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S.B. 108 Enrolled

             1     

TAX COMMISSION ADMINISTRATION,

             2     
COLLECTION, AND ENFORCEMENT

             3     
AMENDMENTS

             4     
2009 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Wayne L. Niederhauser

             7     
House Sponsor: Todd E. Kiser

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies provisions related to the administration, collection, and enforcement
             12      of certain taxes, fees, and charges by the State Tax Commission.
             13      Highlighted Provisions:
             14          This bill:
             15          .    addresses the administration, collection, and enforcement of certain taxes, fees, and
             16      charges by the State Tax Commission;
             17          .    defines terms;
             18          .    addresses penalties and interest on a tax, fee, or charge;
             19          .    addresses the procedure for obtaining a redetermination of a deficiency;
             20          .    addresses general collection procedures by the State Tax Commission;
             21          .    addresses mailing procedures for the State Tax Commission or a person required to
             22      mail certain documents to the State Tax Commission;
             23          .    addresses record retention requirements for a person subject to a tax, fee, or charge;
             24          .    enacts provisions related to the assessment, collection, and refund of a tax, fee, or
             25      charge, including:
             26              .    providing general collection authority;
             27              .    providing exceptions to the provisions;
             28              .    allowing for the State Tax Commission to make rules establishing collection
             29      procedures;


             30              .    addressing notice requirements for the State Tax Commission;
             31              .    providing for an objection to a notice of deficiency;
             32              .    requiring the State Tax Commission to estimate a tax, fee, or charge, if a person
             33      fails to file a return;
             34              .    addressing mathematical errors;
             35              .    addressing assessments of a tax, fee, or charge;
             36              .    providing for recomputation of amounts due;
             37              .    addressing actions for the collection of a tax, fee, or charge;
             38              .    addressing the time period for assessing a tax, fee, or charge;
             39              .    addressing credits and refunds;
             40              .    addressing notice and demand for an unpaid liability;
             41              .    addressing notices to a third party relating to a delinquency in the payment of a
             42      liability;
             43              .    addressing a lien related to the payment of a liability;
             44              .    addressing a notice of a lien;
             45              .    addressing a warrant;
             46              .    addressing a levy for an unpaid liability;
             47              .    addressing a transferee obligated for the payment of a liability of a person that
             48      originally owes the liability;
             49              .    addressing burden of proof;
             50              .    addressing statutes of limitations;
             51              .    addressing venue; and
             52              .    addressing miscellaneous provisions;
             53          .    addresses overpayments, credits, and refunds in relation to certain taxes;
             54          .    addresses State Tax Commission rulemaking authority;
             55          .    addresses assessments and collections in relation to income taxes;
             56          .    addresses income tax return filing requirements;
             57          .    addresses powers and duties of the State Tax Commission;


             58          .    addresses State Tax Commission collection, administration, and enforcement
             59      authority in relation to the emergency services telephone charge to fund the Utah
             60      Poison Control Center; and
             61          .    makes technical changes.
             62      Monies Appropriated in this Bill:
             63          None
             64      Other Special Clauses:
             65          None
             66      Utah Code Sections Affected:
             67      AMENDS:
             68          10-1-307, as last amended by Laws of Utah 2008, Chapter 384
             69          10-1-405, as last amended by Laws of Utah 2008, Chapters 382 and 384
             70          19-6-410.5, as last amended by Laws of Utah 2008, Chapter 382
             71          34A-2-202, as last amended by Laws of Utah 2006, Chapter 275
             72          38-12-101, as last amended by Laws of Utah 1998, Chapter 327
             73          59-1-101, as enacted by Laws of Utah 1987, Chapter 3
             74          59-1-302, as last amended by Laws of Utah 2008, Chapter 382
             75          59-1-401, as last amended by Laws of Utah 2008, Chapter 382
             76          59-1-501, as last amended by Laws of Utah 1987, Chapter 161
             77          59-1-703, as last amended by Laws of Utah 2001, Chapter 9
             78          59-6-104, as last amended by Laws of Utah 2008, Chapter 382
             79          59-7-519, as last amended by Laws of Utah 2000, Chapter 86
             80          59-7-522, as last amended by Laws of Utah 1998, Chapter 299
             81          59-10-501, as renumbered and amended by Laws of Utah 1987, Chapter 2
             82          59-10-505, as renumbered and amended by Laws of Utah 1987, Chapter 2
             83          59-10-510, as renumbered and amended by Laws of Utah 1987, Chapter 2
             84          59-10-529, as last amended by Laws of Utah 2007, Chapter 326
             85          59-10-531, as last amended by Laws of Utah 1987, Chapter 161


             86          59-10-536, as renumbered and amended by Laws of Utah 1987, Chapter 2
             87          59-10-537, as last amended by Laws of Utah 1994, Chapter 138
             88          59-10-539, as last amended by Laws of Utah 1993, Second Special Session, Chapter 1
             89          59-10-544, as last amended by Laws of Utah 2007, Chapter 122
             90          59-11-113, as last amended by Laws of Utah 2008, Chapter 382
             91          59-12-104, as last amended by Laws of Utah 2008, Second Special Session, Chapter 2
             92          59-12-107, as last amended by Laws of Utah 2008, Chapters 7, 382, and 384
             93          59-12-110, as last amended by Laws of Utah 2008, Chapters 382 and 384
             94          59-12-110.1, as last amended by Laws of Utah 2008, Chapter 384
             95          59-12-111, as last amended by Laws of Utah 2001, Chapter 9
             96          59-12-128, as enacted by Laws of Utah 2008, Chapter 384
             97          59-12-209, as last amended by Laws of Utah 2008, Chapter 382
             98          59-13-209, as last amended by Laws of Utah 2005, Chapter 198
             99          59-13-210, as last amended by Laws of Utah 1998, Chapter 299
             100          59-13-211, as enacted by Laws of Utah 1987, Chapter 6
             101          59-13-312, as last amended by Laws of Utah 1997, Chapter 271
             102          59-13-313, as last amended by Laws of Utah 2000, Chapter 86
             103          59-13-318, as last amended by Laws of Utah 1998, Chapter 299
             104          59-14-205, as last amended by Laws of Utah 2007, Chapter 6
             105          62A-11-304.1, as last amended by Laws of Utah 2008, Chapter 382
             106          69-2-5.5, as last amended by Laws of Utah 2008, Chapter 384
             107      ENACTS:
             108          59-1-1401, Utah Code Annotated 1953
             109          59-1-1402, Utah Code Annotated 1953
             110          59-1-1403, Utah Code Annotated 1953
             111          59-1-1404, Utah Code Annotated 1953
             112          59-1-1405, Utah Code Annotated 1953
             113          59-1-1406, Utah Code Annotated 1953


             114          59-1-1407, Utah Code Annotated 1953
             115          59-1-1408, Utah Code Annotated 1953
             116          59-1-1409, Utah Code Annotated 1953
             117          59-1-1410, Utah Code Annotated 1953
             118          59-1-1411, Utah Code Annotated 1953
             119          59-1-1412, Utah Code Annotated 1953
             120          59-1-1413, Utah Code Annotated 1953
             121          59-1-1414, Utah Code Annotated 1953
             122          59-1-1415, Utah Code Annotated 1953
             123          59-1-1416, Utah Code Annotated 1953
             124          59-1-1417, Utah Code Annotated 1953
             125          59-1-1418, Utah Code Annotated 1953
             126          59-1-1419, Utah Code Annotated 1953
             127      REPEALS:
             128          59-1-302.1, as enacted by Laws of Utah 1994, Chapter 107
             129          59-1-706, as renumbered and amended by Laws of Utah 1987, Chapter 3
             130          59-5-105, as last amended by Laws of Utah 1988, Chapter 4
             131          59-5-112, as repealed and reenacted by Laws of Utah 1988, Chapter 4
             132          59-5-113, as repealed and reenacted by Laws of Utah 1988, Chapter 4
             133          59-5-205, as enacted by Laws of Utah 1988, Chapter 4
             134          59-5-212, as enacted by Laws of Utah 1988, Chapter 4
             135          59-5-213, as enacted by Laws of Utah 1988, Chapter 4
             136          59-5-214, as last amended by Laws of Utah 1998, Chapter 299
             137          59-7-506, as renumbered and amended by Laws of Utah 1993, Chapter 169
             138          59-7-516, as renumbered and amended by Laws of Utah 1993, Chapter 169
             139          59-7-517, as renumbered and amended by Laws of Utah 1993, Chapter 169
             140          59-7-518, as last amended by Laws of Utah 2000, Chapter 86
             141          59-7-520, as renumbered and amended by Laws of Utah 1993, Chapter 169


             142          59-7-521, as last amended by Laws of Utah 2000, Chapter 86
             143          59-7-523, as renumbered and amended by Laws of Utah 1993, Chapter 169
             144          59-7-524, as renumbered and amended by Laws of Utah 1993, Chapter 169
             145          59-7-525, as renumbered and amended by Laws of Utah 1993, Chapter 169
             146          59-7-526, as renumbered and amended by Laws of Utah 1993, Chapter 169
             147          59-7-527, as renumbered and amended by Laws of Utah 1993, Chapter 169
             148          59-9-106, as last amended by Laws of Utah 1998, Chapter 299
             149          59-10-506, as renumbered and amended by Laws of Utah 1987, Chapter 2
             150          59-10-521, as renumbered and amended by Laws of Utah 1987, Chapter 2
             151          59-10-523, as renumbered and amended by Laws of Utah 1987, Chapter 2
             152          59-10-524, as last amended by Laws of Utah 2000, Chapter 86
             153          59-10-525, as renumbered and amended by Laws of Utah 1987, Chapter 2
             154          59-10-526, as renumbered and amended by Laws of Utah 1987, Chapter 2
             155          59-10-528, as renumbered and amended by Laws of Utah 1987, Chapter 2
             156          59-10-532, as last amended by Laws of Utah 1987, Chapter 161
             157          59-10-533, as last amended by Laws of Utah 1987, Chapter 161
             158          59-10-535, as last amended by Laws of Utah 1987, Chapter 161
             159          59-10-540, as last amended by Laws of Utah 2006, Chapter 55
             160          59-10-542, as renumbered and amended by Laws of Utah 1987, Chapter 2
             161          59-10-543, as renumbered and amended by Laws of Utah 1987, Chapter 2
             162          59-12-113, as last amended by Laws of Utah 2003, Chapter 312
             163          59-12-114, as last amended by Laws of Utah 2008, Chapter 382
             164          59-12-115, as last amended by Laws of Utah 2003, Chapter 312
             165          59-13-316, as last amended by Laws of Utah 2000, Chapter 86
             166          59-13-317, as last amended by Laws of Utah 1997, Chapter 271
             167          59-14-405, as last amended by Laws of Utah 1993, Chapter 169
             168          59-15-103, as last amended by Laws of Utah 1998, Chapter 299
             169          59-23-6, as last amended by Laws of Utah 1998, Chapter 299


             170          59-24-107, as enacted by Laws of Utah 2001, Chapter 314
             171          59-25-107, as enacted by Laws of Utah 2003, Chapter 295
             172          59-26-107, as enacted by Laws of Utah 2004, Chapter 300
             173          59-27-107, as enacted by Laws of Utah 2004, Chapter 214
             174     
             175      Be it enacted by the Legislature of the state of Utah:
             176          Section 1. Section 10-1-307 is amended to read:
             177           10-1-307. Administration, collection, and enforcement of taxes by commission --
             178      Distribution of revenues -- Charge for services -- Collection of taxes by municipality.
             179          (1) Except as provided in Subsection (3), the commission shall administer, collect, and
             180      enforce[, and administer] the municipal energy sales and use tax from energy suppliers
             181      according to the procedures established in:
             182          (a) Title 59, Chapter 1, General Taxation Policies; and
             183          (b) Title 59, Chapter 12, Part 1, Tax Collection, except for Sections 59-12-107.1 and
             184      59-12-123 .
             185          (2) (a) Except as provided in Subsections 10-1-203 (3)(d), 10-1-305 (5), and
             186      10-1-310 (2) and subject to Subsection (6), the commission shall pay a municipality the
             187      difference between:
             188          (i) the entire amount collected by the commission from the municipal energy sales and
             189      use tax authorized by this part based on:
             190          (A) the point of sale of the taxable energy if a taxable sale occurs in a municipality
             191      that imposes a municipal energy sales and use tax as provided in this part; or
             192          (B) the point of use of the taxable energy if the use occurs in a municipality that
             193      imposes a municipal energy sales and use tax as provided in this part; and
             194          (ii) the administration fee charged in accordance with Subsection (2)(c).
             195          (b) In accordance with Subsection (2)(a), the commission shall transfer to the
             196      municipality monthly by electronic transfer the revenues generated by the municipal energy
             197      sales and use tax levied by the municipality and collected by the commission.


             198          (c) (i) The commission shall charge a municipality imposing a municipal energy sales
             199      and use tax a fee for administering the tax at the percentage provided in Section 59-12-206 ,
             200      except that the commission may not charge a fee for taxes collected by a municipality under
             201      Subsection (3).
             202          (ii) The fee charged under Subsection (2)(c)(i) shall be:
             203          (A) deposited in the Sales and Use Tax Administrative Fees Account; and
             204          (B) used for sales tax administration as provided in Subsection 59-12-206 (2).
             205          (3) An energy supplier shall pay the municipal energy sales and use tax revenues it
             206      collects from its customers under this part directly to each municipality in which the energy
             207      supplier has sales of taxable energy if:
             208          (a) the municipality is the energy supplier; or
             209          (b) (i) the energy supplier estimates that the municipal energy sales and use tax
             210      collected annually by the energy supplier from its Utah customers equals $1,000,000 or more;
             211      and
             212          (ii) the energy supplier collects the tax imposed by this part.
             213          (4) An energy supplier paying a tax under this part directly to a municipality may
             214      retain the percentage of the tax authorized under Subsection 59-12-108 (2) for the energy
             215      supplier's costs of collecting and remitting the tax.
             216          (5) An energy supplier paying the tax under this part directly to a municipality shall
             217      file an information return with the commission, at least annually, on a form prescribed by the
             218      commission.
             219          (6) (a) As used in this Subsection (6):
             220          (i) "2005 base amount" means, for a municipality that imposes a municipal energy
             221      sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid
             222      to the municipality for fiscal year 2005.
             223          (ii) "2006 base amount" means, for a municipality that imposes a municipal energy
             224      sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid
             225      to the municipality for fiscal year 2006, reduced by the 2006 rebate amount.


             226          (iii) "2006 rebate amount" means, for a municipality that imposes a municipal energy
             227      sales and use tax, the difference between:
             228          (A) the natural gas portion of municipal energy sales and use tax proceeds paid to the
             229      municipality for fiscal year 2006; and
             230          (B) the 2005 base amount, plus:
             231          (I) 10% of the 2005 base amount; and
             232          (II) the natural gas portion of municipal energy sales and use tax proceeds paid to the
             233      municipality for fiscal year 2006 attributable to an increase in the rate of the municipal energy
             234      sales and use tax implemented by the municipality during fiscal year 2006.
             235          (iv) "2007 rebate amount" means, for a municipality that imposes a municipal energy
             236      sales and use tax, the difference between:
             237          (A) the natural gas portion of municipal energy sales and use tax proceeds paid to the
             238      municipality for fiscal year 2007; and
             239          (B) the 2006 base amount, plus:
             240          (I) 10% of the 2006 base amount; and
             241          (II) the natural gas portion of municipal energy sales and use tax proceeds paid to the
             242      municipality for fiscal year 2007 attributable to an increase in the rate of the municipal energy
             243      sales and use tax implemented by the municipality during fiscal year 2007.
             244          (v) "Fiscal year 2005" means the period beginning July 1, 2004 and ending June 30,
             245      2005.
             246          (vi) "Fiscal year 2006" means the period beginning July 1, 2005 and ending June 30,
             247      2006.
             248          (vii) "Fiscal year 2007" means the period beginning July 1, 2006 and ending June 30,
             249      2007.
             250          (viii) "Gas supplier" means an energy supplier that supplies natural gas.
             251          (ix) "Natural gas portion" means the amount of municipal energy sales and use tax
             252      proceeds attributable to sales and uses of natural gas.
             253          (b) (i) In December 2006, each gas supplier shall reduce the natural gas portion of


             254      municipal energy sales and use gas proceeds to be paid to a municipality by the 2006 rebate
             255      amount.
             256          (ii) If the 2006 rebate amount exceeds the amount of the natural gas portion of
             257      municipal energy sales and use tax proceeds for December 2006, the gas supplier shall reduce
             258      the natural gas portion of municipal energy sales and use tax proceeds to be paid to a
             259      municipality each month thereafter until the 2006 rebate amount is exhausted.
             260          (iii) For December 2006 and for each month thereafter that the gas supplier is required
             261      under Subsection (6)(b)(ii) to reduce the natural gas portion of municipal energy sales and use
             262      tax proceeds to be paid to a municipality:
             263          (A) each municipality imposing a municipal energy sales and use tax shall provide the
             264      gas supplier with the amount by which its municipal energy sales and use tax rate applicable
             265      to the sales and uses of natural gas would need to be reduced in order to reduce the natural gas
             266      portion of municipal energy sales and use tax proceeds by the same amount as the reduction to
             267      the municipality; and
             268          (B) each gas supplier shall reduce the municipal energy sales and use tax rate
             269      applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by
             270      the municipality.
             271          (c) (i) In December 2007, each gas supplier shall reduce the natural gas portion of
             272      municipal energy sales and use tax proceeds to be paid to a municipality by the 2007 rebate
             273      amount.
             274          (ii) If the 2007 rebate amount exceeds the amount of the natural gas portion of
             275      municipal energy sales and use tax proceeds for December 2007, the gas supplier shall reduce
             276      the natural gas portion of municipal energy sales and use tax proceeds to be paid to a
             277      municipality each month thereafter until the 2007 rebate amount is exhausted.
             278          (iii) For December 2007 and for each month thereafter that the gas supplier is required
             279      under Subsection (6)(c)(ii) to reduce the natural gas portion of municipal energy sales and use
             280      tax proceeds to be paid to a municipality:
             281          (A) each municipality imposing a municipal energy sales and use tax shall provide the


             282      gas supplier with the amount by which its municipal energy sales and use tax rate applicable
             283      to the sales and uses of natural gas would need to be reduced in order to reduce the natural gas
             284      portion of municipal energy sales and use tax proceeds by the same amount as the reduction to
             285      the municipality; and
             286          (B) each gas supplier shall reduce the municipal energy sales and use tax rate
             287      applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by
             288      the municipality.
             289          (d) Nothing in this Subsection (6) may be construed to require a reduction under
             290      Subsection (6)(b) or (c) if the rebate amount is zero or negative.
             291          Section 2. Section 10-1-405 is amended to read:
             292           10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
             293      Rulemaking authority -- Charge for services.
             294          (1) Subject to the other provisions of this section, the commission shall collect,
             295      enforce, and administer any municipal telecommunications license tax imposed under this part
             296      pursuant to:
             297          (a) the same procedures used in the administration, collection, and enforcement of the
             298      state sales and use tax under:
             299          (i) Title 59, Chapter 1, General Taxation Policies; and
             300          (ii) Title 59, Chapter 12, Part 1, Tax Collection:
             301          (A) except for:
             302          (I) Subsection 59-12-103 (2)(g);
             303          (II) Section 59-12-104 ;
             304          (III) Section 59-12-104.1 ;
             305          (IV) Section 59-12-104.2 ;
             306          (V) Section 59-12-104.3 ;
             307          (VI) Section 59-12-107.1 ; and
             308          (VII) Section 59-12-123 ; and
             309          (B) except that for purposes of Section [ 59-12-110 ] 59-1-1410 , the term "[taxpayer]


             310      person" may include a customer from whom a municipal telecommunications license tax is
             311      recovered in accordance with Subsection 10-1-403 (2); and
             312          (b) a uniform interlocal agreement:
             313          (i) between:
             314          (A) the municipality that imposes the municipal telecommunications license tax; and
             315          (B) the commission;
             316          (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             317          (iii) that complies with Subsection (2)(a); and
             318          (iv) that is developed by rule in accordance with Subsection (2)(b).
             319          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             320      the commission shall:
             321          (i) transmit monies collected under this part:
             322          (A) monthly; and
             323          (B) by electronic funds transfer by the commission to the municipality;
             324          (ii) conduct audits of the municipal telecommunications license tax;
             325          (iii) charge the municipality for the commission's services under this section in an
             326      amount:
             327          (A) sufficient to reimburse the commission for the cost to the commission in rendering
             328      the services; and
             329          (B) that may not exceed an amount equal to 1.5% of the municipal
             330      telecommunications license tax imposed by the ordinance of the municipality; and
             331          (iv) collect, enforce, and administer the municipal telecommunications license tax
             332      authorized under this part pursuant to the same procedures used in the administration,
             333      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             334          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             335      the commission shall develop a uniform interlocal agreement that meets the requirements of
             336      this section.
             337          (3) The administrative fee charged under Subsection (2)(a) shall be:


             338          (a) deposited in the Sales and Use Tax Administrative Fees Account; and
             339          (b) used for administration of municipal telecommunications license taxes under this
             340      part.
             341          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a
             342      municipal telecommunications license tax under this part at a rate that exceeds 3.5%:
             343          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the
             344      commission shall collect the municipal telecommunications license tax:
             345          (i) within the municipality;
             346          (ii) at a rate of 3.5%; and
             347          (iii) from a telecommunications provider required to pay the municipal
             348      telecommunications license tax on or after July 1, 2007; and
             349          (b) the commission shall collect a municipal telecommunications license tax within
             350      the municipality at the rate imposed by the municipality if:
             351          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a
             352      municipal telecommunications license tax under this part at a rate of up to 3.5%;
             353          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             354      the rate of the municipal telecommunications license tax; and
             355          (iii) a telecommunications provider is required to pay the municipal
             356      telecommunications license tax on or after the day on which the ordinance described in
             357      Subsection (4)(b)(ii) takes effect.
             358          Section 3. Section 19-6-410.5 is amended to read:
             359           19-6-410.5. Environmental assurance program -- Participant fee -- State Tax
             360      Commission administration, collection, and enforcement of tax.
             361          (1) As used in this section:
             362          (a) "Cash balance" means cash plus investments and current accounts receivable
             363      minus current accounts payable, excluding the liabilities estimated by the state risk manager.
             364          (b) "Commission" means the State Tax Commission, as defined in Section 59-1-101 .
             365          (2) (a) There is created an Environmental Assurance Program.


