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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to sales and use taxes.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ addresses the state sales and use tax rates;
14 ▸ addresses the circumstances under which a person may be required to collect and
15 remit sales and use taxes to the State Tax Commission;
16 ▸ makes technical and conforming changes; and
17 ▸ contains a severability provision.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides a special effective date.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-1-401, as last amended by Laws of Utah 2015, Chapter 369
25 59-12-103, as last amended by Laws of Utah 2015, Chapter 283
26 59-12-103.1, as last amended by Laws of Utah 2013, Chapter 150
27 59-12-107, as last amended by Laws of Utah 2012, Chapters 178, 312, and 399
28 59-12-108, as last amended by Laws of Utah 2013, Chapter 50
29 59-12-211, as last amended by Laws of Utah 2012, Chapter 312
30 59-12-211.1, as last amended by Laws of Utah 2012, Chapter 312
31 76-8-1101, as last amended by Laws of Utah 2014, Chapter 52
32 ENACTS:
33 59-12-103.3, Utah Code Annotated 1953
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35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 59-1-401 is amended to read:
37 59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
38 of limitations -- Commission authority to waive, reduce, or compromise penalty or
39 interest.
40 (1) As used in this section:
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77 section.
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86 (2) (a) The due date for filing a return is:
87 (i) if the person filing the return is not allowed by law an extension of time for filing
88 the return, the day on which the return is due as provided by law; or
89 (ii) if the person filing the return is allowed by law an extension of time for filing the
90 return, the earlier of:
91 (A) the date the person files the return; or
92 (B) the last day of that extension of time as allowed by law.
93 (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
94 return after the due date described in Subsection (2)(a).
95 (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
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104 return is filed no later than five days after the due date described in Subsection (2)(a);
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106 is filed more than five days after the due date but no later than 15 days after the due date
107 described in Subsection (2)(a); or
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109 return is filed more than 15 days after the due date described in Subsection (2)(a).
110 (d) This Subsection (2) does not apply to:
111 (i) an amended return; or
112 (ii) a return with no tax due.
113 (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
114 (i) the person files a return on or before the due date for filing a return described in
115 Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
116 date;
117 (ii) the person:
118 (A) is subject to a penalty under Subsection (2)(b); and
119 (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
120 due date for filing a return described in Subsection (2)(a);
121 (iii) (A) the person is subject to a penalty under Subsection (2)(b); and
122 (B) the commission estimates an amount of tax due for that person in accordance with
123 Subsection 59-1-1406(2);
124 (iv) the person:
125 (A) is mailed a notice of deficiency; and
126 (B) within a 30-day period after the day on which the notice of deficiency described in
127 Subsection (3)(a)(iv)(A) is mailed:
128 (I) does not file a petition for redetermination or a request for agency action; and
129 (II) fails to pay the tax, fee, or charge due on a return;
130 (v) (A) the commission:
131 (I) issues an order constituting final agency action resulting from a timely filed petition
132 for redetermination or a timely filed request for agency action; or
133 (II) is considered to have denied a request for reconsideration under Subsection
134 63G-4-302(3)(b) resulting from a timely filed petition for redetermination or a timely filed
135 request for agency action; and
136 (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
137 after the date the commission:
138 (I) issues the order constituting final agency action described in Subsection
139 (3)(a)(v)(A)(I); or
140 (II) is considered to have denied the request for reconsideration described in
141 Subsection (3)(a)(v)(A)(II); or
142 (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
143 of a final judicial decision resulting from a timely filed petition for judicial review.
144 (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
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153 activated tax, fee, or charge due on the return is paid no later than five days after the due date
154 for filing a return described in Subsection (2)(a);
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156 activated tax, fee, or charge due on the return is paid more than five days after the due date for
157 filing a return described in Subsection (2)(a) but no later than 15 days after that due date; or
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159 activated tax, fee, or charge due on the return is paid more than 15 days after the due date for
160 filing a return described in Subsection (2)(a).
161 (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
162 quarterly installments required by Sections 59-5-107, 59-5-207, 59-7-504, and 59-9-104, there
163 shall be added a penalty in an amount determined by applying the interest rate provided under
164 Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
165 of the underpayment.
166 (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
167 excess of the required installment over the amount, if any, of the installment paid on or before
168 the due date for the installment.
169 (ii) The period of the underpayment shall run from the due date for the installment to
170 whichever of the following dates is the earlier:
171 (A) the original due date of the tax return, without extensions, for the taxable year; or
172 (B) with respect to any portion of the underpayment, the date on which that portion is
173 paid.
174 (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
175 against unpaid required installments in the order in which the installments are required to be
176 paid.
177 (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
178 person allowed by law an extension of time for filing a corporate franchise or income tax return
179 under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
180 under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
181 Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
182 including the extension of time, the person fails to pay:
183 (i) for a person filing a corporate franchise or income tax return under Chapter 7,
184 Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507(1)(b); or
185 (ii) for a person filing an individual income tax return under Chapter 10, Individual
186 Income Tax Act, the payment required by Subsection 59-10-516(2).
187 (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
188 extension of time for filing the return is an amount equal to 2% of the tax due on the return,
189 unpaid as of the day on which the return is due as provided by law.
190 (6) If a person does not file a return within an extension of time allowed by Section
191 59-7-505 or 59-10-516, the person:
192 (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
193 (b) is subject to a penalty in an amount equal to the sum of:
194 (i) a late file penalty in an amount equal to the greater of:
195 (A) $20; or
196 (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
197 provided by law, not including the extension of time; and
198 (ii) a late pay penalty in an amount equal to the greater of:
199 (A) $20; or
200 (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
201 due as provided by law, not including the extension of time.
202 (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
203 in this Subsection (7)(a).
204 (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
205 fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
206 is due to negligence.
207 (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
208 tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
209 underpayment.
210 (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
211 the penalty is the greater of $500 per period or 50% of the entire underpayment.
212 (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
213 charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
214 (b) If the commission determines that a person is liable for a penalty imposed under
215 Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
216 penalty.
217 (i) The notice of proposed penalty shall:
218 (A) set forth the basis of the assessment; and
219 (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
220 (ii) Upon receipt of the notice of proposed penalty, the person against whom the
221 penalty is proposed may:
222 (A) pay the amount of the proposed penalty at the place and time stated in the notice;
223 or
224 (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
225 (iii) A person against whom a penalty is proposed in accordance with this Subsection
226 (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
227 the commission.
228 (iv) (A) If the commission determines that a person is liable for a penalty under this
229 Subsection (7), the commission shall assess the penalty and give notice and demand for
230 payment.
231 (B) The commission shall mail the notice and demand for payment described in
232 Subsection (7)(b)(iv)(A):
233 (I) to the person's last-known address; and
234 (II) in accordance with Section 59-1-1404.
235 (c) A seller that voluntarily collects a tax under Subsection 59-12-107(2)[
236 not subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
237 (i) a court of competent jurisdiction issues a final, unappealable judgment or order
238 determining that:
239 (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
240 or is a seller required to pay or collect and remit sales and use taxes under Subsection
241 59-12-107(2)(b) or (d); and
242 (B) the commission or a county, city, or town may require the seller to collect a tax
243 under Subsections 59-12-103(2)(a) through (d); or
244 (ii) the commission issues a final, unappealable administrative order determining that:
245 (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
246 or is a seller required to pay or collect and remit sales and use taxes under Subsection
247 59-12-107(2)(b) or (d); 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(2)[
251 not 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 59-12-107(2)(a)
255 or is a seller required to pay or collect and remit sales and use taxes under Subsection
256 59-12-107(2)(b) or (d); and
257 (II) the commission or a county, city, or town may require the seller to collect a tax
258 under Subsections 59-12-103(2)(a) through (d); or
259 (B) the commission issues a final, unappealable administrative order determining that:
260 (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
261 or is a seller required to pay or collect and remit sales and use taxes under Subsection
262 59-12-107(2)(b) or (d); and
263 (II) the commission or a county, city, or town may require the seller to collect a tax
264 under Subsections 59-12-103(2)(a) through (d); and
265 (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
266 nonfrivolous argument for the extension, modification, or reversal of existing law or the
267 establishment of new law.
268 (8) (a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an
269 information return, information report, or a complete supporting schedule is $50 for each
270 information return, information report, or supporting schedule up to a maximum of $1,000.
271 (b) If an employer is subject to a penalty under Subsection (13), the employer may not
272 be subject to a penalty under Subsection (8)(a).
273 (c) If an employer is subject to a penalty under this Subsection (8) for failure to file a
274 return in accordance with Subsection 59-10-406(3) on or before the due date described in
275 Subsection 59-10-406(3)(b)(ii), the commission may not impose a penalty under this
276 Subsection (8) unless the return is filed more than 14 days after the due date described in
277 Subsection 59-10-406(3)(b)(ii).
278 (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
279 or impede administration of a law relating to a tax, fee, or charge and files a purported return
280 that fails to contain information from which the correctness of reported tax, fee, or charge
281 liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
282 substantially incorrect, the penalty is $500.
283 (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
284 Subsection 59-12-108(1)(a):
285 (i) is subject to a penalty described in Subsection (2); and
286 (ii) may not retain the percentage of sales and use taxes that would otherwise be
287 allowable under Subsection 59-12-108(2).
288 (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
289 required by Subsection 59-12-108(1)(a)(ii)(B):
290 (i) is subject to a penalty described in Subsection (2); and
291 (ii) may not retain the percentage of sales and use taxes that would otherwise be
292 allowable under Subsection 59-12-108(2).
293 (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
294 (i) commits an act described in Subsection (11)(b) with respect to one or more of the
295 following documents:
296 (A) a return;
297 (B) an affidavit;
298 (C) a claim; or
299 (D) a document similar to Subsections (11)(a)(i)(A) through (C);
300 (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
301 will be used in connection with any material matter administered by the commission; and
302 (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
303 with any material matter administered by the commission, would result in an understatement of
304 another person's liability for a tax, fee, or charge.
