H.B. 297 Enrolled

1

CALCULATION OF CREDIT FOR CERTAIN
2 REPOSSESSIONS OF A MOTOR VEHICLE
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne A. Harper
6 Senate Sponsor: Wayne L. Niederhauser
7
8 LONG TITLE
9 General Description:
10 This bill amends the Sales and Use Tax Act relating to a credit for certain repossessions
11 of a motor vehicle.
12 Highlighted Provisions:
13 This bill:
14 . provides that the credit for certain repossessions of a motor vehicle may not be
15 reduced by any amount of a motor vehicle's unpaid purchase price that a seller
16 recovers as a result of reselling the vehicle, regardless of whether that amount is
17 included in calculating the credit; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill takes effect on July 1, 2007.
23 Utah Code Sections Affected:
24 AMENDS:
25 59-12-104.3, as last amended by Chapter 253, Laws of Utah 2006
26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 59-12-104.3 is amended to read:
29 59-12-104.3. Credit for certain repossessions of a motor vehicle.

30 (1) (a) Subject to Subsections (2) and (3), a seller that collects a tax under this chapter
31 on the sale of a motor vehicle may claim a credit for a tax under this chapter for a motor
32 vehicle that:
33 (i) has been repossessed; and
34 (ii) that the seller resells.
35 (b) A seller of a motor vehicle other than the seller that collects a tax under this chapter
36 on the sale of that motor vehicle may claim a credit for a tax under this chapter:
37 (i) for a motor vehicle that the seller:
38 (A) repossessed; and
39 (B) resells; and
40 (ii) if the seller that collected the tax under this chapter on that motor vehicle:
41 (A) is no longer doing business in this state; and
42 (B) does not owe a tax under this chapter.
43 (2) The amount of the credit allowed by Subsection (1) is equal to the product of:
44 (a) the portion of the motor vehicle's purchase price that:
45 (i) was subject to a tax under this chapter; and
46 (ii) remains unpaid after the motor vehicle is resold; and
47 (b) the tax rate:
48 (i) (A) for a seller that collects a tax in accordance with Subsection 59-12-107 (1)(b),
49 described in Subsection 59-12-103 (2)(b)(ii); or
50 (B) for a seller other than a seller described in Subsection (2)(b)(i)(A), described in
51 Subsection 59-12-103 (2)(a);
52 (ii) imposed on the motor vehicle's purchase price; and
53 (iii) imposed on the date the motor vehicle was purchased by the person that owns the
54 motor vehicle at the time of the repossession.
55 (3) [If] Except as provided in Subsection (4), if a seller recovers any portion of a motor
56 vehicle's unpaid purchase price that is used to calculate a credit allowed by Subsection (1)(b),
57 the seller shall report and remit a tax under this chapter to the commission:

58 (a) on the portion of the motor vehicle's unpaid purchase price that:
59 (i) the seller recovers; and
60 (ii) is used to calculate the credit allowed by Subsection (1)(b); and
61 (b) on a return filed for the time period for which the portion of the motor vehicle's
62 unpaid purchase price is recovered.
63 (4) A credit under this section may not be reduced by any amount of a motor vehicle's
64 unpaid purchase price that a seller recovers as a result of reselling the vehicle, regardless of
65 whether that amount is included in calculating a credit under this section.
66 Section 2. Effective date.
67 This bill takes effect on July 1, 2007.