Utah Code Ann. § 59-12-103

Section 59-12-103(1)(a) taxes an in-state retail sale of tangible personal property when a contractor takes possession and title in Utah for use on an out-of-state construction project.

Tummurru Trades, Inc. v. Utah State Tax Commission · filed 1990-09-19(1)(a)

The act of taking the items out of inventory for use in a construction contract is a retail sale for the purpose of sales tax because the contractor is the ultimate consumer, Tummurru- was not obligated by any contract to make physical delivery across state boundaries to its own contracting arm, and Tummurru’s contracting arm took possession and title to the items in Utah. Tummurru is therefore liable for the sales tax due on those items sold to its contracting entity for use in out-of-state construction projects.

Section 59-12-103 taxes retail sales and leases or rentals of tangible personal property, including a leaseback transaction treated as a true lease.

Matrix Funding Corp. v. Auditing Division of the Utah State Tax Commission · filed 1994-02-03(1) and (1)(k)

Whether the transactions are taxable is a matter of statutory interpretation. Section 59-12-103(1) states: “There is levied a tax on the purchaser for the amount paid or charged for the following: (a) retail sales of tangible personal property made within the state.” ... The leaseback transaction from Matrix to Customer is, however, subject to sales tax regardless of whether it is a true lease or a lease intended as security. If the leaseback transaction is a true lease, it is clearly subject to sales tax under Utah Code Ann. § 59-12-103(l)(k), which levies a tax on “leases and rentals of tangible personal property.”

Section 59-12-103 taxes transportation charges incurred before title passes as part of the total selling price of a retail sale, but not charges incurred after title passes.

Hales Sand & Gravel, Inc. v. Audit Division of the State Tax Commission · filed 1992-11-12(l)(a), (l)(b)

The transportation charges are taxable if they are incurred before the transfer of title because this increases the total selling price; transportation charges are not taxable if they are incurred after the passage of title because they are not part of the taxed sales transaction. ... We hold that the Commission applied the correct legal test in finding that Hales did not pass title until delivery and therefore was required to collect and remit sales taxes on its transportation costs.

Section 59-12-103(l)(a) imposes sales tax on modular housing units sold as tangible personal property before they are permanently attached to real property.

Valgardson Housing Systems, Inc. v. State Tax Commission · filed 1993-03-12(l)(a)

The Tax Commission reasonably determined that when petitioner sold modular units to its dealers prior to the units permanent attachment, it sold tangible personal property, not improvements to real estate. We, therefore, affirm the Tax Commission’s decision that petitioner owed sales tax on those transactions pursuant to petitioner’s duty to collect and remit taxes.

Section 59-12-103(1)(a) taxes retail sales of tangible personal property in Utah, including a sale of slag to a contractor.

Rocky Mountain Energy v. Utah State Tax Commission · filed 1993-04-28(1)(a)

Utah law imposes a tax on retail sales of tangible personal property. ... We affirm the order of the Utah State Tax Commission which found that the sale of slag to L.A. Young was the sale of tangible personal property to a party other than the state of Utah and therefore subject to sales tax.

Section 59-12-103 imposes sales tax on in-state retail sales of tangible personal property, and a real property contractor obligated to install fabricated goods is liable for the tax even when a co-venturer performs the installation.

Niederhauser v. TAX COM'N · filed 1993-08-13(1)(a)

Utah levies a tax on the "retail sales of tangible personal property made within the state" and on "tangible personal property stored, used, or consumed in this state." Utah Code Ann. § 59-12-103(1)(a), (l) (1992). However, property purchased for resale in the same form or as a component of a product to be manufactured is exempt from sales tax. Id. § 104(27). ... In our view then, there is no substantial, relevant difference between the joint venture arrangement and the other five contracts, under which petitioner does not dispute its status as a real property contractor. Accordingly, we affirm the Tax Commission's decision that petitioner was a real property contractor for the contract ostensibly undertaken by the joint venture and therefore liable for the taxes assessed.

Section 59-12-103 imposes sales tax on materials a real property contractor purchases and consumes in construction, even if the contract says title passes directly to the property owner.

Yeargin, Inc. v. Tax Commission · filed 1999-03-25

In addition, the nature of the transactions shows that Yeargin was the final consumer of the items in dispute and was thus liable for sales tax on the transactions in question.

Section 59-12-103 taxes the purchaser for retail sales of tangible personal property and for tangible personal property stored, used, or consumed in Utah.

THORUP BROS. CONST. v. Auditing Div. · filed 1993-09-15(1)

(1) There is levied a tax on the purchaser for the amount paid or charged for the following: (a) retail sales of tangible personal property made within the state; ....; (1) ... tangible personal property stored, used, or consumed in this state. Utah Code Ann. § 59-12-103 (1992). The focus of this statute is on the purchaser rather than the item purchased.

Section 59-12-103(1) levies sales tax on the purchaser of taxable tangible personal property, so liability turns on who purchased it rather than merely who handled or converted it.

Thorup Bros. Construction, Inc. v. Auditing Division of the Utah State Tax Commission · filed 1993-09-15(1)

The focus of this statute is on the purchaser rather than the item purchased.

Section 59-12-103(l)(g) authorizes sales taxation of repairs or renovations to installed canned software because the software remains tangible personal property.

South Central Utah Telephone Ass'n v. Auditing Division of the Utah State Tax Commission · filed 1997-12-30(l)(g)

Thus, because taxation of repairs or renovations to tangible personal property is statutorily authorized and because installed software remains tangible, the repair or renovation of installed software is taxable. Therefore, rule 92 (particularly the latter half) is valid as applied because taxation of services performed on installed software is “in harmony” with section 59-12-103(l)(g), which taxes the amount charged for services on tangible personal property.

