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H.B. 49 Enrolled

             1     

AMENDMENTS RELATED TO A TAX, FEE,

             2     
OR CHARGE ADMINISTERED BY THE STATE

             3     
TAX COMMISSION

             4     
2010 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Todd E. Kiser

             7     
Senate Sponsor: J. Stuart Adams

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill amends the General Taxation Policies chapter to address the taxes, fees, and
             12      charges administered by the State Tax Commission and the calculation of interest
             13      related to a tax, fee, or charge administered by the State Tax Commission.
             14      Highlighted Provisions:
             15          This bill:
             16          .    addresses definitions including defining the taxes, fees, and charges administered
             17      by the State Tax Commission;
             18          .    addresses the calculation of interest related to a tax, fee, or charge administered by
             19      the State Tax Commission, including:
             20              .    providing that under certain circumstances interest is allowed after a 45-day
             21      period if a return or amended return is with respect to certain income taxes and
             22      is filed electronically; and
             23              .    providing that under certain circumstances interest is allowed after a 90-day
             24      period if a return or amended return is with respect to a tax, fee, or charge
             25      except for certain income taxes or is not filed electronically; and
             26          .    makes technical and conforming changes.
             27      Monies Appropriated in this Bill:
             28          None
             29      Other Special Clauses:


             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          59-1-401, as last amended by Laws of Utah 2009, Chapters 31, 203, 212, and 336
             34          59-1-402, as last amended by Laws of Utah 2005, Chapter 264
             35          59-1-1402, as enacted by Laws of Utah 2009, Chapter 212
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 59-1-401 is amended to read:
             39           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             40      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             41      interest.
             42          (1) As used in this section:
             43          (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
             44      commission:
             45          (i) has implemented the commission's GenTax system; and
             46          (ii) at least 30 days before implementing the commission's GenTax system as
             47      described in Subsection (1)(a)(i), has provided notice in a conspicuous place on the
             48      commission's website stating:
             49          (A) the date the commission will implement the GenTax system with respect to the
             50      tax, fee, or charge; and
             51          (B) that, at the time the commission implements the GenTax system with respect to
             52      the tax, fee, or charge:
             53          (I) a person that files a return after the due date as described in Subsection (2)[(b)](a)
             54      is subject to the penalty described in Subsection (2)(c)(ii); and
             55          (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
             56      subject to the penalty described in Subsection (3)(b)(ii).
             57          (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or


             58      charge, the later of:
             59          (i) the date on which the commission implements the commission's GenTax system
             60      with respect to the tax, fee, or charge; or
             61          (ii) 30 days after the date the commission provides the notice described in Subsection
             62      (1)(a)(ii) with respect to the tax, fee, or charge.
             63          (c) (i) ["Tax] Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
             64          [(i)] (A) a tax, fee, or charge the commission administers under:
             65          [(A)] (I) this title;
             66          [(B)] (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             67          [(C)] (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax
             68      Act;
             69          [(D)] (IV) Section 19-6-410.5 ;
             70          [(E)] (V) Section 19-6-714 ;
             71          [(F)] (VI) Section 19-6-805 ;
             72          (VII) Section 34A-2-202 ;
             73          [(G)] (VIII) Section 40-6-14 ;
             74          [(H)] (IX) Section 69-2-5 ;
             75          [(I)] (X) Section 69-2-5.5 ; or
             76          [(J)] (XI) Section 69-2-5.6 ; or
             77          [(ii)] (B) another amount that by statute is subject to a penalty imposed under this
             78      section.
             79          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             80          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;
             81          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
             82          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309 ;
             83          (D) Chapter 3, Tax Equivalent Property Act; or
             84          (E) Chapter 4, Privilege Tax.
             85          (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated


