Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 52 (2025GS)

Sponsor

Sen. Brammer, Brady

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• allows the State Tax Commission (commission) to contract with a designated agent to determine the address for which a vehicle's or vessel's insurance is tied, to assist the commission in determining whether the owner is a resident of this state;
• based on information provided by the designated agent, allows the commission to investigate whether the owner is a resident for vehicle or vessel registration purposes or otherwise in compliance with relevant registration and tax laws;
• for a person found in violation of certain tax and fee requirements, allows the person 60 days to cure the violation before being subject to a penalty;
• allows the commission to impose penalties in certain circumstances;
• allows funds in the Uninsured Motorist Identification Restricted Account to be used to cover the costs of the designated agent for address verification; and
• makes technical changes.

Every vote on this bill

Bill text

10
41-1a-202
41-12a-301
41-12a-806
59-12-107
0
Vehicle Registration Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brady Brammer
House Sponsor: Jason B. Kyle
LONG TITLE
General Description:
This bill allows the State Tax Commission to contract with a designated agent to assist in 
address verification for vehicles and vessels insured in the state.
Highlighted Provisions:
This bill:
defines terms;
allows the State Tax Commission (commission) to contract with a designated agent to 
determine the address for which a vehicle's or vessel's insurance is tied, to assist the 
commission in determining whether the owner is a resident of this state;
based on information provided by the designated agent, allows the commission to 
investigate whether the owner is a resident for vehicle or vessel registration purposes or 
otherwise in compliance with relevant registration and tax laws; 
for a person found in violation of certain tax and fee requirements, allows the person 60 
days to cure the violation before being subject to a penalty;
allows the commission to impose penalties in certain circumstances;
allows funds in the Uninsured Motorist Identification Restricted Account to be used to 
cover the costs of the designated agent for address verification; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
41-1a-202
, as last amended by Laws of Utah 2023, Chapters 81, 532
41-12a-301
, as last amended by Laws of Utah 2023, Chapter 94
41-12a-806
, as last amended by Laws of Utah 2024, Chapters 268, 319
59-12-107
, as last amended by Laws of Utah 2022, Chapter 273
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
41-1a-202
 is amended to read:
41-1a-202
. Definitions -- Vehicles exempt from registration -- Registration of 
vehicles after establishing residency.
(1)
In
As used in
 this section:
(a)
"Designated agent" means the same as that term is defined in Section 
41-12a-803
.
(a)
(b)
"Domicile" means the place:
(i)
where an individual has a fixed permanent home and principal establishment;
(ii)
to which the individual if absent, intends to return; and
(iii)
in which the individual and his family voluntarily reside, not for a special or 
temporary purpose, but with the intention of making a permanent home.
(b)
(c)
(i)
"Resident" means any of the following:
(A)
an individual who:
(I)
has established a domicile in this state;
(II)
regardless of domicile, remains in this state for an aggregate period of six 
months or more during any calendar year;
(III)
engages in a trade, profession, or occupation in this state or who accepts 
employment in other than seasonal work in this state and who does not 
commute into the state;
(IV)
declares himself to be a resident of this state for the purpose of obtaining a 
driver license or motor vehicle registration; or
(V)
declares himself a resident of Utah to obtain privileges not ordinarily 
extended to nonresidents, including going to school, or placing children in 
school without paying nonresident tuition or fees; or
(B)
any individual, partnership, limited liability company, firm, corporation, 
association, or other entity that:
(I)
maintains a main office, branch office, or warehouse facility in this state 
and that bases and operates a motor vehicle in this state; or
(II)
operates a motor vehicle in intrastate transportation for other than seasonal 
work.
(ii)
"Resident" does not include any of the following:
(A)
a member of the military temporarily stationed in Utah;
(B)
an out-of-state student, as classified by the institution of higher education, 
enrolled with the equivalent of seven or more quarter hours, regardless of 
whether the student engages in a trade, profession, or occupation in this state or 
accepts employment in this state; and
(C)
an individual domiciled in another state or a foreign country that:
(I)
is engaged in public, charitable, educational, or religious services for a 
government agency or an organization that qualifies for tax-exempt status 
under Internal Revenue Code Section 501(c)(3);
(II)
is not compensated for services rendered other than expense 
reimbursements; and
(III)
is temporarily in Utah for a period not to exceed 24 months.
