Utah 2025 Regular Session

Utah Senate Bill SB0047 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy S.B. 47
	1	+	02-20 17:20 1st Sub. (Green) S.B. 47
	2	+	Steve Eliason proposes the following substitute bill:
2	3		1
3	4		Sales and Use Tax Remittance Amendments
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Wayne A. Harper
7	8		House Sponsor: Steve Eliason
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill amends the requirements governing when a seller has to pay or collect and remit
16	17		6
17	18		sales and use tax.
18	19		7
19	20		Highlighted Provisions:
20	21		8
21	22		This bill:
22	23		9
23	24		▸ repeals the requirement that a seller has to pay or collect and remit the sales and use tax if
24	25		10
25	26		the seller sells tangible personal property, products transferred electronically, or services
26	27		11
27	28		for storage, use, or consumption in the state in more than a certain number of separate
28	29		12
29	30		transactions; and
30	31		13
31	32		▸ makes technical and conforming changes.
32	33		14
33	34		Money Appropriated in this Bill:
34	35		15
35	36		This bill appropriates $0 in operating and capital budgets for fiscal year 2026, including
36	37		16
37	38		($2,920,000) from General Fund and $2,920,000 from various sources as detailed in this bill.
38	39		17
39	40		Other Special Clauses:
40	41		18
41	42		This bill provides a special effective date.
42	43		19
43	44		Utah Code Sections Affected:
44	45		20
45	46		AMENDS:
46	47		21
47	48		59-12-107, as last amended by Laws of Utah 2022, Chapter 273
48	49		22
49	50		59-12-107.6, as last amended by Laws of Utah 2023, Chapter 361
50	51		23
51	52
52	53		24
53	54		Be it enacted by the Legislature of the state of Utah:
54	55		25
55	56		Section 1. Section 59-12-107 is amended to read:
56	57		26
57	58		59-12-107 . Definitions -- Collection, remittance, and payment of tax by sellers or
58	59		27
59	60		other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
60	61		28
61		-	liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt -- ~~S.B. 47 Enrolled Copy~~
	62	+	liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
62	63		29
63	64		Penalties and interest.
	65	+	1st Sub. S.B. 47 1st Sub. (Green) S.B. 47 02-20 17:20
64	66		30
65	67		(1) As used in this section:
66	68		31
67	69		(a) "Ownership" means direct ownership or indirect ownership through a parent,
68	70		32
69	71		subsidiary, or affiliate.
70	72		33
71	73		(b) "Related seller" means a seller that:
72	74		34
73	75		(i) meets one or more of the criteria described in Subsection (2)(a)(i); and
74	76		35
75	77		(ii) delivers tangible personal property, a service, or a product transferred
76	78		36
77	79		electronically that is sold:
78	80		37
79	81		(A) by a seller that does not meet one or more of the criteria described in
80	82		38
81	83		Subsection (2)(a)(i); and
82	84		39
83	85		(B) to a purchaser in the state.
84	86		40
85	87		(c) "Substantial ownership interest" means an ownership interest in a business entity if
86	88		41
87	89		that ownership interest is greater than the degree of ownership of equity interest
88	90		42
89	91		specified in 15 U.S.C. Sec. 78p, with respect to a person other than a director or an
90	92		43
91	93		officer.
92	94		44
93	95		(2)(a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section
94	96		45
95	97		59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit
96	98		46
97	99		the sales and use taxes imposed by this chapter if within this state the seller:
98	100		47
99	101		(i) has or utilizes:
100	102		48
101	103		(A) an office;
102	104		49
103	105		(B) a distribution house;
104	106		50
105	107		(C) a sales house;
106	108		51
107	109		(D) a warehouse;
108	110		52
109	111		(E) a service enterprise; or
110	112		53
111	113		(F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
112	114		54
113	115		(ii) maintains a stock of goods;
114	116		55
115	117		(iii) regularly solicits orders, regardless of whether or not the orders are accepted in
116	118		56
117	119		the state, unless the seller's only activity in the state is:
118	120		57
119	121		(A) advertising; or
120	122		58
121	123		(B) solicitation by:
122	124		59
123	125		(I) direct mail;
124	126		60
125	127		(II) electronic mail;
126	128		61
127	129		(III) the Internet;
128	130		62
129	131		(IV) telecommunications service; or
130		-	- 2 - Enrolled Copy S.B. 47
131	132		63
132	133		(V) a means similar to Subsection (2)(a)(iii)(A) or (B);
	134	+	- 2 - 02-20 17:20 1st Sub. (Green) S.B. 47
133	135		64
134	136		(iv) regularly engages in the delivery of property in the state other than by:
135	137		65
136	138		(A) common carrier; or
137	139		66
138	140		(B) United States mail; or
139	141		67
140	142		(v) regularly engages in an activity directly related to the leasing or servicing of
141	143		68
142	144		property located within the state.