             366          (b) The program shall provide to a participating [owners and operators] owner or
             367      operator, upon payment of the fee imposed under Subsection (4), assistance with satisfying the
             368      financial responsibility requirements of 40 [CFR] C.F.R., Part 280, Subpart H, by providing
             369      funds from the Petroleum Storage Tank Trust Fund established in Section 19-6-409 , subject to
             370      the terms and conditions of Chapter 6, Part 4, Underground Storage Tank Act, and rules
             371      implemented under that part.
             372          (3) (a) Subject to Subsection (3)(b), participation in the program is voluntary.
             373          (b) [Each] An owner [and] or operator seeking to satisfy financial responsibility
             374      requirements through the program shall use the program for all petroleum underground storage
             375      tanks that the owner or operator owns or operates.
             376          (4) (a) There is assessed an environmental assurance fee of 1/2 cent per gallon on the
             377      first sale or use of petroleum products in the state.
             378          (b) The environmental assurance fee and any other revenue collected under this
             379      section shall be deposited in the Petroleum Storage Tank Trust Fund created in Section
             380      19-6-409 and used solely for the purposes listed in Section 19-6-409 .
             381          [(5) (a) The commission shall collect the environmental assurance fee and any
             382      penalties and interest imposed under this section.]
             383          (5) (a) The commission shall administer, collect, and enforce the fee imposed under
             384      this section according to the same procedures used in the administration, collection, and
             385      enforcement of the state sales and use tax under:
             386          (i) Title 59, Chapter 1, General Taxation Policies; and
             387          (ii) Title 59, Chapter 12, Part 1, Tax Collection.
             388          (b) [By following the procedures and requirements of] In accordance with Title 63G,
             389      Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules to
             390      establish:
             391          (i) the method of payment of the environmental assurance fee;
             392          (ii) the procedure for reimbursement or exemption of [owners or operators who do] an
             393      owner or operator that does not participate in the program, including [owners and operators of]


             394      an owner or operator of an above ground storage [tanks] tank; and
             395          (iii) the procedure for confirming with the department [those owners and operators
             396      who qualify] that an owner or operator qualifies for reimbursement or exemption under
             397      Subsection (5)(b)(ii).
             398          (c) The commission may retain an amount not to exceed 2.5% of fees collected under
             399      this section for the cost to [it] the commission of rendering its services.
             400          (6) (a) The person [or entity] responsible for payment of the fee under this section
             401      shall, by the last day of the month following the month in which the sale occurs:
             402          (i) complete and submit the form prescribed by the commission; and
             403          (ii) pay the fee to the commission.
             404          (b) (i) The penalties and interest for failure to file the form or to pay the environmental
             405      assurance fee are the same as the penalties and interest under Sections 59-1-401 and 59-1-402 .
             406          (ii) The commission shall deposit penalties and interest collected under this section in
             407      the Petroleum Storage Tank Trust Fund.
             408          (c) The commission shall report to the department [any person or entity] a person who
             409      is delinquent in payment of the fee under this section.
             410          (7) (a) (i) If the cash balance of the Petroleum Storage Tank Trust Fund on June 30 of
             411      any year exceeds $20,000,000, the assessment of the environmental assurance fee as provided
             412      in Subsection (4) is reduced to 1/4 cent per gallon beginning November 1.
             413          (ii) The reduction [shall remain] under this Subsection (7)(a) remains in effect until
             414      modified by the Legislature in a general or special session.
             415          (b) The commission shall determine the cash balance of the fund each year as of June
             416      30.
             417          (c) Before September 1 of each year, the department shall provide the commission
             418      with the accounts payable of the fund as of June 30.
             419          Section 4. Section 34A-2-202 is amended to read:
             420           34A-2-202. Assessment on self-insured employers including the state, counties,
             421      cities, towns, or school districts paying compensation direct.


             422          (1) (a) (i) A self-insured employer, including a county, city, town, or school district,
             423      shall pay annually, on or before March 31, an assessment in accordance with this section and
             424      rules made by the commission under this section.
             425          (ii) For purposes of this section, "self-insured employer" is as defined in Section
             426      34A-2-201.5 , except it includes the state if the state self-insures under Section 34A-2-203 .
             427          (b) The assessment required by Subsection (1)(a) is:
             428          (i) to be collected by the State Tax Commission;
             429          (ii) paid by the State Tax Commission into the state treasury as provided in Subsection
             430      59-9-101 (2); and
             431          (iii) subject to the offset provided in Section 34A-2-202.5 .
             432          (c) The assessment under Subsection (1)(a) shall be based on a total calculated
             433      premium multiplied by the premium assessment rate established pursuant to Subsection
             434      59-9-101 (2).
             435          (d) The total calculated premium, for purposes of calculating the assessment under
             436      Subsection (1)(a), shall be calculated by:
             437          (i) multiplying the total of the standard premium for each class code calculated in
             438      Subsection (1)(e) by the self-insured employer's experience modification factor; and
             439          (ii) multiplying the total under Subsection (1)(d)(i) by a safety factor determined under
             440      Subsection (1)(g).
             441          (e) A standard premium shall be calculated by:
             442          (i) multiplying the prospective loss cost for the year being considered, as filed with the
             443      insurance department pursuant to Section 31A-19a-406 , for each applicable class code by 1.10
             444      to determine the manual rate for each class code; and
             445          (ii) multiplying the manual rate for each class code under Subsection (1)(e)(i) by each
             446      $100 of the self-insured employer's covered payroll for each class code.
             447          (f) (i) Each self-insured employer paying compensation direct shall annually obtain the
             448      experience modification factor required in Subsection (1)(d)(i) by using:
             449          (A) the rate service organization designated by the insurance commissioner in Section


             450      31A-19a-404 ; or
             451          (B) for a self-insured employer that is a public agency insurance mutual, an actuary
             452      approved by the commission.
             453          (ii) If a self-insured employer's experience modification factor under Subsection
             454      (1)(f)(i) is less than 0.50, the self-insured employer shall use an experience modification factor
             455      of 0.50 in determining the total calculated premium.
             456          (g) To provide incentive for improved safety, the safety factor required in Subsection
             457      (1)(d)(ii) shall be determined based on the self-insured employer's experience modification
             458      factor as follows:
             459                  EXPERIENCE
             460              MODIFICATION FACTOR            SAFETY FACTOR
             461          Less than or equal to 0.90                    0.56
             462          Greater than 0.90 but less than or equal to 1.00        0.78
             463          Greater than 1.00 but less than or equal to 1.10        1.00
             464          Greater than 1.10 but less than or equal to 1.20        1.22
             465          Greater than 1.20                        1.44
             466          (h) (i) A premium or premium assessment modification other than a premium or
             467      premium assessment modification under this section may not be allowed.
             468          (ii) If a self-insured employer paying compensation direct fails to obtain an experience
             469      modification factor as required in Subsection (1)(f)(i) within the reasonable time period
             470      established by rule by the State Tax Commission, the State Tax Commission shall use an
             471      experience modification factor of 2.00 and a safety factor of 2.00 to calculate the total
             472      calculated premium for purposes of determining the assessment.
             473          (iii) Prior to calculating the total calculated premium under Subsection (1)(h)(ii), the
             474      State Tax Commission shall provide the self-insured employer with written notice that failure
             475      to obtain an experience modification factor within a reasonable time period, as established by
             476      rule by the State Tax Commission:
             477          (A) shall result in the State Tax Commission using an experience modification factor


             478      of 2.00 and a safety factor of 2.00 in calculating the total calculated premium for purposes of
             479      determining the assessment; and
             480          (B) may result in the division revoking the self-insured employer's right to pay
             481      compensation direct.
             482          (i) The division may immediately revoke a self-insured employer's certificate issued
             483      under Sections 34A-2-201 and 34A-2-201.5 that permits the self-insured employer to pay
             484      compensation direct if the State Tax Commission assigns an experience modification factor
             485      and a safety factor under Subsection (1)(h) because the self-insured employer failed to obtain
             486      an experience modification factor.
             487          (2) Notwithstanding the annual payment requirement in Subsection (1)(a), a
             488      self-insured employer whose total assessment obligation under Subsection (1)(a) for the
             489      preceding year was $10,000 or more shall pay the assessment in quarterly installments in the
             490      same manner provided in Section 59-9-104 and subject to the same penalty provided in
             491      Section 59-9-104 for not paying or underpaying an installment.
             492          (3) (a) The State Tax Commission shall have access to all the records of the division
             493      for the purpose of auditing and collecting any amounts described in this section.
             494          (b) Time periods for the State Tax Commission to allow a refund or make an
             495      assessment shall be determined in accordance with [Section 59-9-106 ] Title 59, Chapter 1,
             496      Part 14, Assessment, Collections, and Refunds Act.
             497          (4) (a) A review of appropriate use of job class assignment and calculation
             498      methodology may be conducted as directed by the division at any reasonable time as a
             499      condition of the self-insured employer's certification of paying compensation direct.
             500          (b) The State Tax Commission shall make any records necessary for the review
             501      available to the commission.
             502          (c) The commission shall make the results of any review available to the State Tax
             503      Commission.
             504          Section 5. Section 38-12-101 is amended to read:
             505           38-12-101. Definitions.


             506          For purposes of this chapter:
             507          (1) "Lien" means:
             508          (a) failure to pay moneys owed for property, services, or a notice of interest, a
             509      judgment, or any other encumbrance on the title, that becomes a charge against or interest in:
             510          (i) real property, a building, a structure, or an improvement including any franchise,
             511      privilege, appurtenance, machinery, or fixture pertaining to or used in connection with any real
             512      property, building, structure, or improvement;
             513          (ii) personal property; or
             514          (iii) a judgment, settlement, or compromise; or
             515          (b) a tax as provided in Section [ 59-1-302.1 ,] 59-1-1413 , 59-5-108 , 59-5-208 ,
             516      59-11-110 , or 59-12-112 .
             517          (2) "Lien" does not mean a charge against or interest in, for failure to pay moneys
             518      owed for property, services, or a judgment, any:
             519          (a) bank account;
             520          (b) pension; or
             521          (c) garnishment.
             522          Section 6. Section 59-1-101 is amended to read:
             523           59-1-101. Definitions.
             524          [For purposes of this title "commission"]
             525          As used in this title:
             526          (1) "Commission" and "tax commission" mean the State Tax Commission.
             527          (2) "Deficiency" is as defined in Section 59-1-1402 .
             528          Section 7. Section 59-1-302 is amended to read:
             529           59-1-302. Penalty for nonpayment of certain taxes -- Jeopardy proceedings.
             530          (1) This section applies to the following:
             531          (a) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             532          (b) a tax under Title 10, Chapter 1, Part 4, Municipal Telecommunications License
             533      Tax Act;


             534          (c) a tax under Chapter 10, Part 4, Withholding of Tax;
             535          (d) [(i) except as provided in Subsection (1)(d)(ii),] a tax under Chapter 12, Sales and
             536      Use Tax Act; [and]
             537          [(ii) notwithstanding Subsection (1)(d)(i), this section does not apply to Chapter 12,
             538      Part 9, Sales Tax Refund for Qualified Emergency Food Agencies;]
             539          (e) a tax under Chapter 13, Part 2, Motor Fuel;
             540          (f) a tax under Chapter 13, Part 3, Special Fuel; and
             541          (g) a tax under Chapter 13, Part 4, Aviation Fuel.
             542          (2) [Any] (a) A person required to collect, truthfully account for, and pay over [any] a
             543      tax listed in Subsection (1) who willfully fails to collect the tax, fails to truthfully account for
             544      and pay over the tax, or attempts in any manner to evade or defeat [any] the tax or the payment
             545      of the tax, [shall be] is liable for a penalty equal to the total amount of the tax evaded, not
             546      collected, not accounted for, or not paid over. [This penalty]
             547          (b) The penalty described in Subsection (2)(a) is in addition to other penalties
             548      provided by law.
             549          (3) (a) If the commission determines in accordance with Subsection (2) that a person
             550      is liable for the penalty, the commission shall [notify the taxpayer] mail a notice of the
             551      proposed penalty to the person.
             552          (b) The notice of proposed penalty shall:
             553          (i) set forth the basis of the assessment; and
             554          (ii) be mailed [by certified mail]:
             555          (A) in accordance with Section 59-1-1404 ; and
             556          (B) to the person's last-known address.
             557          (4) Upon receipt of the notice of proposed penalty, the person against whom the
             558      penalty is proposed may:
             559          (a) pay the amount of the proposed penalty at the place and time stated in the notice;
             560      or
             561          (b) proceed in accordance with the review procedures of Subsection (5).


             562          (5) [Any] A person against whom a penalty [has been ] is proposed in accordance with
             563      Subsections (2) and (3) may contest the proposed penalty by filing a petition for an
             564      adjudicative proceeding with the commission.
             565          (6) If the commission determines that the collection of the penalty is in jeopardy,
             566      [nothing in] this section [may] does not prevent the immediate collection of the penalty in
             567      accordance with the procedures and requirements for an emergency [proceedings in]
             568      proceeding under Title 63G, Chapter 4, Administrative Procedures Act.
             569          (7) (a) In [any] a hearing before the commission and in [any] a judicial review of the
             570      hearing, the commission and the court shall consider any inference and evidence that a person
             571      has willfully failed to collect, truthfully account for, or pay over [any] a tax listed in
             572      Subsection (1).
             573          (b) It is prima facie evidence that a person has willfully failed to collect, truthfully
             574      account for, or pay over [any of the taxes] a tax listed in Subsection (1) if the commission or a
             575      court finds that the person charged with the responsibility of collecting, accounting for, or
             576      paying over the taxes:
             577          (i) made a voluntary, conscious, and intentional decision to prefer other creditors over
             578      the state government or utilize the tax money for personal purposes;
             579          (ii) recklessly disregarded obvious or known risks[, which] that resulted in the failure
             580      to collect, truthfully account for, or pay over the tax; or
             581          (iii) failed to investigate or to correct mismanagement, having notice that the tax was
             582      not or is not being collected, accounted for, or paid over as provided by law.
             583          (c) The commission or court [need not] is not required to find a bad motive or specific
             584      intent to defraud the government or deprive [it] the government of revenue to establish
             585      willfulness under this section.
             586          (d) [(i)] If the commission determines that a person is liable for the penalty under
             587      Subsection (2), the commission shall assess the penalty and give notice and demand for
             588      payment in accordance with Section 59-1-1411 .
             589          [(ii) The notice and demand for payment described in Subsection (7)(d)(i) shall be


             590      mailed by certified mail to the person's last-known address.]
             591          Section 8. Section 59-1-401 is amended to read:
             592           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             593      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             594      interest.
             595          (1) As used in this section:
             596          (a) (i) "Nonqualifying obligation" means a charge, fee, payment, or tax administered
             597      by the commission.
             598          (ii) "Nonqualifying obligation" does not include:
             599          (A) beginning on the phase I activation date, a phase I obligation; or
             600          (B) beginning on the phase II activation date, a phase II obligation.
             601          (b) "Phase I activation date" means the earlier of:
             602          (i) the day on which the commission's GenTax system is activated to administer all
             603      phase I obligations; or
             604          (ii) May 1, 2008.
             605          (c) "Phase I obligation" means:
             606          (i) a fee under Section 19-6-808 ;
             607          (ii) a tax under Chapter 10, Part 1, Determination and Reporting of Tax Liability and
             608      Information;
             609          (iii) a tax under Chapter 10, Part 2, Trusts and Estates; or
             610          [(iv) a tax under Chapter 10, Part 12, Single Rate Individual Income Tax Act; or]
             611          [(v)] (iv) a tax under Chapter 12, Sales and Use Tax Act.
             612          (d) "Phase II activation date" means the earlier of:
             613          (i) the day on which the commission's GenTax system is activated to administer all
             614      phase II obligations; or
             615          (ii) May 4, 2009.
             616          (e) (i) "Phase II obligation" means:
             617          (A) a payment under Chapter 6, Mineral Production Tax Withholding;


             618          (B) a tax under Chapter 7, Corporate Franchise and Income Taxes;
             619          (C) a payment under Chapter 10, Part 4, Withholding of Tax; or
             620          (D) a tax paid on a return filed in accordance with Section 59-10-507 .
             621          (ii) "Phase II obligation" does not include a payment of estimated tax under Section
             622      59-7-504 .
             623          (2) (a) The due date for filing a return is:
             624          (i) if the person filing the return is not allowed by law an extension of time for filing
             625      the return, the day on which the return is due as provided by law; or
             626          (ii) if the person filing the return is allowed by law an extension of time for filing the
             627      return, the last day of that extension of time.
             628          (b) (i) A penalty in the amount described in Subsection (2)(b)(ii) is imposed if:
             629          (A) a person is required to file a return with respect to a nonqualifying obligation; and
             630          (B) the person described in Subsection (2)(b)(i)(A) files the return after the due date
             631      described in Subsection (2)(a).
             632          (ii) For purposes of Subsection (2)(b)(i), the penalty is an amount equal to the greater
             633      of:
             634          (A) $20; or
             635          (B) 10% of the unpaid nonqualifying obligation due on the return.
             636          (c) (i) A penalty in the amount described in Subsection (2)(c)(ii) is imposed if a
             637      person:
             638          (A) (I) is required to file a return:
             639          (Aa) on or after the phase I activation date; and
             640          (Bb) with respect to a phase I obligation; and
             641          (II) files the return after the due date described in Subsection (2)(a); or
             642          (B) (I) is required to file a return:
             643          (Aa) on or after the phase II activation date; and
             644          (Bb) with respect to a phase II obligation; and
             645          (II) files the return after the due date described in Subsection (2)(a).


             646          (ii) For purposes of Subsection (2)(c)(i), the penalty is an amount equal to the greater
             647      of:
             648          (A) $20; or
             649          (B) (I) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             650      the return is filed no later than five days after the due date described in Subsection (2)(a);
             651          (II) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             652      return is filed more than five days after the due date but no later than 15 days after the due
             653      date described in Subsection (2)(a); or
             654          (III) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             655      the return is filed more than 15 days after the due date described in Subsection (2)(a).
             656          (d) This Subsection (2) does not apply to:
             657          (i) an amended return; or
             658          (ii) a return with no tax due.
             659          (3) (a) If a person fails to pay a tax, fee, or charge due, the person is subject to a
             660      penalty as provided in this Subsection (3).
             661          (b) (i) A penalty in the amount described in Subsection (3)(b)(ii) is imposed if:
             662          (A) a person files a return with respect to a nonqualifying obligation on or before the
             663      due date for filing a return described in Subsection (2)(a), but fails to pay the nonqualifying
             664      obligation due on the return on or before that due date;
             665          (B) a person:
             666          (I) is subject to a penalty under Subsection (2)(b); and
             667          (II) fails to pay a nonqualifying obligation due on a return within a 90-day period after
             668      the due date for filing a return described in Subsection (2)(a);
             669          (C) (I) a person is subject to a penalty under Subsection (2)(b); and
             670          (II) the commission estimates an amount of tax due for that person in accordance with
             671      Subsection 59-1-1406 (2);
             672          [(C)] (D) a person:
             673          (I) is mailed a notice of deficiency; and


             674          (II) within a 30-day period after the day on which the notice of deficiency described in
             675      Subsection (3)(b)(i)[(C)](D)(I) is mailed:
             676          (Aa) does not file a petition for redetermination or a request for agency action; and
             677          (Bb) fails to pay a nonqualifying obligation due on a return;
             678          [(D)] (E) (I) the commission:
             679          (Aa) issues an order constituting final agency action resulting from a timely filed
             680      petition for redetermination or a timely filed request for agency action; or
             681          (Bb) is considered to have denied a request for reconsideration under Subsection
             682      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             683      request for agency action; and
             684          (II) a person fails to pay a nonqualifying obligation due on a return within a 30-day
             685      period after the date the commission:
             686          (Aa) issues the order constituting final agency action described in Subsection
             687      (3)(b)(i)[(D)](E)(I)(Aa); or
             688          (Bb) is considered to have denied the request for reconsideration described in
             689      Subsection (3)(b)(i)[(D)](E)(I)(Bb); or
             690          [(E)] (F) a person fails to pay a nonqualifying obligation within a 30-day period after
             691      the date of a final judicial decision resulting from a timely filed petition for judicial review.
             692          (ii) For purposes of Subsection (3)(b)(i), the penalty is an amount equal to the greater
             693      of:
             694          (A) $20; or
             695          (B) 10% of the unpaid nonqualifying obligation due on the return.
             696          (c) (i) This Subsection (3)(c) applies to a penalty:
             697          (A) imposed on or after the phase I activation date with respect to a phase I obligation;
             698      or
             699          (B) imposed on or after the phase II activation date with respect to a phase II
             700      obligation.
             701          (ii) (A) The penalty described in Subsection (3)(c)(ii)(B) applies if a person:


             702          (I) with respect to a phase I obligation:
             703          (Aa) files a return on or before the due date for filing a return described in Subsection
             704      (2)(a); and
             705          (Bb) fails to pay the phase I obligation due on the return on or before the due date
             706      described in Subsection (2)(a); or
             707          (II) with respect to a phase II obligation:
             708          (Aa) files a return on or before the due date for filing a return described in Subsection
             709      (2)(a); and
             710          (Bb) fails to pay the phase II obligation due on the return on or before the due date
             711      described in Subsection (2)(a).
             712          (B) For purposes of Subsection (3)(c)(ii)(A), the penalty is an amount equal to the
             713      greater of:
             714          (I) $20; or
             715          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             716      the phase I obligation or phase II obligation due on the return is paid no later than five days
             717      after the due date for filing a return described in Subsection (2)(a);
             718          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             719      phase I obligation or phase II obligation due on the return is paid more than five days after the
             720      due date for filing a return described in Subsection (2)(a) but no later than 15 days after that
             721      due date; or
             722          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             723      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             724      the due date for filing a return described in Subsection (2)(a).
             725          (iii) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iii)(B) if the
             726      person:
             727          (I) is subject to a penalty under Subsection (2)(c); and
             728          (II) fails to pay a phase I obligation or phase II obligation due on a return within a
             729      90-day period after the due date for filing a return described in Subsection (2)(a).


