Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 225 First Substitute (2020GS)

Sponsor

Sen. Bramble, C.

Final action

Governor Signed 3/28/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• modifies the charge imposed on a transaction for prepaid wireless telecommunications service to support the Universal Public Telecommunications Service Support Fund;
• provides that the seller in a transaction for prepaid wireless telecommunications service shall collect the charge and remit the revenue to the State Tax Commission;
• allows the State Tax Commission to share certain information with the Public Service Commission related to charges on prepaid wireless telecommunications service remitted to the State Tax Commission; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PREPAID WIRELESS TELECOMMUNICATIONS SERVICE
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Curtis S. Bramble
House Sponsor: 
Francis D. Gibson
LONG TITLE
General Description:
This bill modifies provisions related to prepaid wireless telecommunications service.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ modifies the charge imposed on a transaction for prepaid wireless
telecommunications service to support the Universal Public Telecommunications
Service Support Fund;
▸ provides that the seller in a transaction for prepaid wireless telecommunications
service shall collect the charge and remit the revenue to the State Tax Commission;
▸ allows the State Tax Commission to share certain information with the Public
Service Commission related to charges on prepaid wireless telecommunications
service remitted to the State Tax Commission; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
54-8b-15
, as last amended by Laws of Utah 2017, Chapter 423
59-1-306
, as last amended by Laws of Utah 2019, Chapter 136
59-1-401
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
59-1-402
, as last amended by Laws of Utah 2018, Chapter 329
59-1-403
, as last amended by Laws of Utah 2019, Chapter 61
59-1-1402
, as last amended by Laws of Utah 2018, Chapter 329
59-12-107
, as last amended by Laws of Utah 2019, Chapter 486
59-12-108
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
59-12-128
, as last amended by Laws of Utah 2017, Chapter 430
63H-7a-205
, as last amended by Laws of Utah 2017, Chapter 430
63H-7a-304
, as last amended by Laws of Utah 2019, Chapter 509
63H-7a-403
, as last amended by Laws of Utah 2019, Chapter 509
69-2-101
, as renumbered and amended by Laws of Utah 2017, Chapter 430
69-2-405
, as last amended by Laws of Utah 2019, Chapter 509
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
54-8b-15
 is amended to read:
54-8b-15.
Universal Public Telecommunications Service Support Fund --
Commission duties -- Charges -- Lifeline program.
(1) For purposes of this section:
(a) "Broadband Internet access service" means the same as that term is defined in 47
C.F.R. Sec. 8.2.
(b) "Carrier of last resort" means:
(i) an incumbent telephone corporation; or
(ii) a telecommunications corporation that, under Section 
54-8b-2.1
:
(A) has a certificate of public convenience and necessity to provide local exchange
service; and
(B) has an obligation to provide public telecommunications service to any customer or
class of customers that requests service within the local exchange.
(c) "Connection" means an authorized session that uses Internet protocol or a
functionally equivalent technology standard to enable an end-user to initiate or receive a call
from the public switched network.
(d) "Fund" means the Universal Public Telecommunications Service Support Fund
established in this section.
(e) "Non-rate-of-return regulated" means having price flexibility under Section
54-8b-2.3
.
(f) "Rate-of-return regulated" means subject to regulation under Section 
54-4-4
.
(g) "Wholesale broadband Internet access service" means the end-user loop component
of Internet access provided by a rate-of-return regulated carrier of last resort that is used to
provide, at retail:
(i) combined consumer voice and broadband Internet access; or
(ii) stand-alone, consumer, broadband-only Internet access.
(2) (a) There is established an expendable special revenue fund known as the
"Universal Public Telecommunications Service Support Fund."
(b) The fund shall provide a mechanism for a qualifying carrier of last resort to obtain
specific, predictable, and sufficient funds to deploy and manage, for the purpose of providing
service to end-users, networks capable of providing:
(i) access lines;
(ii) connections; or
(iii) wholesale broadband Internet access service.
(c) The commission shall develop, by rule made in accordance with Title 63G, Chapter
3, Utah Administrative Rulemaking Act, and consistent with this section, policies and
procedures to govern the administration of the fund.
(3) Subject to this section, the commission shall use funds in the Universal Public
Telecommunications Service Support Fund to:
(a) fund the hearing and speech impaired program described in Section 
54-8b-10
;
(b) fund a lifeline program that covers the reasonable cost to an eligible
telecommunications carrier, as determined by the commission, to offer lifeline service
consistent with the Federal Communications Commission's lifeline program for low-income
consumers;
(c) fund, for the purpose of providing service to end-users, a rate-of-return regulated or
non-rate-of-return regulated carrier of last resort's deployment and management of networks
capable of providing:
(i) access lines;
(ii) connections; or
(iii) wholesale broadband Internet access service that is consistent with Federal
Communications Commission rules; and
(d) fund one-time distributions from the Universal Public Telecommunications Service
Support Fund for a non-rate-of-return regulated carrier of last resort's deployment and
management of networks capable of providing:
(i) access lines;
(ii) connections; or
(iii) broadband Internet access service.
(4) (a) A rate-of-return regulated carrier of last resort is eligible for payment from the
Universal Public Telecommunications Service Support Fund if:
(i) the rate-of-return regulated carrier of last resort provides the services described in
Subsections (3)(c)(i) through (iii); and
(ii) the rate-of-return regulated carrier of last resort's reasonable costs, as determined by
the commission, to provide public telecommunications service and wholesale broadband
Internet access service are greater than the sum of:
(A) the rate-of-return regulated carrier of last resort's revenue from basic residential
service considered affordable by the commission;
(B) the rate-of-return regulated carrier of last resort's regulated revenue derived from
providing other public telecommunications service;
(C) the rate-of-return regulated carrier of last resort's revenue from rates approved by
the Federal Communications Commission for wholesale broadband Internet access service; and
(D) the amount the rate-of-return regulated carrier of last resort receives from federal
universal service funds.
(b) A non-rate-of-return regulated carrier of last resort is eligible for payment from the
Universal Public Telecommunications Service Support Fund for reimbursement of reasonable
costs as determined by the commission if the non-rate-of-return regulated carrier meets criteria
that are:
(i) consistent with Subsections (2) and (3); and
(ii) developed by the commission by rule made in accordance with Title 63G, Chapter
3, Utah Administrative Rulemaking Act.
(5) A rate-of-return regulated carrier of last resort that qualifies for funds under this
section:
(a) is entitled to a rate of return equal to the weighted average cost of capital rate of
return prescribed by the Federal Communications Commission for rate-of-return regulated
carriers; and
(b) may use any depreciation method allowed by the Federal Communications
Commission.
(6) (a) The commission shall determine if a rate-of-return regulated carrier of last resort
is correctly applying a depreciation method described in Subsection (5)(b).
(b) If the commission determines under Subsection (6)(a) that a rate-of-return regulated
carrier of last resort is incorrectly applying a depreciation method or that the rate-of-return
regulated carrier of last resort is not using a depreciation method allowed by the Federal
Communications Commission, the commission shall issue an order that provides corrections to
the rate-of-return regulated carrier of last resort's method of depreciation.
(7) A carrier of last resort that receives funds from the Universal Public
Telecommunications Service Support Fund may only use the funds in accordance with this
section within the area for which the carrier of last resort has a carrier of last resort obligation.
(8) 
(a)
 [
Each
] 
Except as provided in Subsection (8)(b), each
 access line provider and
each connection provider shall contribute to the Universal Public Telecommunications Service
Support Fund through an explicit charge assessed by the commission on the access line
provider or connection provider.
(b) The charge described in Subsection (8)(a) does not apply to a prepaid wireless
telecommunications service, as defined in Section 
69-2-405
, that is subject to the service
charge described in Subsection 
69-2-405
(2)(b).
(9) The commission shall calculate the amount of each explicit charge described in
Subsection (8) using a method developed by the commission by rule made in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(a) does not discriminate against:
(i) any access line or connection provider; or
(ii) the technology used by any access line or connection provider;
(b) is competitively neutral; and
(c) is a function of an access line or connection provider's:
(i) annual intrastate revenue;
(ii) number of access lines or connections in the state; or
(iii) a combination of an access line or connection provider's annual intrastate revenue
and number of access lines or connections in the state.
(10) The commission shall develop the method described in Subsection (9) before
January 1, 2018.
(11) An access line or connection provider that provides mobile telecommunications
service shall contribute to the Universal Public Telecommunications Service Support Fund
only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec.
116 et seq.
(12) Nothing in this section shall be construed to enlarge or reduce the commission's
jurisdiction or authority, as provided in other provisions of this title.
(13) A person that fails to make a required contribution to the fund created by this
section, or that fails to comply with a commission directive concerning the person's books,
records, or other information required by the commission to administer this section, is subject
to applicable penalties.
(14) Nothing in this section gives the commission the authority:
(a) to regulate broadband Internet access service;
(b) to require a carrier of last resort to provide broadband Internet access service; or
(c) assess a contribution in violation of the Internet Tax Freedom Act, 47 U.S.C. Sec.
151 note.
(15) (a) A facilities-based or nonfacilities-based wireless telecommunication provider
is eligible for distributions from the Universal Telecommunications Service Support Fund
under the lifeline program described in Subsection (3)(b) for providing lifeline service that is
consistent with the Federal Communications Commission's lifeline program for low-income
consumers.
(b) Except as provided in Subsection (15)(c), the commission may impose reasonable
conditions for providing a distribution to a wireless telecommunication provider under the
lifeline program described in Subsection (3)(b).
(c) The commission may not require a wireless telecommunication provider to offer
unlimited local calling to a lifeline customer as a condition of receiving a distribution under the
lifeline program described in Subsection (3)(b).
(16) The commission shall report to the Public Utilities, Energy, and Technology
Interim Committee each year before November 1 regarding:
(a) the contribution method described in Subsection (9);
(b) the amount of distributions from and contributions to the Universal Public
Telecommunications Service Support Fund during the last fiscal year;
(c) the availability of services for which Subsection (3) permits Universal Public
Telecommunications Service Support Fund funds to be used; and
(d) the effectiveness and efficiency of the Universal Public Telecommunications
Service Support Fund.
