UT
Utah Senate Bill SB0052

Utah 2025 Regular Session

Utah Senate Bill SB0052 Compare Versions

OldNewDifferences
1-Enrolled Copy S.B. 52
1+03-05 11:39 3rd Sub. (Ivory) S.B. 52
2+Jason B. Kyle proposes the following substitute bill:
23 1
34 Vehicle Registration Modifications
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Brady Brammer
78 House Sponsor: Jason B. Kyle
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill allows the State Tax Commission to contract with a designated agent to assist in
1617 6
1718 address verification for vehicles and vessels insured in the state.
1819 7
1920 Highlighted Provisions:
2021 8
2122 This bill:
2223 9
2324 ▸ defines terms;
2425 10
2526 ▸ allows the State Tax Commission (commission) to contract with a designated agent to
2627 11
2728 determine the address for which a vehicle's or vessel's insurance is tied, to assist the
2829 12
2930 commission in determining whether the owner is a resident of this state;
3031 13
3132 ▸ based on information provided by the designated agent, allows the commission to
3233 14
3334 investigate whether the owner is a resident for vehicle or vessel registration purposes or
3435 15
3536 otherwise in compliance with relevant registration and tax laws;
3637 16
3738 ▸ for a person found in violation of certain tax and fee requirements, allows the person 60
3839 17
3940 days to cure the violation before being subject to a penalty;
4041 18
4142 ▸ allows the commission to impose penalties in certain circumstances;
4243 19
4344 ▸ allows funds in the Uninsured Motorist Identification Restricted Account to be used to
4445 20
45-cover the costs of the designated agent for address verification; and
46+cover the costs of the designated agent for address verification;
4647 21
48+▸ provides a coordination clause to amend S.B. 195, Transportation Amendments, with
49+22
50+regard to electric unicycles and similar devices; and
51+23
4752 ▸ makes technical changes.
48-22
53+24
4954 Money Appropriated in this Bill:
50-23
55+25
5156 None
52-24
57+26
5358 Other Special Clauses:
54-25
59+27
5560 This bill provides a special effective date.
56-26
61+28
62+This bill provides a coordination clause.
63+3rd Sub. S.B. 52 3rd Sub. (Ivory) S.B. 52 03-05 11:39
64+29
5765 Utah Code Sections Affected:
58-27
59-AMENDS: S.B. 52 Enrolled Copy
60-28
61-41-1a-202, as last amended by Laws of Utah 2023, Chapters 81, 532
62-29
63-41-12a-301, as last amended by Laws of Utah 2023, Chapter 94
6466 30
65-41-12a-806, as last amended by Laws of Utah 2024, Chapters 268, 319
67+AMENDS:
6668 31
67-59-12-107, as last amended by Laws of Utah 2022, Chapter 273
69+41-1a-202 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
6870 32
71+Chapters 81, 532
72+33
73+41-12a-301 (Effective 05/03/23), as last amended by Laws of Utah 2023, Chapter 94
74+34
75+41-12a-806 (Effective upon governor's approval), as last amended by Laws of Utah
76+35
77+2024, Chapters 268, 319
78+36
79+59-12-107 (Effective 05/04/22), as last amended by Laws of Utah 2022, Chapter 273
80+37
81+Utah Code Sections affected by Coordination Clause:
82+38
6983
70-33
84+39
7185 Be it enacted by the Legislature of the state of Utah:
72-34
86+40
7387 Section 1. Section 41-1a-202 is amended to read:
74-35
75-41-1a-202 . Definitions -- Vehicles exempt from registration -- Registration of
76-36
77-vehicles after establishing residency.
78-37
88+41
89+41-1a-202 (Effective upon governor's approval). Definitions -- Vehicles exempt
90+42
91+from registration -- Registration of vehicles after establishing residency.
92+43
7993 (1) [In] As used in this section:
80-38
94+44
8195 (a) "Designated agent" means the same as that term is defined in Section 41-12a-803.
82-39
96+45
8397 [(a)] (b) "Domicile" means the place:
84-40
98+46
8599 (i) where an individual has a fixed permanent home and principal establishment;
86-41
100+47
87101 (ii) to which the individual if absent, intends to return; and
88-42
102+48
89103 (iii) in which the individual and his family voluntarily reside, not for a special or
90-43
104+49
91105 temporary purpose, but with the intention of making a permanent home.
92-44
106+50
93107 [(b)] (c)(i) "Resident" means any of the following:
94-45
108+51
95109 (A) an individual who:
96-46
110+52
97111 (I) has established a domicile in this state;
98-47
112+53
99113 (II) regardless of domicile, remains in this state for an aggregate period of six
100-48
114+54
101115 months or more during any calendar year;
102-49
116+55
103117 (III) engages in a trade, profession, or occupation in this state or who accepts
104-50
118+56
105119 employment in other than seasonal work in this state and who does not
106-51
120+57
107121 commute into the state;
108-52
122+58
109123 (IV) declares himself to be a resident of this state for the purpose of obtaining a
110-53
124+59
111125 driver license or motor vehicle registration; or
112-54
126+60
113127 (V) declares himself a resident of Utah to obtain privileges not ordinarily
114-55
128+61
115129 extended to nonresidents, including going to school, or placing children in
116-56
130+62
117131 school without paying nonresident tuition or fees; or
118-57
132+- 2 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
133+63
119134 (B) any individual, partnership, limited liability company, firm, corporation,
120-58
135+64
121136 association, or other entity that:
122-59
137+65
123138 (I) maintains a main office, branch office, or warehouse facility in this state
124-60
139+66
125140 and that bases and operates a motor vehicle in this state; or
126-61
141+67
127142 (II) operates a motor vehicle in intrastate transportation for other than seasonal
128-- 2 - Enrolled Copy S.B. 52
129-62
143+68
130144 work.
131-63
145+69
132146 (ii) "Resident" does not include any of the following:
133-64
147+70
134148 (A) a member of the military temporarily stationed in Utah;
135-65
149+71
136150 (B) an out-of-state student, as classified by the institution of higher education,
137-66
151+72
138152 enrolled with the equivalent of seven or more quarter hours, regardless of
139-67
153+73
140154 whether the student engages in a trade, profession, or occupation in this state or
141-68
155+74
142156 accepts employment in this state; and
143-69
157+75
144158 (C) an individual domiciled in another state or a foreign country that:
145-70
159+76
146160 (I) is engaged in public, charitable, educational, or religious services for a
147-71
161+77
148162 government agency or an organization that qualifies for tax-exempt status
149-72
163+78
150164 under Internal Revenue Code Section 501(c)(3);
151-73
165+79
152166 (II) is not compensated for services rendered other than expense
153-74
167+80
154168 reimbursements; and
155-75
169+81
156170 (III) is temporarily in Utah for a period not to exceed 24 months.
