S.B. 178 Enrolled

STUDY ON SALES AND USE TAX COMPACT AND AGREEMENT
1999 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
AN ACT RELATING TO REVENUE AND TAXATION; PROVIDING LEGISLATIVE
FINDINGS ON SALES AND USE TAX SIMPLIFICATION; AUTHORIZING THE UTAH
STATE TAX COMMISSION TO ENTER INTO PRELIMINARY NEGOTIATIONS
REGARDING A SALES AND USE TAX COMPACT; AUTHORIZING THE UTAH STATE
TAX COMMISSION TO STUDY CERTAIN ISSUES RELATING TO SALES AND USE
TAXATION; ESTABLISHING PROCEDURES AND REQUIREMENTS FOR THE UTAH
STATE TAX COMMISSION STUDY; REQUIRING THE TAX REVIEW COMMISSION TO
STUDY SALES AND USE TAX SIMPLIFICATION; ESTABLISHING PROCEDURES AND
REQUIREMENTS FOR THE TAX REVIEW COMMISSION STUDY; AND ESTABLISHING
REQUIREMENTS FOR LEGISLATION IF THE REVENUE AND TAXATION INTERIM
COMMITTEE DETERMINES TO DRAFT LEGISLATION.
This act enacts uncodified material.
Be it enacted by the Legislature of the state of Utah:
Section 1. Legislative findings -- Sales and use tax compact negotiations -- Utah State
Tax Commission study authorization -- Tax Review Commission study -- Legislation
authorizing a compact.
(1) The Legislature finds that it is advisable to:
(a) study sales and use tax simplification; and
(b) develop policies, procedures, and requirements to reduce the burdens of administering
and complying with sales and use tax laws.
(2) The Utah State Tax Commission may enter into preliminary negotiations regarding a
compact:
(a) with one or more states; and
(b) that has one or more of the following objectives:
(i) developing uniformity in the sales and use tax systems of the states;

(ii) simplifying the sales and use tax systems of the states;
(iii) creating a sales and use tax system that allows taxpayers engaging in interstate sales and
use transactions to comply more efficiently with the sales and use tax laws of each state;
(iv) reducing sales and use tax administration costs for taxpayers;
(v) enhancing the efficiency of state tax administration while maintaining sales and use tax
revenues; or
(vi) developing a model for sales and use tax simplification.
(3) (a) The Utah State Tax Commission may study one or more of the following issues:
(i) developing uniformity between this state and one or more other states for purposes of:
(A) sales and use tax license forms;
(B) sales and use tax return filing requirements;
(C) sales and use tax payment requirements, including payments by electronic funds transfer;
(D) procedures for issuing sales and use tax refunds;
(E) sales and use tax exemption certificate documentation requirements;
(F) sales and use tax definitions; and
(G) audit procedures;
(ii) developing an electronic sales and use tax filing system;
(iii) developing a geographic information system to verify the sales and use tax rates imposed
by different jurisdictions;
(iv) using uniform product codes to identify taxable or exempt sales and use transactions;
(v) whether to develop one sales and use tax rate that applies to all taxable sales and use
transactions in the state; or
(vi) any other issue related to sales and use tax simplification.
(b) If the Utah State Tax Commission studies an issue under Subsection (3)(a), the Utah
State Tax Commission shall present:
(i) an initial report on the issue to the Revenue and Taxation Interim Committee beginning
on or before the May 1999 interim meeting; and
(ii) additional reports to the Revenue and Taxation Interim Committee as the Revenue and

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Taxation Interim Committee requests.
(4) The Tax Review Commission shall:
(a) study sales and use tax simplification during the 1999 interim; and
(b) make reports to the Revenue and Taxation Interim Committee as the Revenue and
Taxation Interim Committee requests.
(5) If the Revenue and Taxation Interim Committee drafts legislation during the 1999 interim
that authorizes the Utah State Tax Commission to enter into a compact with one or more states, the
legislation shall include:
(a) procedures and criteria for entering into, amending, and terminating the compact; and
(b) a requirement that the Utah State Tax Commission makes reports to the Legislature.

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