305 (b) The following acts apply to Subsection (11)(a)(i):
306 (i) preparing any portion of a document described in Subsection (11)(a)(i);
307 (ii) presenting any portion of a document described in Subsection (11)(a)(i);
308 (iii) procuring any portion of a document described in Subsection (11)(a)(i);
309 (iv) advising in the preparation or presentation of any portion of a document described
310 in Subsection (11)(a)(i);
311 (v) aiding in the preparation or presentation of any portion of a document described in
312 Subsection (11)(a)(i);
313 (vi) assisting in the preparation or presentation of any portion of a document described
314 in Subsection (11)(a)(i); or
315 (vii) counseling in the preparation or presentation of any portion of a document
316 described in Subsection (11)(a)(i).
317 (c) For purposes of Subsection (11)(a), the penalty:
318 (i) shall be imposed by the commission;
319 (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
320 the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
321 (iii) is in addition to any other penalty provided by law.
322 (d) The commission may seek a court order to enjoin a person from engaging in
323 conduct that is subject to a penalty under this Subsection (11).
324 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
325 commission may make rules prescribing the documents that are similar to Subsections
326 (11)(a)(i)(A) through (C).
327 (12) (a) As provided in Section 76-8-1101, criminal offenses and penalties are as
328 provided in Subsections (12)(b) through (e).
329 (b) (i) A person [
330 (A) is required by this title or any laws the commission administers or regulates to
331 register with or obtain a license or permit from the commission[
332 (B) operates without having registered or secured a license or permit[
333 operates when the registration, license, or permit is expired or not current[
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335 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(b)(i), the
336 penalty may not:
337 (A) be less than $500; or
338 (B) exceed $1,000.
339 (c) (i) With respect to a tax, fee, or charge, a person [
340 felony if the person:
341 (A) knowingly and intentionally, and without a reasonable good faith basis, fails to
342 make, render, sign, or verify a return within the time required by law or to supply information
343 within the time required by law[
344 (B) makes, renders, signs, or verifies a false or fraudulent return or statement[
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346 (C) supplies false or fraudulent information[
347 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(c)(i), the
348 penalty may not:
349 (A) be less than $1,000; or
350 (B) exceed $5,000.
351 (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
352 charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
353 guilty of a second degree felony.
354 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(d)(i), the
355 penalty may not:
356 (A) be less than $1,500; or
357 (B) exceed $25,000.
358 (e) (i) A person is guilty of a second degree felony if that person commits an act:
359 (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
360 documents:
361 (I) a return;
362 (II) an affidavit;
363 (III) a claim; or
364 (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
365 (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
366 Subsection (12)(e)(i)(A):
367 (I) is false or fraudulent as to any material matter; and
368 (II) could be used in connection with any material matter administered by the
369 commission.
370 (ii) The following acts apply to Subsection (12)(e)(i):
371 (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
372 (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
373 (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
374 (D) advising in the preparation or presentation of any portion of a document described
375 in Subsection (12)(e)(i)(A);
376 (E) aiding in the preparation or presentation of any portion of a document described in
377 Subsection (12)(e)(i)(A);
378 (F) assisting in the preparation or presentation of any portion of a document described
379 in Subsection (12)(e)(i)(A); or
380 (G) counseling in the preparation or presentation of any portion of a document
381 described in Subsection (12)(e)(i)(A).
382 (iii) This Subsection (12)(e) applies:
383 (A) regardless of whether the person for which the document described in Subsection
384 (12)(e)(i)(A) is prepared or presented:
385 (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
386 (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
387 (B) in addition to any other penalty provided by law.
388 (iv) Notwithstanding Section 76-3-301, for purposes of this Subsection (12)(e), the
389 penalty may not:
390 (A) be less than $1,500; or
391 (B) exceed $25,000.
392 (v) The commission may seek a court order to enjoin a person from engaging in
393 conduct that is subject to a penalty under this Subsection (12)(e).
394 (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
395 the commission may make rules prescribing the documents that are similar to Subsections
396 (12)(e)(i)(A)(I) through (III).
397 (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
398 the later of six years:
399 (i) from the date the tax should have been remitted; or
400 (ii) after the day on which the person commits the criminal offense.
401 (13) (a) Subject to Subsection (13)(b), an employer that is required to file a form with
402 the commission in accordance with Subsection 59-10-406(8) is subject to a penalty described
403 in Subsection (13)(b) if the employer:
404 (i) fails to file the form with the commission in an electronic format approved by the
405 commission as required by Subsection 59-10-406(8);
406 (ii) fails to file the form on or before the due date provided in Subsection 59-10-406(8);
407 (iii) fails to provide accurate information on the form; or
408 (iv) fails to provide all of the information required by the Internal Revenue Service to
409 be contained on the form.
410 (b) For purposes of Subsection (13)(a), the penalty is:
411 (i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the
412 form in accordance with Subsection 59-10-406(8), more than 14 days after the due date
413 provided in Subsection 59-10-406(8) but no later than 30 days after the due date provided in
414 Subsection 59-10-406(8);
415 (ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the
416 form in accordance with Subsection 59-10-406(8), more than 30 days after the due date
417 provided in Subsection 59-10-406(8) but on or before June 1; or
418 (iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
419 (A) files the form in accordance with Subsection 59-10-406(8) after June 1; or
420 (B) fails to file the form.
421 (14) Upon making a record of its actions, and upon reasonable cause shown, the
422 commission may waive, reduce, or compromise any of the penalties or interest imposed under
423 this part.
424 Section 2. Section 59-12-103 is amended to read:
425 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
426 tax revenues.
427 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
428 charged for the following transactions:
429 (a) retail sales of tangible personal property made within the state;
430 (b) amounts paid for:
431 (i) telecommunications service, other than mobile telecommunications service, that
432 originates and terminates within the boundaries of this state;
433 (ii) mobile telecommunications service that originates and terminates within the
434 boundaries of one state only to the extent permitted by the Mobile Telecommunications
435 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
436 (iii) an ancillary service associated with a:
437 (A) telecommunications service described in Subsection (1)(b)(i); or
438 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
439 (c) sales of the following for commercial use:
440 (i) gas;
441 (ii) electricity;
442 (iii) heat;
443 (iv) coal;
444 (v) fuel oil; or
445 (vi) other fuels;
446 (d) sales of the following for residential use:
447 (i) gas;
448 (ii) electricity;
449 (iii) heat;
450 (iv) coal;
451 (v) fuel oil; or
452 (vi) other fuels;
453 (e) sales of prepared food;
454 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
455 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
456 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
457 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
458 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
459 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
460 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
461 horseback rides, sports activities, or any other amusement, entertainment, recreation,
462 exhibition, cultural, or athletic activity;
463 (g) amounts paid or charged for services for repairs or renovations of tangible personal
464 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
465 (i) the tangible personal property; and
466 (ii) parts used in the repairs or renovations of the tangible personal property described
467 in Subsection (1)(g)(i), regardless of whether:
468 (A) any parts are actually used in the repairs or renovations of that tangible personal
469 property; or
470 (B) the particular parts used in the repairs or renovations of that tangible personal
471 property are exempt from a tax under this chapter;
472 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
473 assisted cleaning or washing of tangible personal property;
474 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
475 accommodations and services that are regularly rented for less than 30 consecutive days;
476 (j) amounts paid or charged for laundry or dry cleaning services;
477 (k) amounts paid or charged for leases or rentals of tangible personal property if within
478 this state the tangible personal property is:
479 (i) stored;
480 (ii) used; or
481 (iii) otherwise consumed;
482 (l) amounts paid or charged for tangible personal property if within this state the
483 tangible personal property is:
484 (i) stored;
485 (ii) used; or
486 (iii) consumed; and
487 (m) amounts paid or charged for a sale:
488 (i) (A) of a product transferred electronically; or
489 (B) of a repair or renovation of a product transferred electronically; and
490 (ii) regardless of whether the sale provides:
491 (A) a right of permanent use of the product; or
492 (B) a right to use the product that is less than a permanent use, including a right:
493 (I) for a definite or specified length of time; and
494 (II) that terminates upon the occurrence of a condition.
495 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
496 is imposed on a transaction described in Subsection (1) equal to the sum of:
497 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
498 (A) [
499 59-12-103.3(2); and
500 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
501 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
502 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
503 State Sales and Use Tax Act; and
504 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
505 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
506 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
507 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
508 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
509 transaction under this chapter other than this part.
510 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
511 on a transaction described in Subsection (1)(d) equal to the sum of:
512 (i) a state tax imposed on the transaction at a tax rate of 2%; and
513 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
514 transaction under this chapter other than this part.
515 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
516 on amounts paid or charged for food and food ingredients equal to the sum of:
517 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
518 a tax rate of 1.75%; and
519 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
520 amounts paid or charged for food and food ingredients under this chapter other than this part.
521 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
522 tangible personal property other than food and food ingredients, a state tax and a local tax is
523 imposed on the entire bundled transaction equal to the sum of:
524 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
525 (I) the tax rate described in Subsection (2)(a)(i)(A); and
526 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
527 Sales and Use Tax Act, if the location of the transaction as determined under Sections
528 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
529 Additional State Sales and Use Tax Act; and
530 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
531 Sales and Use Tax Act, if the location of the transaction as determined under Sections
532 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
533 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
534 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
535 described in Subsection (2)(a)(ii).
536 (ii) If an optional computer software maintenance contract is a bundled transaction that
537 consists of taxable and nontaxable products that are not separately itemized on an invoice or
538 similar billing document, the purchase of the optional computer software maintenance contract
539 is 40% taxable under this chapter and 60% nontaxable under this chapter.