Section 2. Section 
59-1-306
 is amended to read:
59-1-306.
Definition -- State Tax Commission Administrative Charge Account --
Amount of administrative charge -- Deposit of revenues into the restricted account --
Interest deposited into General Fund -- Expenditure of money deposited into the
restricted account.
(1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge
the commission administers under:
(a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(c) Section 
19-6-714
;
(d) Section 
19-6-805
;
(e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
(f) Section 
59-27-105
;
(g) Section 
63H-1-205
; or
(h) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless Telecommunications
Service Charges.
(2) There is created a restricted account within the General Fund known as the "State
Tax Commission Administrative Charge Account."
(3) Subject to the other provisions of this section, the restricted account shall consist of
administrative charges the commission retains and deposits in accordance with this section.
(4) For purposes of this section, the administrative charge is a percentage of revenues
the commission collects from each qualifying tax, fee, or charge of not to exceed the lesser of:
(a) 1.5%; or
(b) an equal percentage of revenues the commission collects from each qualifying tax,
fee, or charge sufficient to cover the cost to the commission of administering the qualifying
taxes, fees, or charges.
(5) The commission shall deposit an administrative charge into the restricted account.
(6) Interest earned on the restricted account shall be deposited into the General Fund.
(7) The commission shall expend money appropriated by the Legislature to the
commission from the restricted account to administer qualifying taxes, fees, or charges.
Section 3. Section 
59-1-401
 is amended to read:
59-1-401.
Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
of limitations -- Commission authority to waive, reduce, or compromise penalty or
interest.
(1) As used in this section:
(a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
commission:
(i) has implemented the commission's GenTax system; and
(ii) at least 30 days before implementing the commission's GenTax system as described
in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
stating:
(A) the date the commission will implement the GenTax system with respect to the tax,
fee, or charge; and
(B) that, at the time the commission implements the GenTax system with respect to the
tax, fee, or charge:
(I) a person that files a return after the due date as described in Subsection (2)(a) is
subject to the penalty described in Subsection (2)(c)(ii); and
(II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
subject to the penalty described in Subsection (3)(b)(ii).
(b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
charge, the later of:
(i) the date on which the commission implements the commission's GenTax system
with respect to the tax, fee, or charge; or
(ii) 30 days after the date the commission provides the notice described in Subsection
(1)(a)(ii) with respect to the tax, fee, or charge.
(c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
(A) a tax, fee, or charge the commission administers under:
(I) this title;
(II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(IV) Section 
19-6-410.5
;
(V) Section 
19-6-714
;
(VI) Section 
19-6-805
;
(VII) Section 
34A-2-202
;
(VIII) Section 
40-6-14
; or
(IX) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless
Telecommunications
 Service Charges; or
(B) another amount that by statute is subject to a penalty imposed under this section.
(ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 
41-1a-301
;
(B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(C) Chapter 2, Property Tax Act, except for Section 
59-2-1309
;
(D) Chapter 3, Tax Equivalent Property Act; or
(E) Chapter 4, Privilege Tax.
(d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
tax, fee, or charge.
(2) (a) The due date for filing a return is:
(i) if the person filing the return is not allowed by law an extension of time for filing
the return, the day on which the return is due as provided by law; or
(ii) if the person filing the return is allowed by law an extension of time for filing the
return, the earlier of:
(A) the date the person files the return; or
(B) the last day of that extension of time as allowed by law.
(b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
return after the due date described in Subsection (2)(a).
(c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
(i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
tax, fee, or charge:
(A) $20; or
(B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
(ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
fee, or charge, beginning on the activation date for the tax, fee, or charge:
(A) $20; or
(B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
filed no later than five days after the due date described in Subsection (2)(a);
(II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
more than five days after the due date but no later than 15 days after the due date described in
Subsection (2)(a); or
(III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
filed more than 15 days after the due date described in Subsection (2)(a).
(d) This Subsection (2) does not apply to:
(i) an amended return; or
(ii) a return with no tax due.
(3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
(i) the person files a return on or before the due date for filing a return described in
Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
date;
(ii) the person:
(A) is subject to a penalty under Subsection (2)(b); and
(B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
due date for filing a return described in Subsection (2)(a);
(iii) (A) the person is subject to a penalty under Subsection (2)(b); and
(B) the commission estimates an amount of tax due for that person in accordance with
Subsection 
59-1-1406
(2);
(iv) the person:
(A) is mailed a notice of deficiency; and
(B) within a 30-day period after the day on which the notice of deficiency described in
Subsection (3)(a)(iv)(A) is mailed:
(I) does not file a petition for redetermination or a request for agency action; and
(II) fails to pay the tax, fee, or charge due on a return;
(v) (A) the commission:
(I) issues an order constituting final agency action resulting from a timely filed petition
for redetermination or a timely filed request for agency action; or
(II) is considered to have denied a request for reconsideration under Subsection
63G-4-302
(3)(b) resulting from a timely filed petition for redetermination or a timely filed
request for agency action; and
(B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
after the date the commission:
(I) issues the order constituting final agency action described in Subsection
(3)(a)(v)(A)(I); or
(II) is considered to have denied the request for reconsideration described in
Subsection (3)(a)(v)(A)(II); or
(vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
of a final judicial decision resulting from a timely filed petition for judicial review.
(b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
(i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
respect to an unactivated tax, fee, or charge:
(A) $20; or
(B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
(ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
respect to an activated tax, fee, or charge, beginning on the activation date:
(A) $20; or
(B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
return described in Subsection (2)(a);
(II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
fee, or charge due on the return is paid more than five days after the due date for filing a return
described in Subsection (2)(a) but no later than 15 days after that due date; or
(III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
return described in Subsection (2)(a).
(4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
quarterly installments required by Sections 
59-5-107
, 
59-5-207
, 
59-7-504
, and 
59-9-104
, there
shall be added a penalty in an amount determined by applying the interest rate provided under
Section 
59-1-402
 plus four percentage points to the amount of the underpayment for the period
of the underpayment.
(b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
excess of the required installment over the amount, if any, of the installment paid on or before
the due date for the installment.
(ii) The period of the underpayment shall run from the due date for the installment to
whichever of the following dates is the earlier:
(A) the original due date of the tax return, without extensions, for the taxable year; or
(B) with respect to any portion of the underpayment, the date on which that portion is
paid.
(iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
against unpaid required installments in the order in which the installments are required to be
paid.
(5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
person allowed by law an extension of time for filing a corporate franchise or income tax return
under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
including the extension of time, the person fails to pay:
(i) for a person filing a corporate franchise or income tax return under Chapter 7,
Corporate Franchise and Income Taxes, the payment required by Subsection 
59-7-507
(1)(b); or
(ii) for a person filing an individual income tax return under Chapter 10, Individual
Income Tax Act, the payment required by Subsection 
59-10-516
(2).
(b) For purposes of Subsection (5)(a), the penalty per month during the period of the
extension of time for filing the return is an amount equal to 2% of the tax due on the return,
unpaid as of the day on which the return is due as provided by law.
(6) If a person does not file a return within an extension of time allowed by Section
59-7-505
 or 
59-10-516
, the person:
(a) is not subject to a penalty in the amount described in Subsection (5)(b); and
(b) is subject to a penalty in an amount equal to the sum of:
(i) a late file penalty in an amount equal to the greater of:
(A) $20; or
(B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
provided by law, not including the extension of time; and
(ii) a late pay penalty in an amount equal to the greater of:
(A) $20; or
(B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
due as provided by law, not including the extension of time.
(7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
in this Subsection (7)(a).
(i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
is due to negligence.
(ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
underpayment.
(iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
the penalty is the greater of $500 per period or 50% of the entire underpayment.
(iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
(b) If the commission determines that a person is liable for a penalty imposed under
Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
penalty.
(i) The notice of proposed penalty shall:
(A) set forth the basis of the assessment; and
(B) be mailed by certified mail, postage prepaid, to the person's last-known address.
(ii) Upon receipt of the notice of proposed penalty, the person against whom the
penalty is proposed may:
(A) pay the amount of the proposed penalty at the place and time stated in the notice;
or
(B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
(iii) A person against whom a penalty is proposed in accordance with this Subsection
(7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
the commission.
(iv) (A) If the commission determines that a person is liable for a penalty under this
Subsection (7), the commission shall assess the penalty and give notice and demand for
payment.
(B) The commission shall mail the notice and demand for payment described in
Subsection (7)(b)(iv)(A):
(I) to the person's last-known address; and
(II) in accordance with Section 
59-1-1404
.
(c) A seller that voluntarily collects a tax under Subsection 
59-12-107
(2)(d) is not
subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
(i) a court of competent jurisdiction issues a final unappealable judgment or order
determining that:
(A) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(B) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through (d); or
(ii) the commission issues a final unappealable administrative order determining that:
(A) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(B) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through (d).
(d) A seller that voluntarily collects a tax under Subsection 
59-12-107
(2)(d) is not
subject to the penalty under Subsection (7)(a)(ii) if:
(i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
determining that:
(I) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(II) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through (d); or
(B) the commission issues a final unappealable administrative order determining that:
(I) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(II) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through (d); and
(ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
nonfrivolous argument for the extension, modification, or reversal of existing law or the
establishment of new law.
(8) (a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an
information return, information report, or a complete supporting schedule is $50 for each
information return, information report, or supporting schedule up to a maximum of $1,000.
(b) If an employer is subject to a penalty under Subsection (13), the employer may not
be subject to a penalty under Subsection (8)(a).
(c) If an employer is subject to a penalty under this Subsection (8) for failure to file a
return in accordance with Subsection 
59-10-406
(3) on or before the due date described in
Subsection 
59-10-406
(3)(b)(ii), the commission may not impose a penalty under this
Subsection (8) unless the return is filed more than 14 days after the due date described in
Subsection 
59-10-406
(3)(b)(ii).
(9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
or impede administration of a law relating to a tax, fee, or charge and files a purported return
that fails to contain information from which the correctness of reported tax, fee, or charge
liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
substantially incorrect, the penalty is $500.
