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Sales Tax State Activity Update - May 2006

Utah Appliances No Longer Permanent

Effective July 1, 2006, the Utah Legislature modifies the definition of "permanently attached to real property" to exclude refrigerators, washers, dryers, stoves, televisions, computers, telephones and similar items.

Generally speaking "permanently attached to real property" means the attachment of tangible personal property is essential to the use of the property, and the tangible property will remain attached to the real property in the same place over its useful life; or if detached, the detachment would cause substantial damage to the real property, or require substantial alteration or repair of the real property to which the tangible property is attached.

The modifications include itemized listings of items that are specifically included and excluded from the meaning of "permanently attached to real property".

"Permanently attached to real property" includes:

• An attachment of the following tangible personal property to real property, regardless of whether the attachment to real property is only through a line that supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by rule:
  • (A) property attached to oil, gas, or water pipelines, other than items (1) through (8) below;
    • (B) a hot water heater;
    • (C) a water softener system; or
    • (D) a water filtration system, other than a water filtration system manufactured as part of a re-frigerator.

"Permanently attached to real property" does not include:

• An attachment of the following tangible personal property to real property if the attachment to real property is only through a line that supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by rule:

  1. A refrigerator
  2. A washer
  3, A dryer
  4. A stove
  5. A television
  6, A computer
  7. A telephone
  8. Tangible personal property similar to (1) through (7) as determined by commission rule.

View the full text on the Utah State Legislature Website.

(Utah State Legislature, 2006 General Session, Senate Bill 89)

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