540 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
541 transaction described in Subsection (2)(d)(i) or (ii):
542 (A) if the sales price of the bundled transaction is attributable to tangible personal
543 property, a product, or a service that is subject to taxation under this chapter and tangible
544 personal property, a product, or service that is not subject to taxation under this chapter, the
545 entire bundled transaction is subject to taxation under this chapter unless:
546 (I) the seller is able to identify by reasonable and verifiable standards the tangible
547 personal property, product, or service that is not subject to taxation under this chapter from the
548 books and records the seller keeps in the seller's regular course of business; or
549 (II) state or federal law provides otherwise; or
550 (B) if the sales price of a bundled transaction is attributable to two or more items of
551 tangible personal property, products, or services that are subject to taxation under this chapter
552 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
553 higher tax rate unless:
554 (I) the seller is able to identify by reasonable and verifiable standards the tangible
555 personal property, product, or service that is subject to taxation under this chapter at the lower
556 tax rate from the books and records the seller keeps in the seller's regular course of business; or
557 (II) state or federal law provides otherwise.
558 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
559 seller's regular course of business includes books and records the seller keeps in the regular
560 course of business for nontax purposes.
561 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
562 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
563 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
564 of tangible personal property, other property, a product, or a service that is not subject to
565 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
566 the seller, at the time of the transaction:
567 (A) separately states the portion of the transaction that is not subject to taxation under
568 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
569 (B) is able to identify by reasonable and verifiable standards, from the books and
570 records the seller keeps in the seller's regular course of business, the portion of the transaction
571 that is not subject to taxation under this chapter.
572 (ii) A purchaser and a seller may correct the taxability of a transaction if:
573 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
574 the transaction that is not subject to taxation under this chapter was not separately stated on an
575 invoice, bill of sale, or similar document provided to the purchaser because of an error or
576 ignorance of the law; and
577 (B) the seller is able to identify by reasonable and verifiable standards, from the books
578 and records the seller keeps in the seller's regular course of business, the portion of the
579 transaction that is not subject to taxation under this chapter.
580 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
581 in the seller's regular course of business includes books and records the seller keeps in the
582 regular course of business for nontax purposes.
583 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
584 personal property, products, or services that are subject to taxation under this chapter at
585 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
586 unless the seller, at the time of the transaction:
587 (A) separately states the items subject to taxation under this chapter at each of the
588 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
589 (B) is able to identify by reasonable and verifiable standards the tangible personal
590 property, product, or service that is subject to taxation under this chapter at the lower tax rate
591 from the books and records the seller keeps in the seller's regular course of business.
592 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
593 seller's regular course of business includes books and records the seller keeps in the regular
594 course of business for nontax purposes.
595 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
596 rate imposed under the following shall take effect on the first day of a calendar quarter:
597 (i) Subsection (2)(a)(i)(A);
598 (ii) Subsection (2)(b)(i);
599 (iii) Subsection (2)(c)(i); or
600 (iv) Subsection (2)(d)(i)(A)(I).
601 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
602 begins on or after the effective date of the tax rate increase if the billing period for the
603 transaction begins before the effective date of a tax rate increase imposed under:
604 (A) Subsection (2)(a)(i)(A);
605 (B) Subsection (2)(b)(i);
606 (C) Subsection (2)(c)(i); or
607 (D) Subsection (2)(d)(i)(A)(I).
608 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
609 statement for the billing period is rendered on or after the effective date of the repeal of the tax
610 or the tax rate decrease imposed under:
611 (A) Subsection (2)(a)(i)(A);
612 (B) Subsection (2)(b)(i);
613 (C) Subsection (2)(c)(i); or
614 (D) Subsection (2)(d)(i)(A)(I).
615 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
616 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
617 change in a tax rate takes effect:
618 (A) on the first day of a calendar quarter; and
619 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
620 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
621 (A) Subsection (2)(a)(i)(A);
622 (B) Subsection (2)(b)(i);
623 (C) Subsection (2)(c)(i); or
624 (D) Subsection (2)(d)(i)(A)(I).
625 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
626 the commission may by rule define the term "catalogue sale."
627 (3) (a) The following state taxes shall be deposited into the General Fund:
628 (i) the tax imposed by Subsection (2)(a)(i)(A);
629 (ii) the tax imposed by Subsection (2)(b)(i);
630 (iii) the tax imposed by Subsection (2)(c)(i); or
631 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
632 (b) The following local taxes shall be distributed to a county, city, or town as provided
633 in this chapter:
634 (i) the tax imposed by Subsection (2)(a)(ii);
635 (ii) the tax imposed by Subsection (2)(b)(ii);
636 (iii) the tax imposed by Subsection (2)(c)(ii); and
637 (iv) the tax imposed by Subsection (2)(d)(i)(B).
638 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
639 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
640 through (g):
641 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
642 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
643 (B) for the fiscal year; or
644 (ii) $17,500,000.
645 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
646 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
647 Department of Natural Resources to:
648 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
649 protect sensitive plant and animal species; or
650 (B) award grants, up to the amount authorized by the Legislature in an appropriations
651 act, to political subdivisions of the state to implement the measures described in Subsections
652 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
653 (ii) Money transferred to the Department of Natural Resources under Subsection
654 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
655 person to list or attempt to have listed a species as threatened or endangered under the
656 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
657 (iii) At the end of each fiscal year:
658 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
659 Conservation and Development Fund created in Section 73-10-24;
660 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
661 Program Subaccount created in Section 73-10c-5; and
662 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
663 Program Subaccount created in Section 73-10c-5.
664 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
665 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
666 created in Section 4-18-106.
667 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
668 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
669 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
670 water rights.
671 (ii) At the end of each fiscal year:
672 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
673 Conservation and Development Fund created in Section 73-10-24;
674 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
675 Program Subaccount created in Section 73-10c-5; and
676 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
677 Program Subaccount created in Section 73-10c-5.
678 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
679 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
680 Fund created in Section 73-10-24 for use by the Division of Water Resources.
681 (ii) In addition to the uses allowed of the Water Resources Conservation and
682 Development Fund under Section 73-10-24, the Water Resources Conservation and
683 Development Fund may also be used to:
684 (A) conduct hydrologic and geotechnical investigations by the Division of Water
685 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
686 quantifying surface and ground water resources and describing the hydrologic systems of an
687 area in sufficient detail so as to enable local and state resource managers to plan for and
688 accommodate growth in water use without jeopardizing the resource;
689 (B) fund state required dam safety improvements; and
690 (C) protect the state's interest in interstate water compact allocations, including the
691 hiring of technical and legal staff.
692 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
693 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
694 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
695 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
696 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
697 created in Section 73-10c-5 for use by the Division of Drinking Water to:
698 (i) provide for the installation and repair of collection, treatment, storage, and
699 distribution facilities for any public water system, as defined in Section 19-4-102;
700 (ii) develop underground sources of water, including springs and wells; and
701 (iii) develop surface water sources.
702 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
703 2006, the difference between the following amounts shall be expended as provided in this
704 Subsection (5), if that difference is greater than $1:
705 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
706 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
707 (ii) $17,500,000.
708 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
709 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
710 credits; and
711 (B) expended by the Department of Natural Resources for watershed rehabilitation or
712 restoration.
713 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
714 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
715 created in Section 73-10-24.
716 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
717 remaining difference described in Subsection (5)(a) shall be:
718 (A) transferred each fiscal year to the Division of Water Resources as dedicated
719 credits; and
720 (B) expended by the Division of Water Resources for cloud-seeding projects
721 authorized by Title 73, Chapter 15, Modification of Weather.
722 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
723 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
724 created in Section 73-10-24.
725 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
726 remaining difference described in Subsection (5)(a) shall be deposited into the Water
727 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
728 Division of Water Resources for:
729 (i) preconstruction costs:
730 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
731 26, Bear River Development Act; and
732 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
733 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
734 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
735 Chapter 26, Bear River Development Act;
736 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
737 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
738 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, 73-10-30, and
739 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
740 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
741 Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
742 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
743 incurred for employing additional technical staff for the administration of water rights.
744 (f) At the end of each fiscal year, any unexpended dedicated credits described in
745 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
746 Fund created in Section 73-10-24.
747 (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
748 2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
749 tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
750 the Transportation Fund created by Section 72-2-102.
751 (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
752 Finance shall deposit into the Transportation Investment Fund of 2005 created in Section
753 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
754 by a 1/64% tax rate on the taxable transactions under Subsection (1).
755 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
756 Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
757 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
758 created by Section 72-2-124:
759 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
760 the revenues collected from the following taxes, which represents a portion of the
761 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
762 on vehicles and vehicle-related products:
763 (A) the tax imposed by Subsection (2)(a)(i)(A);
764 (B) the tax imposed by Subsection (2)(b)(i);
765 (C) the tax imposed by Subsection (2)(c)(i); and
766 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
767 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
768 current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
769 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
770 (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
771 (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
772 the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
773 lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)
774 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
775 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
776 (8)(a) equal to the product of:
777 (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
778 previous fiscal year; and
779 (B) the total sales and use tax revenue generated by the taxes described in Subsections
780 (8)(a)(i)(A) through (D) in the current fiscal year.
781 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
782 Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
783 described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of
784 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
785 Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
786 (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
787 from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
788 under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
789 collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
790 current fiscal year under Subsection (8)(a).
791 (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
792 Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
793 Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
794 Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
795 72-2-124.
796 (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
797 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
798 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
799 (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
800 and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July
801 1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
802 created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
803 transactions described in Subsection (1).
804 (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into
805 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
806 charged for food and food ingredients, except for tax revenue generated by a bundled
807 transaction attributable to food and food ingredients and tangible personal property other than
808 food and food ingredients described in Subsection (2)(d).
809 (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
810 (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
811 Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
812 .025% tax rate on the transactions described in Subsection (1) to be expended to address
813 chokepoints in construction management.
814 (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
815 the Transportation Fund any tax revenue generated by amounts paid or charged for food and
816 food ingredients, except for tax revenue generated by a bundled transaction attributable to food
817 and food ingredients and tangible personal property other than food and food ingredients
818 described in Subsection (2)(d).