(iii)
Notwithstanding Subsections 
(1)(b)(i)
 and 
(ii)
(1)(c)(i) and (ii)
, "resident" 
includes the owner of a vehicle equipped with an automated driving system as 
defined in Section 
41-26-102.1
 if the vehicle is physically present in the state for 
more than 30 consecutive days in a calendar year.
(2)
(a)
Registration under this chapter is not required for any:
(i)
vehicle registered in another state and owned by a nonresident of the state or 
operating under a temporary registration permit issued by the division or a dealer 
authorized by this chapter, driven or moved upon a highway in conformance with 
the provisions of this chapter relating to manufacturers, transporters, dealers, lien 
holders, or interstate vehicles;
(ii)
vehicle driven or moved upon a highway only for the purpose of crossing the 
highway from one property to another;
(iii)
implement of husbandry, whether of a type otherwise subject to registration or 
not, that is only incidentally operated or moved upon a highway;
(iv)
special mobile equipment;
(v)
vehicle owned or leased by the federal government;
(vi)
motor vehicle not designed, used, or maintained for the transportation of 
passengers for hire or for the transportation of property if the motor vehicle is 
registered in another state and is owned and operated by a nonresident of this state;
(vii)
vehicle or combination of vehicles designed, used, or maintained for the 
transportation of persons for hire or for the transportation of property if the 
vehicle or combination of vehicles is registered in another state and is owned and 
operated by a nonresident of this state and if the vehicle or combination of 
vehicles has a gross laden weight of 26,000 pounds or less;
(viii)
trailer of 750 pounds or less unladen weight and not designed, used, and 
maintained for hire for the transportation of property or person;
(ix)
single-axle trailer unless that trailer is:
(A)
a commercial vehicle;
(B)
a trailer designed, used, and maintained for hire for the transportation of 
property or person; or
(C)
a travel trailer, camping trailer, or fifth wheel trailer of 750 pounds or more 
laden weight;
(x)
manufactured home or mobile home;
(xi)
off-highway vehicle currently registered under Section 
41-22-3
 if the 
off-highway vehicle is:
(A)
being towed;
(B)
operated on a street or highway designated as open to off-highway vehicle 
use; or
(C)
operated in the manner prescribed in Subsections 
41-22-10.3(1)
 through 
(3)
;
(xii)
off-highway implement of husbandry operated in the manner prescribed in 
Subsections 
41-22-5.5(3)
 through 
(5)
;
(xiii)
modular and prebuilt homes conforming to the uniform building code and 
presently regulated by the United States Department of Housing and Urban 
Development that are not constructed on a permanent chassis;
(xiv)
electric assisted bicycle defined under Section 
41-6a-102
;
(xv)
motor assisted scooter defined under Section 
41-6a-102
; or
(xvi)
electric personal assistive mobility device defined under Section 
41-6a-102
.
(b)
For purposes of an implement of husbandry as described in Subsection 
(2)(a)(iii)
, 
incidental operation on a highway includes operation that is:
(i)
transportation of raw agricultural materials or other agricultural related operations; 
and
(ii)
limited to 100 miles round trip on a highway.
(3)
(a)
Unless otherwise exempted under Subsection 
(2)
, registration under this chapter is 
required for any motor vehicle, combination of vehicles, trailer, semitrailer, vintage 
vehicle, or restored-modified vehicle within 60 days of the owner establishing 
residency in this state.
(b)
(i)
The commission may contract with a designated agent described in Chapter 
12a, Part 8, Uninsured Motorist Identification Database Program, to determine the 
address for which a contract for owner's or operator's security pertaining to a 
certain vehicle or vessel is tied.
(ii)
If the information provided by the designated agent under Subsection 
(3)(b)(i)
indicates that the owner of a vehicle or vessel is a resident of this state, the 
commission may investigate to ensure compliance with this chapter, Chapter 22, 
Off-highway Vehicles, Title 59, Chapter 12, Sales and Use Tax Act, and Title 73, 
Chapter 18, State Boating Act.
