H.B. 107

1

AMENDMENTS TO TAXES, FEES, OR
2 CHARGES
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Wayne A. Harper
6
7 LONG TITLE
8 General Description:
9 This bill amends the Revenue and Taxation title, the Repeal Dates part, and enacts
10 uncodified material.
11 Highlighted Provisions:
12 This bill:
13 . provides legislative intent regarding the implementation of certain provisions
14 enacted during the 2003 General Session, 2004 General Session, and 2004 Third
15 Special Session, relating to taxes, fees, and charges;
16 . addresses amnesty for sellers relating to certain taxes, fees, or charges;
17 . provides a repeal date for the legislative intent language;
18 . requires the Revenue and Taxation Interim Committee to conduct a study; and
19 . makes technical changes.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill takes effect on July 1, 2005.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-1-1201, as enacted by Chapter 1, Laws of Utah 2004, Third Special Session
27 59-12-121, as last amended by Chapter 1, Laws of Utah 2004, Third Special Session

28 63-55-259, as last amended by Chapter 1, Laws of Utah 2004, Third Special Session
29 Uncodified Material Affected:
30 ENACTS UNCODIFIED MATERIAL
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-1-1201 is amended to read:
34 Part 12. Legislative Intent
35 59-1-1201. Legislative intent.
36 It is the intent of the Legislature that the amendments, enactments, and repeals made by
37 Chapter 312, Laws of Utah 2003, take effect as provided in Chapter 312, Laws of Utah 2003,
38 and that the amendments, enactments, and repeals made by Chapter 255, Laws of Utah 2004,
39 take effect as provided in Chapter 255, Laws of Utah 2004, except that it is the intent of the
40 Legislature that:
41 [(1) (a) the amendments made by Section 7, Chapter 312, Laws of Utah 2003, and
42 Section 10, Chapter 255, Laws of Utah 2004, providing for the following definitions in Section
43 59-12-102 take effect on July 1, 2005:]
44 [(i) "drug";]
45 [(ii) "durable medical equipment";]
46 [(iii) "lease";]
47 [(iv) "mobility enhancing equipment";]
48 [(v) "prosthetic device";]
49 [(vi) "purchase price"];
50 [(vii) "rental"; and]
51 [(viii) "sales price"; and]
52 [(b) beginning on July 1, 2004, through June 30, 2005, the following definitions in
53 Section 59-12-102 that were deleted by Section 7, Chapter 312, Laws of Utah 2003, be
54 interpreted to be reinstated:]
55 [(i) "home medical equipment and supplies";]
56 [(ii) "medicine"; and]
57 [(iii) "purchase price";]
58 [(2)] (1) (a) the amendments made by Section 9, Chapter 312, Laws of Utah 2003, and

59 Section 11, Chapter 255, Laws of Utah 2004, to Section 59-12-103 take effect on July 1,
60 [2005] 2006, except that beginning on July 1, [2005] 2006, the dollar amount listed in
61 Subsection 59-12-103 (7)(b)(ii) in Section 11, Chapter 255, Laws of Utah 2004, shall be
62 changed from $8,779,673 to $7,279,673; and
63 (b) subject to any amendments made to Section 59-12-103 during the 2005 General
64 Session, 2006 General Session, or any special session of the Legislature that occurs on or
65 before June 30, 2006, beginning on July 1, 2004, through June 30, [2005] 2006, Section
66 59-12-103 shall read as provided in Section 2 [of this bill], Chapter 1, Laws of Utah 2004,
67 Third Special Session;
68 [(3) the following amendments take effect on July 1, 2005:]
69 [(a) the amendments made by Section 12, Chapter 312, Laws of Utah 2003, to:]
70 [(i) Subsection 59-12-104 (38) relating to sales or rentals of durable medical equipment
71 or supplies;]
72 [(ii) Subsection 59-12-104 (55) relating to sales or rentals of mobility enhancing
73 equipment; and]
74 [(iii) Subsection 59-12-104 (60) relating to sales of a prosthetic device; and]
75 [(b) the amendments made by Section 12, Chapter 312, Laws of Utah 2003, and
76 Section 13, Chapter 255, Laws of Utah 2004, to Subsection 59-12-104 (10) relating to:]
77 [(i) the deletion of the exemption for sales of medicine; and]
78 [(ii) the enactment of the exemption for amounts paid for a drug, syringe, or stoma
79 supply;]
80 [(4)] (2) the amendments made by Section 14, Chapter 255, Laws of Utah 2004, to the
81 following take effect on July 1, [2005] 2006:
82 (a) Subsection 59-12-105 (2) relating to reporting requirements for a seller that files a
83 simplified electronic return;
84 (b) Subsection 59-12-105 (3)(b) relating to a requirement that a seller that files a
85 simplified electronic return file the report required by Subsection 59-12-105 (2) electronically;
86 and
87 (c) Subsection 59-12-105 (5) relating to a penalty imposed on a seller that files a
88 simplified electronic return if the seller fails to report the amounts required by Subsection
89 59-12-105 (2);

