S.B. 64 Enrolled

TAX COMMISSION REVISIONS
1999 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
AN ACT RELATING TO REVENUE AND TAXATION; REQUIRING CERTAIN
TAXPAYERS ASSESSED BY THE STATE TAX COMMISSION TO FILE A STATEMENT
CONTAINING CERTAIN PROPERTY TAX INFORMATION; REQUIRING THE STATE TAX
COMMISSION TO PREPARE A RECORD OF ASSESSMENT FOR AIRLINES, AIR
CHARTER SERVICES, AND AIR CONTRACT SERVICES; PROVIDING PENALTIES FOR
FAILING TO FILE A PROPERTY TAX STATEMENT WITH THE STATE TAX
COMMISSION UNDER CERTAIN CIRCUMSTANCES; AUTHORIZING THE STATE TAX
COMMISSION TO WAIVE, REDUCE, OR COMPROMISE A PENALTY UNDER CERTAIN
CIRCUMSTANCES; REQUIRING THE STATE TAX COMMISSION TO ASSESS AND LIST
CERTAIN PROPERTY USING THE BEST INFORMATION OBTAINABLE BY THE
COMMISSION IF A PERSON FAILS TO FILE A PROPERTY TAX STATEMENT UNDER
CERTAIN CIRCUMSTANCES; AUTHORIZING THE STATE TAX COMMISSION TO
EXTEND THE TIME PERIOD FOR FILING A PROPERTY TAX STATEMENT UNDER
CERTAIN CIRCUMSTANCES; ADDRESSING THE CIRCUMSTANCES UNDER WHICH A
TAXPAYER MAY CLAIM A REFUND FOR AN OVERPAYMENT OF A SALES AND USE
TAX; PROVIDING PROCEDURES FOR CLAIMING THE REFUND; MAKING TECHNICAL
CHANGES; AND PROVIDING A COORDINATION CLAUSE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-2-202, as last amended by Chapter 209, Laws of Utah 1996
59-2-204, as enacted by Chapter 4, Laws of Utah 1987
59-2-207, as enacted by Chapter 4, Laws of Utah 1987
59-12-110, as last amended by Chapter 299, Laws of Utah 1998
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-2-202 is amended to read:

59-2-202. Statement of taxpayer -- Penalty for failure to file statement or information
-- Waiver, reduction, or compromise of penalty -- Extension of time for filing statement --
Assessment without statement -- Appeals.
(1) (a) A person, or an officer or agent of that person, owning or operating [a public utility
in this state, or owning or operating a pipeline, power, canal, irrigation, or telephone company in
more than one county in this state,] property described in Subsection (1)(b) shall, on or before March
1 of each year, [furnish to] file with the commission a statement:
(i) signed and sworn to by the person, officer, or agent;
(ii) showing in detail all real property[, real or] and tangible personal[, owned by] property
located in the state that the person [in the state, including a statement of mileage] owns or operates;
(iii) containing the number of miles of taxable tangible personal property in each county[,]:
(A) that the person owns or operates; and
(B) as valued [at 12 o'clock m. of] on January 1 of the year[, with] for which the person,
officer, or agent is furnishing the statement; and
(iv) containing any other information [required by] the commission requires.
(b) Subsection (1)(a) applies to:
(i) the following property located in the state:
(A) a public utility;
(B) an airline;
(C) an air charter service; or
(D) an air contract service; or
(ii) the following property located in more than one county in the state:
(A) a pipeline company;
(B) a power company;
(C) a canal company;
(D) an irrigation company; or
(E) a telephone company.
[(b)] (c) (i) The commission may [extend the time] allow an extension for filing the

