DAR File No. 32791

Tax Commission, Auditing

R865-12L-17

Procedures for the Administration of the Tourism, Recreation, Cultural and Convention Facilities Tax Pursuant to Utah Code Ann. Sections 59-12-602 and 59-12-603

NOTICE OF PROPOSED RULE

DAR File No.: 32791
Filed: 07/06/2009, 01:25
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 55 (2009 General Session) clarified that the tourism, recreation, cultural, and convention facilities tax is imposed on alcoholic beverages, food and food ingredients, and prepared food. (DAR NOTE: H.B. 55 (2009) is found at Chapter 7, Laws of Utah 2009, and was effective 02/24/2009.)

Summary of the rule or change:

The proposed amendment clarifies that tourism, recreation, cultural, and convention facilities tax is imposed on alcoholic beverages, food and food ingredients, and prepared food.

State statutory or constitutional authorization for this rule:

Sections 59-12-602 and 59-12-603

Anticipated cost or savings to:

the state budget:

None--Any impact was considered in H.B. 55 (2009).

local governments:

None--Any impact was considered in H.B. 55 (2009).

small businesses and persons other than businesses:

None--Any impact was considered in H.B. 55 (2009).

Compliance costs for affected persons:

None--The clarification is a codification of Tax Commission practice.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated costs. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/31/2009

This rule may become effective on:

09/07/2009

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-12L. Local Sales and Use Tax.

R865-12L-17. Procedures for Administration of the Tourism, Recreation, Cultural, and Convention Facilities Tax Pursuant to Utah Code Ann. Sections 59-12-602 and 59-12-603.

[A.](1) Definitions

[1.](a) "Primary business" means the source of more than 50 percent of the revenues of the retail establishment. In the case of a retail establishment with more than two lines of business, primary business means the line of business which generates the highest revenues when compared with the other lines of business.

[2.](b) "Retail establishment" means a single outlet, whether or not at a fixed location, operated by a seller. Retail establishment includes the preparation facilities of caterers, outlets that deliver the [foods or]alcoholic beverages, food and food ingredients, and prepared food that they prepare, and other similar sellers. A single seller engaged in multiple lines of business at one location may be deemed to be operating multiple retail establishments if the lines of business are not commonly regarded as a single retail establishment or if there are other factors indicating that the lines of business should be treated separately. The operation of concession stands by stadium owners, performers, promoters, or others with a financial interest in ticket sales or admission charges to any event shall be considered a separate line of business constituting a retail establishment.

[3.](c) "Theater" means an indoor or outdoor location for the presentation of movies, plays, or musicals.

[B.](2) If an establishment that is a restaurant under Section 59-12-602 sells prepackaged foods as incidental items with the sale of alcoholic beverages, food and food ingredients, or prepared foods, a tax imposed under Section 59-12-603(1)(b) applies to the prepackaged food as well.

[C.](3) For purposes of collecting the tax imposed on the sale of alcoholic beverages, food and food ingredients, and prepared foods and beverages, the tax will attach in the county in which the food or beverage is served.

[D.](4) A seller that sells foods or beverages prepared for immediate consumption and is uncertain whether it is a restaurant shall make application, in letter form, for exemption with the Tax Commission indicating the circumstances that may qualify it for an exemption. A single application may be filed by a seller for multiple retail establishments if the operations of all of the retail establishments are similar.

 

KEY: taxation, sales tax, restaurants, collections

Date of Enactment or Last Substantive Amendment: [January 1], 2009

Notice of Continuation: March 16, 2007

Authorizing, and Implemented or Interpreted Law: 59-12-602; 59-12-603