             86      tax, fee, or charge.
             87          (2) (a) The due date for filing a return is:
             88          (i) if the person filing the return is not allowed by law an extension of time for filing
             89      the return, the day on which the return is due as provided by law; or
             90          (ii) if the person filing the return is allowed by law an extension of time for filing the
             91      return, the earlier of:
             92          (A) the date the person files the return; or
             93          (B) the last day of that extension of time as allowed by law.
             94          (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files
             95      a return after the due date described in Subsection (2)(a).
             96          (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
             97          (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
             98      tax, fee, or charge:
             99          (A) $20; or
             100          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             101          (ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
             102      fee, or charge, beginning on the activation date for the tax, fee, or charge:
             103          (A) $20; or
             104          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
             105      filed no later than five days after the due date described in Subsection (2)(a);
             106          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
             107      more than five days after the due date but no later than 15 days after the due date described in
             108      Subsection (2)(a); or
             109          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
             110      filed more than 15 days after the due date described in Subsection (2)(a).
             111          (d) This Subsection (2) does not apply to:
             112          (i) an amended return; or
             113          (ii) a return with no tax due.


             114          (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
             115          (i) the person files a return on or before the due date for filing a return described in
             116      Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
             117      date;
             118          (ii) the person:
             119          (A) is subject to a penalty under Subsection (2)(b); and
             120          (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
             121      due date for filing a return described in Subsection (2)(a);
             122          (iii) (A) the person is subject to a penalty under Subsection (2)(b); and
             123          (B) the commission estimates an amount of tax due for that person in accordance with
             124      Subsection 59-1-1406 (2);
             125          (iv) the person:
             126          (A) is mailed a notice of deficiency; and
             127          (B) within a 30-day period after the day on which the notice of deficiency described in
             128      Subsection (3)(a)(iv)(A) is mailed:
             129          (I) does not file a petition for redetermination or a request for agency action; and
             130          (II) fails to pay the tax, fee, or charge due on a return;
             131          (v) (A) the commission:
             132          (I) issues an order constituting final agency action resulting from a timely filed
             133      petition for redetermination or a timely filed request for agency action; or
             134          (II) is considered to have denied a request for reconsideration under Subsection
             135      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             136      request for agency action; and
             137          (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day
             138      period after the date the commission:
             139          (I) issues the order constituting final agency action described in Subsection
             140      (3)(a)(v)(A)(I); or
             141          (II) is considered to have denied the request for reconsideration described in


             142      Subsection (3)(a)(v)(A)(II); or
             143          (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
             144      of a final judicial decision resulting from a timely filed petition for judicial review.
             145          (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
             146          (i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             147      respect to an unactivated tax, fee, or charge:
             148          (A) $20; or
             149          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             150          (ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             151      respect to an activated tax, fee, or charge, beginning on the activation date:
             152          (A) $20; or
             153          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
             154      tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
             155      return described in Subsection (2)(a);
             156          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
             157      fee, or charge due on the return is paid more than five days after the due date for filing a return
             158      described in Subsection (2)(a) but no later than 15 days after that due date; or
             159          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
             160      tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
             161      return described in Subsection (2)(a).
             162          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax
             163      or quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 ,
             164      there shall be added a penalty in an amount determined by applying the interest rate provided
             165      under Section 59-1-402 plus four percentage points to the amount of the underpayment for the
             166      period of the underpayment.
             167          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             168      excess of the required installment over the amount, if any, of the installment paid on or before
             169      the due date for the installment.


             170          (ii) The period of the underpayment shall run from the due date for the installment to
             171      whichever of the following dates is the earlier:
             172          (A) the original due date of the tax return, without extensions, for the taxable year; or
             173          (B) with respect to any portion of the underpayment, the date on which that portion is
             174      paid.
             175          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             176      against unpaid required installments in the order in which the installments are required to be
             177      paid.
             178          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             179      person allowed by law an extension of time for filing a corporate franchise or income tax
             180      return under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax
             181      return under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount
             182      described in Subsection (5)(b) if, on or before the day on which the return is due as provided
             183      by law, not including the extension of time, the person fails to pay:
             184          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             185      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b);
             186      or
             187          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             188      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             189          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             190      extension of time for filing the return is an amount equal to 2% of the tax due on the return,
             191      unpaid as of the day on which the return is due as provided by law.
             192          (6) If a person does not file a return within an extension of time allowed by Section
             193      59-7-505 or 59-10-516 , the person:
             194          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             195          (b) is subject to a penalty in an amount equal to the sum of:
             196          (i) a late file penalty in an amount equal to the greater of:
             197          (A) $20; or