819 (13) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
820 fiscal year during which the Division of Finance receives notice under Subsection
821 63N-2-510[
822 begun, the Division of Finance shall, for two consecutive fiscal years, annually deposit
823 $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the Hotel
824 Impact Mitigation Fund, created in Section 63N-2-512.
825 (14) Notwithstanding Subsections (4) through (13), an amount required to be expended
826 or deposited in accordance with Subsections (4) through (13) may not include an amount the
827 Division of Finance deposits in accordance with Section 59-12-103.2.
828 Section 3. Section 59-12-103.1 is amended to read:
829 59-12-103.1. Action by Supreme Court of the United States authorizing or action
830 by Congress permitting a state to require certain sellers to collect a sales or use tax --
831 Collection of tax by commission -- Commission report to Revenue and Taxation Interim
832 Committee -- Revenue and Taxation Interim Committee study -- Division of Finance
833 requirement to make certain deposits.
834 (1) Except as provided in Section 59-12-107.1, a seller shall remit a tax to the
835 commission as provided in Section 59-12-107 if:
836 (a) the Supreme Court of the United States issues a decision authorizing a state to
837 require the following sellers to collect a sales or use tax:
838 (i) a seller that does not meet one or more of the criteria described in Subsection
839 59-12-107(2)(a); or
840 (ii) a seller that is not a seller required to pay or collect and remit sales and use taxes
841 under Subsection 59-12-107(2)(b) or (d); or
842 (b) Congress permits the state to require the following sellers to collect a sales or use
843 tax:
844 (i) a seller that does not meet one or more of the criteria described in Subsection
845 59-12-107(2)(a); or
846 (ii) a seller that is not a seller required to pay or collect and remit sales and use taxes
847 under Subsection 59-12-107(2)(b) or (d).
848 (2) The commission shall:
849 [
850 [
851 [
852 [
853 [
854
855 [
856 (i) regarding the actions taken by:
857 (A) the Supreme Court of the United States; or
858 (B) Congress;
859 (ii) (A) stating the amount of state revenue collected at the time of the report, if any;
860 and
861 (B) estimating the state sales and use tax rate reduction that would offset the amount of
862 state revenue estimated to be collected for the current fiscal year and the next fiscal year; and
863 (iii) (A) at the Revenue and Taxation Interim Committee meeting immediately
864 following the day on which the actions of the Supreme Court of the United States or Congress
865 become effective; and
866 (B) any other meeting of the Revenue and Taxation Interim Committee as requested by
867 the chairs of the committee[
868 (b) collect the tax described in Subsection (1) from the seller:
869 (i) to the extent:
870 (A) authorized by the Supreme Court of the United States; or
871 (B) permitted by Congress; and
872 (ii) beginning on the first day of a calendar quarter as prescribed by the Revenue and
873 Taxation Interim Committee.
874 (3) The Revenue and Taxation Interim Committee shall after hearing the commission's
875 report under Subsection (2)[
876 (a) review the actions taken by:
877 (i) the Supreme Court of the United States; or
878 (ii) Congress;
879 (b) direct the commission regarding the day on which the commission is required to
880 collect the tax described in Subsection (1); and
881 (c) make recommendations to the Legislative Management Committee:
882 (i) regarding whether as a result of the actions of the Supreme Court of the United
883 States or Congress any provisions of this chapter should be amended or repealed; and
884 (ii) within a one-year period after the day on which the commission makes a report
885 under Subsection (2)(b).
886 (4) The Division of Finance shall deposit a portion of the revenue collected under this
887 section into the Remote Sales Restricted Account as required by Section 59-12-103.2.
888 Section 4. Section 59-12-103.3 is enacted to read:
889 59-12-103.3. Definitions -- State sales and use tax rate calculation -- Notice.
890 (1) As used in this section:
891 (a) "Above-forecast state sales and use tax revenue" means sales and use tax revenue
892 remitted to the commission that is:
893 (i) collected from the tax imposed by Subsection 59-12-103(2)(a)(i)(A); and
894 (ii) greater than:
895 (A) for the fiscal year beginning on July 1, 2016, and ending on June 30, 2017,
896 $2,301,045,700;
897 (B) for the fiscal year beginning on July 1, 2017, and ending on June 30, 2018,
898 $2,409,953,600;
899 (C) for the fiscal year beginning on July 1, 2018, and ending on June 30, 2019,
900 $2,524,016,100; and
901 (D) for the fiscal year beginning on July 1, 2019, and ending on June 30, 2020,
902 $2,643,477,100.
903 (b) "State sales and use tax rate" means the tax rate calculated under Subsection (2).
904 (2) (a) Except as provided in Subsection (2)(b)(i), the state sales and use tax rate is
905 4.70%.
906 (b) (i) Subject to Subsection (2)(b)(ii), and except as provided in Subsection (2)(b)(iii)
907 or (iv):
908 (A) the state sales and use tax rate decreases by 0.1%, if the commission collects at
909 least $50,000,000, but less than $100,000,000, in above-forecast state sales and use tax revenue
910 for a fiscal year;
911 (B) the state sales and use tax rate decreases by 0.2%, if the commission collects at
912 least $100,000,000, but less than $150,000,000, in above-forecast state sales and use tax
913 revenue; and
914 (C) the state sales and use tax rate decreases by 0.3%, if the commission collects at
915 least $150,000,000 in above-forecast state sales and use tax revenue.
916 (ii) Any decrease to the state sales and use tax rate under Subsection (2)(b)(i) shall take
917 effect on July 1 of the year immediately following the fiscal year in which the applicable
918 threshold described in Subsection (2)(b)(i) is reached or exceeded.
919 (iii) The state sales and use tax rate may not decrease below 4.40%.
920 (iv) The state sales and use tax rate may not decrease, under this section, after July 1,
921 2021.
922 (3) The Office of the Legislative Fiscal Analyst shall annually, on or before January 1:
923 (a) determine the amount of above-forecast state sales and use tax revenue that the
924 commission collected for the previous fiscal year;
925 (b) calculate whether the commission collected enough above-forecast state sales and
926 use tax revenue to trigger a state sales and use tax rate decrease under Subsection (2)(b); and
927 (c) if the Office of the Legislative Fiscal Analyst determines that the commission
928 collected enough above-forecast state sales and use tax revenue for the previous fiscal year to
929 trigger a state sales and use tax rate decrease under Subsection (2)(b), report the above-forecast
930 state sales and use tax revenue to the Executive Appropriations Committee.
931 (4) Within 30 days after receiving the report described in Subsection (3), the Executive
932 Appropriations Committee shall notify the commission of:
933 (a) the amount of the above-forecast state sales and use tax revenue that the
934 commission collected for the previous fiscal year; and
935 (b) the decrease in rate, described in Subsection (2)(b)(i), that is applicable to the
936 amount described in Subsection (4)(a).
937 (5) If the commission collects enough above-forecast state sales and use tax revenue to
938 trigger a state sales and use tax rate decrease under Subsection (2)(b)(i), the commission shall
939 publish, post, or otherwise make public the new state sales and use tax rate that will be
940 effective July 1.
941 Section 5. Section 59-12-107 is amended to read:
942 59-12-107. Definitions -- Collection, remittance, and payment of tax by sellers or
943 other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
944 liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
945 Penalties and interest.
946 (1) As used in this section:
947 [
948
949 [
950 [
951 [
952
953 [
954
955 [
956 [
957
958
959 (a) (i) "Advertising" means:
960 (A) announcing by graphic, pictorial, verbal, written, or other similar means the
961 availability of a product for sale; or
962 (B) employing purchased space or time in print or electronic media if that purchased
963 space or time is used to communicate an announcement of a product for sale.
964 (ii) "Advertising" includes online advertising.
965 (b) "Affiliate" means:
966 (i) a person that is a member of the same controlled group of corporations as the seller;
967 or
968 (ii) another entity that, regardless of how that entity is organized, has the same
969 ownership relationship to a seller as another corporation or group of corporations.
970 (c) (i) "Arrangement" means an agreement between a noncollecting seller and a
971 referring seller, under which the referring seller, for a commission or other consideration,
972 directly or indirectly makes a referral to the noncollecting seller of a potential purchaser of
973 tangible personal property, a product transferred electronically, or a service.
974 (ii) "Arrangement" does not include any agreement under which a noncollecting seller
975 purchases advertising from a person in the state, unless the person in the state also directs a
976 solicitation toward one or more potential purchasers in the state.
977 (d) "Controlled group of corporations" means the same as that term is defined in
978 Section 1563(a), Internal Revenue Code.
979 (e) "Noncollecting seller" means a remote seller that:
980 (i) does not voluntarily collect and remit sales and use tax under this chapter; and
981 (ii) during the 12-month period immediately preceding the current month, makes sales
982 totaling $125,000 or more of tangible personal property, products transferred electronically, or
983 services:
984 (A) for storage, use, or consumption in the state; and
985 (B) as a result of an arrangement with one or more referring sellers.
986 (f) (i) "Online advertising" means advertising delivered through the Internet.
987 (ii) "Online advertising" includes:
988 (A) an email communication generated as a result of generic algorithmic functions if
989 the email communication does not target a specific person;
990 (B) an advertisement tied to an Internet search engine;
991 (C) a banner announcement;
992 (D) a cost-per-action advertisement; or
993 (E) an online advertising service similar to the online advertising described in
994 Subsections (1)(f)(ii)(A) through (D), as the commission may define by rule made in
995 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
996 (iii) "Online advertising" does not include an Internet-based link to a seller's website.
997 (g) (i) "Referral" means the act of sending a potential purchaser to a noncollecting
998 seller by:
999 (A) an Internet-based link;
1000 (B) an Internet website;
1001 (C) telemarketing;
1002 (D) in-person marketing; or
1003 (E) other means similar to the means described in Subsections (1)(g)(i)(A) through (D),
1004 as the commission may define by rule made in accordance with Title 63G, Chapter 3, Utah
1005 Administrative Rulemaking Act.
1006 (ii) "Referral" does not include online advertising.
1007 (h) "Referring seller" means a person:
1008 (i) that makes a sale of tangible personal property, a product transferred electronically,
1009 or a service;
1010 (ii) that meets one or more of the criteria described in Subsection (2)(a); and
1011 (iii) with which a noncollecting seller enters an arrangement.