157-76
171+82
158172 (iii) Notwithstanding Subsections [(1)(b)(i) and (ii)] (1)(c)(i) and (ii), "resident"
159-77
173+83
160174 includes the owner of a vehicle equipped with an automated driving system as
161-78
175+84
162176 defined in Section 41-26-102.1 if the vehicle is physically present in the state for
163-79
177+85
164178 more than 30 consecutive days in a calendar year.
165-80
179+86
166180 (2)(a) Registration under this chapter is not required for any:
167-81
181+87
168182 (i) vehicle registered in another state and owned by a nonresident of the state or
169-82
183+88
170184 operating under a temporary registration permit issued by the division or a dealer
171-83
185+89
172186 authorized by this chapter, driven or moved upon a highway in conformance with
173-84
187+90
174188 the provisions of this chapter relating to manufacturers, transporters, dealers, lien
175-85
189+91
176190 holders, or interstate vehicles;
177-86
191+92
178192 (ii) vehicle driven or moved upon a highway only for the purpose of crossing the
179-87
193+93
180194 highway from one property to another;
181-88
195+94
182196 (iii) implement of husbandry, whether of a type otherwise subject to registration or
183-89
197+95
184198 not, that is only incidentally operated or moved upon a highway;
185-90
199+96
186200 (iv) special mobile equipment;
187-91
201+- 3 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
202+97
188203 (v) vehicle owned or leased by the federal government;
189-92
204+98
190205 (vi) motor vehicle not designed, used, or maintained for the transportation of
191-93
206+99
192207 passengers for hire or for the transportation of property if the motor vehicle is
193-94
208+100
194209 registered in another state and is owned and operated by a nonresident of this state;
195-95
210+101
196211 (vii) vehicle or combination of vehicles designed, used, or maintained for the
197-- 3 - S.B. 52 Enrolled Copy
198-96
212+102
199213 transportation of persons for hire or for the transportation of property if the
200-97
214+103
201215 vehicle or combination of vehicles is registered in another state and is owned and
202-98
216+104
203217 operated by a nonresident of this state and if the vehicle or combination of
204-99
218+105
205219 vehicles has a gross laden weight of 26,000 pounds or less;
206-100
220+106
207221 (viii) trailer of 750 pounds or less unladen weight and not designed, used, and
208-101
222+107
209223 maintained for hire for the transportation of property or person;
210-102
224+108
211225 (ix) single-axle trailer unless that trailer is:
212-103
226+109
213227 (A) a commercial vehicle;
214-104
228+110
215229 (B) a trailer designed, used, and maintained for hire for the transportation of
216-105
230+111
217231 property or person; or
218-106
232+112
219233 (C) a travel trailer, camping trailer, or fifth wheel trailer of 750 pounds or more
220-107
234+113
221235 laden weight;
222-108
236+114
223237 (x) manufactured home or mobile home;
224-109
238+115
225239 (xi) off-highway vehicle currently registered under Section 41-22-3 if the
226-110
240+116
227241 off-highway vehicle is:
228-111
242+117
229243 (A) being towed;
230-112
244+118
231245 (B) operated on a street or highway designated as open to off-highway vehicle
232-113
246+119
233247 use; or
234-114
248+120
235249 (C) operated in the manner prescribed in Subsections 41-22-10.3(1) through (3);
236-115
250+121
237251 (xii) off-highway implement of husbandry operated in the manner prescribed in
238-116
252+122
239253 Subsections 41-22-5.5(3) through (5);
240-117
254+123
241255 (xiii) modular and prebuilt homes conforming to the uniform building code and
242-118
256+124
243257 presently regulated by the United States Department of Housing and Urban
244-119
258+125
245259 Development that are not constructed on a permanent chassis;
246-120
260+126
247261 (xiv) electric assisted bicycle defined under Section 41-6a-102;
248-121
262+127
249263 (xv) motor assisted scooter defined under Section 41-6a-102; or
250-122
264+128
251265 (xvi) electric personal assistive mobility device defined under Section 41-6a-102.
252-123
266+129
253267 (b) For purposes of an implement of husbandry as described in Subsection (2)(a)(iii),
254-124
268+130
255269 incidental operation on a highway includes operation that is:
256-125
270+- 4 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
271+131
257272 (i) transportation of raw agricultural materials or other agricultural related operations;
258-126
273+132
259274 and
260-127
275+133
261276 (ii) limited to 100 miles round trip on a highway.
262-128
277+134
263278 (3)(a) Unless otherwise exempted under Subsection (2), registration under this chapter is
264-129
279+135
265280 required for any motor vehicle, combination of vehicles, trailer, semitrailer, vintage
266-- 4 - Enrolled Copy S.B. 52
267-130
281+136
268282 vehicle, or restored-modified vehicle within 60 days of the owner establishing
269-131
283+137
270284 residency in this state.
271-132
285+138
272286 (b)(i) The commission may contract with a designated agent described in Chapter
273-133
287+139
274288 12a, Part 8, Uninsured Motorist Identification Database Program, to determine the
275-134
289+140
276290 address for which a contract for owner's or operator's security pertaining to a
277-135
291+141
278292 certain vehicle or vessel is tied.
279-136
293+142
280294 (ii) If the information provided by the designated agent under Subsection (3)(b)(i)
281-137
295+143
282296 indicates that the owner of a vehicle or vessel is a resident of this state, the
283-138
297+144
284298 commission may investigate to ensure compliance with this chapter, Chapter 22,
285-139
299+145
286300 Off-highway Vehicles, Title 59, Chapter 12, Sales and Use Tax Act, and Title 73,
287-140
301+146
288302 Chapter 18, State Boating Act.
289-141
303+147
290304 (c) If the commission's investigation described in Subsection (3)(b)(ii) determines that
291-142
305+148
292306 the owner of the vehicle or vessel is not in compliance with this chapter, Chapter 22,
293-143
307+149
294308 Off-highway Vehicles, Title 59, Chapter 12, Sales and Use Tax Act, or Title 73,
295-144
309+150
296310 Chapter 18, State Boating Act, the commission:
297-145
311+151
298312 (i) may impose a penalty on the owner of the vehicle or vessel of $150; and
299-146
313+152
300314 (ii) shall provide notice of noncompliance to the owner of the vehicle or vessel and
301-147
315+153
302316 allow 60 days after the date on which the notice was issued for the owner of the
303-148
317+154
304318 vehicle or vessel to comply with the provisions identified in the commission's
305-149
319+155
306320 investigation described in Subsection (3)(b)(ii).