(c)
If the commission's investigation described in Subsection 
(3)(b)(ii)
 determines that 
the owner of the vehicle or vessel is not in compliance with this chapter, Chapter 22, 
Off-highway Vehicles, Title 59, Chapter 12, Sales and Use Tax Act, or Title 73, 
Chapter 18, State Boating Act, the commission:
(i)
may impose a penalty on the owner of the vehicle or vessel of $150; and
(ii)
shall provide notice of noncompliance to the owner of the vehicle or vessel and 
allow 60 days after the date on which the notice was issued for the owner of the 
vehicle or vessel to comply with the provisions identified in the commission's 
investigation described in Subsection (3)(b)(ii).
(d)
If the owner of a vehicle or vessel fails to comply as directed within the time period 
described in Subsection (3)(c), the commission created in Section 
41-3-104
 may 
impose on the owner of the vehicle or vessel a penalty equal to the greater of:
(i)
if the commission finds there was an underpayment of tax under Title 59, Chapter 
12, Sales and Use Tax Act, a penalty as provided in Subsection 
59-1-401(7)
; or
(ii)
$500.
(e)
Upon making a record of the commission's actions, and upon reasonable cause 
shown, the commission may waive, reduce, or compromise any penalty imposed 
under Subsection 
(3)(c)
 or (3)(d).
(f)
(i)
The commission shall deposit money from a penalty under Subsections 
(3)
(c)(i) 
and (3)(d)(ii) for failure to properly register or title a vehicle or vessel pursuant to 
this chapter, Chapter 22, Off-highway Vehicles, or Title 73, Chapter 18, State 
Boating Act, into the Uninsured Motorist Identification Restricted Account 
created in Section 
41-12a-806
.
(ii)
The commission shall deposit money from a penalty under this Subsection 
(3)
(d)(i) for failure to pay a sales and use tax under Title 59, Chapter 12, Sales and 
Use Tax Act, into the General Fund.
(4)
A motor vehicle that is registered under Section 
41-3-306
 is exempt from the 
registration requirements of this part for the time period that the registration under 
Section 
41-3-306
 is valid.
(5)
A vehicle that has been issued a nonrepairable certificate may not be registered under 
this chapter.
Section 2, Section 
41-12a-301
 is amended to read:
41-12a-301
. Definitions -- Requirement of owner's or operator's security -- 
Exceptions.
(1)
As used in this section:
(a)
"Highway" means the same as that term is defined in Section 
41-1a-102
.
(b)
"Local education agency" or "LEA" means the same as that term is defined in 
Section 
53E-1-102
.
(c)
"Quasi-public road or parking area" means the same as that term is defined in Section 
41-6a-214
.
(2)
Except as provided in Subsection 
(5)
:
(a)
every resident owner of a motor vehicle shall maintain owner's or operator's security 
in effect at any time that the motor vehicle is operated on a highway or on a 
quasi-public road or parking area 
or registered 
within the state; and
(b)
every nonresident owner of a motor vehicle that has been physically present in this 
state for:
(i)
90 or fewer days during the preceding 365 days shall maintain the type and 
amount of owner's or operator's security required in his place of residence, in 
effect continuously throughout the period the motor vehicle remains within Utah; 
or
(ii)
more than 90 days during the preceding 365 days shall thereafter maintain 
owner's or operator's security in effect continuously throughout the period the 
motor vehicle remains within Utah.
(3)
(a)
Except as provided in Subsection 
(5)
, the state and all of its political subdivisions 
and their respective departments, institutions, or agencies shall maintain owner's or 
operator's security in effect continuously for their motor vehicles.
(b)
Any other state is considered a nonresident owner of its motor vehicles and is subject 
to Subsection 
(2)(b)
.
(4)
The United States, any political subdivision of it, or any of its agencies may maintain 
owner's or operator's security in effect for their motor vehicles.
(5)
Owner's or operator's security is not required for any of the following:
(a)
off-highway vehicles registered under Section 
41-22-3
 when operated either:
(i)
on a highway designated as open for off-highway vehicle use; or
(ii)
in the manner prescribed by Subsections 
41-22-10.3(1)
 through 
(3)
;
(b)
off-highway implements of husbandry operated in the manner prescribed by 
Subsections 
41-22-5.5(3)
 through 
(5)
;
(c)
electric assisted bicycles as defined under Section 
41-6a-102
;
(d)
motor assisted scooters as defined under Section 
41-6a-102
;
(e)
electric personal assistive mobility devices as defined under Section 
41-6a-102
; or
(f)
an LEA, for a school bus that the LEA authorizes a state entity or political 
subdivision of the state to use.