             730          (B) For purposes of Subsection (3)(c)(iii)(A), the penalty is an amount equal to the
             731      greater of:
             732          (I) $20; or
             733          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             734      the phase I obligation or phase II obligation due on the return is paid no later than five days
             735      after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II);
             736          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             737      phase I obligation or phase II obligation due on the return is paid more than five days after the
             738      last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II) but no later than 15
             739      days after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II); or
             740          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             741      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             742      the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II).
             743          (iv) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iv)(B) if:
             744          (I) the person is subject to a penalty under Subsection (2)(b); and
             745          (II) the commission estimates an amount of tax due for that person in accordance with
             746      Subsection 59-1-1406 (2).
             747          (B) For purposes of Subsection (3)(c)(iv)(A), the penalty is an amount equal to the
             748      greater of:
             749          (I) $20; or
             750          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             751      the phase I obligation or phase II obligation due on the return is paid no later than five days
             752      after the due date for filing a return described in Subsection (2)(a);
             753          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             754      phase I obligation or phase II obligation due on the return is paid more than five days after the
             755      due date for filing a return described in Subsection (2)(a) but no later than 15 days after the
             756      due date for filing a return described in Subsection (2)(a); or
             757          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if


             758      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             759      the due date for filing a return described in Subsection (2)(a).
             760          [(iv)] (v) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iv)(B) if
             761      the person:
             762          (I) is mailed a notice of deficiency; and
             763          (II) within a 30-day period after the day on which the notice of deficiency described in
             764      Subsection (3)(c)[(iv)](v)(A)(I) is mailed:
             765          (Aa) does not file a petition for redetermination or a request for agency action; and
             766          (Bb) fails to pay a phase I obligation or phase II obligation due on a return.
             767          (B) For purposes of Subsection (3)(c)[(iv)](v)(A), the penalty is an amount equal to
             768      the greater of:
             769          (I) $20; or
             770          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             771      the phase I obligation or phase II obligation due on the return is paid no later than five days
             772      after the last day of the 30-day period described in Subsection (3)(c)[(iv)](v)(A)(II);
             773          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             774      phase I obligation or phase II obligation due on the return is paid more than five days after the
             775      last day of the 30-day period described in Subsection (3)(c)[(iv)](v)(A)(II) but no later than 15
             776      days after the last day of the 30-day period described in Subsection (3)(c)[(iv)](v)(A)(II); or
             777          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             778      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             779      the last day of the 30-day period described in Subsection (3)(c)[(iv)](v)(A)(II).
             780          [(v)] (vi) (A) A person is subject to a penalty as provided in Subsection
             781      (3)(c)[(v)](vi)(B) if:
             782          (I) the commission:
             783          (Aa) issues an order constituting final agency action resulting from a timely filed
             784      petition for redetermination or a timely filed request for agency action; or
             785          (Bb) is considered to have denied a request for reconsideration under Subsection


             786      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             787      request for agency action; and
             788          (II) the person fails to pay a phase I obligation or phase II obligation due on a return
             789      within a 30-day period after the date the commission:
             790          (Aa) issues the order constituting final agency action described in Subsection
             791      (3)(c)[(v)](vi)(A)(I)(Aa); or
             792          (Bb) is considered to have denied the request for reconsideration described in
             793      Subsection (3)(c)[(v)](vi)(A)(I)(Bb).
             794          (B) For purposes of Subsection (3)(c)[(v)](vi)(A), the penalty is an amount equal to
             795      the greater of:
             796          (I) $20; or
             797          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             798      the phase I obligation or phase II obligation due on the return is paid no later than five days
             799      after the last day of the 30-day period described in Subsection (3)(c)[(v)](vi)(A)(II);
             800          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             801      phase I obligation or phase II obligation due on the return is paid more than five days after the
             802      last day of the 30-day period described in Subsection (3)(c)[(v)](vi)(A)(II) but no later than 15
             803      days after the last day of the 30-day period described in Subsection (3)(c)[(v)](vi)(A)(II); or
             804          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             805      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             806      the last day of the 30-day period described in Subsection (3)(c)[(v)](vi)(A)(II).
             807          [(vi)] (vii) (A) A person is subject to a penalty as provided in Subsection
             808      (3)(c)[(vi)](vii)(B) if within a 30-day period after the date of a final judicial decision resulting
             809      from a timely filed petition for judicial review, the person fails to pay a phase I obligation or
             810      phase II obligation.
             811          (B) For purposes of Subsection (3)(c)[(vi)](vii)(A), the penalty is an amount equal to
             812      the greater of:
             813          (I) $20; or


             814          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             815      the phase I obligation or phase II obligation due on the return is paid no later than five days
             816      after the last day of the 30-day period described in Subsection (3)(c)[(vi)](vii)(A);
             817          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             818      phase I obligation or phase II obligation due on the return is paid more than five days after the
             819      last day of the 30-day period described in Subsection (3)(c)[(vi)](vii)(A) but no later than 15
             820      days after the last day of the 30-day period described in Subsection (3)(c)[(vi)](vii)(A); or
             821          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             822      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             823      the last day of the 30-day period described in Subsection (3)(c)[(vi)](vii)(A).
             824          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax
             825      or quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 ,
             826      there shall be added a penalty in an amount determined by applying the interest rate provided
             827      under Section 59-1-402 plus four percentage points to the amount of the underpayment for the
             828      period of the underpayment.
             829          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             830      excess of the required installment over the amount, if any, of the installment paid on or before
             831      the due date for the installment.
             832          (ii) The period of the underpayment shall run from the due date for the installment to
             833      whichever of the following dates is the earlier:
             834          (A) the original due date of the tax return, without extensions, for the taxable year; or
             835          (B) with respect to any portion of the underpayment, the date on which that portion is
             836      paid.
             837          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             838      against unpaid required installments in the order in which the installments are required to be
             839      paid.
             840          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             841      person allowed by law an extension of time for filing a corporate franchise or income tax


             842      return under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax
             843      return under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount
             844      described in Subsection (5)(b) if, on or before the day on which the return is due as provided
             845      by law, not including the extension of time, the person fails to pay:
             846          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             847      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b);
             848      or
             849          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             850      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             851          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             852      extension of time for filing the return is an amount equal to 2% of the [unpaid] tax due on the
             853      return, unpaid as of the day on which the return is due as provided by law.
             854          (6) If a person does not file a return within an extension of time allowed by Section
             855      59-7-505 or 59-10-516 , the person:
             856          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             857          (b) is subject to a penalty in an amount equal to the sum of:
             858          (i) a late file penalty in an amount equal to the greater of:
             859          (A) $20; or
             860          (B) 10% of the [unpaid] tax due on the return, unpaid as of the day on which the
             861      return is due as provided by law, not including the extension of time; and
             862          (ii) a late pay penalty in an amount equal to the greater of:
             863          (A) $20; or
             864          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return
             865      is due as provided by law, not including the extension of time.
             866          (7) (a) Additional penalties for underpayments of tax are as provided in this
             867      Subsection (7)(a).
             868          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of tax is
             869      due to negligence, the penalty is 10% of the portion of the underpayment that is due to


             870      negligence.
             871          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of tax
             872      is due to intentional disregard of law or rule, the penalty is 15% of the entire underpayment.
             873          (iii) [For] If any portion of an underpayment is due to an intent to evade the tax, the
             874      penalty is the greater of $500 per period or 50% of the [tax due] entire underpayment.
             875          (iv) If [the] any portion of an underpayment is due to fraud with intent to evade the
             876      tax, the penalty is the greater of $500 per period or 100% of the entire underpayment.
             877          (b) If the commission determines that a person is liable for a penalty imposed under
             878      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the taxpayer of the proposed
             879      penalty.
             880          (i) The notice of proposed penalty shall:
             881          (A) set forth the basis of the assessment; and
             882          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             883          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             884      penalty is proposed may:
             885          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             886      or
             887          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             888          (iii) [Any] A person against whom a penalty [has been] is proposed in accordance
             889      with this Subsection (7) may contest the proposed penalty by filing a petition for an
             890      adjudicative proceeding with the commission.
             891          (iv) (A) If the commission determines that a person is liable for a penalty under this
             892      Subsection (7), the commission shall assess the penalty and give notice and demand for
             893      payment.
             894          (B) The commission shall mail the notice and demand for payment described in
             895      Subsection (7)(b)(iv)(A) [shall be mailed by certified mail, postage prepaid,]:
             896          (I) to the person's last-known address[.]; and
             897          (II) in accordance with Section 59-1-1404 .


             898          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             899      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             900          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             901      determining that:
             902          (A) the seller meets one or more of the criteria described in Subsection
             903      59-12-107 (1)(a); and
             904          (B) the commission or a county, city, or town may require the seller to collect a tax
             905      under Subsection 59-12-103 (2)(a) or (b); or
             906          (ii) the commission issues a final unappealable administrative order determining that:
             907          (A) the seller meets one or more of the criteria described in Subsection
             908      59-12-107 (1)(a); and
             909          (B) the commission or a county, city, or town may require the seller to collect a tax
             910      under Subsection 59-12-103 (2)(a) or (b).
             911          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             912      subject to the penalty under Subsection (7)(a)(ii) if:
             913          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             914      determining that:
             915          (I) the seller meets one or more of the criteria described in Subsection
             916      59-12-107 (1)(a); and
             917          (II) the commission or a county, city, or town may require the seller to collect a tax
             918      under Subsection 59-12-103 (2)(a) or (b); or
             919          (B) the commission issues a final unappealable administrative order determining that:
             920          (I) the seller meets one or more of the criteria described in Subsection
             921      59-12-107 (1)(a); and
             922          (II) the commission or a county, city, or town may require the seller to collect a tax
             923      under Subsection 59-12-103 (2)(a) or (b); and
             924          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             925      nonfrivolous argument for the extension, modification, or reversal of existing law or the


             926      establishment of new law.
             927          (8) Except as provided in Section 59-12-105 , the penalty for failure to file an
             928      information return, information report, or a complete supporting schedule is $50 for each
             929      information return, information report, or supporting schedule up to a maximum of $1,000.
             930          (9) If [any] a taxpayer, in furtherance of a frivolous position, has a prima facie intent
             931      to delay or impede administration of the tax law and files a purported return that fails to
             932      contain information from which the correctness of reported tax liability can be determined or
             933      that clearly indicates that the tax liability shown must be substantially incorrect, the penalty is
             934      $500.
             935          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             936      Subsection 59-12-108 (1)(a)[(ii)]:
             937          (i) is subject to a penalty described in Subsection (2); and
             938          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             939      allowable under Subsection 59-12-108 (2).
             940          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             941      required by Subsection 59-12-108 (1)(a)(ii)(B):
             942          (i) is subject to a penalty described in Subsection (2); and
             943          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             944      allowable under Subsection 59-12-108 (2).
             945          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that
             946      person:
             947          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             948      following documents:
             949          (A) a return;
             950          (B) an affidavit;
             951          (C) a claim; or
             952          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             953          (ii) knows or has reason to believe that the document described in Subsection


             954      (11)(a)(i) will be used in connection with any material matter administered by the
             955      commission; and
             956          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             957      with any material matter administered by the commission, would result in an understatement
             958      of another person's liability for a tax, fee, or charge administered by the commission.
             959          (b) The following acts apply to Subsection (11)(a)(i):
             960          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             961          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             962          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             963          (iv) advising in the preparation or presentation of any portion of a document described
             964      in Subsection (11)(a)(i);
             965          (v) aiding in the preparation or presentation of any portion of a document described in
             966      Subsection (11)(a)(i);
             967          (vi) assisting in the preparation or presentation of any portion of a document described
             968      in Subsection (11)(a)(i); or
             969          (vii) counseling in the preparation or presentation of any portion of a document
             970      described in Subsection (11)(a)(i).
             971          (c) For purposes of Subsection (11)(a), the penalty:
             972          (i) shall be imposed by the commission;
             973          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             974      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             975          (iii) is in addition to any other penalty provided by law.
             976          (d) The commission may seek a court order to enjoin a person from engaging in
             977      conduct that is subject to a penalty under this Subsection (11).
             978          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             979      commission may make rules prescribing the documents that are similar to Subsections
             980      (11)(a)(i)(A) through (C).
             981          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as


             982      provided in Subsections (12)(b) through (e).
             983          (b) (i) [Any] A person who is required by this title or any laws the commission
             984      administers or regulates to register with or obtain a license or permit from the commission,
             985      who operates without having registered or secured a license or permit, or who operates when
             986      the registration, license, or permit is expired or not current, is guilty of a class B misdemeanor.
             987          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             988      penalty may not:
             989          (A) be less than $500; or
             990          (B) exceed $1,000.
             991          (c) (i) [Any] A person who, with intent to evade [any] a tax or requirement of this title
             992      or any lawful requirement of the commission, fails to make, render, sign, or verify [any] a
             993      return or to supply [any] information within the time required by law, or who makes, renders,
             994      signs, or verifies [any] a false or fraudulent return or statement, or who supplies [any] false or
             995      fraudulent information, is guilty of a third degree felony.
             996          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             997      penalty may not:
             998          (A) be less than $1,000; or
             999          (B) exceed $5,000.
             1000          (d) (i) [Any] A person who intentionally or willfully attempts to evade or defeat [any]
             1001      a tax or the payment of a tax is, in addition to other penalties provided by law, guilty of a
             1002      second degree felony.
             1003          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             1004      penalty may not:
             1005          (A) be less than $1,500; or
             1006          (B) exceed $25,000.
             1007          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             1008          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             1009      documents:


             1010          (I) a return;
             1011          (II) an affidavit;
             1012          (III) a claim; or
             1013          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             1014          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
             1015      Subsection (12)(e)(i)(A):
             1016          (I) is false or fraudulent as to any material matter; and
             1017          (II) could be used in connection with any material matter administered by the
             1018      commission.
             1019          (ii) The following acts apply to Subsection (12)(e)(i):
             1020          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             1021          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             1022          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             1023          (D) advising in the preparation or presentation of any portion of a document described
             1024      in Subsection (12)(e)(i)(A);
             1025          (E) aiding in the preparation or presentation of any portion of a document described in
             1026      Subsection (12)(e)(i)(A);
             1027          (F) assisting in the preparation or presentation of any portion of a document described
             1028      in Subsection (12)(e)(i)(A); or
             1029          (G) counseling in the preparation or presentation of any portion of a document
             1030      described in Subsection (12)(e)(i)(A).
             1031          (iii) This Subsection (12)(e) applies:
             1032          (A) regardless of whether the person for which the document described in Subsection
             1033      (12)(e)(i)(A) is prepared or presented:
             1034          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             1035          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
             1036          (B) in addition to any other penalty provided by law.
             1037          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the


             1038      penalty may not:
             1039          (A) be less than $1,500; or
             1040          (B) exceed $25,000.
             1041          (v) The commission may seek a court order to enjoin a person from engaging in
             1042      conduct that is subject to a penalty under this Subsection (12)(e).
             1043          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1044      the commission may make rules prescribing the documents that are similar to Subsections
             1045      (12)(e)(i)(A)(I) through (III).
             1046          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             1047      the later of six years:
             1048          (i) from the date the tax should have been remitted; or
             1049          (ii) after the day on which the person commits the criminal offense.
             1050          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             1051      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             1052      this part.
             1053          Section 9. Section 59-1-501 is amended to read:
             1054           59-1-501. Procedure for obtaining redetermination of a deficiency -- Claim for
             1055      refund.
             1056          [Any taxpayer]
             1057          (1) As used in this section:
             1058          (a) "Legal holiday" is as defined in Section 59-10-518 .
             1059          (b) "Tax, fee, or charge" is as defined in Section 59-1-1402 .
             1060          (2) A person may file a request for agency action, petitioning the commission for
             1061      redetermination of a deficiency.
             1062          (3) Subject to Subsections (4) through (6), a person shall file the request for agency
             1063      action described in Subsection (2):
             1064          (a) within a 30-day period after the date the commission mails a notice of deficiency
             1065      to the person in accordance with Section 59-1-1405 ; or


             1066          (b) within a 90-day period after the date the commission mails a notice of deficiency
             1067      to the person in accordance with Section 59-1-1405 if the notice of deficiency is addressed to
             1068      a person outside the United States or the District of Columbia.
             1069          (4) If the last day of a time period described in Subsection (3) is a Saturday, Sunday,
             1070      or legal holiday, the last day for a person to file a request for agency action is the next day that
             1071      is not a Saturday, Sunday, or legal holiday.
             1072          (5) A person that mails a request for agency action shall mail the request for agency
             1073      action in accordance with Section 59-1-1404 .
             1074          (6) For purposes of Subsection (3), a person is considered to have filed a request for
             1075      agency action:
             1076          (a) if the person mails the request for agency action, on the date the person is
             1077      considered to have mailed the request for agency action in accordance with Section
             1078      59-1-1404 ; or
             1079          (b) if the person delivers the request for agency action to the commission by a method
             1080      other than mail, on the date the commission receives the request for agency action.
             1081          (7) A person who has not previously filed a timely request for agency action in
             1082      accordance with Subsection (3) may object to a final assessment issued by the commission by:
             1083          (a) paying the tax, fee, or charge; and
             1084          (b) filing a claim for a refund as provided in Section 59-1-1410 .
             1085          Section 10. Section 59-1-703 is amended to read:
             1086           59-1-703. Collection procedure -- Review -- Bond for stay -- Sale of seized
             1087      property.
             1088          (1) (a) If [any liability which] an amount that is due and payable under Sections
             1089      59-1-701 and 59-1-702 is not paid, the [collection shall be made in the same manner as is
             1090      provided for the collection of delinquent taxes in Sections 59-7-526 and 59-7-527 . In
             1091      addition, the commission may issue a warrant of like terms, force, and effect directed to any
             1092      legally authorized representative of the commission. In the execution of the warrant the
             1093      authorized representative shall have all the powers conferred by law upon sheriffs, but is


             1094      entitled to no fee or compensation in excess of actual expenses paid in the performance of
             1095      such duty.] commission shall collect that amount in accordance with Part 14, Assessment,
             1096      Collections, and Refunds Act.
             1097          (b) (i) For purposes of collecting an amount described in Subsection (1)(a), the
             1098      commission may issue a warrant.
             1099          (ii) The commission may direct the warrant described in Subsection (1)(b)(i) to an
             1100      authorized representative of the commission.
             1101          (iii) In executing the warrant described in Subsection (1)(b)(i), the authorized
             1102      representative described in Subsection (1)(b)(ii):
             1103          (A) has all of the powers conferred by law upon a sheriff; and
             1104          (B) may not collect a fee or other compensation for executing the warrant other than
             1105      the actual expenses paid to execute the warrant.
             1106          (2) (a) The appropriateness of [any] a termination or jeopardy assessment shall be
             1107      reviewable under [the] procedures prescribed by the commission by rule made in accordance
             1108      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1109          (b) The amount of [any] a termination or jeopardy assessment is reviewable only in the
             1110      manner prescribed in [Title 59,] Chapter 1, [Parts 5 and 6] Part 5, Petitions for
             1111      Redetermination of Deficiencies, and Part 6, Judicial Review.
             1112          (3) In [any] a proceeding brought to enforce payment of [any] a liability made due and
             1113      payable [by virtue of] under this section [or], Section 59-1-701 , or 59-1-702 , the finding of the
             1114      commission, whether made after notice to the taxpayer or not, [shall be for all purposes] is
             1115      presumptive evidence of jeopardy.
             1116          (4) (a) After a petition [has been] is filed with the commission and when the amount
             1117      [which] that the commission [has determined] determines to be assessable [has become]
             1118      becomes final, any unpaid portion [which has been] that is stayed by bond shall be collected
             1119      as part of the tax upon notice and demand from the commission[, and any remaining portion
             1120      of the assessment shall be abated].
             1121          (b) A portion remaining after the commission collects the amount determined to be


