Utah Administrative Code
Topic - Tax Commission
Title R865 - Auditing
Rule R865-19S - Sales and Use Tax
Section R865-19S-121 - Sales and Use Tax Exemptions for Certain Purchases by a Mining Facility Pursuant to Utah Code Ann. Section 59-12-104

(1)

"Establishment" means a unit of operations, that is generally at a single physical location in Utah, where qualifying activities are performed. If a business operates in more than one location (e.g., branch or satellite offices), each physical location is considered separately from any other locations operated by the same business.

(2) The exemption does not apply to purchases of items of tangible personal property that become part of the real property.

(3) Purchases of qualifying machinery, equipment, parts, and materials are treated as purchases of tangible personal property under R865-19S-58, even if the item is affixed to real property upon installation.

(4) Machinery, equipment, parts, and materials used for non-qualifying activities are eligible for the exemption if the machinery, equipment, parts, and materials are primarily used in qualifying activities.

(5) The entity claiming the exemption shall retain records to support the claim that the machinery, equipment, parts, and materials are qualified for exemption from sales and use tax under the provisions of this rule and Section 59-12-104.