1     
SALES AND USE TAX REVISIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Steve Eliason

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     Committee Note:
9          The Revenue and Taxation Interim Committee recommended this bill.
10               Legislative Vote:     12 voting for     0 voting against     6 absent
11     General Description:
12          This bill amends the requirements governing when a seller has to pay or collect and
13     remit sales and use tax.
14     Highlighted Provisions:
15          This bill:
16          ▸     repeals the requirement that a seller has to pay or collect and remit the sales and use
17     tax if the seller sells tangible personal property, products transferred electronically,
18     or services for storage, use, or consumption in the state in more than a certain
19     number of separate transactions; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          This bill provides a special effective date.
25     Utah Code Sections Affected:
26     AMENDS:
27          59-12-107, as last amended by Laws of Utah 2022, Chapter 273

28          59-12-107.6, as last amended by Laws of Utah 2023, Chapter 361
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 59-12-107 is amended to read:
32          59-12-107. Definitions -- Collection, remittance, and payment of tax by sellers or
33     other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
34     liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
35     Penalties and interest.
36          (1) As used in this section:
37          (a) "Ownership" means direct ownership or indirect ownership through a parent,
38     subsidiary, or affiliate.
39          (b) "Related seller" means a seller that:
40          (i) meets one or more of the criteria described in Subsection (2)(a)(i); and
41          (ii) delivers tangible personal property, a service, or a product transferred electronically
42     that is sold:
43          (A) by a seller that does not meet one or more of the criteria described in Subsection
44     (2)(a)(i); and
45          (B) to a purchaser in the state.
46          (c) "Substantial ownership interest" means an ownership interest in a business entity if
47     that ownership interest is greater than the degree of ownership of equity interest specified in 15
48     U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
49          (2) (a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section
50     59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit the sales
51     and use taxes imposed by this chapter if within this state the seller:
52          (i) has or utilizes:
53          (A) an office;
54          (B) a distribution house;
55          (C) a sales house;
56          (D) a warehouse;
57          (E) a service enterprise; or
58          (F) a place of business similar to Subsections (2)(a)(i)(A) through (E);

59          (ii) maintains a stock of goods;
60          (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
61     state, unless the seller's only activity in the state is:
62          (A) advertising; or
63          (B) solicitation by:
64          (I) direct mail;
65          (II) electronic mail;
66          (III) the Internet;
67          (IV) telecommunications service; or
68          (V) a means similar to Subsection (2)(a)(iii)(A) or (B);
69          (iv) regularly engages in the delivery of property in the state other than by:
70          (A) common carrier; or
71          (B) United States mail; or
72          (v) regularly engages in an activity directly related to the leasing or servicing of
73     property located within the state.
74          (b) A seller is considered to be engaged in the business of selling tangible personal
75     property, a product transferred electronically, or a service for use in the state, and shall pay or
76     collect and remit the sales and use taxes imposed by this chapter if:
77          (i) the seller holds a substantial ownership interest in, or is owned in whole or in
78     substantial part by, a related seller; and
79          (ii) (A) the seller sells the same or a substantially similar line of products as the related
80     seller and does so under the same or a substantially similar business name; or
81          (B) the place of business described in Subsection (2)(a)(i) of the related seller or an in
82     state employee of the related seller is used to advertise, promote, or facilitate sales by the seller
83     to a purchaser.
84          (c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the
85     criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit
86     the sales and use taxes imposed by this chapter under Subsection (2)(b) shall pay or collect and
87     remit the sales and use tax imposed by this chapter if the seller:
88          (i) sells tangible personal property, products transferred electronically, or services for
89     storage, use, or consumption in the state; and