1012 (i) "Remote seller" means a seller that is not required to pay or collect and remit sales
1013 and use taxes under Subsection (2)(a).
1014 (j) "Solicitation" means a communication directly or indirectly to a specific person
1015 within the state in a manner that is intended to and calculated to incite the person to purchase
1016 tangible personal property, a service, or a product transferred electronically from a specific
1017 seller.
1018 (2) (a) Except as provided in Subsection (2)[
1019 59-12-123, and subject to [
1020 collect and remit the sales and use taxes imposed by this chapter if within this state the seller:
1021 (i) [
1022 (A) an office;
1023 (B) a distribution house;
1024 (C) a sales house;
1025 (D) a warehouse[
1026 [
1027 [
1028 (ii) maintains a stock of goods;
1029 (iii) regularly solicits orders, regardless of whether [
1030 the state, unless the seller's only activity in the state is:
1031 (A) advertising; or
1032 (B) solicitation by:
1033 (I) direct mail;
1034 (II) electronic mail;
1035 (III) except as provided in Subsection (2)(d), the Internet;
1036 (IV) telecommunications service; or
1037 (V) a means similar to Subsection (2)(a)(iii)(A) or (B);
1038 (iv) regularly engages in the delivery of property in the state other than by:
1039 (A) common carrier; or
1040 (B) United States mail; or
1041 (v) regularly engages in an activity directly related to the leasing or servicing of
1042 property located within the state.
1043 (b) [
1044 engaged, in the state, in the business of selling tangible personal property, [
1045 product transferred electronically, or a service for storage, use [
1046 and shall pay or collect and remit the sales and use taxes imposed by this chapter if:
1047 [
1048
1049 (i) a person who meets one or more of the criteria described in Subsection (2)(a) is an
1050 affiliate of the remote seller; or
1051 (ii) any person, other than a person acting in the capacity of a common carrier, that
1052 meets one or more of the criteria described in Subsection (2)(a):
1053 [
1054 [
1055 remote seller; [
1056 (B) [
1057
1058 promote, deliver, or facilitate sales by the remote seller to a purchaser[
1059 (C) uses trademarks, service marks, or trade names in the state that are the same or
1060 substantially similar to those used by the remote seller;
1061 (D) delivers, installs, assembles, or performs maintenance service for the remote
1062 seller's purchaser within the state;
1063 (E) facilitates the remote seller's delivery of tangible personal property to a purchaser
1064 in the state by allowing the purchaser to pick up tangible personal property sold by the remote
1065 seller at an in-state office, distribution house, sales house, warehouse or other storage place, or
1066 similar place of business that is maintained by the person that meets one or more of the criteria
1067 described in Subsection (2)(a); or
1068 (F) conducts any other activity in the state that is significantly associated with the
1069 remote seller's ability to establish and maintain a market in the state for the remote seller's sales
1070 of tangible personal property, a product transferred electronically, or a service.
1071 (c) A remote seller may rebut the presumption described in Subsection (2)(b) by
1072 proving that the in-state activities of the person that meets one or more of the criteria described
1073 in Subsection (2)(a) are not significantly associated with the remote seller's ability to establish
1074 and maintain a market in the state for the seller's sales of tangible personal property, a service,
1075 or a product transferred electronically.
1076 (d) (i) (A) Subject to the other provisions of this Subsection (2)(d), there is a rebuttable
1077 presumption that a noncollecting seller is engaged, in the state, in the business of selling
1078 tangible personal property, a product transferred electronically, or a service, for storage, use, or
1079 consumption.
1080 (B) When the presumption arises, the noncollecting seller shall pay or collect and remit
1081 sales and use tax on any sale the noncollecting seller makes, through an arrangement, to a
1082 purchaser in the state.
1083 (ii) (A) The presumption described in Subsection (2)(d)(i) arises if the noncollecting
1084 seller makes sales in the state using a referring seller after January 1, 2017, regardless of the
1085 date when the noncollecting seller and the referring seller enter the arrangement and regardless
1086 of whether the 12-month period immediately preceding the current month includes any period
1087 of time that occurred before January 1, 2017.
1088 (B) If the presumption described in Subsection (2)(d)(i) arises, a noncollecting seller's
1089 obligation to collect and remit sales and use taxes begins on April 1, 2017.
1090 (iii) A noncollecting seller may rebut the presumption described in Subsection (2)(d)(i)
1091 by proving that a referring seller has not engaged in an activity within the state that is
1092 significantly associated with the noncollecting seller's ability, during the preceding 12 months,
1093 to establish and maintain a market within the state for the sale of tangible personal property, a
1094 product transferred electronically, or a service.
1095 (iv) (A) Proof to rebut the presumption described in Subsection (2)(d)(i) includes a
1096 written sworn statement from each referring seller that the referring seller did not engage in any
1097 solicitation of a potential purchaser in the state on behalf of the noncollecting seller for the sale
1098 of tangible personal property, a product transferred electronically, or a service.
1099 (B) A referring seller must make the written sworn statement described in Subsection
1100 (2)(d)(iv)(A) in good faith.
1101 (e) Unless the remote seller owns or leases the computer, a remote seller's use of a
1102 computer located in this state to create, maintain, or take an order through an Internet web
1103 page, an Internet website, an Internet post, an Internet listing, or an online marketplace may not
1104 be used as a factor in determining whether a remote seller is required to pay or collect and
1105 remit sales and use taxes under this Subsection (2).
1106 [
1107
1108
1109
1110 (d) may voluntarily:
1111 (A) collect a tax on a transaction described in Subsection 59-12-103(1); and
1112 (B) remit the tax to the commission as provided in this part[
1113 (ii) [
1114 transaction described in Subsection 59-12-103(1) if Section 59-12-103.1 requires the seller to
1115 collect the tax.
1116 [
1117 registered under the agreement may not be used as a factor in determining whether that seller is
1118 required by Subsection (2) to:
1119 (i) pay a tax, fee, or charge under:
1120 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1121 (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
1122 (C) Section 19-6-714;
1123 (D) Section 19-6-805;
1124 (E) Section 69-2-5;
1125 (F) Section 69-2-5.5;
1126 (G) Section 69-2-5.6; or
1127 (H) this title; or
1128 (ii) collect and remit a tax, fee, or charge under:
1129 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1130 (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
1131 (C) Section 19-6-714;
1132 (D) Section 19-6-805;
1133 (E) Section 69-2-5;
1134 (F) Section 69-2-5.5;
1135 (G) Section 69-2-5.6; or
1136 (H) this title.
1137 [
1138
1139 [
1140 [
1141 [
1142
1143 [
1144
1145 [
1146
1147 [
1148 with which the retailer has contracted for printing and that consists of the final printed product,
1149 property that becomes a part of the final printed product, or copy from which the printed
1150 product is produced, shall not result in the retailer being considered to have or maintain an
1151 office, distribution house, sales house, warehouse, service enterprise, or other place of
1152 business, or to maintain a stock of goods, within this state.
1153 (i) A person shall pay a use tax imposed by this chapter on a transaction described in
1154 Subsection 59-12-103(1) if:
1155 (i) the seller did not collect a tax imposed under this chapter on the transaction; and
1156 (ii) the person:
1157 (A) stores the tangible personal property or product transferred electronically in the
1158 state;
1159 (B) uses the tangible personal property or product transferred electronically in the state;
1160 or
1161 (C) consumes the tangible personal property or product transferred electronically in the
1162 state.
1163 (3) (a) Except as provided in Section 59-12-107.1, a seller shall collect a tax due under
1164 this chapter [
1165 (b) A seller may not collect as a tax an amount, without regard to fractional parts of
1166 one cent, in excess of the tax computed at the rates prescribed by this chapter.
1167 (c) (i) Each seller shall:
1168 (A) give the purchaser a receipt for the tax collected; or
1169 (B) bill the tax as a separate item and declare the name of this state and the seller's
1170 sales and use tax license number on the invoice for the sale.
1171 (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
1172 and relieves the purchaser of the liability for reporting the tax to the commission as a
1173 consumer.
1174 (d) A seller is not required to maintain a separate account for the tax collected[
1175 considered to be a person charged with receipt, safekeeping, and transfer of public money.
1176 (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
1177 benefit of the state and for payment to the commission in the manner and at the time provided
1178 for in this chapter.
1179 (f) If any seller, during any reporting period, collects as a tax an amount in excess of
1180 the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
1181 shall remit to the commission the full amount of the tax imposed under this chapter, plus any
1182 excess.
1183 (g) If the accounting methods regularly employed by the seller in the transaction of the
1184 seller's business are such that reports of sales made during a calendar month or quarterly period
1185 will impose unnecessary hardships, the commission may accept reports at intervals that, in the
1186 commission's opinion, will[
1187 taxpayer or seller and will not jeopardize collection of the tax.
1188 (h) (i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
1189 and until such time as the commission accepts specie legal tender for the payment of a tax
1190 under this chapter, if the commission requires a seller to remit a tax under this chapter in legal
1191 tender other than specie legal tender, the seller shall state on the seller's books and records and
1192 on an invoice, bill of sale, or similar document provided to the purchaser:
1193 (A) the purchase price in specie legal tender and in the legal tender the seller is
1194 required to remit to the commission;
1195 (B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie
1196 legal tender and in the legal tender the seller is required to remit to the commission;
1197 (C) the tax rate under this chapter applicable to the purchase; and
1198 (D) the date of the purchase.
1199 (ii) (A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of
1200 tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the
1201 specie legal tender the purchaser paid.
1202 (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1203 commission may make rules for determining the amount of tax due under Subsection (3)(h)(i)
1204 if the London fixing price is not available for a particular day.
1205 (4) (a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
1206 [
1207 before the last day of the month next succeeding each quarterly calendar [
1208 (b) (i) Each seller shall, on or before the last day of the month next succeeding each
1209 quarterly calendar [
1210 quarterly period.
1211 (ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
1212 tax required under this chapter to be collected or paid for the period covered by the return.
1213 (c) Except as provided in Subsection (5)(c), a return shall contain information and be in
1214 a form the commission prescribes by rule.