143	145		69
144	146		(b) A seller is considered to be engaged in the business of selling tangible personal
145	147		70
146	148		property, a product transferred electronically, or a service for use in the state, and
147	149		71
148	150		shall pay or collect and remit the sales and use taxes imposed by this chapter if:
149	151		72
150	152		(i) the seller holds a substantial ownership interest in, or is owned in whole or in
151	153		73
152	154		substantial part by, a related seller; and
153	155		74
154	156		(ii)(A) the seller sells the same or a substantially similar line of products as the
155	157		75
156	158		related seller and does so under the same or a substantially similar business
157	159		76
158	160		name; or
159	161		77
160	162		(B) the place of business described in Subsection (2)(a)(i) of the related seller or
161	163		78
162	164		an in state employee of the related seller is used to advertise, promote, or
163	165		79
164	166		facilitate sales by the seller to a purchaser.
165	167		80
166	168		(c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the
167	169		81
168	170		criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect
169	171		82
170	172		and remit the sales and use taxes imposed by this chapter under Subsection (2)(b)
171	173		83
172	174		shall pay or collect and remit the sales and use tax imposed by this chapter if the
173	175		84
174	176		seller:
175	177		85
176	178		(i) sells tangible personal property, products transferred electronically, or services for
177	179		86
178	180		storage, use, or consumption in the state; and
179	181		87
180	182		(ii) in either the previous calendar year or the current calendar year[:]
181	183		88
182	184		[(A)] , receives gross revenue from the sale of tangible personal property, products
183	185		89
184	186		transferred electronically, or services for storage, use, or consumption in the
185	187		90
186	188		state of more than $100,000[; or] .
187	189		91
188	190		[(B) sells tangible personal property, products transferred electronically, or
189	191		92
190	192		services for storage, use, or consumption in the state in 200 or more separate
191	193		93
192	194		transactions.]
193	195		94
194	196		(d) A seller that does not meet one or more of the criteria provided for in Subsection
195	197		95
196	198		(2)(a) or is not a seller required to pay or collect and remit sales and use taxes under
197	199		96
198	200		Subsection (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
199		-	- 3 - S.B. 47 Enrolled Copy
200	201		97
201	202		(i) collect a tax on a transaction described in Subsection 59-12-103(1); and
	203	+	- 3 - 1st Sub. (Green) S.B. 47 02-20 17:20
202	204		98
203	205		(ii) remit the tax to the commission as provided in this part.
204	206		99
205	207		(e) The collection and remittance of a tax under this chapter by a seller that is registered
206	208		100
207	209		under the agreement may not be used as a factor in determining whether that seller is
208	210		101
209	211		required by this Subsection (2) to:
210	212		102
211	213		(i) pay a tax, fee, or charge under:
212	214		103
213	215		(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
214	216		104
215	217		(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
216	218		105
217	219		(C) Section 19-6-714;
218	220		106
219	221		(D) Section 19-6-805;
220	222		107
221	223		(E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
222	224		108
223	225		Charges; or
224	226		109
225	227		(F) this title; or
226	228		110
227	229		(ii) collect and remit a tax, fee, or charge under:
228	230		111
229	231		(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
230	232		112
231	233		(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
232	234		113
233	235		(C) Section 19-6-714;
234	236		114
235	237		(D) Section 19-6-805;
236	238		115
237	239		(E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
238	240		116
239	241		Charges; or
240	242		117
241	243		(F) this title.
242	244		118
243	245		(f) A person shall pay a use tax imposed by this chapter on a transaction described in
244	246		119
245	247		Subsection 59-12-103(1) if:
246	248		120
247	249		(i) the seller did not collect a tax imposed by this chapter on the transaction; and
248	250		121
249	251		(ii) the person:
250	252		122
251	253		(A) stores the tangible personal property or product transferred electronically in
252	254		123
253	255		the state;
254	256		124
255	257		(B) uses the tangible personal property or product transferred electronically in the
256	258		125
257	259		state; or
258	260		126
259	261		(C) consumes the tangible personal property or product transferred electronically
260	262		127
261	263		in the state.
262	264		128
263	265		(g) The ownership of property that is located at the premises of a printer's facility with
264	266		129
265	267		which the retailer has contracted for printing and that consists of the final printed
266	268		130
267	269		product, property that becomes a part of the final printed product, or copy from
268		-	- 4 - Enrolled Copy S.B. 47
269	270		131
270	271		which the printed product is produced, shall not result in the retailer being considered
	272	+	- 4 - 02-20 17:20 1st Sub. (Green) S.B. 47
271	273		132
272	274		to have or maintain an office, distribution house, sales house, warehouse, service
273	275		133
274	276		enterprise, or other place of business, or to maintain a stock of goods, within this
275	277		134
276	278		state.
277	279		135
278	280		(3)(a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this
279	281		136
280	282		chapter from a purchaser.
281	283		137
282	284		(b) A seller may not collect as tax an amount, without regard to fractional parts of one
283	285		138
284	286		cent, in excess of the tax computed at the rates prescribed by this chapter.
285	287		139
286	288		(c)(i) Each seller shall:
287	289		140
288	290		(A) give the purchaser a receipt for the tax collected; or
289	291		141
290	292		(B) bill the tax as a separate item and declare the name of this state and the seller's
291	293		142
292	294		sales and use tax license number on the invoice for the sale.