             1122      assessable under Subsection (4)(a) shall be abated.
             1123          (c) If the amount [already collected] the commission collects in accordance with
             1124      Subsection (4)(a) exceeds the amount [which] that should have been assessed, the excess shall
             1125      be credited or refunded to the taxpayer [without the filing of claim].
             1126          (d) If the amount the commission [has determined] determines to be assessable in
             1127      accordance with Subsection (4)(a) is greater than the amount actually assessed, the difference
             1128      shall be assessed, and collected as part of the tax, upon notice and demand by the commission.
             1129          (5) (a) The commission may abate [the] a jeopardy assessment if [it] the commission
             1130      finds that jeopardy does not exist. [The abatement]
             1131          (b) An abatement described in Subsection (5)(a) may not be made after a decision of
             1132      the commission in respect of the deficiency [has been] is rendered or, if no petition is filed
             1133      with the commission, after the expiration of the period for filing a petition.
             1134          (c) The period of limitation on making [assessments and levies] an assessment or levy
             1135      or a proceeding for collection, in respect of [any] a deficiency, shall be determined as if the
             1136      commission had not abated the jeopardy assessment [so abated had not been made] under
             1137      Subsection (5)(a).
             1138          (d) The running of the period of limitation on making an assessment or levy or a
             1139      proceeding for collection shall be suspended from the date of [such] a jeopardy [assessments]
             1140      assessment until the expiration of the 10th day after the jeopardy assessment is abated under
             1141      this Subsection (5).
             1142          (6) (a) The collection of all or [any] a part of [any] a jeopardy assessment may be
             1143      stayed by [filing] posting a bond with the commission [a bond] in the amount and under
             1144      conditions established by the commission. [The taxpayer has the right to waive the stay]
             1145          (b) A taxpayer may waive a stay described in Subsection (6)(a) at any time in respect
             1146      of all or part of the amount covered by the bond.
             1147          (c) If, as a result of [the] a waiver described in Subsection (6)(b), any part of the
             1148      amount covered by the bond is paid, [then the bond shall, at the request of the taxpayer, be
             1149      proportionately reduced.] the commission shall proportionately reduce the bond at the request


             1150      of the taxpayer that waives the stay in accordance with Subsection (6)(b).
             1151          (d) If any portion of [the] a jeopardy assessment is abated, or if a notice of deficiency
             1152      is mailed to [the] a taxpayer in a lesser amount, the bond shall, at the request of the taxpayer,
             1153      be proportionately reduced.
             1154          (7) (a) If a bond is [given before the taxpayer has filed his petition pursuant to Chapter
             1155      1, Part 5,] posted before a taxpayer files a petition for redetermination of a deficiency under
             1156      Section 59-1-501 , the bond shall contain a condition that the amount of the deficiency
             1157      assessment, the collection of which is stayed by the bond, [will] shall be paid on notice and
             1158      demand at any time after the expiration of [such period] the stay, together with interest
             1159      [thereon from] on the deficiency assessment, beginning on the date of the jeopardy notice and
             1160      demand [until] and ending on the date of notice and demand under this Subsection (7)(a).
             1161      [The bond]
             1162          (b) A bond described in Subsection (7)(a) shall be conditioned upon the payment of
             1163      that part of the assessment, [(]collection of which is stayed by the bond[) which is], that is:
             1164          (i) not abated by a decision of the commission; and [has become]
             1165          (ii) final.
             1166          (c) If the commission determines that the amount of a deficiency assessed is greater
             1167      than the amount [which] that should have been assessed, [then] the bond shall[, at the request
             1168      of the taxpayer,] be proportionately reduced [when]:
             1169          (i) at the time the decision of the commission is rendered[.]; and
             1170          (ii) at the request of the taxpayer that posts the bond.
             1171          (8) [When] (a) If a jeopardy assessment is made[, the] under this section, property
             1172      seized for the collection of [the] a tax may not be sold until:
             1173          (i) the commission issues a notice of deficiency [is issued]; and
             1174          (ii) the time for filing a petition for redetermination [has expired. If] expires.
             1175          (b) Except as provided in Subsection (8)(c), if a taxpayer files a petition for
             1176      redetermination [is filed (whether], regardless of whether the taxpayer files the petition for
             1177      redetermination before or after the [making of] commission makes the jeopardy assessment[)],


             1178      the property described in Subsection (8)(a) may not be sold until the commission's decision on
             1179      the petition [becomes] is final [unless].
             1180          (c) For purposes of Subsection (8)(b), the property described in Subsection (8)(a) may
             1181      be sold if:
             1182          (i) the taxpayer consents to the sale[,];
             1183          (ii) the commission determines that the expenses of conservation and maintenance of
             1184      the property would greatly reduce the net proceeds[,] of the sale; or
             1185          (iii) the property is perishable.
             1186          Section 11. Section 59-1-1401 is enacted to read:
             1187     
Part 14. Assessment, Collections, and Refunds Act

             1188          59-1-1401. Title.
             1189          This part is known as the "Assessment, Collections, and Refunds Act."
             1190          Section 12. Section 59-1-1402 is enacted to read:
             1191          59-1-1402. Definitions.
             1192          As used in this part:
             1193          (1) "Administrative cost" means a fee imposed to cover:
             1194          (a) the cost of filing;
             1195          (b) the cost of administering a garnishment; or
             1196          (c) a cost similar to Subsection (1)(a) or (b) as determined by the commission by rule
             1197      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1198          (2) "Books and records" means the following made available in printed or electronic
             1199      format:
             1200          (a) an account;
             1201          (b) a book;
             1202          (c) an invoice;
             1203          (d) a memorandum;
             1204          (e) a paper;
             1205          (f) a record; or


             1206          (g) an item similar to Subsections (2)(a) through (f) as determined by the commission
             1207      by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1208          (3) "Deficiency" means:
             1209          (a) the amount by which a tax, fee, or charge exceeds the difference between:
             1210          (i) the sum of:
             1211          (A) the amount shown as the tax, fee, or charge by a person on the person's return; and
             1212          (B) any amount previously assessed, or collected without assessment, as a deficiency;
             1213      and
             1214          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
             1215      to that tax, fee, or charge; or
             1216          (b) if a person does not show an amount as a tax, fee, or charge on the person's return,
             1217      or if a person does not make a return, the amount by which the tax, fee, or charge exceeds:
             1218          (i) the amount previously assessed, or collected without assessment, as a deficiency;
             1219      and
             1220          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
             1221      to that tax, fee, or charge.
             1222          (4) "Garnishment" means any legal or equitable procedure through which one or more
             1223      of the following are required to be withheld for payment of an amount a person owes:
             1224          (a) an asset of the person held by another person; or
             1225          (b) the earnings of the person.
             1226          (5) "Liability" means the following that a person is required to remit to the
             1227      commission:
             1228          (a) a tax, fee, or charge;
             1229          (b) an addition to a tax, fee, or charge;
             1230          (c) an administrative cost;
             1231          (d) interest that accrues in accordance with Section 59-1-402 ; or
             1232          (e) a penalty that accrues in accordance with Section 59-1-401 .
             1233          (6) (a) Subject to Subsection (6)(b), "mathematical error" is as defined in Section


             1234      6213(g)(2), Internal Revenue Code.
             1235          (b) The reference to Section 6213(g)(2), Internal Revenue Code, in Subsection (6)(a)
             1236      means:
             1237          (i) the reference to Section 6213(g)(2), Internal Revenue Code, in effect for the taxable
             1238      year; or
             1239          (ii) a corresponding or comparable provision of the Internal Revenue Code as
             1240      amended, redesignated, or reenacted.
             1241          (7) (a) Except as provided in Subsection (7)(b), "tax, fee, or charge" means a tax, fee,
             1242      or charge the commission administers under:
             1243          (i) this title;
             1244          (ii) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             1245          (iii) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             1246          (iv) Section 19-6-410.5 ;
             1247          (v) Section 19-6-714 ;
             1248          (vi) Section 19-6-805 ;
             1249          (vii) Section 69-2-5 ;
             1250          (viii) Section 69-2-5.5 ; or
             1251          (ix) Section 69-2-5.6 .
             1252          (b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             1253          (i) Chapter 2, Property Tax Act;
             1254          (ii) Chapter 3, Tax Equivalent Property Act; or
             1255          (iii) Chapter 4, Privilege Tax.
             1256          (8) "Transferee" means:
             1257          (a) a devisee;
             1258          (b) a distributee;
             1259          (c) a donee;
             1260          (d) an heir;
             1261          (e) a legatee; or


             1262          (f) a person similar to Subsections (8)(a) through (e) as determined by the commission
             1263      by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1264          Section 13. Section 59-1-1403 is enacted to read:
             1265          59-1-1403. Commission to collect a tax, fee, or charge -- Receipt for tax, fee, or
             1266      charge paid -- Additional remedies -- Collection agents and counsel -- Action by attorney
             1267      general or county attorney -- Commission rulemaking authority.
             1268          (1) Except as otherwise provided in this title, the commission shall collect a tax, fee,
             1269      or charge.
             1270          (2) The commission may designate an agent to collect a tax, fee, or charge.
             1271          (3) The commission shall, upon request, give a receipt for a tax, fee, or charge the
             1272      commission collects.
             1273          (4) (a) A remedy provided in this part is in addition to other existing remedies.
             1274          (b) An action taken by the commission may not be construed to be an election on the
             1275      part of the state or an officer of the state to pursue a remedy under this part to the exclusion of
             1276      another remedy.
             1277          (5) The commission may:
             1278          (a) retain counsel for the purpose of collecting an amount the commission assesses
             1279      against a person who is not a resident of this state;
             1280          (b) establish the compensation of an agent described in Subsection (2) or counsel
             1281      described in Subsection (5)(a) to be paid out of money appropriated or otherwise lawfully
             1282      available for payment to the agent or counsel; and
             1283          (c) require a bond or other security for an agent described in Subsection (2) or counsel
             1284      described in Subsection (5)(a) in a form and amount the commission considers appropriate.
             1285          (6) (a) The commission shall represent the state in a matter pertaining to the collection
             1286      of a tax, fee, or charge.
             1287          (b) The commission may institute a proceeding to enforce a judgment allowing for the
             1288      collection of a liability in the district court of a county in which is located a portion of
             1289      property against which collection is sought.


             1290          (c) For purposes of Subsection (6)(b), the commission may request that the following
             1291      assist the commission:
             1292          (i) the attorney general; or
             1293          (ii) a county attorney.
             1294          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1295      the commission may by rule establish a collection procedure:
             1296          (a) in addition to the methods of collecting a liability provided in this title;
             1297          (b) that is consistent with this part;
             1298          (c) that uses a return, warrant, or other reasonable document or method; and
             1299          (d) that is necessary in collecting a liability.
             1300          Section 14. Section 59-1-1404 is enacted to read:
             1301          59-1-1404. Definition -- Mailing procedures -- Rulemaking authority --
             1302      Commission mailing requirements.
             1303          (1) As used in this section, "Section 7502, Internal Revenue Code" means:
             1304          (a) Section 7502, Internal Revenue Code, in effect for the taxable year; or
             1305          (b) a corresponding or comparable provision to Section 7502, Internal Revenue Code,
             1306      as amended, redesignated, or reenacted.
             1307          (2) If the commission or a person is required to mail a document under this part:
             1308          (a) the commission or the person shall mail the document using:
             1309          (i) the United States Postal Service; or
             1310          (ii) a delivery service the commission describes or designates in accordance with any
             1311      rules the commission makes as authorized by Subsection (3); and
             1312          (b) the document is considered to be mailed:
             1313          (i) for a document that is mailed using the method described in Subsection (2)(a)(i),
             1314      on the date the document is postmarked; or
             1315          (ii) for a document that is mailed using the method described in Subsection (2)(a)(ii),
             1316      on the date the delivery service records or marks the document as having been received by the
             1317      delivery service for delivery in accordance with any rules the commission makes as authorized


             1318      by Subsection (3).
             1319          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1320      the commission may make rules:
             1321          (a) describing or designating one or more delivery services the commission or a person
             1322      may use to mail a document under this part if a delivery service the commission describes or
             1323      specifies is consistent with the definition of "designated delivery service" in Section 7502,
             1324      Internal Revenue Code; or
             1325          (b) providing procedures or requirements for determining the date a delivery service
             1326      records or marks a document as having been received by the delivery service for delivery if
             1327      those rules are consistent with Section 7502, Internal Revenue Code.
             1328          (4) Subject to Subsection (5), if the commission is required to mail a notice to a
             1329      person under this part, the commission shall mail the notice to the person at the person's
             1330      last-known address as shown on the records of the commission.
             1331          (5) In the case of a joint return filed by a husband and wife under Chapter 10,
             1332      Individual Income Tax Act, if the commission is notified in writing by either spouse that
             1333      separate residences have been established, the commission shall mail a duplicate of the joint
             1334      notice to each spouse at each spouse's last-known address.
             1335          Section 15. Section 59-1-1405 is enacted to read:
             1336          59-1-1405. Notice of deficiency -- Notice of assessment -- Amended return --
             1337      Exception.
             1338          (1) Except as provided in Subsection (3) or (5), the commission shall mail a notice of
             1339      deficiency to a person in accordance with Section 59-1-1404 if the commission finds there is:
             1340          (a) a deficiency in a tax, fee, or charge imposed; or
             1341          (b) an increase or decrease in a deficiency.
             1342          (2) A notice of deficiency described in Subsection (1) shall contain:
             1343          (a) the details of the deficiency; and
             1344          (b) the manner of computing the tax.
             1345          (3) If the commission estimates an amount of tax, fee, or charge due under Subsection


             1346      59-1-1406 (2), the commission:
             1347          (a) shall mail a notice of deficiency:
             1348          (i) to the person for which the commission estimates the amount of tax, fee, or charge
             1349      due; and
             1350          (ii) in accordance with Section 59-1-1404 ; or
             1351          (b) shall:
             1352          (i) mail a notice to the person for which the commission estimates the amount of tax,
             1353      fee, or charge due:
             1354          (A) that the amount the commission estimates as a tax, fee, or charge is an assessment;
             1355      and
             1356          (B) in accordance with Section 59-1-1404 ; and
             1357          (ii) provide in the notice described in Subsection (3)(b)(i) that if the person files an
             1358      amended return within the time period provided in Section 59-1-1410 , the commission shall
             1359      replace the assessment with the amount shown on the person's amended return.
             1360          (4) If the commission mails notice to a person under Subsection (3)(b), the person may
             1361      file an amended return within the period provided in Section 59-1-1410 to replace the
             1362      assessment of tax.
             1363          (5) If the commission makes a jeopardy assessment under Part 7, Termination and
             1364      Jeopardy Assessments Procedure:
             1365          (a) the commission is not required to mail a notice of deficiency described in
             1366      Subsection (1) to the person against which the commission makes the jeopardy assessment;
             1367      and
             1368          (b) the jeopardy assessment is subject to the procedures and requirements of Part 7,
             1369      Termination and Jeopardy Assessments Procedure.
             1370          Section 16. Section 59-1-1406 is enacted to read:
             1371          59-1-1406. Record retention -- Commission estimates tax if person fails to file a
             1372      return.
             1373          (1) A person subject to a tax, fee, or charge shall:


             1374          (a) keep in a form prescribed by the commission books and records that are necessary
             1375      to determine the amount of a tax, fee, or charge the person owes;
             1376          (b) keep books and records described in Subsection (1)(a) for the time period during
             1377      which an assessment may be made under Section 59-1-1408 ; and
             1378          (c) open the person's books and records for examination at any time by:
             1379          (i) the commission; or
             1380          (ii) an agent or representative the commission designates.
             1381          (2) (a) If a person required to file a return with the commission fails to file the return
             1382      with the commission, the commission may estimate the tax, fee, or charge due from the best
             1383      information or knowledge the commission can obtain.
             1384          (b) An estimate the commission makes under Subsection (2)(a) is considered to be a
             1385      return filed on the date the commission makes the estimate.
             1386          (3) For the purpose of ascertaining the correctness of a return or for estimating a tax,
             1387      fee, or charge due in accordance with Subsection (2)(a), the commission may:
             1388          (a) examine the books and records bearing upon the matter required to be included in
             1389      a return;
             1390          (b) authorize an agent or representative designated by the commission to examine the
             1391      books and records bearing upon the matter required to be included in a return;
             1392          (c) require the attendance of:
             1393          (i) an officer or employee of a person required to make a return; or
             1394          (ii) a person having knowledge of a pertinent fact;
             1395          (d) take testimony; or
             1396          (e) require any other necessary information.
             1397          Section 17. Section 59-1-1407 is enacted to read:
             1398          59-1-1407. Mathematical errors.
             1399          (1) The commission shall correct a mathematical error.
             1400          (2) The commission shall provide notice to a person if:
             1401          (a) because of a mathematical error appearing on a return, an amount of tax, fee, or


             1402      charge in excess of that shown upon the return is due; and
             1403          (b) an assessment of the amount of tax, fee, or charge is or will be made on the basis
             1404      of what would have been the correct amount of tax, fee, or charge but for the mathematical
             1405      error.
             1406          (3) The notice required by Subsection (2):
             1407          (a) shall describe the mathematical error; and
             1408          (b) is not considered to be a notice of deficiency.
             1409          (4) For purposes of Subsection (2):
             1410          (a) there is no restriction upon the assessment and collection of an amount of tax, fee,
             1411      or charge described in Subsection (2); and
             1412          (b) the person described in Subsection (2) does not have a right to:
             1413          (i) file a petition to the commission on the basis of a notice provided under Subsection
             1414      (2); or
             1415          (ii) apply for review by a district court or the Utah Supreme Court of the determination
             1416      of a mathematical error by the commission.
             1417          Section 18. Section 59-1-1408 is enacted to read:
             1418          59-1-1408. Assessments.
             1419          (1) Except as provided in Subsections (2) through (4), an assessment is made on the
             1420      date a liability is posted to the records of the commission.
             1421          (2) Except as provided in Subsection (4), for purposes of a liability for which the
             1422      commission mails a notice of deficiency to a person in accordance with Section 59-1-1405 , an
             1423      assessment is made:
             1424          (a) if a person has not filed a petition for redetermination of a deficiency under Section
             1425      59-1-501 , on the date:
             1426          (i) (A) 30 days after the day on which the commission mails the notice of deficiency to
             1427      the person; or
             1428          (B) 90 days after the day on which the commission mails the notice of deficiency to
             1429      the person if the notice is addressed to a person outside the United States or the District of


             1430      Columbia; or
             1431          (ii) the person in writing:
             1432          (A) agrees with the commission on the existence and amount of the liability; and
             1433          (B) consents to the assessment of the liability; or
             1434          (b) if a person files a petition for redetermination of a deficiency under Section
             1435      59-1-501 , on the date the liability resulting from a final commission decision is posted to the
             1436      records of the commission.
             1437          (3) Except as provided in Subsection (4), for purposes of a notice of proposed penalty
             1438      under Section 59-1-302 or Subsection 59-1-401 (7), an assessment is made:
             1439          (a) if a person has not filed a petition for redetermination of a deficiency under Section
             1440      59-1-501 , on the date:
             1441          (i) (A) 30 days after the day on which the commission mails the notice of proposed
             1442      penalty to the person; or
             1443          (B) 90 days after the day on which the commission mails the notice of proposed
             1444      penalty to the person if the notice is addressed to a person outside the United States or the
             1445      District of Columbia; or
             1446          (ii) the person in writing:
             1447          (A) agrees with the commission on the existence and amount of the liability; and
             1448          (B) consents to the assessment of the liability; or
             1449          (b) if a person files a petition for redetermination of a deficiency under Section
             1450      59-1-501 , on the date the liability resulting from a final commission decision is posted to the
             1451      records of the commission.
             1452          (4) In the case of interest under Section 59-1-402 that accrues to a tax, fee, or charge,
             1453      an assessment is considered to have been made on the date the tax, fee, or charge is assessed.
             1454          (5) The commission may at any time within the time period prescribed for assessment
             1455      under Section 59-1-1410 , increase or decrease an assessment if the commission ascertains that
             1456      the assessment is imperfect or incomplete in a material respect.
             1457          Section 19. Section 59-1-1409 is enacted to read:


             1458          59-1-1409. Definition -- Recomputation of amounts due -- Refunds allowed.
             1459          (1) As used in this section, "overpayment" means the amount by which a tax, fee, or
             1460      charge a person pays exceeds the amount of tax, fee, or charge the person owes.
             1461          (2) If the commission determines that the correct amount of a tax, fee, or charge a
             1462      person is required to remit is greater or less than the amount shown to be due on a return, the
             1463      commission shall:
             1464          (a) recompute the tax, fee, or charge; and
             1465          (b) mail notice to the person:
             1466          (i) that the commission recomputed the tax, fee, or charge; and
             1467          (ii) in accordance with Section 59-1-1404 .
             1468          (3) If the amount of a tax, fee, or charge a person pays exceeds the amount of tax, fee,
             1469      or charge the person owes, the commission shall:
             1470          (a) credit the overpayment against any liability the person owes; and
             1471          (b) refund any balance to:
             1472          (i) the person; or
             1473          (ii) (A) the person's assign;
             1474          (B) the person's personal representative;
             1475          (C) the person's successor; or
             1476          (D) a person similar to Subsections (3)(b)(ii)(A) through (C) as determined by the
             1477      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1478      Rulemaking Act.
             1479          (4) The commission may not credit or refund interest on an overpayment to a person if
             1480      the commission determines that the overpayment was made for the purpose of investment.
             1481          (5) If the commission erroneously determines an amount of tax, fee, or charge to be
             1482      due from a person, the commission shall:
             1483          (a) authorize the amount to be cancelled upon the commission's records; and
             1484          (b) mail notice to the person:
             1485          (i) that the commission cancelled the amount upon the commission's records; and


             1486          (ii) in accordance with Section 59-1-1404 .
             1487          Section 20. Section 59-1-1410 is enacted to read:
             1488          59-1-1410. Action for collection of tax, fee, or charge -- Action for refund or
             1489      credit of tax, fee, or charge -- Denial of refund claim under appeal -- Appeal of denied
             1490      refund claim.
             1491          (1) (a) Except as provided in Subsections (3) through (7) and Sections 59-5-114 ,
             1492      59-7-519 , 59-10-536 , and 59-11-113 , the commission shall assess a tax, fee, or charge within
             1493      three years after the day on which a person files a return.
             1494          (b) Except as provided in Subsections (3) through (7), if the commission does not
             1495      assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the
             1496      commission may not commence a proceeding to collect the tax, fee, or charge.
             1497          (2) (a) Except as provided in Subsection (2)(b), for purposes of this part, a return filed
             1498      before the last day prescribed by statute or rule for filing the return is considered to be filed on
             1499      the last day for filing the return.
             1500          (b) A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is
             1501      considered to be filed on April 15 of the succeeding calendar year if the return:
             1502          (i) is for a period ending with or within a calendar year; and
             1503          (ii) is filed before April 15 of the succeeding calendar year.
             1504          (3) The commission may assess a tax, fee, or charge or commence a proceeding for the
             1505      collection of a tax, fee, or charge at any time if:
             1506          (a) a person:
             1507          (i) files a:
             1508          (A) false return with intent to evade; or
             1509          (B) fraudulent return with intent to evade; or
             1510          (ii) fails to file a return; or
             1511          (b) the commission estimates the amount of tax, fee, or charge due in accordance with
             1512      Subsection 59-1-1406 (2).
             1513          (4) The commission may extend the period to make an assessment or to commence a


             1514      proceeding to collect a tax, fee, or charge if:
             1515          (a) the three-year period under Subsection (1) has not expired; and
             1516          (b) the commission and the person sign a written agreement:
             1517          (i) authorizing the extension; and
             1518          (ii) providing for the length of the extension.
             1519          (5) The commission may make an assessment as provided in Subsection (6) if:
             1520          (a) the commission delays an audit at the request of a person;
             1521          (b) the person subsequently refuses to agree to an extension request by the
             1522      commission; and
             1523          (c) the three-year period under Subsection (1) expires before the commission
             1524      completes the audit.
             1525          (6) An assessment under Subsection (5) shall be:
             1526          (a) for the time period for which the commission could not make the assessment
             1527      because of the expiration of the three-year period; and
             1528          (b) in an amount equal to the difference between:
             1529          (i) the commission's estimate of the amount of tax, fee, or charge the person would
             1530      have been assessed for the time period described in Subsection (6)(a); and
             1531          (ii) the amount of tax, fee, or charge the person actually paid for the time period
             1532      described in Subsection (6)(a).
             1533          (7) If a person pays a liability more than once or the commission erroneously receives,
             1534      collects, or computes a liability, the commission shall:
             1535          (a) credit the liability against any amount of liability the person owes; and
             1536          (b) refund any balance to:
             1537          (i) the person; or
             1538          (ii) (A) the person's assign;
             1539          (B) the person's personal representative;
             1540          (C) the person's successor; or
             1541          (D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the


             1542      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1543      Rulemaking Act.
             1544          (8) (a) Except as provided in Subsection (8)(b) or Section 19-2-124 , 59-7-522 ,
             1545      59-10-529 , or 59-12-110 , the commission may not make a credit or refund unless a person
             1546      files a claim with the commission within the later of:
             1547          (i) three years from the due date of the return, including the period of any extension of
             1548      time provided in statute for filing the return; or
             1549          (ii) two years from the date the tax was paid.
             1550          (b) The commission shall extend the time period for a person to file a claim under
             1551      Subsection (8)(a) if:
             1552          (i) the time period described in Subsection (8)(a) has not expired; and
             1553          (ii) the commission and the person sign a written agreement:
             1554          (A) authorizing the extension; and
             1555          (B) providing for the length of the extension.
             1556          (9) If the commission denies a claim for a credit or refund, a person may request a
             1557      redetermination of the denial by filing a petition or request for agency action with the
             1558      commission:
             1559          (a) (i) within a 30-day period after the day on which the commission mails a notice of
             1560      denial for the claim for credit or refund; or
             1561          (ii) within a 90-day period after the day on which the commission mails a notice of
             1562      denial for the claim for credit or refund, if the notice is addressed to a person outside the
             1563      United States or the District of Columbia; and
             1564          (b) in accordance with:
             1565          (i) Section 59-1-501 ; and
             1566          (ii) Title 63G, Chapter 4, Administrative Procedures Act.
             1567          (10) The action of the commission on a person's petition for redetermination of a
             1568      denial of a claim for credit or refund is final 30 days after the day on which the commission
             1569      sends the commission's decision or order, unless the person seeks judicial review.


             1570          Section 21. Section 59-1-1411 is enacted to read:
             1571          59-1-1411. Notice and demand.
             1572          (1) The commission shall as soon as practicable mail notice and demand to a person
             1573      who owes a liability that has been assessed but remains unpaid.
             1574          (2) (a) The notice and demand required by Subsection (1) shall:
             1575          (i) except as provided in Subsection (2)(b), state the amount of the liability;
             1576          (ii) demand payment of the liability; and
             1577          (iii) be mailed in accordance with Section 59-1-1404 .
             1578          (b) For purposes of Subsection (2)(a)(i), the notice and demand shall:
             1579          (i) state the amount of interest and penalties that have accrued as of the date of the
             1580      notice and demand; and
             1581          (ii) include a statement that interest and penalties may continue to accrue in
             1582      accordance with Sections 59-1-401 and 59-1-402 .
             1583          (3) Payment for a liability may not be demanded before the last day prescribed for
             1584      payment of the liability, including an extension, unless the commission determines under
             1585      Section 59-1-701 that collection of the liability would be jeopardized by delay.
             1586          (4) Upon issuance of the notice and demand described in this section, a person that
             1587      owes a liability shall pay the liability at the place and time stated in the notice and demand.
             1588          Section 22. Section 59-1-1412 is enacted to read:
             1589          59-1-1412. Applicability of section -- Delinquent payment -- Notice to third
             1590      parties.
             1591          (1) (a) Except as provided in Subsection (1)(b), this section applies to a delinquency in
             1592      the payment of a liability.
             1593          (b) This section does not apply to a garnishment.
             1594          (2) If a person is delinquent in the payment of a liability, the commission may mail
             1595      notice of the amount of the delinquency:
             1596          (a) to a person that at the time of the receipt of the notice has in that person's
             1597      possession, under that person's control, or owing to that person:


             1598          (i) a credit of the person owing the liability;
             1599          (ii) personal property of the person owing the liability; or
             1600          (iii) a debt of the person owing the liability; and
             1601          (b) in accordance with Section 59-1-1404 .
             1602          (3) A person to which the commission mails notice in accordance with this section
             1603      shall, within ten days after the date the commission mails the notice, advise the commission of
             1604      the following in the person's possession, under the person's control, or owing to the person:
             1605          (a) a credit of the person owing the liability;
             1606          (b) personal property of the person owing the liability; or
             1607          (c) a debt of the person owing the liability.
             1608          (4) A person to which the commission mails notice in accordance with this section
             1609      may not transfer or make any other disposition of a credit, personal property, or debt described
             1610      in Subsection (3) until the sooner of:
             1611          (a) the commission consents to the transfer or disposition; or
             1612          (b) 20 days elapse after the day on which the person provides the commission the
             1613      information required by Subsection (3).
             1614          Section 23. Section 59-1-1413 is enacted to read:
             1615          59-1-1413. Lien for a liability.
             1616          (1) In addition to Section 40-6-14 , 59-5-108 , 59-5-208 , 59-11-110 , 59-12-112 ,
             1617      59-13-302 , or 59-13-311 , if a person that owes a liability fails to pay that liability after the
             1618      commission mails notice and demand under Section 59-1-1411 , the amount of liability, plus
             1619      any administrative cost, is a lien in favor of the state upon all property and rights to property,
             1620      whether real or personal, belonging to that person.
             1621          (2) Unless another date is specifically established by law, the lien imposed by this
             1622      section:
             1623          (a) arises at the time the commission makes the assessment of the tax, fee, or charge
             1624      that is part of the liability; and
             1625          (b) continues until the liability and administrative costs described in Subsection (1), or


             1626      a judgment against the person arising from that liability and administrative costs:
             1627          (i) is satisfied; or
             1628          (ii) is unenforceable because the time period described in Subsection 59-1-1414 (8) has
             1629      elapsed.
             1630          Section 24. Section 59-1-1414 is enacted to read:
             1631          59-1-1414. Warrant procedures -- Judgment -- Notice requirements after filing
             1632      warrant.
             1633          (1) Except as provided in Subsections (3) and (4), if a person who owes a liability fails
             1634      to pay that liability within 30 days after the day on which the commission mails notice and
             1635      demand under Section 59-1-1411 , the commission may:
             1636          (a) file a warrant with the clerk of:
             1637          (i) except as provided in Subsection (1)(a)(ii), the district court of any county in which
             1638      that person has real or personal property; or
             1639          (ii) if the person is not a resident of this state, the Third District Court in Salt Lake
             1640      City; or
             1641          (b) issue a warrant in duplicate under its official seal directed to the sheriff of a county
             1642      requiring the sheriff to:
             1643          (i) levy upon and sell the person's real and personal property for the payment of the
             1644      liability, plus the cost of executing the warrant; and
             1645          (ii) return to the commission within 60 days:
             1646          (A) the warrant; and
             1647          (B) the money collected under the warrant.
             1648          (2) (a) A sheriff that receives a warrant under Subsection (1) shall within five days file
             1649      a duplicate copy of the warrant with the clerk of the district court of the appropriate county.
             1650          (b) (i) The sheriff shall execute the warrant in the same manner prescribed by law for
             1651      an execution issued against property in accordance with a judgment by a court.
             1652          (ii) An execution of a warrant described in Subsection (2)(b)(i) has the same effect as
             1653      an execution issued against property in accordance with a judgment by a court.


             1654          (iii) A sheriff that executes a warrant under Subsection (2)(b)(i) shall receive fees for
             1655      the sheriff's services in executing the warrant as if the sheriff were executing a judgment by a
             1656      court.
             1657          (3) The commission may file a warrant without regard to the 30-day period provided
             1658      in Subsection (1) if the commission finds that the collection of a liability that a person owes is
             1659      in jeopardy.
             1660          (4) The commission may not file a warrant under this section more than three years
             1661      after the assessment of the tax, fee, or charge that is a portion of a liability.
             1662          (5) A clerk of a district court that receives a warrant under this section shall enter in
             1663      the judgment docket:
             1664          (a) in the column for judgment debtors, the name of the person stated in the warrant;
             1665      and
             1666          (b) in appropriate columns:
             1667          (i) the amount for which the warrant is filed; and
             1668          (ii) the date the warrant is filed.
             1669          (6) Notwithstanding Section 78B-5-202 , the liability that serves as the basis for a
             1670      warrant is a binding lien upon the real, personal, and other property of the person to the same
             1671      extent as other judgments docketed in the office of the clerk of the district court.
             1672          (7) When a warrant is filed with the clerk of a district court in accordance with this
             1673      section, the commission is considered to have obtained a judgment against a person for a
             1674      liability.
             1675          (8) Notwithstanding Section 78B-5-202 , a judgment described in Subsection (7) is
             1676      effective for a period ending ten years after the date the amount for which the warrant is filed
             1677      is assessed in accordance with Section 59-1-1408 .
             1678          (9) The commission may not renew a judgment described in Subsection (7).
             1679          (10) The commission may authorize an action or proceeding to collect or enforce a
             1680      judgment described in Subsection (7) in any place and by any procedure that a civil judgment
             1681      of the Utah Supreme Court may be collected or enforced if:


             1682          (a) a warrant is filed under this section against a person who is not a resident of this
             1683      state; and
             1684          (b) the commission determines that the person does not have sufficient real or personal
             1685      property in the state to pay the person's liability.
             1686          (11) After filing a warrant under Section 59-1-1414 , the commission shall follow the
             1687      notice requirements of Section 38-12-102 .
             1688          Section 25. Section 59-1-1415 is enacted to read:
             1689          59-1-1415. Release of lien.
             1690          The commission may release property from a lien placed under this part:
             1691          (1) if the commission determines that the interests of the state will not be jeopardized
             1692      by the release; and
             1693          (2) under conditions the commission may require.
             1694          Section 26. Section 59-1-1416 is enacted to read:
             1695          59-1-1416. Transferees.
             1696          (1) (a) If a transferee is obligated at law or equity for an amount of a liability of a
             1697      person that originally owes a liability, the transferee is subject to this part for the assessment,
             1698      payment, and collection of the amount of the liability for which the transferee has an
             1699      obligation.
             1700          (b) The period of limitations for an assessment against a transferee is extended:
             1701          (i) subject to the other provisions of this section, by one year for each successive
             1702      transfer:
             1703          (A) in the order of transfer; and
             1704          (B) beginning from the person that originally owes the liability to the transferee
             1705      involved; and
             1706          (ii) by not more than three years in the aggregate.
             1707          (2) (a) Subject to Subsection (2)(b), if before the expiration of the period of limitations
             1708      for assessment against a transferee, the commission files a claim in court against the person
             1709      that originally owes the liability or the last preceding transferee, based upon the liability the


             1710      person originally owes, the period of limitation for assessment against the transferee may not
             1711      expire before one year after the claim is finally allowed, disallowed, or otherwise disposed of.
             1712          (b) (i) Subject to Subsection (2)(b)(ii), if before expiration of the time period
             1713      described in Subsection (1)(b) or (2)(a) for an assessment against a transferee, the commission
             1714      and the transferee agree in writing to an assessment after the time period described in
             1715      Subsection (1)(b) or (2)(a), the commission may make an assessment against the transferee at
             1716      any time before the expiration of the time period to which the commission and transferee agree
             1717      in writing.
             1718          (ii) A time period that the commission and a transferee agree upon in writing in
             1719      accordance with Subsection (2)(b)(i) may be extended by written agreement:
             1720          (A) between the commission and the transferee; and
             1721          (B) made before the expiration of the time period that the commission and the
             1722      transferee previously agreed upon.
             1723          (c) An agreement described in Subsection (2)(b)(i) or an extension described in
             1724      Subsection (2)(b)(ii) is considered to be an agreement or extension described in Section
             1725      59-1-1410 for purposes of determining the period of limitation on a credit or refund to a
             1726      transferee of an overpayment of a liability:
             1727          (i) made by:
             1728          (A) the transferee; or
             1729          (B) the transferor; and
             1730          (ii) for which the transferee is allowed a credit or refund.
             1731          (d) If an agreement described in Subsection (2)(b)(i) or an extension described in
             1732      Subsection (2)(b)(ii) is executed after the expiration of the period of limitation for assessment
             1733      against the person that originally owes a liability, the time period in which a credit or refund
             1734      may be claimed shall be increased by the time period:
             1735          (i) beginning on the date of the expiration of the period of limitation for assessment
             1736      against the person that originally owes the liability; and
             1737          (ii) ending on the date the agreement described in Subsection (2)(b)(i) or the extension


             1738      described in Subsection (2)(b)(ii) is executed.
             1739          (3) If the person that originally owes a liability is deceased, the period of limitation for
             1740      assessment of a liability against that person is the period that would be in effect had the person
             1741      lived.
             1742          (4) (a) Subject to Subsection (4)(b) and notwithstanding Section 59-1-403 , the
             1743      commission shall make available to a transferee information necessary to enable the transferee
             1744      to determine the liability:
             1745          (i) of the person that originally owes the liability; or
             1746          (ii) a preceding transferee owes.
             1747          (b) The commission may not take an action under Subsection (4)(a) that imposes an
             1748      undue hardship to the person that originally owes the liability or a preceding transferee.
             1749          Section 27. Section 59-1-1417 is enacted to read:
             1750          59-1-1417. Burden of proof.
             1751          In a proceeding before the commission, the burden of proof is on the petitioner except
             1752      for determining the following, in which the burden of proof is on the commission:
             1753          (1) whether the petitioner committed fraud with intent to evade a tax, fee, or charge;
             1754          (2) whether the petitioner is obligated as the transferee of property of the person that
             1755      originally owes a liability or a preceding transferee, but not to show that the person that
             1756      originally owes a liability is obligated for the liability; and
             1757          (3) whether the petitioner is liable for an increase in a deficiency if the increase is
             1758      asserted initially after a notice of deficiency is mailed in accordance with Section 59-1-1405
             1759      and a petition under Part 5, Petitions for Redetermination of Deficiencies, is filed, unless the
             1760      increase in the deficiency is the result of a change or correction of federal taxable income:
             1761          (a) required to be reported; and
             1762          (b) of which the commission has no notice at the time the commission mails the notice
             1763      of deficiency.
             1764          Section 28. Section 59-1-1418 is enacted to read:
             1765          59-1-1418. Suspension of running of statute of limitations.