90 [(5) (a)] (3) the amendments made by Section 15, Chapter 255, Laws of Utah 2004, to
91 Subsection 59-12-107 (5) relating to a tax collected by a seller that files a simplified electronic
92 return take effect on July 1, [2005] 2006; [and]
93 [(b) (i) the amendments made by Section 17, Chapter 312, Laws of Utah 2003, to
94 Subsection 59-12-107 (8) relating to bad debt take effect on July 1, 2005; and]
95 [(ii) beginning on July 1, 2004, through June 30, 2005, Subsection 59-12-107 (7)
96 relating to bad debt, which was deleted by Section 17, Chapter 312, Laws of Utah 2003, shall
97 be interpreted to be reinstated;]
98 [(6)] (4) the enactment of Section 59-12-107.1 relating to direct payment permits made
99 by Section 18, Chapter 312, Laws of Utah 2003, and the amendments to Section 59-12-107.1
100 relating to direct payment permits made by Section 16, Chapter 255, Laws of Utah 2004, take
101 effect on July 1, [2005] 2006;
102 [(7)] (5) the enactment of Section 59-12-107.2 relating to certain goods or services
103 concurrently available for use in more than one location made by Section 19, Chapter 312,
104 Laws of Utah 2003, and the amendments to Section 59-12-107.2 relating to certain goods or
105 services concurrently available for use in more than one location made by Section 17, Chapter
106 255, Laws of Utah 2004, take effect on July 1, [2005] 2006;
107 [(8)] (6) the enactment of Section 59-12-107.3 relating to the collection, remittance,
108 and payment of taxes on direct mail made by Section 20, Chapter 312, Laws of Utah 2003,
109 takes effect on July 1, [2005] 2006;
110 (7) the enactment of Section 59-12-122 , relating to a monetary allowance for a seller
111 registered under the Streamlined Sales and Use Tax Agreement made by Section 23, Chapter
112 255, Laws of Utah 2004, takes effect on July 1, 2006;
113 [(9)] (8) (a) the amendments made by Section 28, Chapter 312, Laws of Utah 2003, to
114 Section 59-12-204 take effect on July 1, [2005] 2006; and
115 (b) subject to any amendments made to Section 59-12-204 during the 2005 General
116 Session, 2006 General Session, or any special session of the Legislature that occurs on or
117 before June 30, 2006, beginning on July 1, 2004, through June 30, [2005] 2006, Section
118 59-12-204 shall read as provided in Section 5 [of this bill], Chapter 1, Laws of Utah 2004,
119 Third Special Session;
120 [(10)] (9) (a) the amendments made by Section 24, Chapter 255, Laws of Utah 2004, to