             198          (B) 10% of the tax due on the return, unpaid as of the day on which the return is due
             199      as provided by law, not including the extension of time; and
             200          (ii) a late pay penalty in an amount equal to the greater of:
             201          (A) $20; or
             202          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return
             203      is due as provided by law, not including the extension of time.
             204          (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as
             205      provided in this Subsection (7)(a).
             206          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a
             207      tax, fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment
             208      that is due to negligence.
             209          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
             210      tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
             211      underpayment.
             212          (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or
             213      charge, the penalty is the greater of $500 per period or 50% of the entire underpayment.
             214          (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee,
             215      or charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
             216          (b) If the commission determines that a person is liable for a penalty imposed under
             217      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
             218      penalty.
             219          (i) The notice of proposed penalty shall:
             220          (A) set forth the basis of the assessment; and
             221          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             222          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             223      penalty is proposed may:
             224          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             225      or


             226          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             227          (iii) A person against whom a penalty is proposed in accordance with this Subsection
             228      (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
             229      the commission.
             230          (iv) (A) If the commission determines that a person is liable for a penalty under this
             231      Subsection (7), the commission shall assess the penalty and give notice and demand for
             232      payment.
             233          (B) The commission shall mail the notice and demand for payment described in
             234      Subsection (7)(b)(iv)(A):
             235          (I) to the person's last-known address; and
             236          (II) in accordance with Section 59-1-1404 .
             237          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             238      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             239          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             240      determining that:
             241          (A) the seller meets one or more of the criteria described in Subsection
             242      59-12-107 (1)(a); and
             243          (B) the commission or a county, city, or town may require the seller to collect a tax
             244      under Subsections 59-12-103 (2)(a) through (d); or
             245          (ii) the commission issues a final unappealable administrative order determining that:
             246          (A) the seller meets one or more of the criteria described in Subsection
             247      59-12-107 (1)(a); and
             248          (B) the commission or a county, city, or town may require the seller to collect a tax
             249      under Subsections 59-12-103 (2)(a) through (d).
             250          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             251      subject to the penalty under Subsection (7)(a)(ii) if:
             252          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             253      determining that:


             254          (I) the seller meets one or more of the criteria described in Subsection
             255      59-12-107 (1)(a); and
             256          (II) the commission or a county, city, or town may require the seller to collect a tax
             257      under Subsections 59-12-103 (2)(a) through (d); or
             258          (B) the commission issues a final unappealable administrative order determining that:
             259          (I) the seller meets one or more of the criteria described in Subsection
             260      59-12-107 (1)(a); and
             261          (II) the commission or a county, city, or town may require the seller to collect a tax
             262      under Subsections 59-12-103 (2)(a) through (d); and
             263          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             264      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             265      establishment of new law.
             266          (8) The penalty for failure to file an information return, information report, or a
             267      complete supporting schedule is $50 for each information return, information report, or
             268      supporting schedule up to a maximum of $1,000.
             269          (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
             270      or impede administration of a law relating to a tax, fee, or charge and files a purported return
             271      that fails to contain information from which the correctness of reported tax, fee, or charge
             272      liability can be determined or that clearly indicates that the tax, fee, or charge liability shown
             273      is substantially incorrect, the penalty is $500.
             274          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             275      Subsection 59-12-108 (1)(a):
             276          (i) is subject to a penalty described in Subsection (2); and
             277          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             278      allowable under Subsection 59-12-108 (2).
             279          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             280      required by Subsection 59-12-108 (1)(a)(ii)(B):
             281          (i) is subject to a penalty described in Subsection (2); and


