Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 90 (2022GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• clarifies that the parties to an administrative garnishment order issued by the State Tax Commission must file certain requests and motions in the district court; and
• changes the term "remote seller" to "voluntary seller."

Every vote on this bill

Bill text

TAX ADMINISTRATION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Robert M. Spendlove
LONG TITLE
General Description:
This bill modifies provisions related to the administration and enforcement of taxes.
Highlighted Provisions:
This bill:
▸ clarifies that the parties to an administrative garnishment order issued by the State
Tax Commission must file certain requests and motions in the district court; and
▸ changes the term "remote seller" to "voluntary seller."
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-1-1420
, as enacted by Laws of Utah 2021, Chapter 393
59-12-107
, as last amended by Laws of Utah 2020, Chapter 294
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-1-1420
 is amended to read:
59-1-1420.
Administrative garnishment order for liability.
(1) As used in this section:
(a) "Administrative garnishment order" includes a continuing administrative
garnishment order issued under this section.
(b) "Disposable earnings" means the same as that term is defined in Section
70C-7-103
.
(c) "Garnishee" means a person to whom the commission issues an administrative
garnishment order under this section.
(d) "Nonexempt periodic payment" means any recurring payment that, under Title 78B,
Chapter 5, Part 5, Utah Exemptions Act, is not exempt from the judicial process to collect an
unsecured debt.
(2) (a) Subject to Subsection (3), if a taxpayer owes a liability, the commission may
issue an administrative garnishment order against the taxpayer's personal property, including
wages, in the possession or control of a person other than the taxpayer in the same manner and
with the same effect as if the order were a writ of garnishment issued by a court with
jurisdiction.
(b) In addition to the underlying liability, the commission may satisfy through an
administrative garnishment any costs or fees incurred by the commission as a result of issuing
the administrative garnishment order.
(3) The commission may issue an administrative garnishment order to a person
described in Subsection (2) if:
(a) the commission has filed a warrant against the taxpayer for the underlying liability
in accordance with Section 
59-1-1414
; and
(b) the commission's executive director or the executive director's designee signs the
administrative garnishment order.
(4) An administrative garnishment order issued in accordance with this section is
subject to the procedures and due process protections provided by Rule 64D, Utah Rules of
Civil Procedure.
(5) The maximum portion of a taxpayer's disposable earnings subject to garnishment
under this section is the lesser of:
(a) 25% of the taxpayer's disposable earnings; or
(b) the amount by which the taxpayer's disposable earnings for a pay period exceeds
the number of weeks in that pay period multiplied by 30 times the federal minimum wage as
provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
(6) Upon agreement by the garnishee, the parties to an administrative garnishment
order may accept and transmit documents relating to the administrative garnishment order by
electronic means, including service of process, proof of service, interrogatories, answers, and
any other information shared between the garnishee and the commission.
(7) In an administrative garnishment order issued under this section, the commission
shall:
(a) identify the taxpayer, including:
(i) the taxpayer's name and address; and
(ii) if known:
(A) the last four digits of the taxpayer's social security number, or the taxpayer's full
social security number, if the taxpayer's full social security number is required by federal law;
and
(B) the taxpayer's date of birth;
(b) contain a statement that includes:
(i) if known, the nature, location, account number, and estimated value of the property
subject to administrative garnishment;
(ii) if known, the name, address, and phone number of the person holding the property
subject to administrative garnishment; and
(iii) the name, address, and phone number of any person claiming an interest in the
property described in Subsection (7)(b)(i) or (ii);
(c) state whether any of the property subject to administrative garnishment consists of
earnings;
(d) state the outstanding amount owed under the warrant described in Subsection
(3)(a);
(e) state the amount of any applicable costs or fees included in the administrative
garnishment;
(f) state the manner in which the garnishee shall deliver the property to the
commission; and
(g) state that the commission shall pay the garnishee the fee described in Section
78A-2-216
.
(8) As part of the administrative garnishment order, the commission shall serve on the
garnishee the following interrogatories:
(a) whether the garnishee is indebted to the taxpayer and, if so, the nature of the
indebtedness;
(b) whether the garnishee possesses or controls any property of the taxpayer, and, if so,
the nature, location, and estimated value of the property;
(c) whether the garnishee knows of any property of the taxpayer in the possession or
control of another person, and if so, the following information about the property:
(i) the nature;
(ii) the location; and
(iii) the estimated value;
(d) (i) whether the garnishee intends to deduct from the property a liquidated claim
against the taxpayer;
(ii) a description of any claim described in Subsection (8)(d)(i); and
(iii) the amount deducted, if any;
(e) the date and manner of the garnishee's service of the documents described in
Subsection (9)(c) on the taxpayer and any third party;
(f) the date on which the taxpayer was previously served with any continuing