121 Section 59-12-205 take effect on July 1, [2005] 2006; and
122 (b) subject to any amendments made to Section 59-12-205 during the 2005 General
123 Session, 2006 General Session, or any special session of the Legislature that occurs on or
124 before June 30, 2006, beginning on July 1, 2004, through June 30, [2005] 2006, Section
125 59-12-205 shall read as provided in Section 6 [of this bill], Chapter 1, Laws of Utah 2004,
126 Third Special Session;
127 [(11)] (10) (a) the repeal of Section 59-12-207 relating to the reporting and
128 determination of the location of where a transaction is consummated made by Section 68,
129 Chapter 312, Laws of Utah 2003, takes effect on July 1, [2005] 2006; and
130 (b) subject to any amendments made to Section 59-12-207 during the 2005 General
131 Session, 2006 General Session, or any special session of the Legislature that occurs on or
132 before June 30, 2006, beginning on July 1, 2004, through June 30, [2005] 2006, Section
133 59-12-207 shall read as provided in Section 7 [of this bill], Chapter 1, Laws of Utah 2004,
134 Third Special Session;
135 [(12)] (11) the enactment of Section 59-12-207.1 relating to determining the location of
136 certain transactions, apportioning certain transactions, and making reports to the State Tax
137 Commission on those transactions made by Section 30, Chapter 312, Laws of Utah 2003, and
138 the amendments to Section 59-12-207.1 relating to determining the location of certain
139 transactions made by Section 25, Chapter 255, Laws of Utah 2004, take effect on July 1, [2005]
140 2006;
141 [(13)] (12) the enactment of Section 59-12-207.2 relating to determining the location of
142 a transaction involving the sale of a motor vehicle, aircraft, watercraft, modular home,
143 manufactured home, or mobile home made by Section 31, Chapter 312, Laws of Utah 2003,
144 takes effect on July 1, [2005] 2006;
145 [(14)] (13) the enactment of Section 59-12-207.3 relating to determining the location of
146 a transaction involving the lease or rental of certain tangible personal property made by Section
147 32, Chapter 312, Laws of Utah 2003, and the amendments to Section 59-12-207.3 relating to
148 determining the location of a transaction involving the lease or rental of certain tangible
149 personal property made by Section 26, Chapter 255, Laws of Utah 2004, take effect on July 1,
150 [2005] 2006; and
151 [(15)] (14) (a) beginning on July 1, 2004, through June 30, [2005] 2006, the following

152 subsections relating to prohibiting a sales and use tax from being imposed on any amounts paid
153 or charged by a vendor lacking certain contacts with the state, which were deleted by Chapter
154 312, Laws of Utah 2003 or Chapter 255, Laws of Utah 2004, shall be interpreted to be
155 reinstated, except that the term "vendor" shall be interpreted to be changed to "seller" in those
156 subsections:
157 (i) Subsection 59-12-401 (1)(b)(iv);
158 (ii) Subsection 59-12-402 (1)(b)(iv);
159 (iii) Subsection 59-12-501 (1)(a)(ii)(B);
160 (iv) Subsection 59-12-502 (1)(a)(ii)(B);
161 (v) Subsection 59-12-703 (1)(a)(ii)(B);
162 (vi) Subsection 59-12-802 (1)(b)(ii);
163 (vii) Subsection 59-12-804 (1)(b)(ii);
164 (viii) Subsection 59-12-1001 (1)(b)(ii);
165 (ix) Subsection 59-12-1302 (4)(b);
166 (x) Subsection 59-12-1402 (1)(a)(ii)(C); and
167 (xi) Subsection 59-12-1503 (1)(b)(ii);
168 (b) beginning on July 1, 2004, through June 30, [2005] 2006, Subsection
169 59-12-1102 (1)(a)(ii)(B) relating to prohibiting a sales and use tax from being imposed on any
170 amounts paid or charged by a vendor lacking certain contacts with the state unless all of the
171 counties in the state impose a tax under Section 59-12-1102 , which was deleted by Section 62,
172 Chapter 312, Laws of Utah 2003, shall be interpreted to be reinstated, except that the term
173 "vendor" shall be interpreted to be changed to "seller" in that subsection;
174 (c) the following subsections relating to determining the location of a transaction,
175 which were enacted by Chapter 312, Laws of Utah 2003 or Chapter 255, Laws of Utah 2004,
176 shall take effect on July 1, [2005] 2006:
177 (i) Subsection 59-12-401 (1)(c);
178 (ii) Subsection 59-12-402 (1)(c);
179 (iii) Subsection 59-12-501 (1)(b);
180 (iv) Subsection 59-12-502 (1)(b);
181 (v) Subsection 59-12-703 (1)(b);
182 (vi) Subsection 59-12-802 (1)(c);