90          (ii) in either the previous calendar year or the current calendar year[: (A)], receives
91     gross revenue from the sale of tangible personal property, products transferred electronically, or
92     services for storage, use, or consumption in the state of more than $100,000[; or].
93          [(B) sells tangible personal property, products transferred electronically, or services for
94     storage, use, or consumption in the state in 200 or more separate transactions.]
95          (d) A seller that does not meet one or more of the criteria provided for in Subsection
96     (2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection
97     (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
98          (i) collect a tax on a transaction described in Subsection 59-12-103(1); and
99          (ii) remit the tax to the commission as provided in this part.
100          (e) The collection and remittance of a tax under this chapter by a seller that is
101     registered under the agreement may not be used as a factor in determining whether that seller is
102     required by this Subsection (2) to:
103          (i) pay a tax, fee, or charge under:
104          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
105          (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
106          (C) Section 19-6-714;
107          (D) Section 19-6-805;
108          (E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
109     or
110          (F) this title; or
111          (ii) collect and remit a tax, fee, or charge under:
112          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
113          (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
114          (C) Section 19-6-714;
115          (D) Section 19-6-805;
116          (E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
117     or
118          (F) this title.
119          (f) A person shall pay a use tax imposed by this chapter on a transaction described in
120     Subsection 59-12-103(1) if:

121          (i) the seller did not collect a tax imposed by this chapter on the transaction; and
122          (ii) the person:
123          (A) stores the tangible personal property or product transferred electronically in the
124     state;
125          (B) uses the tangible personal property or product transferred electronically in the state;
126     or
127          (C) consumes the tangible personal property or product transferred electronically in the
128     state.
129          (g) The ownership of property that is located at the premises of a printer's facility with
130     which the retailer has contracted for printing and that consists of the final printed product,
131     property that becomes a part of the final printed product, or copy from which the printed
132     product is produced, shall not result in the retailer being considered to have or maintain an
133     office, distribution house, sales house, warehouse, service enterprise, or other place of
134     business, or to maintain a stock of goods, within this state.
135          (3) (a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this
136     chapter from a purchaser.
137          (b) A seller may not collect as tax an amount, without regard to fractional parts of one
138     cent, in excess of the tax computed at the rates prescribed by this chapter.
139          (c) (i) Each seller shall:
140          (A) give the purchaser a receipt for the tax collected; or
141          (B) bill the tax as a separate item and declare the name of this state and the seller's
142     sales and use tax license number on the invoice for the sale.
143          (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
144     and relieves the purchaser of the liability for reporting the tax to the commission as a
145     consumer.
146          (d) A seller is not required to maintain a separate account for the tax collected, but is
147     considered to be a person charged with receipt, safekeeping, and transfer of public money.
148          (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
149     benefit of the state and for payment to the commission in the manner and at the time provided
150     for in this chapter.
151          (f) If any seller, during any reporting period, collects as a tax an amount in excess of

152     the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
153     shall remit to the commission the full amount of the tax imposed under this chapter, plus any
154     excess.
155          (g) If the accounting methods regularly employed by the seller in the transaction of the
156     seller's business are such that reports of sales made during a calendar month or quarterly period
157     will impose unnecessary hardships, the commission may accept reports at intervals that, in the
158     commission's opinion, will better suit the convenience of the taxpayer or seller and will not
159     jeopardize collection of the tax.
160          (h) (i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
161     and until such time as the commission accepts specie legal tender for the payment of a tax
162     under this chapter, if the commission requires a seller to remit a tax under this chapter in legal
163     tender other than specie legal tender, the seller shall state on the seller's books and records and
164     on an invoice, bill of sale, or similar document provided to the purchaser:
165          (A) the purchase price in specie legal tender and in the legal tender the seller is
166     required to remit to the commission;
167          (B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie
168     legal tender and in the legal tender the seller is required to remit to the commission;
169          (C) the tax rate under this chapter applicable to the purchase; and
170          (D) the date of the purchase.
171          (ii) (A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of
172     tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the
173     specie legal tender the purchaser paid.
174          (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
175     commission may make rules for determining the amount of tax due under Subsection (3)(h)(i)
176     if the London fixing price is not available for a particular day.
177          (4) (a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
178     sales or use tax imposed by this chapter is due and payable to the commission quarterly on or
179     before the last day of the month next succeeding each quarterly calendar period.
180          (b) (i) Each seller shall, on or before the last day of the month next succeeding each
181     quarterly calendar period, file with the commission a return for the preceding quarterly period.
182          (ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the

