Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 47 (2025GS)

Sponsor

Sen. Harper, Wayne A.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

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

8
59-12-107
59-12-107.6
0
Sales and Use Tax Remittance Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Steve Eliason
LONG TITLE
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:
This bill appropriates $0 in operating and capital budgets for fiscal year 2026, including 
($2,920,000) from General Fund and $2,920,000 from various sources as detailed in this bill.
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. 
FY 2026 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1, 
2025, and ending June 30, 2026. These are additions to amounts previously appropriated for 
fiscal year 2026. 
Subsection 3(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the 
Legislature appropriates the following sums of money from the funds or accounts indicated for 
the use and support of the government of the state of Utah.
General Government
Utah State Tax Commission
ITEM 1
Utah State Tax Commission - Tax Administration
From General Fund
(3,280,000)
From General Fund, One-time
360,000
From General Fund Rest. - State Tax Commission 
Administrative Charge Account
3,280,000
From General Fund Rest. - State Tax Commission 
Administrative Charge Account, One-time
(360,000)
Section 4. 
Effective Date.
This bill takes effect on 
July 1, 2025
.
3-12-25 1:28 PM