Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 17 (2024GS)

Sponsor

Rep. Eliason, S.

Final action

House/ filed 3/1/2024

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• repeals the requirement that a seller has to pay or collect and remit the sales and use tax if the seller sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state in more than a certain number of separate transactions; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

SALES AND USE TAX REVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Steve Eliason
Senate Sponsor: 
Wayne A. Harper
LONG TITLE
Committee Note:
The Revenue and Taxation Interim Committee recommended this bill.
Legislative Vote: 12 voting for 0 voting against 6 absent
General Description:
This bill amends the requirements governing when a seller has to pay or collect and
remit sales and use tax.
Highlighted Provisions:
This bill:
▸ repeals the requirement that a seller has to pay or collect and remit the sales and use
tax if the seller sells tangible personal property, products transferred electronically,
or services for storage, use, or consumption in the state in more than a certain
number of separate transactions; 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:
59-12-107
, as last amended by Laws of Utah 2022, Chapter 273
59-12-107.6
, as last amended by Laws of Utah 2023, Chapter 361
Be it enacted by the Legislature of the state of Utah:
Section 1. 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), " 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 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 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 voluntary seller remits a tax to the commission in accordance with
Subsection (5)(b), the 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 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 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 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.
Section 2. Section 
59-12-107.6
 is amended to read:
59-12-107.6.
Marketplace facilitator collection, remittance, and payment of sales
tax obligation -- Marketplace seller collection, remittance, and payment of sales tax
obligation -- Liability for collection.
(1) A marketplace facilitator shall pay or collect and remit taxes imposed by this
chapter in accordance with Section 
59-12-107
:
(a) if the marketplace facilitator meets one or more of the criteria provided for in
Subsection 
59-12-107
(2)(a) or (b); and
(b) on the sales the marketplace facilitator made on the marketplace facilitator's own
behalf.
(2) (a) A marketplace facilitator shall pay or collect and remit taxes imposed by this
chapter in accordance with Subsection (3) if the marketplace facilitator, in the previous
calendar year or the current calendar year, makes sales of tangible personal property, products
transferred electronically, or services on the marketplace facilitator's own behalf or facilitates
sales on behalf of one or more marketplace sellers[
: (i)
] that exceed $100,000[
; or
]
.
[
(ii) in 200 or more separate transactions.
]
(b) For purposes of determining if a marketplace facilitator [
meets or exceeds one or
both thresholds
] 
exceeds the threshold
 described in this Subsection (2), a marketplace
facilitator shall separately total:
(i) the marketplace facilitator's sales; and
(ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
(c) A marketplace facilitator without a physical presence in this state shall begin
collecting and remitting the taxes imposed by this chapter no later than the first day of the
calendar quarter that is at least 60 days after the day on which the marketplace facilitator
[
meets or exceeds either
] 
exceeds the
 threshold described in Subsection (2)(a).
(3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit
taxes imposed by this chapter for each sale that the marketplace facilitator:
(a) makes on the marketplace facilitator's own behalf; or
(b) makes or facilitates on behalf of a marketplace seller, regardless of:
(i) whether the marketplace seller has an obligation to pay or collect and remit taxes
under Section 
59-12-107
;
(ii) whether the marketplace seller would have been required to pay or collect and
remit taxes under Section 
59-12-107
 if the marketplace facilitator had not facilitated the sale;
or
(iii) the amount of the sales price or the purchase price that accrues to or benefits the
marketplace facilitator, the marketplace seller, or any other person.
(4) A marketplace facilitator shall comply with the procedures and requirements in this
chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect and
remit taxes except that the marketplace facilitator shall segregate, in the marketplace
facilitator's books and records:
(a) the sales that the marketplace facilitator makes on the marketplace facilitator's own
behalf; and
(b) the sales that the marketplace facilitator makes or facilitates on behalf of one or
