S.B. 50 Enrolled

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

AN ACT RELATING TO THE SALES AND USE TAX ACT; PROVIDING A SALES TAX
REFUND FOR POUNDS OF FOOD DONATED TO A QUALIFIED EMERGENCY
FOOD AGENCY; PROVIDING DEFINITIONS; PROVIDING PROCEDURES FOR
IMPLEMENTING THE REFUND; GRANTING RULEMAKING AUTHORITY TO THE
STATE TAX COMMISSION AND THE DIVISION OF COMMUNITY
DEVELOPMENT; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
59-12-901, Utah Code Annotated 1953
59-12-902, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-901 is enacted to read:
Part 9. Sales Tax Refund for Qualified Emergency Food Agencies.
59-12-901. Definitions.
As used in this part:
(1) "Consumer price index" is as described in Section (1)(f)(4), Internal Revenue Code,
and defined in Section (1)(f)(5), Internal Revenue Code.
(2) "Pounds of food donated" means the aggregate number of pounds of food donated to
a qualified emergency food agency:
(a) on or after January 1, 1998; and
(b) for which sales or use tax was paid under Part 1, Tax Collection, by the person

donating the food.
(3) "Qualified emergency food agency" means an organization that:
(a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code;
(b) operates a program, the primary purpose of which is to:
(i) warehouse and distribute food to other agencies and organizations providing food to
low-income persons; or
(ii) provide food directly to low-income persons; and
(c) is certified to claim a refund by the Division of Community Development created in
Section 9-4-201.
Section 2. Section 59-12-902 is enacted to read:
59-12-902. Sales tax refund for qualified emergency food agencies -- Administration
-- Rulemaking authority.
(1) Beginning on January 1, 1998, a qualified emergency food agency may claim a sales tax
refund as provided in this section on the pounds of food donated to the qualified emergency food
agency.
(2) (a) Subject to the adjustments provided for in Subsection (2)(b), a qualified emergency
food agency may claim a refund in an amount equal to the pounds of food donated to the qualified
emergency food agency multiplied by:
(i) $1.70; and
(ii) the lowest percentage of combined state and local sales and use taxes collected by a
municipality in the state under this chapter, except that the lowest percentage of combined state and
local sales and use taxes does not include the levy under Subsection 59-12-103(3).
(b) Beginning on January 1, 1999, the commission shall annually adjust on or before the
second Monday of February the $1.70 provided in Subsection (2)(a)(i) by a percentage equal to the
percentage difference between the food at home category of the Consumer Price Index for:
(i) the preceding calendar year; and
(ii) calendar year 1997.
(3) To claim a sales tax refund under this section, a qualified emergency food agency shall

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file an application with the commission.
(4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for implementing the sales tax refund under this
section, including:
(a) procedures for an organization to apply for recognition as a qualified emergency food
agency;
(b) standards for determining and verifying the amount of the sales tax refund; and
(c) procedures for a qualified emergency food agency to apply for a sales tax refund,
including the frequency with which a qualified emergency food agency may apply for a sales tax
refund.
(5) In accordance with Title 63. Chapter 46a. Utah Administrative Rulemaking Act, the
Division of Community Development may establish rules providing for the certification of
emergency food agencies to claim a refund under this part.
Section 3. Effective date.
This act takes effect on July 1, 1997.

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