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statement under Subsection (1)(a)[, except that the extension may] for a time period not [exceed]
exceeding 30 days, unless the commission determines that extraordinary circumstances require a
longer period of extension.
(ii) The commission shall grant a person, or an officer or agent of that person, an extension
for filing the statement under Subsection (1)(a) for a time period not exceeding 15 days if:
(A) a federal regulatory agency requires the taxpayer to file a statement that contains the
same information as the statement under Subsection (1)(a); and
(B) the person, or an officer or agent of that person, requests the commission to grant the
extension.
(2) The commission shall assess and list the property described in Subsection (1)(b) using
the best information obtainable by the commission if a person, or an officer or agent of that person,
fails to file the statement required under Subsection (1)(a) on or before the later of:
(a) March 1; or
(b) if the commission allows an extension under Subsection (1)(c) for filing the statement,
the day after the last day of the extension period.
[(2) A person failing to furnish the statement under Subsection (1)(a) on or before March
1 of each year, or any other information considered by the commission necessary to enable it to
determine valuations for assessment purposes or for the apportionment of the assessment, shall be
assessed by the]
(3) (a) Except as provided in Subsection (3)(c), the commission shall assess a person a
penalty [equal to 10% of the estimated tax due, except that the penalty may not be less than $100.]
as provided in Subsection (3)(b), if the person, or an officer or agent of that person, fails to file:
(i) the statement required under Subsection (1)(a) on or before the later of:
(A) March 1; or
(B) if the commission allows an extension under Subsection (1)(c) for filing the statement,
the day after the last day of the extension period; or
(ii) any other information the commission determines to be necessary to:
(A) establish valuations for assessment purposes; or

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(B) apportion an assessment.
(b) The penalty described in Subsection (3)(a) is an amount equal to the greater of:
(i) 10% of the person's estimated tax liability under this chapter for the current calendar year
not to exceed $50,000; or
(ii) $100.
(c) (i) Notwithstanding Subsections (3)(a) and (4), the commission may waive, reduce, or
compromise a penalty imposed under this section if the commission finds there are reasonable
grounds for the waiver, reduction, or compromise.
(ii) If the commission waives, reduces, or compromises a penalty under Subsection (3)(c)(i),
the commission shall make a record of the grounds for waiving, reducing, or compromising the
penalty.
[(3)] (4) The county treasurer shall collect the penalty imposed under Subsection [(2)] (3)
[shall be collected according to the procedures and requirements of] as provided in Section
59-2-1308 .
[(4)] (5) A person subject to a penalty under Subsection [(2)] (3) may appeal the penalty
according to procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act.
Section 2. Section 59-2-204 is amended to read:
59-2-204. Record of assessment of public utility companies -- Review by county
assessor.
(1) Each year, the commission shall prepare a record of assessment of the following
companies:
(a) public utility companies[.];
(b) airlines;
(c) air charter services; and
(d) air contract services.
(2) The record of assessment under Subsection (1) shall include:
(a) the name of [every] each person engaged in [any public utility] business within the state
in a company described in Subsection (1);

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(b) for each company described in Subsection (1), the total value of all of the company's
tangible and intangible properties [of the person]; and
(c) any other information as determined by the commission.
[(2) The] (3) At the request of a county assessor, the commission shall provide to the county
assessor:
(a) the record of [the] assessment described in Subsection (1); and
(b) the information upon which the assessments and apportionments contained in the record
of assessment are made [are available for review upon request by a county assessor].
Section 3. Section 59-2-207 is amended to read:
59-2-207. Statements for mines -- Penalty for failure to file statement or information
-- Assessment without statement -- Penalty -- Waiver, reduction, or compromise of penalty --
Extension of time for filing statement -- Appeals.
(1) (a) [The owner or operator, as provided in this part, of every mine or mining claim and
other valuable mineral deposits, including lands containing coal or hydrocarbons,] A person, or an
officer or agent of that person, owning or operating property described in Subsection (1)(b) shall file
with the commission, [in] on a form prescribed by the [commissioner] commission, a sworn
statement [with the commission] on or before March 1 of each year[. The statement shall set out in
detail any information required by the commission.]:
(i) showing in detail all real property and tangible personal property located in the state that
the person owns or operates; and
(ii) containing any other information the commission requires.
(b) Subsection (1)(a) applies to the following property:
(i) a mine;
(ii) a mining claim; or
(iii) a valuable mineral deposit, including lands containing coal or hydrocarbons.
(c) (i) The commission may allow an extension for filing the statement under Subsection
(1)(a) for a time period not exceeding 30 days, unless the commission determines that extraordinary
circumstances require a longer period of extension.

