Senator Curtis S. Bramble proposes the following substitute bill:


1     
PREPAID WIRELESS TELECOMMUNICATIONS SERVICE

2     
AMENDMENTS

3     
2020 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Curtis S. Bramble

6     
House Sponsor: Francis D. Gibson

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions related to prepaid wireless telecommunications service.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     modifies the charge imposed on a transaction for prepaid wireless
15     telecommunications service to support the Universal Public Telecommunications
16     Service Support Fund;
17          ▸     provides that the seller in a transaction for prepaid wireless telecommunications
18     service shall collect the charge and remit the revenue to the State Tax Commission;
19          ▸     allows the State Tax Commission to share certain information with the Public
20     Service Commission related to charges on prepaid wireless telecommunications
21     service remitted to the State Tax Commission; and
22          ▸     makes technical and conforming changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:

26          This bill provides a special effective date.
27     Utah Code Sections Affected:
28     AMENDS:
29          54-8b-15, as last amended by Laws of Utah 2017, Chapter 423
30          59-1-306, as last amended by Laws of Utah 2019, Chapter 136
31          59-1-401, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
32          59-1-402, as last amended by Laws of Utah 2018, Chapter 329
33          59-1-403, as last amended by Laws of Utah 2019, Chapter 61
34          59-1-1402, as last amended by Laws of Utah 2018, Chapter 329
35          59-12-107, as last amended by Laws of Utah 2019, Chapter 486
36          59-12-108, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
37          59-12-128, as last amended by Laws of Utah 2017, Chapter 430
38          63H-7a-205, as last amended by Laws of Utah 2017, Chapter 430
39          63H-7a-304, as last amended by Laws of Utah 2019, Chapter 509
40          63H-7a-403, as last amended by Laws of Utah 2019, Chapter 509
41          69-2-101, as renumbered and amended by Laws of Utah 2017, Chapter 430
42          69-2-405, as last amended by Laws of Utah 2019, Chapter 509
43     

44     Be it enacted by the Legislature of the state of Utah:
45          Section 1. Section 54-8b-15 is amended to read:
46          54-8b-15. Universal Public Telecommunications Service Support Fund --
47     Commission duties -- Charges -- Lifeline program.
48          (1) For purposes of this section:
49          (a) "Broadband Internet access service" means the same as that term is defined in 47
50     C.F.R. Sec. 8.2.
51          (b) "Carrier of last resort" means:
52          (i) an incumbent telephone corporation; or
53          (ii) a telecommunications corporation that, under Section 54-8b-2.1:
54          (A) has a certificate of public convenience and necessity to provide local exchange
55     service; and
56          (B) has an obligation to provide public telecommunications service to any customer or

57     class of customers that requests service within the local exchange.
58          (c) "Connection" means an authorized session that uses Internet protocol or a
59     functionally equivalent technology standard to enable an end-user to initiate or receive a call
60     from the public switched network.
61          (d) "Fund" means the Universal Public Telecommunications Service Support Fund
62     established in this section.
63          (e) "Non-rate-of-return regulated" means having price flexibility under Section
64     54-8b-2.3.
65          (f) "Rate-of-return regulated" means subject to regulation under Section 54-4-4.
66          (g) "Wholesale broadband Internet access service" means the end-user loop component
67     of Internet access provided by a rate-of-return regulated carrier of last resort that is used to
68     provide, at retail:
69          (i) combined consumer voice and broadband Internet access; or
70          (ii) stand-alone, consumer, broadband-only Internet access.
71          (2) (a) There is established an expendable special revenue fund known as the
72     "Universal Public Telecommunications Service Support Fund."
73          (b) The fund shall provide a mechanism for a qualifying carrier of last resort to obtain
74     specific, predictable, and sufficient funds to deploy and manage, for the purpose of providing
75     service to end-users, networks capable of providing:
76          (i) access lines;
77          (ii) connections; or
78          (iii) wholesale broadband Internet access service.
79          (c) The commission shall develop, by rule made in accordance with Title 63G, Chapter
80     3, Utah Administrative Rulemaking Act, and consistent with this section, policies and
81     procedures to govern the administration of the fund.
82          (3) Subject to this section, the commission shall use funds in the Universal Public
83     Telecommunications Service Support Fund to:
84          (a) fund the hearing and speech impaired program described in Section 54-8b-10;
85          (b) fund a lifeline program that covers the reasonable cost to an eligible
86     telecommunications carrier, as determined by the commission, to offer lifeline service
87     consistent with the Federal Communications Commission's lifeline program for low-income

88     consumers;
89          (c) fund, for the purpose of providing service to end-users, a rate-of-return regulated or
90     non-rate-of-return regulated carrier of last resort's deployment and management of networks
91     capable of providing:
92          (i) access lines;
93          (ii) connections; or
94          (iii) wholesale broadband Internet access service that is consistent with Federal
95     Communications Commission rules; and
96          (d) fund one-time distributions from the Universal Public Telecommunications Service
97     Support Fund for a non-rate-of-return regulated carrier of last resort's deployment and
98     management of networks capable of providing:
99          (i) access lines;
100          (ii) connections; or
101          (iii) broadband Internet access service.
102          (4) (a) A rate-of-return regulated carrier of last resort is eligible for payment from the
103     Universal Public Telecommunications Service Support Fund if:
104          (i) the rate-of-return regulated carrier of last resort provides the services described in
105     Subsections (3)(c)(i) through (iii); and
106          (ii) the rate-of-return regulated carrier of last resort's reasonable costs, as determined by
107     the commission, to provide public telecommunications service and wholesale broadband
108     Internet access service are greater than the sum of:
109          (A) the rate-of-return regulated carrier of last resort's revenue from basic residential
110     service considered affordable by the commission;
111          (B) the rate-of-return regulated carrier of last resort's regulated revenue derived from
112     providing other public telecommunications service;
113          (C) the rate-of-return regulated carrier of last resort's revenue from rates approved by
114     the Federal Communications Commission for wholesale broadband Internet access service; and
115          (D) the amount the rate-of-return regulated carrier of last resort receives from federal
116     universal service funds.
117          (b) A non-rate-of-return regulated carrier of last resort is eligible for payment from the
118     Universal Public Telecommunications Service Support Fund for reimbursement of reasonable

119     costs as determined by the commission if the non-rate-of-return regulated carrier meets criteria
120     that are:
121          (i) consistent with Subsections (2) and (3); and
122          (ii) developed by the commission by rule made in accordance with Title 63G, Chapter
123     3, Utah Administrative Rulemaking Act.
124          (5) A rate-of-return regulated carrier of last resort that qualifies for funds under this
125     section:
126          (a) is entitled to a rate of return equal to the weighted average cost of capital rate of
127     return prescribed by the Federal Communications Commission for rate-of-return regulated
128     carriers; and
129          (b) may use any depreciation method allowed by the Federal Communications
130     Commission.
131          (6) (a) The commission shall determine if a rate-of-return regulated carrier of last resort
132     is correctly applying a depreciation method described in Subsection (5)(b).
133          (b) If the commission determines under Subsection (6)(a) that a rate-of-return regulated
134     carrier of last resort is incorrectly applying a depreciation method or that the rate-of-return
135     regulated carrier of last resort is not using a depreciation method allowed by the Federal
136     Communications Commission, the commission shall issue an order that provides corrections to
137     the rate-of-return regulated carrier of last resort's method of depreciation.
138          (7) A carrier of last resort that receives funds from the Universal Public
139     Telecommunications Service Support Fund may only use the funds in accordance with this
140     section within the area for which the carrier of last resort has a carrier of last resort obligation.
141          (8) (a) [Each] Except as provided in Subsection (8)(b), each access line provider and
142     each connection provider shall contribute to the Universal Public Telecommunications Service
143     Support Fund through an explicit charge assessed by the commission on the access line
144     provider or connection provider.
145          (b) The charge described in Subsection (8)(a) does not apply to a prepaid wireless
146     telecommunications service, as defined in Section 69-2-405, that is subject to the service
147     charge described in Subsection 69-2-405(2)(b).
148          (9) The commission shall calculate the amount of each explicit charge described in
149     Subsection (8) using a method developed by the commission by rule made in accordance with

150     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
151          (a) does not discriminate against:
152          (i) any access line or connection provider; or
153          (ii) the technology used by any access line or connection provider;
154          (b) is competitively neutral; and
155          (c) is a function of an access line or connection provider's:
156          (i) annual intrastate revenue;
157          (ii) number of access lines or connections in the state; or
158          (iii) a combination of an access line or connection provider's annual intrastate revenue
159     and number of access lines or connections in the state.
160          (10) The commission shall develop the method described in Subsection (9) before
161     January 1, 2018.
162          (11) An access line or connection provider that provides mobile telecommunications
163     service shall contribute to the Universal Public Telecommunications Service Support Fund
164     only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec.
165     116 et seq.
166          (12) Nothing in this section shall be construed to enlarge or reduce the commission's
167     jurisdiction or authority, as provided in other provisions of this title.
168          (13) A person that fails to make a required contribution to the fund created by this
169     section, or that fails to comply with a commission directive concerning the person's books,
170     records, or other information required by the commission to administer this section, is subject
171     to applicable penalties.
172          (14) Nothing in this section gives the commission the authority:
173          (a) to regulate broadband Internet access service;
174          (b) to require a carrier of last resort to provide broadband Internet access service; or
175          (c) assess a contribution in violation of the Internet Tax Freedom Act, 47 U.S.C. Sec.
176     151 note.
177          (15) (a) A facilities-based or nonfacilities-based wireless telecommunication provider
178     is eligible for distributions from the Universal Telecommunications Service Support Fund
179     under the lifeline program described in Subsection (3)(b) for providing lifeline service that is
180     consistent with the Federal Communications Commission's lifeline program for low-income

181     consumers.
182          (b) Except as provided in Subsection (15)(c), the commission may impose reasonable
183     conditions for providing a distribution to a wireless telecommunication provider under the
184     lifeline program described in Subsection (3)(b).
185          (c) The commission may not require a wireless telecommunication provider to offer
186     unlimited local calling to a lifeline customer as a condition of receiving a distribution under the
187     lifeline program described in Subsection (3)(b).
188          (16) The commission shall report to the Public Utilities, Energy, and Technology
189     Interim Committee each year before November 1 regarding:
190          (a) the contribution method described in Subsection (9);
191          (b) the amount of distributions from and contributions to the Universal Public
192     Telecommunications Service Support Fund during the last fiscal year;
193          (c) the availability of services for which Subsection (3) permits Universal Public
194     Telecommunications Service Support Fund funds to be used; and
195          (d) the effectiveness and efficiency of the Universal Public Telecommunications
196     Service Support Fund.
197          Section 2. Section 59-1-306 is amended to read:
198          59-1-306. Definition -- State Tax Commission Administrative Charge Account --
199     Amount of administrative charge -- Deposit of revenues into the restricted account --
200     Interest deposited into General Fund -- Expenditure of money deposited into the
201     restricted account.
202          (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge
203     the commission administers under:
204          (a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
205          (b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
206          (c) Section 19-6-714;
207          (d) Section 19-6-805;
208          (e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
209     Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
210          (f) Section 59-27-105;
211          (g) Section 63H-1-205; or

