H.B. 151

1

SALES AND USE TAX AMENDMENTS
2 2003 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: David Litvack
5 This act modifies the Sales and Use Tax Act to address the circumstances under which a
6 person is required to remit sales and use taxes to the State Tax Commission on a monthly
7 basis, and provides procedures and requirements for remitting these sales and use taxes.
8 The act modifies provisions allowing a person that is required to remit state sales and use
9 taxes to the State Tax Commission on a monthly basis to retain a portion of the state sales
10 and use tax revenues the person is required to remit to the State Tax Commission to
11 cover the costs of remitting those sales and use tax revenues on a monthly basis. The act
12 makes technical changes. The act takes effect on July 1, 2003.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 59-12-108, as last amended by Chapter 289, Laws of Utah 1998
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 59-12-108 is amended to read:
18 59-12-108. Monthly payment -- Penalty.
19 (1) [Any] (a) Notwithstanding Section 59-12-107 , a person [whose] that has a tax
20 liability under this [part, Part 2, The Local Sales and Use Tax Act, Part 5, Public Transit Tax,
21 Part 10, Highways Tax, Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act,
22 Subsection 59-12-603 (1)(a)(i), and Subsection 59-12-603 (1)(a)(ii), was] chapter of $50,000 or
23 more for the previous calendar year shall[, on or before the last day of the month next
24 succeeding each calendar month,]:
25 (i) file a return with the commission [a return]:
26 (A) monthly on or before the last day of the month immediately following the current
27 month; and

28 (B) for the preceding [monthly period. The vendor shall] month; and
29 (ii) remit with the return required by Subsection (1)(a)(i) the amount [of the state and
30 local tax required under this part, Part 2, The Local Sales and Use Tax Act, Part 5, Public
31 Transit Tax, Part 10, Highways Tax, Title 10, Chapter 1, Part 3, Municipal Energy Sales and
32 Use Tax Act, Subsection 59-12-603 (1)(a)(i), and Subsection 59-12-603 (1)(a)(ii), to be
33 collected or paid for the period covered by the return. The] the person is required to remit to
34 the commission for each tax, fee, or charge described in Subsection (1)(b):
35 (A) if that person's tax liability under this chapter for the previous calendar year is less
36 than $96,000, by any method permitted by the commission; or
37 (B) if that person's tax liability under this chapter for the previous calendar year is
38 $96,000 or more, by electronic funds transfer.
39 (b) Subsection (1)(a)(ii) applies to the following taxes, fees, or charges:
40 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
41 (ii) a fee under Section 19-6-716 ;
42 (iii) a charge under Section 69-2-5.5 ; or
43 (iv) a tax under this chapter.
44 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
45 commission shall establish by rule [the] procedures and [guidelines in] requirements for
46 determining the [tax liability] amount a person is required to remit to the commission under
47 this [section] Subsection (1).
48 [(2) Any person whose tax liability under this part, Part 2, The Local Sales and Use
49 Tax Act, Part 5, Public Transit Tax, Part 10, Highways Tax, Title 10, Chapter 1, Part 3,
50 Municipal Energy Sales and Use Tax Act, Subsection 59-12-603 (1)(a)(i), and Subsection
51 59-12-603 (1)(a)(ii), was $96,000 or more for the previous year shall remit the monthly amount
52 of state and local tax payment due under this section to the tax commission by electronic funds
53 transfer.]
54 [(3)] (2) (a) Except as provided in Subsection [(3)] (2)(b), a [vendor who is required to
55 remit taxes monthly under this section] person subject to Subsection (1) or a person described
56 in Subsection (3) may retain each month an amount not to exceed [1.5% of the total monthly
57 sales tax collected under Part 1 of this chapter, and]:
58 (i) for an amount a person is required to remit to the commission under this part:

59 (A) if the amount the person was required to remit to the commission under this part
60 for the previous calendar year was $71,250 or less, 1.75% of the amount the person remits to
61 the commission:
62 (I) under this part; and
63 (II) for the month for which the person is filing a return in accordance with Subsection
64 (1); or
65 (B) if the amount the person was required to remit to the commission under this part
66 for the previous calendar year was more than $71,250, 1% of the amount the person remits to
67 the commission:
68 (I) under this part; and
69 (II) for the month for which the person is filing a return in accordance with Subsection
70 (1); and
71 (ii) 1% of [the total monthly sales tax collected under Part 2, The Local Sales and Use
72 Tax Act, Part 5, Public Transit Tax, Part 10, Highways Tax, Title 10, Chapter 1, Part 3,
73 Municipal Energy Sales and Use Tax Act, Subsection 59-12-603 (1)(a)(i), and Subsection
74 59-12-603 (1)(a)(ii), for the cost to it of collecting and remitting sales and use taxes to the
75 commission on a monthly basis.] any amounts the person is required to remit to the
76 commission for:
77 (A) the month for which the person is filing a return in accordance with Subsection (1);
78 and
79 (B) under:
80 (I) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
81 (II) Part 2, Local Sales and Use Tax Act;
82 (III) Part 5, Public Transit Tax;
83 (IV) Part 10, Highways or Public Transit System Tax;
84 (V) Subsection 59-12-603 (1)(a)(i); or
85 (VI) Subsection 59-12-603 (1)(a)(ii).
86 (b) [A] Notwithstanding Subsection (2)(a), a state government entity that is required to
87 remit taxes monthly [under this chapter] in accordance with Subsection (1) may not retain [any
88 portion of the taxes it collects to cover the costs of collecting and remitting sales and use taxes
89 to the commission] any amount under Subsection (2)(a).

90 (3) A person that has a tax liability under this chapter for the previous calendar year of
91 less than $50,000 may:
92 (a) voluntarily meet the requirements of Subsection (1); and
93 (b) if the person voluntarily meets the requirements of Subsection (1), retain the
94 amounts allowed by Subsection (2)(a).
95 (4) Penalties for late payment shall be as provided in Section 59-1-401 .
96 Section 2. Effective date.
97 This act takes effect on July 1, 2003.




Legislative Review Note
as of 1-29-03 5:42 PM

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

Office of Legislative Research and General Counsel