(10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
Subsection 
59-12-108
(1)(a):
(i) is subject to a penalty described in Subsection (2); and
(ii) may not retain the percentage of sales and use taxes that would otherwise be
allowable under Subsection 
59-12-108
(2).
(b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
required by Subsection 
59-12-108
(1)(a)(ii)(B):
(i) is subject to a penalty described in Subsection (2); and
(ii) may not retain the percentage of sales and use taxes that would otherwise be
allowable under Subsection 
59-12-108
(2).
(11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
(i) commits an act described in Subsection (11)(b) with respect to one or more of the
following documents:
(A) a return;
(B) an affidavit;
(C) a claim; or
(D) a document similar to Subsections (11)(a)(i)(A) through (C);
(ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
will be used in connection with any material matter administered by the commission; and
(iii) knows that the document described in Subsection (11)(a)(i), if used in connection
with any material matter administered by the commission, would result in an understatement of
another person's liability for a tax, fee, or charge.
(b) The following acts apply to Subsection (11)(a)(i):
(i) preparing any portion of a document described in Subsection (11)(a)(i);
(ii) presenting any portion of a document described in Subsection (11)(a)(i);
(iii) procuring any portion of a document described in Subsection (11)(a)(i);
(iv) advising in the preparation or presentation of any portion of a document described
in Subsection (11)(a)(i);
(v) aiding in the preparation or presentation of any portion of a document described in
Subsection (11)(a)(i);
(vi) assisting in the preparation or presentation of any portion of a document described
in Subsection (11)(a)(i); or
(vii) counseling in the preparation or presentation of any portion of a document
described in Subsection (11)(a)(i).
(c) For purposes of Subsection (11)(a), the penalty:
(i) shall be imposed by the commission;
(ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
(iii) is in addition to any other penalty provided by law.
(d) The commission may seek a court order to enjoin a person from engaging in
conduct that is subject to a penalty under this Subsection (11).
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules prescribing the documents that are similar to Subsections
(11)(a)(i)(A) through (C).
(12) (a) As provided in Section 
76-8-1101
, criminal offenses and penalties are as
provided in Subsections (12)(b) through (e).
(b) (i) A person who is required by this title or any laws the commission administers or
regulates to register with or obtain a license or permit from the commission, who operates
without having registered or secured a license or permit, or who operates when the registration,
license, or permit is expired or not current, is guilty of a class B misdemeanor.
(ii) Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(b)(i), the
penalty may not:
(A) be less than $500; or
(B) exceed $1,000.
(c) (i) With respect to a tax, fee, or charge, a person who knowingly and intentionally,
and without a reasonable good faith basis, fails to make, render, sign, or verify a return within
the time required by law or to supply information within the time required by law, or who
makes, renders, signs, or verifies a false or fraudulent return or statement, or who supplies false
or fraudulent information, is guilty of a third degree felony.
(ii) Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(c)(i), the
penalty may not:
(A) be less than $1,000; or
(B) exceed $5,000.
(d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
guilty of a second degree felony.
(ii) Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(d)(i), the
penalty may not:
(A) be less than $1,500; or
(B) exceed $25,000.
(e) (i) A person is guilty of a second degree felony if that person commits an act:
(A) described in Subsection (12)(e)(ii) with respect to one or more of the following
documents:
(I) a return;
(II) an affidavit;
(III) a claim; or
(IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
(B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
Subsection (12)(e)(i)(A):
(I) is false or fraudulent as to any material matter; and
(II) could be used in connection with any material matter administered by the
commission.
(ii) The following acts apply to Subsection (12)(e)(i):
(A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
(B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
(C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
(D) advising in the preparation or presentation of any portion of a document described
in Subsection (12)(e)(i)(A);
(E) aiding in the preparation or presentation of any portion of a document described in
Subsection (12)(e)(i)(A);
(F) assisting in the preparation or presentation of any portion of a document described
in Subsection (12)(e)(i)(A); or
(G) counseling in the preparation or presentation of any portion of a document
described in Subsection (12)(e)(i)(A).
(iii) This Subsection (12)(e) applies:
(A) regardless of whether the person for which the document described in Subsection
(12)(e)(i)(A) is prepared or presented:
(I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
(II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
(B) in addition to any other penalty provided by law.
(iv) Notwithstanding Section 
76-3-301
, for purposes of this Subsection (12)(e), the
penalty may not:
(A) be less than $1,500; or
(B) exceed $25,000.
(v) The commission may seek a court order to enjoin a person from engaging in
conduct that is subject to a penalty under this Subsection (12)(e).
(vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules prescribing the documents that are similar to Subsections
(12)(e)(i)(A)(I) through (III).
(f) The statute of limitations for prosecution for a violation of this Subsection (12) is
the later of six years:
(i) from the date the tax should have been remitted; or
(ii) after the day on which the person commits the criminal offense.
(13) (a) Subject to Subsection (13)(b), an employer that is required to file a form with
the commission in accordance with Subsection 
59-10-406
(8) is subject to a penalty described
in Subsection (13)(b) if the employer:
(i) fails to file the form with the commission in an electronic format approved by the
commission as required by Subsection 
59-10-406
(8);
(ii) fails to file the form on or before the due date provided in Subsection 
59-10-406
(8);
(iii) fails to provide accurate information on the form; or
(iv) fails to provide all of the information required by the Internal Revenue Service to
be contained on the form.
(b) For purposes of Subsection (13)(a), the penalty is:
(i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the
form in accordance with Subsection 
59-10-406
(8), more than 14 days after the due date
provided in Subsection 
59-10-406
(8) but no later than 30 days after the due date provided in
Subsection 
59-10-406
(8);
(ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the
form in accordance with Subsection 
59-10-406
(8), more than 30 days after the due date
provided in Subsection 
59-10-406
(8) but on or before June 1; or
(iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
(A) files the form in accordance with Subsection 
59-10-406
(8) after June 1; or
(B) fails to file the form.
(14) Upon making a record of its actions, and upon reasonable cause shown, the
commission may waive, reduce, or compromise any of the penalties or interest imposed under
this part.
Section 4. Section 
59-1-402
 is amended to read:
59-1-402.
Definitions -- Interest.
(1) As used in this section:
(a) "Final judicial decision" means a final ruling by a court of this state or the United
States for which the time for any further review or proceeding has expired.
(b) "Retroactive application of a judicial decision" means the application of a final
judicial decision that:
(i) invalidates a state or federal taxation statute; and
(ii) requires the state to provide a refund for an overpayment that was made:
(A) prior to the final judicial decision; or
(B) during the 180-day period after the final judicial decision.
(c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
(A) a tax, fee, or charge the commission administers under:
(I) this title;
(II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(IV) Section 
19-6-410.5
;
(V) Section 
19-6-714
;
(VI) Section 
19-6-805
;
(VII) Section 
34A-2-202
;
(VIII) Section 
40-6-14
; or
(IX) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless
Telecommunications
 Service Charges; or
(B) another amount that by statute is subject to interest imposed under this section.
(ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 
41-1a-301
;
(B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(C) Chapter 2, Property Tax Act, except for Section 
59-2-1309
;
(D) Chapter 3, Tax Equivalent Property Act;
(E) Chapter 4, Privilege Tax; or
(F) Chapter 13, Part 5, Interstate Agreements.
(2) Except as otherwise provided for by law, the interest rate for a calendar year for a
tax, fee, or charge administered by the commission shall be calculated based on the federal
short-term rate determined by the Secretary of the Treasury under Section 6621, Internal
Revenue Code, in effect for the preceding fourth calendar quarter.
(3) The interest rate calculation shall be as follows:
(a) except as provided in Subsection (7), in the case of an overpayment or refund,
simple interest shall be calculated at the rate of two percentage points above the federal
short-term rate; or
(b) in the case of an underpayment, deficiency, or delinquency, simple interest shall be
calculated at the rate of two percentage points above the federal short-term rate.
(4) Notwithstanding Subsection (2) or (3), the interest rate applicable to certain
installment sales for purposes of a tax under Chapter 7, Corporate Franchise and Income Taxes,
shall be determined in accordance with Section 453A, Internal Revenue Code, as provided in
Section 
59-7-112
.
(5) (a) Except as provided in Subsection (5)(c), interest may not be allowed on an
overpayment of a tax, fee, or charge if the overpayment of the tax, fee, or charge is refunded
within:
(i) 45 days after the last date prescribed for filing the return with respect to a tax under
Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
if the return is filed electronically; or
(ii) 90 days after the last date prescribed for filing the return:
(A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
(B) if the return is not filed electronically.
(b) Except as provided in Subsection (5)(c), if the return is filed after the last date
prescribed for filing the return, interest may not be allowed on the overpayment if the
overpayment is refunded within:
(i) 45 days after the date the return is filed:
(A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or
Chapter 10, Individual Income Tax Act; and
(B) if the return is filed electronically; or
(ii) 90 days after the date the return is filed:
(A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
(B) if the return is not filed electronically.
(c) (i) In the case of an amended return, interest on an overpayment shall be allowed:
(A) for a time period:
(I) that begins on the later of:
(Aa) the date the original return was filed; or
(Bb) the due date for filing the original return not including any extensions for filing
the original return; and
(II) that ends on the date the commission receives the amended return; and
(B) if the commission does not make a refund of an overpayment under this Subsection
(5)(c):
(I) if the amended return is with respect to a tax under Chapter 7, Corporate Franchise
and Income Taxes, or Chapter 10, Individual Income Tax Act, and is filed electronically,
within a 45-day period after the date the commission receives the amended return, for a time
period:
(Aa) that begins 46 days after the commission receives the amended return; and
(Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
completes processing the refund of the overpayment; or
(II) if the amended return is with respect to a tax, fee, or charge except for a tax under
Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
or is not filed electronically, within a 90-day period after the date the commission receives the
amended return, for a time period:
(Aa) that begins 91 days after the commission receives the amended return; and
(Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
completes processing the refund of the overpayment.
