DAR File No. 43884

Tax Commission, Auditing

Section R865-19S-93

Waste Tire Recycling Fee Pursuant to Utah Code Ann. Section 19-6-808

Notice of Proposed Rule

(Amendment)

DAR File No.: 43884
Filed: 07/12/2019 10:55:38 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of these amendments are to clarify the recycling fee information that must be included on the invoice for the purchase of a new tire.

Summary of the rule or change:

These proposed rule amendments clarify the statutory requirement under Subsections 19-6-808(4) and 59-12-107(3)(c) that a retailer must provide all purchasers of new tires with an invoice that specifically identifies the recycling fee as the "UCA 19-6-805 Recycling Fee".

Statutory or constitutional authorization for this rule:

• Section 19-6-808

Anticipated cost or savings to:

the state budget:

These proposed amendments are not expected to have any fiscal impact on state government revenues or expenditures because they only clarify the information that must be included on the invoice for the purchase of new tires.

local governments:

These proposed amendments are not expected to have any fiscal impact on local governments' revenues or expenditures because they only clarify the information that must be included on the invoice for the purchase of new tires.

small businesses:

These proposed amendments are not expected to have any fiscal impact on small businesses' revenues or expenditures because they only clarify the information that must be included on the invoice for the purchase of new tires.

persons other than small businesses, businesses, or local governmental entities:

These proposed amendments are not expected to have any fiscal impact on the revenues or expenditures of persons other than small businesses or local government because they only clarify the information that must be included on the invoice for the purchase of new tires.

Compliance costs for affected persons:

These proposed amendments may require some affected persons that sell new tires to modify their invoice to specifically identify the recycling fee as the "UCA 19-6-805 Recycling Fee" on the invoice. This may create a small one-time compliance cost on affected persons that do not already separately identify the recycling fee on the invoice.

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

These amendments may create a small one-time compliance cost on businesses because of the requirement to specify certain information on invoices.

Rebecca Rockwell, Commissioner

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

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

Direct questions regarding this rule to:

• Jennifer Franklin at the above address, by phone at 801-297-3901, by FAX at , 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:

09/03/2019

This rule may become effective on:

09/10/2019

Authorized by:

Rebecca Rockwell, Commissioner

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2020	FY 2021	FY 2022
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non-Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non-Small Businesses

These rule changes may require some non-small businesses that sell new tires to modify their invoice to specifically identify the recycling fee as the "UCA 19-6-805 Recycling Fee" on the invoice. This may create a small one-time compliance cost on those that do not already separately identify the recycling fee on the invoice.

 

Commissioner of the Utah State Tax Commission, Rebecca L. Rockwell, has reviewed and approved this fiscal analysis.

 

 

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-93. [Waste Tire ]Recycling Fee Pursuant to Utah Code Ann. Section 19-6-808.

[A.](1) The [waste tire ]recycling fee shall be paid by the retailer to the [State Tax Commission]commission at the same time and in the same manner as sales and use tax returns are filed. The sales tax account number will also be the recycling fee account number. A separate return form will be provided.

[1.](a) [The tire]Except as provided in (1)(c), the retailer shall impose the recycling fee on all purchasers[will be imposed] at the same time the sales tax is imposed.[For example, if tires are purchased for resale either as part of a vehicle sale or to be sold separately by a vehicle dealer, the recycling fee and the sales tax would be collected by the dealer at the time the vehicle is sold. If sales tax is paid to a tire retailer by a vehicle dealer when tires are purchased, the recycling fee will also be paid by the vehicle dealer to the tire retailer.]

(b) The retailer shall provide an invoice to all purchasers that separately itemizes and identifies the recycling fee as the "UCA 19-6-805 Recycling Fee".

[2.](c) Where tires are sold to entities exempt from sales tax, the exempt entity must still pay the recycling fee.

[B.](2) The recycling fee is not considered part of the sales price of the tire and is not subject to sales or use tax.

[C.](3) Wholesalers purchasing tires for resale are not subject to the recycling fee.

[D.](4) Tires sold and delivered out of state are not subject to the recycling fee.

[E.](5) Tires purchased from out of state vendors are subject to the recycling fee. The recycling fee must be reported and paid directly to the [Tax Commission]commission [in conjunction ]with the use tax.

 

KEY: charities, tax exemptions, religious activities, sales tax

Date of Enactment or Last Substantive Amendment: [December 13, 2018]2019

Notice of Continuation: November 10, 2016

Authorizing, and Implemented or Interpreted Law: 9-2-1702; 9-2-1703; 10-1-303; 10-1-306; 10-1-307; 10-1-405; 19-6-808; 26-32a-101 through 26-32a-113; 59-1-210; 59-12; 59-12-102; 59-12-103; 59-12-104; 59-12-105; 59-12-106; 59-12-107; 59-12-108; 59-12-118; 59-12-301; 59-12-352; 59-12-353