293	295		143
294	296		(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
295	297		144
296	298		and relieves the purchaser of the liability for reporting the tax to the commission
297	299		145
298	300		as a consumer.
299	301		146
300	302		(d) A seller is not required to maintain a separate account for the tax collected, but is
301	303		147
302	304		considered to be a person charged with receipt, safekeeping, and transfer of public
303	305		148
304	306		money.
305	307		149
306	308		(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
307	309		150
308	310		benefit of the state and for payment to the commission in the manner and at the time
309	311		151
310	312		provided for in this chapter.
311	313		152
312	314		(f) If any seller, during any reporting period, collects as a tax an amount in excess of the
313	315		153
314	316		lawful state and local percentage of total taxable sales allowed under this chapter, the
315	317		154
316	318		seller shall remit to the commission the full amount of the tax imposed under this
317	319		155
318	320		chapter, plus any excess.
319	321		156
320	322		(g) If the accounting methods regularly employed by the seller in the transaction of the
321	323		157
322	324		seller's business are such that reports of sales made during a calendar month or
323	325		158
324	326		quarterly period will impose unnecessary hardships, the commission may accept
325	327		159
326	328		reports at intervals that, in the commission's opinion, will better suit the convenience
327	329		160
328	330		of the taxpayer or seller and will not jeopardize collection of the tax.
329	331		161
330	332		(h)(i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
331	333		162
332	334		and until such time as the commission accepts specie legal tender for the payment
333	335		163
334	336		of a tax under this chapter, if the commission requires a seller to remit a tax under
335	337		164
336	338		this chapter in legal tender other than specie legal tender, the seller shall state on
337		-	- 5 - S.B. 47 Enrolled Copy
338	339		165
339	340		the seller's books and records and on an invoice, bill of sale, or similar document
	341	+	- 5 - 1st Sub. (Green) S.B. 47 02-20 17:20
340	342		166
341	343		provided to the purchaser:
342	344		167
343	345		(A) the purchase price in specie legal tender and in the legal tender the seller is
344	346		168
345	347		required to remit to the commission;
346	348		169
347	349		(B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in
348	350		170
349	351		specie legal tender and in the legal tender the seller is required to remit to the
350	352		171
351	353		commission;
352	354		172
353	355		(C) the tax rate under this chapter applicable to the purchase; and
354	356		173
355	357		(D) the date of the purchase.
356	358		174
357	359		(ii)(A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount
358	360		175
359	361		of tax due under Subsection (3)(h)(i), a seller shall use the most recent London
360	362		176
361	363		fixing price for the specie legal tender the purchaser paid.
362	364		177
363		-	(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking ~~Act,~~
	365	+	(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
364	366		178
365		-	the commission may make rules for determining the amount of tax due ~~under~~
	367	+	Act, the commission may make rules for determining the amount of tax due
366	368		179
367		-	Subsection (3)(h)(i) if the London fixing price is not available for a ~~particular~~
	369	+	under Subsection (3)(h)(i) if the London fixing price is not available for a
368	370		180
369		-	day.
	371	+	particular day.
370	372		181
371	373		(4)(a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
372	374		182
373	375		sales or use tax imposed by this chapter is due and payable to the commission
374	376		183
375	377		quarterly on or before the last day of the month next succeeding each quarterly
376	378		184
377	379		calendar period.
378	380		185
379	381		(b)(i) Each seller shall, on or before the last day of the month next succeeding each
380	382		186
381	383		quarterly calendar period, file with the commission a return for the preceding
382	384		187
383	385		quarterly period.
384	386		188
385	387		(ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
386	388		189
387	389		tax required under this chapter to be collected or paid for the period covered by
388	390		190
389	391		the return.
390	392		191
391	393		(c) Except as provided in Subsection (5)(c), a return shall contain information and be in
392	394		192
393	395		a form the commission prescribes by rule.
394	396		193
395	397		(d)(i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
396	398		194
397	399		based on the total nonexempt sales made during the period for which the return is
398	400		195
399	401		filed, including both cash and charge sales.
400	402		196
401	403		(ii) For a sale that includes the delivery or installation of tangible personal property at
402	404		197
403	405		a location other than a seller's place of business described in Subsection (2)(a)(i),
404	406		198
405	407		if the delivery or installation is separately stated on an invoice or receipt, a seller
406		-	- 6 - Enrolled Copy S.B. 47
407	408		199
408	409		may compute the tax due on the sale for purposes of Subsection (4)(d)(i) based on
	410	+	- 6 - 02-20 17:20 1st Sub. (Green) S.B. 47
409	411		200
410	412		the amount the seller receives for that sale during each period for which the seller
411	413		201
412	414		receives payment for the sale.
413	415		202
414	416		(e)(i) The use tax as computed in the return shall be based on the total amount of
415	417		203
416	418		purchases for storage, use, or other consumption in this state made during the
417	419		204
418	420		period for which the return is filed, including both cash and charge purchases.
419	421		205
420	422		(ii)(A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a
421	423		206
422	424		purchaser that is required to remit taxes under this chapter, but is not required
423	425		207
424	426		to remit taxes monthly in accordance with Section 59-12-108, and that converts
425	427		208
426	428		tangible personal property into real property.
