59-1-611. Payment of tax on appeal -- Interest.
(1) As used in this section, "post security" means:
(a) posting with the commission, for the full or a partial amount of the deficiency as
determined by the commission:
(i) a letter of credit;
(ii) a bond; or
(iii) other similar financial instrument acceptable to the commission; or
(b) as determined by the commission, depositing with the commission:
(i) the full amount of the deficiency; or
(ii) a partial amount of the deficiency.
(2) Except as provided in Subsection (3), a taxpayer that seeks judicial review of a final
commission redetermination of a deficiency shall post security with the commission.
(3) The commission shall waive the requirements of Subsection (2) if a taxpayer
establishes:
(a) that the taxpayer has sufficient financial resources to pay the deficiency if the
deficiency is upheld in a final unappealable judgment or order by a court of competent
jurisdiction; or
(b) as determined by the commission, that collection of the deficiency that is the subject
of the appeal is not jeopardized by waiving the requirements of Subsection (2).
(4) (a) The commission may not unreasonably deny a waiver described in Subsection (3).
(b) A taxpayer may seek judicial review of the commission's decision to deny a waiver
under Subsection (3) by the court reviewing the redetermination of the deficiency.
(5) If a taxpayer fails to comply with the requirements of Subsection (2), the reviewing
court may, in its discretion, dismiss the taxpayer's appeal of the redetermination of the deficiency.
(6) If the commission grants a waiver under Subsection (3), the taxpayer shall pay any
tax, interest, or penalties:
(a) ordered by a court of competent jurisdiction; and
(b) within a 45-day period beginning on the day on which the order described in
Subsection (6)(a) becomes final.
(7) If a taxpayer posts security with the commission, or the commission grants a waiver
in accordance with this section, interest shall accrue on the unpaid taxes that are the subject of
the deficiency at the rate and in the manner provided in Section 59-1-402.
Enacted by Chapter 70, 2006 General Session
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Last revised: Thursday, May 28, 2009