             1766          (1) The time period allowed for making an assessment or commencing a proceeding
             1767      under Section 59-1-1410 shall be extended by the time period during which the commission is
             1768      prohibited by law from making an assessment or commencing a proceeding for collection, plus
             1769      60 days.
             1770          (2) The time period allowed for commencing a proceeding under Section 59-1-1410
             1771      shall be extended by the time period during which the commencement of the proceeding is
             1772      stayed by injunction or statutory prohibition.
             1773          Section 29. Section 59-1-1419 is enacted to read:
             1774          59-1-1419. Venue -- Section does not affect right to seek judicial review.
             1775          (1) If the commission commences a proceeding relating to the following, the venue is
             1776      the Third District Court in Salt Lake City:
             1777          (a) failure to pay a liability;
             1778          (b) failure to file a return; or
             1779          (c) failure to supply information.
             1780          (2) Nothing in this section affects a right to seek judicial review in accordance with
             1781      Part 6, Judicial Review.
             1782          Section 30. Section 59-6-104 is amended to read:
             1783           59-6-104. Commission administration of chapter -- Rulemaking authority.
             1784          [(1) The provisions of Title 59, Chapter 10, applicable to withholding of taxes by
             1785      employers under Title 59, Chapter 10, Part 4, relating to records, penalties, interest,
             1786      deficiencies, overpayments, refunds, assessments, venue, and civil and criminal penalties are
             1787      applicable to the withholding and payment of withheld taxes under this chapter to the extent
             1788      that those provisions are consistent with this chapter.]
             1789          (1) To the extent the following are consistent with this chapter, the commission shall
             1790      administer this chapter in accordance with:
             1791          (a) Chapter 1, General Taxation Policies; and
             1792          (b) Chapter 10, Part 4, Withholding of Tax.
             1793          (2) [The commission may adopt rules pursuant to] In accordance with Title 63G,


             1794      Chapter 3, [the] Utah Administrative Rulemaking Act, the commission may make rules
             1795      necessary to effectuate the purposes of this chapter.
             1796          Section 31. Section 59-7-519 is amended to read:
             1797           59-7-519. Period of limitation for making assessments -- Change, correction, or
             1798      amendment of federal income tax -- Duty of corporation to notify state -- Extensions.
             1799          (1) (a) [Except as provided in Section 59-7-520 , the] Subject to the other provisions of
             1800      this section, the amount of taxes imposed by this chapter shall be assessed within three years
             1801      after [the] a return [was] is filed[, and no proceeding in the court].
             1802          (b) After the expiration of the time period described in Subsection (1)(a), a proceeding
             1803      in court may not be made without assessment for the collection of [such taxes shall be begun
             1804      after the expiration of such period] the taxes described in Subsection (1)(a).
             1805          (2) In the case of a deficiency attributable to the application of a net loss carryback,
             1806      [this] the deficiency may be assessed at any time before the expiration of the period within
             1807      which a deficiency for the taxable year of the net loss [which] that results in the carryback may
             1808      be assessed.
             1809          (3) If the amount of federal taxable income for any year of any corporation as returned
             1810      to the United States treasury department is changed or corrected by the commissioner of
             1811      internal revenue or other officer of the United States or other competent authority, or where a
             1812      renegotiation of a contract or subcontract with the United States results in a change of federal
             1813      taxable income, [that] a taxpayer shall:
             1814          (a) report the change or corrected net income within 90 days after the final
             1815      determination of the change or correction as required to the commission; and [shall]
             1816          (b) concede the accuracy of the determination or state [wherein it] where the
             1817      determination is erroneous.
             1818          (4) Any corporation filing an amended return with the United States treasury
             1819      department shall also file, within 90 days [thereafter] after the corporation files the amended
             1820      return with the United States treasury department, an amended return with the commission
             1821      [which shall contain] that contains the information [as it shall require] the commission


             1822      requires.
             1823          [(4)] (5) If a corporation fails to report a change or correction by the commissioner of
             1824      internal revenue, other officer of the United States, or other competent authority or fails to file
             1825      an amended return, any deficiency resulting from the [adjustments] change or correction may
             1826      be assessed and collected within three years after [said] the change, correction, or amended
             1827      return is reported to or filed with the federal government.
             1828          [(5)] (6) If any corporation agrees with the commissioner of internal revenue for an
             1829      extension, or [renewals thereof] a renewal of an extension, of the period for proposing and
             1830      assessing deficiencies in federal income tax for any year, the period for sending [notices] a
             1831      notice of proposed Utah tax deficiencies for [such year shall be] that year is the later of:
             1832          (a) three years after the return [was] is filed; or
             1833          (b) six months after the date of the expiration of the agreed period for assessing
             1834      deficiencies in federal income tax[, whichever period expires the later].
             1835          (7) The extensions described in Section 59-1-1418 apply to this section.
             1836          Section 32. Section 59-7-522 is amended to read:
             1837           59-7-522. Overpayments.
             1838          [(1) Where there has been an overpayment of any tax imposed by this chapter, the
             1839      amount of such overpayment and interest calculated at the rate and in the manner prescribed in
             1840      Section 59-1-402 shall be credited against any tax then due from the taxpayer under this
             1841      chapter, and any balance shall be refunded immediately to the taxpayer.]
             1842          [(2) (a) Except as provided in Subsection (2)(b), the commission may not make a credit
             1843      or refund unless the taxpayer files a claim with the commission within three years from the
             1844      date of overpayment.]
             1845          [(b) Notwithstanding Subsection (2)(a), beginning on July 1, 1998, the commission
             1846      shall extend the period for a taxpayer to file a claim under Subsection (2)(a) if:]
             1847          [(i) the three-year period under Subsection (2)(a) has not expired; and]
             1848          [(ii) the commission and the taxpayer sign a written agreement:]
             1849          [(A) authorizing the extension; and]


             1850          [(B) providing for the length of the extension.]
             1851          [(3) If the] (1) (a) Subject to Subsection (1)(b), a claim for credit or refund [relates to]
             1852      of an overpayment that is attributable to a Utah net loss [carryback adjustment as provided in
             1853      Section 59-7-110 , in lieu of the three-year period provided for in Subsection (2)(a), the period
             1854      shall be that period which ends with the expiration of the 15th day of the 40th month
             1855      following the end of the taxable year of the net loss which results in the carryback.] carry back
             1856      or carry forward shall be filed within three years from the due date of the return for the taxable
             1857      year of the Utah net loss.
             1858          (b) The three-year period described in Subsection (1)(a) shall be extended by any
             1859      extension of time provided in statute for filing the return described in Subsection (1)(a).
             1860          [(4) Where] (2) If an overpayment relates to [adjustments to] a change in or correction
             1861      of federal taxable income [referred to] described in Section 59-7-519 , a credit may be allowed
             1862      or a refund paid any time before the expiration of the period within which a deficiency may be
             1863      assessed.
             1864          [(5)] (3) The amount of the credit or refund described in Subsection (2) may not
             1865      exceed:
             1866          (a) if a taxpayer files a claim for a credit or refund, the portion of the tax paid during
             1867      the three years immediately preceding the filing of the claim[,]; or [if no claim was filed, then]
             1868          (b) if a taxpayer does not file a claim for a credit or refund, the portion of the tax paid
             1869      during the two years immediately preceding the allowance of the credit or refund.
             1870          [(6) Except as provided in Subsections (3) and (4), if on appeal a court finds that
             1871      there is no deficiency and further finds that the taxpayer has made an overpayment of tax in
             1872      respect of the taxable year in respect to which the commission determined the deficiency, the
             1873      court shall have jurisdiction to determine the amount of the overpayment and that amount
             1874      shall, when the court's decision has become final, be credited or refunded to the taxpayer. A
             1875      credit or refund may not be made of any portion of the tax paid more than three years before
             1876      the filing of the claim or the filing of the appeal or petition, whichever is earlier.]
             1877          (4) The commission shall make a credit or refund within a 30-day period after the day


             1878      on which a court's decision to require the commission to credit or refund the amount of an
             1879      overpayment to a taxpayer is final.
             1880          Section 33. Section 59-10-501 is amended to read:
             1881           59-10-501. Rulemaking authority -- Federal income tax return information.
             1882          [(1) Every person liable for any tax imposed by this chapter, or for the collections
             1883      thereof, shall keep such records, render such statements, make such returns, and comply with
             1884      such rules as the commission may from time to time by rule prescribe. Whenever in the
             1885      judgment of the commission it is necessary, it may require any person, by notice served upon
             1886      such person or by rule, to make such returns, render such statements, or keep such records, as
             1887      the commission deems sufficient to show whether or not such person is liable for tax under
             1888      this chapter.]
             1889          [(2) The commission may, in its discretion, promulgate rules or instructions that
             1890      permit]
             1891          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1892      commission may make rules to allow a taxpayer to submit specified excerpts from [his] the
             1893      taxpayer's federal income tax return [in lieu of] rather than submitting a copy of the taxpayer's
             1894      entire federal income tax return.
             1895          Section 34. Section 59-10-505 is amended to read:
             1896           59-10-505. Return by minor.
             1897          [In the case of any individual required to make a return under Section 59-10-501 , who
             1898      is a minor, such return shall include]
             1899          (1) As used in this section, "parent" includes an individual who is entitled to the
             1900      services of an individual who is a minor by reason of having parental rights and duties with
             1901      respect to the individual who is a minor.
             1902          (2) If an individual who is a minor is required to make a return under this chapter, the
             1903      return shall include:
             1904          (a) all income attributable to [his] the individual's personal services; and
             1905          (b) all other items of [his] the individual's income[, and such income shall].


             1906          (3) The income of an individual who is a minor may not be included on the return of
             1907      [his] the individual's parent. [All expenditures by the parent or the minor attributable to such
             1908      income shall be]
             1909          (4) An expenditure attributable to the income of an individual who is a minor that is
             1910      made by the individual or the individual's parent is considered to have been paid or incurred
             1911      by the individual who is a minor. [However, any]
             1912          (5) A tax assessed against [the] an individual who is a minor, to the extent attributable
             1913      to income from personal services, if not paid by the [minor] individual, for all purposes [shall
             1914      be] is considered as being properly assessable against the individual's parent. [For the
             1915      purposes of this section, the term "parent" includes an individual who is entitled to the
             1916      services of a minor by reason of having parental rights and duties in respect of such minor.]
             1917          Section 35. Section 59-10-510 is amended to read:
             1918           59-10-510. Return of electing small business corporation.
             1919          [Every] An electing small business corporation, [(]as defined in Section 1371(a)(2) [of
             1920      the], Internal Revenue Code[)], shall make a return for each taxable year, stating specifically:
             1921          (1) the items of [its] the electing small business corporation's gross income and the
             1922      deductions allowable by Subtitle A [of the], Internal Revenue Code[,];
             1923          (2) the names and addresses of all persons owning stock in the electing small business
             1924      corporation at any time during the taxable year[,];
             1925          (3) the number of shares of stock owned by each shareholder at all times during the
             1926      taxable year to each shareholder[,];
             1927          (4) the date of each [such] distribution[,] to a shareholder; and [such]
             1928          (5) other information as the commission may [by forms and rules] prescribe[. Any
             1929      return filed pursuant to this section shall, for the purposes of Section 59-10-536 (relating to
             1930      limitations), be treated as a required return filed by the corporation.] by:
             1931          (a) form; or
             1932          (b) administrative rule made in accordance with Title 63G, Chapter 3, Utah
             1933      Administrative Rulemaking Act.


             1934          Section 36. Section 59-10-529 is amended to read:
             1935           59-10-529. Overpayment of tax -- Credits -- Refunds.
             1936          (1) [In cases where] If there has been an overpayment of any tax imposed by this
             1937      chapter, the amount of overpayment is credited as follows:
             1938          (a) against any income tax then due from the taxpayer;
             1939          (b) against:
             1940          (i) the amount of any judgment against the taxpayer, including one ordering the
             1941      payment of a fine or of restitution to a victim under Title 77, Chapter 38a, Crime Victims
             1942      Restitution Act, obtained through due process of law by any entity of state government; or
             1943          (ii) subject to Subsection (3), any child support obligation [which] that is due or past
             1944      due, as determined by the Office of Recovery Services in the Department of Human Services
             1945      and after notice and an opportunity for an adjudicative proceeding, as provided in Subsection
             1946      (2); or
             1947          (c) subject to Subsection (3), (5), (6), or (7), as bail, to ensure the appearance of the
             1948      taxpayer before the appropriate authority to resolve an outstanding warrant against the
             1949      taxpayer for which bail is due, if a court of competent jurisdiction has not approved an
             1950      alternative form of payment. [This bail]
             1951          (2) If a balance remains after an overpayment is credited in accordance with
             1952      Subsection (1), the balance shall be refunded to the taxpayer.
             1953          (3) Bail described in Subsection (1)(c) may be applied to any fine or forfeiture
             1954      [which]:
             1955          (a) that is due and related to a warrant [which] that is outstanding on or after February
             1956      16, 1984[,]; and
             1957          (b) in accordance with Subsections [(3) and (4)] (5) and (6).
             1958          [(2) (a) Subsection (1)(b)(ii) may be exercised only]
             1959          (4) (a) The amount of an overpayment may be credited against an obligation described
             1960      in Subsection (1)(b)(ii) if the Office of Recovery Services has sent written notice to the
             1961      taxpayer's last-known address or the address on file under Section 62A-11-304.4 , stating:


             1962          (i) the amount of child support that is due or past due as of the date of the notice or
             1963      other specified date;
             1964          (ii) that any overpayment shall be applied to reduce the amount of due or past-due
             1965      child support specified in the notice; and
             1966          (iii) that the taxpayer may contest the amount of past-due child support specified in
             1967      the notice by filing a written request for an adjudicative proceeding with the office within 15
             1968      days of the notice being sent.
             1969          (b) [The] In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             1970      Act, the Office of Recovery Services shall establish rules to implement this Subsection [(2)]
             1971      (4), including procedures, in accordance with the other provisions of this section, to ensure:
             1972          (i) prompt reimbursement to the taxpayer of any amount of an overpayment [of taxes
             1973      which] that was credited against a child support obligation in error[,]; and [to ensure]
             1974          (ii) prompt distribution of properly credited funds to the obligee parent.
             1975          [(3) Subsection (1)(c) may be exercised only if:]
             1976          (5) The amount of an overpayment may be credited against bail described in
             1977      Subsection (1)(c) if:
             1978          (a) a court has issued a warrant for the arrest of the taxpayer for failure to post bail,
             1979      appear, or otherwise satisfy the terms of a citation, summons, or court order; and
             1980          (b) a notice of intent to apply the overpayment as bail on the issued warrant has been
             1981      sent to the person's current address on file with the commission.
             1982          [(4)] (6) (a) (i) The commission shall deliver [the] an overpayment applied as bail to
             1983      the court that issued the warrant of arrest.
             1984          (ii) The clerk of the court is authorized to endorse the check or commission warrant of
             1985      payment on behalf of the payees and deposit the monies in the court treasury.
             1986          (b) (i) The court receiving [the] an overpayment applied as bail shall order withdrawal
             1987      of the warrant for arrest of the taxpayer if:
             1988          (A) the case is [one] a case for which a personal appearance of the taxpayer is not
             1989      required; and [if]


             1990          (B) the dollar amount of the overpayment represents the full dollar amount of bail. [In
             1991      all other cases,]
             1992          (ii) In a case except for a case described in Subsection (6)(b)(i):
             1993          (A) the court receiving the overpayment applied as bail is not required to order the
             1994      withdrawal of the warrant of arrest of the taxpayer during the 40-day period[,]; and
             1995          (B) the taxpayer may be arrested on the warrant.
             1996          (c) (i) If [the] a taxpayer fails to respond to the notice [described in Subsection (3)]
             1997      required by Subsection (5)(b), or to resolve the warrant within 40 days after the notice [was] is
             1998      sent under [that Subsection,] Subsection (5)(b):
             1999          (A) the overpayment applied as bail is forfeited; and
             2000          (B) notice of the forfeiture shall be mailed to the taxpayer at the current address on file
             2001      with the commission. [The court may then]
             2002          (ii) A court may issue another warrant or allow the original warrant to remain in force
             2003      if:
             2004          [(i)] (A) the taxpayer has not complied with an order of the court;
             2005          [(ii)] (B) the taxpayer has failed to appear and respond to a criminal charge for which
             2006      a personal appearance is required; or
             2007          [(iii)] (C) the taxpayer has paid partial but not full bail in a case for which a personal
             2008      appearance is not required.
             2009          [(5)] (d) If the alleged violations named in [the] a warrant are later resolved in favor of
             2010      the taxpayer, the bail amount shall be remitted to the taxpayer.
             2011          [(6) Any balance shall be refunded immediately to the taxpayer.]
             2012          [(7) (a) If a refund or credit is due because the amount of tax deducted and withheld
             2013      from wages exceeds the actual tax due, a refund or credit may not be made or allowed unless
             2014      the taxpayer or his legal representative files with the commission a tax return claiming the
             2015      refund or credit:]
             2016          [(i) within three years from the due date of the return, plus the period of any extension
             2017      of time for filing the return provided for in Subsection (7)(c); or]


             2018          [(ii) within two years from the date the tax was paid, whichever period is later.]
             2019          [(b) Except as provided in Subsection (7)(d), in other instances where a refund or
             2020      credit of tax which has not been deducted and withheld from income is due, a credit or refund
             2021      may not be allowed or made after three years from the time the tax was paid, unless, before the
             2022      expiration of the period, a claim is filed by the taxpayer or his legal representative.]
             2023          [(c) Beginning on July 1, 1998, the commission shall extend the period for a taxpayer
             2024      to file a claim under Subsection (7)(a)(i) if:]
             2025          [(i) the time period for filing a claim under Subsection (7)(a) has not expired; and]
             2026          [(ii) the commission and the taxpayer sign a written agreement:]
             2027          [(A) authorizing the extension; and]
             2028          [(B) providing for the length of the extension.]
             2029          [(d) Notwithstanding Subsection (7)(b), beginning on July 1, 1998, the commission
             2030      shall extend the period for a taxpayer to file a claim under Subsection (7)(b) if:]
             2031          [(i) the three-year period under Subsection (7)(b) has not expired; and]
             2032          [(ii) the commission and the taxpayer sign a written agreement:]
             2033          [(A) authorizing the extension; and]
             2034          [(B) providing for the length of the extension.]
             2035          [(8)] (7) The fine and bail forfeiture provisions of this section apply to all warrants and
             2036      fines issued in cases charging [the] a taxpayer with a felony, a misdemeanor, or an infraction
             2037      described in this section which are outstanding on or after February 16, 1984.
             2038          [(9)] (8) If the amount allowable as a credit for tax withheld from [the] a taxpayer
             2039      exceeds the tax to which the credit relates, the excess is considered an overpayment.
             2040          [(10)] (9) (a) [A] Subject to Subsection (9)(b), a claim for credit or refund of an
             2041      overpayment [which] that is attributable to [the application to the taxpayer of] a net operating
             2042      loss [carryback shall be filed within three years from the time the return was due for the
             2043      taxable year of the loss] carry back or carry forward shall be filed within three years from the
             2044      due date of the return for the taxable year of the net operating loss.
             2045          (b) The three-year period described in Subsection (9)(a) shall be extended by any


             2046      extension of time provided in statute for filing the return described in Subsection (9)(a).
             2047          [(11)] (10) If there has been an overpayment of [the] a tax [which] that is required to
             2048      be deducted and withheld under Section 59-10-402 , a refund shall be made to the employer
             2049      only to the extent that the amount of overpayment [was] is not deducted and withheld by the
             2050      employer.
             2051          [(12)] (11) If there is no tax liability for a period in which an amount is paid [as
             2052      income tax] under this chapter, the amount is an overpayment.
             2053          [(13)] (12) If [an income] a tax under this chapter is assessed or collected after the
             2054      expiration of the applicable period of limitation, that amount is an overpayment.
             2055          [(14) (a) If a taxpayer is required to]
             2056          (13) (a) A taxpayer may file a claim for a credit or refund of an overpayment within
             2057      two years from the date a notice of change, notice of correction, or amended return is required
             2058      to be filed with the commission if the taxpayer is required to:
             2059          (i) report a change or correction in [federal taxable] income reported on [his] the
             2060      taxpayer's federal income tax return[, or to];
             2061          (ii) report a change or correction [which] that is treated in the same manner as if [it]
             2062      the change or correction were an overpayment for federal income tax purposes[,]; or [to]
             2063          (iii) file an amended return with the commission[, a claim for credit or refund of any
             2064      resulting overpayment of tax shall be filed by the taxpayer within two years from the date the
             2065      notice of the change, correction, or amended return was required to be filed with the
             2066      commission].
             2067          (b) If [the] a report or amended return is not filed within 90 days, interest on any
             2068      resulting refund or credit ceases to accrue after the 90-day period.
             2069          (c) The amount of the credit or refund may not exceed the amount of the reduction in
             2070      tax attributable to the federal change, correction, or items amended on the taxpayer's amended
             2071      federal income tax return.
             2072          (d) Except as [specifically provided, this section] provided in Subsection (13)(a), this
             2073      Subsection (13) does not affect the amount or the time within which a claim for credit or


             2074      refund may be filed.
             2075          [(15) No credit or refund may]
             2076          (14) A credit or refund may not be allowed or made if [the] an overpayment is less
             2077      than $1.
             2078          [(16)] (15) The amount of [the] a credit or refund may not exceed the tax paid during
             2079      the three years immediately preceding the filing of the claim, or if no claim is filed, then
             2080      during the three years immediately preceding the allowance of the credit or refund.
             2081          [(17)] (16) In the case of an overpayment of tax by [the] an employer under [the
             2082      withholding provisions of this chapter] Part 4, Withholding of Tax, a refund or credit shall be
             2083      made to the employer only to the extent that the amount of the overpayment [was] is not
             2084      deducted and withheld from wages under [the provisions of] this chapter.
             2085          [(18)] (17) (a) If a taxpayer [who is entitled to] that is allowed a refund under this
             2086      chapter dies, the commission may make payment to the [duly appointed executor or
             2087      administrator] personal representative of the taxpayer's estate.
             2088          (b) If there is no [executor or administrator] personal representative of the taxpayer's
             2089      estate, payment may be made to those persons who establish entitlement to inherit the property
             2090      of the decedent in the proportions [set out] established in Title 75, Utah Uniform Probate
             2091      Code.
             2092          [(19) Where] (18) If an overpayment relates to [adjustments to] a change in net
             2093      income [referred to] described in Subsection 59-10-536 [(5),](2)(a), a credit may be allowed or
             2094      a refund paid any time before the expiration of the period within which a deficiency may be
             2095      assessed.
             2096          [(20)] (19) An overpayment of a tax imposed by this chapter shall accrue interest at
             2097      the rate and in the manner prescribed in Section 59-1-402 .
             2098          Section 37. Section 59-10-531 is amended to read:
             2099           59-10-531. Claims for refund or credit.
             2100          [(1) Any taxpayer claiming to be entitled to]
             2101          A taxpayer that claims to be allowed a refund or credit under [the provisions of]


             2102      Section 59-10-529 may file a claim for the refund or credit with the commission within the
             2103      time provided in [that section] Section 59-10-529 .
             2104          [(2) No claim may be filed for refund or credit on any tax for which the taxpayer has
             2105      sought judicial review.]
             2106          Section 38. Section 59-10-536 is amended to read:
             2107           59-10-536. Assessment and collection of tax -- Change on federal income tax
             2108      return -- Taxpayer requirement to make certain filings with the commission.
             2109          [(1) Except as otherwise provided in this section, the amount of any tax imposed by
             2110      this chapter shall be assessed within three years after the return was filed (whether or not such
             2111      return was filed on or after the date prescribed), and no proceeding in court without
             2112      assessment for the collection of such tax shall be begun after the expiration of such period.]
             2113          [(2) For purposes of this section:]
             2114          [(a) A return of tax imposed by this chapter, except withholding tax, filed before the
             2115      last day prescribed by statute or by rules promulgated pursuant to statute for the filing thereof,
             2116      shall be deemed to be filed on such last day.]
             2117          [(b) If a return of withholding tax for any period ending with or within a calendar year
             2118      is filed before April 15 of the succeeding calendar year, such return shall be deemed to be filed
             2119      on April 15 of such succeeding calendar year.]
             2120          [(3) The tax may be assessed at any time if:]
             2121          [(a) no return is filed;]
             2122          [(b) a false or fraudulent return is filed with intent to evade tax; or]
             2123          [(c) a return for the taxpayer is prepared by the commission in accordance with
             2124      Section 59-10-506 .]
             2125          [(4)] (1) (a) If, before the expiration of the time prescribed in this section for the
             2126      assessment of a tax, [both] the commission and the taxpayer [have consented] agree in writing
             2127      to [its] the assessment [after such time] of the tax in a time period after the time period
             2128      prescribed in this section for the assessment of a tax, the tax may be assessed at any time
             2129      [prior to] before the expiration of the period [agreed upon. The period so agreed upon may be