427	429		209
428	430		(B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit
429	431		210
430	432		the taxes due under this chapter on tangible personal property for which the
431	433		211
432	434		qualifying purchaser claims an exemption as allowed under Subsection
433	435		212
434	436		59-12-104(23) or (25) based on the period in which the qualifying purchaser
435	437		213
436	438		receives payment, in accordance with Subsection (4)(e)(ii)(C), for the
437	439		214
438	440		conversion of the tangible personal property into real property.
439	441		215
440	442		(C) A qualifying purchaser remitting taxes due under this chapter in accordance
441	443		216
442	444		with Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of
443	445		217
444	446		tax due on the qualifying purchaser's purchase of the tangible personal property
445	447		218
446	448		that was converted into real property multiplied by a fraction, the numerator of
447	449		219
448	450		which is the payment received in the period for the qualifying purchaser's sale
449	451		220
450	452		of the tangible personal property that was converted into real property and the
451	453		221
452	454		denominator of which is the entire sales price for the qualifying purchaser's
453	455		222
454	456		sale of the tangible personal property that was converted into real property.
455	457		223
456	458		(D) A qualifying purchaser may remit taxes due under this chapter in accordance
457	459		224
458	460		with this Subsection (4)(e)(ii) only if the books and records that the qualifying
459	461		225
460	462		purchaser keeps in the qualifying purchaser's regular course of business
461	463		226
462	464		identify by reasonable and verifiable standards that the tangible personal
463	465		227
464	466		property was converted into real property.
465	467		228
466	468		(f)(i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
467	469		229
468	470		Utah Administrative Rulemaking Act, the commission may by rule extend the
469	471		230
470	472		time for making returns and paying the taxes.
471	473		231
472	474		(ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
473	475		232
474	476		(g) The commission may require returns and payment of the tax to be made for other
475		-	- 7 - S.B. 47 Enrolled Copy
476	477		233
477	478		than quarterly periods if the commission considers it necessary in order to ensure the
	479	+	- 7 - 1st Sub. (Green) S.B. 47 02-20 17:20
478	480		234
479	481		payment of the tax imposed by this chapter.
480	482		235
481	483		(h)(i) The commission may require a seller that files a simplified electronic return
482	484		236
483	485		with the commission to file an additional electronic report with the commission.
484	486		237
485	487		(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
486	488		238
487	489		the commission may make rules providing:
488	490		239
489	491		(A) the information required to be included in the additional electronic report
490	492		240
491	493		described in Subsection (4)(h)(i); and
492	494		241
493	495		(B) one or more due dates for filing the additional electronic report described in
494	496		242
495	497		Subsection (4)(h)(i).
496	498		243
497	499		(5)(a) As used in this Subsection (5) and Subsection (6)(b), [" ] "voluntary seller" means
498	500		244
499	501		a seller that is:
500	502		245
501	503		(i) registered under the agreement;
502	504		246
503	505		(ii) described in Subsection (2)(d); and
504	506		247
505	507		(iii) not a:
506	508		248
507	509		(A) model 1 seller;
508	510		249
509	511		(B) model 2 seller; or
510	512		250
511	513		(C) model 3 seller.
512	514		251
513	515		(b)(i) Except as provided in Subsection (5)(b)(ii), a tax a voluntary seller collects in
514	516		252
515	517		accordance with Subsection (2)(d) is due and payable:
516	518		253
517	519		(A) to the commission;
518	520		254
519	521		(B) annually; and
520	522		255
521	523		(C) on or before the last day of the month immediately following the last day of
522	524		256
523	525		each calendar year.
524	526		257
525	527		(ii) The commission may require that a tax a voluntary seller collects in accordance
526	528		258
527	529		with Subsection (2)(d) be due and payable:
528	530		259
529	531		(A) to the commission; and
530	532		260
531	533		(B) on the last day of the month immediately following any month in which the
532	534		261
533	535		seller accumulates a total of at least $1,000 in agreement sales and use tax.
534	536		262
535	537		(c)(i) If a voluntary seller remits a tax to the commission in accordance with
536	538		263
537	539		Subsection (5)(b), the voluntary seller shall file a return:
538	540		264
539	541		(A) with the commission;
540	542		265
541	543		(B) with respect to the tax;
542	544		266
543	545		(C) containing information prescribed by the commission; and
544		-	- 8 - Enrolled Copy S.B. 47
545	546		267
546	547		(D) on a form prescribed by the commission.
	548	+	- 8 - 02-20 17:20 1st Sub. (Green) S.B. 47
547	549		268
548	550		(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
549	551		269
550	552		the commission shall make rules prescribing:
551	553		270
552	554		(A) the information required to be contained in a return described in Subsection
553	555		271
554	556		(5)(c)(i); and
555	557		272
556	558		(B) the form described in Subsection (5)(c)(i)(D).
557	559		273
558	560		(d) A tax a voluntary seller collects in accordance with this Subsection (5) shall be
559	561		274
560	562		calculated on the basis of the total amount of taxable transactions under Subsection
561	563		275
562	564		59-12-103(1) the voluntary seller completes, including:
563	565		276
564	566		(i) a cash transaction; and
565	567		277
566	568		(ii) a charge transaction.