307-150
321+156
308322 (d) If the owner of a vehicle or vessel fails to comply as directed within the time period
309-151
323+157
310324 described in Subsection (3)(c), the commission created in Section 41-3-104 may
311-152
325+158
312326 impose on the owner of the vehicle or vessel a penalty equal to the greater of:
313-153
327+159
314328 (i) if the commission finds there was an underpayment of tax under Title 59, Chapter
315-154
329+160
316330 12, Sales and Use Tax Act, a penalty as provided in Subsection 59-1-401(7); or
317-155
331+161
318332 (ii) $500.
319-156
333+162
320334 (e) Upon making a record of the commission's actions, and upon reasonable cause
321-157
335+163
322336 shown, the commission may waive, reduce, or compromise any penalty imposed
323-158
337+164
324338 under Subsection (3)(c) or (3)(d).
325-159
339+- 5 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
340+165
326341 (f)(i) The commission shall deposit money from a penalty under Subsections (3)(c)(i)
327-160
342+166
328343 and (3)(d)(ii) for failure to properly register or title a vehicle or vessel pursuant to
329-161
344+167
330345 this chapter, Chapter 22, Off-highway Vehicles, or Title 73, Chapter 18, State
331-162
346+168
332347 Boating Act, into the Uninsured Motorist Identification Restricted Account
333-163
348+169
334349 created in Section 41-12a-806.
335-- 5 - S.B. 52 Enrolled Copy
336-164
350+170
337351 (ii) The commission shall deposit money from a penalty under this Subsection (3)
338-165
352+171
339353 (d)(i) for failure to pay a sales and use tax under Title 59, Chapter 12, Sales and
340-166
354+172
341355 Use Tax Act, into the General Fund.
342-167
356+173
343357 (4) A motor vehicle that is registered under Section 41-3-306 is exempt from the
344-168
358+174
345359 registration requirements of this part for the time period that the registration under
346-169
360+175
347361 Section 41-3-306 is valid.
348-170
362+176
349363 (5) A vehicle that has been issued a nonrepairable certificate may not be registered under
350-171
364+177
351365 this chapter.
352-172
366+178
353367 Section 2. Section 41-12a-301 is amended to read:
354-173
355-41-12a-301 . Definitions -- Requirement of owner's or operator's security --
356-174
357-Exceptions.
358-175
368+179
369+41-12a-301 (Effective 05/03/23). Definitions -- Requirement of owner's or
370+180
371+operator's security -- Exceptions.
372+181
359373 (1) As used in this section:
360-176
374+182
361375 (a) "Highway" means the same as that term is defined in Section 41-1a-102.
362-177
376+183
363377 (b) "Local education agency" or "LEA" means the same as that term is defined in
364-178
378+184
365379 Section 53E-1-102.
366-179
380+185
367381 (c) "Quasi-public road or parking area" means the same as that term is defined in Section
368-180
382+186
369383 41-6a-214.
370-181
384+187
371385 (2) Except as provided in Subsection (5):
372-182
386+188
373387 (a) every resident owner of a motor vehicle shall maintain owner's or operator's security
374-183
388+189
375389 in effect at any time that the motor vehicle is operated on a highway or on a
376-184
390+190
377391 quasi-public road or parking area or registered within the state; and
378-185
392+191
379393 (b) every nonresident owner of a motor vehicle that has been physically present in this
380-186
394+192
381395 state for:
382-187
396+193
383397 (i) 90 or fewer days during the preceding 365 days shall maintain the type and
384-188
398+194
385399 amount of owner's or operator's security required in his place of residence, in
386-189
400+195
387401 effect continuously throughout the period the motor vehicle remains within Utah;
388-190
402+196
389403 or
390-191
404+197
391405 (ii) more than 90 days during the preceding 365 days shall thereafter maintain
392-192
406+198
393407 owner's or operator's security in effect continuously throughout the period the
394-193
408+- 6 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
409+199
395410 motor vehicle remains within Utah.
396-194
411+200
397412 (3)(a) Except as provided in Subsection (5), the state and all of its political subdivisions
398-195
413+201
399414 and their respective departments, institutions, or agencies shall maintain owner's or
400-196
415+202
401416 operator's security in effect continuously for their motor vehicles.
402-197
417+203
403418 (b) Any other state is considered a nonresident owner of its motor vehicles and is subject
404-- 6 - Enrolled Copy S.B. 52
405-198
419+204
406420 to Subsection (2)(b).
407-199
421+205
408422 (4) The United States, any political subdivision of it, or any of its agencies may maintain
409-200
423+206
410424 owner's or operator's security in effect for their motor vehicles.
411-201
425+207
412426 (5) Owner's or operator's security is not required for any of the following:
413-202
427+208
414428 (a) off-highway vehicles registered under Section 41-22-3 when operated either:
415-203
429+209
416430 (i) on a highway designated as open for off-highway vehicle use; or
417-204
431+210
418432 (ii) in the manner prescribed by Subsections 41-22-10.3(1) through (3);
419-205
433+211
420434 (b) off-highway implements of husbandry operated in the manner prescribed by
421-206
435+212
422436 Subsections 41-22-5.5(3) through (5);
423-207
437+213
424438 (c) electric assisted bicycles as defined under Section 41-6a-102;
425-208
439+214
426440 (d) motor assisted scooters as defined under Section 41-6a-102;
427-209
441+215
428442 (e) electric personal assistive mobility devices as defined under Section 41-6a-102; or
429-210
443+216
430444 (f) an LEA, for a school bus that the LEA authorizes a state entity or political
431-211
445+217
432446 subdivision of the state to use.
433-212
447+218
434448 (6) If an LEA authorizes a state entity or political subdivision of the state to use a school
435-213
449+219
436450 bus:
437-214
451+220
438452 (a) the state entity or political subdivision shall maintain owner's or operator's security
439-215
453+221
440454 during the term of the school bus use in an amount that is greater than or equal to any
441-216
455+222
442456 governmental immunity liability limit;
443-217
457+223
444458 (b) the state entity or the political subdivision shall indemnify and defend the LEA for
445-218
459+224
446460 any claim that arises from the school bus use including a claim directed at the LEA,
447-219
461+225
448462 unless the claim arises from the sole negligence of the LEA; and
449-220
463+226
450464 (c) if the school district maintains owner's or operator's security for the school bus
451-221
465+227
452466 during the term of school bus use, the owner's and operator's security maintained by
453-222
467+228
454468 the state entity or political subdivision of the state is primary to the owner's and
455-223
469+229
456470 operator's security maintained by the LEA.
457-224
471+230
458472 Section 3. Section 41-12a-806 is amended to read:
459-225
460-41-12a-806 . Restricted account -- Creation -- Funding -- Interest -- Purposes.
461-226
473+231
474+41-12a-806 (Effective upon governor's approval). Restricted account -- Creation
475+232
476+-- Funding -- Interest -- Purposes.