(ii) For purposes of Subsection (5)(c)(i)(B)(I)(Bb) or (5)(c)(i)(B)(II)(Bb), interest shall
be calculated forward from the preparation date of the refund document to allow for
processing.
(6) Interest on any underpayment, deficiency, or delinquency of a tax, fee, or charge
shall be computed from the time the original return is due, excluding any filing or payment
extensions, to the date the payment is received.
(7) Interest on a refund relating to a tax, fee, or charge may not be paid on any
overpayment that arises from a statute that is determined to be invalid under state or federal
law or declared unconstitutional under the constitution of the United States or Utah if the basis
for the refund is the retroactive application of a judicial decision upholding the claim of
unconstitutionality or the invalidation of a statute.
Section 5. Section 
59-1-403
 is amended to read:
59-1-403.
Confidentiality -- Exceptions -- Penalty -- Application to property tax.
(1) (a) Any of the following may not divulge or make known in any manner any
information gained by that person from any return filed with the commission:
(i) a tax commissioner;
(ii) an agent, clerk, or other officer or employee of the commission; or
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b) An official charged with the custody of a return filed with the commission is not
required to produce the return or evidence of anything contained in the return in any action or
proceeding in any court, except:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding under:
(A) this title; or
(B) other law under which persons are required to file returns with the commission;
(iii) on behalf of the commission in any action or proceeding to which the commission
is a party; or
(iv) on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
pertinent to the action or proceeding.
(2) This section does not prohibit:
(a) a person or that person's duly authorized representative from receiving a copy of
any return or report filed in connection with that person's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c) the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i) who brings action to set aside or review a tax based on the report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under
this title; or
(iii) against whom the state has an unsatisfied money judgment.
(3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, provide for a reciprocal exchange of information with:
(i) the United States Internal Revenue Service; or
(ii) the revenue service of any other state.
(b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
other written statements with the federal government, any other state, any of the political
subdivisions of another state, or any political subdivision of this state, except as limited by
Sections 
59-12-209
 and 
59-12-210
, if the political subdivision, other state, or the federal
government grant substantially similar privileges to this state.
(c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
identity and other information of taxpayers who have failed to file tax returns or to pay any tax
due.
(d) Notwithstanding Subsection (1), the commission shall provide to the director of the
Division of Environmental Response and Remediation, as defined in Section 
19-6-402
, as
requested by the director of the Division of Environmental Response and Remediation, any
records, returns, or other information filed with the commission under Chapter 13, Motor and
Special Fuel Tax Act, or Section 
19-6-410.5
 regarding the environmental assurance program
participation fee.
(e) Notwithstanding Subsection (1), at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a report,
return, or other information filed with the commission under:
(i) Chapter 13, Part 2, Motor Fuel; or
(ii) Chapter 13, Part 4, Aviation Fuel.
(f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
as defined in Section 
59-22-202
, the commission shall report to the manufacturer:
(i) the quantity of cigarettes, as defined in Section 
59-22-202
, produced by the
manufacturer and reported to the commission for the previous calendar year under Section
59-14-407
; and
(ii) the quantity of cigarettes, as defined in Section 
59-22-202
, produced by the
manufacturer for which a tax refund was granted during the previous calendar year under
Section 
59-14-401
 and reported to the commission under Subsection 
59-14-401
(1)(a)(v).
(g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
from selling cigarettes to consumers within the state under Subsection 
59-14-210
(2).
(h) Notwithstanding Subsection (1), the commission may:
(i) provide to the Division of Consumer Protection within the Department of
Commerce and the attorney general data:
(A) reported to the commission under Section 
59-14-212
; or
(B) related to a violation under Section 
59-14-211
; and
(ii) upon request, provide to any person data reported to the commission under
Subsections 
59-14-212
(1)(a) through (c) and Subsection 
59-14-212
(1)(g).
(i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
Management and Budget, provide to the committee or office the total amount of revenues
collected by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the
time period specified by the committee or office.
(j) Notwithstanding Subsection (1), the commission shall make the directory required
by Section 
59-14-603
 available for public inspection.
(k) Notwithstanding Subsection (1), the commission may share information with
federal, state, or local agencies as provided in Subsection 
59-14-606
(3).
(l) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
Recovery Services within the Department of Human Services any relevant information
obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
who has become obligated to the Office of Recovery Services.
(ii) The information described in Subsection (3)(l)(i) may be provided by the Office of
Recovery Services to any other state's child support collection agency involved in enforcing
that support obligation.
(m) (i) Notwithstanding Subsection (1), upon request from the state court
administrator, the commission shall provide to the state court administrator, the name, address,
telephone number, county of residence, and social security number on resident returns filed
under Chapter 10, Individual Income Tax Act.
(ii) The state court administrator may use the information described in Subsection
(3)(m)(i) only as a source list for the master jury list described in Section 
78B-1-106
.
(n) (i) As used in this Subsection (3)(n):
(A) "GOED" means the Governor's Office of Economic Development created in
Section 
63N-1-201
.
(B) "Income tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission under Chapter 7,
Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
(C) "Other tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission except for a return
filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
Income Tax Act.
(D) "Tax information" means income tax information or other tax information.
(ii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
(3)(n)(ii)(B) or (C), the commission shall at the request of GOED provide to GOED all income
tax information.
(B) For purposes of a request for income tax information made under Subsection
(3)(n)(ii)(A), GOED may not request and the commission may not provide to GOED a person's
address, name, social security number, or taxpayer identification number.
(C) In providing income tax information to GOED, the commission shall in all
instances protect the privacy of a person as required by Subsection (3)(n)(ii)(B).
(iii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
(3)(n)(iii)(B), the commission shall at the request of GOED provide to GOED other tax
information.
(B) Before providing other tax information to GOED, the commission shall redact or
remove any name, address, social security number, or taxpayer identification number.
(iv) GOED may provide tax information received from the commission in accordance
with this Subsection (3)(n) only:
(A) as a fiscal estimate, fiscal note information, or statistical information; and
(B) if the tax information is classified to prevent the identification of a particular
return.
(v) (A) A person may not request tax information from GOED under Title 63G,
Chapter 2, Government Records Access and Management Act, or this section, if GOED
received the tax information from the commission in accordance with this Subsection (3)(n).
(B) GOED may not provide to a person that requests tax information in accordance
with Subsection (3)(n)(v)(A) any tax information other than the tax information GOED
provides in accordance with Subsection (3)(n)(iv).
(o) Notwithstanding Subsection (1), the commission may provide to the governing
board of the agreement or a taxing official of another state, the District of Columbia, the United
States, or a territory of the United States:
(i) the following relating to an agreement sales and use tax:
(A) information contained in a return filed with the commission;
(B) information contained in a report filed with the commission;
(C) a schedule related to Subsection (3)(o)(i)(A) or (B); or
(D) a document filed with the commission; or
(ii) a report of an audit or investigation made with respect to an agreement sales and
use tax.
(p) Notwithstanding Subsection (1), the commission may provide information
concerning a taxpayer's state income tax return or state income tax withholding information to
the Driver License Division if the Driver License Division:
(i) requests the information; and
(ii) provides the commission with a signed release form from the taxpayer allowing the
Driver License Division access to the information.
(q) Notwithstanding Subsection (1), the commission shall provide to the Utah
Communications Authority, or a division of the Utah Communications Authority, the
information requested by the authority under Sections 
63H-7a-302
, 
63H-7a-402
, and
63H-7a-502
.
(r) Notwithstanding Subsection (1), the commission shall provide to the Utah
Educational Savings Plan information related to a resident or nonresident individual's
contribution to a Utah Educational Savings Plan account as designated on the resident or
nonresident's individual income tax return as provided under Section 
59-10-1313
.
(s) Notwithstanding Subsection (1), for the purpose of verifying eligibility under
Sections 
26-18-2.5
 and 
26-40-105
, the commission shall provide an eligibility worker with the
Department of Health or its designee with the adjusted gross income of an individual if:
(i) an eligibility worker with the Department of Health or its designee requests the
information from the commission; and
(ii) the eligibility worker has complied with the identity verification and consent
provisions of Sections 
26-18-2.5
 and 
26-40-105
.
(t) Notwithstanding Subsection (1), the commission may provide to a county, as
determined by the commission, information declared on an individual income tax return in
accordance with Section 
59-10-103.1
 that relates to eligibility to claim a residential exemption
authorized under Section 
59-2-103
.
(u) Notwithstanding Subsection (1), the commission shall provide a report regarding
any access line provider that is over 90 days delinquent in payment to the commission of
amounts the access line provider owes under Title 69, Chapter 2, Part 4, [
Emergency
]
Prepaid Wireless Telecommunications
 Service Charges, to the board of the Utah
Communications Authority created in Section 
63H-7a-201
.
(v) Notwithstanding Subsection (1), the commission shall provide the Department of
Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
previous calendar year under Section 
59-24-103.5
.
(w) Notwithstanding Subsection (1), the commission may, upon request, provide to the
Department of Workforce Services any information received under Chapter 10, Part 4,
Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
(x) Notwithstanding Subsection (1), the commission may provide the Public Service
Commission or the Division of Public Utilities information related to a seller that collects and
remits to the commission a charge described in Subsection 
69-2-405
(2), including the seller's
identity and the number of charges described in Subsection 
69-2-405
(2) that the seller collects.
(4) (a) Each report and return shall be preserved for at least three years.
(b) After the three-year period provided in Subsection (4)(a) the commission may
destroy a report or return.
(5) (a) Any individual who violates this section is guilty of a class A misdemeanor.
(b) If the individual described in Subsection (5)(a) is an officer or employee of the
state, the individual shall be dismissed from office and be disqualified from holding public
office in this state for a period of five years thereafter.
(c) Notwithstanding Subsection (5)(a) or (b), GOED, when requesting information in
accordance with Subsection (3)(n)(iii), or an individual who requests information in
accordance with Subsection (3)(n)(v):
(i) is not guilty of a class A misdemeanor; and
(ii) is not subject to:
(A) dismissal from office in accordance with Subsection (5)(b); or
(B) disqualification from holding public office in accordance with Subsection (5)(b).