             2130      extended by subsequent agreements in writing] to which the commission and the taxpayer
             2131      agree.
             2132          (b) A time period that the commission and a taxpayer agree upon under Subsection
             2133      (1)(a) may be extended by written agreement:
             2134          (i) between the commission and the taxpayer; and
             2135          (ii) made before the expiration of the [period previously agreed upon] time period that
             2136      the commission and the taxpayer previously agreed upon.
             2137          [(5)] (2) (a) (i) [If] Except as provided in Subsection (2)(a)(iii), if a change is made in
             2138      a taxpayer's net income on [his or her] the taxpayer's federal income tax return[, either because
             2139      the taxpayer has filed an amended return or] because of an action by the federal government,
             2140      the taxpayer [must notify] shall file with the commission within 90 days after the date there is
             2141      a final determination of [such change. The taxpayer shall file a copy of the amended federal
             2142      return and an amended state return which conforms to the changes on the federal return. No
             2143      notification is required of changes in the] the action:
             2144          (A) a copy of the taxpayer's amended federal income tax return; and
             2145          (B) an amended state income tax return that conforms with the changes made in the
             2146      taxpayer's amended federal income tax return.
             2147          (ii) Except as provided in Subsection (2)(a)(iii), if a change is made in a taxpayer's net
             2148      income on the taxpayer's federal income tax return because the taxpayer files an amended
             2149      federal income tax return, the taxpayer shall file with the commission within 90 days after the
             2150      date the taxpayer files the amended federal income tax return:
             2151          (A) a copy of the taxpayer's amended federal income tax return; and
             2152          (B) an amended state income tax return that conforms with the changes made in the
             2153      taxpayer's amended federal income tax return.
             2154          (iii) A taxpayer is not required to file a return described in Subsection (2)(a)(i) or (ii) if
             2155      a change in the taxpayer's federal income tax return [which do] does not [affect] increase state
             2156      tax liability.
             2157          (b) [The] (i) Subject to Subsection (2)(b)(iii), the commission may assess [any] a


             2158      deficiency in state income taxes within three years after [such report] a notification or
             2159      amended federal income tax return [was] described in Subsection (2)(a) is filed.
             2160          (ii) The amount of [such] an assessment of tax [shall] under this Subsection (2)(b)
             2161      may not exceed the amount of the increase in Utah tax attributable to [such federal change or
             2162      correction. The provisions of this Subsection (b) do not affect the time within which or the
             2163      amount for which an assessment may otherwise be made. However, if the] the change
             2164      described in Subsection (2)(a).
             2165          (iii) If a taxpayer fails to report to the commission [the correction] a change specified
             2166      in this Subsection (2)(b), the assessment may be made at any time within six years after the
             2167      date of [said correction] the change.
             2168          [(6)] (3) If a deficiency in federal income tax required to be reported is attributable to
             2169      [the application to the taxpayer of] a net operating loss [carryback within the meaning of
             2170      Section 6501(h) of the Internal Revenue Code, the corresponding] carry back or carry forward,
             2171      a deficiency in the tax imposed by this chapter may be assessed [at any time before the
             2172      expiration of the period within which a deficiency for the taxable year of the net operating loss
             2173      giving rise to the carryback may be assessed.] within three years from the due date of the
             2174      return for the taxable year of the net operating loss.
             2175          (4) Except as provided in Subsections (1) through (3), this section does not affect the
             2176      time within which or the amount for which an assessment may otherwise be made.
             2177          [(7)] (5) (a) An erroneous refund shall be considered an underpayment of tax on the
             2178      date [made, and an] the commission makes the erroneous refund.
             2179          (b) An assessment of a deficiency arising out of an erroneous refund may be made at
             2180      any time within three years from the [time] date the refund [was] is made, except that [the] an
             2181      assessment may be made within five years from the time the refund [was] is made if [it
             2182      appears that] any part of the refund [was] is induced by fraud or misrepresentation of a
             2183      material fact.
             2184          [(8) If] (6) (a) Subject to Subsection (6)(b), if a return is required for a decedent or for
             2185      [his] the decedent's estate during the period of administration, the tax shall be assessed within


             2186      18 months after written request [therefor (] for the assessment:
             2187          (i) made after the return is filed[)]; and
             2188          (ii) by [the executor, administrator, or other]:
             2189          (A) the personal representative; or
             2190          (B) another person representing the estate of [such] the decedent[, but not].
             2191          (b) Except as otherwise provided in this section, the assessment described in
             2192      Subsection (6)(a) may not be made more than three years after the time the return [was] is
             2193      filed[, except as otherwise provided in Subsections (3) through (9)].
             2194          [(9)] (7) (a) The amount of [any] a tax imposed by this chapter may be assessed at any
             2195      time within six years after the time the return [was] is filed if:
             2196          [(a)] (i) a resident individual, resident estate, or resident trust omits from gross income
             2197      as reported for federal income tax purposes an amount properly includable [therein] in
             2198      adjusted gross income, which is in excess of 25% of the amount of gross income stated in the
             2199      return; or
             2200          [(b)] (ii) a nonresident individual, nonresident estate, or nonresident trust omits from
             2201      gross income as reported for federal income tax purposes an amount of adjusted gross income
             2202      derived from Utah sources as defined by Section 59-10-117 , properly includable [therein] in
             2203      adjusted gross income, which is in excess of 25% of the amount of adjusted gross income
             2204      derived from Utah sources which is reflected in [such] the return.
             2205          (b) For [the] purposes of [this] Subsection [(b)] (7)(a)(ii), there may not be taken into
             2206      account any amount [which] that is omitted in the return if [such] the amount is disclosed:
             2207          (i) (A) in the return[,]; or
             2208          (B) in a statement attached to the return[,]; and
             2209          (ii) in a manner adequate to apprise the commission of the nature and amount of
             2210      [such] the item.
             2211          [(10) The running of the period of limitations on assessments or collection of tax or
             2212      other amount (or of a transferee's liability) shall, after the mailing of a notice of deficiency, be
             2213      suspended for the period during which the commission is prohibited from making the


             2214      assessment or from collecting by levy.]
             2215          Section 39. Section 59-10-537 is amended to read:
             2216           59-10-537. Interest on underpayment, nonpayment, or extension of time for
             2217      payment of tax.
             2218          (1) [If] (a) Subject to the other provisions of this section, if any amount of income tax
             2219      is not paid on or before the last date prescribed in this chapter for payment, interest on [such]
             2220      the amount at the rate and in the manner prescribed in Section 59-1-402 shall be paid.
             2221          (b) Interest under this Subsection (1) may not be paid if the amount [thereof] of the
             2222      interest is less than $1.
             2223          (c) If the time for filing of a return of tax withheld by an employer is extended, the
             2224      employer shall pay interest for the period for which the extension is granted and may not
             2225      charge such interest to the employee.
             2226          (2) [Where] If a deficiency or any interest or additional [amounts] amount assessed in
             2227      connection [therewith under Section 59-10-525 or] with an amount under Subsection (1), or
             2228      [an addition to the tax] a penalty in case of a delinquency provided for in Section 59-10-539 is
             2229      not paid in full within ten days from the date of notice and demand from the commission,
             2230      there shall be collected as part of the tax, interest at the rate and in the manner prescribed in
             2231      Section 59-1-402 from the date of [such] the notice and demand until [it] the entire amount of
             2232      the deficiency, interest, and additional amount is paid.
             2233          (3) If the time for payment of the amount determined as the tax by the taxpayer is
             2234      extended under the authority of Section 59-10-522 , [there] interest shall be collected as a part
             2235      of [such] the amount[, interest thereon] at the rate and in the manner prescribed in Section
             2236      59-1-402 .
             2237          Section 40. Section 59-10-539 is amended to read:
             2238           59-10-539. Penalties and interest.
             2239          (1) (a) In case of failure to file an income tax return and pay the tax required under this
             2240      chapter on or before the date prescribed [therefor (determined with regard to any extension of
             2241      time for filing)] for paying the tax, including extensions, unless it is shown that [such] the


             2242      failure is due to reasonable cause and not due to willful neglect, there shall be added to the
             2243      amount required to be shown as tax on [such] the return a penalty as provided in Section
             2244      59-1-401 .
             2245          (b) For [the] purposes of [this subsection] Subsection (1)(a), the amount of tax
             2246      required to be shown on [the] a return shall be reduced by:
             2247          (i) the amount of any part of the tax [which] that is paid on or before the date
             2248      prescribed for payment of the tax; and [by]
             2249          (ii) the amount of any credit against the tax [which] that may be claimed upon the
             2250      return.
             2251          (2) If any part of any deficiency in a tax imposed by this chapter[, as defined by
             2252      Section 59-10-523 ,] is due to negligence or intentional disregard of rules, but without intent to
             2253      defraud, a penalty shall be assessed, collected, and paid as provided in Section 59-1-401 in the
             2254      same manner as if [it] the deficiency were an underpayment.
             2255          (3) (a) If any part of a deficiency in a tax imposed by this chapter[, as defined by
             2256      Section 59-10-523 ,] is due to fraud, there shall be added to the tax a penalty as provided in
             2257      Section 59-1-401 . [This amount]
             2258          (b) The amount described in Subsection (3)(a) shall be in lieu of any other [addition to
             2259      tax] penalty imposed by Subsection (1) or (2).
             2260          (4) (a) If any employer, without intent to evade or defeat any tax imposed by this
             2261      chapter or the payment [thereof] of any tax imposed by this chapter, fails to make a return and
             2262      pay a tax withheld by [him] the employer at the time required under Section 59-10-402 , [such]
             2263      the employer shall be liable for [such] the tax and shall pay [it] the tax together with interest at
             2264      the rate and in the manner prescribed in Section 59-1-402 .
             2265          (b) The [addition to tax] penalty provided in Subsection (1) and [such] interest may
             2266      not be charged to or collected from the employee by the employer.
             2267          (c) The commission has the same rights and powers for the collection of [such] a tax,
             2268      interest, and [addition to tax] penalty against [such] an employer described in this section as
             2269      are prescribed by this chapter for the collection of tax against an individual taxpayer.


             2270          (5) (a) Any person required to collect, truthfully account for, and pay over the tax
             2271      imposed by this chapter who willfully fails to collect [such] the tax or truthfully account for
             2272      and pay over [such] the tax or willfully attempts in any manner to evade or default the tax or
             2273      the payment [thereof] of the tax, shall, in addition to other penalties provided by law, be liable
             2274      [to] for a penalty as provided in Section 59-1-401 . [No addition to tax under]
             2275          (b) A penalty described in Subsection (1) or (2) may not be imposed for any offense to
             2276      which [this subsection] Subsection (5)(a) applies.
             2277          (6) In case of each failure to file a statement of a payment to another person, required
             2278      under authority of Section 59-10-406 , [(]relating to information at source, including the
             2279      duplicate statement of tax withheld on wages[)], on the date prescribed [therefor (determined
             2280      with regard to any extension of time for filing)] for filing the statement, including extensions,
             2281      unless it is shown that [such] the failure is due to reasonable cause and not to willful neglect,
             2282      there shall, upon notice and demand by the commission and in the same manner as tax, be
             2283      paid by the person [so failing] that fails to file the statement, a penalty as provided in Section
             2284      59-1-401 .
             2285          (7) (a) [If any person who is] Except as provided in Subsection (7)(b) or (c), a person
             2286      is subject to a penalty as provided in Section 59-1-401 if the person fails to do one or more of
             2287      the following as required by rules prescribed by the commission under this chapter: [(a)]
             2288          (i) to include [his] the person's identifying number in any return, statement, or other
             2289      document[, (b)];
             2290          (ii) to furnish [his] the person's identifying number to another person[,]; or [(c)]
             2291          (iii) to include on any return, statement, or other document made with respect to
             2292      another person the identifying number of [such] the other person[, fails to comply with such
             2293      requirement at the time prescribed by such rules, such person shall pay a penalty as provided
             2294      in Section 59-1-401 , unless].
             2295          (b) A person is not subject to a penalty under Subsection (7)(a) if it is shown that
             2296      [such failure] the person's failure to do an act described in Subsection (7)(a) is due to
             2297      reasonable cause. [For failure to include his]


             2298          (c) If a person fails to include the person's own identification number in any return,
             2299      statement, or other document [required to be filed by him, such], a penalty under Subsection
             2300      (7)(a) may not be imposed unless [such] the person fails to supply [his] the person's
             2301      identification number to the commission within 30 days after [demand therefor] the
             2302      commission requests the identification number.
             2303          (8) In addition to the penalties [added] required by this section, there shall be added to
             2304      [the] a tax due interest payable at the rate and in the manner prescribed in Section 59-1-402
             2305      for underpayments.
             2306          (9) The [additions to tax,] penalties[,] and interest [provided] required by this section
             2307      shall be:
             2308          (a) paid upon notice and demand by the commission in accordance with Section
             2309      59-1-1411 ; and [shall be]
             2310          (b) assessed, collected, and paid in [the same manner as taxes. Any] accordance with
             2311      Chapter 1, Part 14, Assessment, Collections, and Refunds Act.
             2312          (10) A reference in this chapter to income tax or tax imposed by this chapter[, is
             2313      deemed also to refer to the additions to tax,] is considered to include the penalties[,] and
             2314      interest provided by this section.
             2315          [(10)] (11) For purposes of Subsections (2) and (3), the amount shown as the tax by
             2316      the taxpayer upon [his] the taxpayer's return shall be taken into account in determining the
             2317      amount of the deficiency only if [such] the return [was] is filed on or before the last day
             2318      prescribed for [the] filing of [such] the return, [determined with regard to any extension of
             2319      time for such filing] including extensions.
             2320          Section 41. Section 59-10-544 is amended to read:
             2321           59-10-544. General powers and duties of the commission -- Deposit, distribution,
             2322      or credit of revenues -- Refund reverts to state under certain circumstances.
             2323          (1) (a) The commission shall administer and enforce [the] a tax [herein] imposed
             2324      under this chapter for which purpose it may divide the state into districts in each of which a
             2325      branch office of the commission may be maintained.


             2326          (b) A county may not be divided in forming a district.
             2327          [(2) The commission may designate agents for the purpose of collecting income taxes
             2328      and shall require from each of them an adequate bond.]
             2329          [(3) The commission, for the purpose of ascertaining the correctness of any return or
             2330      for the purpose of making an estimate of taxable income of any person where information has
             2331      been obtained, may examine or cause to have examined, by any agent or representative
             2332      designated by it for that purpose, any books, papers, records, or memoranda bearing upon the
             2333      matters required to be included in the return, and may require the attendance of the person
             2334      rendering the return or any officer or employee of such person, or the attendance of any other
             2335      person having knowledge in the premises, and may take testimony and require proof material
             2336      for its information.]
             2337          [(4) All] (2) (a) The commission shall daily deposit all revenue collected or received
             2338      by the commission under this chapter [shall be deposited daily] with the state treasurer. [The
             2339      balance of such revenue, subject to the provisions of Sections 59-10-529 and 59-10-531
             2340      (relating to refunds),]
             2341          (b) Subject to Sections 59-10-529 and 59-10-531 , the balance of the revenue
             2342      described in Subsection (2)(a) shall be periodically distributed and credited to the Education
             2343      Fund. [Refunds shall be made by the commission, and if]
             2344          (c) If a refund the commission makes is not claimed within two years from the date [of
             2345      issuance shall revert] the commission issues the refund:
             2346          (i) the refund reverts to the state to be credited to the Education Fund[,]; and
             2347          (ii) no further [claims] claim may be made [upon] on the commission for the [amounts
             2348      of such refunds] amount of the refund.
             2349          Section 42. Section 59-11-113 is amended to read:
             2350           59-11-113. Administration by commission -- Taxpayer notification of change on
             2351      federal estate tax return -- Assessment of deficiency -- Appeal.
             2352          (1) The commission is charged with the administration and enforcement of this
             2353      chapter and may [promulgate] make rules under Title 63G, Chapter 3, Utah Administrative


             2354      Rulemaking Act, to effectuate the purposes of this chapter.
             2355          [(2) The commission shall collect the tax provided for under this chapter, including
             2356      applicable interest and penalties, and shall represent this state in all matters pertaining to
             2357      collection, either before courts or otherwise. The commission may institute proceedings for
             2358      the collection of this tax, and any interest and penalties on the tax, in the district court of any
             2359      county in which any portion of the property is situated. For this purpose the commission may
             2360      call to its assistance the attorney general and the various county attorneys throughout the
             2361      state.]
             2362          [(3) (a) Except as provided in Subsections (4) through (7), the commission shall assess
             2363      a tax under this chapter within three years after a taxpayer files a return.]
             2364          [(b) Except as provided in Subsections (4) through (7), if the commission does not
             2365      assess a tax under this chapter within the three-year period provided in Subsection (3)(a), the
             2366      commission may not file an action to collect the tax.]
             2367          [(4) Notwithstanding Subsection (3), the commission may assess a tax at any time if a
             2368      taxpayer:]
             2369          [(a) files a false or fraudulent return with intent to evade; or]
             2370          [(b) does not file a return.]
             2371          [(5) Notwithstanding Subsection (3), beginning on July 1, 1998, the commission may
             2372      extend the period to make an assessment or to commence a proceeding to collect the tax under
             2373      this chapter if:]
             2374          [(a) the three-year period under Subsection (3) has not expired; and]
             2375          [(b) the commission and the taxpayer sign a written agreement:]
             2376          [(i) authorizing the extension; and]
             2377          [(ii) providing for the length of the extension.]
             2378          [(6) If the commission delays an audit at the request of a taxpayer, the commission
             2379      may make an assessment as provided in Subsection (7) if:]
             2380          [(a) the taxpayer subsequently refuses to agree to an extension request by the
             2381      commission; and]


             2382          [(b) the three-year period under Subsection (3) expires before the commission
             2383      completes the audit.]
             2384          [(7) An assessment under Subsection (6) shall be:]
             2385          [(a) for the time period for which the commission could not make an assessment
             2386      because of the expiration of the three-year period; and]
             2387          [(b) in an amount equal to the difference between:]
             2388          [(i) the commission's estimate of the amount of taxes the taxpayer would have been
             2389      assessed for the time period described in Subsection (7)(a); and]
             2390          [(ii) the amount of taxes the taxpayer actually paid for the time period described in
             2391      Subsection (7)(a).]
             2392          [(8)] (2) A taxpayer shall:
             2393          (a) notify the commission within 90 days after a final determination of a change [made
             2394      in a taxpayer's net income] on the taxpayer's federal estate tax return if:
             2395          (i) the change is made because:
             2396          (A) the taxpayer filed an amended federal return; or
             2397          (B) of an action by the federal government; and
             2398          (ii) the change [affects] increases the taxpayer's state tax liability; and
             2399          (b) if the taxpayer is required to notify the commission of a change as provided in
             2400      Subsection [(8)] (2)(a)(i), file a copy of:
             2401          (i) the amended federal return; and
             2402          (ii) an amended state return [which] that conforms to the changes on the federal
             2403      return.
             2404          [(9)] (3) (a) The commission may assess a deficiency in state estate taxes as a result of
             2405      a change in a taxpayer's net income under Subsection [(8)] (2):
             2406          (i) within three years after a taxpayer files an amended return under Subsection [(8)]
             2407      (2)(b) if the taxpayer files an amended return; or
             2408          (ii) within six years after the change if a taxpayer does not file an amended return
             2409      under Subsection [(8)] (2)(b).


