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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to local option sales and use taxes.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ allows certain local governments to impose a sales and use tax for purposes of
14 funding emergency services;
15 ▸ establishes requirements for a local government to impose the tax, dependent on the
16 rate imposed;
17 ▸ addresses the administration, collection, and distribution of tax revenue;
18 ▸ allows the State Tax Commission to retain an administrative charge from collected
19 tax revenue;
20 ▸ repeals provisions allowing certain counties to impose a rural county health care
21 facilities tax to fund emergency medical services; 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 17D-1-103, as last amended by Laws of Utah 2023, Chapter 15
30 59-12-801 (Superseded 07/01/24), as last amended by Laws of Utah 2023, Chapters
31 92, 329
32 59-12-801 (Effective 07/01/24), as last amended by Laws of Utah 2023, Chapters 92,
33 310 and 329
34 59-12-802, as last amended by Laws of Utah 2023, Chapters 92, 471
35 ENACTS:
36 59-12-2401, Utah Code Annotated 1953
37 59-12-2402, Utah Code Annotated 1953
38 59-12-2403, Utah Code Annotated 1953
39 59-12-2404, Utah Code Annotated 1953
40 59-12-2405, Utah Code Annotated 1953
41 59-12-2406, Utah Code Annotated 1953
42
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 17D-1-103 is amended to read:
45 17D-1-103. Special service district status, powers, and duties -- Registration as a
46 limited purpose entity -- Limitation on districts providing jail service.
47 (1) A special service district:
48 (a) is:
49 (i) a body corporate and politic with perpetual succession, separate and distinct from
50 the county or municipality that creates it;
51 (ii) a quasi-municipal corporation; and
52 (iii) a political subdivision of the state; and
53 (b) may sue and be sued.
54 (2) A special service district may:
55 (a) exercise the power of eminent domain possessed by the county or municipality that
56 creates the special service district;
57 (b) enter into a contract that the governing authority considers desirable to carry out
58 special service district functions, including a contract:
59 (i) with the United States or an agency of the United States, the state, an institution of
60 higher education, a county, a municipality, a school district, a special district, another special
61 service district, or any other political subdivision of the state; or
62 (ii) that includes provisions concerning the use, operation, and maintenance of special
63 service district facilities and the collection of fees or charges with respect to commodities,
64 services, or facilities that the district provides;
65 (c) acquire or construct facilities;
66 (d) acquire real or personal property, or an interest in real or personal property,
67 including water and water rights, whether by purchase, lease, gift, devise, bequest, or
68 otherwise, and whether the property is located inside or outside the special service district, and
69 own, hold, improve, use, finance, or otherwise deal in and with the property or property right;
70 (e) sell, convey, lease, exchange, transfer, or otherwise dispose of all or any part of the
71 special service district's property or assets, including water and water rights;
72 (f) mortgage, pledge, or otherwise encumber all or any part of the special service
73 district's property or assets, including water and water rights;
74 (g) enter into a contract with respect to the use, operation, or maintenance of all or any
75 part of the special service district's property or assets, including water and water rights;
76 (h) accept a government grant or loan and comply with the conditions of the grant or
77 loan;
78 (i) use an officer, employee, property, equipment, office, or facility of the county or
79 municipality that created the special service district, subject to reimbursement as provided in
80 Subsection (4);
81 (j) employ one or more officers, employees, or agents, including one or more
82 engineers, accountants, attorneys, or financial consultants, and establish their compensation;
83 (k) designate an assessment area and levy an assessment as provided in Title 11,
84 Chapter 42, Assessment Area Act;
85 (l) contract with a franchised, certificated public utility for the construction and
86 operation of an electrical service distribution system within the special service district;
87 (m) borrow money and incur indebtedness;
88 (n) as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of
89 acquiring, constructing, and equipping any of the facilities required for the services the special
90 service district is authorized to provide, including:
91 (i) bonds payable in whole or in part from taxes levied on the taxable property in the
92 special service district;
93 (ii) bonds payable from revenues derived from the operation of revenue-producing
94 facilities of the special service district;
95 (iii) bonds payable from both taxes and revenues;
96 (iv) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
97 property in the special service district;
98 (v) tax anticipation notes;
99 (vi) bond anticipation notes;
100 (vii) refunding bonds;
101 (viii) special assessment bonds; and
102 (ix) bonds payable in whole or in part from mineral lease payments as provided in
103 Section 11-14-308;
104 (o) except as provided in Subsection (5), impose fees or charges or both for
105 commodities, services, or facilities that the special service district provides;
106 (p) provide to an area outside the special service district's boundary, whether inside or
107 outside the state, a service that the special service district is authorized to provide within its
108 boundary, if the governing body makes a finding that there is a public benefit to providing the
109 service to the area outside the special service district's boundary;
110 (q) provide other services that the governing body determines will more effectively
111 carry out the purposes of the special service district; [
112 (r) adopt an official seal for the special service district[
113 (s) if authorized, impose an emergency services tax under Title 59, Chapter 12, Part 24,
