Copied Utah Sales Tax Forms Sales tax publications provide general guidance only. They do not contain all sales or use tax laws or rules. If you need additional information, call (801) 297-7705 or 1-800-662-4335, ext. 7705 (outside the Salt Lake area), or email [email protected].

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