(6) Except as provided in Section 
59-1-404
, this part does not apply to the property tax.
Section 6. Section 
59-1-1402
 is amended to read:
59-1-1402.
Definitions.
As used in this part:
(1) "Administrative cost" means a fee imposed to cover:
(a) the cost of filing;
(b) the cost of administering a garnishment;
(c) the amount the commission pays to a depository institution in accordance with Part
17, Depository Institution Data Match System and Levy Act; or
(d) a cost similar to Subsections (1)(a) through (c) as determined by the commission by
rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2) "Books and records" means the following made available in printed or electronic
format:
(a) an account;
(b) a book;
(c) an invoice;
(d) a memorandum;
(e) a paper;
(f) a record; or
(g) an item similar to Subsections (2)(a) through (f) as determined by the commission
by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3) "Deficiency" means:
(a) the amount by which a tax, fee, or charge exceeds the difference between:
(i) the sum of:
(A) the amount shown as the tax, fee, or charge by a person on the person's return; and
(B) any amount previously assessed, or collected without assessment, as a deficiency;
and
(ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
to that tax, fee, or charge; or
(b) if a person does not show an amount as a tax, fee, or charge on the person's return,
or if a person does not make a return, the amount by which the tax, fee, or charge exceeds:
(i) the amount previously assessed, or collected without assessment, as a deficiency;
and
(ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
to that tax, fee, or charge.
(4) "Garnishment" means any legal or equitable procedure through which one or more
of the following are required to be withheld for payment of an amount a person owes:
(a) an asset of the person held by another person; or
(b) the earnings of the person.
(5) "Liability" means the following that a person is required to remit to the
commission:
(a) a tax, fee, or charge;
(b) an addition to a tax, fee, or charge;
(c) an administrative cost;
(d) interest that accrues in accordance with Section 
59-1-402
; or
(e) a penalty that accrues in accordance with Section 
59-1-401
.
(6) (a) Subject to Subsection (6)(b), "mathematical error" is as defined in Section
6213(g)(2), Internal Revenue Code.
(b) The reference to Section 6213(g)(2), Internal Revenue Code, in Subsection (6)(a)
means:
(i) the reference to Section 6213(g)(2), Internal Revenue Code, in effect for the taxable
year; or
(ii) a corresponding or comparable provision of the Internal Revenue Code as
amended, redesignated, or reenacted.
(7) (a) Except as provided in Subsection (7)(b), "tax, fee, or charge" means:
(i) a tax, fee, or charge the commission administers under:
(A) this title;
(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D) Section 
19-6-410.5
;
(E) Section 
19-6-714
;
(F) Section 
19-6-805
;
(G) Section 
34A-2-202
;
(H) Section 
40-6-14
; or
(I) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless Telecommunications
Service Charges; or
(ii) another amount that by statute is administered by the commission.
(b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 
41-1a-301
;
(ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(iii) Chapter 2, Property Tax Act;
(iv) Chapter 3, Tax Equivalent Property Act;
(v) Chapter 4, Privilege Tax; or
(vi) Chapter 13, Part 5, Interstate Agreements.
(8) "Transferee" means:
(a) a devisee;
(b) a distributee;
(c) a donee;
(d) an heir;
(e) a legatee; or
(f) a person similar to Subsections (8)(a) through (e) as determined by the commission
by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
Section 7. Section 
59-12-107
 is amended to read:
59-12-107.
Definitions -- Collection, remittance, and payment of tax by sellers or
other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
Penalties and interest.
(1) As used in this section:
(a) "Ownership" means direct ownership or indirect ownership through a parent,
subsidiary, or affiliate.
(b) "Related seller" means a seller that:
(i) meets one or more of the criteria described in Subsection (2)(a)(i); and
(ii) delivers tangible personal property, a service, or a product transferred electronically
that is sold:
(A) by a seller that does not meet one or more of the criteria described in Subsection
(2)(a)(i); and
(B) to a purchaser in the state.
(c) "Substantial ownership interest" means an ownership interest in a business entity if
that ownership interest is greater than the degree of ownership of equity interest specified in 15
U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
(2) (a) Except as provided in Subsection (2)(f), Section 
59-12-107.1
, or Section
59-12-123
, and subject to Subsection (2)(g), each seller shall pay or collect and remit the sales
and use taxes imposed by this chapter if within this state the seller:
(i) has or utilizes:
(A) an office;
(B) a distribution house;
(C) a sales house;
(D) a warehouse;
(E) a service enterprise; or
(F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
(ii) maintains a stock of goods;
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
state, unless the seller's only activity in the state is:
(A) advertising; or
(B) solicitation by:
(I) direct mail;
(II) electronic mail;
(III) the Internet;
(IV) telecommunications service; or
(V) a means similar to Subsection (2)(a)(iii)(A) or (B);
(iv) regularly engages in the delivery of property in the state other than by:
(A) common carrier; or
(B) United States mail; or
(v) regularly engages in an activity directly related to the leasing or servicing of
property located within the state.
(b) A seller is considered to be engaged in the business of selling tangible personal
property, a product transferred electronically, or a service for use in the state, and shall pay or
collect and remit the sales and use taxes imposed by this chapter if:
(i) the seller holds a substantial ownership interest in, or is owned in whole or in
substantial part by, a related seller; and
(ii) (A) the seller sells the same or a substantially similar line of products as the related
seller and does so under the same or a substantially similar business name; or
(B) the place of business described in Subsection (2)(a)(i) of the related seller or an in
state employee of the related seller is used to advertise, promote, or facilitate sales by the seller
to a purchaser.
(c) Subject to Section 
59-12-107.6
, each seller that does not meet one or more of the
criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit
the sales and use taxes imposed by this chapter under Subsection (2)(b) shall pay or collect and
remit the sales and use tax imposed by this chapter if the seller:
(i) sells tangible personal property, products transferred electronically, or services for
storage, use, or consumption in the state; and
(ii) in either the previous calendar year or the current calendar year:
(A) receives gross revenue from the sale of tangible personal property, products
transferred electronically, or services for storage, use, or consumption in the state of more than
$100,000; or
(B) sells tangible personal property, products transferred electronically, or services for
storage, use, or consumption in the state in 200 or more separate transactions.
(d) A seller that does not meet one or more of the criteria provided for in Subsection
(2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection
(2)(b), Subsection (2)(c), or Section 
59-12-107.6
 may voluntarily:
(i) collect a tax on a transaction described in Subsection 
59-12-103
(1); and
(ii) remit the tax to the commission as provided in this part.
(e) The collection and remittance of a tax under this chapter by a seller that is
registered under the agreement may not be used as a factor in determining whether that seller is
required by this Subsection (2) to:
(i) pay a tax, fee, or charge under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 
19-6-714
;
(D) Section 
19-6-805
;
(E) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless
Telecommunications
 Service Charges; or
(F) this title; or
(ii) collect and remit a tax, fee, or charge under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 
19-6-714
;
(D) Section 
19-6-805
;
(E) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless
Telecommunications
 Service Charges; or
(F) this title.
(f) A person shall pay a use tax imposed by this chapter on a transaction described in
Subsection 
59-12-103
(1) if:
(i) the seller did not collect a tax imposed by this chapter on the transaction; and
(ii) the person:
(A) stores the tangible personal property or product transferred electronically in the
state;
(B) uses the tangible personal property or product transferred electronically in the state;
or
(C) consumes the tangible personal property or product transferred electronically in the
state.
(g) The ownership of property that is located at the premises of a printer's facility with
which the retailer has contracted for printing and that consists of the final printed product,
property that becomes a part of the final printed product, or copy from which the printed
product is produced, shall not result in the retailer being considered to have or maintain an
office, distribution house, sales house, warehouse, service enterprise, or other place of
business, or to maintain a stock of goods, within this state.
(3) (a) Except as provided in Section 
59-12-107.1
, a seller shall collect a tax under this
chapter from a purchaser.
(b) A seller may not collect as tax an amount, without regard to fractional parts of one
cent, in excess of the tax computed at the rates prescribed by this chapter.
(c) (i) Each seller shall:
(A) give the purchaser a receipt for the tax collected; or
(B) bill the tax as a separate item and declare the name of this state and the seller's
sales and use tax license number on the invoice for the sale.
(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
and relieves the purchaser of the liability for reporting the tax to the commission as a
consumer.
(d) A seller is not required to maintain a separate account for the tax collected, but is
considered to be a person charged with receipt, safekeeping, and transfer of public money.
(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
benefit of the state and for payment to the commission in the manner and at the time provided
for in this chapter.
(f) If any seller, during any reporting period, collects as a tax an amount in excess of
the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
shall remit to the commission the full amount of the tax imposed under this chapter, plus any
excess.
(g) If the accounting methods regularly employed by the seller in the transaction of the
seller's business are such that reports of sales made during a calendar month or quarterly period
will impose unnecessary hardships, the commission may accept reports at intervals that, in the
commission's opinion, will better suit the convenience of the taxpayer or seller and will not
jeopardize collection of the tax.
(h) (i) For a purchase paid with specie legal tender as defined in Section 
59-1-1501.1
,
and until such time as the commission accepts specie legal tender for the payment of a tax
under this chapter, if the commission requires a seller to remit a tax under this chapter in legal
tender other than specie legal tender, the seller shall state on the seller's books and records and
on an invoice, bill of sale, or similar document provided to the purchaser:
(A) the purchase price in specie legal tender and in the legal tender the seller is
required to remit to the commission;
(B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie
legal tender and in the legal tender the seller is required to remit to the commission;
(C) the tax rate under this chapter applicable to the purchase; and
(D) the date of the purchase.
(ii) (A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of
tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the
specie legal tender the purchaser paid.
(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for determining the amount of tax due under Subsection (3)(h)(i)
if the London fixing price is not available for a particular day.
(4) (a) Except as provided in Subsections (5) through (7) and Section 
59-12-108
, the
sales or use tax imposed by this chapter is due and payable to the commission quarterly on or
before the last day of the month next succeeding each quarterly calendar period.