567	569		278
568	570		(6)(a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
569	571		279
570	572		electronic return collects in accordance with this chapter is due and payable:
571	573		280
572	574		(i) monthly on or before the last day of the month immediately following the month
573	575		281
574	576		for which the seller collects a tax under this chapter; and
575	577		282
576	578		(ii) for the month for which the seller collects a tax under this chapter.
577	579		283
578	580		(b) A tax a voluntary seller that files a simplified electronic return collects in accordance
579	581		284
580	582		with this chapter is due and payable as provided in Subsection (5).
581	583		285
582	584		(7)(a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
583	585		286
584	586		purchaser shall pay the sales or use tax directly to the commission if the vehicle is
585	587		287
586	588		subject to titling or registration under the laws of this state.
587	589		288
588	590		(b) The commission shall collect the tax described in Subsection (7)(a) when the vehicle
589	591		289
590	592		is titled or registered.
591	593		290
592	594		(8) If any sale of tangible personal property or any other taxable transaction under
593	595		291
594	596		Subsection 59-12-103(1), is made by a wholesaler to a retailer:
595	597		292
596	598		(a) the wholesaler is not responsible for the collection or payment of the tax imposed on
597	599		293
598	600		the sale; and
599	601		294
600	602		(b) the retailer is responsible for the collection or payment of the tax imposed on the sale
601	603		295
602	604		if:
603	605		296
604	606		(i) the retailer represents that the tangible personal property, product transferred
605	607		297
606	608		electronically, or service is purchased by the retailer for resale; and
607	609		298
608	610		(ii) the tangible personal property, product transferred electronically, or service is not
609	611		299
610	612		subsequently resold.
611	613		300
612	614		(9) If any sale of property or service subject to the tax is made to a person prepaying sales
613		-	- 9 - S.B. 47 Enrolled Copy
614	615		301
615	616		or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
	617	+	- 9 - 1st Sub. (Green) S.B. 47 02-20 17:20
616	618		302
617	619		contractor or subcontractor of that person:
618	620		303
619	621		(a) the person to whom such payment or consideration is payable is not responsible for
620	622		304
621	623		the collection or payment of the sales or use tax; and
622	624		305
623	625		(b) the person prepaying the sales or use tax is responsible for the collection or payment
624	626		306
625	627		of the sales or use tax if the person prepaying the sales or use tax represents that the
626	628		307
627	629		amount prepaid as sales or use tax has not been fully credited against sales or use tax
628	630		308
629	631		due and payable under the rules promulgated by the commission.
630	632		309
631	633		(10)(a) For purposes of this Subsection (10):
632	634		310
633	635		(i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that
634	636		311
635	637		term is defined in Section 166, Internal Revenue Code.
636	638		312
637	639		(ii) "Bad debt" does not include:
638	640		313
639	641		(A) an amount included in the purchase price of tangible personal property, a
640	642		314
641	643		product transferred electronically, or a service that is:
642	644		315
643	645		(I) not a transaction described in Subsection 59-12-103(1); or
644	646		316
645	647		(II) exempt under Section 59-12-104;
646	648		317
647	649		(B) a financing charge;
648	650		318
649	651		(C) interest;
650	652		319
651	653		(D) a tax imposed under this chapter on the purchase price of tangible personal
652	654		320
653	655		property, a product transferred electronically, or a service;
654	656		321
655	657		(E) an uncollectible amount on tangible personal property or a product transferred
656	658		322
657	659		electronically that:
658	660		323
659	661		(I) is subject to a tax under this chapter; and
660	662		324
661	663		(II) remains in the possession of a seller until the full purchase price is paid;
662	664		325
663	665		(F) an expense incurred in attempting to collect any debt; or
664	666		326
665	667		(G) an amount that a seller does not collect on repossessed property.
666	668		327
667	669		(b)(i) To the extent an amount remitted in accordance with Subsection (4)(d) later
668	670		328
669	671		becomes bad debt, a seller may deduct the bad debt from the total amount from
670	672		329
671	673		which a tax under this chapter is calculated on a return.
672	674		330
673	675		(ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from
674	676		331
675	677		the total amount of taxes due under this chapter the amount of tax the qualifying
676	678		332
677	679		purchaser paid on the qualifying purchaser's purchase of tangible personal
678	680		333
679	681		property converted into real property to the extent that:
680	682		334
681	683		(A) tax was remitted in accordance with Subsection (4)(e) on that tangible
682		-	- 10 - Enrolled Copy S.B. 47
683	684		335
684	685		personal property converted into real property;
	686	+	- 10 - 02-20 17:20 1st Sub. (Green) S.B. 47
685	687		336
686	688		(B) the qualifying purchaser's sale of that tangible personal property converted
687	689		337
688	690		into real property later becomes bad debt; and
689	691		338
690	692		(C) the books and records that the qualifying purchaser keeps in the qualifying
691	693		339
692	694		purchaser's regular course of business identify by reasonable and verifiable
693	695		340
694	696		standards that the tangible personal property was converted into real property.