114 Emergency Services Tax.
115 (3) (a) Each special service district shall register and maintain the special service
116 district's registration as a limited purpose entity, in accordance with Section 67-1a-15.
117 (b) A special service district that fails to comply with Subsection (3)(a) or Section
118 67-1a-15 is subject to enforcement by the state auditor, in accordance with Section 67-3-1.
119 (4) Each special service district that uses an officer, employee, property, equipment,
120 office, or facility of the county or municipality that created the special service district shall
121 reimburse the county or municipality a reasonable amount for what the special service district
122 uses.
123 (5) (a) A special service district that provides jail service as provided in Subsection
124 17D-1-201(10) may not impose a fee or charge for the service it provides.
125 (b) Subsection (5)(a) may not be construed to limit a special service district that
126 provides jail service from:
127 (i) entering into a contract with the federal government, the state, or a political
128 subdivision of the state to provide jail service for compensation; or
129 (ii) receiving compensation for jail service it provides under a contract described in
130 Subsection (5)(b)(i).
131 Section 2. Section 59-12-801 (Superseded 07/01/24) is amended to read:
132 59-12-801 (Superseded 07/01/24). Definitions.
133 As used in this part:
134 [
135
136 [
137 Section 26B-4-101.
138 [
139 42 U.S.C. Sec. 1395x.
140 [
141 health care service:
142 (a) on an as-needed basis, without an appointment;
143 (b) to the public;
144 (c) for the diagnosis and treatment of a medical condition if that medical condition
145 does not require hospitalization or emergency intervention for a life threatening or potentially
146 permanently disabling condition; and
147 (d) including one or more of the following services:
148 (i) a medical history physical examination;
149 (ii) an assessment of health status; or
150 (iii) treatment:
151 (A) for a variety of medical conditions; and
152 (B) that is commonly offered in a physician's office.
153 [
154 [
155 26B-2-201.
156 [
157
158 [
159 third, fourth, fifth, or sixth class county.
160 [
161 (a) rural county hospital; or
162 (b) rural county nursing care facility.
163 [
164 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
165 (b) located outside of a standard metropolitan statistical area, as designated by the
166 United States Bureau of the Census.
167 [
168 (a) a county that is:
169 (i) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
170 (ii) located outside of a standard metropolitan statistical area, as designated by the
171 United States Census Bureau; or
172 (b) a special service district if the special service district is:
173 (i) created for the purpose of operating the nursing care facility; and
174 (ii) within a county that is:
175 (A) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
176 (B) located outside of a standard metropolitan statistical area, as designated by the
177 United States Census Bureau.
178 [
179 are provided by a county that is:
180 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
181 (b) located outside of a standard metropolitan statistical area, as designated by the
182 United States Census Bureau.
183 [
184 Sec. 1395x.
185 Section 3. Section 59-12-801 (Effective 07/01/24) is amended to read:
186 59-12-801 (Effective 07/01/24). Definitions.
187 As used in this part:
188 [
189
190 [
191 Section 53-2d-101.
192 [
193 42 U.S.C. Sec. 1395x.
194 [
195 health care service:
196 (a) on an as-needed basis, without an appointment;
197 (b) to the public;
198 (c) for the diagnosis and treatment of a medical condition if that medical condition
199 does not require hospitalization or emergency intervention for a life threatening or potentially
200 permanently disabling condition; and
201 (d) including one or more of the following services:
202 (i) a medical history physical examination;
203 (ii) an assessment of health status; or
204 (iii) treatment:
205 (A) for a variety of medical conditions; and
206 (B) that is commonly offered in a physician's office.
207 [
208 [
209 26B-2-201.
210 [
211
212 [
213 third, fourth, fifth, or sixth class county.
214 [
215 (a) rural county hospital; or
216 (b) rural county nursing care facility.