477+- 7 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
478+233
462479 (1) There is created within the Transportation Fund a restricted account known as the
463-227
480+234
464481 "Uninsured Motorist Identification Restricted Account."
465-228
482+235
466483 (2) The account consists of money generated from the following revenue sources:
467-229
484+236
468485 (a) money received by the state under Subsection 41-1a-202(3);
469-230
486+237
470487 [(a)] (b) money received by the state under Section 41-1a-1218, the uninsured motorist
471-231
488+238
472489 identification fee;
473-- 7 - S.B. 52 Enrolled Copy
474-232
490+239
475491 [(b)] (c) money received by the state under Section 41-1a-1220, the registration
476-233
492+240
477493 reinstatement fee; and
478-234
494+241
479495 [(c)] (d) appropriations made to the account by the Legislature.
480-235
496+242
481497 (3)(a) The account shall earn interest.
482-236
498+243
483499 (b) All interest earned on account money shall be deposited into the account.
484-237
500+244
485501 (4) The Legislature shall appropriate money from the account to:
486-238
502+245
487503 (a) the department to fund the contract with the designated agent;
488-239
504+246
489505 (b) the department to offset the costs to state and local law enforcement agencies of
490-240
506+247
491507 using the information for the purposes authorized under this part;
492-241
508+248
493509 (c) the State Tax Commission to:
494-242
510+249
495511 (i) offset the costs to the Motor Vehicle Division for revoking and reinstating vehicle
496-243
512+250
497513 registrations under Subsection 41-1a-110(2)(a)(ii); and
498-244
514+251
499515 (ii) cover the contract and other costs of the designated agent for address verification
500-245
516+252
501517 described in Subsection 41-1a-202(3); and
502-246
518+253
503519 (d) the department to reimburse a person for the costs of towing and storing the person's
504-247
520+254
505521 vehicle if:
506-248
522+255
507523 (i) the person's vehicle was impounded in accordance with Subsection 41-1a-1101(4);
508-249
524+256
509525 (ii) the impounded vehicle had owner's or operator's security in effect for the vehicle
510-250
526+257
511527 at the time of the impoundment;
512-251
528+258
513529 (iii) the database indicated that owner's or operator's security was not in effect for the
514-252
530+259
515531 impounded vehicle; and
516-253
532+260
517533 (iv) the department determines that the person's vehicle was wrongfully impounded.
518-254
534+261
519535 (5) The Legislature may appropriate not more than $2,000,000 annually from the account to
520-255
536+262
521537 the Peace Officer Standards and Training Division, created under Section 53-6-103, for
522-256
538+263
523539 use in law enforcement training, including training on the use of the Uninsured Motorist
524-257
525-Identification Database Program created under[ Title 41, Chapter 12a,] Part 8, Uninsured
526-258
540+264
541+Identification Database Program created under[ Title 41,] Chapter 12a, Part 8, Uninsured
542+265
527543 Motorist Identification Database Program.
528-259
544+266
529545 (6)(a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
530-260
546+- 8 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
547+267
531548 Act, the department shall hold a hearing to determine whether a person's vehicle was
532-261
549+268
533550 wrongfully impounded under Subsection 41-1a-1101(4).
534-262
551+269
535552 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
536-263
553+270
537554 division shall make rules establishing procedures for a person to apply for a
538-264
555+271
539556 reimbursement under Subsection (4)(d).
540-265
557+272
541558 (c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
542-- 8 - Enrolled Copy S.B. 52
543-266
559+273
544560 person applies for the reimbursement within six months from the date that the motor
545-267
561+274
546562 vehicle was impounded.
547-268
563+275
548564 Section 4. Section 59-12-107 is amended to read:
549-269
550-59-12-107 . Definitions -- Collection, remittance, and payment of tax by sellers or
551-270
552-other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
553-271
554-liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
555-272
556-Penalties and interest.
557-273
565+276
566+59-12-107 (Effective 05/04/22). Definitions -- Collection, remittance, and
567+277
568+payment of tax by sellers or other persons -- Returns -- Reports -- Direct payment by
569+278
570+purchaser of vehicle -- Other liability for collection -- Rulemaking authority -- Credits --
571+279
572+Treatment of bad debt -- Penalties and interest.
573+280
558574 (1) As used in this section:
559-274
575+281
560576 (a) "Ownership" means direct ownership or indirect ownership through a parent,
561-275
577+282
562578 subsidiary, or affiliate.
563-276
579+283
564580 (b) "Related seller" means a seller that:
565-277
581+284
566582 (i) meets one or more of the criteria described in Subsection (2)(a)(i); and
567-278
583+285
568584 (ii) delivers tangible personal property, a service, or a product transferred
569-279
585+286
570586 electronically that is sold:
571-280
587+287
572588 (A) by a seller that does not meet one or more of the criteria described in
573-281
589+288
574590 Subsection (2)(a)(i); and
575-282
591+289
576592 (B) to a purchaser in the state.
577-283
593+290
578594 (c) "Substantial ownership interest" means an ownership interest in a business entity if
579-284
595+291
580596 that ownership interest is greater than the degree of ownership of equity interest
581-285
597+292
582598 specified in 15 U.S.C. Sec. 78p, with respect to a person other than a director or an
583-286
599+293
584600 officer.
585-287
601+294
586602 (2)(a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section
587-288
603+295
588604 59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit
589-289
605+296
590606 the sales and use taxes imposed by this chapter if within this state the seller:
591-290
607+297
592608 (i) has or utilizes:
593-291
609+298
594610 (A) an office;
595-292
611+299
596612 (B) a distribution house;
597-293
613+300
598614 (C) a sales house;
599-294
615+- 9 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
616+301
600617 (D) a warehouse;
601-295
618+302
602619 (E) a service enterprise; or
603-296
620+303
604621 (F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
605-297
622+304
606623 (ii) maintains a stock of goods;
607-298
624+305
608625 (iii) regularly solicits orders, regardless of whether or not the orders are accepted in
609-299
626+306
610627 the state, unless the seller's only activity in the state is:
611-- 9 - S.B. 52 Enrolled Copy
612-300
628+307
613629 (A) advertising; or
614-301
630+308
615631 (B) solicitation by:
616-302
632+309
617633 (I) direct mail;
618-303
634+310
619635 (II) electronic mail;
620-304
636+311
621637 (III) the Internet;
622-305
638+312
623639 (IV) telecommunications service; or
624-306
640+313
625641 (V) a means similar to Subsection (2)(a)(iii)(A) or (B);
626-307
642+314
627643 (iv) regularly engages in the delivery of property in the state other than by:
628-308
644+315
629645 (A) common carrier; or
630-309
646+316
631647 (B) United States mail; or
632-310
648+317
633649 (v) regularly engages in an activity directly related to the leasing or servicing of
634-311
650+318
635651 property located within the state.