695	697		341
696	698		(c) A seller may file a refund claim with the commission if:
697	699		342
698	700		(i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
699	701		343
700	702		the amount of the seller's sales that are subject to a tax under this chapter for that
701	703		344
702	704		same time period; and
703	705		345
704	706		(ii) as provided in Section 59-1-1410.
705	707		346
706	708		(d) A bad debt deduction under this section may not include interest.
707	709		347
708	710		(e) A bad debt may be deducted under this Subsection (10) on a return for the time
709	711		348
710	712		period during which the bad debt:
711	713		349
712	714		(i) is written off as uncollectible in the seller's books and records; and
713	715		350
714	716		(ii) would be eligible for a bad debt deduction:
715	717		351
716	718		(A) for federal income tax purposes; and
717	719		352
718	720		(B) if the seller were required to file a federal income tax return.
719	721		353
720	722		(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
721	723		354
722	724		claims a refund under this Subsection (10), the seller shall report and remit a tax
723	725		355
724	726		under this chapter:
725	727		356
726	728		(i) on the portion of the bad debt the seller recovers; and
727	729		357
728	730		(ii) on a return filed for the time period for which the portion of the bad debt is
729	731		358
730	732		recovered.
731	733		359
732		-	(g) For purposes of reporting a recovery of a portion of bad debt under Subsection ~~(10)(f),~~
	734	+	(g) For purposes of reporting a recovery of a portion of bad debt under Subsection
733	735		360
734		-	a seller shall apply amounts received on the bad debt in the following order:
	736	+	(10)(f), a seller shall apply amounts received on the bad debt in the following order:
735	737		361
736	738		(i) in a proportional amount:
737	739		362
738	740		(A) to the purchase price of the tangible personal property, product transferred
739	741		363
740	742		electronically, or service; and
741	743		364
742	744		(B) to the tax due under this chapter on the tangible personal property, product
743	745		365
744	746		transferred electronically, or service; and
745	747		366
746	748		(ii) to:
747	749		367
748	750		(A) interest charges;
749	751		368
750	752		(B) service charges; and
751		-	- 11 - S.B. 47 Enrolled Copy
752	753		369
753	754		(C) other charges.
	755	+	- 11 - 1st Sub. (Green) S.B. 47 02-20 17:20
754	756		370
755	757		(h) A seller's certified service provider may make a deduction or claim a refund for bad
756	758		371
757	759		debt on behalf of the seller:
758	760		372
759	761		(i) in accordance with this Subsection (10); and
760	762		373
761	763		(ii) if the certified service provider credits or refunds the entire amount of the bad
762	764		374
763	765		debt deduction or refund to the seller.
764	766		375
765	767		(i) A seller may allocate bad debt among the states that are members of the agreement if
766	768		376
767	769		the seller's books and records support that allocation.
768	770		377
769	771		(11)(a) A seller may not, with intent to evade any tax, fail to timely remit the full
770	772		378
771	773		amount of tax required by this chapter.
772	774		379
773	775		(b) A violation of this section is punishable as provided in Section 59-1-401.
774	776		380
775	777		(c) Each person that fails to pay any tax to the state or any amount of tax required to be
776	778		381
777	779		paid to the state, except amounts determined to be due by the commission under
778	780		382
779	781		Chapter 1, Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111,
780	782		383
781	783		within the time required by this chapter, or that fails to file any return as required by
782	784		384
783	785		this chapter, shall pay, in addition to the tax, penalties and interest as provided in
784	786		385
785	787		Sections 59-1-401 and 59-1-402.
786	788		386
787	789		(d) For purposes of prosecution under this section, each quarterly tax period in which a
788	790		387
789	791		seller, with intent to evade any tax, collects a tax and fails to timely remit the full
790	792		388
791	793		amount of the tax required to be remitted constitutes a separate offense.
792	794		389
793	795		Section 2. Section 59-12-107.6 is amended to read:
794	796		390
795	797		59-12-107.6 . Marketplace facilitator collection, remittance, and payment of sales
796	798		391
797	799		tax obligation -- Marketplace seller collection, remittance, and payment of sales tax
798	800		392
799	801		obligation -- Liability for collection.
800	802		393
801	803		(1) A marketplace facilitator shall pay or collect and remit taxes imposed by this chapter in
802	804		394
803	805		accordance with Section 59-12-107:
804	806		395
805	807		(a) if the marketplace facilitator meets one or more of the criteria provided for in
806	808		396
807	809		Subsection 59-12-107(2)(a) or (b); and
808	810		397
809	811		(b) on the sales the marketplace facilitator made on the marketplace facilitator's own
810	812		398
811	813		behalf.
812	814		399
813	815		(2)(a) A marketplace facilitator shall pay or collect and remit taxes imposed by this
814	816		400
815	817		chapter in accordance with Subsection (3) if the marketplace facilitator, in the
816	818		401
817	819		previous calendar year or the current calendar year, makes sales of tangible personal
818	820		402
819	821		property, products transferred electronically, or services on the marketplace
820		-	- 12 - Enrolled Copy S.B. 47
821	822		403
822	823		facilitator's own behalf or facilitates sales on behalf of one or more marketplace
	824	+	- 12 - 02-20 17:20 1st Sub. (Green) S.B. 47
823	825		404
824	826		sellers[:]
825	827		405
826	828		[(i)] that exceed $100,000[; or] .