217 [
218 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
219 (b) located outside of a standard metropolitan statistical area, as designated by the
220 United States Bureau of the Census.
221 [
222 (a) a county that is:
223 (i) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
224 (ii) located outside of a standard metropolitan statistical area, as designated by the
225 United States Census Bureau; or
226 (b) a special service district if the special service district is:
227 (i) created for the purpose of operating the nursing care facility; and
228 (ii) within a county that is:
229 (A) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
230 (B) located outside of a standard metropolitan statistical area, as designated by the
231 United States Census Bureau.
232 [
233 are provided by a county that is:
234 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
235 (b) located outside of a standard metropolitan statistical area, as designated by the
236 United States Census Bureau.
237 [
238 Sec. 1395x.
239 Section 4. Section 59-12-802 is amended to read:
240 59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
241 tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
242 Administrative charge.
243 (1) (a) A county legislative body of [
244 fourth, fifth, or sixth class may impose a sales and use tax of up to 1% on the transactions
245 described in Subsection 59-12-103(1) located within the county[
246 [
247 [
248 [
249 [
250 (b) Subject to Subsection (3), the money collected from a tax under this section may be
251 used to fund:
252 [
253 [
254 [
255 [
256 [
257 [
258 [
259 [
260
261 (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
262 under this section on:
263 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
264 are exempt from taxation under Section 59-12-104;
265 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
266 a city that imposes a tax under Section 59-12-804; and
267 (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
268 food ingredients.
269 (d) For purposes of this Subsection (1), the location of a transaction shall be
270 determined in accordance with Sections 59-12-211 through 59-12-215.
271 (e) A county legislative body imposing a tax under this section shall impose the tax on
272 the purchase price or sales price for amounts paid or charged for food and food ingredients if
273 the food and food ingredients are sold as part of a bundled transaction attributable to food and
274 food ingredients and tangible personal property other than food and food ingredients.
275 (2) (a) [
276 Subsection (1), a county legislative body shall obtain approval to impose the tax from a
277 majority of the:
278 (i) members of the county's legislative body; and
279 (ii) county's registered voters voting on the imposition of the tax.
280 (b) The county legislative body shall conduct the election according to the procedures
281 and requirements of Title 11, Chapter 14, Local Government Bonding Act.
282 (3) The money collected from a tax imposed under Subsection (1) may only be used to
283 fund:
284 [
285 [
286 Subsection [
287 [
288 [
289 [
290 facility described in Subsection [
291 [
292 [
293
294 [
295
296 [
297 [
298 [
299
300
301 [
302 [
303
304
305 [
306
307 [
308
309
310 [
311
312
313
314 [
315 (i) except as provided in Subsection [
316 enforced in accordance with:
317 (A) the same procedures used to administer, collect, and enforce the tax under:
318 (I) Part 1, Tax Collection; or
319 (II) Part 2, Local Sales and Use Tax Act; and
320 (B) Chapter 1, General Taxation Policies; and
321 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
322 period by the county legislative body as provided in Subsection (1).
323 (b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
324 (c) A county legislative body shall distribute money collected from a tax under this
325 section quarterly.
326 [
327 accordance with Section 59-1-306 from the revenue the commission collects from a tax under
328 this section.
329 Section 5. Section 59-12-2401 is enacted to read:
330
331 59-12-2401. Definitions.
332 As used in this part:
333 (1) "Emergency services" means:
334 (a) emergency medical services as defined in Section 53-2d-101;
335 (b) fire protection services; or
336 (c) a combination of emergency medical services, as defined in Section 53-2d-101, and
337 fire protection services.
338 (2) "Emergency services tax" means the sales and use tax authorized under Section
339 59-12-2402.
340 (3) "Governing body" means:
341 (a) for a county, city, or town, the legislative body of the county, city, or town; or
342 (b) for a special service district:
343 (i) the legislative body of the county, city, or town that established the special service
344 district, if no administrative control board has been created under Section 17D-1-301; or
345 (ii) the administrative control board of the special service district, if an administrative
346 control board has been created under Section 17D-1-301.
347 (4) "Qualifying political subdivision" means:
348 (a) a specified county;
349 (b) a special service district established under Title 17D, Chapter 1, Special Service
350 District Act, to provide emergency services within a specified county; or
351 (c) a city or town that:
352 (i) is located:
353 (A) within a specified county; and
354 (B) outside the boundaries of a special service district described in Subsection (4)(b);
355 and
356 (ii) provides, or contracts with a special service district described in Subsection (4)(b)
357 to receive, emergency services within the city or town.