1215 (d) (i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
1216 based on the total nonexempt sales made during the period for which the return is filed,
1217 including both cash and charge sales.
1218 (ii) For a sale that includes the delivery or installation of tangible personal property at a
1219 location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery
1220 or installation is separately stated on an invoice or receipt, a seller may compute the tax due [
1221
1222 sale during each period for which the seller receives payment for the sale.
1223 (e) (i) The use tax as computed in the return shall be based on the total amount of
1224 purchases for storage, use, or other consumption in this state made during the period for which
1225 the return is filed, including both cash and charge purchases.
1226 (ii) (A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser
1227 who is required to remit taxes under this chapter[
1228 accordance with Section 59-12-108, and who converts tangible personal property into real
1229 property.
1230 (B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the
1231 taxes due under this chapter on tangible personal property for which the qualifying purchaser
1232 claims an exemption as allowed under Subsection 59-12-104(23) or (25) based on the period in
1233 which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C),
1234 for the conversion of the tangible personal property into real property.
1235 (C) A qualifying purchaser remitting taxes due under this chapter in accordance with
1236 Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the
1237 qualifying purchaser's purchase of the tangible personal property that was converted into real
1238 property multiplied by a fraction, the numerator of which is the payment received in the period
1239 for the qualifying purchaser's sale of the tangible personal property that was converted into real
1240 property and the denominator of which is the entire sales price for the qualifying purchaser's
1241 sale of the tangible personal property that was converted into real property.
1242 (D) A qualifying purchaser may remit taxes due under this chapter in accordance with
1243 this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in
1244 the qualifying purchaser's regular course of business identify by reasonable and verifiable
1245 standards that the tangible personal property was converted into real property.
1246 (f) (i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
1247 Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
1248 returns and paying the taxes.
1249 (ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
1250 (g) The commission may require returns and payment of the tax to be made for other
1251 than quarterly periods if the commission considers it necessary in order to ensure the payment
1252 of the tax imposed by this chapter.
1253 (h) (i) The commission may require a seller that files a simplified electronic return with
1254 the commission to file an additional electronic report with the commission.
1255 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1256 commission may make rules providing:
1257 (A) the information required to be included in the additional electronic report described
1258 in Subsection (4)(h)(i); and
1259 (B) one or more due dates for filing the additional electronic report described in
1260 Subsection (4)(h)(i).
1261 (5) (a) As used in this Subsection (5) and Subsection (6)(b), [
1262 "registered remitter" means a seller that is:
1263 (i) registered under the agreement;
1264 (ii) described in Subsection (2)(c); and
1265 (iii) not a:
1266 (A) model 1 seller;
1267 (B) model 2 seller; or
1268 (C) model 3 seller.
1269 (b) (i) Except as provided in Subsection (5)(b)(ii), a tax a [
1270 remitter collects in accordance with Subsection (2)(c) is due and payable:
1271 (A) to the commission;
1272 (B) annually; and
1273 (C) on or before the last day of the month immediately following the last day of each
1274 calendar year.
1275 (ii) The commission may require that a tax a [
1276 in accordance with Subsection (2)(c) be due and payable:
1277 (A) to the commission; and
1278 (B) on the last day of the month immediately following any month in which the [
1279 registered remitter accumulates a total of at least $1,000 in agreement sales and use tax.
1280 (c) (i) If a remote seller remits a tax to the commission in accordance with Subsection
1281 (5)(b), the [
1282 (A) with the commission;
1283 (B) with respect to the tax;
1284 (C) containing information prescribed by the commission; and
1285 (D) on a form prescribed by the commission.
1286 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1287 commission shall make rules prescribing:
1288 (A) the information required to be contained in a return described in Subsection
1289 (5)(c)(i); and
1290 (B) the form described in Subsection (5)(c)(i)(D).
1291 (d) A tax a [
1292 Subsection (5) shall be calculated on the basis of the total amount of taxable transactions under
1293 Subsection 59-12-103(1) the [
1294 transactions and charge transactions.
1295 [
1296 [
1297 (6) (a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
1298 electronic return collects in accordance with this chapter is due and payable:
1299 (i) monthly on or before the last day of the month immediately following the month for
1300 which the seller collects a tax under this chapter; and
1301 (ii) for the month for which the seller collects a tax under this chapter.
1302 (b) A tax a remote seller that files a simplified electronic return collects in accordance
1303 with this chapter is due and payable as provided in Subsection (5).
1304 (7) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
1305 purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
1306 titling or registration under the laws of this state.
1307 (b) The commission shall collect the tax described in Subsection (7)(a) when the
1308 vehicle is titled or registered.
1309 (8) If any sale of tangible personal property or any other taxable transaction under
1310 Subsection 59-12-103(1), is made by a wholesaler to a retailer[
1311 (a) the wholesaler is not responsible for the collection or payment of the tax imposed
1312 on the sale; and
1313 (b) the retailer is responsible for the collection or payment of the tax imposed on the
1314 sale if:
1315 [
1316 electronically, or service is purchased by the retailer for resale; and
1317 [
1318 not subsequently resold.
1319 (9) If any sale of property or service subject to the tax is made to a person prepaying
1320 sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
1321 contractor or subcontractor of that person[
1322 (a) the person to whom such payment or consideration is payable is not responsible for
1323 the collection or payment of the sales or use tax; and
1324 (b) the person prepaying the sales or use tax is responsible for the collection or
1325 payment of the sales or use tax if the person prepaying the sales or use tax represents that the
1326 amount prepaid as sales or use tax has not been fully credited against sales or use tax due and
1327 payable under the rules promulgated by the commission.
1328 (10) (a) For purposes of this Subsection (10):
1329 (i) Except as provided in Subsection (10)(a)(ii), "bad debt" [
1330 that term is defined in Section 166, Internal Revenue Code.
1331 (ii) [
1332 (A) an amount included in the purchase price of tangible personal property, a product
1333 transferred electronically, or a service that is:
1334 (I) not a transaction described in Subsection 59-12-103(1); or
1335 (II) exempt under Section 59-12-104;
1336 (B) a financing charge;
1337 (C) interest;
1338 (D) a tax imposed under this chapter on the purchase price of tangible personal
1339 property, a product transferred electronically, or a service;
1340 (E) an uncollectible amount on tangible personal property or a product transferred
1341 electronically that:
1342 (I) is subject to a tax under this chapter; and
1343 (II) remains in the possession of a seller until the full purchase price is paid;
1344 (F) an expense incurred in attempting to collect any debt; or
1345 (G) an amount that a seller does not collect on repossessed property.
1346 (b) (i) To the extent an amount remitted in accordance with Subsection (4)(d) later
1347 becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax
1348 under this chapter is calculated on a return.
1349 (ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the
1350 total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on
1351 the qualifying purchaser's purchase of tangible personal property converted into real property to
1352 the extent that:
1353 (A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal
1354 property converted into real property;
1355 (B) the qualifying purchaser's sale of that tangible personal property converted into real
1356 property later becomes bad debt; and
1357 (C) the books and records that the qualifying purchaser keeps in the qualifying
1358 purchaser's regular course of business identify by reasonable and verifiable standards that the
1359 tangible personal property was converted into real property.
1360 (c) A seller may file a refund claim with the commission if:
1361 (i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
1362 the amount of the seller's sales that are subject to a tax under this chapter for that same time
1363 period; and
1364 (ii) as provided in Section 59-1-1410.
1365 (d) A bad debt deduction under this section may not include interest.
1366 (e) A bad debt may be deducted under this Subsection (10) on a return for the time
1367 period during which the bad debt:
1368 (i) is written off as uncollectible in the seller's books and records; and
1369 (ii) would be eligible for a bad debt deduction:
1370 (A) for federal income tax purposes; and
1371 (B) if the seller were required to file a federal income tax return.
1372 (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
1373 claims a refund under this Subsection (10), the seller shall report and remit a tax under this
1374 chapter:
1375 (i) on the portion of the bad debt the seller recovers; and
1376 (ii) on a return filed for the time period for which the portion of the bad debt is
1377 recovered.
1378 (g) For purposes of reporting a recovery of a portion of bad debt under Subsection
1379 (10)(f), a seller shall apply amounts received on the bad debt in the following order:
1380 (i) in a proportional amount:
1381 (A) to the purchase price of the tangible personal property, product transferred
1382 electronically, or service; and
1383 (B) to the tax due under this chapter on the tangible personal property, product
1384 transferred electronically, or service; and
1385 (ii) to:
1386 (A) interest charges;
1387 (B) service charges; and
1388 (C) other charges.
1389 (h) A seller's certified service provider may make a deduction or claim a refund for bad
1390 debt on behalf of the seller:
1391 (i) in accordance with this Subsection (10); and
1392 (ii) if the certified service provider credits or refunds the entire amount of the bad debt
1393 deduction or refund to the seller.
1394 (i) A seller may allocate bad debt among the states that are members of the agreement
1395 if the seller's books and records support that allocation.
1396 (11) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
1397 amount of tax required by this chapter.
1398 (b) A violation of this section is punishable as provided in Section 59-1-401.
1399 (c) Each person who fails to pay any tax to the state or any amount of tax required to be
1400 paid to the state, except amounts determined to be due by the commission under Chapter 1,
1401 Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111, within the time
1402 required by this chapter, or who fails to file any return as required by this chapter, shall pay, in
1403 addition to the tax, penalties and interest as provided in Sections 59-1-401 and 59-1-402.
1404 (d) For purposes of prosecution under this section, each quarterly tax period in which a
1405 seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
1406 tax required to be remitted, constitutes a separate offense.
1407 (12) The provisions of this section are severable. If any provision of this section or the
1408 application of any provision of this section to any person or circumstance is held invalid by a
1409 final, unappealable decision of a court of competent jurisdiction, the remainder of this section
1410 shall be given effect without the invalid provision or application.
