S.B. 61

1

SALES AND USE TAX EXEMPTIONS -
2 PENALTY AND INTEREST
3 1999 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Howard A. Stephenson
6 AN ACT RELATING TO THE SALES AND USE TAX ACT; AUTHORIZING THE STATE
7 TAX COMMISSION TO WAIVE, REDUCE, OR COMPROMISE CERTAIN SALES AND USE
8 TAX PENALTIES UNDER CERTAIN CIRCUMSTANCES; AND MAKING TECHNICAL
9 CHANGES.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 59-12-105, as last amended by Chapter 318, Laws of Utah 1998
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 59-12-105 is amended to read:
15 59-12-105. Exempt sales to be reported.
16 [The] (1) An owner, vendor, or purchaser shall report to the commission the amount of
17 sales or uses exempt under [Subsections] Subsection 59-12-104 (14), (20), (40), [and] or (41)
18 [shall be reported to the commission by the owner, vendor, or purchaser, as the case may be. Upon
19 failure by].
20 (2) Except as provided in Subsections (3) and (4), if the owner, vendor, or purchaser fails
21 to report the full amount of the exemptions granted under [Subsections] Subsection 59-12-104
22 (14), (20), (40), [and] or (41) on the owner's, vendor's, or purchaser's original filed return, the
23 commission shall impose a penalty equal to the lesser of:
24 (a) 10% of the sales [or] and use tax that would have been imposed if the exemption had
25 not applied[. The penalty shall not be imposed if]; or
26 (b) $1,000.
27 (3) Notwithstanding Subsection (2), the commission may not impose a penalty under

28 Subsection (2) if the owner, vendor, or purchaser files an amended return containing the amount
29 of the exemption [is filed] prior to [notice of audit by the tax commission to] the owner, vendor,
30 or purchaser receiving a notice of audit from the commission.
31 (4) (a) Notwithstanding Subsection (2), the commission may waive, reduce, or
32 compromise a penalty imposed under this section if the commission finds there are reasonable
33 grounds for the waiver, reduction, or compromise.
34 (b) If the commission waives, reduces, or compromises a penalty under Subsection (4)(a),
35 the commission shall make a record of the grounds for waiving, reducing, or compromising the
36 penalty.




Legislative Review Note
as of 2-3-99 11:30 AM

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

Office of Legislative Research and General Counsel