Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 67 (2025GS)

Sponsor

Sen. Owens, Derrin R.

Final action

Senate/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• allows certain local governments to impose a sales and use tax for purposes of funding emergency services;
• establishes requirements for a local government to impose the tax, dependent on the rate imposed;
• addresses the administration, collection, and distribution of tax revenue;
• allows the State Tax Commission to retain an administrative charge from collected tax revenue;
• repeals provisions allowing certain counties to impose a rural county health care facilities tax to fund emergency medical services; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

18
17D-1-103
59-12-801
59-12-802
59-12-2401
59-12-2402
59-12-2403
59-12-2404
59-12-2405
59-12-2406
Local Option Sales Tax Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Derrin R. Owens
House Sponsor: Joseph Elison
LONG TITLE
General Description:
This bill modifies provisions related to local option sales and use taxes.
Highlighted Provisions:
This bill:
defines terms;
allows certain local governments to impose a sales and use tax for purposes of funding 
emergency services;
establishes requirements for a local government to impose the tax, dependent on the rate 
imposed;
addresses the administration, collection, and distribution of tax revenue;
allows the State Tax Commission to retain an administrative charge from collected tax 
revenue;
repeals provisions allowing certain counties to impose a rural county health care facilities 
tax to fund emergency medical services; 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:
17D-1-103
, (Effective upon governor's approval) as last amended by Laws of Utah 
2024, Chapter 382
59-12-801
, (Effective upon governor's approval) as last amended by Laws of Utah 2023, 
Chapters 92, 310 and 329
59-12-802
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 333
ENACTS:
59-12-2401
, (Effective upon governor's approval) Utah Code Annotated 1953
59-12-2402
, (Effective upon governor's approval) Utah Code Annotated 1953
59-12-2403
, (Effective upon governor's approval) Utah Code Annotated 1953
59-12-2404
, (Effective upon governor's approval) Utah Code Annotated 1953
59-12-2405
, (Effective upon governor's approval) Utah Code Annotated 1953
59-12-2406
, (Effective upon governor's approval) Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
17D-1-103
 is amended to read:
17D-1-103 (Effective upon governor's approval). Special service district status, 
powers, and duties -- Registration as a limited purpose entity -- Limitation on districts 
providing jail service.
(1)
A special service district:
(a)
is:
(i)
a body corporate and politic with perpetual succession, separate and distinct from 
the county or municipality that creates 
it
the special service district
;
(ii)
a quasi-municipal corporation; and
(iii)
a political subdivision of the state; and
(b)
may sue and be sued.
(2)
A special service district may:
(a)
exercise the power of eminent domain possessed by the county or municipality that 
creates the special service district;
(b)
enter into a contract that the governing authority considers desirable to carry out 
special service district functions, including a contract:
(i)
with the United States or an agency of the United States, the state, an institution of 
higher education, a county, a municipality, a school district, a special district, 
another special service district, or any other political subdivision of the state; or
(ii)
that includes provisions concerning the use, operation, and maintenance of special 
service district facilities and the collection of fees or charges with respect to 
commodities, services, or facilities that the district provides;
(c)
acquire or construct facilities;
(d)
acquire real or personal property, or an interest in real or personal property, including 
water and water rights, whether by purchase, lease, gift, devise, bequest, or 
otherwise, and whether the property is located inside or outside the special service 
district, and own, hold, improve, use, finance, or otherwise deal in and with the 
property or property right;
(e)
sell, convey, lease, exchange, transfer, or otherwise dispose of all or any part of the 
special service district's property or assets, including water and water rights;
(f)
mortgage, pledge, or otherwise encumber all or any part of the special service 
district's property or assets, including water and water rights;
(g)
enter into a contract with respect to the use, operation, or maintenance of all or any 
part of the special service district's property or assets, including water and water 
rights;
(h)
accept a government grant or loan and comply with the conditions of the grant or 
loan;
(i)
use an officer, employee, property, equipment, office, or facility of the county or 
municipality that created the special service district, subject to reimbursement as 
provided in Subsection (4);
(j)
employ one or more officers, employees, or agents, including one or more engineers, 
accountants, attorneys, or financial consultants, and establish their compensation;
(k)
designate an assessment area and levy an assessment as provided in Title 11, Chapter 
42, Assessment Area Act;
(l)
contract with a franchised, certificated public utility for the construction and 
operation of an electrical service distribution system within the special service 
district;
(m)
borrow money and incur indebtedness;
(n)
as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of 
acquiring, constructing, and equipping any of the facilities required for the services 
the special service district is authorized to provide, including:
(i)
bonds payable in whole or in part from taxes levied on the taxable property in the 
special service district;
(ii)