(6)
If an LEA authorizes a state entity or political subdivision of the state to use a school 
bus:
(a)
the state entity or political subdivision shall maintain owner's or operator's security 
during the term of the school bus use in an amount that is greater than or equal to any 
governmental immunity liability limit;
(b)
the state entity or the political subdivision shall indemnify and defend the LEA for 
any claim that arises from the school bus use including a claim directed at the LEA, 
unless the claim arises from the sole negligence of the LEA; and
(c)
if the school district maintains owner's or operator's security for the school bus 
during the term of school bus use, the owner's and operator's security maintained by 
the state entity or political subdivision of the state is primary to the owner's and 
operator's security maintained by the LEA.
Section 3, Section 
41-12a-806
 is amended to read:
41-12a-806
. Restricted account -- Creation -- Funding -- Interest -- Purposes.
(1)
There is created within the Transportation Fund a restricted account known as the 
"Uninsured Motorist Identification Restricted Account."
(2)
The account consists of money generated from the following revenue sources:
(a)
money received by the state under Subsection 
41-1a-202(3)
;
(a)
(b)
money received by the state under Section 
41-1a-1218
, the uninsured motorist 
identification fee;
(b)
(c)
money received by the state under Section 
41-1a-1220
, the registration 
reinstatement fee; and
(c)
(d)
appropriations made to the account by the Legislature.
(3)
(a)
The account shall earn interest.
(b)
All interest earned on account money shall be deposited into the account.
(4)
The Legislature shall appropriate money from the account to:
(a)
the department to fund the contract with the designated agent;
(b)
the department to offset the costs to state and local law enforcement agencies of 
using the information for the purposes authorized under this part;
(c)
the 
State 
Tax Commission to
:
(i)
offset the costs to the Motor Vehicle Division for revoking and reinstating vehicle 
registrations under Subsection 
41-1a-110
(2)(a)(ii); and
(ii)
cover the contract and other costs of the designated agent for address verification 
described in Subsection 
41-1a-202(3)
; and
(d)
the department to reimburse a person for the costs of towing and storing the person's 
vehicle if:
(i)
the person's vehicle was impounded in accordance with Subsection 
41-1a-1101
(4);
(ii)
the impounded vehicle had owner's or operator's security in effect for the vehicle 
at the time of the impoundment;
(iii)
the database indicated that owner's or operator's security was not in effect for the 
impounded vehicle; and
(iv)
the department determines that the person's vehicle was wrongfully impounded.
(5)
The Legislature may appropriate not more than $2,000,000 annually from the account to 
the Peace Officer Standards and Training Division, created under Section 
53-6-103
, for 
use in law enforcement training, including training on the use of the Uninsured Motorist 
Identification Database Program created under
 Title 41, Chapter 12a,
 Part 8, Uninsured 
Motorist Identification Database Program.
(6)
(a)
By following the procedures in Title 63G, Chapter 4, Administrative Procedures 
Act, the department shall hold a hearing to determine whether a person's vehicle was 
wrongfully impounded under Subsection 
41-1a-1101
(4).
(b)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
division shall make rules establishing procedures for a person to apply for a 
reimbursement under Subsection (4)(d).
(c)
A person is not eligible for a reimbursement under Subsection (4)(d) unless the 
person applies for the reimbursement within six months from the date that the motor 
vehicle was impounded.
Section 4, 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.
(c)
If a commission investigation under Section 
41-1a-202
 determines that an owner of a 
vehicle or vessel is not in compliance with this chapter, the owner shall pay a liability 
under this chapter directly to the commission if the vehicle or vessel is subject to 
titling or registration under the laws of this state.
(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 5. 
Effective date.
This bill takes effect:
(1) except as provided in Subsection 
(2)
, May 7, 2025; or
(2) if approved by two-thirds of all the members elected to each house:
(a) upon approval by the governor;
(b) without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c) 
in the case of a veto, the date of veto override
.
3-7-25 3:58 PM