Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 34 (2024GS)

Sponsor

Rep. Eliason, S.

Final action

Governor Signed 3/14/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• allows a person to object to a penalty or interest by paying the penalty or interest and requesting a refund even if the person did not previously challenge the assessment of a penalty or interest; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TAX REFUND CLAIM AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Steve Eliason
Senate Sponsor: 
Stephanie Pitcher
LONG TITLE
Committee Note:
The Revenue and Taxation Interim Committee recommended this bill.
Legislative Vote: 17 voting for 0 voting against 1 absent
General Description:
This bill modifies the procedures for challenging a penalty or interest. 
Highlighted Provisions:
This bill:
▸ allows a person to object to a penalty or interest by paying the penalty or interest
and requesting a refund even if the person did not previously challenge the
assessment of a penalty or interest; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-1-501
, as last amended by Laws of Utah 2009, Chapter 212
59-1-1410
, as last amended by Laws of Utah 2014, Chapter 24
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-1-501
 is amended to read:
59-1-501.
Procedure for obtaining redetermination of a deficiency -- Claim for
refund.
(1) As used in this section:
(a) "Legal holiday" [
is as
] 
means the same as that term is
 defined in Section 
59-10-518
.
(b) "Tax, fee, or charge" [
is as
] 
means the same as that term is
 defined in Section
59-1-1402
.
(2) A person may file a request for agency action, petitioning the commission for
redetermination of a deficiency.
(3) Subject to Subsections (4) through (6), a person shall file the request for agency
action described in Subsection (2):
(a) within a 30-day period after the date the commission mails a notice of deficiency to
the person in accordance with Section 
59-1-1405
; or
(b) within a 90-day period after the date the commission mails a notice of deficiency to
the person in accordance with Section 
59-1-1405
 if the notice of deficiency is addressed to a
person outside the United States or the District of Columbia.
(4) If the last day of a time period described in Subsection (3) is a Saturday, Sunday, or
legal holiday, the last day for a person to file a request for agency action is the next day that is
not a Saturday, Sunday, or legal holiday.
(5) A person that mails a request for agency action shall mail the request for agency
action in accordance with Section 
59-1-1404
.
(6) For purposes of Subsection (3), a person is considered to have filed a request for
agency action:
(a) if the person mails the request for agency action, on the date the person is
considered to have mailed the request for agency action in accordance with Section 
59-1-1404
;
or
(b) if the person delivers the request for agency action to the commission by a method
other than mail, on the date the commission receives the request for agency action.
(7) A person [
who
] 
that
 has not previously filed a timely request for agency action in
accordance with Subsection (3) may object to a final assessment issued by the commission by:
(a) paying the tax, fee, or charge
, penalty accrued in accordance with Section 
59-1-401
,
or interest accrued in accordance with Section 
59-1-402
; and
(b) filing a claim for a refund as provided in Section 
59-1-1410
.
Section 2. Section 
59-1-1410
 is amended to read:
59-1-1410.
Action for collection of tax, fee, or charge -- Action for refund or
credit of liability -- Denial of refund claim under appeal -- Appeal of denied refund claim.
(1) (a) Except as provided in Subsections (3) through (7) and Sections 
59-5-114
,
59-7-519
, 
59-10-536
, and 
59-11-113
, the commission shall assess a tax, fee, or charge within
three years after the day on which a person files a return.
(b) Except as provided in Subsections (3) through (7), if the commission does not
assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the
commission may not commence a proceeding to collect the tax, fee, or charge.
(2) (a) Except as provided in Subsection (2)(b), for purposes of this part, a return filed
before the last day prescribed by statute or rule for filing the return is considered to be filed on
the last day for filing the return.
(b) A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is
considered to be filed on April 15 of the succeeding calendar year if the return:
(i) is for a period ending with or within a calendar year; and
(ii) is filed before April 15 of the succeeding calendar year.
(3) The commission may assess a tax, fee, or charge or commence a proceeding for the
collection of a tax, fee, or charge at any time if:
(a) a person:
(i) files a:
(A) false return with intent to evade; or
(B) fraudulent return with intent to evade; or
(ii) fails to file a return; or
(b) the commission estimates the amount of tax, fee, or charge due in accordance with
Subsection 
59-1-1406
(2).
(4) The commission may extend the period to [
make an assessment
] 
assess a tax, fee,
or charge
 or to commence a proceeding to collect a tax, fee, or charge if:
(a) the three-year period under Subsection (1) has not expired; and
(b) the commission and the person sign a written agreement:
(i) authorizing the extension; and
(ii) providing for the length of the extension.
(5) The commission may make an assessment as provided in Subsection (6) if:
(a) the commission delays an audit at the request of a person;
(b) the person subsequently refuses to agree to an extension request by the commission;
and
(c) the three-year period under Subsection (1) expires before the commission
completes the audit.
(6) An assessment under Subsection (5) shall be:
(a) for the time period for which the commission could not make the assessment
because of the expiration of the three-year period; and
(b) in an amount equal to the difference between:
(i) the commission's estimate of the amount of tax, fee, or charge the person would
have been assessed for the time period described in Subsection (6)(a); and
(ii) the amount of tax, fee, or charge the person actually paid for the time period
described in Subsection (6)(a).
(7) If a person erroneously pays a liability, overpays a liability, pays a liability more
than once, or the commission erroneously receives, collects, or computes a liability, the
commission shall:
(a) credit the liability against any amount of liability the person owes; and
(b) refund any balance to:
(i) the person; or
(ii) (A) the person's assign;
(B) the person's personal representative;
(C) the person's successor; or
(D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(8) (a) Except as provided in Subsection (8)(b) or Section 
19-12-203
, 
59-7-522
,
59-10-529
, or 
59-12-110
, the commission may not make a credit or refund unless a person files
a claim with the commission within the later of:
(i) three years from the due date of the return, including the period of any extension of
time provided in statute for filing the return; or
(ii) two years from the date the tax was paid.
(b) The commission shall extend the time period for a person to file a claim under
Subsection (8)(a) if:
(i) the time period described in Subsection (8)(a) has not expired; and
(ii) the commission and the person sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
(9) If the commission denies a claim for a credit or refund, a person may request a
redetermination of the denial by filing a petition or request for agency action with the
commission:
(a) (i) within a 30-day period after the day on which the commission mails a notice of
denial for the claim for credit or refund; or
(ii) within a 90-day period after the day on which the commission mails a notice of
denial for the claim for credit or refund, if the notice is addressed to a person outside the
United States or the District of Columbia; and
(b) in accordance with:
(i) Section 
59-1-501
; and
(ii) Title 63G, Chapter 4, Administrative Procedures Act.
(10) The action of the commission on a person's petition for redetermination of a denial
of a claim for credit or refund is final 30 days after the day on which the commission sends the
commission's decision or order, unless the person seeks judicial review.
Section 3. 
Effective date.
This bill takes effect on May 1, 2024.
Section 4. 
Retrospective operation.
This bill provides retrospective operation to January 1, 2024.