S.B. 50

1

SALES TAX REFUND ON DONATED FOOD
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Howard A. Stephenson
5 Howard C. Nielson
6 David L. Buhler
7 Mike Dmitrich
8 John P. Holmgren
9 Scott N. Howell
Joseph L. Hull
L. Alma Mansell
George Mantes
Eddie P. Mayne
Robert M. Muhlestein
Millie M. Peterson
L. Steven Poulton
Robert C. Steiner
Pete Suazo
Blaze D. Wharton

10 AN ACT RELATING TO THE SALES AND USE TAX ACT; PROVIDING A SALES TAX
11 REFUND FOR POUNDS OF FOOD DONATED TO A QUALIFIED EMERGENCY FOOD
12 AGENCY; PROVIDING DEFINITIONS; PROVIDING PROCEDURES FOR
13 IMPLEMENTING THE REFUND; GRANTING RULEMAKING AUTHORITY TO THE
14 STATE TAX COMMISSION; AND PROVIDING AN EFFECTIVE DATE.
15 This act affects sections of Utah Code Annotated 1953 as follows:
16 ENACTS:
17 59-12-901, Utah Code Annotated 1953
18 59-12-902, Utah Code Annotated 1953
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 59-12-901 is enacted to read:
21 Part 9. Sales Tax Refund for Qualified Emergency Food Agencies.
22 59-12-901. Definitions.
23 As used in this part:
24 (1) "Consumer price index" is as described in Section (1)(f)(4), Internal Revenue Code,
25 and defined in Section (1)(f)(5), Internal Revenue Code.
26 (2) "Pounds of food donated" means the aggregate number of pounds of food donated to
27 a qualified emergency food agency:
28 (a) on or after January 1, 1998; and

1 (b) for which sales or use tax was paid under Part 1, Tax Collection, by the person
2 donating the food.
3 (3) "Qualified emergency food agency" means an organization that:
4 (a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
5 Code; S [and] s
6 (b) operates a program, the primary purpose of which is to:
7 (i) warehouse and distribute food to other agencies and organizations providing food to
8 low-income persons; or
9 (ii) provide food directly to low-income persons S ; AND (c) IS CERTIFIED TO CLAIM A
9a REFUND BY THE DIVISION OF COMMUNITY DEVELOPMENT CREATED IN SECTION 9-4-201 s .
10 Section 2. Section 59-12-902 is enacted to read:
11 59-12-902. Sales tax refund for qualified emergency food agencies -- Administration
12 -- Rulemaking authority.
13 (1) Beginning on January 1, 1998, a qualified emergency food agency may claim a sales
14 tax refund as provided in this section on the pounds of food donated to the qualified emergency
15 food agency.
16 (2) (a) Subject to the adjustments provided for in Subsection (2)(b), a qualified emergency
17 food agency may claim a refund in an amount equal to the pounds of food donated to the qualified
18 emergency food agency multiplied by:
19 (i) $1.70; and
20 (ii) the lowest percentage of combined state and local sales and use taxes collected by a
21 municipality in the state under Title 59, Chapter 12, Sales and Use Tax Act, except that the lowest
22 percentage of combined state and local sales and use taxes does not include the levy under
23 Subsection 59-12-103(3).
24 (b) Beginning on January 1, 1999, the commission shall annually adjust on or before the
25 second Monday of February the $1.70 provided in Subsection (2)(a)(i) by a percentage equal to
26 the percentage difference between the food at home category of the Consumer Price Index for:
27 (i) the preceding calendar year; and
28 (ii) calendar year 1997.
29 (3) To claim a sales tax refund under this section, a qualified emergency food agency shall
30 file an application with the commission.
31 (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

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1 commission may make rules providing procedures for implementing the sales tax refund under this
2 section, including:
3 (a) procedures for an organization to apply for recognition as a qualified emergency food
4 agency;
5 (b) standards for determining and verifying the amount of the sales tax refund; and
6 (c) procedures for a qualified emergency food agency to apply for a sales tax refund,
7 including the frequency with which a qualified emergency food agency may apply for a sales tax
8 refund.
8a S (5) IN ACCORDANCE WITH TITLE 63, CHAPTER 46a, UTAH ADMINISTRATIVE RULEMAKING ACT,
8b THE DIVISION OF COMMUNITY DEVELOPMENT MAY ESTABLISH RULES PROVIDING FOR THE
8c CERTIFICATION OF EMERGENCY FOOD AGENCIES TO CLAIM A REFUND UNDER THIS PART. s
9 Section 3. Effective date.
10 This act takes effect on July 1, 1997.




Legislative Review Note
as of 12-18-96 8:11 AM

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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Amend on 2_goldenrod February 20, 1997