(b) (i) Each seller shall, on or before the last day of the month next succeeding each
quarterly calendar period, file with the commission a return for the preceding quarterly period.
(ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
tax required under this chapter to be collected or paid for the period covered by the return.
(c) Except as provided in Subsection (5)(c), a return shall contain information and be in
a form the commission prescribes by rule.
(d) (i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
based on the total nonexempt sales made during the period for which the return is filed,
including both cash and charge sales.
(ii) For a sale that includes the delivery or installation of tangible personal property at a
location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery
or installation is separately stated on an invoice or receipt, a seller may compute the tax due on
the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that
sale during each period for which the seller receives payment for the sale.
(e) (i) The use tax as computed in the return shall be based on the total amount of
purchases for storage, use, or other consumption in this state made during the period for which
the return is filed, including both cash and charge purchases.
(ii) (A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser
that is required to remit taxes under this chapter, but is not required to remit taxes monthly in
accordance with Section 
59-12-108
, and that converts tangible personal property into real
property.
(B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the
taxes due under this chapter on tangible personal property for which the qualifying purchaser
claims an exemption as allowed under Subsection 
59-12-104
(23) or (25) based on the period in
which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C),
for the conversion of the tangible personal property into real property.
(C) A qualifying purchaser remitting taxes due under this chapter in accordance with
Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the
qualifying purchaser's purchase of the tangible personal property that was converted into real
property multiplied by a fraction, the numerator of which is the payment received in the period
for the qualifying purchaser's sale of the tangible personal property that was converted into real
property and the denominator of which is the entire sales price for the qualifying purchaser's
sale of the tangible personal property that was converted into real property.
(D) A qualifying purchaser may remit taxes due under this chapter in accordance with
this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in
the qualifying purchaser's regular course of business identify by reasonable and verifiable
standards that the tangible personal property was converted into real property.
(f) (i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
returns and paying the taxes.
(ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
(g) The commission may require returns and payment of the tax to be made for other
than quarterly periods if the commission considers it necessary in order to ensure the payment
of the tax imposed by this chapter.
(h) (i) The commission may require a seller that files a simplified electronic return with
the commission to file an additional electronic report with the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing:
(A) the information required to be included in the additional electronic report described
in Subsection (4)(h)(i); and
(B) one or more due dates for filing the additional electronic report described in
Subsection (4)(h)(i).
(5) (a) As used in this Subsection (5) and Subsection (6)(b), "remote seller" means a
seller that is:
(i) registered under the agreement;
(ii) described in Subsection (2)(d); and
(iii) not a:
(A) model 1 seller;
(B) model 2 seller; or
(C) model 3 seller.
(b) (i) Except as provided in Subsection (5)(b)(ii), a tax a remote seller collects in
accordance with Subsection (2)(d) is due and payable:
(A) to the commission;
(B) annually; and
(C) on or before the last day of the month immediately following the last day of each
calendar year.
(ii) The commission may require that a tax a remote seller collects in accordance with
Subsection (2)(d) be due and payable:
(A) to the commission; and
(B) on the last day of the month immediately following any month in which the seller
accumulates a total of at least $1,000 in agreement sales and use tax.
(c) (i) If a remote seller remits a tax to the commission in accordance with Subsection
(5)(b), the remote seller shall file a return:
(A) with the commission;
(B) with respect to the tax;
(C) containing information prescribed by the commission; and
(D) on a form prescribed by the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules prescribing:
(A) the information required to be contained in a return described in Subsection
(5)(c)(i); and
(B) the form described in Subsection (5)(c)(i)(D).
(d) A tax a remote seller collects in accordance with this Subsection (5) shall be
calculated on the basis of the total amount of taxable transactions under Subsection
59-12-103
(1) the remote seller completes, including:
(i) a cash transaction; and
(ii) a charge transaction.
(6) (a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
electronic return collects in accordance with this chapter is due and payable:
(i) monthly on or before the last day of the month immediately following the month for
which the seller collects a tax under this chapter; and
(ii) for the month for which the seller collects a tax under this chapter.
(b) A tax a remote seller that files a simplified electronic return collects in accordance
with this chapter is due and payable as provided in Subsection (5).
(7) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
titling or registration under the laws of this state.
(b) The commission shall collect the tax described in Subsection (7)(a) when the
vehicle is titled or registered.
(8) If any sale of tangible personal property or any other taxable transaction under
Subsection 
59-12-103
(1), is made by a wholesaler to a retailer:
(a) the wholesaler is not responsible for the collection or payment of the tax imposed
on the sale; and
(b) the retailer is responsible for the collection or payment of the tax imposed on the
sale if:
(i) the retailer represents that the tangible personal property, product transferred
electronically, or service is purchased by the retailer for resale; and
(ii) the tangible personal property, product transferred electronically, or service is not
subsequently resold.
(9) If any sale of property or service subject to the tax is made to a person prepaying
sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
contractor or subcontractor of that person:
(a) the person to whom such payment or consideration is payable is not responsible for
the collection or payment of the sales or use tax; and
(b) the person prepaying the sales or use tax is responsible for the collection or
payment of the sales or use tax if the person prepaying the sales or use tax represents that the
amount prepaid as sales or use tax has not been fully credited against sales or use tax due and
payable under the rules promulgated by the commission.
(10) (a) For purposes of this Subsection (10):
(i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that term
is defined in Section 166, Internal Revenue Code.
(ii) "Bad debt" does not include:
(A) an amount included in the purchase price of tangible personal property, a product
transferred electronically, or a service that is:
(I) not a transaction described in Subsection 
59-12-103
(1); or
(II) exempt under Section 
59-12-104
;
(B) a financing charge;
(C) interest;
(D) a tax imposed under this chapter on the purchase price of tangible personal
property, a product transferred electronically, or a service;
(E) an uncollectible amount on tangible personal property or a product transferred
electronically that:
(I) is subject to a tax under this chapter; and
(II) remains in the possession of a seller until the full purchase price is paid;
(F) an expense incurred in attempting to collect any debt; or
(G) an amount that a seller does not collect on repossessed property.
(b) (i) To the extent an amount remitted in accordance with Subsection (4)(d) later
becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax
under this chapter is calculated on a return.
(ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the
total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on
the qualifying purchaser's purchase of tangible personal property converted into real property to
the extent that:
(A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal
property converted into real property;
(B) the qualifying purchaser's sale of that tangible personal property converted into real
property later becomes bad debt; and
(C) the books and records that the qualifying purchaser keeps in the qualifying
purchaser's regular course of business identify by reasonable and verifiable standards that the
tangible personal property was converted into real property.
(c) A seller may file a refund claim with the commission if:
(i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
the amount of the seller's sales that are subject to a tax under this chapter for that same time
period; and
(ii) as provided in Section 
59-1-1410
.
(d) A bad debt deduction under this section may not include interest.
(e) A bad debt may be deducted under this Subsection (10) on a return for the time
period during which the bad debt:
(i) is written off as uncollectible in the seller's books and records; and
(ii) would be eligible for a bad debt deduction:
(A) for federal income tax purposes; and
(B) if the seller were required to file a federal income tax return.
(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
claims a refund under this Subsection (10), the seller shall report and remit a tax under this
chapter:
(i) on the portion of the bad debt the seller recovers; and
(ii) on a return filed for the time period for which the portion of the bad debt is
recovered.
(g) For purposes of reporting a recovery of a portion of bad debt under Subsection
(10)(f), a seller shall apply amounts received on the bad debt in the following order:
(i) in a proportional amount:
(A) to the purchase price of the tangible personal property, product transferred
electronically, or service; and
(B) to the tax due under this chapter on the tangible personal property, product
transferred electronically, or service; and
(ii) to:
(A) interest charges;
(B) service charges; and
(C) other charges.
(h) A seller's certified service provider may make a deduction or claim a refund for bad
debt on behalf of the seller:
(i) in accordance with this Subsection (10); and
(ii) if the certified service provider credits or refunds the entire amount of the bad debt
deduction or refund to the seller.
(i) A seller may allocate bad debt among the states that are members of the agreement
if the seller's books and records support that allocation.
(11) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
amount of tax required by this chapter.
(b) A violation of this section is punishable as provided in Section 
59-1-401
.
(c) Each person that fails to pay any tax to the state or any amount of tax required to be
paid to the state, except amounts determined to be due by the commission under Chapter 1,
Part 14, Assessment, Collections, and Refunds Act, or Section 
59-12-111
, within the time
required by this chapter, or that fails to file any return as required by this chapter, shall pay, in
addition to the tax, penalties and interest as provided in Sections 
59-1-401
 and 
59-1-402
.
(d) For purposes of prosecution under this section, each quarterly tax period in which a
seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
tax required to be remitted constitutes a separate offense.
Section 8. Section 
59-12-108
 is amended to read:
59-12-108.
Monthly payment -- Amount of tax a seller may retain -- Penalty --
Certain amounts allocated to local taxing jurisdictions.
(1) (a) Notwithstanding Section 
59-12-107
, a seller that has a tax liability under this
chapter of $50,000 or more for the previous calendar year shall:
(i) file a return with the commission:
(A) monthly on or before the last day of the month immediately following the month
for which the seller collects a tax under this chapter; and
(B) for the month for which the seller collects a tax under this chapter; and
(ii) except as provided in Subsection (1)(b), remit with the return required by
Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
fee, or charge described in Subsection (1)(c):
(A) if that seller's tax liability under this chapter for the previous calendar year is less
than $96,000, by any method permitted by the commission; or
(B) if that seller's tax liability under this chapter for the previous calendar year is
$96,000 or more, by electronic funds transfer.
(b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
the amount the seller is required to remit to the commission for each tax, fee, or charge
described in Subsection (1)(c) if that seller:
(i) is required by Section 
59-12-107
 to file the return electronically; or
(ii) (A) is required to collect and remit a tax under Section 
59-12-107
; and
(B) files a simplified electronic return.
(c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
(i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) a fee under Section 
19-6-714
;
(iii) a fee under Section 
19-6-805
;
(iv) a charge under Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless
Telecommunications
 Service Charges; or
(v) a tax under this chapter.