636-312
652+319
637653 (b) A seller is considered to be engaged in the business of selling tangible personal
638-313
654+320
639655 property, a product transferred electronically, or a service for use in the state, and
640-314
656+321
641657 shall pay or collect and remit the sales and use taxes imposed by this chapter if:
642-315
658+322
643659 (i) the seller holds a substantial ownership interest in, or is owned in whole or in
644-316
660+323
645661 substantial part by, a related seller; and
646-317
662+324
647663 (ii)(A) the seller sells the same or a substantially similar line of products as the
648-318
664+325
649665 related seller and does so under the same or a substantially similar business
650-319
666+326
651667 name; or
652-320
668+327
653669 (B) the place of business described in Subsection (2)(a)(i) of the related seller or
654-321
670+328
655671 an in state employee of the related seller is used to advertise, promote, or
656-322
672+329
657673 facilitate sales by the seller to a purchaser.
658-323
674+330
659675 (c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the
660-324
676+331
661677 criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect
662-325
678+332
663679 and remit the sales and use taxes imposed by this chapter under Subsection (2)(b)
664-326
680+333
665681 shall pay or collect and remit the sales and use tax imposed by this chapter if the
666-327
682+334
667683 seller:
668-328
684+- 10 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
685+335
669686 (i) sells tangible personal property, products transferred electronically, or services for
670-329
687+336
671688 storage, use, or consumption in the state; and
672-330
689+337
673690 (ii) in either the previous calendar year or the current calendar year:
674-331
691+338
675692 (A) receives gross revenue from the sale of tangible personal property, products
676-332
693+339
677694 transferred electronically, or services for storage, use, or consumption in the
678-333
695+340
679696 state of more than $100,000; or
680-- 10 - Enrolled Copy S.B. 52
681-334
697+341
682698 (B) sells tangible personal property, products transferred electronically, or
683-335
699+342
684700 services for storage, use, or consumption in the state in 200 or more separate
685-336
701+343
686702 transactions.
687-337
703+344
688704 (d) A seller that does not meet one or more of the criteria provided for in Subsection
689-338
705+345
690706 (2)(a) or is not a seller required to pay or collect and remit sales and use taxes under
691-339
707+346
692708 Subsection (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
693-340
709+347
694710 (i) collect a tax on a transaction described in Subsection 59-12-103(1); and
695-341
711+348
696712 (ii) remit the tax to the commission as provided in this part.
697-342
713+349
698714 (e) The collection and remittance of a tax under this chapter by a seller that is registered
699-343
715+350
700716 under the agreement may not be used as a factor in determining whether that seller is
701-344
717+351
702718 required by this Subsection (2) to:
703-345
719+352
704720 (i) pay a tax, fee, or charge under:
705-346
721+353
706722 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
707-347
723+354
708724 (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
709-348
725+355
710726 (C) Section 19-6-714;
711-349
727+356
712728 (D) Section 19-6-805;
713-350
729+357
714730 (E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
715-351
731+358
716732 Charges; or
717-352
733+359
718734 (F) this title; or
719-353
735+360
720736 (ii) collect and remit a tax, fee, or charge under:
721-354
737+361
722738 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
723-355
739+362
724740 (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
725-356
741+363
726742 (C) Section 19-6-714;
727-357
743+364
728744 (D) Section 19-6-805;
729-358
745+365
730746 (E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
731-359
747+366
732748 Charges; or
733-360
749+367
734750 (F) this title.
735-361
751+368
736752 (f) A person shall pay a use tax imposed by this chapter on a transaction described in
737-362
753+- 11 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
754+369
738755 Subsection 59-12-103(1) if:
739-363
756+370
740757 (i) the seller did not collect a tax imposed by this chapter on the transaction; and
741-364
758+371
742759 (ii) the person:
743-365
760+372
744761 (A) stores the tangible personal property or product transferred electronically in
745-366
762+373
746763 the state;
747-367
764+374
748765 (B) uses the tangible personal property or product transferred electronically in the
749-- 11 - S.B. 52 Enrolled Copy
750-368
766+375
751767 state; or
752-369
768+376
753769 (C) consumes the tangible personal property or product transferred electronically
754-370
770+377
755771 in the state.
756-371
772+378
757773 (g) The ownership of property that is located at the premises of a printer's facility with
758-372
774+379
759775 which the retailer has contracted for printing and that consists of the final printed
760-373
776+380
761777 product, property that becomes a part of the final printed product, or copy from
762-374
778+381
763779 which the printed product is produced, shall not result in the retailer being considered
764-375
780+382
765781 to have or maintain an office, distribution house, sales house, warehouse, service
766-376
782+383
767783 enterprise, or other place of business, or to maintain a stock of goods, within this
768-377
784+384
769785 state.
770-378
786+385
771787 (3)(a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this
772-379
788+386
773789 chapter from a purchaser.
774-380
790+387
775791 (b) A seller may not collect as tax an amount, without regard to fractional parts of one
776-381
792+388
777793 cent, in excess of the tax computed at the rates prescribed by this chapter.
778-382
794+389
779795 (c)(i) Each seller shall:
780-383
796+390
781797 (A) give the purchaser a receipt for the tax collected; or
782-384
798+391
783799 (B) bill the tax as a separate item and declare the name of this state and the seller's
784-385
800+392
785801 sales and use tax license number on the invoice for the sale.
786-386
802+393
787803 (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
788-387
804+394
789805 and relieves the purchaser of the liability for reporting the tax to the commission
790-388
806+395
791807 as a consumer.
792-389
808+396
793809 (d) A seller is not required to maintain a separate account for the tax collected, but is
794-390
810+397
795811 considered to be a person charged with receipt, safekeeping, and transfer of public
796-391
812+398
797813 money.
798-392
814+399
799815 (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
800-393
816+400
801817 benefit of the state and for payment to the commission in the manner and at the time
802-394
818+401
803819 provided for in this chapter.
804-395
820+402
805821 (f) If any seller, during any reporting period, collects as a tax an amount in excess of the
806-396
822+- 12 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
823+403
807824 lawful state and local percentage of total taxable sales allowed under this chapter, the
808-397
825+404
809826 seller shall remit to the commission the full amount of the tax imposed under this
810-398
827+405
811828 chapter, plus any excess.
812-399
829+406
813830 (g) If the accounting methods regularly employed by the seller in the transaction of the
814-400
831+407
815832 seller's business are such that reports of sales made during a calendar month or
816-401
833+408
817834 quarterly period will impose unnecessary hardships, the commission may accept
818-- 12 - Enrolled Copy S.B. 52
819-402
835+409
820836 reports at intervals that, in the commission's opinion, will better suit the convenience
821-403
837+410
822838 of the taxpayer or seller and will not jeopardize collection of the tax.