827	829		406
828	830		[(ii) in 200 or more separate transactions.]
829	831		407
830	832		(b) For purposes of determining if a marketplace facilitator [meets or exceeds one or
831	833		408
832	834		both thresholds] exceeds the threshold described in this Subsection (2), a marketplace
833	835		409
834	836		facilitator shall separately total:
835	837		410
836	838		(i) the marketplace facilitator's sales; and
837	839		411
838	840		(ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
839	841		412
840	842		(c) A marketplace facilitator without a physical presence in this state shall begin
841	843		413
842	844		collecting and remitting the taxes imposed by this chapter no later than the first day
843	845		414
844	846		of the calendar quarter that is at least 60 days after the day on which the marketplace
845	847		415
846	848		facilitator [meets or exceeds either] exceeds the threshold described in Subsection
847	849		416
848	850		(2)(a).
849	851		417
850	852		(3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit taxes
851	853		418
852	854		imposed by this chapter for each sale that the marketplace facilitator:
853	855		419
854	856		(a) makes on the marketplace facilitator's own behalf; or
855	857		420
856	858		(b) makes or facilitates on behalf of a marketplace seller, regardless of:
857	859		421
858	860		(i) whether the marketplace seller has an obligation to pay or collect and remit taxes
859	861		422
860	862		under Section 59-12-107;
861	863		423
862	864		(ii) whether the marketplace seller would have been required to pay or collect and
863	865		424
864	866		remit taxes under Section 59-12-107 if the marketplace facilitator had not
865	867		425
866	868		facilitated the sale; or
867	869		426
868	870		(iii) the amount of the sales price or the purchase price that accrues to or benefits the
869	871		427
870	872		marketplace facilitator, the marketplace seller, or any other person.
871	873		428
872	874		(4) A marketplace facilitator shall comply with the procedures and requirements in this
873	875		429
874	876		chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect
875	877		430
876	878		and remit taxes except that the marketplace facilitator shall segregate, in the marketplace
877	879		431
878	880		facilitator's books and records:
879	881		432
880	882		(a) the sales that the marketplace facilitator makes on the marketplace facilitator's own
881	883		433
882	884		behalf; and
883	885		434
884	886		(b) the sales that the marketplace facilitator makes or facilitates on behalf of one or more
885	887		435
886	888		marketplace sellers.
887	889		436
888	890		(5)(a) The commission may audit the marketplace facilitator for sales made or facilitated
889		-	- 13 - S.B. 47 Enrolled Copy
890	891		437
891	892		through the marketplace facilitator's marketplace on behalf of one or more
	893	+	- 13 - 1st Sub. (Green) S.B. 47 02-20 17:20
892	894		438
893	895		marketplace sellers.
894	896		439
895	897		(b) The commission may not audit the marketplace seller for sales made or facilitated
896	898		440
897	899		through the marketplace facilitator's marketplace on the marketplace seller's behalf.
898	900		441
899	901		(6) Nothing in this section prohibits a marketplace facilitator from providing in a
900	902		442
901	903		marketplace facilitator's agreement with a marketplace seller for the recovery of taxes,
902	904		443
903	905		and any related interest or penalties to the extent that a tax, interest, or penalty is
904	906		444
905	907		assessed by the state in an audit of the marketplace facilitator on a retail sale:
906	908		445
907	909		(a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller;
908	910		446
909	911		and
910	912		447
911	913		(b) for which the marketplace facilitator relied on incorrect or incomplete information
912	914		448
913	915		provided by the marketplace seller.
914	916		449
915	917		[(7)(a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for
916	918		450
917	919		failing to collect the taxes under this chapter for a sale on which the marketplace
918	920		451
919	921		facilitator failed to collect taxes if the marketplace facilitator demonstrates, to the
920	922		452
921	923		satisfaction of the commission, that:]
922	924		453
923	925		[(i) the marketplace facilitator made or facilitated the sale through the marketplace
924	926		454
925	927		facilitator's marketplace on or before December 31, 2022;]
926	928		455
927	929		[(ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace
928	930		456
929	931		seller and not on behalf of the marketplace facilitator;]
930	932		457
931	933		[(iii) the marketplace facilitator and the marketplace seller are not affiliates; and]
932	934		458
933	935		[(iv) the failure to collect taxes was due to a good faith error other than an error in
934	936		459
935	937		sourcing.]
936	938		460
937	939		[(b) For purposes of Subsection (7)(a):]
938	940		461
939	941		[(i) for sales made or facilitated during the 2019 or 2020 calendar year, the
940	942		462
941	943		marketplace facilitator is not liable for the amount the marketplace facilitator fails
942	944		463
943	945		to collect due to error that is equal to the error rate, but not to exceed a 7% error
944	946		464
945	947		rate;]
946	948		465
947	949		[(ii) for sales made or facilitated during the 2021 calendar year, the marketplace
948	950		466
949	951		facilitator is not liable for the amount the marketplace facilitator fails to collect
950	952		467
951	953		due to error that is equal to the error rate, but not to exceed a 5% error rate; and]
952	954		468
953	955		[(iii) for sales made or facilitated during the 2022 calendar year, the marketplace
954	956		469
955	957		facilitator is not liable for the amount the marketplace facilitator fails to collect
956	958		470
957	959		due to error that is equal to the error rate, but not to exceed a 3% error rate.]
