H.B. 301

1

SALES TAX REFUND AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: John L. Valentine
5 AN ACT RELATING TO THE SALES AND USE TAX ACT; ADDRESSING THE SALES
6 AND USE TAX DEFICIENCIES, OVERPAYMENTS, AND REFUNDS PROCEDURES;
7 ADDRESSING THE PROCEDURES FOR OBJECTING TO NOTICES OF DEFICIENCY,
8 NOTICES OF ASSESSMENT, AND FINAL ASSESSMENTS; MAKING TECHNICAL
9 CHANGES; AND PROVIDING AN EFFECTIVE DATE.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 59-12-110, as last amended by Chapter 1, Laws of Utah 1993, Second Special Session
13 59-12-114, as last amended by Chapter 161, Laws of Utah 1987
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 59-12-110 is amended to read:
16 59-12-110. Overpayments, deficiencies, and refunds procedures.
17 (1) (a) As soon as practicable after [the] a return is filed, the commission shall examine
18 [it] the return.
19 (b) If [it then appears] the commission determines that the correct amount of tax to be
20 remitted is greater or less than [that] the amount shown to be due on the return [to be due], the
21 [tax] commission shall [be recomputed] recompute the tax.
22 (c) If the amount paid exceeds [that which is] the amount due, the excess, [together with]
23 plus interest [thereon at the rate and in the manner prescribed] as provided in Section 59-1-402,
24 shall be credited or refunded [to the person paying it, upon written application, if it is determined]
25 to the taxpayer as provided in Subsection (2).
26 (d) The commission may not credit or refund to the taxpayer interest on an overpayment
27 under Subsection (1)(c) if the commission determines that the overpayment was [not] made for the

1 purpose of investment.
2 (2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission
3 erroneously receives, collects, or computes any tax, penalty, or interest [has been paid more than
4 once or has been erroneously collected or computed], including an overpayment described in
5 Subsection (1)(c), the commission shall:
6 (i) (A) credit [it on] the amount of tax, penalty, or interest paid by the taxpayer against any
7 amounts [then due from that person to the state under this chapter or under any other taxing law,
8 the administration of which is vested in the commission,] of tax, penalties, or interest the taxpayer
9 owes; and [the]
10 (ii) refund any balance [shall be refunded] to [that person] the taxpayer or [his] the
11 taxpayer's successors, administrators, executors, or assigns. [No such credit or refund is allowed
12 unless]
13 (b) A taxpayer shall file a claim [is filed] with the commission to obtain a refund or credit
14 under this Subsection (2) within three years from [date of overpayment] the day on which the
15 taxpayer overpaid the tax, penalty, or interest.
16 (c) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2)
17 regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of
18 assessment as provided in Subsection 59-12-114(1).
19 (d) If the commission denies a claim for a refund or credit under this Subsection (2), the
20 taxpayer may request a redetermination of the denial by filing a petition or request for agency
21 action with the commission as provided in Title 63, Chapter 46b, Administrative Procedures Act.
22 (3) If [any amount has been] the commission erroneously [determined] determines an
23 amount to be due from [any person] a taxpayer, the commission shall authorize [the cancellation
24 of] the amounts to be cancelled upon its records.
25 [(4) If the amount paid is less than the amount due, interest at the rate and in the manner
26 prescribed in Section 59-1-402 shall be added to the difference due.]
27 [(5) If any part of the deficiency is due to negligence or intentional disregard of authorized
28 rules with knowledge thereof, but without intent to defraud, there shall be added a penalty as
29 provided in Section 59-1-401 and interest at the rate and in the manner prescribed in Section
30 59-1-402 to the amount of the deficiency.]
31 [(6) If any part of the deficiency is due to fraud with the intent to evade, there shall be

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1 added a penalty as provided in Section 59-1-401 and interest at the rate and in the manner
2 prescribed in Section 59-1-402 to the amount of the deficiency.]
3 (4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a
4 deficiency under this section:
5 (i) a penalty as provided in Section 59-1-401; and
6 (ii) interest as provided in Section 59-1-402.
7 (b) The commission may impose a penalty and interest on the entire deficiency if any part
8 of the deficiency is due to:
9 (i) negligence;
10 (ii) intentional disregard of law or rule; or
11 (iii) fraud with intent to evade the tax.
12 [(7) The deficiencies in] (5) (a) Except as provided in Subsection (5)(b), a taxpayer shall
13 pay a tax deficiency, [together with penalties and] including penalties or interest [imposed by]
14 under this section, [shall be due and payable by the taxpayer] within ten days after [notice and
15 demand by] the commission[, except that when the commission determines that a greater amount
16 was due than was shown on the return, and the tax is not deemed to be in jeopardy, the additional]
17 provides the taxpayer notice and demand of the deficiency, penalty, or interest.
18 (b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, [and]
19 or interest [shall be due and payable] within 30 days after the commission [mailed its report of
20 deficiency determination] provides the taxpayer notice and demand of the deficiency, penalty, or
21 interest if the commission determines:
22 (i) that a greater amount was due than was shown on the return; and
23 (ii) the tax is not in jeopardy.
24 [(8)] (6) (a) Except [if a deficiency is due to fraud with intent to evade tax or of a failure
25 to file a return,] as provided in Subsection (6)(b), the commission shall assess the amount of taxes
26 imposed by this chapter [shall be assessed], and any penalties and interest, within three years after
27 [the] a taxpayer files a return [was filed and if not so assessed no].
28 (b) Notwithstanding Subsection (6)(a), the commission may make an assessment or
29 commence a proceeding to collect a tax at any time if a deficiency is due to:
30 (i) fraud; or
31 (ii) failure to file a return.

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1 (c) If the commission does not make an assessment under Subsection (6)(a) within three
2 years, the commission may not commence a proceeding for the collection of the taxes [shall be
3 begun] after the expiration of the three-year period.
4 [(9) In the case of a false or fraudulent return or payment with intent to evade tax or of
5 failure to file a return, the tax may be assessed or a proceeding for the collection of the tax may
6 commence without assessment at any time.]
7 Section 2. Section 59-12-114 is amended to read:
8 59-12-114. Aggrieved taxpayer -- Available remedies.
9 [If any person, having made a return and paid the tax provided by this chapter, feels
10 aggrieved by the] (1) A taxpayer may object to a notice of deficiency or notice of assessment
11 [made upon him] issued by the commission[, he may apply] by applying to the commission [by
12 petition in writing, within 30 days after the notice is mailed to him] as provided in Title 63,
13 Chapter 46b, Administrative Procedures Act.
14 (2) A taxpayer who has not previously adjudicated a tax deficiency as provided in
15 Subsection (1) may object to a final assessment issued by the commission by:
16 (a) paying the tax; and
17 (b) filing a claim for a refund as provided in Section 59-12-110.
18 Section 3. Effective date.
19 This act takes effect on July 1, 1997.




Legislative Review Note
as of 2-3-97 1:43 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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