administrative garnishment order;
(g) any other relevant information the commission requests, including:
(i) the taxpayer's position;
(ii) the taxpayer's rate of pay;
(iii) the taxpayer's compensation method;
(iv) the taxpayer's pay period; and
(v) a computation of the taxpayer's disposable earnings.
(9) Within seven days after the day on which an administrative garnishment order is
served, the garnishee shall:
(a) answer each interrogatory described in Subsection (8);
(b) serve the answers to the interrogatories on the commission;
(c) serve the taxpayer and any other person known to the garnishee to have an interest
in the property a copy of:
(i) the administrative garnishment order; and
(ii) the answers to the interrogatories described in Subsection (9)(b); and
(d) inform the taxpayer of the taxpayer's right to reply to the answers described in
Subsection (9)(b) and request a hearing 
in district court
 as provided by Rule 64D, Utah Rules
of Civil Procedure.
(10) (a) A garnishee who acts in accordance with this section and the administrative
garnishment order is released from liability unless an answer to an interrogatory is successfully
controverted.
(b) Except as provided in Subsection (10)(c), if a garnishee fails to comply with the
administrative garnishment order without a court or final administrative order directing
otherwise, the garnishee is liable for an amount including:
(i) the lesser of the value of the property or the balance owed under the warrant
described in Subsection (3)(a);
(ii) reasonable costs and fees; and
(iii) attorney fees incurred by the parties as a result of the garnishee's failure.
(c) If a garnishee demonstrates that the garnishee took reasonable steps to secure the
property, the commission may excuse the garnishee of liability in whole or in part.
(11) If the commission files a motion for an order to show cause to enforce an
administrative garnishment order under this section, the commission shall 
file the motion in
district court and
 attach to the motion a statement that the commission has in good faith
conferred or attempted to confer with the garnishee in an effort to settle the issue without court
action.
(12) A garnishee is not liable for drawing, accepting, making, or endorsing a negotiable
instrument that is not in the possession or control of the garnishee at the time the administrative
garnishment order is served.
(13) A garnishee may deduct from the property any liquidated claim against the
taxpayer.
(14) (a) If a debt owed by the taxpayer to the garnishee is secured by the property
subject to the administrative garnishment order, the commission may apply the property to the
debt.
(b) An administrative garnishment order described in Subsection (14)(a) remains in
effect regardless of whether the commission applies the property to the debt.
(15) (a) The commission may issue a continuing administrative garnishment order
against any nonexempt periodic payment.
(b) A continuing administrative garnishment order applies to payments to the taxpayer:
(i) beginning on the day on which the continuing administrative garnishment order is
served; and
(ii) ending on the earlier of:
(A) subject to Subsection (15)(c), one year after the day on which the continuing
administrative garnishment order is served;
(B) 120 days after the day on which a second or subsequent continuing administrative
garnishment against the taxpayer is served;
(C) the day on which the last nonexempt periodic payment subject to the continuing
administrative garnishment order occurs;
(D) the day on which the warrant described in Subsection (3)(a) is stayed, vacated, or
satisfied in full; or
(E) the day on which the commission releases the continuing administrative
garnishment order.
(c) If the commission issues a continuing administrative garnishment order during the
term of another continuing administrative garnishment order against the same taxpayer, the
period described in Subsection (15)(b)(i) is tolled if the other continuing administrative
garnishment order:
(i) is in effect at the time the commission serves the subsequent continuing
administrative garnishment order; and
(ii) requires payments greater than or equal to the maximum portion of disposable
earnings described in Subsection (5).
(d) For each periodic payment period, no later than seven days after the day on which
the periodic payment period ends, the garnishee shall:
(i) answer each interrogatory described in Subsection (8);
(ii) serve the answers to the interrogatories on the commission, the taxpayer, and any
other person known to the garnishee to have an interest in the property; and
(iii) deliver the property to the commission in the manner specified in the continuing
administrative garnishment order.
(16) (a) The commission may not name more than one garnishee in an administrative
garnishment order.
(b) Priority among garnishments is according to the order of service on the garnishee.
(c) An administrative garnishment order applies to earnings accruing during the pay
period in which the order is effective.
(17) This section is subject to Title 78B, Chapter 5, Part 5, Utah Exemptions Act.
Section 2. 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, 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, 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
] 
voluntary
 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
] 
voluntary
 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
] 
voluntary
 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
] 
voluntary
 seller remits a tax to the commission in accordance with
Subsection (5)(b), the [
remote
] 
voluntary
 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
] 
voluntary
 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
] 
voluntary
 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
] 
voluntary
 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.