more marketplace sellers.
(5) (a) The commission may audit the marketplace facilitator for sales made or
facilitated through the marketplace facilitator's marketplace on behalf of one or more
marketplace sellers.
(b) The commission may not audit the marketplace seller for sales made or facilitated
through the marketplace facilitator's marketplace on the marketplace seller's behalf.
(6) Nothing in this section prohibits a marketplace facilitator from providing in a
marketplace facilitator's agreement with a marketplace seller for the recovery of taxes, and any
related interest or penalties to the extent that a tax, interest, or penalty is assessed by the state in
an audit of the marketplace facilitator on a retail sale:
(a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller;
and
(b) for which the marketplace facilitator relied on incorrect or incomplete information
provided by the marketplace seller.
[
(7) (a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for
failing to collect the taxes under this chapter for a sale on which the marketplace facilitator
failed to collect taxes if the marketplace facilitator demonstrates, to the satisfaction of the
commission, that:
]
[
(i) the marketplace facilitator made or facilitated the sale through the marketplace
facilitator's marketplace on or before December 31, 2022;
]
[
(ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace
seller and not on behalf of the marketplace facilitator;
]
[
(iii) the marketplace facilitator and the marketplace seller are not affiliates; and
]
[
(iv) the failure to collect taxes was due to a good faith error other than an error in
sourcing.
]
[
(b) For purposes of Subsection (7)(a):
]
[
(i) for sales made or facilitated during the 2019 or 2020 calendar year, the marketplace
facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
is equal to the error rate, but not to exceed a 7% error rate;
]
[
(ii) for sales made or facilitated during the 2021 calendar year, the marketplace
facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
is equal to the error rate, but not to exceed a 5% error rate; and
]
[
(iii) for sales made or facilitated during the 2022 calendar year, the marketplace
facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
is equal to the error rate, but not to exceed a 3% error rate.
]
[
(c) The commission shall calculate the percentages described in Subsection (7)(b):
]
[
(i) using the total taxes due on sales that:
]
[
(A) a marketplace facilitator made or facilitated in this state on behalf of one or more
marketplace sellers during the calendar year that the sale for which the marketplace facilitator
seeks relief was made or facilitated; and
]
[
(B) are sourced to the state; and
]
[
(ii) not including sales that the marketplace facilitator or the marketplace facilitator's
affiliates directly made during the same calendar year.
]
[
(8)
] 
(7)
 A marketplace seller shall pay or collect and remit taxes imposed by this
chapter for a sale of tangible personal property, a product transferred electronically, or a service
that the marketplace seller makes other than through a marketplace facilitator if:
(a) the sale is sourced to this state; and
(b) the marketplace seller's sales in this state, other than through a marketplace
facilitator, in the previous calendar year or the current calendar year[
: (i)
] exceed $100,000[
;
or
]
.
[
(ii) occur in 200 or more separate transactions.
]
[
(9)
] 
(8)
 (a) A marketplace seller may not pay or collect and remit taxes imposed by
this chapter for any sale for which a marketplace facilitator is required to pay or collect and
remit.
(b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or
collect and remit, or the marketplace facilitator's underpayment of, taxes imposed by this
chapter for any sale for which a marketplace facilitator is required to pay or collect and remit
the taxes imposed by this chapter.
[
(10)
] 
(9)
 (a) A purchaser of tangible personal property, a product transferred
electronically, or a service may file a claim for a refund with the marketplace facilitator if the
purchaser overpaid taxes imposed under this chapter.
(b) No person may bring a class action against a marketplace facilitator in any court of
the state on behalf of purchasers arising from or in any way related to an overpayment of taxes
collected and remitted on sales made or facilitated by the marketplace facilitator on behalf of a
marketplace seller, regardless of whether such claim is characterized as a tax refund claim.
[
(11)
] 
(10)
 Nothing in this section affects the obligation of a purchaser to remit the use
tax described in Subsection 
59-12-107
(2)(f) on any sale for which a marketplace facilitator or
marketplace seller failed to collect and remit a tax imposed by this chapter.
Section 3. 
Effective date.
This bill takes effect on July 1, 2024.