             2410          (b) The amount of a deficiency assessed under Subsection [(9)] (3)(a) may not exceed
             2411      the amount of the increase in Utah tax attributable to the change [in the taxpayer's net income]
             2412      under Subsection [(8)] (2)(a).
             2413          [(10) (a) Except as provided in Subsection (10)(b), the commission may not make a
             2414      credit or refund unless the taxpayer files a claim with the commission within three years of the
             2415      date of overpayment.]
             2416          [(b) Notwithstanding Subsection (10)(a), beginning on July 1, 1998, the commission
             2417      shall extend the period for a taxpayer to file a claim under Subsection (10)(a) if:]
             2418          [(i) the three-year period under Subsection (10)(a) has not expired; and]
             2419          [(ii) the commission and the taxpayer sign a written agreement:]
             2420          [(A) authorizing the extension; and]
             2421          [(B) providing for the length of the extension.]
             2422          [(11) Any] (4) A party to a proceeding before the district court concerning [the] a tax
             2423      imposed by this chapter, including the commission, may appeal from the order, judgment, or
             2424      decree entered by the district court.
             2425          Section 43. Section 59-12-104 is amended to read:
             2426           59-12-104. Exemptions.
             2427          The following sales and uses are exempt from the taxes imposed by this chapter:
             2428          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             2429      under Chapter 13, Motor and Special Fuel Tax Act;
             2430          (2) sales to the state, its institutions, and its political subdivisions; however, this
             2431      exemption does not apply to sales of:
             2432          (a) construction materials except:
             2433          (i) construction materials purchased by or on behalf of institutions of the public
             2434      education system as defined in Utah Constitution Article X, Section 2, provided the
             2435      construction materials are clearly identified and segregated and installed or converted to real
             2436      property which is owned by institutions of the public education system; and
             2437          (ii) construction materials purchased by the state, its institutions, or its political


             2438      subdivisions which are installed or converted to real property by employees of the state, its
             2439      institutions, or its political subdivisions; or
             2440          (b) tangible personal property in connection with the construction, operation,
             2441      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             2442      providing additional project capacity, as defined in Section 11-13-103 ;
             2443          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             2444          (i) the proceeds of each sale do not exceed $1; and
             2445          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             2446      the cost of the item described in Subsection (3)(b) as goods consumed; and
             2447          (b) Subsection (3)(a) applies to:
             2448          (i) food and food ingredients; or
             2449          (ii) prepared food;
             2450          (4) sales of the following to a commercial airline carrier for in-flight consumption:
             2451          (a) food and food ingredients;
             2452          (b) prepared food; or
             2453          (c) services related to Subsection (4)(a) or (b);
             2454          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of
             2455      parts and equipment:
             2456          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             2457      North American Industry Classification System of the federal Executive Office of the
             2458      President, Office of Management and Budget; and
             2459          (II) for:
             2460          (Aa) installation in an aircraft, including services relating to the installation of parts or
             2461      equipment in the aircraft;
             2462          (Bb) renovation of an aircraft; or
             2463          (Cc) repair of an aircraft; or
             2464          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             2465      commerce; or


             2466          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             2467      aircraft operated by a common carrier in interstate or foreign commerce; and
             2468          (b) notwithstanding the time period of Subsection [ 59-12-110 (2)] 59-1-1410 (8) for
             2469      filing for a refund, a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a
             2470      sale by filing for a refund:
             2471          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             2472          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             2473          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             2474      the sale prior to filing for the refund;
             2475          (iv) for sales and use taxes paid under this chapter on the sale;
             2476          (v) in accordance with Section [ 59-12-110 ] 59-1-1410 ; and
             2477          (vi) subject to any extension allowed for filing for a refund under Section [ 59-12-110 ]
             2478      59-1-1410 , if the person files for the refund on or before September 30, 2011;
             2479          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             2480      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             2481      exhibitor, distributor, or commercial television or radio broadcaster;
             2482          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             2483      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             2484      washing of tangible personal property;
             2485          (b) if a seller that sells at the same business location assisted cleaning or washing of
             2486      tangible personal property and cleaning or washing of tangible personal property that is not
             2487      assisted cleaning or washing of tangible personal property, the exemption described in
             2488      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             2489      or washing of the tangible personal property; and
             2490          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             2491      Utah Administrative Rulemaking Act, the commission may make rules:
             2492          (i) governing the circumstances under which sales are at the same business location;
             2493      and


             2494          (ii) establishing the procedures and requirements for a seller to separately account for
             2495      sales of assisted cleaning or washing of tangible personal property;
             2496          (8) sales made to or by religious or charitable institutions in the conduct of their
             2497      regular religious or charitable functions and activities, if the requirements of Section
             2498      59-12-104.1 are fulfilled;
             2499          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws
             2500      of this state if the vehicle is:
             2501          (a) not registered in this state; and
             2502          (b) (i) not used in this state; or
             2503          (ii) used in this state:
             2504          (A) if the vehicle is not used to conduct business, for a time period that does not
             2505      exceed the longer of:
             2506          (I) 30 days in any calendar year; or
             2507          (II) the time period necessary to transport the vehicle to the borders of this state; or
             2508          (B) if the vehicle is used to conduct business, for the time period necessary to
             2509      transport the vehicle to the borders of this state;
             2510          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             2511          (i) the item is intended for human use; and
             2512          (ii) (A) a prescription was issued for the item; or
             2513          (B) the item was purchased by a hospital or other medical facility; and
             2514          (b) (i) Subsection (10)(a) applies to:
             2515          (A) a drug;
             2516          (B) a syringe; or
             2517          (C) a stoma supply; and
             2518          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2519      the commission may by rule define the terms:
             2520          (A) "syringe"; or
             2521          (B) "stoma supply";


             2522          (11) sales or use of property, materials, or services used in the construction of or
             2523      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             2524          (12) (a) sales of an item described in Subsection (12)(c) served by:
             2525          (i) the following if the item described in Subsection (12)(c) is not available to the
             2526      general public:
             2527          (A) a church; or
             2528          (B) a charitable institution;
             2529          (ii) an institution of higher education if:
             2530          (A) the item described in Subsection (12)(c) is not available to the general public; or
             2531          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             2532      offered by the institution of higher education; or
             2533          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             2534          (i) a medical facility; or
             2535          (ii) a nursing facility; and
             2536          (c) Subsections (12)(a) and (b) apply to:
             2537          (i) food and food ingredients;
             2538          (ii) prepared food; or
             2539          (iii) alcoholic beverages;
             2540          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal
             2541      property or a product transferred electronically by a person:
             2542          (i) regardless of the number of transactions involving the sale of that tangible personal
             2543      property or product transferred electronically by that person; and
             2544          (ii) not regularly engaged in the business of selling that type of tangible personal
             2545      property or product transferred electronically;
             2546          (b) this Subsection (13) does not apply if:
             2547          (i) the sale is one of a series of sales of a character to indicate that the person is
             2548      regularly engaged in the business of selling that type of tangible personal property or product
             2549      transferred electronically;


             2550          (ii) the person holds that person out as regularly engaged in the business of selling that
             2551      type of tangible personal property or product transferred electronically;
             2552          (iii) the person sells an item of tangible personal property or product transferred
             2553      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             2554          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             2555      this state in which case the tax is based upon:
             2556          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             2557      sold; or
             2558          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             2559      value of the vehicle or vessel being sold at the time of the sale as determined by the
             2560      commission; and
             2561          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2562      commission shall make rules establishing the circumstances under which:
             2563          (i) a person is regularly engaged in the business of selling a type of tangible personal
             2564      property or product transferred electronically;
             2565          (ii) a sale of tangible personal property or a product transferred electronically is one of
             2566      a series of sales of a character to indicate that a person is regularly engaged in the business of
             2567      selling that type of tangible personal property or product transferred electronically; or
             2568          (iii) a person holds that person out as regularly engaged in the business of selling a
             2569      type of tangible personal property or product transferred electronically;
             2570          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             2571      July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
             2572      facility, for the following:
             2573          (i) machinery and equipment that:
             2574          (A) is used:
             2575          (I) for a manufacturing facility other than a manufacturing facility that is a scrap
             2576      recycler described in Subsection 59-12-102 (52)(b):
             2577          (Aa) in the manufacturing process; and


             2578          (Bb) to manufacture an item sold as tangible personal property; or
             2579          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             2580      59-12-102 (52)(b), to process an item sold as tangible personal property; and
             2581          (B) has an economic life of three or more years; and
             2582          (ii) normal operating repair or replacement parts that:
             2583          (A) have an economic life of three or more years; and
             2584          (B) are used:
             2585          (I) for a manufacturing facility in the state other than a manufacturing facility that is a
             2586      scrap recycler described in Subsection 59-12-102 (52)(b), in the manufacturing process; or
             2587          (II) for a manufacturing facility in the state that is a scrap recycler described in
             2588      Subsection 59-12-102 (52)(b), to process an item sold as tangible personal property;
             2589          (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             2590      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             2591      for the following:
             2592          (A) machinery and equipment that:
             2593          (I) is used:
             2594          (Aa) in the manufacturing process; and
             2595          (Bb) to manufacture an item sold as tangible personal property; and
             2596          (II) has an economic life of three or more years; and
             2597          (B) normal operating repair or replacement parts that:
             2598          (I) are used in the manufacturing process in a manufacturing facility in the state; and
             2599          (II) have an economic life of three or more years; and
             2600          (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
             2601      2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
             2602      claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
             2603          (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
             2604      and
             2605          (B) in accordance with Section [ 59-12-110 ] 59-1-1410 ;


             2606          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             2607      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             2608      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             2609      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             2610      of the 2002 North American Industry Classification System of the federal Executive Office of
             2611      the President, Office of Management and Budget:
             2612          (i) machinery and equipment that:
             2613          (A) are used in:
             2614          (I) the production process, other than the production of real property; or
             2615          (II) research and development; and
             2616          (B) have an economic life of three or more years; and
             2617          (ii) normal operating repair or replacement parts that:
             2618          (A) have an economic life of three or more years; and
             2619          (B) are used in:
             2620          (I) the production process, other than the production of real property, in an
             2621      establishment described in this Subsection (14)(c) in the state; or
             2622          (II) research and development in an establishment described in this Subsection (14)(c)
             2623      in the state;
             2624          (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             2625      Utah Administrative Rulemaking Act, the commission:
             2626          (i) shall by rule define the term "establishment"; and
             2627          (ii) may by rule define what constitutes:
             2628          (A) processing an item sold as tangible personal property;
             2629          (B) the production process, other than the production of real property; or
             2630          (C) research and development; and
             2631          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             2632      commission shall:
             2633          (i) review the exemptions described in this Subsection (14) and make


             2634      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             2635      exemptions should be continued, modified, or repealed; and
             2636          (ii) include in its report:
             2637          (A) the cost of the exemptions;
             2638          (B) the purpose and effectiveness of the exemptions; and
             2639          (C) the benefits of the exemptions to the state;
             2640          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             2641          (i) tooling;
             2642          (ii) special tooling;
             2643          (iii) support equipment;
             2644          (iv) special test equipment; or
             2645          (v) parts used in the repairs or renovations of tooling or equipment described in
             2646      Subsections (15)(a)(i) through (iv); and
             2647          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             2648          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             2649      performance of any aerospace or electronics industry contract with the United States
             2650      government or any subcontract under that contract; and
             2651          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             2652      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             2653      by:
             2654          (A) a government identification tag placed on the tooling, equipment, or parts; or
             2655          (B) listing on a government-approved property record if placing a government
             2656      identification tag on the tooling, equipment, or parts is impractical;
             2657          (16) sales of newspapers or newspaper subscriptions;
             2658          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             2659      product transferred electronically traded in as full or part payment of the purchase price,
             2660      except that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle
             2661      dealer, trade-ins are limited to other vehicles only, and the tax is based upon:


             2662          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             2663      vehicle being traded in; or
             2664          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             2665      fair market value of the vehicle being sold and the vehicle being traded in, as determined by
             2666      the commission; and
             2667          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             2668      following items of tangible personal property or products transferred electronically traded in as
             2669      full or part payment of the purchase price:
             2670          (i) money;
             2671          (ii) electricity;
             2672          (iii) water;
             2673          (iv) gas; or
             2674          (v) steam;
             2675          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal
             2676      property or a product transferred electronically used or consumed primarily and directly in
             2677      farming operations, regardless of whether the tangible personal property or product transferred
             2678      electronically:
             2679          (A) becomes part of real estate; or
             2680          (B) is installed by a:
             2681          (I) farmer;
             2682          (II) contractor; or
             2683          (III) subcontractor; or
             2684          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             2685      product transferred electronically if the tangible personal property or product transferred
             2686      electronically is exempt under Subsection (18)(a)(i); and
             2687          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             2688      subject to the taxes imposed by this chapter:
             2689          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is


             2690      incidental to farming:
             2691          (I) machinery;
             2692          (II) equipment;
             2693          (III) materials; or
             2694          (IV) supplies; and
             2695          (B) tangible personal property that is considered to be used in a manner that is
             2696      incidental to farming includes:
             2697          (I) hand tools; or
             2698          (II) maintenance and janitorial equipment and supplies;
             2699          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             2700      transferred electronically if the tangible personal property or product transferred electronically
             2701      is used in an activity other than farming; and
             2702          (B) tangible personal property or a product transferred electronically that is considered
             2703      to be used in an activity other than farming includes:
             2704          (I) office equipment and supplies; or
             2705          (II) equipment and supplies used in:
             2706          (Aa) the sale or distribution of farm products;
             2707          (Bb) research; or
             2708          (Cc) transportation; or
             2709          (iii) a vehicle required to be registered by the laws of this state during the period
             2710      ending two years after the date of the vehicle's purchase;
             2711          (19) sales of hay;
             2712          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             2713      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             2714      garden, farm, or other agricultural produce is sold by:
             2715          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             2716      agricultural produce;
             2717          (b) an employee of the producer described in Subsection (20)(a); or


             2718          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             2719          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             2720      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             2721          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             2722      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             2723      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             2724      manufacturer, processor, wholesaler, or retailer;
             2725          (23) a product stored in the state for resale;
             2726          (24) (a) purchases of a product if:
             2727          (i) the product is:
             2728          (A) purchased outside of this state;
             2729          (B) brought into this state:
             2730          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             2731          (II) by a nonresident person who is not living or working in this state at the time of the
             2732      purchase;
             2733          (C) used for the personal use or enjoyment of the nonresident person described in
             2734      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             2735          (D) not used in conducting business in this state; and
             2736          (ii) for:
             2737          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             2738      the product for a purpose for which the product is designed occurs outside of this state;
             2739          (B) a boat, the boat is registered outside of this state; or
             2740          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2741      outside of this state;
             2742          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             2743          (i) a lease or rental of a product; or
             2744          (ii) a sale of a vehicle exempt under Subsection (33); and
             2745          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for


             2746      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             2747      following:
             2748          (i) conducting business in this state if that phrase has the same meaning in this
             2749      Subsection (24) as in Subsection (64);
             2750          (ii) the first use of a product if that phrase has the same meaning in this Subsection
             2751      (24) as in Subsection (64); or
             2752          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             2753      this Subsection (24) as in Subsection (64);
             2754          (25) a product purchased for resale in this state, in the regular course of business, either
             2755      in its original form or as an ingredient or component part of a manufactured or compounded
             2756      product;
             2757          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             2758      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             2759      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             2760      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             2761      Act;
             2762          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             2763      person for use in compounding a service taxable under the subsections;
             2764          (28) purchases made in accordance with the special supplemental nutrition program
             2765      for women, infants, and children established in 42 U.S.C. Sec. 1786;
             2766          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             2767      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or
             2768      ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial
             2769      Classification Manual of the federal Executive Office of the President, Office of Management
             2770      and Budget;
             2771          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             2772      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             2773          (a) not registered in this state; and


             2774          (b) (i) not used in this state; or
             2775          (ii) used in this state:
             2776          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             2777      time period that does not exceed the longer of:
             2778          (I) 30 days in any calendar year; or
             2779          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             2780      the borders of this state; or
             2781          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             2782      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             2783      state;
             2784          (31) sales of aircraft manufactured in Utah;
             2785          (32) amounts paid for the purchase of telecommunications service for purposes of
             2786      providing telecommunications service;
             2787          (33) sales, leases, or uses of the following:
             2788          (a) a vehicle by an authorized carrier; or
             2789          (b) tangible personal property that is installed on a vehicle:
             2790          (i) sold or leased to or used by an authorized carrier; and
             2791          (ii) before the vehicle is placed in service for the first time;
             2792          (34) (a) 45% of the sales price of any new manufactured home; and
             2793          (b) 100% of the sales price of any used manufactured home;
             2794          (35) sales relating to schools and fundraising sales;
             2795          (36) sales or rentals of durable medical equipment if:
             2796          (a) a person presents a prescription for the durable medical equipment; and
             2797          (b) the durable medical equipment is used for home use only;
             2798          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             2799      Section 72-11-102 ; and
             2800          (b) the commission shall by rule determine the method for calculating sales exempt
             2801      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;


             2802          (38) sales to a ski resort of:
             2803          (a) snowmaking equipment;
             2804          (b) ski slope grooming equipment;
             2805          (c) passenger ropeways as defined in Section 72-11-102 ; or
             2806          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             2807      described in Subsections (38)(a) through (c);
             2808          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial
             2809      use;
             2810          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             2811      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             2812      59-12-102 ;
             2813          (b) if a seller that sells or rents at the same business location the right to use or operate
             2814      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             2815      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             2816      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             2817      amusement, entertainment, or recreation for the assisted amusement devices; and
             2818          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             2819      Utah Administrative Rulemaking Act, the commission may make rules:
             2820          (i) governing the circumstances under which sales are at the same business location;
             2821      and
             2822          (ii) establishing the procedures and requirements for a seller to separately account for
             2823      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation
             2824      for assisted amusement devices;
             2825          (41) (a) sales of photocopies by:
             2826          (i) a governmental entity; or
             2827          (ii) an entity within the state system of public education, including:
             2828          (A) a school; or
             2829          (B) the State Board of Education; or


             2830          (b) sales of publications by a governmental entity;
             2831          (42) amounts paid for admission to an athletic event at an institution of higher
             2832      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             2833      20 U.S.C. Sec. 1681 et seq.;
             2834          (43) sales of telecommunications service charged to a prepaid telephone calling card;
             2835          (44) (a) sales made to or by:
             2836          (i) an area agency on aging; or
             2837          (ii) a senior citizen center owned by a county, city, or town; or
             2838          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             2839          (45) sales or leases of semiconductor fabricating, processing, research, or development
             2840      materials regardless of whether the semiconductor fabricating, processing, research, or
             2841      development materials:
             2842          (a) actually come into contact with a semiconductor; or
             2843          (b) ultimately become incorporated into real property;
             2844          (46) an amount paid by or charged to a purchaser for accommodations and services
             2845      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             2846      59-12-104.2 ;
             2847          (47) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             2848      sports event registration certificate in accordance with Section 41-3-306 for the event period
             2849      specified on the temporary sports event registration certificate;
             2850          (48) sales or uses of electricity, if the sales or uses are:
             2851          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             2852      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             2853      source, as designated in the tariff by the Public Service Commission of Utah; and
             2854          (b) for an amount of electricity that is:
             2855          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             2856      under the tariff described in Subsection (48)(a); and
             2857          (ii) equivalent to the number of kilowatthours specified in the tariff described in


             2858      Subsection (48)(a) that may be purchased under the tariff described in Subsection (48)(a);
             2859          (49) sales or rentals of mobility enhancing equipment if a person presents a
             2860      prescription for the mobility enhancing equipment;
             2861          (50) sales of water in a:
             2862          (a) pipe;
             2863          (b) conduit;
             2864          (c) ditch; or
             2865          (d) reservoir;
             2866          (51) sales of currency or coinage that constitute legal tender of the United States or of
             2867      a foreign nation;
             2868          (52) (a) sales of an item described in Subsection (52)(b) if the item:
             2869          (i) does not constitute legal tender of any nation; and
             2870          (ii) has a gold, silver, or platinum content of 80% or more; and
             2871          (b) Subsection (52)(a) applies to a gold, silver, or platinum:
             2872          (i) ingot;
             2873          (ii) bar;
             2874          (iii) medallion; or
             2875          (iv) decorative coin;
             2876          (53) amounts paid on a sale-leaseback transaction;
             2877          (54) sales of a prosthetic device:
             2878          (a) for use on or in a human; and
             2879          (b) (i) for which a prescription is required; or
             2880          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             2881          (55) (a) except as provided in Subsection (55)(b), purchases, leases, or rentals of
             2882      machinery or equipment by an establishment described in Subsection (55)(c) if the machinery
             2883      or equipment is primarily used in the production or postproduction of the following media for
             2884      commercial distribution:
             2885          (i) a motion picture;


             2886          (ii) a television program;
             2887          (iii) a movie made for television;
             2888          (iv) a music video;
             2889          (v) a commercial;
             2890          (vi) a documentary; or
             2891          (vii) a medium similar to Subsections (55)(a)(i) through (vi) as determined by the
             2892      commission by administrative rule made in accordance with Subsection (55)(d); or
             2893          (b) notwithstanding Subsection (55)(a), purchases, leases, or rentals of machinery or
             2894      equipment by an establishment described in Subsection (55)(c) that is used for the production
             2895      or postproduction of the following are subject to the taxes imposed by this chapter:
             2896          (i) a live musical performance;
             2897          (ii) a live news program; or
             2898          (iii) a live sporting event;
             2899          (c) the following establishments listed in the 1997 North American Industry
             2900      Classification System of the federal Executive Office of the President, Office of Management
             2901      and Budget, apply to Subsections (55)(a) and (b):
             2902          (i) NAICS Code 512110; or
             2903          (ii) NAICS Code 51219; and
             2904          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2905      the commission may by rule:
             2906          (i) prescribe what constitutes a medium similar to Subsections (55)(a)(i) through (vi);
             2907      or
             2908          (ii) define:
             2909          (A) "commercial distribution";
             2910          (B) "live musical performance";
             2911          (C) "live news program"; or
             2912          (D) "live sporting event";
             2913          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but


             2914      on or before June 30, 2019, of machinery or equipment that:
             2915          (i) is leased or purchased for or by a facility that:
             2916          (A) is a renewable energy production facility;
             2917          (B) is located in the state; and
             2918          (C) (I) becomes operational on or after July 1, 2004; or
             2919          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             2920      2004 as a result of the use of the machinery or equipment;
             2921          (ii) has an economic life of five or more years; and
             2922