823-404
839+411
824840 (h)(i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
825-405
841+412
826842 and until such time as the commission accepts specie legal tender for the payment
827-406
843+413
828844 of a tax under this chapter, if the commission requires a seller to remit a tax under
829-407
845+414
830846 this chapter in legal tender other than specie legal tender, the seller shall state on
831-408
847+415
832848 the seller's books and records and on an invoice, bill of sale, or similar document
833-409
849+416
834850 provided to the purchaser:
835-410
851+417
836852 (A) the purchase price in specie legal tender and in the legal tender the seller is
837-411
853+418
838854 required to remit to the commission;
839-412
855+419
840856 (B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in
841-413
857+420
842858 specie legal tender and in the legal tender the seller is required to remit to the
843-414
859+421
844860 commission;
845-415
861+422
846862 (C) the tax rate under this chapter applicable to the purchase; and
847-416
863+423
848864 (D) the date of the purchase.
849-417
865+424
850866 (ii)(A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount
851-418
867+425
852868 of tax due under Subsection (3)(h)(i), a seller shall use the most recent London
853-419
869+426
854870 fixing price for the specie legal tender the purchaser paid.
855-420
871+427
856872 (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
857-421
873+428
858874 the commission may make rules for determining the amount of tax due under
859-422
875+429
860876 Subsection (3)(h)(i) if the London fixing price is not available for a particular
861-423
877+430
862878 day.
863-424
879+431
864880 (4)(a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
865-425
881+432
866882 sales or use tax imposed by this chapter is due and payable to the commission
867-426
883+433
868884 quarterly on or before the last day of the month next succeeding each quarterly
869-427
885+434
870886 calendar period.
871-428
887+435
872888 (b)(i) Each seller shall, on or before the last day of the month next succeeding each
873-429
889+436
874890 quarterly calendar period, file with the commission a return for the preceding
875-430
891+- 13 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
892+437
876893 quarterly period.
877-431
894+438
878895 (ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
879-432
896+439
880897 tax required under this chapter to be collected or paid for the period covered by
881-433
898+440
882899 the return.
883-434
900+441
884901 (c) Except as provided in Subsection (5)(c), a return shall contain information and be in
885-435
902+442
886903 a form the commission prescribes by rule.
887-- 13 - S.B. 52 Enrolled Copy
888-436
904+443
889905 (d)(i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
890-437
906+444
891907 based on the total nonexempt sales made during the period for which the return is
892-438
908+445
893909 filed, including both cash and charge sales.
894-439
910+446
895911 (ii) For a sale that includes the delivery or installation of tangible personal property at
896-440
912+447
897913 a location other than a seller's place of business described in Subsection (2)(a)(i),
898-441
914+448
899915 if the delivery or installation is separately stated on an invoice or receipt, a seller
900-442
916+449
901917 may compute the tax due on the sale for purposes of Subsection (4)(d)(i) based on
902-443
918+450
903919 the amount the seller receives for that sale during each period for which the seller
904-444
920+451
905921 receives payment for the sale.
906-445
922+452
907923 (e)(i) The use tax as computed in the return shall be based on the total amount of
908-446
924+453
909925 purchases for storage, use, or other consumption in this state made during the
910-447
926+454
911927 period for which the return is filed, including both cash and charge purchases.
912-448
928+455
913929 (ii)(A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a
914-449
930+456
915931 purchaser that is required to remit taxes under this chapter, but is not required
916-450
932+457
917933 to remit taxes monthly in accordance with Section 59-12-108, and that converts
918-451
934+458
919935 tangible personal property into real property.
920-452
936+459
921937 (B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit
922-453
938+460
923939 the taxes due under this chapter on tangible personal property for which the
924-454
940+461
925941 qualifying purchaser claims an exemption as allowed under Subsection
926-455
942+462
927943 59-12-104(23) or (25) based on the period in which the qualifying purchaser
928-456
944+463
929945 receives payment, in accordance with Subsection (4)(e)(ii)(C), for the
930-457
946+464
931947 conversion of the tangible personal property into real property.
932-458
948+465
933949 (C) A qualifying purchaser remitting taxes due under this chapter in accordance
934-459
950+466
935951 with Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of
936-460
952+467
937953 tax due on the qualifying purchaser's purchase of the tangible personal property
938-461
954+468
939955 that was converted into real property multiplied by a fraction, the numerator of
940-462
956+469
941957 which is the payment received in the period for the qualifying purchaser's sale
942-463
958+470
943959 of the tangible personal property that was converted into real property and the
944-464
960+- 14 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
961+471
945962 denominator of which is the entire sales price for the qualifying purchaser's
946-465
963+472
947964 sale of the tangible personal property that was converted into real property.
948-466
965+473
949966 (D) A qualifying purchaser may remit taxes due under this chapter in accordance
950-467
967+474
951968 with this Subsection (4)(e)(ii) only if the books and records that the qualifying
952-468
969+475
953970 purchaser keeps in the qualifying purchaser's regular course of business
954-469
971+476
955972 identify by reasonable and verifiable standards that the tangible personal
956-- 14 - Enrolled Copy S.B. 52
957-470
973+477
958974 property was converted into real property.
959-471
975+478
960976 (f)(i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
961-472
977+479
962978 Utah Administrative Rulemaking Act, the commission may by rule extend the
963-473
979+480
964980 time for making returns and paying the taxes.
965-474
981+481
966982 (ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
967-475
983+482
968984 (g) The commission may require returns and payment of the tax to be made for other
969-476
985+483
970986 than quarterly periods if the commission considers it necessary in order to ensure the
971-477
987+484
972988 payment of the tax imposed by this chapter.
973-478
989+485
974990 (h)(i) The commission may require a seller that files a simplified electronic return
975-479
991+486
976992 with the commission to file an additional electronic report with the commission.
977-480
993+487
978994 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
979-481
995+488
980996 the commission may make rules providing:
981-482
997+489
982998 (A) the information required to be included in the additional electronic report
983-483
999+490
9841000 described in Subsection (4)(h)(i); and
985-484
1001+491
9861002 (B) one or more due dates for filing the additional electronic report described in
987-485
1003+492
9881004 Subsection (4)(h)(i).
989-486
1005+493
9901006 (5)(a) As used in this Subsection (5) and Subsection (6)(b), " voluntary seller" means a
991-487
1007+494
9921008 seller that is:
993-488
1009+495
9941010 (i) registered under the agreement;
995-489
1011+496
9961012 (ii) described in Subsection (2)(d); and
997-490
1013+497
9981014 (iii) not a:
999-491
1015+498
10001016 (A) model 1 seller;
1001-492
1017+499
10021018 (B) model 2 seller; or
1003-493
1019+500
10041020 (C) model 3 seller.
