Utah Tax Commission Posts Ruling on Sales and Use Taxability of Car Dealer Benefit Sales

On Feb. 16 the Utah State Tax Commission posted a private letter ruling on the taxability of sales of a benefit to purchasers of a car from a dealership. The benefit is a limited dollar amount to be applied toward a down payment for a replacement vehicle where a purchaser of the benefit suffers a constructive loss of the vehicle purchased. The Tax Commission ruled that the sales of the benefit are not subject to Utah sales and use tax. The Tax Commission also ruled that any down payment paid as a benefit to a dealership for a purchaser’s replacement ...