183     tax required under this chapter to be collected or paid for the period covered by the return.
184          (c) Except as provided in Subsection (5)(c), a return shall contain information and be in
185     a form the commission prescribes by rule.
186          (d) (i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
187     based on the total nonexempt sales made during the period for which the return is filed,
188     including both cash and charge sales.
189          (ii) For a sale that includes the delivery or installation of tangible personal property at a
190     location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery
191     or installation is separately stated on an invoice or receipt, a seller may compute the tax due on
192     the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that
193     sale during each period for which the seller receives payment for the sale.
194          (e) (i) The use tax as computed in the return shall be based on the total amount of
195     purchases for storage, use, or other consumption in this state made during the period for which
196     the return is filed, including both cash and charge purchases.
197          (ii) (A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser
198     that is required to remit taxes under this chapter, but is not required to remit taxes monthly in
199     accordance with Section 59-12-108, and that converts tangible personal property into real
200     property.
201          (B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the
202     taxes due under this chapter on tangible personal property for which the qualifying purchaser
203     claims an exemption as allowed under Subsection 59-12-104(23) or (25) based on the period in
204     which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C),
205     for the conversion of the tangible personal property into real property.
206          (C) A qualifying purchaser remitting taxes due under this chapter in accordance with
207     Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the
208     qualifying purchaser's purchase of the tangible personal property that was converted into real
209     property multiplied by a fraction, the numerator of which is the payment received in the period
210     for the qualifying purchaser's sale of the tangible personal property that was converted into real
211     property and the denominator of which is the entire sales price for the qualifying purchaser's
212     sale of the tangible personal property that was converted into real property.
213          (D) A qualifying purchaser may remit taxes due under this chapter in accordance with

214     this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in
215     the qualifying purchaser's regular course of business identify by reasonable and verifiable
216     standards that the tangible personal property was converted into real property.
217          (f) (i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
218     Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
219     returns and paying the taxes.
220          (ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
221          (g) The commission may require returns and payment of the tax to be made for other
222     than quarterly periods if the commission considers it necessary in order to ensure the payment
223     of the tax imposed by this chapter.
224          (h) (i) The commission may require a seller that files a simplified electronic return with
225     the commission to file an additional electronic report with the commission.
226          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
227     commission may make rules providing:
228          (A) the information required to be included in the additional electronic report described
229     in Subsection (4)(h)(i); and
230          (B) one or more due dates for filing the additional electronic report described in
231     Subsection (4)(h)(i).
232          (5) (a) As used in this Subsection (5) and Subsection (6)(b), " voluntary seller" means a
233     seller that is:
234          (i) registered under the agreement;
235          (ii) described in Subsection (2)(d); and
236          (iii) not a:
237          (A) model 1 seller;
238          (B) model 2 seller; or
239          (C) model 3 seller.
240          (b) (i) Except as provided in Subsection (5)(b)(ii), a tax a voluntary seller collects in
241     accordance with Subsection (2)(d) is due and payable:
242          (A) to the commission;
243          (B) annually; and
244          (C) on or before the last day of the month immediately following the last day of each

245     calendar year.
246          (ii) The commission may require that a tax a voluntary seller collects in accordance
247     with Subsection (2)(d) be due and payable:
248          (A) to the commission; and
249          (B) on the last day of the month immediately following any month in which the seller
250     accumulates a total of at least $1,000 in agreement sales and use tax.
251          (c) (i) If a voluntary seller remits a tax to the commission in accordance with
252     Subsection (5)(b), the voluntary seller shall file a return:
253          (A) with the commission;
254          (B) with respect to the tax;
255          (C) containing information prescribed by the commission; and
256          (D) on a form prescribed by the commission.
257          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
258     commission shall make rules prescribing:
259          (A) the information required to be contained in a return described in Subsection
260     (5)(c)(i); and
261          (B) the form described in Subsection (5)(c)(i)(D).
262          (d) A tax a voluntary seller collects in accordance with this Subsection (5) shall be
263     calculated on the basis of the total amount of taxable transactions under Subsection
264     59-12-103(1) the voluntary seller completes, including:
265          (i) a cash transaction; and
266          (ii) a charge transaction.
267          (6) (a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
268     electronic return collects in accordance with this chapter is due and payable:
269          (i) monthly on or before the last day of the month immediately following the month for
270     which the seller collects a tax under this chapter; and
271          (ii) for the month for which the seller collects a tax under this chapter.
272          (b) A tax a voluntary seller that files a simplified electronic return collects in
273     accordance with this chapter is due and payable as provided in Subsection (5).
274          (7) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
275     purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to