183 (vii) Subsection 59-12-804 (1)(c);
184 (viii) Subsection 59-12-1001 (1)(c);
185 (ix) Subsection 59-12-1102 (1)(b);
186 (x) Subsection 59-12-1302 (4)(b);
187 (xi) Subsection 59-12-1402 (1)(b); and
188 (xii) Subsection 59-12-1503(1)(c); and
189 (d) beginning on July 1, 2004, through June 30, [2005] 2006, the following language
190 shall be interpreted to be added as Subsection 59-12-1102 (3)(e): "(e) Notwithstanding
191 Subsections (3)(a) and (b), if a county imposes a tax under this section on any amounts paid or
192 charged by a seller that collects a tax in accordance with Subsection 59-12-107 (1)(b), the
193 revenues generated by the tax shall be distributed as provided in Subsection 59-12-103 (3)(c).".
194 Section 2. Section 59-12-121 is amended to read:
195 59-12-121. Amnesty.
196 (1) As used in this section, "amnesty" means that a seller is not required to pay the
197 following amounts that the seller would otherwise be required to pay:
198 (a) a tax, fee, or charge under:
199 (i) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
200 (ii) Section 19-6-714 ;
201 (iii) Section 19-6-805 ;
202 (iv) Section 69-2-5.5 ; or
203 (v) this chapter;
204 (b) a penalty on a tax, fee, or charge described in Subsection (1)(a); or
205 (c) interest on a tax, fee, or charge described in Subsection (1)(a).
206 (2) The commission shall grant a seller amnesty under this section if:
207 (a) the seller was not licensed under Section 59-12-106 at any time during the
208 12-month period prior to July 1, [2005] 2006;
209 (b) the seller obtains a license under Section 59-12-106 within a 12-month period
210 beginning on July 1, [2005] 2006; and
211 (c) the seller is registered under the agreement within a 12-month period beginning on
212 July 1, [2005] 2006.
213 (3) A seller may not receive amnesty under this section for a tax, fee, or charge:

214 (a) collected by the seller;
215 (b) remitted to the commission by the seller;
216 (c) that the seller is required to remit to the commission on the seller's purchases; or
217 (d) arising from a transaction that occurred within a time period that is under audit by
218 the commission if:
219 (i) the seller has received notice of the commencement of an audit prior to obtaining a
220 license under Section 59-12-106 ; and
221 (ii) (A) the audit described in Subsection (3)(d)(i) has not been completed; or
222 (B) the seller has not exhausted all administrative and judicial remedies in connection
223 with the audit described in Subsection (3)(d)(i).
224 (4) (a) Except as provided in Subsection (4)(b), amnesty granted to a seller by the
225 commission under this section:
226 (i) applies to the time period during which a seller was not licensed under Section
227 59-12-106 ; and
228 (ii) remains in effect if, for a period of three years, the seller:
229 (A) remains registered under the agreement;
230 (B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge
231 described in Subsection (1)(a); and
232 (C) remits to the commission all taxes, fees, or charges described in Subsection
233 (4)(a)(ii).
234 (b) Notwithstanding Subsection (4)(a), a seller may not be granted amnesty under this
235 section if with respect to a tax, fee, or charge for which the seller would otherwise be granted
236 amnesty under this section, the seller commits:
237 (i) fraud; or
238 (ii) an intentional misrepresentation of a material fact.
239 (5) (a) If a seller does not meet the requirements of Subsection (4)(a)(ii), the
240 commission shall require the seller to pay the amounts described in Subsection (1) that the
241 seller would have otherwise been required to pay.
242 (b) Notwithstanding Section 59-12-110 , and for purposes of requiring a seller to pay an
243 amount described in Subsection (5)(a), the time period for the commission to make an
244 assessment under Section 59-12-110 shall be extended for an additional three years.

245 Section 3. Section 63-55-259 is amended to read:
246 63-55-259. Repeal dates, Title 59.
247 (1) Title 59, Chapter 1, Part 12, Legislative Intent, is repealed July 1, [2005] 2006.
248 (2) Section 59-10-530.5 , Homeless Trust Account, is repealed July 1, 2007.
249 Section 4. Revenue and Taxation Interim Committee study.
250 During the 2005 interim, the State Tax Commission shall report to the Legislative
251 Management Committee regarding whether to request the governor to call a special session of
252 the Legislature if the State Tax Commission recommends that the Legislature enact an earlier
253 effective date for the provisions of this bill that take effect on July 1, 2006, as a result of:
254 (1) the existence of appropriate software; or
255 (2) amendments to the Streamlined Sales and Use Tax Agreement.
256 Section 5. Effective date.
257 This bill takes effect on July 1, 2005.




Legislative Review Note
as of 2-14-05 4:45 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel