H.B. 220

1

ITEMIZING SALES AND USE TAX RATES
2 2003 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Glenn A. Donnelson
5 This act modifies the Sales and Use Tax Act to require vendors that collect sales or use
6 tax to provide the purchaser an itemized receipt indicating the taxing jurisdictions that
7 impose the sales or use tax. This act provides an effective date of July 1, 2003.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 59-12-107, as last amended by Chapter 104, Laws of Utah 2001
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 59-12-107 is amended to read:
13 59-12-107. Collection, remittance, and payment of tax by vendors or other
14 persons -- Returns -- Direct payment by purchaser of vehicle -- Other liability for
15 collection -- Credits -- Deposit and sale of security -- Penalties.
16 (1) (a) Each vendor shall pay or collect and remit the sales and use taxes imposed by
17 this chapter if within this state the vendor:
18 (i) has or utilizes:
19 (A) an office;
20 (B) a distribution house;
21 (C) a sales house;
22 (D) a warehouse;
23 (E) a service enterprise; or
24 (F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
25 (ii) maintains a stock of goods;
26 (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
27 state, unless the vendor's only activity in the state is:

28 (A) advertising; or
29 (B) solicitation by:
30 (I) direct mail;
31 (II) electronic mail;
32 (III) the Internet;
33 (IV) telephone; or
34 (V) a means similar to Subsections (1)(a)(iii)(A) or (B);
35 (iv) regularly engages in the delivery of property in the state other than by:
36 (A) common carrier; or
37 (B) United States mail; or
38 (v) regularly engages in an activity directly related to the leasing or servicing of
39 property located within the state.
40 (b) If a vendor does not meet one or more of the criteria provided for in Subsection
41 (1)(a), the vendor:
42 (i) except as provided in Subsection (1)(b)(ii), may voluntarily:
43 (A) collect a tax as provided in Subsection 59-12-103 (2)(c) on a transaction described
44 in Subsection 59-12-103 (1); and
45 (B) remit the tax to the commission as provided in this part; or
46 (ii) notwithstanding Subsection (1)(b)(i), shall collect a tax as provided in Subsection
47 59-12-103 (2)(c) on a transaction described in Subsection 59-12-103 (1) if Section 59-12-103.1
48 requires the vendor to collect the tax.
49 (c) A person shall pay a use tax imposed by this chapter on a transaction described in
50 Subsection 59-12-103 (1) if:
51 (i) the vendor did not collect a use tax imposed by this chapter on the transaction; and
52 (ii) the person:
53 (A) stores the tangible personal property in the state;
54 (B) uses the tangible personal property in the state; or
55 (C) consumes the tangible personal property in the state.
56 (d) Notwithstanding the provisions of Subsection (1)(a), the ownership of property that
57 is located at the premises of a printer's facility with which the retailer has contracted for
58 printing and that consists of the final printed product, property that becomes a part of the final

59 printed product, or copy from which the printed product is produced, shall not result in the
60 retailer being considered to have or maintain an office, distribution house, sales house,
61 warehouse, service enterprise, or other place of business, or to maintain a stock of goods,
62 within this state.
63 (2) (a) Each vendor shall collect the sales or use tax from the purchaser.
64 (b) A vendor may not collect as tax an amount, without regard to fractional parts of one
65 cent, in excess of the tax computed at the rates prescribed by this chapter.
66 (c) (i) Each vendor shall:
67 (A) give the purchaser a receipt for the use tax collected; or
68 (B) bill the use tax as a separate item and declare the name of this state and the
69 vendor's use tax license number on the invoice for the sale.
70 (ii) The receipt or invoice is prima facie evidence that the vendor has collected the use
71 tax and relieves the purchaser of the liability for reporting the use tax to the commission as a
72 consumer.
73 (d) (i) In accordance with Subsection (2)(d)(ii), each vendor that collects sales or use
74 tax under this chapter shall give the purchaser a receipt itemizing the sales or use tax collected
75 by the vendor.
76 (ii) The receipt described in Subsection (2)(d)(i) shall list as separate items the amounts
77 collected under each tax imposed by this chapter.
78 (iii) This Subsection (2)(d) applies only to a vendor that prints receipts electronically.
79 (iv) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
80 the commission may make rules defining receipts that are printed electronically.
81 [(d)] (e) A vendor is not required to maintain a separate account for the tax collected,
82 but is considered to be a person charged with receipt, safekeeping, and transfer of public
83 moneys.
84 [(e)] (f) Taxes collected by a vendor pursuant to this chapter shall be held in trust for
85 the benefit of the state and for payment to the commission in the manner and at the time
86 provided for in this chapter.
87 [(f)] (g) If any vendor, during any reporting period, collects as a tax an amount in
88 excess of the lawful state and local percentage of total taxable sales allowed under this part and
89 Part 2, Local Sales and Use Tax Act, the vendor shall remit to the commission the full amount

90 of the tax imposed under this part and Part 2, Local Sales and Use Tax Act, plus any excess.
91 [(g)] (h) If the accounting methods regularly employed by the vendor in the transaction
92 of the vendor's business are such that reports of sales made during a calendar month or
93 quarterly period will impose unnecessary hardships, the commission may accept reports at
94 intervals that will, in its opinion, better suit the convenience of the taxpayer or vendor and will
95 not jeopardize collection of the tax.
96 (3) (a) Except as provided in Subsection (4) and in Section 59-12-108 , the sales or use
97 tax imposed by this chapter is due and payable to the commission quarterly on or before the
98 last day of the month next succeeding each calendar quarterly period.
99 (b) (i) Each vendor shall, on or before the last day of the month next succeeding each
100 calendar quarterly period, file with the commission a return for the preceding quarterly period.
101 (ii) The vendor shall remit with the return under Subsection (3)(b)(i) the amount of the
102 tax required under this chapter to be collected or paid for the period covered by the return.
103 (c) Each return shall contain information and be in a form the commission prescribes
104 by rule.
105 (d) The sales tax as computed in the return shall be based upon the total nonexempt
106 sales made during the period, including both cash and charge sales.
107 (e) The use tax as computed in the return shall be based upon the total amount of sales
108 or purchases for storage, use, or other consumption in this state made during the period,
109 including both by cash and by charge.
110 (f) The commission may by rule extend the time for making returns and paying the
111 taxes. No extension may be for more than 90 days.
112 (g) The commission may require returns and payment of the tax to be made for other
113 than quarterly periods if it considers it necessary in order to ensure the payment of the tax
114 imposed by this chapter.
115 (4) On each vehicle sale made by other than a regular licensed vehicle dealer, the
116 purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
117 titling or registration under the laws of this state. The commission shall collect the tax when
118 the vehicle is titled or registered.
119 (5) If any sale of tangible personal property or any other taxable transaction under
120 Subsection 59-12-103 (1), is made by a wholesaler to a retailer, the wholesaler is not

121 responsible for the collection or payment of the tax imposed on the sale if the retailer
122 represents that the personal property is purchased by the retailer for resale and the personal
123 property thereafter is not resold. Instead, the retailer is solely liable for the tax.
124 (6) If any sale of property or service subject to the tax is made to a person prepaying
125 sales or use tax in accordance with Title 63, Chapter 51, Resource Development, or to a
126 contractor or subcontractor of that person, the person to whom such payment or consideration
127 is payable is not responsible for the collection or payment of the sales or use tax if the person
128 prepaying the sales or use tax represents that the amount prepaid as sales or use tax has not
129 been fully credited against sales or use tax due and payable under the rules promulgated by the
130 commission. Instead, the person prepaying the sales or use tax is solely liable for the tax.
131 (7) Credit is allowed for prepaid taxes and for taxes paid on that portion of an account
132 determined to be worthless and actually charged off for income tax purposes or on the portion
133 of the purchase price remaining unpaid at the time of a repossession made under the terms of a
134 conditional sales contract.
135 (8) (a) The commission may require any person subject to the tax imposed under this
136 chapter to deposit with it security as the commission determines, if the commission considers it
137 necessary to ensure compliance with this chapter.
138 (b) The commission may sell the security at public sale if it becomes necessary to do so
139 in order to recover any tax, interest, or penalty due.
140 (c) (i) The commission shall serve notice of the sale upon the person who deposited the
141 securities.
142 (ii) Notice under Subsection (8)(c)(i) sent to the last-known address as it appears in the
143 records of the commission is sufficient for the purposes of this requirement.
144 (d) The commission shall return to the person who deposited the security any amount
145 of the sale proceeds that exceed the amounts due under this chapter.
146 (9) (a) A vendor may not, with intent to evade any tax, fail to timely remit the full
147 amount of tax required by this chapter.
148 (b) A violation of this section is punishable as provided in Section 59-1-401 .
149 (c) Each person who fails to pay any tax to the state or any amount of tax required to be
150 paid to the state, except amounts determined to be due by the commission under Sections
151 59-12-110 and 59-12-111 , within the time required by this chapter, or who fails to file any

152 return as required by this chapter, shall pay, in addition to the tax, penalties and interest as
153 provided in Section 59-12-110 .
154 (d) For purposes of prosecution under this section, each quarterly tax period in which a
155 vendor, with intent to evade any tax, collects a tax and fails to timely remit the full amount of
156 the tax required to be remitted, constitutes a separate offense.
157 Section 2. Effective date.
158 This act takes effect on July 1, 2003.




Legislative Review Note
as of 1-7-03 3:14 PM

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

Office of Legislative Research and General Counsel