bonds payable from revenues derived from the operation of revenue-producing 
facilities of the special service district;
(iii)
bonds payable from both taxes and revenues;
(iv)
guaranteed bonds, payable in whole or in part from taxes levied on the taxable 
property in the special service district;
(v)
tax anticipation notes;
(vi)
bond anticipation notes;
(vii)
refunding bonds;
(viii)
special assessment bonds; and
(ix)
bonds payable in whole or in part from mineral lease payments as provided in 
Section 
11-14-308
;
(o)
except as provided in Subsection (5), impose fees or charges or both for 
commodities, services, or facilities that the special service district provides;
(p)
provide to an area outside the special service district's boundary, whether inside or 
outside the state, a service that the special service district is authorized to provide 
within its boundary, if the governing body makes a finding that there is a public 
benefit to providing the service to the area outside the special service district's 
boundary;
(q)
provide other services that the governing body determines will more effectively carry 
out the purposes of the special service district;
 and
(r)
adopt an official seal for the special service district
.
; and
(s)
if authorized, impose an emergency services tax under Title 59, Chapter 12, Part 24, 
Emergency Services Tax.
(3)
(a)
Each special service district shall register and maintain the special service 
district's registration as a limited purpose entity, in accordance with Section 
67-1a-15
.
(b)
A special service district that fails to comply with Subsection (3)(a) or Section 
67-1a-15
 is subject to enforcement by the state auditor, in accordance with Section 
67-3-1
.
(4)
(a)
Each special service district that uses an officer, employee, property, equipment, 
office, or facility of the county or municipality that created the special service district 
shall reimburse the county or municipality a reasonable amount for what the special 
service district uses.
(b)
The amount invoiced for what the special service district uses under Subsection 
(4)(a) may not exceed the actual documented cost incurred, without markup, by the 
county or municipality.
(5)
(a)
A special service district that provides jail service as provided in Subsection 
17D-1-201
(10) may not impose a fee or charge for the service it provides.
(b)
Subsection (5)(a) may not be construed to limit a special service district that provides 
jail service from:
(i)
entering into a contract with the federal government, the state, or a political 
subdivision of the state to provide jail service for compensation; or
(ii)
receiving compensation for jail service it provides under a contract described in 
Subsection (5)(b)(i).
Section 2, Section 
59-12-801
 is amended to read:
59-12-801 (Effective upon governor's approval). Definitions.
As used in this part:
(1)
"Affected area" means the portion of a county in which a tax is imposed under 
Subsection 
59-12-802(4)
.
(2)
(1)
"Emergency medical services" means the same as that term is defined in Section 
53-2d-101
.
(3)
(2)
"Federally qualified health center" means the same as that term is defined in 42 
U.S.C. Sec. 1395x.
(4)
(3)
"Freestanding urgent care center" means a facility that provides outpatient health 
care service:
(a)
on an as-needed basis, without an appointment;
(b)
to the public;
(c)
for the diagnosis and treatment of a medical condition if that medical condition does 
not require hospitalization or emergency intervention for a life threatening or 
potentially permanently disabling condition; and
(d)
including one or more of the following services:
(i)
a medical history physical examination;
(ii)
an assessment of health status; or
(iii)
treatment:
(A)
for a variety of medical conditions; and
(B)
that is commonly offered in a physician's office.
(5)
"Municipality" means a city or town.
(6)
(4)
"Nursing care facility" means the same as that term is defined in Section 
26B-2-201
.
(7)
"Political subdivision" means a county, municipality, local district, or special service 
district.
(8)
(5)
"Rural city hospital" means a hospital owned by a city that is located within a third, 
fourth, fifth, or sixth class county.
(9)
(6)
"Rural county health care facility" means a:
(a)
rural county hospital; or
(b)
rural county nursing care facility.
(10)
(7)
"Rural county hospital" means a hospital owned by a county that is:
(a)
a third, fourth, fifth, or sixth class county, as defined in Section 
17-50-501
; and
(b)
located outside of a standard metropolitan statistical area, as designated by the 
United States Bureau of the Census.
(11)
(8)
"Rural county nursing care facility" means a nursing care facility owned by:
(a)
a county that is:
(i)
a third, fourth, fifth, or sixth class county, as defined in Section 
17-50-501
; and
(ii)
located outside of a standard metropolitan statistical area, as designated by the 
United States Census Bureau; or
(b)
a special service district if the special service district is:
(i)
created for the purpose of operating the nursing care facility; and
(ii)
within a county that is:
(A)
a third, fourth, fifth, or sixth class county, as defined in Section 
17-50-501
; and
(B)
located outside of a standard metropolitan statistical area, as designated by the 
United States Census Bureau.
(12)
(9)
"Rural emergency medical services" means emergency medical services that are 
provided by a county that is:
(a)
a third, fourth, fifth, or sixth class county, as defined in Section 
17-50-501
; and
(b)
located outside of a standard metropolitan statistical area, as designated by the 
United States Census Bureau.
(13)
(10)
"Rural health clinic" means the same as that term is defined in 42 U.S.C. Sec. 
1395x.
Section 3, Section 
59-12-802
 is amended to read:
59-12-802 (Effective upon governor's approval). Imposition of rural county 