1411 Section 6. Section 59-12-108 is amended to read:
1412 59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
1413 Certain amounts allocated to local taxing jurisdictions.
1414 (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
1415 chapter of $50,000 or more for the previous calendar year shall:
1416 (i) file a return with the commission:
1417 (A) monthly on or before the last day of the month immediately following the month
1418 for which the seller collects a tax under this chapter; and
1419 (B) for the month for which the seller collects a tax under this chapter; and
1420 (ii) except as provided in Subsection (1)(b), remit, with the return required by
1421 Subsection (1)(a)(i), the amount [
1422
1423 (A) if that seller's tax liability under this chapter for the previous calendar year is less
1424 than $96,000, by any method permitted by the commission; or
1425 (B) if that seller's tax liability under this chapter for the previous calendar year is
1426 $96,000 or more, by electronic funds transfer.
1427 (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
1428 the amount the seller is required to remit to the commission for each tax, fee, or charge
1429 described in Subsection (1)(c) if that seller:
1430 (i) is required by Section 59-12-107 to file the return electronically; or
1431 (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
1432 (B) files a simplified electronic return.
1433 (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
1434 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1435 (ii) a fee under Section 19-6-714;
1436 (iii) a fee under Section 19-6-805;
1437 (iv) a charge under Section 69-2-5;
1438 (v) a charge under Section 69-2-5.5;
1439 (vi) a charge under Section 69-2-5.6; [
1440 (vii) a tax under this chapter.
1441 (d) Notwithstanding [
1442 Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules
1443 providing for a method for making same-day payments other than by electronic funds transfer
1444 if making payments by electronic funds transfer fails.
1445 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1446 commission shall establish by rule procedures and requirements for determining the amount a
1447 seller is required to remit to the commission under this Subsection (1).
1448 (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
1449 seller described in Subsection (4) may retain each month the amount allowed by this
1450 Subsection (2).
1451 (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
1452 each month 1.31% of any amounts the seller is required to remit to the commission:
1453 (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
1454 and a local tax imposed in accordance with the following, for the month for which the seller is
1455 filing a return in accordance with Subsection (1):
1456 (A) Subsection 59-12-103(2)(a);
1457 (B) Subsection 59-12-103(2)(b); and
1458 (C) Subsection 59-12-103(2)(d); and
1459 (ii) for an agreement sales and use tax.
1460 (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
1461 retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
1462 in Subsection 59-12-103(1) that is subject to the state tax and the local tax imposed in
1463 accordance with Subsection 59-12-103(2)(c).
1464 (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
1465 equal to the sum of:
1466 (A) 1.31% of any amounts the seller is required to remit to the commission for:
1467 (I) the state tax and the local tax imposed in accordance with Subsection
1468 59-12-103(2)(c);
1469 (II) the month for which the seller is filing a return in accordance with Subsection (1);
1470 and
1471 (III) an agreement sales and use tax; and
1472 (B) 1.31% of the difference between:
1473 (I) the amounts the seller would have been required to remit to the commission:
1474 (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
1475 to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
1476 (Bb) for the month for which the seller is filing a return in accordance with Subsection
1477 (1); and
1478 (Cc) for an agreement sales and use tax; and
1479 (II) the amounts the seller is required to remit to the commission for:
1480 (Aa) the state tax and the local tax imposed in accordance with Subsection
1481 59-12-103(2)(c);
1482 (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
1483 and
1484 (Cc) an agreement sales and use tax.
1485 (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
1486 each month 1% of any amounts the seller is required to remit to the commission:
1487 (i) for the month for which the seller is filing a return in accordance with Subsection
1488 (1); and
1489 (ii) under:
1490 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1491 (B) Subsection 59-12-603(1)(a)(i)(A); or
1492 (C) Subsection 59-12-603(1)(a)(i)(B).
1493 (3) A state government entity that is required to remit taxes monthly in accordance
1494 with Subsection (1) may not retain any amount under Subsection (2).
1495 (4) A seller that has a tax liability under this chapter for the previous calendar year of
1496 less than $50,000 may:
1497 (a) voluntarily meet the requirements of Subsection (1); and
1498 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
1499 amounts allowed by Subsection (2).
1500 (5) (a) Subject to Subsections (5)(b) through (d), a seller that voluntarily collects and
1501 remits a tax in accordance with Subsection 59-12-107(2)[
1502 to 18% of any amounts the seller would otherwise remit to the commission:
1503 (i) if the seller obtains a license under Section 59-12-106 for the first time on or after
1504 January 1, 2014; and
1505 (ii) for:
1506 (A) an agreement sales and use tax; and
1507 (B) the time period for which the seller files a return in accordance with this section.
1508 (b) If a seller retains an amount under this Subsection (5), the seller may not retain any
1509 other amount under this section.
1510 (c) If a seller retains an amount under this Subsection (5), the commission may require
1511 the seller to file a return by:
1512 (i) electronic means; or
1513 (ii) a means other than electronic means.
1514 (d) A seller may not retain an amount under this Subsection (5) if the seller is required
1515 to collect or remit a tax under this section in accordance with Section 59-12-103.1.
1516 (6) Penalties for late payment shall be as provided in Section 59-1-401.
1517 (7) (a) Except as provided in Subsection (7)(c), for any amounts required to be remitted
1518 to the commission under this part, the commission shall each month calculate an amount equal
1519 to the difference between:
1520 (i) the total amount retained for that month by all sellers had the percentages listed
1521 under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
1522 (ii) the total amount retained for that month by all sellers at the percentages listed
1523 under Subsections (2)(b) and (2)(c)(ii).
1524 (b) The commission shall each month allocate the amount calculated under Subsection
1525 (7)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
1526 tax that the commission distributes to each county, city, and town for that month compared to
1527 the total agreement sales and use tax that the commission distributes for that month to all
1528 counties, cities, and towns.
1529 (c) The amount the commission calculates under Subsection (7)(a) may not include an
1530 amount collected from a tax that:
1531 (i) the state imposes within a county, city, or town, including the unincorporated area
1532 of a county; and
1533 (ii) is not imposed within the entire state.
1534 Section 7. Section 59-12-211 is amended to read:
1535 59-12-211. Definitions -- Location of certain transactions -- Reports to
1536 commission -- Direct payment provision for a seller making certain purchases --
1537 Exceptions.
1538 (1) As used in this section:
1539 (a) (i) "Receipt" and "receive" mean:
1540 (A) taking possession of tangible personal property;
1541 (B) making first use of a service; or
1542 (C) for a product transferred electronically, the earlier of:
1543 (I) taking possession of the product transferred electronically; or
1544 (II) making first use of the product transferred electronically.
1545 (ii) "Receipt" and "receive" do not include possession by a shipping company on behalf
1546 of a purchaser.
1547 (b) "Transportation equipment" means:
1548 (i) a locomotive or rail car that is used to carry a person or property in interstate
1549 commerce;
1550 (ii) a truck or truck-tractor:
1551 (A) with a gross vehicle weight rating of 10,001 pounds or [
1552 (B) registered under Section 41-1a-301; and
1553 (C) operated under the authority of a carrier authorized and certificated:
1554 (I) by the United States Department of Transportation or another federal authority; and
1555 (II) to engage in carrying a person or property in interstate commerce;
1556 (iii) a trailer, semitrailer, or passenger bus that is:
1557 (A) registered under Section 41-1a-301; and
1558 (B) operated under the authority of a carrier authorized and certificated:
1559 (I) by the United States Department of Transportation or another federal authority; and
1560 (II) to engage in carrying a person or property in interstate commerce;
1561 (iv) an aircraft that is operated by an air carrier authorized and certificated:
1562 (A) by the United States Department of Transportation or another federal or foreign
1563 authority; and
1564 (B) to engage in carrying a person or property in interstate commerce; or
1565 (v) a container designed for use on, or a component part attached or secured on, an
1566 item of equipment listed in Subsections (1)(b)(i) through (iv).
1567 (2) Except as provided in Subsections (8) and (14), if tangible personal property, a
1568 product transferred electronically, or a service that is subject to taxation under this chapter is
1569 received by a purchaser at a business location of a seller, the location of the transaction is the
1570 business location of the seller.
1571 (3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
1572 and (14), if tangible personal property, a product transferred electronically, or a service that is
1573 subject to taxation under this chapter is not received by a purchaser at a business location of a
1574 seller, the location of the transaction is the location where the purchaser takes receipt of the
1575 tangible personal property or service.
1576 (4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
1577 and (14), if Subsection (2) or (3) does not apply, the location of the transaction is the location
1578 indicated by an address for or other information on the purchaser if:
1579 (a) the address or other information is available from the seller's business records; and
1580 (b) use of the address or other information from the seller's records does not constitute
1581 bad faith.
1582 (5) (a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
1583 (11), and (14), if Subsection (2), (3), or (4) does not apply, the location of the transaction is the
1584 location indicated by an address for the purchaser if:
1585 (i) the address is obtained during the consummation of the transaction; and
1586 (ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.
1587 (b) An address used under Subsection (5)(a) includes the address of a purchaser's
1588 payment instrument if no other address is available.
1589 (6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
1590 and (14), if Subsection (2), (3), (4), or (5) does not apply or if a seller does not have sufficient
1591 information to apply Subsection (2), (3), (4), or (5), the location of the transaction is the
1592 location:
1593 (a) indicated by the address from which:
1594 (i) except as provided in Subsection (6)(a)(ii), for tangible personal property that is
1595 subject to taxation under this chapter, the tangible personal property is shipped;
1596 (ii) for computer software delivered electronically or for a product transferred
1597 electronically that is subject to taxation under this chapter, the computer software or product
1598 transferred electronically is first available for transmission by the seller; or
1599 (iii) for a service that is subject to taxation under this chapter, the service is provided;
1600 or
1601 (b) as determined by the seller with respect to a prepaid wireless calling service:
1602 (i) provided in Subsection (6)(a)(iii); or
1603 (ii) associated with the mobile telephone number.