212          (h) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless Telecommunications
213     Service Charges.
214          (2) There is created a restricted account within the General Fund known as the "State
215     Tax Commission Administrative Charge Account."
216          (3) Subject to the other provisions of this section, the restricted account shall consist of
217     administrative charges the commission retains and deposits in accordance with this section.
218          (4) For purposes of this section, the administrative charge is a percentage of revenues
219     the commission collects from each qualifying tax, fee, or charge of not to exceed the lesser of:
220          (a) 1.5%; or
221          (b) an equal percentage of revenues the commission collects from each qualifying tax,
222     fee, or charge sufficient to cover the cost to the commission of administering the qualifying
223     taxes, fees, or charges.
224          (5) The commission shall deposit an administrative charge into the restricted account.
225          (6) Interest earned on the restricted account shall be deposited into the General Fund.
226          (7) The commission shall expend money appropriated by the Legislature to the
227     commission from the restricted account to administer qualifying taxes, fees, or charges.
228          Section 3. Section 59-1-401 is amended to read:
229          59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
230     of limitations -- Commission authority to waive, reduce, or compromise penalty or
231     interest.
232          (1) As used in this section:
233          (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
234     commission:
235          (i) has implemented the commission's GenTax system; and
236          (ii) at least 30 days before implementing the commission's GenTax system as described
237     in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
238     stating:
239          (A) the date the commission will implement the GenTax system with respect to the tax,
240     fee, or charge; and
241          (B) that, at the time the commission implements the GenTax system with respect to the
242     tax, fee, or charge:

243          (I) a person that files a return after the due date as described in Subsection (2)(a) is
244     subject to the penalty described in Subsection (2)(c)(ii); and
245          (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
246     subject to the penalty described in Subsection (3)(b)(ii).
247          (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
248     charge, the later of:
249          (i) the date on which the commission implements the commission's GenTax system
250     with respect to the tax, fee, or charge; or
251          (ii) 30 days after the date the commission provides the notice described in Subsection
252     (1)(a)(ii) with respect to the tax, fee, or charge.
253          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
254          (A) a tax, fee, or charge the commission administers under:
255          (I) this title;
256          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
257          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
258          (IV) Section 19-6-410.5;
259          (V) Section 19-6-714;
260          (VI) Section 19-6-805;
261          (VII) Section 34A-2-202;
262          (VIII) Section 40-6-14; or
263          (IX) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless
264     Telecommunications Service Charges; or
265          (B) another amount that by statute is subject to a penalty imposed under this section.
266          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
267          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
268          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
269          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
270          (D) Chapter 3, Tax Equivalent Property Act; or
271          (E) Chapter 4, Privilege Tax.
272          (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
273     tax, fee, or charge.

274          (2) (a) The due date for filing a return is:
275          (i) if the person filing the return is not allowed by law an extension of time for filing
276     the return, the day on which the return is due as provided by law; or
277          (ii) if the person filing the return is allowed by law an extension of time for filing the
278     return, the earlier of:
279          (A) the date the person files the return; or
280          (B) the last day of that extension of time as allowed by law.
281          (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
282     return after the due date described in Subsection (2)(a).
283          (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
284          (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
285     tax, fee, or charge:
286          (A) $20; or
287          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
288          (ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
289     fee, or charge, beginning on the activation date for the tax, fee, or charge:
290          (A) $20; or
291          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
292     filed no later than five days after the due date described in Subsection (2)(a);
293          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
294     more than five days after the due date but no later than 15 days after the due date described in
295     Subsection (2)(a); or
296          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
297     filed more than 15 days after the due date described in Subsection (2)(a).
298          (d) This Subsection (2) does not apply to:
299          (i) an amended return; or
300          (ii) a return with no tax due.
301          (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
302          (i) the person files a return on or before the due date for filing a return described in
303     Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
304     date;

305          (ii) the person:
306          (A) is subject to a penalty under Subsection (2)(b); and
307          (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
308     due date for filing a return described in Subsection (2)(a);
309          (iii) (A) the person is subject to a penalty under Subsection (2)(b); and
310          (B) the commission estimates an amount of tax due for that person in accordance with
311     Subsection 59-1-1406(2);
312          (iv) the person:
313          (A) is mailed a notice of deficiency; and
314          (B) within a 30-day period after the day on which the notice of deficiency described in
315     Subsection (3)(a)(iv)(A) is mailed:
316          (I) does not file a petition for redetermination or a request for agency action; and
317          (II) fails to pay the tax, fee, or charge due on a return;
318          (v) (A) the commission:
319          (I) issues an order constituting final agency action resulting from a timely filed petition
320     for redetermination or a timely filed request for agency action; or
321          (II) is considered to have denied a request for reconsideration under Subsection
322     63G-4-302(3)(b) resulting from a timely filed petition for redetermination or a timely filed
323     request for agency action; and
324          (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
325     after the date the commission:
326          (I) issues the order constituting final agency action described in Subsection
327     (3)(a)(v)(A)(I); or
328          (II) is considered to have denied the request for reconsideration described in
329     Subsection (3)(a)(v)(A)(II); or
330          (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
331     of a final judicial decision resulting from a timely filed petition for judicial review.
332          (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
333          (i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
334     respect to an unactivated tax, fee, or charge:
335          (A) $20; or

336          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
337          (ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
338     respect to an activated tax, fee, or charge, beginning on the activation date:
339          (A) $20; or
340          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
341     tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
342     return described in Subsection (2)(a);
343          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
344     fee, or charge due on the return is paid more than five days after the due date for filing a return
345     described in Subsection (2)(a) but no later than 15 days after that due date; or
346          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
347     tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
348     return described in Subsection (2)(a).
349          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
350     quarterly installments required by Sections 59-5-107, 59-5-207, 59-7-504, and 59-9-104, there
351     shall be added a penalty in an amount determined by applying the interest rate provided under
352     Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
353     of the underpayment.
354          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
355     excess of the required installment over the amount, if any, of the installment paid on or before
356     the due date for the installment.
357          (ii) The period of the underpayment shall run from the due date for the installment to
358     whichever of the following dates is the earlier:
359          (A) the original due date of the tax return, without extensions, for the taxable year; or
360          (B) with respect to any portion of the underpayment, the date on which that portion is
361     paid.
362          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
363     against unpaid required installments in the order in which the installments are required to be
364     paid.
365          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
366     person allowed by law an extension of time for filing a corporate franchise or income tax return

367     under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
368     under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
369     Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
370     including the extension of time, the person fails to pay:
371          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
372     Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507(1)(b); or
373          (ii) for a person filing an individual income tax return under Chapter 10, Individual
374     Income Tax Act, the payment required by Subsection 59-10-516(2).
375          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
376     extension of time for filing the return is an amount equal to 2% of the tax due on the return,
377     unpaid as of the day on which the return is due as provided by law.
378          (6) If a person does not file a return within an extension of time allowed by Section
379     59-7-505 or 59-10-516, the person:
380          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
381          (b) is subject to a penalty in an amount equal to the sum of:
382          (i) a late file penalty in an amount equal to the greater of:
383          (A) $20; or
384          (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
385     provided by law, not including the extension of time; and
386          (ii) a late pay penalty in an amount equal to the greater of:
387          (A) $20; or
388          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
389     due as provided by law, not including the extension of time.
390          (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
391     in this Subsection (7)(a).
392          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
393     fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
394     is due to negligence.
395          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
396     tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
397     underpayment.

398          (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
399     the penalty is the greater of $500 per period or 50% of the entire underpayment.
400          (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
401     charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
402          (b) If the commission determines that a person is liable for a penalty imposed under
403     Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
404     penalty.
405          (i) The notice of proposed penalty shall:
406          (A) set forth the basis of the assessment; and
407          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
408          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
409     penalty is proposed may:
410          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
411     or
412          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
413          (iii) A person against whom a penalty is proposed in accordance with this Subsection
414     (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
415     the commission.
416          (iv) (A) If the commission determines that a person is liable for a penalty under this
417     Subsection (7), the commission shall assess the penalty and give notice and demand for
418     payment.
419          (B) The commission shall mail the notice and demand for payment described in
420     Subsection (7)(b)(iv)(A):
421          (I) to the person's last-known address; and
422          (II) in accordance with Section 59-1-1404.
423          (c) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not
424     subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
425          (i) a court of competent jurisdiction issues a final unappealable judgment or order
426     determining that:
427          (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
428     or is a seller required to pay or collect and remit sales and use taxes under Subsection

429     59-12-107(2)(b) or (2)(c); and
430          (B) the commission or a county, city, or town may require the seller to collect a tax
431     under Subsections 59-12-103(2)(a) through (d); or
432          (ii) the commission issues a final unappealable administrative order determining that:
433          (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
434     or is a seller required to pay or collect and remit sales and use taxes under Subsection
435     59-12-107(2)(b) or (2)(c); and
436          (B) the commission or a county, city, or town may require the seller to collect a tax
437     under Subsections 59-12-103(2)(a) through (d).
438          (d) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not
439     subject to the penalty under Subsection (7)(a)(ii) if:
440          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
441     determining that:
442          (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
443     or is a seller required to pay or collect and remit sales and use taxes under Subsection
444     59-12-107(2)(b) or (2)(c); and
445          (II) the commission or a county, city, or town may require the seller to collect a tax
446     under Subsections 59-12-103(2)(a) through (d); or
447          (B) the commission issues a final unappealable administrative order determining that:
448          (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
449     or is a seller required to pay or collect and remit sales and use taxes under Subsection
450     59-12-107(2)(b) or (2)(c); and
451          (II) the commission or a county, city, or town may require the seller to collect a tax
452     under Subsections 59-12-103(2)(a) through (d); and
453          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
454     nonfrivolous argument for the extension, modification, or reversal of existing law or the
455     establishment of new law.
456          (8) (a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an
457     information return, information report, or a complete supporting schedule is $50 for each
458     information return, information report, or supporting schedule up to a maximum of $1,000.
459          (b) If an employer is subject to a penalty under Subsection (13), the employer may not

