1. (1) The use of tangible personal property is subject to sales and use taxes unless:

   1. (a) sales or use taxes were paid on the purchase of the tangible personal property;
   2. (b) the tangible personal property is not subject to sales and use taxes; or
   3. (c) an exemption applies to the sale or use of the tangible personal property.

2. (2) A donation or gift of tangible personal property is considered to be use of tangible personal property, unless:

   1. (a) the donation or gift is made to an entity or organization that would qualify for an exemption for a religious or charitable institution under Section 59-12-104 and Section R865-19S-43, if the tangible personal property were sold to the entity or organization;
   2. (b) the donated or gifted tangible personal property would have been exempt from sales and use taxes if sold; or
   3. (c) the donation or gift is contingent on and guaranteed upon the completion of a taxable sale.

3. (3)(a) If a retailer accepts a coupon for part or total payment for a taxable product and is reimbursed by a manufacturer or another party, the total sales value, including the coupon amount, is subject to sales or use tax.

   1. (b) A coupon for which no reimbursement is received is considered to be a discount and the taxable amount is the net amount paid by the customer after deducting the value of the coupon.

KEY: charities, tax exemptions, religious activities, sales tax

Date of Last Change: January 1, 2026

Notice of Continuation: November 9, 2021

Authorizing, and Implemented or Interpreted Law: 9-2-1702; 9-2-1703; 10-1-303; 10-1-306; 10-1-307; 10-1-405; 19-6-808; 26-32a-101 through 26-32a-113; 59-1-210; 59-12; 59-12-102; 59-12-103; 59-12-104; 59-12-105; 59-12-106; 59-12-107; 59-12-108; 59-12-118; 59-12-301; 59-12-352; 59-12-353