Section 59-12-103(l)(c) levies sales tax on electricity sold or furnished for commercial consumption, including electricity used by a common carrier to transport property by land.

SF Phosphates Ltd. v. Auditing Division, Utah State Tax Commission · filed 1998-06-26(l)(c)

Section 59-12-103(l)(c) provides that a sales tax is levied on “gas, electricity, heat, coal, fuel oil, or other fuels sold or furnished for commercial consumption.” ... Thus, as the Commission concluded, the Sales and Use Tax Act specifically provides for the payment of sales tax on electricity sold to a common carrier, and the transfer of electricity by Phosphates to Pipeline is subject to sales tax.

Section 59-12-103(1)(i) taxes hotel accommodations and services purchased for fewer than 30 consecutive days, so taxability turns on the occupancy period rather than a written agreement, use of a specific room, or monthly billing method.

Airport Hilton Ventures, Ltd. v. Utah State Tax Commission · filed 1999-03-26(1)(i)

Under section 59-12-103(1)(i) and 59-12-301, to be taxed, one must use public accommodations for “fewer than 30 consecutive days.” Longer periods of occupancy are not taxed. The statutes appear to make the period of occupancy the relevant determinant of taxability of the transaction, not whether the occupancy is of a specific room, the agreement is written, or the billing occurs monthly. ... It is apparent that the Commission’s rule has added other criteria to the statute determining taxability. ... None of this is contemplated by the statute. Therefore, the rule is beyond the scope of the Commission’s power and is invalid.

Section 59-12-103(1)(c) taxes gas when sold for residential or commercial use, so under the pre-1996 statute industrial use of nitrogen gas was not taxable.

Hercules Inc. v. Utah State Tax Commission · filed 2000-12-21(1)(c)

Therefore, we construe the statute liberally in favor of the taxpayer, which leads us to conclude that the taxpayer, Hercules, should prevail. ... Thus, we presume, that the statute, prior to amendment, did not exempt only natural gas from taxation to the exclusion of all other gases used for manufacturing purposes.

Section 59-12-103 imposes sales tax on the purchaser or ultimate consumer, including a real property contractor who purchases or owns materials and converts them into real property.

Yeargin, Inc. v. Auditing Division of Utah State Tax Commission · filed 2001-02-06(1)(a)

Sales tax liability in Utah is governed by section 59-12-103 of the Utah Code, which provides in pertinent part: "There is levied a tax on the purchaser for the amount paid or charged for the . . . retail sales of tangible personal property made within the state[, and for] tangible personal property stored, used, or consumed in this state." Utah Code Ann. § 59-12-103(1)(a), 103(1)(l) (1996). ... Thus a contractor who is found to be a real property contractor is liable for sales tax on personal property he or she purchases or owns and converts into real property. ... To determine whether Yeargin was a real property contractor on the AP project, we must determine whether it was a contractor that (1) converted materials it (2) purchased or owned into real property.

Section 59-12-103(1)(a) does not impose sales tax on an installed real property improvement merely because it is sold after a lease.

Superior Soft Water Co. v. Utah State Tax Commission · filed 1992-11-30(1)(a)

The issue thus becomes whether a lease agreement, prior to the sale of an improvement to real estate, changes the nature of the improvement so that it becomes taxable as a sale of tangible personal property under § 59-12-103(l)(a). ... The nature of an improvement does not change simply because it is sold subsequent to its initial installation under a lease.

Section 59-12-103(l)(c) subjects compressor-fuel gas to Utah use tax when the pipeline operator has a substantial Utah nexus.

Questar Pipeline Co. v. Utah State Tax Commission · filed 1991-08-01(l)(c)

We affirm the Commission’s conclusion that Questar, through its activities in conducting the operations of the pipeline and compressors, does have a substantial nexus with the state, and the gas used to fuel those compressors is subject to Utah’s use tax under section 59 — 12—103(l)(c) (1987 & Supp.1991) and its predecessor and under R865-21-16U(B) of the Utah Administrative Code.

Section 59-12-103(l)(g) does not tax drilling and milling services as repairs or renovations when those services are performed independently on previously purchased logs.

Union Pacific Railroad v. Auditing Division of the Utah State Tax Commission · filed 1992-11-06(l)(g)

Thus, even under a deferential standard of review, we agree with Union Pacific that the drilling and milling services are not repairs or renovations within the meaning of section 59-12-103(l)(g).

The admission tax under § 59-12-103(l)(f) applies to a fee for entering a place, not fees for using activities or equipment inside when entry is free.

49th Street Galleria v. Tax Commission, Auditing Division · filed 1993-10-07(l)(f)

There is simply no fee charged by the Galleria for admission to any place; there are only fees charged to do particular things.

Section 59-12-103(l)(i) imposes use tax on the purchaser of property stored, used, or consumed in Utah; an exempt purchaser’s use does not become taxable merely because a nonexempt party incorporates the property into realty.

Brown Plumbing & Heating Co. v. State Tax Commission · filed 1993-10-22(l)(i)

The fact that Alpine had a nonexempt party incorporate the purchased property into Alpine’s realty does not change the character of the transaction.

Section 59-12-103(1)(Z) reaches tangible personal property purchased outside Utah and stored, used, or consumed in Utah.

Broadcast International, Inc. v. Utah State Tax Commission · filed 1994-09-30(1)(Z)

Use taxes are imposed on the storage, use, or consumption of tangible personal property purchased outside the state for storage, use, or consumption in Utah.

Section 59-12-103 does not impose use tax on property whose purchase is exempt from sales tax as an isolated or occasional sale.

Knowledge Data System v. Utah State Tax Commission, Auditing Division · filed 1993-12-21(1)(Z)

Accordingly, if a purchase of tangible personal property is exempt from sales tax, its subsequent use is also exempt.