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