460     be subject to a penalty under Subsection (8)(a).
461          (c) If an employer is subject to a penalty under this Subsection (8) for failure to file a
462     return in accordance with Subsection 59-10-406(3) on or before the due date described in
463     Subsection 59-10-406(3)(b)(ii), the commission may not impose a penalty under this
464     Subsection (8) unless the return is filed more than 14 days after the due date described in
465     Subsection 59-10-406(3)(b)(ii).
466          (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
467     or impede administration of a law relating to a tax, fee, or charge and files a purported return
468     that fails to contain information from which the correctness of reported tax, fee, or charge
469     liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
470     substantially incorrect, the penalty is $500.
471          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
472     Subsection 59-12-108(1)(a):
473          (i) is subject to a penalty described in Subsection (2); and
474          (ii) may not retain the percentage of sales and use taxes that would otherwise be
475     allowable under Subsection 59-12-108(2).
476          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
477     required by Subsection 59-12-108(1)(a)(ii)(B):
478          (i) is subject to a penalty described in Subsection (2); and
479          (ii) may not retain the percentage of sales and use taxes that would otherwise be
480     allowable under Subsection 59-12-108(2).
481          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
482          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
483     following documents:
484          (A) a return;
485          (B) an affidavit;
486          (C) a claim; or
487          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
488          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
489     will be used in connection with any material matter administered by the commission; and
490          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection

491     with any material matter administered by the commission, would result in an understatement of
492     another person's liability for a tax, fee, or charge.
493          (b) The following acts apply to Subsection (11)(a)(i):
494          (i) preparing any portion of a document described in Subsection (11)(a)(i);
495          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
496          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
497          (iv) advising in the preparation or presentation of any portion of a document described
498     in Subsection (11)(a)(i);
499          (v) aiding in the preparation or presentation of any portion of a document described in
500     Subsection (11)(a)(i);
501          (vi) assisting in the preparation or presentation of any portion of a document described
502     in Subsection (11)(a)(i); or
503          (vii) counseling in the preparation or presentation of any portion of a document
504     described in Subsection (11)(a)(i).
505          (c) For purposes of Subsection (11)(a), the penalty:
506          (i) shall be imposed by the commission;
507          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
508     the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
509          (iii) is in addition to any other penalty provided by law.
510          (d) The commission may seek a court order to enjoin a person from engaging in
511     conduct that is subject to a penalty under this Subsection (11).
512          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
513     commission may make rules prescribing the documents that are similar to Subsections
514     (11)(a)(i)(A) through (C).
515          (12) (a) As provided in Section 76-8-1101, criminal offenses and penalties are as
516     provided in Subsections (12)(b) through (e).
517          (b) (i) A person who is required by this title or any laws the commission administers or
518     regulates to register with or obtain a license or permit from the commission, who operates
519     without having registered or secured a license or permit, or who operates when the registration,
520     license, or permit is expired or not current, is guilty of a class B misdemeanor.
521          (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(b)(i), the

522     penalty may not:
523          (A) be less than $500; or
524          (B) exceed $1,000.
525          (c) (i) With respect to a tax, fee, or charge, a person who knowingly and intentionally,
526     and without a reasonable good faith basis, fails to make, render, sign, or verify a return within
527     the time required by law or to supply information within the time required by law, or who
528     makes, renders, signs, or verifies a false or fraudulent return or statement, or who supplies false
529     or fraudulent information, is guilty of a third degree felony.
530          (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(c)(i), the
531     penalty may not:
532          (A) be less than $1,000; or
533          (B) exceed $5,000.
534          (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
535     charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
536     guilty of a second degree felony.
537          (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(d)(i), the
538     penalty may not:
539          (A) be less than $1,500; or
540          (B) exceed $25,000.
541          (e) (i) A person is guilty of a second degree felony if that person commits an act:
542          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
543     documents:
544          (I) a return;
545          (II) an affidavit;
546          (III) a claim; or
547          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
548          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
549     Subsection (12)(e)(i)(A):
550          (I) is false or fraudulent as to any material matter; and
551          (II) could be used in connection with any material matter administered by the
552     commission.

553          (ii) The following acts apply to Subsection (12)(e)(i):
554          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
555          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
556          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
557          (D) advising in the preparation or presentation of any portion of a document described
558     in Subsection (12)(e)(i)(A);
559          (E) aiding in the preparation or presentation of any portion of a document described in
560     Subsection (12)(e)(i)(A);
561          (F) assisting in the preparation or presentation of any portion of a document described
562     in Subsection (12)(e)(i)(A); or
563          (G) counseling in the preparation or presentation of any portion of a document
564     described in Subsection (12)(e)(i)(A).
565          (iii) This Subsection (12)(e) applies:
566          (A) regardless of whether the person for which the document described in Subsection
567     (12)(e)(i)(A) is prepared or presented:
568          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
569          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
570          (B) in addition to any other penalty provided by law.
571          (iv) Notwithstanding Section 76-3-301, for purposes of this Subsection (12)(e), the
572     penalty may not:
573          (A) be less than $1,500; or
574          (B) exceed $25,000.
575          (v) The commission may seek a court order to enjoin a person from engaging in
576     conduct that is subject to a penalty under this Subsection (12)(e).
577          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
578     the commission may make rules prescribing the documents that are similar to Subsections
579     (12)(e)(i)(A)(I) through (III).
580          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
581     the later of six years:
582          (i) from the date the tax should have been remitted; or
583          (ii) after the day on which the person commits the criminal offense.

584          (13) (a) Subject to Subsection (13)(b), an employer that is required to file a form with
585     the commission in accordance with Subsection 59-10-406(8) is subject to a penalty described
586     in Subsection (13)(b) if the employer:
587          (i) fails to file the form with the commission in an electronic format approved by the
588     commission as required by Subsection 59-10-406(8);
589          (ii) fails to file the form on or before the due date provided in Subsection 59-10-406(8);
590          (iii) fails to provide accurate information on the form; or
591          (iv) fails to provide all of the information required by the Internal Revenue Service to
592     be contained on the form.
593          (b) For purposes of Subsection (13)(a), the penalty is:
594          (i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the
595     form in accordance with Subsection 59-10-406(8), more than 14 days after the due date
596     provided in Subsection 59-10-406(8) but no later than 30 days after the due date provided in
597     Subsection 59-10-406(8);
598          (ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the
599     form in accordance with Subsection 59-10-406(8), more than 30 days after the due date
600     provided in Subsection 59-10-406(8) but on or before June 1; or
601          (iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
602          (A) files the form in accordance with Subsection 59-10-406(8) after June 1; or
603          (B) fails to file the form.
604          (14) Upon making a record of its actions, and upon reasonable cause shown, the
605     commission may waive, reduce, or compromise any of the penalties or interest imposed under
606     this part.
607          Section 4. Section 59-1-402 is amended to read:
608          59-1-402. Definitions -- Interest.
609          (1) As used in this section:
610          (a) "Final judicial decision" means a final ruling by a court of this state or the United
611     States for which the time for any further review or proceeding has expired.
612          (b) "Retroactive application of a judicial decision" means the application of a final
613     judicial decision that:
614          (i) invalidates a state or federal taxation statute; and

615          (ii) requires the state to provide a refund for an overpayment that was made:
616          (A) prior to the final judicial decision; or
617          (B) during the 180-day period after the final judicial decision.
618          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
619          (A) a tax, fee, or charge the commission administers under:
620          (I) this title;
621          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
622          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
623          (IV) Section 19-6-410.5;
624          (V) Section 19-6-714;
625          (VI) Section 19-6-805;
626          (VII) Section 34A-2-202;
627          (VIII) Section 40-6-14; or
628          (IX) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless
629     Telecommunications Service Charges; or
630          (B) another amount that by statute is subject to interest imposed under this section.
631          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
632          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
633          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
634          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
635          (D) Chapter 3, Tax Equivalent Property Act;
636          (E) Chapter 4, Privilege Tax; or
637          (F) Chapter 13, Part 5, Interstate Agreements.
638          (2) Except as otherwise provided for by law, the interest rate for a calendar year for a
639     tax, fee, or charge administered by the commission shall be calculated based on the federal
640     short-term rate determined by the Secretary of the Treasury under Section 6621, Internal
641     Revenue Code, in effect for the preceding fourth calendar quarter.
642          (3) The interest rate calculation shall be as follows:
643          (a) except as provided in Subsection (7), in the case of an overpayment or refund,
644     simple interest shall be calculated at the rate of two percentage points above the federal
645     short-term rate; or

646          (b) in the case of an underpayment, deficiency, or delinquency, simple interest shall be
647     calculated at the rate of two percentage points above the federal short-term rate.
648          (4) Notwithstanding Subsection (2) or (3), the interest rate applicable to certain
649     installment sales for purposes of a tax under Chapter 7, Corporate Franchise and Income Taxes,
650     shall be determined in accordance with Section 453A, Internal Revenue Code, as provided in
651     Section 59-7-112.
652          (5) (a) Except as provided in Subsection (5)(c), interest may not be allowed on an
653     overpayment of a tax, fee, or charge if the overpayment of the tax, fee, or charge is refunded
654     within:
655          (i) 45 days after the last date prescribed for filing the return with respect to a tax under
656     Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
657     if the return is filed electronically; or
658          (ii) 90 days after the last date prescribed for filing the return:
659          (A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
660     Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
661          (B) if the return is not filed electronically.
662          (b) Except as provided in Subsection (5)(c), if the return is filed after the last date
663     prescribed for filing the return, interest may not be allowed on the overpayment if the
664     overpayment is refunded within:
665          (i) 45 days after the date the return is filed:
666          (A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or
667     Chapter 10, Individual Income Tax Act; and
668          (B) if the return is filed electronically; or
669          (ii) 90 days after the date the return is filed:
670          (A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
671     Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
672          (B) if the return is not filed electronically.
673          (c) (i) In the case of an amended return, interest on an overpayment shall be allowed:
674          (A) for a time period:
675          (I) that begins on the later of:
676          (Aa) the date the original return was filed; or

677          (Bb) the due date for filing the original return not including any extensions for filing
678     the original return; and
679          (II) that ends on the date the commission receives the amended return; and
680          (B) if the commission does not make a refund of an overpayment under this Subsection
681     (5)(c):
682          (I) if the amended return is with respect to a tax under Chapter 7, Corporate Franchise
683     and Income Taxes, or Chapter 10, Individual Income Tax Act, and is filed electronically,
684     within a 45-day period after the date the commission receives the amended return, for a time
685     period:
686          (Aa) that begins 46 days after the commission receives the amended return; and
687          (Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
688     completes processing the refund of the overpayment; or
689          (II) if the amended return is with respect to a tax, fee, or charge except for a tax under
690     Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
691     or is not filed electronically, within a 90-day period after the date the commission receives the
692     amended return, for a time period:
693          (Aa) that begins 91 days after the commission receives the amended return; and
694          (Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
695     completes processing the refund of the overpayment.
696          (ii) For purposes of Subsection (5)(c)(i)(B)(I)(Bb) or (5)(c)(i)(B)(II)(Bb), interest shall
697     be calculated forward from the preparation date of the refund document to allow for
698     processing.
699          (6) Interest on any underpayment, deficiency, or delinquency of a tax, fee, or charge
700     shall be computed from the time the original return is due, excluding any filing or payment
701     extensions, to the date the payment is received.
702          (7) Interest on a refund relating to a tax, fee, or charge may not be paid on any
703     overpayment that arises from a statute that is determined to be invalid under state or federal
704     law or declared unconstitutional under the constitution of the United States or Utah if the basis
705     for the refund is the retroactive application of a judicial decision upholding the claim of
706     unconstitutionality or the invalidation of a statute.
707          Section 5. Section 59-1-403 is amended to read:

708          59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
709          (1) (a) Any of the following may not divulge or make known in any manner any
710     information gained by that person from any return filed with the commission:
711          (i) a tax commissioner;
712          (ii) an agent, clerk, or other officer or employee of the commission; or
713          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
714     town.
715          (b) An official charged with the custody of a return filed with the commission is not
716     required to produce the return or evidence of anything contained in the return in any action or
717     proceeding in any court, except:
718          (i) in accordance with judicial order;
719          (ii) on behalf of the commission in any action or proceeding under:
720          (A) this title; or
721          (B) other law under which persons are required to file returns with the commission;
722          (iii) on behalf of the commission in any action or proceeding to which the commission
723     is a party; or
724          (iv) on behalf of any party to any action or proceeding under this title if the report or
725     facts shown by the return are directly involved in the action or proceeding.
726          (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
727     admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
728     pertinent to the action or proceeding.
729          (2) This section does not prohibit:
730          (a) a person or that person's duly authorized representative from receiving a copy of
731     any return or report filed in connection with that person's own tax;
732          (b) the publication of statistics as long as the statistics are classified to prevent the
733     identification of particular reports or returns; and
734          (c) the inspection by the attorney general or other legal representative of the state of the
735     report or return of any taxpayer:
736          (i) who brings action to set aside or review a tax based on the report or return;
737          (ii) against whom an action or proceeding is contemplated or has been instituted under
738     this title; or

739          (iii) against whom the state has an unsatisfied money judgment.
740          (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
741     commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
742     Rulemaking Act, provide for a reciprocal exchange of information with:
743          (i) the United States Internal Revenue Service; or
744          (ii) the revenue service of any other state.
745          (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
746     corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
747     Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
748     other written statements with the federal government, any other state, any of the political
749     subdivisions of another state, or any political subdivision of this state, except as limited by
750     Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
751     government grant substantially similar privileges to this state.
752          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
753     corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
754     Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
755     identity and other information of taxpayers who have failed to file tax returns or to pay any tax
756     due.
757          (d) Notwithstanding Subsection (1), the commission shall provide to the director of the
758     Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
759     requested by the director of the Division of Environmental Response and Remediation, any
760     records, returns, or other information filed with the commission under Chapter 13, Motor and
761     Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
762     participation fee.
763          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
764     provide that person sales and purchase volume data reported to the commission on a report,
765     return, or other information filed with the commission under:
766          (i) Chapter 13, Part 2, Motor Fuel; or
767          (ii) Chapter 13, Part 4, Aviation Fuel.
768          (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
769     as defined in Section 59-22-202, the commission shall report to the manufacturer:

770          (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
771     manufacturer and reported to the commission for the previous calendar year under Section
772     59-14-407; and
773          (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
774     manufacturer for which a tax refund was granted during the previous calendar year under
775     Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
776          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
777     distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
778     from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
779          (h) Notwithstanding Subsection (1), the commission may:
780          (i) provide to the Division of Consumer Protection within the Department of
781     Commerce and the attorney general data:
782          (A) reported to the commission under Section 59-14-212; or
783          (B) related to a violation under Section 59-14-211; and
784          (ii) upon request, provide to any person data reported to the commission under
785     Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
786          (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
787     of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
788     Management and Budget, provide to the committee or office the total amount of revenues
789     collected by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the
790     time period specified by the committee or office.
791          (j) Notwithstanding Subsection (1), the commission shall make the directory required
792     by Section 59-14-603 available for public inspection.
793          (k) Notwithstanding Subsection (1), the commission may share information with
794     federal, state, or local agencies as provided in Subsection 59-14-606(3).
795          (l) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
796     Recovery Services within the Department of Human Services any relevant information
797     obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
798     who has become obligated to the Office of Recovery Services.
799          (ii) The information described in Subsection (3)(l)(i) may be provided by the Office of
800     Recovery Services to any other state's child support collection agency involved in enforcing

801     that support obligation.
802          (m) (i) Notwithstanding Subsection (1), upon request from the state court
803     administrator, the commission shall provide to the state court administrator, the name, address,
804     telephone number, county of residence, and social security number on resident returns filed
805     under Chapter 10, Individual Income Tax Act.
806          (ii) The state court administrator may use the information described in Subsection
807     (3)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
808          (n) (i) As used in this Subsection (3)(n):
809          (A) "GOED" means the Governor's Office of Economic Development created in
810     Section 63N-1-201.
811          (B) "Income tax information" means information gained by the commission that is
812     required to be attached to or included in a return filed with the commission under Chapter 7,
813     Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
814          (C) "Other tax information" means information gained by the commission that is
815     required to be attached to or included in a return filed with the commission except for a return
816     filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
817     Income Tax Act.
818          (D) "Tax information" means income tax information or other tax information.
819          (ii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
820     (3)(n)(ii)(B) or (C), the commission shall at the request of GOED provide to GOED all income
821     tax information.
822          (B) For purposes of a request for income tax information made under Subsection
823     (3)(n)(ii)(A), GOED may not request and the commission may not provide to GOED a person's
824     address, name, social security number, or taxpayer identification number.
825          (C) In providing income tax information to GOED, the commission shall in all
826     instances protect the privacy of a person as required by Subsection (3)(n)(ii)(B).
827          (iii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
828     (3)(n)(iii)(B), the commission shall at the request of GOED provide to GOED other tax
829     information.
830          (B) Before providing other tax information to GOED, the commission shall redact or
831     remove any name, address, social security number, or taxpayer identification number.

832          (iv) GOED may provide tax information received from the commission in accordance
833     with this Subsection (3)(n) only:
834          (A) as a fiscal estimate, fiscal note information, or statistical information; and
835          (B) if the tax information is classified to prevent the identification of a particular
836     return.
837          (v) (A) A person may not request tax information from GOED under Title 63G,
838     Chapter 2, Government Records Access and Management Act, or this section, if GOED
839     received the tax information from the commission in accordance with this Subsection (3)(n).
840          (B) GOED may not provide to a person that requests tax information in accordance
841     with Subsection (3)(n)(v)(A) any tax information other than the tax information GOED
842     provides in accordance with Subsection (3)(n)(iv).
843          (o) Notwithstanding Subsection (1), the commission may provide to the governing
844     board of the agreement or a taxing official of another state, the District of Columbia, the United
845     States, or a territory of the United States:
846          (i) the following relating to an agreement sales and use tax:
847          (A) information contained in a return filed with the commission;
848          (B) information contained in a report filed with the commission;
849          (C) a schedule related to Subsection (3)(o)(i)(A) or (B); or
850          (D) a document filed with the commission; or
851          (ii) a report of an audit or investigation made with respect to an agreement sales and
852     use tax.
853          (p) Notwithstanding Subsection (1), the commission may provide information
854     concerning a taxpayer's state income tax return or state income tax withholding information to
855     the Driver License Division if the Driver License Division:
856          (i) requests the information; and
857          (ii) provides the commission with a signed release form from the taxpayer allowing the
858     Driver License Division access to the information.
859          (q) Notwithstanding Subsection (1), the commission shall provide to the Utah
860     Communications Authority, or a division of the Utah Communications Authority, the
861     information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
862     63H-7a-502.

863          (r) Notwithstanding Subsection (1), the commission shall provide to the Utah
864     Educational Savings Plan information related to a resident or nonresident individual's
865     contribution to a Utah Educational Savings Plan account as designated on the resident or
866     nonresident's individual income tax return as provided under Section 59-10-1313.
867          (s) Notwithstanding Subsection (1), for the purpose of verifying eligibility under
868     Sections 26-18-2.5 and 26-40-105, the commission shall provide an eligibility worker with the
869     Department of Health or its designee with the adjusted gross income of an individual if:
870          (i) an eligibility worker with the Department of Health or its designee requests the
871     information from the commission; and
872          (ii) the eligibility worker has complied with the identity verification and consent
873     provisions of Sections 26-18-2.5 and 26-40-105.
874          (t) Notwithstanding Subsection (1), the commission may provide to a county, as
875     determined by the commission, information declared on an individual income tax return in
876     accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
877     authorized under Section 59-2-103.
878          (u) Notwithstanding Subsection (1), the commission shall provide a report regarding
879     any access line provider that is over 90 days delinquent in payment to the commission of
880     amounts the access line provider owes under Title 69, Chapter 2, Part 4, [911 Emergency]
881     Prepaid Wireless Telecommunications Service Charges, to the board of the Utah
882     Communications Authority created in Section 63H-7a-201.
883          (v) Notwithstanding Subsection (1), the commission shall provide the Department of
884     Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
885     previous calendar year under Section 59-24-103.5.
886          (w) Notwithstanding Subsection (1), the commission may, upon request, provide to the
887     Department of Workforce Services any information received under Chapter 10, Part 4,
888     Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
889          (x) Notwithstanding Subsection (1), the commission may provide the Public Service
890     Commission or the Division of Public Utilities information related to a seller that collects and
891     remits to the commission a charge described in Subsection 69-2-405(2), including the seller's
892     identity and the number of charges described in Subsection 69-2-405(2) that the seller collects.
893          (4) (a) Each report and return shall be preserved for at least three years.