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(ii) The commission shall grant a person, or an officer or agent of that person, an extension
for filing the statement under Subsection (1)(a) for a time period not exceeding 15 days if:
(A) a federal regulatory agency requires the taxpayer to file a statement that contains the
same information as the statement under Subsection (1)(a); and
(B) the person, or an officer or agent of that person, requests the commission to grant the
extension.
(2) [If any] The commission shall assess and list the property described in Subsection (1)(b)
using the best information obtainable by the commission if a person, or an officer or agent of that
person, fails to file the statement required under Subsection (1)(a)[, the commission shall assess and
list the property using the best information obtainable by the commission.] on or before the later of:
(a) March 1; or
(b) if the commission allows an extension under Subsection (1)(c) for filing the statement,
the day after the last day of the extension period.
(3) (a) [Any person who willfully refuses, upon demand, to furnish the statement required
under Subsection (1), is subject to the same penalties as provided under Section 59-2-307 . Failure
to furnish the statement following a renewed demand, after conviction, constitutes a separate
offense.] Except as provided in Subsection (3)(c), the commission shall assess a person a penalty as
provided in Subsection (3)(b), if the person, or an officer or agent of that person, fails to file:
(i) the statement required under Subsection (1)(a) on or before the later of:
(A) March 1; or
(B) if the commission allows an extension under Subsection (1)(c) for filing the statement,
the day after the last day of the extension period; or
(ii) any other information the commission determines to be necessary to:
(A) establish valuations for assessment purposes; or
(B) apportion an assessment.
(b) The penalty described in Subsection (3)(a) is an amount equal to the greater of:
(i) 10% of the person's estimated tax liability under this chapter for the current calendar year
not to exceed $50,000; or

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(ii) $100.
(c) (i) Notwithstanding Subsections (3)(a) and (4), the commission may waive, reduce, or
compromise a penalty imposed under this section if the commission finds there are reasonable
grounds for the waiver, reduction, or compromise.
(ii) If the commission waives, reduces, or compromises a penalty under Subsection (3)(c)(i),
the commission shall make a record of the grounds for waiving, reducing, or compromising the
penalty.
(4) The county treasurer shall collect the penalty imposed under Subsection (3) as provided
in Section 59-2-1308 .
(5) A person subject to a penalty under Subsection (3) may appeal the penalty according to
the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act.
Section 4. Section 59-12-110 is amended to read:
59-12-110. Overpayments, deficiencies, and refunds procedures.
(1) (a) As soon as practicable after a return is filed, the commission shall examine the return.
(b) If the commission determines that the correct amount of tax to be remitted is greater or
less than the amount shown to be due on the return, the commission shall recompute the tax.
(c) If the amount paid exceeds the amount due, the excess, plus interest as provided in
Section 59-1-402 , shall be credited or refunded to the taxpayer as provided in Subsection (2).
(d) The commission may not credit or refund to the taxpayer interest on an overpayment
under Subsection (1)(c) if the commission determines that the overpayment was made for the
purpose of investment.
(2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission
erroneously receives, collects, or computes any tax, penalty, or interest, including an overpayment
described in Subsection (1)(c), the commission shall:
(i) credit the amount of tax, penalty, or interest paid by the taxpayer against any amounts of
tax, penalties, or interest the taxpayer owes; and
(ii) refund any balance to the taxpayer or the taxpayer's successors, administrators, executors,
or assigns.

