59-12-123. Collection, remittance, and payment of a tax on direct mail.
(1) Notwithstanding Section 59-12-107 and except as provided in Subsection (6), a
purchaser of direct mail that is not a holder of a direct payment permit under Section 59-12-107.1
shall provide to a seller at the time of a transaction:
(a) a form:
(i) prescribed by the commission; and
(ii) indicating that the transaction is a direct mail transaction; or
(b) information that indicates the locations of the recipients to which the direct mail is
delivered.
(2) If a seller receives a form described in Subsection (1)(a), the seller:
(a) is not liable to collect or remit an agreement sales and use tax for that transaction; and
(b) shall keep a record of the form described in Subsection (1)(a) for three years from the
date the seller files a return with the commission reporting that transaction.
(3) The purchaser described in Subsection (1) shall:
(a) determine the amount of an agreement sales and use tax due on the transaction in
accordance with Sections 59-12-211 and 59-12-212; and
(b) report and remit to the commission the agreement sales and use tax due on the
transaction.
(4) The form described in Subsection (1)(a) is in effect for all transactions between the
seller described in Subsection (2)(a) and the purchaser described in Subsection (1):
(a) beginning when the seller receives the form in accordance with Subsection (2); and
(b) ending when the purchaser revokes the form in writing.
(5) (a) If a seller receives the information described in Subsection (1)(b) from a
purchaser that indicates the locations of the recipients to which direct mail is delivered, the seller
shall collect and remit agreement sales and use tax in accordance with the information the
purchaser provides.
(b) If a seller collects and remits an agreement sales and use tax to the commission in
accordance with Subsection (5)(a), the seller is not liable for any further obligation to collect or
remit an agreement sales and use tax to the commission on the transaction unless the seller acts
in bad faith.
(6) If a purchaser of direct mail provides a seller with a direct payment permit in
accordance with Section 59-12-107.1, the purchaser may not be required to provide to the seller:
(a) the form required by Subsection (1)(a); or
(b) the information required by Subsection (1)(b).
(7) A seller shall collect and remit an agreement sales and use tax in accordance with
Section 59-12-107 if a purchaser of direct mail does not provide the seller with:
(a) a direct payment permit in accordance with Section 59-12-107.1; or
(b) the:
(i) form required by Subsection (1)(a); or
(ii) information required by Subsection (1)(b).
Enacted by Chapter 384, 2008 General Session
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Last revised: Thursday, May 28, 2009