894          (b) After the three-year period provided in Subsection (4)(a) the commission may
895     destroy a report or return.
896          (5) (a) Any individual who violates this section is guilty of a class A misdemeanor.
897          (b) If the individual described in Subsection (5)(a) is an officer or employee of the
898     state, the individual shall be dismissed from office and be disqualified from holding public
899     office in this state for a period of five years thereafter.
900          (c) Notwithstanding Subsection (5)(a) or (b), GOED, when requesting information in
901     accordance with Subsection (3)(n)(iii), or an individual who requests information in
902     accordance with Subsection (3)(n)(v):
903          (i) is not guilty of a class A misdemeanor; and
904          (ii) is not subject to:
905          (A) dismissal from office in accordance with Subsection (5)(b); or
906          (B) disqualification from holding public office in accordance with Subsection (5)(b).
907          (6) Except as provided in Section 59-1-404, this part does not apply to the property tax.
908          Section 6. Section 59-1-1402 is amended to read:
909          59-1-1402. Definitions.
910          As used in this part:
911          (1) "Administrative cost" means a fee imposed to cover:
912          (a) the cost of filing;
913          (b) the cost of administering a garnishment;
914          (c) the amount the commission pays to a depository institution in accordance with Part
915     17, Depository Institution Data Match System and Levy Act; or
916          (d) a cost similar to Subsections (1)(a) through (c) as determined by the commission by
917     rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
918          (2) "Books and records" means the following made available in printed or electronic
919     format:
920          (a) an account;
921          (b) a book;
922          (c) an invoice;
923          (d) a memorandum;
924          (e) a paper;

925          (f) a record; or
926          (g) an item similar to Subsections (2)(a) through (f) as determined by the commission
927     by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
928          (3) "Deficiency" means:
929          (a) the amount by which a tax, fee, or charge exceeds the difference between:
930          (i) the sum of:
931          (A) the amount shown as the tax, fee, or charge by a person on the person's return; and
932          (B) any amount previously assessed, or collected without assessment, as a deficiency;
933     and
934          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
935     to that tax, fee, or charge; or
936          (b) if a person does not show an amount as a tax, fee, or charge on the person's return,
937     or if a person does not make a return, the amount by which the tax, fee, or charge exceeds:
938          (i) the amount previously assessed, or collected without assessment, as a deficiency;
939     and
940          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
941     to that tax, fee, or charge.
942          (4) "Garnishment" means any legal or equitable procedure through which one or more
943     of the following are required to be withheld for payment of an amount a person owes:
944          (a) an asset of the person held by another person; or
945          (b) the earnings of the person.
946          (5) "Liability" means the following that a person is required to remit to the
947     commission:
948          (a) a tax, fee, or charge;
949          (b) an addition to a tax, fee, or charge;
950          (c) an administrative cost;
951          (d) interest that accrues in accordance with Section 59-1-402; or
952          (e) a penalty that accrues in accordance with Section 59-1-401.
953          (6) (a) Subject to Subsection (6)(b), "mathematical error" is as defined in Section
954     6213(g)(2), Internal Revenue Code.
955          (b) The reference to Section 6213(g)(2), Internal Revenue Code, in Subsection (6)(a)

956     means:
957          (i) the reference to Section 6213(g)(2), Internal Revenue Code, in effect for the taxable
958     year; or
959          (ii) a corresponding or comparable provision of the Internal Revenue Code as
960     amended, redesignated, or reenacted.
961          (7) (a) Except as provided in Subsection (7)(b), "tax, fee, or charge" means:
962          (i) a tax, fee, or charge the commission administers under:
963          (A) this title;
964          (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
965          (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
966          (D) Section 19-6-410.5;
967          (E) Section 19-6-714;
968          (F) Section 19-6-805;
969          (G) Section 34A-2-202;
970          (H) Section 40-6-14; or
971          (I) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless Telecommunications
972     Service Charges; or
973          (ii) another amount that by statute is administered by the commission.
974          (b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
975          (i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
976          (ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
977          (iii) Chapter 2, Property Tax Act;
978          (iv) Chapter 3, Tax Equivalent Property Act;
979          (v) Chapter 4, Privilege Tax; or
980          (vi) Chapter 13, Part 5, Interstate Agreements.
981          (8) "Transferee" means:
982          (a) a devisee;
983          (b) a distributee;
984          (c) a donee;
985          (d) an heir;
986          (e) a legatee; or

987          (f) a person similar to Subsections (8)(a) through (e) as determined by the commission
988     by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
989          Section 7. Section 59-12-107 is amended to read:
990          59-12-107. Definitions -- Collection, remittance, and payment of tax by sellers or
991     other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
992     liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
993     Penalties and interest.
994          (1) As used in this section:
995          (a) "Ownership" means direct ownership or indirect ownership through a parent,
996     subsidiary, or affiliate.
997          (b) "Related seller" means a seller that:
998          (i) meets one or more of the criteria described in Subsection (2)(a)(i); and
999          (ii) delivers tangible personal property, a service, or a product transferred electronically
1000     that is sold:
1001          (A) by a seller that does not meet one or more of the criteria described in Subsection
1002     (2)(a)(i); and
1003          (B) to a purchaser in the state.
1004          (c) "Substantial ownership interest" means an ownership interest in a business entity if
1005     that ownership interest is greater than the degree of ownership of equity interest specified in 15
1006     U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
1007          (2) (a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section
1008     59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit the sales
1009     and use taxes imposed by this chapter if within this state the seller:
1010          (i) has or utilizes:
1011          (A) an office;
1012          (B) a distribution house;
1013          (C) a sales house;
1014          (D) a warehouse;
1015          (E) a service enterprise; or
1016          (F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
1017          (ii) maintains a stock of goods;

1018          (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
1019     state, unless the seller's only activity in the state is:
1020          (A) advertising; or
1021          (B) solicitation by:
1022          (I) direct mail;
1023          (II) electronic mail;
1024          (III) the Internet;
1025          (IV) telecommunications service; or
1026          (V) a means similar to Subsection (2)(a)(iii)(A) or (B);
1027          (iv) regularly engages in the delivery of property in the state other than by:
1028          (A) common carrier; or
1029          (B) United States mail; or
1030          (v) regularly engages in an activity directly related to the leasing or servicing of
1031     property located within the state.
1032          (b) A seller is considered to be engaged in the business of selling tangible personal
1033     property, a product transferred electronically, or a service for use in the state, and shall pay or
1034     collect and remit the sales and use taxes imposed by this chapter if:
1035          (i) the seller holds a substantial ownership interest in, or is owned in whole or in
1036     substantial part by, a related seller; and
1037          (ii) (A) the seller sells the same or a substantially similar line of products as the related
1038     seller and does so under the same or a substantially similar business name; or
1039          (B) the place of business described in Subsection (2)(a)(i) of the related seller or an in
1040     state employee of the related seller is used to advertise, promote, or facilitate sales by the seller
1041     to a purchaser.
1042          (c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the
1043     criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit
1044     the sales and use taxes imposed by this chapter under Subsection (2)(b) shall pay or collect and
1045     remit the sales and use tax imposed by this chapter if the seller:
1046          (i) sells tangible personal property, products transferred electronically, or services for
1047     storage, use, or consumption in the state; and
1048          (ii) in either the previous calendar year or the current calendar year:

1049          (A) receives gross revenue from the sale of tangible personal property, products
1050     transferred electronically, or services for storage, use, or consumption in the state of more than
1051     $100,000; or
1052          (B) sells tangible personal property, products transferred electronically, or services for
1053     storage, use, or consumption in the state in 200 or more separate transactions.
1054          (d) A seller that does not meet one or more of the criteria provided for in Subsection
1055     (2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection
1056     (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
1057          (i) collect a tax on a transaction described in Subsection 59-12-103(1); and
1058          (ii) remit the tax to the commission as provided in this part.
1059          (e) The collection and remittance of a tax under this chapter by a seller that is
1060     registered under the agreement may not be used as a factor in determining whether that seller is
1061     required by this Subsection (2) to:
1062          (i) pay a tax, fee, or charge under:
1063          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1064          (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
1065          (C) Section 19-6-714;
1066          (D) Section 19-6-805;
1067          (E) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless
1068     Telecommunications Service Charges; or
1069          (F) this title; or
1070          (ii) collect and remit a tax, fee, or charge under:
1071          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1072          (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
1073          (C) Section 19-6-714;
1074          (D) Section 19-6-805;
1075          (E) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless
1076     Telecommunications Service Charges; or
1077          (F) this title.
1078          (f) A person shall pay a use tax imposed by this chapter on a transaction described in
1079     Subsection 59-12-103(1) if:

1080          (i) the seller did not collect a tax imposed by this chapter on the transaction; and
1081          (ii) the person:
1082          (A) stores the tangible personal property or product transferred electronically in the
1083     state;
1084          (B) uses the tangible personal property or product transferred electronically in the state;
1085     or
1086          (C) consumes the tangible personal property or product transferred electronically in the
1087     state.
1088          (g) The ownership of property that is located at the premises of a printer's facility with
1089     which the retailer has contracted for printing and that consists of the final printed product,
1090     property that becomes a part of the final printed product, or copy from which the printed
1091     product is produced, shall not result in the retailer being considered to have or maintain an
1092     office, distribution house, sales house, warehouse, service enterprise, or other place of
1093     business, or to maintain a stock of goods, within this state.
1094          (3) (a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this
1095     chapter from a purchaser.
1096          (b) A seller may not collect as tax an amount, without regard to fractional parts of one
1097     cent, in excess of the tax computed at the rates prescribed by this chapter.
1098          (c) (i) Each seller shall:
1099          (A) give the purchaser a receipt for the tax collected; or
1100          (B) bill the tax as a separate item and declare the name of this state and the seller's
1101     sales and use tax license number on the invoice for the sale.
1102          (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
1103     and relieves the purchaser of the liability for reporting the tax to the commission as a
1104     consumer.
1105          (d) A seller is not required to maintain a separate account for the tax collected, but is
1106     considered to be a person charged with receipt, safekeeping, and transfer of public money.
1107          (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
1108     benefit of the state and for payment to the commission in the manner and at the time provided
1109     for in this chapter.
1110          (f) If any seller, during any reporting period, collects as a tax an amount in excess of

1111     the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
1112     shall remit to the commission the full amount of the tax imposed under this chapter, plus any
1113     excess.
1114          (g) If the accounting methods regularly employed by the seller in the transaction of the
1115     seller's business are such that reports of sales made during a calendar month or quarterly period
1116     will impose unnecessary hardships, the commission may accept reports at intervals that, in the
1117     commission's opinion, will better suit the convenience of the taxpayer or seller and will not
1118     jeopardize collection of the tax.
1119          (h) (i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
1120     and until such time as the commission accepts specie legal tender for the payment of a tax
1121     under this chapter, if the commission requires a seller to remit a tax under this chapter in legal
1122     tender other than specie legal tender, the seller shall state on the seller's books and records and
1123     on an invoice, bill of sale, or similar document provided to the purchaser:
1124          (A) the purchase price in specie legal tender and in the legal tender the seller is
1125     required to remit to the commission;
1126          (B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie
1127     legal tender and in the legal tender the seller is required to remit to the commission;
1128          (C) the tax rate under this chapter applicable to the purchase; and
1129          (D) the date of the purchase.
1130          (ii) (A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of
1131     tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the
1132     specie legal tender the purchaser paid.
1133          (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1134     commission may make rules for determining the amount of tax due under Subsection (3)(h)(i)
1135     if the London fixing price is not available for a particular day.
1136          (4) (a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
1137     sales or use tax imposed by this chapter is due and payable to the commission quarterly on or
1138     before the last day of the month next succeeding each quarterly calendar period.
1139          (b) (i) Each seller shall, on or before the last day of the month next succeeding each
1140     quarterly calendar period, file with the commission a return for the preceding quarterly period.
1141          (ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the