276     titling or registration under the laws of this state.
277          (b) The commission shall collect the tax described in Subsection (7)(a) when the
278     vehicle is titled or registered.
279          (8) If any sale of tangible personal property or any other taxable transaction under
280     Subsection 59-12-103(1), is made by a wholesaler to a retailer:
281          (a) the wholesaler is not responsible for the collection or payment of the tax imposed
282     on the sale; and
283          (b) the retailer is responsible for the collection or payment of the tax imposed on the
284     sale if:
285          (i) the retailer represents that the tangible personal property, product transferred
286     electronically, or service is purchased by the retailer for resale; and
287          (ii) the tangible personal property, product transferred electronically, or service is not
288     subsequently resold.
289          (9) If any sale of property or service subject to the tax is made to a person prepaying
290     sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
291     contractor or subcontractor of that person:
292          (a) the person to whom such payment or consideration is payable is not responsible for
293     the collection or payment of the sales or use tax; and
294          (b) the person prepaying the sales or use tax is responsible for the collection or
295     payment of the sales or use tax if the person prepaying the sales or use tax represents that the
296     amount prepaid as sales or use tax has not been fully credited against sales or use tax due and
297     payable under the rules promulgated by the commission.
298          (10) (a) For purposes of this Subsection (10):
299          (i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that term
300     is defined in Section 166, Internal Revenue Code.
301          (ii) "Bad debt" does not include:
302          (A) an amount included in the purchase price of tangible personal property, a product
303     transferred electronically, or a service that is:
304          (I) not a transaction described in Subsection 59-12-103(1); or
305          (II) exempt under Section 59-12-104;
306          (B) a financing charge;

307          (C) interest;
308          (D) a tax imposed under this chapter on the purchase price of tangible personal
309     property, a product transferred electronically, or a service;
310          (E) an uncollectible amount on tangible personal property or a product transferred
311     electronically that:
312          (I) is subject to a tax under this chapter; and
313          (II) remains in the possession of a seller until the full purchase price is paid;
314          (F) an expense incurred in attempting to collect any debt; or
315          (G) an amount that a seller does not collect on repossessed property.
316          (b) (i) To the extent an amount remitted in accordance with Subsection (4)(d) later
317     becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax
318     under this chapter is calculated on a return.
319          (ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the
320     total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on
321     the qualifying purchaser's purchase of tangible personal property converted into real property to
322     the extent that:
323          (A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal
324     property converted into real property;
325          (B) the qualifying purchaser's sale of that tangible personal property converted into real
326     property later becomes bad debt; and
327          (C) the books and records that the qualifying purchaser keeps in the qualifying
328     purchaser's regular course of business identify by reasonable and verifiable standards that the
329     tangible personal property was converted into real property.
330          (c) A seller may file a refund claim with the commission if:
331          (i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
332     the amount of the seller's sales that are subject to a tax under this chapter for that same time
333     period; and
334          (ii) as provided in Section 59-1-1410.
335          (d) A bad debt deduction under this section may not include interest.
336          (e) A bad debt may be deducted under this Subsection (10) on a return for the time
337     period during which the bad debt:

338          (i) is written off as uncollectible in the seller's books and records; and
339          (ii) would be eligible for a bad debt deduction:
340          (A) for federal income tax purposes; and
341          (B) if the seller were required to file a federal income tax return.
342          (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
343     claims a refund under this Subsection (10), the seller shall report and remit a tax under this
344     chapter:
345          (i) on the portion of the bad debt the seller recovers; and
346          (ii) on a return filed for the time period for which the portion of the bad debt is
347     recovered.
348          (g) For purposes of reporting a recovery of a portion of bad debt under Subsection
349     (10)(f), a seller shall apply amounts received on the bad debt in the following order:
350          (i) in a proportional amount:
351          (A) to the purchase price of the tangible personal property, product transferred
352     electronically, or service; and
353          (B) to the tax due under this chapter on the tangible personal property, product
354     transferred electronically, or service; and
355          (ii) to:
356          (A) interest charges;
357          (B) service charges; and
358          (C) other charges.
359          (h) A seller's certified service provider may make a deduction or claim a refund for bad
360     debt on behalf of the seller:
361          (i) in accordance with this Subsection (10); and
362          (ii) if the certified service provider credits or refunds the entire amount of the bad debt
363     deduction or refund to the seller.
364          (i) A seller may allocate bad debt among the states that are members of the agreement
365     if the seller's books and records support that allocation.
366          (11) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
367     amount of tax required by this chapter.
368          (b) A violation of this section is punishable as provided in Section 59-1-401.

369          (c) Each person that fails to pay any tax to the state or any amount of tax required to be
370     paid to the state, except amounts determined to be due by the commission under Chapter 1,
371     Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111, within the time
372     required by this chapter, or that fails to file any return as required by this chapter, shall pay, in
373     addition to the tax, penalties and interest as provided in Sections 59-1-401 and 59-1-402.
374          (d) For purposes of prosecution under this section, each quarterly tax period in which a
375     seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
376     tax required to be remitted constitutes a separate offense.
377          Section 2. Section 59-12-107.6 is amended to read:
378          59-12-107.6. Marketplace facilitator collection, remittance, and payment of sales
379     tax obligation -- Marketplace seller collection, remittance, and payment of sales tax
380     obligation -- Liability for collection.
381          (1) A marketplace facilitator shall pay or collect and remit taxes imposed by this
382     chapter in accordance with Section 59-12-107:
383          (a) if the marketplace facilitator meets one or more of the criteria provided for in
384     Subsection 59-12-107(2)(a) or (b); and
385          (b) on the sales the marketplace facilitator made on the marketplace facilitator's own
386     behalf.
387          (2) (a) A marketplace facilitator shall pay or collect and remit taxes imposed by this
388     chapter in accordance with Subsection (3) if the marketplace facilitator, in the previous
389     calendar year or the current calendar year, makes sales of tangible personal property, products
390     transferred electronically, or services on the marketplace facilitator's own behalf or facilitates
391     sales on behalf of one or more marketplace sellers[: (i)] that exceed $100,000[; or].
392          [(ii) in 200 or more separate transactions.]
393          (b) For purposes of determining if a marketplace facilitator [meets or exceeds one or
394     both thresholds] exceeds the threshold described in this Subsection (2), a marketplace
395     facilitator shall separately total:
396          (i) the marketplace facilitator's sales; and
397          (ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
398          (c) A marketplace facilitator without a physical presence in this state shall begin
399     collecting and remitting the taxes imposed by this chapter no later than the first day of the

400     calendar quarter that is at least 60 days after the day on which the marketplace facilitator
401     [meets or exceeds either] exceeds the threshold described in Subsection (2)(a).
402          (3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit
403     taxes imposed by this chapter for each sale that the marketplace facilitator:
404          (a) makes on the marketplace facilitator's own behalf; or
405          (b) makes or facilitates on behalf of a marketplace seller, regardless of:
406          (i) whether the marketplace seller has an obligation to pay or collect and remit taxes
407     under Section 59-12-107;
408          (ii) whether the marketplace seller would have been required to pay or collect and
409     remit taxes under Section 59-12-107 if the marketplace facilitator had not facilitated the sale;
410     or
411          (iii) the amount of the sales price or the purchase price that accrues to or benefits the
412     marketplace facilitator, the marketplace seller, or any other person.
413          (4) A marketplace facilitator shall comply with the procedures and requirements in this
414     chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect and
415     remit taxes except that the marketplace facilitator shall segregate, in the marketplace
416     facilitator's books and records:
417          (a) the sales that the marketplace facilitator makes on the marketplace facilitator's own
418     behalf; and
419          (b) the sales that the marketplace facilitator makes or facilitates on behalf of one or
420     more marketplace sellers.
421          (5) (a) The commission may audit the marketplace facilitator for sales made or
422     facilitated through the marketplace facilitator's marketplace on behalf of one or more
423     marketplace sellers.
424          (b) The commission may not audit the marketplace seller for sales made or facilitated
425     through the marketplace facilitator's marketplace on the marketplace seller's behalf.
426          (6) Nothing in this section prohibits a marketplace facilitator from providing in a
427     marketplace facilitator's agreement with a marketplace seller for the recovery of taxes, and any
428     related interest or penalties to the extent that a tax, interest, or penalty is assessed by the state in
429     an audit of the marketplace facilitator on a retail sale:
430          (a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller;