(d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
for making same-day payments other than by electronic funds transfer if making payments by
electronic funds transfer fails.
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall establish by rule procedures and requirements for determining the amount a
seller is required to remit to the commission under this Subsection (1).
(2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
seller described in Subsection (4) may retain each month the amount allowed by this
Subsection (2).
(b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
each month 1.31% of any amounts the seller is required to remit to the commission:
(i) for a transaction described in Subsection 
59-12-103
(1) that is subject to a state tax
and a local tax imposed in accordance with the following, for the month for which the seller is
filing a return in accordance with Subsection (1):
(A) Subsection 
59-12-103
(2)(a);
(B) Subsection 
59-12-103
(2)(b); and
(C) Subsection 
59-12-103
(2)(d); and
(ii) for an agreement sales and use tax.
(c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
in Subsection 
59-12-103
(1) that is subject to the state tax and the local tax imposed in
accordance with Subsection 
59-12-103
(2)(c).
(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
equal to the sum of:
(A) 1.31% of any amounts the seller is required to remit to the commission for:
(I) the state tax and the local tax imposed in accordance with Subsection
59-12-103
(2)(c);
(II) the month for which the seller is filing a return in accordance with Subsection (1);
and
(III) an agreement sales and use tax; and
(B) 1.31% of the difference between:
(I) the amounts the seller would have been required to remit to the commission:
(Aa) in accordance with Subsection 
59-12-103
(2)(a) if the transaction had been subject
to the state tax and the local tax imposed in accordance with Subsection 
59-12-103
(2)(a);
(Bb) for the month for which the seller is filing a return in accordance with Subsection
(1); and
(Cc) for an agreement sales and use tax; and
(II) the amounts the seller is required to remit to the commission for:
(Aa) the state tax and the local tax imposed in accordance with Subsection
59-12-103
(2)(c);
(Bb) the month for which the seller is filing a return in accordance with Subsection (1);
and
(Cc) an agreement sales and use tax.
(d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
each month 1% of any amounts the seller is required to remit to the commission:
(i) for the month for which the seller is filing a return in accordance with Subsection
(1); and
(ii) under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Subsection 
59-12-603
(1)(a)(i)(A); or
(C) Subsection 
59-12-603
(1)(a)(i)(B).
(3) A state government entity that is required to remit taxes monthly in accordance
with Subsection (1) may not retain any amount under Subsection (2).
(4) A seller that has a tax liability under this chapter for the previous calendar year of
less than $50,000 may:
(a) voluntarily meet the requirements of Subsection (1); and
(b) if the seller voluntarily meets the requirements of Subsection (1), retain the
amounts allowed by Subsection (2).
(5) Penalties for late payment shall be as provided in Section 
59-1-401
.
(6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
to the commission under this part, the commission shall each month calculate an amount equal
to the difference between:
(i) the total amount retained for that month by all sellers had the percentages listed
under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
(ii) the total amount retained for that month by all sellers at the percentages listed
under Subsections (2)(b) and (2)(c)(ii).
(b) The commission shall each month allocate the amount calculated under Subsection
(6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
tax that the commission distributes to each county, city, and town for that month compared to
the total agreement sales and use tax that the commission distributes for that month to all
counties, cities, and towns.
(c) The amount the commission calculates under Subsection (6)(a) may not include an
amount collected from a tax that:
(i) the state imposes within a county, city, or town, including the unincorporated area
of a county; and
(ii) is not imposed within the entire state.
Section 9. Section 
59-12-128
 is amended to read:
59-12-128.
Amnesty.
(1) As used in this section, "amnesty" means that a seller is not required to pay the
following amounts that the seller would otherwise be required to pay:
(a) a tax, fee, or charge under:
(i) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(iii) Section 
19-6-714
;
(iv) Section 
19-6-805
;
(v) Chapter 26, Multi-Channel Video or Audio Service Tax Act;
(vi) Title 69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless
Telecommunications
 Service Charges; or
(vii) this chapter;
(b) a penalty on a tax, fee, or charge described in Subsection (1)(a); or
(c) interest on a tax, fee, or charge described in Subsection (1)(a).
(2) (a) Except as provided in Subsections (2)(b) and (3) and subject to Subsections (4)
and (5), the commission shall grant a seller amnesty if the seller:
(i) obtains a license under Section 
59-12-106
; and
(ii) is registered under the agreement.
(b) The commission is not required to grant a seller amnesty under this section
beginning 12 months after the date the state becomes a full member under the agreement.
(3) A seller may not receive amnesty under this section for a tax, fee, or charge:
(a) the seller collects;
(b) the seller remits to the commission;
(c) that the seller is required to remit to the commission on the seller's purchase; or
(d) arising from a transaction that occurs within a time period that is under audit by the
commission if:
(i) the seller receives notice of the commencement of the audit prior to obtaining a
license under Section 
59-12-106
; and
(ii) (A) the audit described in Subsection (3)(d)(i) is not complete; or
(B) the seller has not exhausted all administrative and judicial remedies in connection
with the audit described in Subsection (3)(d)(i).
(4) (a) Except as provided in Subsection (4)(b), amnesty the commission grants to a
seller under this section:
(i) applies to the time period during which the seller is not licensed under Section
59-12-106
; and
(ii) remains in effect if, for a period of three years, the seller:
(A) remains registered under the agreement;
(B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge
described in Subsection (1)(a); and
(C) remits to the commission the taxes, fees, and charges the seller collects in
accordance with Subsection (4)(a)(ii)(B).
(b) The commission may not grant a seller amnesty under this section if, with respect
to a tax, fee, or charge for which the seller would otherwise be granted amnesty under this
section, the seller commits:
(i) fraud; or
(ii) an intentional misrepresentation of a material fact.
(5) (a) If a seller does not meet a requirement of Subsection (4)(a)(ii), the commission
shall require the seller to pay the amounts described in Subsection (1) that the seller would
have otherwise been required to pay.
(b) Notwithstanding Section 
59-1-1410
, for purposes of requiring a seller to pay an
amount in accordance with Subsection (5)(a), the time period for the commission to make an
assessment under Section 
59-1-1410
 is extended for a time period beginning on the date the
seller does not meet a requirement of Subsection (4)(a)(ii) and ends three years after that date.
Section 10. Section 
63H-7a-205
 is amended to read:
63H-7a-205.
Executive director -- Appointment -- Powers and duties.
The executive director shall:
(1) (a) serve at the pleasure of the board; and
(b) act as the executive officer of the authority;
(2) administer the duties, programs, and functions assigned to the authority;
(3) recommend administrative rules and policies to the board;
(4) execute contracts on behalf of the authority;
(5) recommend to the board any changes in statutes affecting the authority;
(6) recommend to the board an annual administrative budget covering administration,
management, and operations of the authority;
(7) with board approval, direct and control authority expenditures;
(8) within the limitations of the budget, employ personnel, consultants, a financial
officer, and legal counsel to provide professional services and advice regarding the
administration of the authority; and
(9) submit and make available to the public a report before December of each year to
the board, the Executive Offices and Criminal Justice Appropriations Subcommittee, and the
Legislative Management Committee that includes:
(a) the total aggregate surcharge collected by the state in the last fiscal year under Title
69, Chapter 2, Part 4, [
Emergency
] 
Prepaid Wireless Telecommunications
 Service
Charges;
(b) the amount of each disbursement from the restricted accounts described in:
(i) Section 
63H-7a-303
;
(ii) Section 
63H-7a-304
; and
(iii) Section 
63H-7a-403
;
(c) the recipient of each disbursement, the goods and services received, and a
description of the project funded by the disbursement;
(d) any conditions placed by the authority on the disbursements from a restricted
account;
(e) the anticipated expenditures from the restricted accounts described in this chapter
for the next fiscal year;
(f) the amount of any unexpended funds carried forward;
(g) the goals for implementation of the authority strategic plan and the progress report
of accomplishments and updates to the plan; and
(h) other relevant justification for ongoing support from the restricted accounts created
by Sections 
63H-7a-303
, 
63H-7a-304
, and 
63H-7a-403
.
Section 11. Section 
63H-7a-304
 is amended to read:
63H-7a-304.
 Unified Statewide 911 Emergency Service Account -- Creation --
Administration -- Permitted uses. 
(1) There is created a restricted account within the General Fund known as the "Unified
Statewide 911 Emergency Service Account," consisting of:
(a) proceeds from the fee imposed in Section 
69-2-403
;
(b) money appropriated or otherwise made available by the Legislature; and
(c) contributions of money, property, or equipment from federal agencies, political
subdivisions of the state, persons, or corporations.
(2) (a) Except as provided in Subsection (4) and subject to Subsection (3) and
appropriations by the Legislature, the authority shall disburse funds in the Unified Statewide
911 Emergency Service Account for the purpose of enhancing and maintaining the statewide
public safety communications network and 911 call processing equipment in order to rapidly
and efficiently deliver 911 services in the state.
(b) In expending funds in the Unified Statewide 911 Emergency Service Account, the
authority shall give a higher priority to an expenditure that:
(i) best promotes statewide public safety;
(ii) best promotes interoperability;
(iii) impacts the largest service territory;
(iv) impacts a densely populated area; or
(v) impacts an underserved area.
(c) The authority shall expend funds in the Unified Statewide 911 Emergency Service
Account in accordance with the authority strategic plan described in Section 
63H-7a-206
.
(d) The authority may not expend funds from the Unified Statewide 911 Emergency
Service Account collected through the 911 emergency service charge imposed in Section
69-2-403
 on behalf of a PSAP that chooses not to participate in the:
(i) public safety communications network; and
(ii) the 911 emergency service defined in Section 
69-2-102
.
(e) The authority may not expend funds from the Unified Statewide 911 Emergency
Service Account collected through the prepaid wireless 911 service charge revenue distributed
in Subsection 
69-2-405
(9)[
(b)(ii)
]
(c)
 on behalf of a PSAP that chooses not to participate in the:
(i) public safety communications network; and
(ii) 911 emergency service defined in Section 
69-2-102
.
