H.B. 301 Enrolled

SALES TAX REFUND AMENDMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
AN ACT RELATING TO THE SALES AND USE TAX ACT; ADDRESSING THE SALES
AND USE TAX OVERPAYMENTS, DEFICIENCIES, AND REFUNDS
PROCEDURES; ADDRESSING THE PROCEDURES FOR OBJECTING TO NOTICES
OF DEFICIENCY, NOTICES OF ASSESSMENT, AND FINAL ASSESSMENTS;
MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-110, as last amended by Chapter 1, Laws of Utah 1993, Second Special Session
59-12-114, as last amended by Chapter 161, Laws of Utah 1987
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-110 is amended to read:
59-12-110. Overpayments, deficiencies, and refunds procedures.
(1) (a) As soon as practicable after [the] a return is filed, the commission shall examine
[it] the return.
(b) If [it then appears] the commission determines that the correct amount of tax to be
remitted is greater or less than [that] the amount shown to be due on the return [to be due], the
[tax] commission shall [be recomputed] recompute the tax.
(c) If the amount paid exceeds [that which is] the amount due, the excess, [together with]
plus interest [thereon at the rate and in the manner prescribed] as provided in Section 59-1-402,
shall be credited or refunded [to the person paying it, upon written application, if it is determined]
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 [not] 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 [has been paid more than
once or has been erroneously collected or computed], including an overpayment described in
Subsection (1)(c), the commission shall:
(i) credit [it on] the amount of tax, penalty, or interest paid by the taxpayer against any
amounts [then due from that person to the state under this chapter or under any other taxing law, the
administration of which is vested in the commission,] of tax, penalties, or interest the taxpayer owes;
and [the]
(ii) refund any balance [shall be refunded] to [that person] the taxpayer or [his] the taxpayer's
successors, administrators, executors, or assigns. [No such credit or refund is allowed unless]
(b) A taxpayer shall file a claim [is filed] with the commission to obtain a refund or credit
under this Subsection (2) within three years from [date of overpayment] the day on which the
taxpayer overpaid the tax, penalty, or interest.
(c) 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).
(d) 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 [any amount has been] the commission erroneously [determined] determines an
amount to be due from [any person] a taxpayer, the commission shall authorize [the cancellation of]
the amounts to be cancelled upon its records.
[(4) If the amount paid is less than the amount due, interest at the rate and in the manner
prescribed in Section 59-1-402 shall be added to the difference due.]
[(5) If any part of the deficiency is due to negligence or intentional disregard of authorized
rules with knowledge thereof, but without intent to defraud, there shall be added a penalty as
provided in Section 59-1-401 and interest at the rate and in the manner prescribed in Section
59-1-402 to the amount of the deficiency.]
[(6) If any part of the deficiency is due to fraud with the intent to evade, there shall be added

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a penalty as provided in Section 59-1-401 and interest at the rate and in the manner prescribed in
Section 59-1-402 to the amount of the deficiency.]
(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
of the deficiency is due to:
(i) negligence;
(ii) intentional disregard of law or rule; or
(iii) fraud with intent to evade the tax.
[(7) The deficiencies in] (5) (a) Except as provided in Subsection (5)(b), a taxpayer shall
pay a tax deficiency, [together with penalties and] including penalties or interest [imposed by] under
this section, [shall be due and payable by the taxpayer] within ten days after [notice and demand by]
the commission[, except that when the commission determines that a greater amount was due than
was shown on the return, and the tax is not deemed to be in jeopardy, the additional] 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, [and]
or interest [shall be due and payable] within 30 days after the commission [mailed its report of
deficiency determination] 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.
[(8)] (6) (a) Except [if a deficiency is due to fraud with intent to evade tax or of a failure to
file a return,] as provided in Subsection (6)(b), the commission shall assess the amount of taxes
imposed by this chapter [shall be assessed], and any penalties and interest, within three years after
[the] a taxpayer files a return [was filed and if not so assessed no].
(b) Notwithstanding Subsection (6)(a), the commission may make an assessment or

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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.
(c) 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 [shall be
begun] after the expiration of the three-year period.
[(9) In the case of a false or fraudulent return or payment with intent to evade tax or of
failure to file a return, the tax may be assessed or a proceeding for the collection of the tax may
commence without assessment at any time.]
Section 2. Section 59-12-114 is amended to read:
59-12-114. Taxpayer objections -- Available remedies.
[If any person, having made a return and paid the tax provided by this chapter, feels
aggrieved by the] (1) A taxpayer may object to a notice of deficiency or notice of assessment [made
upon him] issued by the commission[, he may apply] by applying to the commission [by petition in
writing, within 30 days after the notice is mailed to him] as provided in Title 63, Chapter 46b,
Administrative Procedures Act.
(2) A taxpayer who has not previously adjudicated a tax deficiency as provided in
Subsection (1) may object to a final assessment issued by the commission by:
(a) paying the tax; and
(b) filing a claim for a refund as provided in Section 59-12-110.
Section 3. Effective date.
This act takes effect on July 1, 1997.

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