             282          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             283      allowable under Subsection 59-12-108 (2).
             284          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that
             285      person:
             286          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             287      following documents:
             288          (A) a return;
             289          (B) an affidavit;
             290          (C) a claim; or
             291          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             292          (ii) knows or has reason to believe that the document described in Subsection
             293      (11)(a)(i) will be used in connection with any material matter administered by the
             294      commission; and
             295          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             296      with any material matter administered by the commission, would result in an understatement
             297      of another person's liability for a tax, fee, or charge.
             298          (b) The following acts apply to Subsection (11)(a)(i):
             299          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             300          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             301          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             302          (iv) advising in the preparation or presentation of any portion of a document described
             303      in Subsection (11)(a)(i);
             304          (v) aiding in the preparation or presentation of any portion of a document described in
             305      Subsection (11)(a)(i);
             306          (vi) assisting in the preparation or presentation of any portion of a document described
             307      in Subsection (11)(a)(i); or
             308          (vii) counseling in the preparation or presentation of any portion of a document
             309      described in Subsection (11)(a)(i).


             310          (c) For purposes of Subsection (11)(a), the penalty:
             311          (i) shall be imposed by the commission;
             312          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             313      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             314          (iii) is in addition to any other penalty provided by law.
             315          (d) The commission may seek a court order to enjoin a person from engaging in
             316      conduct that is subject to a penalty under this Subsection (11).
             317          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             318      commission may make rules prescribing the documents that are similar to Subsections
             319      (11)(a)(i)(A) through (C).
             320          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             321      provided in Subsections (12)(b) through (e).
             322          (b) (i) A person who is required by this title or any laws the commission administers or
             323      regulates to register with or obtain a license or permit from the commission, who operates
             324      without having registered or secured a license or permit, or who operates when the registration,
             325      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             326          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             327      penalty may not:
             328          (A) be less than $500; or
             329          (B) exceed $1,000.
             330          (c) (i) A person who, with intent to evade a tax, fee, or charge or requirement of this
             331      title or any lawful requirement of the commission, fails to make, render, sign, or verify a return
             332      or to supply information within the time required by law, or who makes, renders, signs, or
             333      verifies a false or fraudulent return or statement, or who supplies false or fraudulent
             334      information, is guilty of a third degree felony.
             335          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             336      penalty may not:
             337          (A) be less than $1,000; or


             338          (B) exceed $5,000.
             339          (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
             340      charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
             341      guilty of a second degree felony.
             342          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             343      penalty may not:
             344          (A) be less than $1,500; or
             345          (B) exceed $25,000.
             346          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             347          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             348      documents:
             349          (I) a return;
             350          (II) an affidavit;
             351          (III) a claim; or
             352          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             353          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
             354      Subsection (12)(e)(i)(A):
             355          (I) is false or fraudulent as to any material matter; and
             356          (II) could be used in connection with any material matter administered by the
             357      commission.
             358          (ii) The following acts apply to Subsection (12)(e)(i):
             359          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             360          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             361          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             362          (D) advising in the preparation or presentation of any portion of a document described
             363      in Subsection (12)(e)(i)(A);
             364          (E) aiding in the preparation or presentation of any portion of a document described in
             365      Subsection (12)(e)(i)(A);


             366          (F) assisting in the preparation or presentation of any portion of a document described
             367      in Subsection (12)(e)(i)(A); or
             368          (G) counseling in the preparation or presentation of any portion of a document
             369      described in Subsection (12)(e)(i)(A).
             370          (iii) This Subsection (12)(e) applies:
             371          (A) regardless of whether the person for which the document described in Subsection
             372      (12)(e)(i)(A) is prepared or presented:
             373          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             374          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
             375          (B) in addition to any other penalty provided by law.
             376          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             377      penalty may not:
             378          (A) be less than $1,500; or
             379          (B) exceed $25,000.
             380          (v) The commission may seek a court order to enjoin a person from engaging in
             381      conduct that is subject to a penalty under this Subsection (12)(e).
             382          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             383      the commission may make rules prescribing the documents that are similar to Subsections
             384      (12)(e)(i)(A)(I) through (III).
             385          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             386      the later of six years:
             387          (i) from the date the tax should have been remitted; or
             388          (ii) after the day on which the person commits the criminal offense.
             389          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             390      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             391      this part.
             392          Section 2. Section 59-1-402 is amended to read:
             393           59-1-402. Definitions -- Interest.