1142     tax required under this chapter to be collected or paid for the period covered by the return.
1143          (c) Except as provided in Subsection (5)(c), a return shall contain information and be in
1144     a form the commission prescribes by rule.
1145          (d) (i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
1146     based on the total nonexempt sales made during the period for which the return is filed,
1147     including both cash and charge sales.
1148          (ii) For a sale that includes the delivery or installation of tangible personal property at a
1149     location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery
1150     or installation is separately stated on an invoice or receipt, a seller may compute the tax due on
1151     the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that
1152     sale during each period for which the seller receives payment for the sale.
1153          (e) (i) The use tax as computed in the return shall be based on the total amount of
1154     purchases for storage, use, or other consumption in this state made during the period for which
1155     the return is filed, including both cash and charge purchases.
1156          (ii) (A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser
1157     that is required to remit taxes under this chapter, but is not required to remit taxes monthly in
1158     accordance with Section 59-12-108, and that converts tangible personal property into real
1159     property.
1160          (B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the
1161     taxes due under this chapter on tangible personal property for which the qualifying purchaser
1162     claims an exemption as allowed under Subsection 59-12-104(23) or (25) based on the period in
1163     which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C),
1164     for the conversion of the tangible personal property into real property.
1165          (C) A qualifying purchaser remitting taxes due under this chapter in accordance with
1166     Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the
1167     qualifying purchaser's purchase of the tangible personal property that was converted into real
1168     property multiplied by a fraction, the numerator of which is the payment received in the period
1169     for the qualifying purchaser's sale of the tangible personal property that was converted into real
1170     property and the denominator of which is the entire sales price for the qualifying purchaser's
1171     sale of the tangible personal property that was converted into real property.
1172          (D) A qualifying purchaser may remit taxes due under this chapter in accordance with

1173     this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in
1174     the qualifying purchaser's regular course of business identify by reasonable and verifiable
1175     standards that the tangible personal property was converted into real property.
1176          (f) (i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
1177     Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
1178     returns and paying the taxes.
1179          (ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
1180          (g) The commission may require returns and payment of the tax to be made for other
1181     than quarterly periods if the commission considers it necessary in order to ensure the payment
1182     of the tax imposed by this chapter.
1183          (h) (i) The commission may require a seller that files a simplified electronic return with
1184     the commission to file an additional electronic report with the commission.
1185          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1186     commission may make rules providing:
1187          (A) the information required to be included in the additional electronic report described
1188     in Subsection (4)(h)(i); and
1189          (B) one or more due dates for filing the additional electronic report described in
1190     Subsection (4)(h)(i).
1191          (5) (a) As used in this Subsection (5) and Subsection (6)(b), "remote seller" means a
1192     seller that is:
1193          (i) registered under the agreement;
1194          (ii) described in Subsection (2)(d); and
1195          (iii) not a:
1196          (A) model 1 seller;
1197          (B) model 2 seller; or
1198          (C) model 3 seller.
1199          (b) (i) Except as provided in Subsection (5)(b)(ii), a tax a remote seller collects in
1200     accordance with Subsection (2)(d) is due and payable:
1201          (A) to the commission;
1202          (B) annually; and
1203          (C) on or before the last day of the month immediately following the last day of each

1204     calendar year.
1205          (ii) The commission may require that a tax a remote seller collects in accordance with
1206     Subsection (2)(d) be due and payable:
1207          (A) to the commission; and
1208          (B) on the last day of the month immediately following any month in which the seller
1209     accumulates a total of at least $1,000 in agreement sales and use tax.
1210          (c) (i) If a remote seller remits a tax to the commission in accordance with Subsection
1211     (5)(b), the remote seller shall file a return:
1212          (A) with the commission;
1213          (B) with respect to the tax;
1214          (C) containing information prescribed by the commission; and
1215          (D) on a form prescribed by the commission.
1216          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1217     commission shall make rules prescribing:
1218          (A) the information required to be contained in a return described in Subsection
1219     (5)(c)(i); and
1220          (B) the form described in Subsection (5)(c)(i)(D).
1221          (d) A tax a remote seller collects in accordance with this Subsection (5) shall be
1222     calculated on the basis of the total amount of taxable transactions under Subsection
1223     59-12-103(1) the remote seller completes, including:
1224          (i) a cash transaction; and
1225          (ii) a charge transaction.
1226          (6) (a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
1227     electronic return collects in accordance with this chapter is due and payable:
1228          (i) monthly on or before the last day of the month immediately following the month for
1229     which the seller collects a tax under this chapter; and
1230          (ii) for the month for which the seller collects a tax under this chapter.
1231          (b) A tax a remote seller that files a simplified electronic return collects in accordance
1232     with this chapter is due and payable as provided in Subsection (5).
1233          (7) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
1234     purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to

1235     titling or registration under the laws of this state.
1236          (b) The commission shall collect the tax described in Subsection (7)(a) when the
1237     vehicle is titled or registered.
1238          (8) If any sale of tangible personal property or any other taxable transaction under
1239     Subsection 59-12-103(1), is made by a wholesaler to a retailer:
1240          (a) the wholesaler is not responsible for the collection or payment of the tax imposed
1241     on the sale; and
1242          (b) the retailer is responsible for the collection or payment of the tax imposed on the
1243     sale if:
1244          (i) the retailer represents that the tangible personal property, product transferred
1245     electronically, or service is purchased by the retailer for resale; and
1246          (ii) the tangible personal property, product transferred electronically, or service is not
1247     subsequently resold.
1248          (9) If any sale of property or service subject to the tax is made to a person prepaying
1249     sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
1250     contractor or subcontractor of that person:
1251          (a) the person to whom such payment or consideration is payable is not responsible for
1252     the collection or payment of the sales or use tax; and
1253          (b) the person prepaying the sales or use tax is responsible for the collection or
1254     payment of the sales or use tax if the person prepaying the sales or use tax represents that the
1255     amount prepaid as sales or use tax has not been fully credited against sales or use tax due and
1256     payable under the rules promulgated by the commission.
1257          (10) (a) For purposes of this Subsection (10):
1258          (i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that term
1259     is defined in Section 166, Internal Revenue Code.
1260          (ii) "Bad debt" does not include:
1261          (A) an amount included in the purchase price of tangible personal property, a product
1262     transferred electronically, or a service that is:
1263          (I) not a transaction described in Subsection 59-12-103(1); or
1264          (II) exempt under Section 59-12-104;
1265          (B) a financing charge;

1266          (C) interest;
1267          (D) a tax imposed under this chapter on the purchase price of tangible personal
1268     property, a product transferred electronically, or a service;
1269          (E) an uncollectible amount on tangible personal property or a product transferred
1270     electronically that:
1271          (I) is subject to a tax under this chapter; and
1272          (II) remains in the possession of a seller until the full purchase price is paid;
1273          (F) an expense incurred in attempting to collect any debt; or
1274          (G) an amount that a seller does not collect on repossessed property.
1275          (b) (i) To the extent an amount remitted in accordance with Subsection (4)(d) later
1276     becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax
1277     under this chapter is calculated on a return.
1278          (ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the
1279     total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on
1280     the qualifying purchaser's purchase of tangible personal property converted into real property to
1281     the extent that:
1282          (A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal
1283     property converted into real property;
1284          (B) the qualifying purchaser's sale of that tangible personal property converted into real
1285     property later becomes bad debt; and
1286          (C) the books and records that the qualifying purchaser keeps in the qualifying
1287     purchaser's regular course of business identify by reasonable and verifiable standards that the
1288     tangible personal property was converted into real property.
1289          (c) A seller may file a refund claim with the commission if:
1290          (i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
1291     the amount of the seller's sales that are subject to a tax under this chapter for that same time
1292     period; and
1293          (ii) as provided in Section 59-1-1410.
1294          (d) A bad debt deduction under this section may not include interest.
1295          (e) A bad debt may be deducted under this Subsection (10) on a return for the time
1296     period during which the bad debt:

1297          (i) is written off as uncollectible in the seller's books and records; and
1298          (ii) would be eligible for a bad debt deduction:
1299          (A) for federal income tax purposes; and
1300          (B) if the seller were required to file a federal income tax return.
1301          (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
1302     claims a refund under this Subsection (10), the seller shall report and remit a tax under this
1303     chapter:
1304          (i) on the portion of the bad debt the seller recovers; and
1305          (ii) on a return filed for the time period for which the portion of the bad debt is
1306     recovered.
1307          (g) For purposes of reporting a recovery of a portion of bad debt under Subsection
1308     (10)(f), a seller shall apply amounts received on the bad debt in the following order:
1309          (i) in a proportional amount:
1310          (A) to the purchase price of the tangible personal property, product transferred
1311     electronically, or service; and
1312          (B) to the tax due under this chapter on the tangible personal property, product
1313     transferred electronically, or service; and
1314          (ii) to:
1315          (A) interest charges;
1316          (B) service charges; and
1317          (C) other charges.
1318          (h) A seller's certified service provider may make a deduction or claim a refund for bad
1319     debt on behalf of the seller:
1320          (i) in accordance with this Subsection (10); and
1321          (ii) if the certified service provider credits or refunds the entire amount of the bad debt
1322     deduction or refund to the seller.
1323          (i) A seller may allocate bad debt among the states that are members of the agreement
1324     if the seller's books and records support that allocation.
1325          (11) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
1326     amount of tax required by this chapter.
1327          (b) A violation of this section is punishable as provided in Section 59-1-401.

1328          (c) Each person that fails to pay any tax to the state or any amount of tax required to be
1329     paid to the state, except amounts determined to be due by the commission under Chapter 1,
1330     Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111, within the time
1331     required by this chapter, or that fails to file any return as required by this chapter, shall pay, in
1332     addition to the tax, penalties and interest as provided in Sections 59-1-401 and 59-1-402.
1333          (d) For purposes of prosecution under this section, each quarterly tax period in which a
1334     seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
1335     tax required to be remitted constitutes a separate offense.
1336          Section 8. Section 59-12-108 is amended to read:
1337          59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
1338     Certain amounts allocated to local taxing jurisdictions.
1339          (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
1340     chapter of $50,000 or more for the previous calendar year shall:
1341          (i) file a return with the commission:
1342          (A) monthly on or before the last day of the month immediately following the month
1343     for which the seller collects a tax under this chapter; and
1344          (B) for the month for which the seller collects a tax under this chapter; and
1345          (ii) except as provided in Subsection (1)(b), remit with the return required by
1346     Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
1347     fee, or charge described in Subsection (1)(c):
1348          (A) if that seller's tax liability under this chapter for the previous calendar year is less
1349     than $96,000, by any method permitted by the commission; or
1350          (B) if that seller's tax liability under this chapter for the previous calendar year is
1351     $96,000 or more, by electronic funds transfer.
1352          (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
1353     the amount the seller is required to remit to the commission for each tax, fee, or charge
1354     described in Subsection (1)(c) if that seller:
1355          (i) is required by Section 59-12-107 to file the return electronically; or
1356          (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
1357          (B) files a simplified electronic return.
1358          (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:

1359          (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1360          (ii) a fee under Section 19-6-714;
1361          (iii) a fee under Section 19-6-805;
1362          (iv) a charge under Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless
1363     Telecommunications Service Charges; or
1364          (v) a tax under this chapter.
1365          (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
1366     Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
1367     for making same-day payments other than by electronic funds transfer if making payments by
1368     electronic funds transfer fails.
1369          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1370     commission shall establish by rule procedures and requirements for determining the amount a
1371     seller is required to remit to the commission under this Subsection (1).
1372          (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
1373     seller described in Subsection (4) may retain each month the amount allowed by this
1374     Subsection (2).
1375          (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
1376     each month 1.31% of any amounts the seller is required to remit to the commission:
1377          (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
1378     and a local tax imposed in accordance with the following, for the month for which the seller is
1379     filing a return in accordance with Subsection (1):
1380          (A) Subsection 59-12-103(2)(a);
1381          (B) Subsection 59-12-103(2)(b); and
1382          (C) Subsection 59-12-103(2)(d); and
1383          (ii) for an agreement sales and use tax.
1384          (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
1385     retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
1386     in Subsection 59-12-103(1) that is subject to the state tax and the local tax imposed in
1387     accordance with Subsection 59-12-103(2)(c).
1388          (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
1389     equal to the sum of:

1390          (A) 1.31% of any amounts the seller is required to remit to the commission for:
1391          (I) the state tax and the local tax imposed in accordance with Subsection
1392     59-12-103(2)(c);
1393          (II) the month for which the seller is filing a return in accordance with Subsection (1);
1394     and
1395          (III) an agreement sales and use tax; and
1396          (B) 1.31% of the difference between:
1397          (I) the amounts the seller would have been required to remit to the commission:
1398          (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
1399     to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
1400          (Bb) for the month for which the seller is filing a return in accordance with Subsection
1401     (1); and
1402          (Cc) for an agreement sales and use tax; and
1403          (II) the amounts the seller is required to remit to the commission for:
1404          (Aa) the state tax and the local tax imposed in accordance with Subsection
1405     59-12-103(2)(c);
1406          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
1407     and
1408          (Cc) an agreement sales and use tax.
1409          (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
1410     each month 1% of any amounts the seller is required to remit to the commission:
1411          (i) for the month for which the seller is filing a return in accordance with Subsection
1412     (1); and
1413          (ii) under:
1414          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1415          (B) Subsection 59-12-603(1)(a)(i)(A); or
1416          (C) Subsection 59-12-603(1)(a)(i)(B).
1417          (3) A state government entity that is required to remit taxes monthly in accordance
1418     with Subsection (1) may not retain any amount under Subsection (2).
1419          (4) A seller that has a tax liability under this chapter for the previous calendar year of
1420     less than $50,000 may:

1421          (a) voluntarily meet the requirements of Subsection (1); and
1422          (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
1423     amounts allowed by Subsection (2).
1424          (5) Penalties for late payment shall be as provided in Section 59-1-401.
1425          (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
1426     to the commission under this part, the commission shall each month calculate an amount equal
1427     to the difference between:
1428          (i) the total amount retained for that month by all sellers had the percentages listed
1429     under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
1430          (ii) the total amount retained for that month by all sellers at the percentages listed
1431     under Subsections (2)(b) and (2)(c)(ii).
1432          (b) The commission shall each month allocate the amount calculated under Subsection
1433     (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
1434     tax that the commission distributes to each county, city, and town for that month compared to
1435     the total agreement sales and use tax that the commission distributes for that month to all
1436     counties, cities, and towns.
1437          (c) The amount the commission calculates under Subsection (6)(a) may not include an
1438     amount collected from a tax that:
1439          (i) the state imposes within a county, city, or town, including the unincorporated area
1440     of a county; and
1441          (ii) is not imposed within the entire state.
1442          Section 9. Section 59-12-128 is amended to read:
1443          59-12-128. Amnesty.
1444          (1) As used in this section, "amnesty" means that a seller is not required to pay the
1445     following amounts that the seller would otherwise be required to pay:
1446          (a) a tax, fee, or charge under:
1447          (i) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1448          (ii) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
1449          (iii) Section 19-6-714;
1450          (iv) Section 19-6-805;
1451          (v) Chapter 26, Multi-Channel Video or Audio Service Tax Act;

1452          (vi) Title 69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless
1453     Telecommunications Service Charges; or
1454          (vii) this chapter;
1455          (b) a penalty on a tax, fee, or charge described in Subsection (1)(a); or
1456          (c) interest on a tax, fee, or charge described in Subsection (1)(a).
1457          (2) (a) Except as provided in Subsections (2)(b) and (3) and subject to Subsections (4)
1458     and (5), the commission shall grant a seller amnesty if the seller:
1459          (i) obtains a license under Section 59-12-106; and
1460          (ii) is registered under the agreement.
1461          (b) The commission is not required to grant a seller amnesty under this section
1462     beginning 12 months after the date the state becomes a full member under the agreement.
1463          (3) A seller may not receive amnesty under this section for a tax, fee, or charge:
1464          (a) the seller collects;
1465          (b) the seller remits to the commission;
1466          (c) that the seller is required to remit to the commission on the seller's purchase; or
1467          (d) arising from a transaction that occurs within a time period that is under audit by the
1468     commission if:
1469          (i) the seller receives notice of the commencement of the audit prior to obtaining a
1470     license under Section 59-12-106; and
1471          (ii) (A) the audit described in Subsection (3)(d)(i) is not complete; or
1472          (B) the seller has not exhausted all administrative and judicial remedies in connection
1473     with the audit described in Subsection (3)(d)(i).
1474          (4) (a) Except as provided in Subsection (4)(b), amnesty the commission grants to a
1475     seller under this section:
1476          (i) applies to the time period during which the seller is not licensed under Section
1477     59-12-106; and
1478          (ii) remains in effect if, for a period of three years, the seller:
1479          (A) remains registered under the agreement;
1480          (B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge
1481     described in Subsection (1)(a); and
1482          (C) remits to the commission the taxes, fees, and charges the seller collects in

1483     accordance with Subsection (4)(a)(ii)(B).
1484          (b) The commission may not grant a seller amnesty under this section if, with respect
1485     to a tax, fee, or charge for which the seller would otherwise be granted amnesty under this
1486     section, the seller commits:
1487          (i) fraud; or
1488          (ii) an intentional misrepresentation of a material fact.
1489          (5) (a) If a seller does not meet a requirement of Subsection (4)(a)(ii), the commission
1490     shall require the seller to pay the amounts described in Subsection (1) that the seller would
1491     have otherwise been required to pay.
1492          (b) Notwithstanding Section 59-1-1410, for purposes of requiring a seller to pay an
1493     amount in accordance with Subsection (5)(a), the time period for the commission to make an
1494     assessment under Section 59-1-1410 is extended for a time period beginning on the date the
1495     seller does not meet a requirement of Subsection (4)(a)(ii) and ends three years after that date.
1496          Section 10. Section 63H-7a-205 is amended to read:
1497          63H-7a-205. Executive director -- Appointment -- Powers and duties.
1498          The executive director shall:
1499          (1) (a) serve at the pleasure of the board; and
1500          (b) act as the executive officer of the authority;
1501          (2) administer the duties, programs, and functions assigned to the authority;
1502          (3) recommend administrative rules and policies to the board;
1503          (4) execute contracts on behalf of the authority;
1504          (5) recommend to the board any changes in statutes affecting the authority;
1505          (6) recommend to the board an annual administrative budget covering administration,
1506     management, and operations of the authority;
1507          (7) with board approval, direct and control authority expenditures;
1508          (8) within the limitations of the budget, employ personnel, consultants, a financial
1509     officer, and legal counsel to provide professional services and advice regarding the
1510     administration of the authority; and
1511          (9) submit and make available to the public a report before December of each year to
1512     the board, the Executive Offices and Criminal Justice Appropriations Subcommittee, and the
1513     Legislative Management Committee that includes:

1514          (a) the total aggregate surcharge collected by the state in the last fiscal year under Title
1515     69, Chapter 2, Part 4, [911 Emergency] Prepaid Wireless Telecommunications Service
1516     Charges;
1517          (b) the amount of each disbursement from the restricted accounts described in:
1518          (i) Section 63H-7a-303;
1519          (ii) Section 63H-7a-304; and
1520          (iii) Section 63H-7a-403;
1521          (c) the recipient of each disbursement, the goods and services received, and a
1522     description of the project funded by the disbursement;
1523          (d) any conditions placed by the authority on the disbursements from a restricted
1524     account;
1525          (e) the anticipated expenditures from the restricted accounts described in this chapter
1526     for the next fiscal year;
1527          (f) the amount of any unexpended funds carried forward;
1528          (g) the goals for implementation of the authority strategic plan and the progress report
1529     of accomplishments and updates to the plan; and
1530          (h) other relevant justification for ongoing support from the restricted accounts created
1531     by Sections 63H-7a-303, 63H-7a-304, and 63H-7a-403.
1532          Section 11. Section 63H-7a-304 is amended to read:
1533          63H-7a-304. Unified Statewide 911 Emergency Service Account -- Creation --
1534     Administration -- Permitted uses.
1535          (1) There is created a restricted account within the General Fund known as the "Unified
1536     Statewide 911 Emergency Service Account," consisting of:
1537          (a) proceeds from the fee imposed in Section 69-2-403;
1538          (b) money appropriated or otherwise made available by the Legislature; and
1539          (c) contributions of money, property, or equipment from federal agencies, political
1540     subdivisions of the state, persons, or corporations.
1541          (2) (a) Except as provided in Subsection (4) and subject to Subsection (3) and
1542     appropriations by the Legislature, the authority shall disburse funds in the Unified Statewide
1543     911 Emergency Service Account for the purpose of enhancing and maintaining the statewide
1544     public safety communications network and 911 call processing equipment in order to rapidly

1545     and efficiently deliver 911 services in the state.
1546          (b) In expending funds in the Unified Statewide 911 Emergency Service Account, the
1547     authority shall give a higher priority to an expenditure that:
1548          (i) best promotes statewide public safety;
1549          (ii) best promotes interoperability;
1550          (iii) impacts the largest service territory;
1551          (iv) impacts a densely populated area; or
1552          (v) impacts an underserved area.
1553          (c) The authority shall expend funds in the Unified Statewide 911 Emergency Service
1554     Account in accordance with the authority strategic plan described in Section 63H-7a-206.
1555          (d) The authority may not expend funds from the Unified Statewide 911 Emergency
1556     Service Account collected through the 911 emergency service charge imposed in Section
1557     69-2-403 on behalf of a PSAP that chooses not to participate in the:
1558          (i) public safety communications network; and
1559          (ii) the 911 emergency service defined in Section 69-2-102.
1560          (e) The authority may not expend funds from the Unified Statewide 911 Emergency
1561     Service Account collected through the prepaid wireless 911 service charge revenue distributed
1562     in Subsection 69-2-405(9)[(b)(ii)](c) on behalf of a PSAP that chooses not to participate in the:
1563          (i) public safety communications network; and
1564          (ii) 911 emergency service defined in Section 69-2-102.
1565          (f) The executive director shall recommend to the board expenditures for the authority
1566     to make from the Unified Statewide 911 Emergency Service Account in accordance with this
1567     Subsection (2).
1568          (3) Subject to an appropriation by the Legislature and approval by the board , the
1569     Administrative Services Division may use funds in the Unified Statewide 911 Emergency
1570     Service Account to cover the Administrative Services Division's administrative costs related to
1571     the Unified Statewide 911 Emergency Service Account.
1572          (4) (a) The authority shall reimburse from the Unified Statewide 911 Emergency
1573     Service Account to the Automated Geographic Reference Center created in Section 63F-1-506
1574     an amount equal to up to 1 cent of each unified statewide 911 emergency service charge
1575     deposited into the Unified Statewide 911 Emergency Service Account under Section 69-2-403.

