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1. sells or performs services in Utah in which the customer 17. Consigning tangible personal property to any person,
receives the greater benefi t of the service in Utah, or including an independent contractor, for sale.
2. earns income from the use of intangible property in Utah. 18. Maintaining an offi ce or place of business (in-home or
Corporations that make loans or issue credit cards to Utah otherwise) of any kind other than an in-home offi ce.
customers (e.g., banks) are subject to the Utah corporate • Any offi ce or other place of business in Utah that does
franchise or income tax whether or not they have a business not strictly qualify as an in-home offi ce does not have
location in Utah. protection under this rule.
For the sale of tangible personal property to be protected • It doesn’t matter whether the company pays directly,
under P.L. 86-272, it must be limited solely to solicitation, indirectly or not at all for the cost of maintaining the in-
except for de minimis activities and activities conducted by home offi ce.
independent contractors. “De minimis” means those activities 19. Entering into or selling/disposing of franchising or licens-
that, when taken together, establish only a trivial connection ing agreements, or selling/transferring tangible personal
with the taxing state. property associated with a franchise or license by the
The following activities establish nexus in Utah (See Utah franchise or licensor to its franchisee or licensee in Utah.
Administrative Rule R865-6F-6): 20. Conducting any activity that serves an independent busi-
1. Repairing, maintaining or servicing the property. ness function apart from the solicitation of orders, even if
2. Collecting current or delinquent accounts, whether direct- the activity increases sales.
ly or by third parties, through assignment or otherwise.
If you have any questions about business activity or nexus
3. Investigating credit worthiness. that are not answered above, please contact the Tax Commis-
4. Installing or supervising installation at or after shipment sion at the address in the heading of this publication.
or delivery. To request an agreement to resolve prior business tax li-
5. Conducting training courses, seminars or lectures abilities from the Auditing Division’s Voluntary Disclosure
for personnel (other than personnel involved only in Program, the following written information is required.
solicitation). 1. A description of the company’s activities, including:
6. Providing any kind of technical assistance or service a. the number of years doing business in Utah,
beyond the solicitation of orders.
b. a list of the type of property owned and/or leased in
7. Investigating, handling or otherwise helping to resolve Utah,
customer complaints, other than mediating direct cus-
tomer complaints, when the sole purpose is to ingratiate c. a description of equipment leased for use in Utah,
the sales personnel with the customer. d. the number and length of time representatives acting
8. Approving or accepting orders. on your behalf or employees have been in Utah, and
9. Repossessing property. e. how Utah business is solicited.
10. Securing deposits on sales. 2. The type of tax being offered and a statement why the
company is not offering other tax types.
11. Picking up or replacing damaged or returned property.
3. A declaration of estimated tax liability for the disclosure
12. Hiring, training or supervising personnel (except person- period, by tax type.
nel involved only in solicitation).
4. A declaration of the estimated tax liability for periods
13. Using agency stock checks or any other instrument or prior to the disclosure period, by tax type.
process by which employees make sales in Utah.
5. Disclosure as to whether the company has collected or
14. Maintaining a sample or display room for longer than two withheld tax.
weeks (14 days) at any one location within Utah during
the tax year. 6. A statement indicating whether the Utah State Tax Com-
mission or the Multistate Tax Commission has contacted
15. Carrying samples for sale or exchange for anything of the company, and the nature of the contacts.
value.
7. The voluntary disclosure agreement terms proposed by
16. Owning, leasing, using or maintaining in Utah: the company.
a. a repair shop; See Pub 4 for more information regarding the Voluntary
b. a parts department; Disclosure Program, or visit the Tax Commission website at
c. any kind of offi ce other than an in-home offi ce; tax.utah.gov.
d. a warehouse;
e. a meeting place for directors, offi cers, or employees;
f. stock of goods other than samples for sales person-
nel or that are used entirely ancillary to solicitation;
g. a telephone answering service that is publicly attrib-
uted to the company or to employees or agents of the
company in their representative status; This publication is provided for general guidance
only. It does not contain all sales or use tax laws
h. mobile stores, such as vehicles driven by employees
or rules. If you need additional information, call
who make sales from the vehicles;
801-297-2200 or 1-800-662-4335.
i. real property or fi xtures to real property of any kind.
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