358 (5) "Specified county" means a county of the second class that contains a national park
359 and two or more state parks within or partially within the county's boundaries.
360 Section 6. Section 59-12-2402 is enacted to read:
361 59-12-2402. Imposition of emergency services tax -- Permitted rates --
362 Expenditure and distribution of tax revenue -- Administration, collection, and
363 enforcement of tax -- Administrative charge.
364 (1) (a) Beginning July 1, 2024, the governing body of a qualifying political subdivision
365 may, subject to Subsection (1)(b), impose a sales and use tax on the transactions described in
366 Subsection 59-12-103(1) in the following amount:
367 (i) an amount of up to .33% if the governing body:
368 (A) first holds a public hearing at which the tax is discussed, subject to Subsection (2);
369 and
370 (B) after the public hearing is held, passes an ordinance or resolution approving the
371 tax; or
372 (ii) an amount of up to 1% if the governing body obtains approval to impose the tax
373 from a majority of:
374 (A) the members of the governing body; and
375 (B) voters within the qualifying political subdivision voting in an election held for that
376 purpose in accordance with Title 11, Chapter 14, Local Government Bonding Act.
377 (b) (i) A tax imposed by a county under Subsection (1)(a) shall be imposed within all
378 unincorporated areas of the county.
379 (ii) A tax imposed by a special service district under Subsection (1)(a) shall be
380 imposed within the boundaries of each city and town located within the area of the special
381 service district.
382 (iii) A tax may not be imposed under this section within:
383 (A) a portion of a city, town, or the unincorporated area of a county; or
384 (B) an area in which a tax under this section has already been imposed.
385 (c) Notwithstanding Subsection (1)(a), a qualifying political subdivision may not
386 impose a tax under this section on:
387 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
388 are exempt from taxation under Section 59-12-104; and
389 (ii) except as provided in Subsection (1)(e), amounts paid or charged for food and food
390 ingredients.
391 (d) For purposes of this Subsection (1), the location of a transaction shall be
392 determined in accordance with Sections 59-12-211 through 59-12-215.
393 (e) A qualifying political subdivision that imposes a tax under this section shall impose
394 the tax on the purchase price or sales price for amounts paid or charged for food and food
395 ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
396 to food and food ingredients and tangible personal property other than food and food
397 ingredients.
398 (2) (a) The governing body of a qualifying political subdivision proposing a tax rate
399 described in Subsection (1)(a)(i) shall, as a class A notice under Section 63G-30-102, publish
400 notice of the public hearing required by Subsection (1)(a)(i)(A) for at least 14 days before the
401 day of the public hearing.
402 (b) The notice described in Subsection (2)(a) shall:
403 (i) state the governing body's intent to adopt a tax under this section;
404 (ii) describe the proposed tax rate;
405 (iii) specify the date, time, and location of the public hearing; and
406 (iv) state that the purpose of the public hearing is to obtain public comments regarding
407 the proposed tax.
408 (3) For a county proposing a tax rate described in Subsection (1)(a)(ii), the voter
409 approval requirement in Subsection (1)(a)(ii)(B) applies only to voters residing within the
410 unincorporated areas of the county.
411 (4) (a) Subject to Subsection (4)(b), a qualifying political subdivision may use money
412 collected from a tax imposed under this section to fund emergency services provided by, or on
413 behalf of, a qualifying political subdivision.
414 (b) A qualifying political subdivision that imposes a tax under this section may:
415 (i) use money collected from the tax to fund emergency services within an area in
416 which the tax is not imposed; and
417 (ii) enter into an agreement authorized by Title 11, Chapter 13, Interlocal Cooperation
418 Act, allowing for another qualifying political subdivision to use money collected from the tax
419 to fund emergency services.
420 (5) (a) Except as provided in Subsection (5)(b), a tax under this section shall be
421 administered, collected, and enforced in accordance with the same procedures used to
422 administer, collect, and enforce the tax under:
423 (i) (A) Part 1, Tax Collection; or
424 (B) Part 2, Local Sales and Use Tax Act; and
425 (ii) Chapter 1, General Taxation Policies.
426 (b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
427 (c) A tax under this section shall be levied for a period of 10 years and may be
428 reauthorized at the end of the 10-year period by the governing body that imposed the tax as
429 provided in Subsection (1).