             394          [(1) Notwithstanding Subsections (2) and (3), the rate of interest applicable to certain
             395      installment sales for the purposes of the corporate franchise tax shall be determined pursuant
             396      to Section 453A, Internal Revenue Code, as provided in Section 59-7-112 .]
             397          (1) As used in this section:
             398          (a) "Final judicial decision" means a final ruling by a court of this state or the United
             399      States for which the time for any further review or proceeding has expired.
             400          (b) "Retroactive application of a judicial decision" means the application of a final
             401      judicial decision that:
             402          (i) invalidates a state or federal taxation statute; and
             403          (ii) requires the state to provide a refund for an overpayment that was made:
             404          (A) prior to the final judicial decision; or
             405          (B) during the 180-day period after the final judicial decision.
             406          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
             407          (A) a tax, fee, or charge the commission administers under:
             408          (I) this title;
             409          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             410          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             411          (IV) Section 19-6-410.5 ;
             412          (V) Section 19-6-714 ;
             413          (VI) Section 19-6-805 ;
             414          (VII) Section 34A-2-202 ;
             415          (VIII) Section 40-6-14 ;
             416          (IX) Section 69-2-5 ;
             417          (X) Section 69-2-5.5 ; or
             418          (XI) Section 69-2-5.6 ; or
             419          (B) another amount that by statute is subject to interest imposed under this section.
             420          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             421          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;


             422          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
             423          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309 ;
             424          (D) Chapter 3, Tax Equivalent Property Act;
             425          (E) Chapter 4, Privilege Tax; or
             426          (F) Chapter 13, Part 5, Interstate Agreements.
             427          (2) Except as otherwise provided for by law, the interest rate for a calendar year for
             428      [all taxes and fees] a tax, fee, or charge administered by the commission shall be calculated
             429      based on the federal short-term rate determined by the Secretary of the Treasury under Section
             430      6621, Internal Revenue Code, [and] in effect for the preceding fourth calendar quarter.
             431          (3) The interest rate calculation shall be as follows:
             432          (a) except as provided in Subsection [(6)] (7), in the case of [overpayments and
             433      refunds] an overpayment or refund, simple interest shall be calculated at the rate of two
             434      percentage points above the federal short-term rate; or
             435          (b) in the case of [underpayments, deficiencies, and delinquencies] an underpayment,
             436      deficiency, or delinquency, simple interest shall be calculated at the rate of two percentage
             437      points above the federal short-term rate.
             438          (4) Notwithstanding Subsection (2) or (3), the interest rate applicable to certain
             439      installment sales for purposes of a tax under Chapter 7, Corporate Franchise and Income
             440      Taxes, shall be determined in accordance with Section 453A, Internal Revenue Code, as
             441      provided in Section 59-7-112 .
             442          [(4)] (5) (a) Except as provided in Subsection [(4)(c), if any overpayment of tax or fee
             443      administered by the commission] (5)(c), interest may not be allowed on an overpayment of a
             444      tax, fee, or charge if the overpayment of the tax, fee, or charge is refunded within [90]:
             445          (i) 45 days after the last date prescribed for filing the return [of such tax or fee, no
             446      interest shall be allowed on the overpayment.] with respect to a tax under Chapter 7, Corporate
             447      Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act, if the return is filed
             448      electronically; or
             449          (ii) 90 days after the last date prescribed for filing the return:


