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H.B. 201
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5 AN ACT RELATING TO REVENUE AND TAXATION; AMENDING REGISTRATION
6 PROCEDURES FOR VEHICLES SOLD BY LICENSED VEHICLE DEALERS.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 59-12-107, as last amended by Chapter 278, Laws of Utah 1994
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 59-12-107 is amended to read:
12 59-12-107. Collection, remittance, and payment of tax by vendors and consumers --
13 Returns -- Direct payment by purchaser of vehicle -- Other liability for collection -- Credits
14 -- Deposit and sale of security -- Penalties.
15 (1) (a) Each vendor shall pay or collect and remit the sales and use taxes imposed by this
16 chapter if within this state the vendor:
17 (i) has or utilizes an office, distribution house, sales house, warehouse, service enterprise,
18 or other place of business;
19 (ii) maintains a stock of goods;
20 (iii) engages in regular or systematic solicitation of sale of tangible personal property,
21 whether or not accepted in this state, by the distribution of catalogs, periodicals, advertising flyers,
22 or other advertising by means of print, radio, or television, or by mail, telegraphy, telephone,
23 computer data base, optic, microwave, or other communication system for the purpose of selling,
24 at retail, tangible personal property;
25 (iv) regularly engages in the delivery of property in this state other than by common carrier
26 or United States mail; or
27 (v) regularly engages in any activity in connection with the leasing or servicing of property
28 located within this state.
29 (b) If none of the conditions listed under Subsection (1)(a) exist, the vendor is not
30 responsible for the collection of the use tax but each person storing, using, or consuming tangible
31 personal property is responsible for remitting the use tax.
32 (c) Notwithstanding the provisions of Subsection (1)(a), the ownership of property that is
33 located at the premises of a printer's facility with which the retailer has contracted for printing and
34 that consists of the final printed product, property that becomes a part of the final printed product,
35 or copy from which the printed product is produced, shall not result in the retailer being [
36 considered to have or maintain an office, distribution house, sales house, warehouse, service
37 enterprise, or other place of business, or to maintain a stock of goods, within this state.
38 (2) (a) Each vendor shall collect the sales or use tax from the purchaser.
39 (b) A vendor may not collect as tax an amount, without regard to fractional parts of one
40 cent, in excess of the tax computed at the rates prescribed by this chapter.
41 (c) (i) Each vendor shall:
42 (A) give the purchaser a receipt for the use tax collected; or
43 (B) bill the use tax as a separate item and declare the name of this state and the vendor's
44 use tax license number on the invoice for the sale.
45 (ii) The receipt or invoice is prima facie evidence that the vendor has collected the use tax
46 and relieves the purchaser of the liability for reporting the use tax to the commission as a
47 consumer.
48 (d) A vendor is not required to maintain a separate account for the tax collected, but is
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50 moneys.
51 (e) Taxes collected by a vendor pursuant to this chapter shall be held in trust for the benefit
52 of the state and for payment to the commission in the manner and at the time provided for in this
53 chapter.
54 (f) If any vendor, during any reporting period, collects as a tax an amount in excess of the
55 lawful state and local percentage of total taxable sales allowed under this part and Part 2, the
56 vendor shall remit to the commission the full amount of the tax imposed under this part and Part
57 2 plus any excess.
58 (g) If the accounting methods regularly employed by the vendor in the transaction of the
59 vendor's business are such that reports of sales made during a calendar month or quarterly period
60 will impose unnecessary hardships, the commission may accept reports at intervals that will, in its
61 opinion, better suit the convenience of the taxpayer or vendor and will not jeopardize collection
62 of the tax.
63 (3) Each person storing, using, or consuming tangible personal property under Subsection
64 59-12-103 (1) is liable for the use tax imposed under this chapter.
65 (4) (a) Except as provided in Subsection (5) and in Section 59-12-108 , the sales or use tax
66 imposed by this chapter is due and payable to the commission quarterly on or before the last day
67 of the month next succeeding each calendar quarterly period.
68 (b) Each vendor shall, on or before the last day of the month next succeeding each calendar
69 quarterly period, file with the commission a return for the preceding quarterly period. The vendor
70 shall remit with the return the amount of the tax required under this chapter to be collected or paid
71 for the period covered by the return.
72 (c) Each return shall contain information and be in a form the commission prescribes by
73 rule.
74 (d) The sales tax as computed in the return shall be based upon the total nonexempt sales
75 made during the period, including both cash and charge sales.
76 (e) The use tax as computed in the return shall be based upon the total amount of sales or
77 purchases for storage, use, or other consumption in this state made during the period, including
78 both by cash and by charge.
79 (f) The commission may by rule extend the time for making returns and paying the taxes.
80 No extension may be for more than 90 days.
81 (g) The commission may require returns and payment of the tax to be made for other than
82 quarterly periods if it [
83 imposed by this chapter.
84 (5) [
85 purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to titling
86 or registration under the laws of this state. The commission shall collect the tax when the vehicle
87 is titled or registered.
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94 (6) If any sale of tangible personal property or any other taxable item or service under
95 Subsection 59-12-103 (1), is made by a wholesaler to a retailer, the wholesaler is not responsible
96 for the collection or payment of the tax imposed on the sale if the retailer represents that the
97 personal property is purchased by the retailer for resale and the personal property thereafter is not
98 resold. Instead, the retailer is solely liable for the tax.
99 (7) If any sale of property or service subject to the tax is made to a person prepaying sales
100 or use tax in accordance with Title 63, Chapter 51, Resource Development, or to a contractor or
101 subcontractor of that person, the person to whom such payment or consideration is payable is not
102 responsible for the collection or payment of the sales or use tax if the person prepaying the sales
103 or use tax represents that the amount prepaid as sales or use tax has not been fully credited against
104 sales or use tax due and payable under the rules promulgated by the commission. Instead, the
105 person prepaying the sales or use tax is solely liable for the tax.
106 (8) Credit is allowed for prepaid taxes and for taxes paid on that portion of an account
107 determined to be worthless and actually charged off for income tax purposes or on the portion of
108 the purchase price remaining unpaid at the time of a repossession made under the terms of a
109 conditional sales contract.
110 (9) (a) The commission may require any person subject to the tax imposed under this
111 chapter to deposit with it security as the commission determines, if the commission [
112 considers it necessary to ensure compliance with this chapter.
113 (b) The commission may sell the security at public sale if it becomes necessary to do so
114 in order to recover any tax, interest, or penalty due.
115 (c) The commission shall serve notice of the sale upon the person who deposited the
116 securities either personally or by mail. If the notice is by mail, notice sent to the last-known
117 address as it appears in the records of the commission is sufficient for the purposes of this
118 requirement.
119 (d) The commission shall return to the person who deposited the security any amount of
120 the sale proceeds that exceed the amounts due under this chapter.
121 (10) (a) [
122 timely remit the full amount of tax required by this chapter. A violation of this section is
123 punishable as provided in Section 59-1-401 .
124 (b) Each person who fails to pay any tax to the state or any amount of tax required to be
125 paid to the state, except amounts determined to be due by the commission under Sections
126 59-12-110 and 59-12-111 , within the time required by this chapter, or who fails to file any return
127 as required by this chapter, shall pay, in addition to the tax, penalties and interest as provided in
128 Section 59-12-110 .
129 (c) For purposes of prosecution under this section, each quarterly tax period in which a
130 vendor, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
131 tax required to be remitted, constitutes a separate offense.
Legislative Review Note
as of 12-8-98 1:16 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.