1005-494
1021+501
10061022 (b)(i) Except as provided in Subsection (5)(b)(ii), a tax a voluntary seller collects in
1007-495
1023+502
10081024 accordance with Subsection (2)(d) is due and payable:
1009-496
1025+503
10101026 (A) to the commission;
1011-497
1027+504
10121028 (B) annually; and
1013-498
1029+- 15 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
1030+505
10141031 (C) on or before the last day of the month immediately following the last day of
1015-499
1032+506
10161033 each calendar year.
1017-500
1034+507
10181035 (ii) The commission may require that a tax a voluntary seller collects in accordance
1019-501
1036+508
10201037 with Subsection (2)(d) be due and payable:
1021-502
1038+509
10221039 (A) to the commission; and
1023-503
1040+510
10241041 (B) on the last day of the month immediately following any month in which the
1025-- 15 - S.B. 52 Enrolled Copy
1026-504
1042+511
10271043 seller accumulates a total of at least $1,000 in agreement sales and use tax.
1028-505
1044+512
10291045 (c)(i) If a voluntary seller remits a tax to the commission in accordance with
1030-506
1046+513
10311047 Subsection (5)(b), the voluntary seller shall file a return:
1032-507
1048+514
10331049 (A) with the commission;
1034-508
1050+515
10351051 (B) with respect to the tax;
1036-509
1052+516
10371053 (C) containing information prescribed by the commission; and
1038-510
1054+517
10391055 (D) on a form prescribed by the commission.
1040-511
1056+518
10411057 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1042-512
1058+519
10431059 the commission shall make rules prescribing:
1044-513
1060+520
10451061 (A) the information required to be contained in a return described in Subsection
1046-514
1062+521
10471063 (5)(c)(i); and
1048-515
1064+522
10491065 (B) the form described in Subsection (5)(c)(i)(D).
1050-516
1066+523
10511067 (d) A tax a voluntary seller collects in accordance with this Subsection (5) shall be
1052-517
1068+524
10531069 calculated on the basis of the total amount of taxable transactions under Subsection
1054-518
1070+525
10551071 59-12-103(1) the voluntary seller completes, including:
1056-519
1072+526
10571073 (i) a cash transaction; and
1058-520
1074+527
10591075 (ii) a charge transaction.
1060-521
1076+528
10611077 (6)(a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
1062-522
1078+529
10631079 electronic return collects in accordance with this chapter is due and payable:
1064-523
1080+530
10651081 (i) monthly on or before the last day of the month immediately following the month
1066-524
1082+531
10671083 for which the seller collects a tax under this chapter; and
1068-525
1084+532
10691085 (ii) for the month for which the seller collects a tax under this chapter.
1070-526
1086+533
10711087 (b) A tax a voluntary seller that files a simplified electronic return collects in accordance
1072-527
1088+534
10731089 with this chapter is due and payable as provided in Subsection (5).
1074-528
1090+535
10751091 (7)(a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
1076-529
1092+536
10771093 purchaser shall pay the sales or use tax directly to the commission if the vehicle is
1078-530
1094+537
10791095 subject to titling or registration under the laws of this state.
1080-531
1096+538
10811097 (b) The commission shall collect the tax described in Subsection (7)(a) when the vehicle
1082-532
1098+- 16 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
1099+539
10831100 is titled or registered.
1084-533
1101+540
10851102 (c) If a commission investigation under Section 41-1a-202 determines that an owner of a
1086-534
1103+541
10871104 vehicle or vessel is not in compliance with this chapter, the owner shall pay a liability
1088-535
1105+542
10891106 under this chapter directly to the commission if the vehicle or vessel is subject to
1090-536
1107+543
10911108 titling or registration under the laws of this state.
1092-537
1109+544
10931110 (8) If any sale of tangible personal property or any other taxable transaction under
1094-- 16 - Enrolled Copy S.B. 52
1095-538
1111+545
10961112 Subsection 59-12-103(1), is made by a wholesaler to a retailer:
1097-539
1113+546
10981114 (a) the wholesaler is not responsible for the collection or payment of the tax imposed on
1099-540
1115+547
11001116 the sale; and
1101-541
1117+548
11021118 (b) the retailer is responsible for the collection or payment of the tax imposed on the sale
1103-542
1119+549
11041120 if:
1105-543
1121+550
11061122 (i) the retailer represents that the tangible personal property, product transferred
1107-544
1123+551
11081124 electronically, or service is purchased by the retailer for resale; and
1109-545
1125+552
11101126 (ii) the tangible personal property, product transferred electronically, or service is not
1111-546
1127+553
11121128 subsequently resold.
1113-547
1129+554
11141130 (9) If any sale of property or service subject to the tax is made to a person prepaying sales
1115-548
1131+555
11161132 or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
1117-549
1133+556
11181134 contractor or subcontractor of that person:
1119-550
1135+557
11201136 (a) the person to whom such payment or consideration is payable is not responsible for
1121-551
1137+558
11221138 the collection or payment of the sales or use tax; and
1123-552
1139+559
11241140 (b) the person prepaying the sales or use tax is responsible for the collection or payment
1125-553
1141+560
11261142 of the sales or use tax if the person prepaying the sales or use tax represents that the
1127-554
1143+561
11281144 amount prepaid as sales or use tax has not been fully credited against sales or use tax
1129-555
1145+562
11301146 due and payable under the rules promulgated by the commission.
1131-556
1147+563
11321148 (10)(a) For purposes of this Subsection (10):
1133-557
1149+564
11341150 (i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that
1135-558
1151+565
11361152 term is defined in Section 166, Internal Revenue Code.
1137-559
1153+566
11381154 (ii) "Bad debt" does not include:
1139-560
1155+567
11401156 (A) an amount included in the purchase price of tangible personal property, a
1141-561
1157+568
11421158 product transferred electronically, or a service that is:
1143-562
1159+569
11441160 (I) not a transaction described in Subsection 59-12-103(1); or
1145-563
1161+570
11461162 (II) exempt under Section 59-12-104;
1147-564
1163+571
11481164 (B) a financing charge;
1149-565
1165+572
11501166 (C) interest;
1151-566
1167+- 17 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
1168+573
11521169 (D) a tax imposed under this chapter on the purchase price of tangible personal
1153-567
1170+574
11541171 property, a product transferred electronically, or a service;
1155-568
1172+575
11561173 (E) an uncollectible amount on tangible personal property or a product transferred
1157-569
1174+576
11581175 electronically that:
1159-570
1176+577
11601177 (I) is subject to a tax under this chapter; and
1161-571
1178+578
11621179 (II) remains in the possession of a seller until the full purchase price is paid;
1163-- 17 - S.B. 52 Enrolled Copy
1164-572
1180+579
11651181 (F) an expense incurred in attempting to collect any debt; or
1166-573
1182+580
11671183 (G) an amount that a seller does not collect on repossessed property.