             450          (A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
             451      Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
             452          (B) if the return is not filed electronically.
             453          (b) Except as provided in Subsection [(4)] (5)(c), if the return is filed after the last date
             454      prescribed for filing the return, [no] interest [shall] may not be allowed on the overpayment if
             455      the overpayment is refunded within [90]:
             456          (i) 45 days after the date the return is filed[.]:
             457          (A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or
             458      Chapter 10, Individual Income Tax Act; and
             459          (B) if the return is filed electronically; or
             460          (ii) 90 days after the date the return is filed:
             461          (A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
             462      Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
             463          (B) if the return is not filed electronically.
             464          (c) (i) [Notwithstanding Subsection (4)(a) or (b), in] In the case of an amended return,
             465      interest on an overpayment shall be allowed:
             466          (A) for a time period:
             467          (I) that begins on the later of:
             468          (Aa) the date the original return was filed; or
             469          (Bb) the due date for filing the original return not including any extensions for filing
             470      the original return; and
             471          (II) that ends on the date the commission receives the amended return; and
             472          (B) if the commission does not make a refund of an overpayment under this
             473      Subsection [(4)] (5)(c) [within a 90-day]:
             474          (I) if the amended return is with respect to a tax under Chapter 7, Corporate Franchise
             475      and Income Taxes, or Chapter 10, Individual Income Tax Act, and is filed electronically,
             476      within a 45-day period after the date the commission receives the amended return, for a time
             477      period:


             478          [(I)] (Aa) that begins [91] 46 days after the commission receives the amended return;
             479      and
             480          [(II)] (Bb) subject to Subsection [(4)] (5)(c)(ii), that ends on the date that the
             481      commission completes processing the refund of the overpayment[.]; or
             482          (II) if the amended return is with respect to a tax, fee, or charge except for a tax under
             483      Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
             484      or is not filed electronically, within a 90-day period after the date the commission receives the
             485      amended return, for a time period:
             486          (Aa) that begins 91 days after the commission receives the amended return; and
             487          (Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
             488      completes processing the refund of the overpayment.
             489          (ii) For purposes of Subsection [(4)(c)(i)(B)(II)] (5)(c)(i)(B)(I)(Bb) or
             490      (5)(c)(i)(B)(II)(Bb), interest shall be calculated forward from the preparation date of the refund
             491      document to allow for processing.
             492          [(5)] (6) Interest on any underpayment, deficiency, or delinquency of [any tax or fee
             493      administered by the commission] a tax, fee, or charge shall be computed from the time the
             494      original return is due, excluding any filing or payment extensions, to the date the payment is
             495      received.
             496          [(6) (a) Notwithstanding Subsection (3)(a), interest on refunds]
             497          (7) Interest on a refund relating to a tax, fee, or charge may not be paid on any
             498      overpayment that arises from a statute that is determined to be invalid under state or federal
             499      law or declared unconstitutional under the constitution of the United States or Utah if the basis
             500      for the refund is the retroactive application of a judicial decision upholding the claim of
             501      unconstitutionality or the invalidation of a statute.
             502          [(b) For purposes of this Subsection (6):]
             503          [(i) "final judicial decision" means a final ruling by a court of this state or the United
             504      States for which the time for any further review or proceeding has expired; and]
             505          [(ii) "retroactive application of a judicial decision" means the application of a final


             506      judicial decision that:]
             507          [(A) invalidates a state or federal taxation statute; and]
             508          [(B) requires the state to provide refunds for overpayments that were made:]
             509          [(I) prior to the final judicial decision; or]
             510          [(II) during the 180-day period after the final judicial decision.]
             511          [(7) This section does not apply to:]
             512          [(a) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;]
             513          [(b) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;]
             514          [(c) Chapter 2, Property Tax Act, except for Section 59-2-1309 ;]
             515          [(d) Chapter 3, Tax Equivalent Property Act;]
             516          [(e) Chapter 4, Privilege Tax; or]
             517          [(f) Chapter 13, Part 5, Interstate Agreements.]
             518          Section 3. Section 59-1-1402 is amended to read:
             519           59-1-1402. Definitions.
             520          As used in this part:
             521          (1) "Administrative cost" means a fee imposed to cover:
             522          (a) the cost of filing;
             523          (b) the cost of administering a garnishment; or
             524          (c) a cost similar to Subsection (1)(a) or (b) as determined by the commission by rule
             525      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             526          (2) "Books and records" means the following made available in printed or electronic
             527      format:
             528          (a) an account;
             529          (b) a book;
             530          (c) an invoice;
             531          (d) a memorandum;
             532          (e) a paper;
             533          (f) a record; or