430 (d) Except as provided in Subsection (5)(e), the commission shall distribute the
431 revenue the commission collects from a tax imposed under this section directly to the
432 qualifying political subdivision imposing the tax.
433 (e) The commission shall retain and deposit an administrative charge in accordance
434 with Section 59-1-306 from the revenue the commission collects from a tax under this section.
435 Section 7. Section 59-12-2403 is enacted to read:
436 59-12-2403. Enactment, repeal, or change in the rate of an emergency services tax
437 -- Annexation -- Notice.
438 (1) (a) Except as provided in Subsection (2), if a qualifying political subdivision enacts
439 or repeals an emergency services tax or changes the rate of an emergency services tax, the
440 enactment, repeal, or change shall take effect:
441 (i) on the first day of a calendar quarter; and
442 (ii) after a 90-day period beginning on the date the commission receives notice that
443 meets the requirements of Subsection (1)(b) from the qualifying political subdivision.
444 (b) The notice described in Subsection (1)(a)(ii) shall state:
445 (i) that the qualifying political subdivision will enact, repeal, or change the rate of an
446 emergency services tax;
447 (ii) the statutory authority for the emergency services tax;
448 (iii) the effective date of the enactment, repeal, or change in the rate of the emergency
449 services tax; and
450 (iv) if the county enacts or changes the rate of the emergency services tax, the rate of
451 the emergency services tax.
452 (2) (a) If the billing period for a transaction begins before the effective date of the
453 enactment of an emergency services tax or the increase in the rate of an emergency services
454 tax, the enactment of the tax or the tax rate increase shall take effect on the first day of the first
455 billing period that begins after the effective date of the enactment of the tax or the tax rate
456 increase.
457 (b) If the billing period for a transaction begins before the effective date of the repeal of
458 an emergency services tax or the decrease in the rate of an emergency services tax, the repeal of
459 the tax or the tax rate decrease shall take effect on the first day of the last billing period that
460 began before the effective date of the repeal of the tax or the tax rate decrease.
461 (c) If a tax due under this part on a catalogue sale is computed on the basis of sales and
462 use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
463 described in Subsection (1)(a) shall take effect:
464 (i) on the first day of a calendar quarter; and
465 (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
466 rate of the tax under Subsection (1)(a).
467 (3) (a) Except as provided in Subsection (4), if an annexation will result in the
468 enactment, repeal, or change in the rate of an emergency services tax for an annexing area, the
469 enactment, repeal, or change shall take effect:
470 (i) on the first day of a calendar quarter; and
471 (ii) after a 90-day period beginning on the date the commission receives notice meeting
472 the requirements of Subsection (3)(b) from the political subdivision that annexes the annexing
473 area.
474 (b) The notice described in Subsection (3)(a)(ii) shall state:
475 (i) that the annexation described in Subsection (3)(a) will result in the enactment,
476 repeal, or change in the rate of an emergency services tax for the annexing area;
477 (ii) the statutory authority for the emergency services tax;
478 (iii) the effective date of the enactment, repeal, or change in the rate of the emergency
479 services tax; and
480 (iv) if the annexation results in the enactment or change in the rate of an emergency
481 services tax for the annexing area, the rate of the emergency services tax.
482 (4) (a) If the billing period for a transaction begins before the effective date of the
483 enactment of an emergency services tax or the increase in the rate of an emergency services
484 tax, the enactment of the tax or the tax rate increase shall take effect on the first day of the first
485 billing period that begins after the effective date of the enactment of the tax or the tax rate
486 increase.
487 (b) If the billing period for a transaction begins before the effective date of the repeal of
488 an emergency services tax or the decrease in the rate of an emergency services tax, the repeal of
489 the tax or the tax rate decrease shall take effect on the first day of the last billing period that
490 began before the effective date of the repeal of the tax or the tax rate decrease.
491 (c) If a tax due under this part on a catalogue sale is computed on the basis of sales and
492 use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
493 described in Subsection (3)(a) shall take effect:
494 (i) on the first day of a calendar quarter; and
495 (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
496 rate of the tax under Subsection (3)(a).
497 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
498 for purposes of Subsections (2)(c) and (4)(c), the commission may by rule define the term
499 "catalogue sale."
500 Section 8. Section 59-12-2404 is enacted to read:
501 59-12-2404. Seller or certified service provider reliance on commission
502 information.