1576          (b) The Automated Geographic Reference Center shall use the funds reimbursed to the
1577     Automated Geographic Reference Center under Subsection (4)(a) to:
1578          (i) enhance and upgrade digital mapping standards; and
1579          (ii) maintain a statewide geospatial database for unified statewide 911 emergency
1580     service.
1581          (c) Subject to an appropriation by the Legislature, the authority may expend funds from
1582     the United Statewide 911 Emergency Service Account to reimburse a county for the costs, up
1583     to $60,000, of each audit described in Section 69-2-203.
1584          Section 12. Section 63H-7a-403 is amended to read:
1585          63H-7a-403. Utah Statewide Radio System Restricted Account -- Creation --
1586     Administration.
1587          (1) There is created a restricted account within the General Fund known as the "Utah
1588     Statewide Radio System Restricted Account," consisting of:
1589          (a) money appropriated or otherwise made available by the Legislature; and
1590          (b) contributions of money from federal agencies, political subdivisions of the state,
1591     persons, or corporations.
1592          (2) (a) Subject to appropriations by the Legislature and subject to this Subsection (2),
1593     the authority may expend funds in the Utah Statewide Radio System Restricted Account for the
1594     purpose of acquiring, constructing, operating, maintaining, and repairing a statewide radio
1595     system public safety communications network as authorized in Section 63H-7a-202, including:
1596          (i) public safety communications network and related facilities, real property,
1597     improvements, and equipment necessary for the acquisition, construction, and operation of
1598     services and facilities;
1599          (ii) installation, implementation, and maintenance of the public safety communications
1600     network;
1601          (iii) maintaining and upgrading VHF and 800 MHz radio networks; and
1602          (iv) an operating budget to include personnel costs not otherwise covered by funds
1603     from another account.
1604          (b) For each radio network charge that is deposited into the Utah Statewide Radio
1605     System Restricted Account under Section 69-2-404, the authority shall spend, subject to an
1606     appropriation by the Legislature and this Subsection (2):

1607          (i) on and after July 1, 2017, 18 cents of each total radio network charge to maintain
1608     the public safety communications network, including:
1609          (A) the 800 MHz and VHF radio networks;
1610          (B) radio console network connectivity;
1611          (C) funding a statewide interoperability coordinator; and
1612          (D) supplementing costs formerly offset by public safety communications network user
1613     fees assessed by the authority before July 1, 2017; and
1614          (ii) on and after January 1, 2018, 34 cents of each total radio network charge to acquire,
1615     construct, equip, and install property for, and to make improvements to, the 800 MHz radio
1616     system, including debt service costs.
1617          (c) In expending funds in the Utah Statewide Radio System Restricted Account, the
1618     authority shall give a higher priority to an expenditure that:
1619          (i) best promotes statewide public safety;
1620          (ii) best promotes interoperability;
1621          (iii) impacts the largest service territory;
1622          (iv) impacts a densely populated area; or
1623          (v) impacts an underserved area.
1624          (d) The authority shall expend funds in the Utah Statewide Radio System Restricted
1625     Account in accordance with the authority strategic plan described in Section 63H-7a-206.
1626          (e) The authority may not expend funds from the Utah Statewide Radio System
1627     Restricted Account collected through the radio network charge imposed in Section 69-2-404 on
1628     behalf of a public agency or PSAP if the public agency or PSAP chooses not to participate in
1629     the:
1630          (i) public safety communications network; and
1631          (ii) radio communications service defined in Section 69-2-102.
1632          (f) The authority may not expend funds from the Utah Statewide Radio System
1633     Restricted Account collected through the prepaid wireless 911 service charge revenue
1634     distributed in Subsection 69-2-405(9)[(b)(iii)](c) on behalf of a public agency or PSAP if the
1635     public agency or PSAP chooses not to participate in the:
1636          (i) public safety communications network; and
1637          (ii) radio communications service defined in Section 69-2-102.

1638          (g) The executive director shall recommend to the board expenditures for the authority
1639     to make from the Utah Statewide Radio System Restricted Account in accordance with this
1640     Subsection (2).
1641          (3) Subject to appropriations by the Legislature , the Administrative Services Division
1642      may expend funds in the Utah Statewide Radio System Restricted Account for administrative
1643     costs that the Administrative Services Division incurs related to the Utah Statewide Radio
1644     System Restricted Account .
1645          Section 13. Section 69-2-101 is amended to read:
1646     
CHAPTER 2. EMERGENCY SERVICE AND PREPAID WIRELESS

1647     
TELECOMMUNICATIONS SERVICE

1648          69-2-101. Title.
1649          This chapter is known as "[911] Emergency Service and Prepaid Wireless
1650     Telecommunications Service."
1651          Section 14. Section 69-2-405 is amended to read:
1652     
Part 4. Prepaid Wireless Telecommunications Service Charges

1653          69-2-405. Service charges -- Collection and distribution of revenue.
1654          (1) As used in this section:
1655          (a) "Consumer" means a person who purchases prepaid wireless telecommunications
1656     service in a transaction.
1657          (b) "Prepaid wireless 911 service charge" means the charge that is required to be
1658     collected by a seller from a consumer in the amount established under Subsection (2).
1659          (c) (i) "Prepaid wireless telecommunications service" means a wireless
1660     telecommunications service that:
1661          (A) is paid for in advance;
1662          (B) is sold in predetermined units of time or dollars that decline with use in a known
1663     amount or provides unlimited use of the service for a fixed amount or time; and
1664          (C) allows a caller to access 911 emergency service.
1665          (ii) "Prepaid wireless telecommunications service" does not include a wireless
1666     telecommunications service that is billed:
1667          (A) to a customer on a recurring basis; and
1668          (B) in a manner that includes the charges levied under Sections 69-2-402, 69-2-403,

1669     and 69-2-404, for each radio communication access line assigned to the customer.
1670          (d) "Seller" means a person that sells prepaid wireless telecommunications service to a
1671     consumer.
1672          (e) "Transaction" means each purchase of prepaid wireless telecommunications service
1673     from a seller.
1674          (f) "Wireless telecommunications service" means commercial mobile radio service as
1675     defined by 47 C.F.R. Sec. 20.3, as amended.
1676          [(2) There is imposed a prepaid wireless 911 service charge of:]
1677          [(a) before January 1, 2018, 2.45% of the sales price per transaction;]
1678          [(b) on January 1, 2018, and until June 30, 2019, 3.30% of the sales price per
1679     transaction; and]
1680          (2) There is imposed:
1681          [(c)] (a) [beginning July 1, 2019,] a prepaid wireless 911 service charge of 3.7% of the
1682     sales price per transaction[.]; and
1683          (b) a prepaid wireless telecommunications service charge of 1.2% of the sales price per
1684     transaction.
1685          (3) (a) [The prepaid wireless 911 service charge] Each charge described in Subsection
1686     (2) shall be collected by the seller from the consumer for each transaction occurring in this
1687     state.
1688          (b) (i) Except as provided in Subsections (3)(b)(ii) and (iii), if a user of a service
1689     subject to a charge described in Subsection (2) is not the consumer, the seller shall collect the
1690     charge from the consumer for the service.
1691          (ii) [The] A charge described in Subsection (2) is not imposed on a seller or a
1692     consumer of federal wireless lifeline service if the consumer does not pay the seller for the
1693     service.
1694          (iii) A consumer of federal wireless lifeline service shall pay, and the seller of the
1695     service shall collect and remit, [the] each charge described in Subsection (2) when the
1696     consumer purchases from the seller optional services in addition to the federally funded lifeline
1697     benefit.
1698          (4) [The prepaid wireless 911 service charge] Each charge described in Subsection (2)
1699     shall be separately stated on an invoice, receipt, or similar document that is provided by the

1700     seller to the consumer.
1701          (5) For purposes of Subsection (3), the location of a transaction is determined in
1702     accordance with Sections 59-12-211 through 59-12-215.
1703          (6) When prepaid wireless telecommunications service is sold with one or more other
1704     products or services for a single non-itemized price, then the percentage specified in
1705     Subsection (2) shall apply to the entire non-itemized price.
1706          (7) A seller may retain 3% of[ prepaid wireless 911 service charges] the charges
1707     described in Subsection (2) that are collected by the seller from consumers as reimbursement
1708     for the cost of billing, collecting, and remitting the charge.
1709          (8) A person that collects a [prepaid wireless 911 service charge] charge described in
1710     Subsection (2), except as retained under Subsection (7), shall remit [the prepaid wireless 911
1711     service] each charge to the commission at the same time that the seller remits to the
1712     commission money collected by the person under Title 59, Chapter 12, Sales and Use Tax Act.
1713          (9) The commission shall distribute revenues collected under this section as follows:
1714          [(a) for revenues collected under this section for a filing period ending on or before
1715     June 30, 2019:]
1716          [(i) 53.8% of the prepaid wireless 911 service charge revenue to a public safety
1717     answering point in accordance with Section 69-2-302;]
1718          [(ii) 6.8% of the prepaid wireless 911 service charge revenue to the Unified Statewide
1719     911 Emergency Service Account created in Section 63H-7a-304; and]
1720          [(iii) 39.4% of the prepaid wireless 911 service charge revenue to the Utah Statewide
1721     Radio System Restricted Account created in Section 63H-7a-403; and]
1722          [(b) for revenues collected under this section for a filing period beginning July 1,
1723     2019:]
1724          [(i)] (a) 47.97% of the prepaid wireless 911 service charge revenue to a public safety
1725     answering point in accordance with Section 69-2-302;
1726          [(ii)] (b) 16.89% of the prepaid wireless 911 service charge revenue to the Unified
1727     Statewide 911 Emergency Service Account created in Section 63H-7a-304; [and]
1728          [(iii)] (c) 35.14% of the prepaid wireless 911 service charge revenue to the Utah
1729     Statewide Radio System Restricted Account created in Section 63H-7a-403[.]; and
1730          (d) 100% of the prepaid wireless telecommunications service charge revenue to the

1731     Universal Public Telecommunications Service Support Fund created in Section 54-8b-15.
1732          Section 15. Effective date.
1733          This bill takes effect on January 1, 2021.