958		-	- 14 - Enrolled Copy S.B. 47
959	960		471
960	961		[(c) The commission shall calculate the percentages described in Subsection (7)(b):]
	962	+	- 14 - 02-20 17:20 1st Sub. (Green) S.B. 47
961	963		472
962	964		[(i) using the total taxes due on sales that:]
963	965		473
964	966		[(A) a marketplace facilitator made or facilitated in this state on behalf of one or
965	967		474
966	968		more marketplace sellers during the calendar year that the sale for which the
967	969		475
968	970		marketplace facilitator seeks relief was made or facilitated; and]
969	971		476
970	972		[(B) are sourced to the state; and]
971	973		477
972	974		[(ii) not including sales that the marketplace facilitator or the marketplace facilitator's
973	975		478
974	976		affiliates directly made during the same calendar year.]
975	977		479
976	978		[(8)] (7) A marketplace seller shall pay or collect and remit taxes imposed by this chapter
977	979		480
978	980		for a sale of tangible personal property, a product transferred electronically, or a service
979	981		481
980	982		that the marketplace seller makes other than through a marketplace facilitator if:
981	983		482
982	984		(a) the sale is sourced to this state; and
983	985		483
984	986		(b) the marketplace seller's sales in this state, other than through a marketplace
985	987		484
986	988		facilitator, in the previous calendar year or the current calendar year[:]
987	989		485
988	990		[(i)] exceed $100,000[; or] .
989	991		486
990	992		[(ii) occur in 200 or more separate transactions.]
991	993		487
992	994		[(9)] (8)(a) A marketplace seller may not pay or collect and remit taxes imposed by this
993	995		488
994	996		chapter for any sale for which a marketplace facilitator is required to pay or collect
995	997		489
996	998		and remit.
997	999		490
998	1000		(b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or
999	1001		491
1000	1002		collect and remit, or the marketplace facilitator's underpayment of, taxes imposed by
1001	1003		492
1002	1004		this chapter for any sale for which a marketplace facilitator is required to pay or
1003	1005		493
1004	1006		collect and remit the taxes imposed by this chapter.
1005	1007		494
1006	1008		[(10)] (9)(a) A purchaser of tangible personal property, a product transferred
1007	1009		495
1008	1010		electronically, or a service may file a claim for a refund with the marketplace
1009	1011		496
1010	1012		facilitator if the purchaser overpaid taxes imposed under this chapter.
1011	1013		497
1012	1014		(b) No person may bring a class action against a marketplace facilitator in any court of
1013	1015		498
1014	1016		the state on behalf of purchasers arising from or in any way related to an
1015	1017		499
1016	1018		overpayment of taxes collected and remitted on sales made or facilitated by the
1017	1019		500
1018	1020		marketplace facilitator on behalf of a marketplace seller, regardless of whether such
1019	1021		501
1020	1022		claim is characterized as a tax refund claim.
1021	1023		502
1022	1024		[(11)] (10) Nothing in this section affects the obligation of a purchaser to remit the use tax
1023	1025		503
1024	1026		described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator
1025	1027		504
1026	1028		or marketplace seller failed to collect and remit a tax imposed by this chapter.
1027		-	- 15 - S.B. 47 Enrolled Copy
1028	1029		505
1029	1030		Section 3. FY 2026 Appropriations.
	1031	+	- 15 - 1st Sub. (Green) S.B. 47 02-20 17:20
1030	1032		506
1031	1033		The following sums of money are appropriated for the fiscal year beginning July 1,
1032	1034		507
1033	1035		2025, and ending June 30, 2026. These are additions to amounts previously appropriated for
1034	1036		508
1035	1037		fiscal year 2026.
1036	1038		509
1037	1039		Subsection 3(a). Operating and Capital Budgets
1038	1040		510
1039	1041		Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
1040	1042		511
1041	1043		Legislature appropriates the following sums of money from the funds or accounts indicated for
1042	1044		512
1043	1045		the use and support of the government of the state of Utah.
1044	1046		513
1045	1047		ITEM 1 To Utah State Tax Commission - Tax Administration
1046	1048		514
1047	1049		From General Fund (3,280,000)
1048	1050		515
1049	1051		From General Fund, One-time 360,000
1050	1052		516
1051	1053		From General Fund Rest. - State Tax Commission
1052	1054		517
1053	1055		Administrative Charge Account 3,280,000
1054	1056		518
1055	1057		From General Fund Rest. - State Tax Commission
1056	1058		519
1057	1059		Administrative Charge Account, One-time (360,000)
1058	1060		520
1059	1061		Section 4. Effective Date.
1060	1062		521
1061	1063		This bill takes effect on July 1, 2025.
1062	1064		- 16 -