431     and
432          (b) for which the marketplace facilitator relied on incorrect or incomplete information
433     provided by the marketplace seller.
434          [(7) (a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for
435     failing to collect the taxes under this chapter for a sale on which the marketplace facilitator
436     failed to collect taxes if the marketplace facilitator demonstrates, to the satisfaction of the
437     commission, that:]
438          [(i) the marketplace facilitator made or facilitated the sale through the marketplace
439     facilitator's marketplace on or before December 31, 2022;]
440          [(ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace
441     seller and not on behalf of the marketplace facilitator;]
442          [(iii) the marketplace facilitator and the marketplace seller are not affiliates; and]
443          [(iv) the failure to collect taxes was due to a good faith error other than an error in
444     sourcing.]
445          [(b) For purposes of Subsection (7)(a):]
446          [(i) for sales made or facilitated during the 2019 or 2020 calendar year, the marketplace
447     facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
448     is equal to the error rate, but not to exceed a 7% error rate;]
449          [(ii) for sales made or facilitated during the 2021 calendar year, the marketplace
450     facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
451     is equal to the error rate, but not to exceed a 5% error rate; and]
452          [(iii) for sales made or facilitated during the 2022 calendar year, the marketplace
453     facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
454     is equal to the error rate, but not to exceed a 3% error rate.]
455          [(c) The commission shall calculate the percentages described in Subsection (7)(b):]
456          [(i) using the total taxes due on sales that:]
457          [(A) a marketplace facilitator made or facilitated in this state on behalf of one or more
458     marketplace sellers during the calendar year that the sale for which the marketplace facilitator
459     seeks relief was made or facilitated; and]
460          [(B) are sourced to the state; and]
461          [(ii) not including sales that the marketplace facilitator or the marketplace facilitator's

462     affiliates directly made during the same calendar year.]
463          [(8)] (7) A marketplace seller shall pay or collect and remit taxes imposed by this
464     chapter for a sale of tangible personal property, a product transferred electronically, or a service
465     that the marketplace seller makes other than through a marketplace facilitator if:
466          (a) the sale is sourced to this state; and
467          (b) the marketplace seller's sales in this state, other than through a marketplace
468     facilitator, in the previous calendar year or the current calendar year[: (i)] exceed $100,000[;
469     or].
470          [(ii) occur in 200 or more separate transactions.]
471          [(9)] (8) (a) A marketplace seller may not pay or collect and remit taxes imposed by
472     this chapter for any sale for which a marketplace facilitator is required to pay or collect and
473     remit.
474          (b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or
475     collect and remit, or the marketplace facilitator's underpayment of, taxes imposed by this
476     chapter for any sale for which a marketplace facilitator is required to pay or collect and remit
477     the taxes imposed by this chapter.
478          [(10)] (9) (a) A purchaser of tangible personal property, a product transferred
479     electronically, or a service may file a claim for a refund with the marketplace facilitator if the
480     purchaser overpaid taxes imposed under this chapter.
481          (b) No person may bring a class action against a marketplace facilitator in any court of
482     the state on behalf of purchasers arising from or in any way related to an overpayment of taxes
483     collected and remitted on sales made or facilitated by the marketplace facilitator on behalf of a
484     marketplace seller, regardless of whether such claim is characterized as a tax refund claim.
485          [(11)] (10) Nothing in this section affects the obligation of a purchaser to remit the use
486     tax described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator or
487     marketplace seller failed to collect and remit a tax imposed by this chapter.
488          Section 3. Effective date.
489          This bill takes effect on July 1, 2024.