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(b) Except as provided in Subsection (2)(c), a taxpayer shall file a claim with the commission
to obtain a refund or credit under this Subsection (2) within three years from the day on which the
taxpayer overpaid the tax, penalty, or interest.
(c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall
extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
(i) the three-year period under Subsection (2)(b) has not expired; and
(ii) the commission and the taxpayer sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
(d) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2)
regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of
assessment as provided in Subsection 59-12-114 (1).
(e) A taxpayer may obtain a refund under this Subsection (2) of a tax paid under this chapter
on a sale or use that is taxable under Section 59-12-103 if:
(i) the sale or use was exempt from sales and use taxes under Section 59-12-104 on the date
of purchase; and
(ii) except as provided in Subsection (2)(c), the taxpayer files a claim for a refund with the
commission as provided in Subsections (2)(b) through (d).
[(e)] (f) If the commission denies a claim for a refund or credit under this Subsection (2), the
taxpayer may request a redetermination of the denial by filing a petition or request for agency action
with the commission as provided in Title 63, Chapter 46b, Administrative Procedures Act.
(3) If the commission erroneously determines an amount to be due from a taxpayer, the
commission shall authorize the amounts to be cancelled upon its records.
(4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a
deficiency under this section:
(i) a penalty as provided in Section 59-1-401 ; and
(ii) interest as provided in Section 59-1-402 .
(b) The commission may impose a penalty and interest on the entire deficiency if any part

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of the deficiency is due to:
(i) negligence;
(ii) intentional disregard of law or rule; or
(iii) fraud with intent to evade the tax.
(5) (a) Except as provided in Subsection (5)(b), a taxpayer shall pay a tax deficiency,
including penalties or interest under this section, within ten days after the commission provides the
taxpayer notice and demand of the deficiency, penalty, or interest.
(b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, or
interest within 30 days after the commission provides the taxpayer notice and demand of the
deficiency, penalty, or interest if the commission determines:
(i) that a greater amount was due than was shown on the return; and
(ii) the tax is not in jeopardy.
(6) (a) Except as provided in Subsections (6)(c) through (f), the commission shall assess the
amount of taxes imposed by this chapter, and any penalties and interest, within three years after a
taxpayer files a return.
(b) Except as provided in Subsections (6)(c) through (f), if the commission does not make
an assessment under Subsection (6)(a) within three years, the commission may not commence a
proceeding for the collection of the taxes after the expiration of the three-year period.
(c) Notwithstanding Subsections (6)(a) and (b), the commission may make an assessment
or commence a proceeding to collect a tax at any time if a deficiency is due to:
(i) fraud; or
(ii) failure to file a return.
(d) Notwithstanding Subsections (6)(a) and (b), beginning on July 1, 1998, the commission
may extend the period to make an assessment or to commence a proceeding to collect the tax under
this chapter if:
(i) the three-year period under this Subsection (6) has not expired; and
(ii) the commission and the taxpayer sign a written agreement:
(A) authorizing the extension; and

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(B) providing for the length of the extension.
(e) If the commission delays an audit at the request of a taxpayer, the commission may make
an assessment as provided in Subsection (6)(f) if:
(i) the taxpayer subsequently refuses to agree to an extension request by the commission; and
(ii) the three-year period under this Subsection (6) expires before the commission completes
the audit.
(f) An assessment under Subsection (6)(e) shall be:
(i) for the time period for which the commission could not make an assessment because of
the expiration of the three-year period; and
(ii) in an amount equal to the difference between:
(A) the commission's estimate of the amount of taxes the taxpayer would have been assessed
for the time period described in Subsection (6)(f)(i); and
(B) the amount of taxes the taxpayer actually paid for the time period described in
Subsection (6)(f)(i).
Section 5. Coordination clause.
If this bill and S.B. 76, Sales and Use Tax Exemption for Pollution Control Facilities, both
pass, it is the intent of the Legislature that Subsection 59-12-110(2)(b) shall read:
"(b) Except as provided in Subsection (2)(c) or Section 19-2-124, a taxpayer shall file a
claim with the commission to obtain a refund or credit under this Subsection (2) within three years
from the day on which the taxpayer overpaid the tax, penalty, or interest."

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