1604 (7) (a) For purposes of this Subsection (7), "shared ZIP Code" means a nine-digit ZIP
1605 Code that is located within two or more local taxing jurisdictions.
1606 (b) If the location of a transaction determined under Subsections (3) through (6) is in a
1607 shared ZIP Code, the location of the transaction is:
1608 (i) if there is only one local taxing jurisdiction that imposes the lowest agreement
1609 combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the lowest
1610 agreement combined tax rate; or
1611 (ii) if two or more local taxing jurisdictions impose the lowest agreement combined tax
1612 rate for the shared ZIP Code, the local taxing jurisdiction that:
1613 (A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and
1614 (B) has located within the local taxing jurisdiction the largest number of street
1615 addresses within the shared ZIP Code.
1616 (c) Notwithstanding any provision under this chapter authorizing or requiring the
1617 imposition of a sales and use tax, for purposes of Subsection (7)(b), a seller shall collect a sales
1618 and use tax imposed under this chapter at the lowest agreement combined tax rate imposed
1619 within the local taxing jurisdiction in which the transaction is located under Subsection (7)(b).
1620 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1621 commission may make rules:
1622 (i) providing for the circumstances under which a seller has exercised due diligence in
1623 determining the nine-digit ZIP Code for an address; or
1624 (ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction
1625 within which a transaction is located if a seller is unable to determine the local taxing
1626 jurisdiction within which the transaction is located under Subsection (7)(b).
1627 (8) The location of a transaction made with a direct payment permit described in
1628 Section 59-12-107.1 is the location where receipt of the tangible personal property, product
1629 transferred electronically, or service by the purchaser occurs.
1630 (9) The location of a purchase of direct mail is the location determined in accordance
1631 with Section 59-12-123.
1632 (10) (a) Except as provided in Subsection (10)(b), the location of a transaction
1633 determined under Subsections (3) through (6), (8), or (9), is the local taxing jurisdiction within
1634 which:
1635 (i) the nine-digit ZIP Code assigned to the location determined under Subsections (3)
1636 through (6), (8), or (9) is located; or
1637 (ii) the five-digit ZIP Code assigned to the location determined under Subsections (3)
1638 through (6), (8), or (9) is located if:
1639 (A) a nine-digit ZIP Code is not available for the location determined under
1640 Subsections (3) through (6), (8), or (9); or
1641 (B) after exercising due diligence, a seller or certified service provider is unable to
1642 determine a nine-digit ZIP Code for the location determined under Subsections (3) through (6),
1643 (8), or (9).
1644 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1645 commission may make rules for determining the local taxing jurisdiction within which a
1646 transaction is located if a seller or certified service provider is unable to determine the local
1647 taxing jurisdiction within which the transaction is located under Subsection (10)(a).
1648 (11) (a) As used in this Subsection (11), "florist delivery transaction" means a
1649 transaction commenced by a florist that transmits an order:
1650 (i) by:
1651 (A) telegraph;
1652 (B) telephone; or
1653 (C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
1654 (ii) for delivery to another place:
1655 (A) in this state; or
1656 (B) outside this state.
1657 [
1658
1659
1660 [
1661 Act, the commission may by rule:
1662 (i) define:
1663 (A) "business location"; and
1664 (B) "florist";
1665 (ii) define what constitutes a means of communication similar to Subsection
1666 (11)(a)(i)(A) or (B); and
1667 (iii) provide procedures for determining when a transaction is commenced.
1668 (12) (a) Notwithstanding any other provision of this section and except as provided in
1669 Subsection (12)(b), if a purchaser uses computer software and there is not a transfer of a copy
1670 of that software to the purchaser, the location of the transaction is determined in accordance
1671 with Subsections (4) and (5).
1672 (b) If a purchaser uses computer software described in Subsection (12)(a) at more than
1673 one location, the location of the transaction shall be determined in accordance with rules made
1674 by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
1675 Act.
1676 (13) (a) A tax collected under this chapter shall be reported to the commission on a
1677 form that identifies the location of each transaction that occurs during the return filing period.
1678 (b) The form described in Subsection (13)(a) shall be filed with the commission as
1679 required under this chapter.
1680 (14) This section does not apply to:
1681 (a) amounts charged by a seller for:
1682 (i) telecommunications service except for a prepaid calling service or a prepaid
1683 wireless calling service as provided in Subsection (6)(b) or Section 59-12-215; or
1684 (ii) the retail sale or transfer of:
1685 (A) a motor vehicle other than a motor vehicle that is transportation equipment;
1686 (B) an aircraft other than an aircraft that is transportation equipment;
1687 (C) a watercraft;
1688 (D) a modular home;
1689 (E) a manufactured home; or
1690 (F) a mobile home; or
1691 (iii) except as provided in Section 59-12-214, the lease or rental of tangible personal
1692 property other than tangible personal property that is transportation equipment;
1693 (b) a tax a person pays in accordance with Subsection 59-12-107(2)[
1694 (c) a retail sale of tangible personal property or a product transferred electronically if:
1695 (i) the seller receives the order for the tangible personal property or product transferred
1696 electronically in this state;
1697 (ii) receipt of the tangible personal property or product transferred electronically by the
1698 purchaser or the purchaser's donee occurs in this state;
1699 (iii) the location where receipt of the tangible personal property or product transferred
1700 electronically by the purchaser occurs is determined in accordance with Subsections (3)
1701 through (5); and
1702 (iv) at the time the seller receives the order, the record keeping system that the seller
1703 uses to calculate the proper amount of tax imposed under this chapter captures the location
1704 where the order is received.
1705 Section 8. Section 59-12-211.1 is amended to read:
1706 59-12-211.1. Location of a transaction that is subject to a use tax.
1707 (1) Subject to Subsection (2), a person that is required by Subsection
1708 59-12-107(2)[
1709 at the person's location.
1710 (2) For purposes of Subsection (1), if a person has more than one location in this state,
1711 the person shall report the location of the transaction at the location at which tangible personal
1712 property, a product transferred electronically, or a service is received.
1713 Section 9. Section 76-8-1101 is amended to read:
1714 76-8-1101. Criminal offenses and penalties relating to revenue and taxation --
1715 Rulemaking authority -- Statute of limitations.
1716 (1) (a) As provided in Section 59-1-401, criminal offenses and penalties are as
1717 provided in Subsections (1)(b) through (e).
1718 (b) (i) [
1719 (A) is required by Title 59, Revenue and Taxation, or any laws the State Tax
1720 Commission administers or regulates, to register with or obtain a license or permit from the
1721 State Tax Commission[
1722 (B) operates without having registered or secured a license or permit[
1723 operates when the registration, license, or permit is expired or not current[
1724
1725 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (1)(b)(i), the
1726 penalty may not:
1727 (A) be less than $500; or
1728 (B) exceed $1,000.
1729 (c) (i) With respect to a tax, fee, or charge as defined in Section 59-1-401, [
1730 person [
1731 (A) knowingly and intentionally, and without a reasonable good faith basis, fails to
1732 make, render, sign, or verify any return within the time required by law or to supply any
1733 information within the time required by law[
1734 (B) makes, renders, signs, or verifies any false or fraudulent return or statement[
1735 [
1736 (C) supplies any false or fraudulent information[
1737 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (1)(c)(i), the penalty
1738 may not:
1739 (A) be less than $1,000; or
1740 (B) exceed $5,000.
1741 (d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax,
1742 fee, or charge as defined in Section 59-1-401 or the payment of a tax, fee, or charge as defined
1743 in Section 59-1-401 is, in addition to other penalties provided by law, guilty of a second degree
1744 felony.
1745 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (1)(d)(i), the penalty
1746 may not:
1747 (A) be less than $1,500; or
1748 (B) exceed $25,000.
1749 (e) (i) A person is guilty of a second degree felony if that person commits an act:
1750 (A) described in Subsection (1)(e)(ii) with respect to one or more of the following
1751 documents:
1752 (I) a return;
1753 (II) an affidavit;
1754 (III) a claim; or
1755 (IV) a document similar to Subsections (1)(e)(i)(A)(I) through (III); and
1756 (B) subject to Subsection (1)(e)(iii), with knowledge that the document described in
1757 Subsection (1)(e)(i)(A):
1758 (I) is false or fraudulent as to any material matter; and
1759 (II) could be used in connection with any material matter administered by the State Tax
1760 Commission.
1761 (ii) The following acts apply to Subsection (1)(e)(i):
1762 (A) preparing any portion of a document described in Subsection (1)(e)(i)(A);
1763 (B) presenting any portion of a document described in Subsection (1)(e)(i)(A);
1764 (C) procuring any portion of a document described in Subsection (1)(e)(i)(A);
1765 (D) advising in the preparation or presentation of any portion of a document described
1766 in Subsection (1)(e)(i)(A);
1767 (E) aiding in the preparation or presentation of any portion of a document described in
1768 Subsection (1)(e)(i)(A);
1769 (F) assisting in the preparation or presentation of any portion of a document described
1770 in Subsection (1)(e)(i)(A); or
1771 (G) counseling in the preparation or presentation of any portion of a document
1772 described in Subsection (1)(e)(i)(A).
1773 (iii) This Subsection (1)(e) applies:
1774 (A) regardless of whether the person for which the document described in Subsection
1775 (1)(e)(i)(A) is prepared or presented:
1776 (I) knew of the falsity of the document described in Subsection (1)(e)(i)(A); or
1777 (II) consented to the falsity of the document described in Subsection (1)(e)(i)(A); and
1778 (B) in addition to any other penalty provided by law.
1779 (iv) Notwithstanding Section 76-3-301, for purposes of this Subsection (1)(e), the
1780 penalty may not:
1781 (A) be less than $1,500; or
1782 (B) exceed $25,000.
1783 (v) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1784 State Tax Commission may make rules prescribing the documents that are similar to
1785 Subsections (1)(e)(i)(A)(I) through (III).
1786 (2) The statute of limitations for prosecution for a violation of this section is the later
1787 of six years:
1788 (a) from the date the tax should have been remitted; or
1789 (b) after the day on which the person commits the criminal offense.
1790 Section 10. Effective date.
1791 This bill takes effect on January 1, 2017.