(f) The executive director shall recommend to the board expenditures for the authority
to make from the Unified Statewide 911 Emergency Service Account in accordance with this
Subsection (2). 
(3) Subject to an appropriation by the Legislature and approval by the board , the
Administrative Services Division may use funds in the Unified Statewide 911 Emergency
Service Account to cover the Administrative Services Division's administrative costs related to
the Unified Statewide 911 Emergency Service Account.
(4) (a) The authority shall reimburse from the Unified Statewide 911 Emergency
Service Account to the Automated Geographic Reference Center created in Section 
63F-1-506
an amount equal to up to 1 cent of each unified statewide 911 emergency service charge
deposited into the Unified Statewide 911 Emergency Service Account under Section 
69-2-403
.
(b) The Automated Geographic Reference Center shall use the funds reimbursed to the
Automated Geographic Reference Center under Subsection (4)(a) to:
(i) enhance and upgrade digital mapping standards; and
(ii) maintain a statewide geospatial database for unified statewide 911 emergency
service.
(c) Subject to an appropriation by the Legislature, the authority may expend funds from
the United Statewide 911 Emergency Service Account to reimburse a county for the costs, up
to $60,000, of each audit described in Section 
69-2-203
.
Section 12. Section 
63H-7a-403
 is amended to read:
63H-7a-403.
Utah Statewide Radio System Restricted Account -- Creation --
Administration.
(1) There is created a restricted account within the General Fund known as the "Utah
Statewide Radio System Restricted Account," consisting of:
(a) money appropriated or otherwise made available by the Legislature; and
(b) contributions of money from federal agencies, political subdivisions of the state,
persons, or corporations.
(2) (a) Subject to appropriations by the Legislature and subject to this Subsection (2),
the authority may expend funds in the Utah Statewide Radio System Restricted Account for the 
purpose of acquiring, constructing, operating, maintaining, and repairing a statewide radio
system public safety communications network as authorized in Section 
63H-7a-202
, including:
(i) public safety communications network and related facilities, real property,
improvements, and equipment necessary for the acquisition, construction, and operation of
services and facilities;
(ii) installation, implementation, and maintenance of the public safety communications
network;
(iii) maintaining and upgrading VHF and 800 MHz radio networks; and
(iv) an operating budget to include personnel costs not otherwise covered by funds
from another account.
(b) For each radio network charge that is deposited into the Utah Statewide Radio
System Restricted Account under Section 
69-2-404
, the authority shall spend, subject to an
appropriation by the Legislature and this Subsection (2):
(i) on and after July 1, 2017, 18 cents of each total radio network charge to maintain
the public safety communications network, including:
(A) the 800 MHz and VHF radio networks;
(B) radio console network connectivity;
(C) funding a statewide interoperability coordinator; and
(D) supplementing costs formerly offset by public safety communications network user
fees assessed by the authority before July 1, 2017; and
(ii) on and after January 1, 2018, 34 cents of each total radio network charge to acquire,
construct, equip, and install property for, and to make improvements to, the 800 MHz radio
system, including debt service costs.
(c) In expending funds in the Utah Statewide Radio System Restricted Account, the
authority shall give a higher priority to an expenditure that:
(i) best promotes statewide public safety;
(ii) best promotes interoperability;
(iii) impacts the largest service territory;
(iv) impacts a densely populated area; or
(v) impacts an underserved area.
(d) The authority shall expend funds in the Utah Statewide Radio System Restricted
Account in accordance with the authority strategic plan described in Section 
63H-7a-206
.
(e) The authority may not expend funds from the Utah Statewide Radio System
Restricted Account collected through the radio network charge imposed in Section 
69-2-404
 on
behalf of a public agency or PSAP if the public agency or PSAP chooses not to participate in
the:
(i) public safety communications network; and
(ii) radio communications service defined in Section 
69-2-102
.
(f) The authority may not expend funds from the Utah Statewide Radio System
Restricted Account collected through the prepaid wireless 911 service charge revenue
distributed in Subsection 
69-2-405
(9)[
(b)(iii)
]
(c)
 on behalf of a public agency or PSAP if the
public agency or PSAP chooses not to participate in the:
(i) public safety communications network; and
(ii) radio communications service defined in Section 
69-2-102
.
(g) The executive director shall recommend to the board expenditures for the authority
to make from the Utah Statewide Radio System Restricted Account in accordance with this
Subsection (2).
(3) Subject to appropriations by the Legislature , the Administrative Services Division
may expend funds in the Utah Statewide Radio System Restricted Account for administrative
costs that the Administrative Services Division incurs related to the Utah Statewide Radio
System Restricted Account .
Section 13. Section 
69-2-101
 is amended to read:
CHAPTER 2. EMERGENCY SERVICE AND PREPAID WIRELESS
TELECOMMUNICATIONS SERVICE
69-2-101.
Title.
This chapter is known as "[
] Emergency Service 
and Prepaid Wireless
Telecommunications Service
."
Section 14. Section 
69-2-405
 is amended to read:
Part 4. Prepaid Wireless Telecommunications Service Charges
69-2-405.
Service charges -- Collection and distribution of revenue.
(1) As used in this section:
(a) "Consumer" means a person who purchases prepaid wireless telecommunications
service in a transaction.
(b) "Prepaid wireless 911 service charge" means the charge that is required to be
collected by a seller from a consumer in the amount established under Subsection (2).
(c) (i) "Prepaid wireless telecommunications service" means a wireless
telecommunications service that:
(A) is paid for in advance;
(B) is sold in predetermined units of time or dollars that decline with use in a known
amount or provides unlimited use of the service for a fixed amount or time; and
(C) allows a caller to access 911 emergency service.
(ii) "Prepaid wireless telecommunications service" does not include a wireless
telecommunications service that is billed:
(A) to a customer on a recurring basis; and
(B) in a manner that includes the charges levied under Sections 
69-2-402
, 
69-2-403
,
and 
69-2-404
, for each radio communication access line assigned to the customer.
(d) "Seller" means a person that sells prepaid wireless telecommunications service to a
consumer.
(e) "Transaction" means each purchase of prepaid wireless telecommunications service
from a seller.
(f) "Wireless telecommunications service" means commercial mobile radio service as
defined by 47 C.F.R. Sec. 20.3, as amended.
[
(2) There is imposed a prepaid wireless 911 service charge of:
]
[
(a) before January 1, 2018, 2.45% of the sales price per transaction;
]
[
(b) on January 1, 2018, and until June 30, 2019, 3.30% of the sales price per
transaction; and
]
(2) There is imposed:
[
(c)
] 
(a)
 [
beginning July 1, 2019,
] 
a prepaid wireless 911 service charge of
 3.7% of the
sales price per transaction[
.
]
; and
(b) a prepaid wireless telecommunications service charge of 1.2% of the sales price per
transaction.
(3) (a) [
The prepaid wireless 911 service charge
] 
Each charge described in Subsection
(2)
 shall be collected by the seller from the consumer for each transaction occurring in this
state.
(b) (i) Except as provided in Subsections (3)(b)(ii) and (iii), if a user of a service
subject to a charge described in Subsection (2) is not the consumer, the seller shall collect the
charge from the consumer for the service.
(ii) [
The
] 
A
 charge described in Subsection (2) is not imposed on a seller or a
consumer of federal wireless lifeline service if the consumer does not pay the seller for the
service.
(iii) A consumer of federal wireless lifeline service shall pay, and the seller of the
service shall collect and remit, [
the
] 
each
 charge described in Subsection (2) when the
consumer purchases from the seller optional services in addition to the federally funded lifeline
benefit.
(4) [
The prepaid wireless 911 service charge
] 
Each charge described in Subsection (2)
shall be separately stated on an invoice, receipt, or similar document that is provided by the
seller to the consumer.
(5) For purposes of Subsection (3), the location of a transaction is determined in
accordance with Sections 
59-12-211
 through 
59-12-215
.
(6) When prepaid wireless telecommunications service is sold with one or more other
products or services for a single non-itemized price, then the percentage specified in
Subsection (2) shall apply to the entire non-itemized price.
(7) A seller may retain 3% of[
 prepaid wireless 911 service charges
] 
the charges
described in Subsection (2)
 that are collected by the seller from consumers as reimbursement
for the cost of billing, collecting, and remitting the charge.
(8) A person that collects a [
prepaid wireless 911 service charge
] 
charge described in
Subsection (2)
, except as retained under Subsection (7), shall remit [
the prepaid wireless 911
service
] 
each
 charge to the commission at the same time that the seller remits to the
commission money collected by the person under Title 59, Chapter 12, Sales and Use Tax Act.
(9) The commission shall distribute 
revenues collected under this section as follows
:
[
(a) for revenues collected under this section for a filing period ending on or before
June 30, 2019:
]
[
(i) 53.8% of the prepaid wireless 911 service charge revenue to a public safety
answering point in accordance with Section 
69-2-302
;
]
[
(ii) 6.8% of the prepaid wireless 911 service charge revenue to the Unified Statewide
Emergency Service Account created in Section 
63H-7a-304
; and
]
[
(iii) 39.4% of the prepaid wireless 911 service charge revenue to the Utah Statewide
Radio System Restricted Account created in Section 
63H-7a-403
; and
]
[
(b) for revenues collected under this section for a filing period beginning July 1,
2019:
]
[
(i)
] 
(a)
 47.97% of the prepaid wireless 911 service charge revenue to a public safety
answering point in accordance with Section 
69-2-302
;
[
(ii)
] 
(b)
 16.89% of the prepaid wireless 911 service charge revenue to the Unified
Statewide 911 Emergency Service Account created in Section 
63H-7a-304
; [
and
]
[
(iii)
] 
(c)
 35.14% of the prepaid wireless 911 service charge revenue to the Utah
Statewide Radio System Restricted Account created in Section 
63H-7a-403
[
.
]
; and
(d) 100% of the prepaid wireless telecommunications service charge revenue to the
Universal Public Telecommunications Service Support Fund created in Section 
54-8b-15
.
Section 15. 
Effective date.
This bill takes effect on January 1, 2021.