1168-574
1184+581
11691185 (b)(i) To the extent an amount remitted in accordance with Subsection (4)(d) later
1170-575
1186+582
11711187 becomes bad debt, a seller may deduct the bad debt from the total amount from
1172-576
1188+583
11731189 which a tax under this chapter is calculated on a return.
1174-577
1190+584
11751191 (ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from
1176-578
1192+585
11771193 the total amount of taxes due under this chapter the amount of tax the qualifying
1178-579
1194+586
11791195 purchaser paid on the qualifying purchaser's purchase of tangible personal
1180-580
1196+587
11811197 property converted into real property to the extent that:
1182-581
1198+588
11831199 (A) tax was remitted in accordance with Subsection (4)(e) on that tangible
1184-582
1200+589
11851201 personal property converted into real property;
1186-583
1202+590
11871203 (B) the qualifying purchaser's sale of that tangible personal property converted
1188-584
1204+591
11891205 into real property later becomes bad debt; and
1190-585
1206+592
11911207 (C) the books and records that the qualifying purchaser keeps in the qualifying
1192-586
1208+593
11931209 purchaser's regular course of business identify by reasonable and verifiable
1194-587
1210+594
11951211 standards that the tangible personal property was converted into real property.
1196-588
1212+595
11971213 (c) A seller may file a refund claim with the commission if:
1198-589
1214+596
11991215 (i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
1200-590
1216+597
12011217 the amount of the seller's sales that are subject to a tax under this chapter for that
1202-591
1218+598
12031219 same time period; and
1204-592
1220+599
12051221 (ii) as provided in Section 59-1-1410.
1206-593
1222+600
12071223 (d) A bad debt deduction under this section may not include interest.
1208-594
1224+601
12091225 (e) A bad debt may be deducted under this Subsection (10) on a return for the time
1210-595
1226+602
12111227 period during which the bad debt:
1212-596
1228+603
12131229 (i) is written off as uncollectible in the seller's books and records; and
1214-597
1230+604
12151231 (ii) would be eligible for a bad debt deduction:
1216-598
1232+605
12171233 (A) for federal income tax purposes; and
1218-599
1234+606
12191235 (B) if the seller were required to file a federal income tax return.
1220-600
1236+- 18 - 03-05 11:39 3rd Sub. (Ivory) S.B. 52
1237+607
12211238 (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
1222-601
1239+608
12231240 claims a refund under this Subsection (10), the seller shall report and remit a tax
1224-602
1241+609
12251242 under this chapter:
1226-603
1243+610
12271244 (i) on the portion of the bad debt the seller recovers; and
1228-604
1245+611
12291246 (ii) on a return filed for the time period for which the portion of the bad debt is
1230-605
1247+612
12311248 recovered.
1232-- 18 - Enrolled Copy S.B. 52
1233-606
1249+613
12341250 (g) For purposes of reporting a recovery of a portion of bad debt under Subsection (10)(f),
1235-607
1251+614
12361252 a seller shall apply amounts received on the bad debt in the following order:
1237-608
1253+615
12381254 (i) in a proportional amount:
1239-609
1255+616
12401256 (A) to the purchase price of the tangible personal property, product transferred
1241-610
1257+617
12421258 electronically, or service; and
1243-611
1259+618
12441260 (B) to the tax due under this chapter on the tangible personal property, product
1245-612
1261+619
12461262 transferred electronically, or service; and
1247-613
1263+620
12481264 (ii) to:
1249-614
1265+621
12501266 (A) interest charges;
1251-615
1267+622
12521268 (B) service charges; and
1253-616
1269+623
12541270 (C) other charges.
1255-617
1271+624
12561272 (h) A seller's certified service provider may make a deduction or claim a refund for bad
1257-618
1273+625
12581274 debt on behalf of the seller:
1259-619
1275+626
12601276 (i) in accordance with this Subsection (10); and
1261-620
1277+627
12621278 (ii) if the certified service provider credits or refunds the entire amount of the bad
1263-621
1279+628
12641280 debt deduction or refund to the seller.
1265-622
1281+629
12661282 (i) A seller may allocate bad debt among the states that are members of the agreement if
1267-623
1283+630
12681284 the seller's books and records support that allocation.
1269-624
1285+631
12701286 (11)(a) A seller may not, with intent to evade any tax, fail to timely remit the full
1271-625
1287+632
12721288 amount of tax required by this chapter.
1273-626
1289+633
12741290 (b) A violation of this section is punishable as provided in Section 59-1-401.
1275-627
1291+634
12761292 (c) Each person that fails to pay any tax to the state or any amount of tax required to be
1277-628
1293+635
12781294 paid to the state, except amounts determined to be due by the commission under
1279-629
1295+636
12801296 Chapter 1, Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111,
1281-630
1297+637
12821298 within the time required by this chapter, or that fails to file any return as required by
1283-631
1299+638
12841300 this chapter, shall pay, in addition to the tax, penalties and interest as provided in
1285-632
1301+639
12861302 Sections 59-1-401 and 59-1-402.
1287-633
1303+640
12881304 (d) For purposes of prosecution under this section, each quarterly tax period in which a
1289-634
1305+- 19 - 3rd Sub. (Ivory) S.B. 52 03-05 11:39
1306+641
12901307 seller, with intent to evade any tax, collects a tax and fails to timely remit the full
1291-635
1308+642
12921309 amount of the tax required to be remitted constitutes a separate offense.
1293-636
1310+643
12941311 Section 5. Effective date.
1295-637
1312+644
12961313 This bill takes effect:
1297-638
1314+645
12981315 (1) except as provided in Subsection (2), May 7, 2025; or
1299-639
1316+646
13001317 (2) if approved by two-thirds of all the members elected to each house:
1301-- 19 - S.B. 52 Enrolled Copy
1302-640
1318+647
13031319 (a) upon approval by the governor;
1304-641
1320+648
13051321 (b) without the governor's signature, the day following the constitutional time limit of
1306-642
1322+649
13071323 Utah Constitution, Article VII, Section 8; or
1308-643
1324+650
13091325 (c) in the case of a veto, the date of veto override.
1326+651
1327+Section 6. Coordinating S.B. 52 with S.B. 195.
1328+652
1329+If S.B. 52, Vehicle Registration Modifications, and S.B. 195, Transportation
1330+653
1331+Amendments, both pass and become law, the Legislature intends that, on May 7, 2025:
1332+654
1333+(1) the changes in S.B. 195 to the following sections not be made: Section 41-6a-102,
1334+655
1335+Section 41-6a-1102, and Section 41-1a-1116; and
1336+656
1337+(2) the following sections enacted in S.B. 195 be deleted: Section 41-6a-1121 and Section
1338+657
1339+41-6a-1122.
13101340 - 20 -