503 A seller or certified service provider is not liable for failing to collect an emergency
504 services tax if the seller's or certified service provider's failure to collect the emergency services
505 tax is as a result of the seller's or certified service provider's reliance on incorrect data provided
506 by the commission in a database created by the commission:
507 (1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
508 (2) indicating the taxability of tangible personal property, a product transferred
509 electronically, or a service.
510 Section 9. Section 59-12-2405 is enacted to read:
511 59-12-2405. Certified service provider or model 2 seller reliance on commission
512 certified software.
513 (1) Except as provided in Subsection (2) and subject to Subsection (4), a certified
514 service provider or model 2 seller is not liable for failing to collect an emergency services tax
515 if:
516 (a) the certified service provider or model 2 seller relies on software the commission
517 certifies; and
518 (b) the certified service provider's or model 2 seller's failure to collect an emergency
519 services tax is a result of the seller's or certified service provider's reliance on incorrect data:
520 (i) provided by the commission; or
521 (ii) in the software the commission certifies.
522 (2) The relief from liability described in Subsection (1) does not apply if a certified
523 service provider or model 2 seller incorrectly classifies an item or transaction into a product
524 category the commission certifies.
525 (3) If the taxability of a product category is incorrectly classified in software the
526 commission certifies, the commission shall:
527 (a) notify a certified service provider or model 2 seller of the incorrect classification of
528 the taxability of a product category in software the commission certifies; and
529 (b) state in the notice required by Subsection (3)(a) that the certified service provider or
530 model 2 seller is liable for failing to collect the correct amount of tax under this part on the
531 incorrectly classified product category if the certified service provider or model 2 seller fails to
532 correct the taxability of the item or transaction within 10 days after the day on which the
533 certified service provider or model 2 seller receives the notice.
534 (4) If a certified service provider or model 2 seller fails to correct the taxability of an
535 item or transaction within 10 days after the day on which the certified service provider or
536 model 2 seller receives the notice described in Subsection (3), the certified service provider or
537 model 2 seller is liable for failing to collect the correct amount of tax under this part on the
538 item or transaction.
539 Section 10. Section 59-12-2406 is enacted to read:
540 59-12-2406. Purchaser relief from liability.
541 (1) (a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty
542 under Section 59-1-401 for failure to pay an emergency services tax or an underpayment of the
543 emergency services tax if:
544 (i) the purchaser's seller or certified service provider relies on incorrect data provided
545 by the commission:
546 (A) on a tax rate;
547 (B) on a boundary;
548 (C) on a taxing jurisdiction; or
549 (D) in the taxability matrix the commission provides in accordance with the agreement;
550 or
551 (ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in
552 accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
553 (A) on a tax rate;
554 (B) on a boundary;
555 (C) on a taxing jurisdiction; or
556 (D) in the taxability matrix the commission provides in accordance with the agreement.
557 (b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under
558 Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the
559 purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on
560 incorrect data provided by the commission is a result of conduct that is:
561 (i) fraudulent;
562 (ii) intentional; or
563 (iii) willful.
564 (2) In addition to the relief from a penalty described in Subsection (1), a purchaser is
565 not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part
566 or an underpayment if:
567 (a) the purchaser's seller or certified service provider relies on:
568 (i) incorrect data provided by the commission:
569 (A) on a tax rate;
570 (B) on a boundary; or
571 (C) on a taxing jurisdiction; or
572 (ii) an erroneous classification by the commission:
573 (A) in the taxability matrix the commission provides in accordance with the agreement;
574 and
575 (B) with respect to a term that is in the library of definitions and that is listed as taxable
576 or exempt, included in or excluded from "sales price," or included in or excluded from a
577 definition; or
578 (b) the purchaser, regardless of whether the purchaser holds a direct payment permit in
579 accordance with Section 59-12-107.1, relies on:
580 (i) incorrect data provided by the commission:
581 (A) on a tax rate;
582 (B) on a boundary; or
583 (C) on a taxing jurisdiction; or
584 (ii) an erroneous classification by the commission:
585 (A) in the taxability matrix the commission provides in accordance with the agreement;
586 and
587 (B) with respect to a term that is in the library of definitions and that is listed as taxable
588 or exempt, included in or excluded from "sales price," or included in or excluded from a
589 definition.
590 Section 11. Effective date.
591 If approved by two-thirds of all the members elected to each house, this bill takes effect
592 upon approval by the governor, or the day following the constitutional time limit of Utah
593 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
594 the date of veto override with the exception of Section 59-12-801 (Effective 07/01/24) which
595 takes effect on July 1, 2024.