             534          (g) an item similar to Subsections (2)(a) through (f) as determined by the commission
             535      by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             536          (3) "Deficiency" means:
             537          (a) the amount by which a tax, fee, or charge exceeds the difference between:
             538          (i) the sum of:
             539          (A) the amount shown as the tax, fee, or charge by a person on the person's return; and
             540          (B) any amount previously assessed, or collected without assessment, as a deficiency;
             541      and
             542          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
             543      to that tax, fee, or charge; or
             544          (b) if a person does not show an amount as a tax, fee, or charge on the person's return,
             545      or if a person does not make a return, the amount by which the tax, fee, or charge exceeds:
             546          (i) the amount previously assessed, or collected without assessment, as a deficiency;
             547      and
             548          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
             549      to that tax, fee, or charge.
             550          (4) "Garnishment" means any legal or equitable procedure through which one or more
             551      of the following are required to be withheld for payment of an amount a person owes:
             552          (a) an asset of the person held by another person; or
             553          (b) the earnings of the person.
             554          (5) "Liability" means the following that a person is required to remit to the
             555      commission:
             556          (a) a tax, fee, or charge;
             557          (b) an addition to a tax, fee, or charge;
             558          (c) an administrative cost;
             559          (d) interest that accrues in accordance with Section 59-1-402 ; or
             560          (e) a penalty that accrues in accordance with Section 59-1-401 .
             561          (6) (a) Subject to Subsection (6)(b), "mathematical error" is as defined in Section


             562      6213(g)(2), Internal Revenue Code.
             563          (b) The reference to Section 6213(g)(2), Internal Revenue Code, in Subsection (6)(a)
             564      means:
             565          (i) the reference to Section 6213(g)(2), Internal Revenue Code, in effect for the taxable
             566      year; or
             567          (ii) a corresponding or comparable provision of the Internal Revenue Code as
             568      amended, redesignated, or reenacted.
             569          (7) (a) Except as provided in Subsection (7)(b), "tax, fee, or charge" means:
             570          (i) a tax, fee, or charge the commission administers under:
             571          [(i)] (A) this title;
             572          [(ii)] (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             573          [(iii)] (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax
             574      Act;
             575          [(iv)] (D) Section 19-6-410.5 ;
             576          [(v)] (E) Section 19-6-714 ;
             577          [(vi)] (F) Section 19-6-805 ;
             578          (G) Section 34A-2-202 ;
             579          (H) Section 40-6-14 ;
             580          [(vii)] (I) Section 69-2-5 ;
             581          [(viii)] (J) Section 69-2-5.5 ; or
             582          [(ix)] (K) Section 69-2-5.6 [.]; or
             583          (ii) another amount that by statute is administered by the commission.
             584          (b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             585          (i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;
             586          (ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
             587          [(i)] (iii) Chapter 2, Property Tax Act;
             588          [(ii)] (iv) Chapter 3, Tax Equivalent Property Act; [or]
             589          [(iii)] (v) Chapter 4, Privilege Tax[.]; or


             590          (vi) Chapter 13, Part 5, Interstate Agreements.
             591          (8) "Transferee" means:
             592          (a) a devisee;
             593          (b) a distributee;
             594          (c) a donee;
             595          (d) an heir;
             596          (e) a legatee; or
             597          (f) a person similar to Subsections (8)(a) through (e) as determined by the commission
             598      by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.


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