health care tax -- Expenditure of tax revenue -- Base -- Rate -- Administration, collection, 
and enforcement of tax -- Administrative charge.
(1)
(a)
A county legislative body of 
the following counties
a county of the third, fourth, 
fifth, or sixth class
 may impose a sales and use tax of up to 1% on the transactions 
described in Subsection 
59-12-103
(1) located within the county
:
.
(i)
a county of the third, fourth, fifth, or sixth class; or
(ii)
a county of the second class that has:
(A)
a national park within or partially within the county's boundaries; and
(B)
two or more state parks within or partially within the county's boundaries.
(b)
Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax 
under this section on:
(i)
the sales and uses described in Section 
59-12-104
 to the extent the sales and uses 
are exempt from taxation under Section 
59-12-104
;
(ii)
a transaction to the extent a rural city hospital tax is imposed on that transaction 
in a city that imposes a tax under Section 
59-12-804
; and
(iii)
except as provided in Subsection (1)(d), amounts paid or charged for food and 
food ingredients.
(c)
For purposes of this Subsection (1), the location of a transaction is determined in 
accordance with Sections 
59-12-211
 through 
59-12-215
.
(d)
A county legislative body imposing a tax under this section shall impose the tax on 
the purchase price or sales price for amounts paid or charged for food and food 
ingredients if the food and food ingredients are sold as part of a bundled transaction 
attributable to food and food ingredients and tangible personal property other than 
food and food ingredients.
(2)
(a)
Except as provided in Subsection (5)(b), before
Before
 imposing a tax under 
Subsection (1), a county legislative body shall obtain approval to impose the tax from 
a majority of the:
(i)
members of the county's legislative body; and
(ii)
county's registered voters voting on the imposition of the tax.
(b)
The county legislative body shall conduct the election according to the procedures 
and requirements of Title 11, Chapter 14, Local Government Bonding Act.
(3)
Subject to Subsection (4), a county legislative body may use money collected from a tax 
imposed under Subsection (1) to fund:
(a)
for a county described in Subsection (1)(a)(i):
(i)
(a)
the following costs associated with a federally qualified health center within the 
county, a freestanding urgent care center within the county, a rural county health care 
facility within the county, or a rural health clinic within the county:
(A)
(i)
ongoing operating expenses of the center, clinic, or facility;
(B)
(ii)
the acquisition of land for the center, clinic, or facility; or
(C)
(iii)
the design, construction, equipping, or furnishing of the center, clinic, or 
facility;
(ii)
(b)
rural emergency medical services within the county; or
(iii)
(c)
a combination of the activities described in this Subsection 
(3)(a); and
(3).
(b)
for a county described in Subsection (1)(a)(ii), emergency medical services that are 
provided by a political subdivision within that county, subject to Subsection (5)(c).
(4)
(a)
For a tax enacted on or after July 1, 2024,
 by a county described in Subsection 
(1)(a)(i),
 a county legislative body may use money collected from a tax imposed 
under Subsection (1) to fund:
(i)
the costs described in Subsection 
(3)(a)(i)
(3)(a)
;
(ii)
the following activities to mitigate the impacts of visitors within the county:
(A)
emergency medical services;
(B)
solid waste disposal;
(C)
search and rescue activities;
(D)
law enforcement activities; or
(E)
fire protection services;
(iii)
avalanche forecasting within the county; or
(iv)
a combination of the activities described in this Subsection (4)(a).
(b)
For a tax increased on or after July 1, 2024,
 by a county described in Subsection 
(1)(a)(i),
 a county legislative body may use the money collected from the increased 
tax rate to fund the activities described in Subsections (4)(a)(i) through (iv).
(5)
(a)
A county described in Subsection (1)(a)(ii) may impose a tax under this section 
within a portion of the county if the affected area includes:
(i)
the entire unincorporated area of the county; and
(ii)
the entire boundaries of any municipality located within the affected area.
(b)
Before a county described in Subsection (1)(a)(ii) may impose a tax under this 
section within a portion of the county, the county legislative body shall obtain 
approval to impose the tax from a majority of:
(i)
the members of the county's legislative body;
(ii)
the county's registered voters within the affected area voting on the imposition 
of the tax, in an election conducted according to the procedures and requirements 
of Title 11, Chapter 14, Local Government Bonding Act; and
(iii)
(A)
the members of the legislative body of each municipality located within 
the affected area; or
(B)
the members of the governing body of a special service district established 
under Title 17D, Chapter 1, Special Service District Act, to provide emergency 
medical services within the affected area.
(c)
A county described in Subsection (1)(a)(ii) that imposes a tax under this section 
within a portion of the county in accordance with this Subsection (5) may use the 
money collected from the tax to fund emergency medical services that are provided 
by a political subdivision within the affected area.
(6)
(5)
(a)
A tax under this section shall be:
(i)
except as provided in Subsection 
(6)(b)
(5)(b)
, administered, collected, and 
enforced in accordance with:
(A)
the same procedures used to administer, collect, and enforce the tax under:
(I)
Part 1, Tax Collection; or
(II)
Part 2, Local Sales and Use Tax Act; and
(B)
Chapter 1, General Taxation Policies; and
(ii)
levied for a period of 10 years and may be reauthorized at the end of the 10-year 
period by the county legislative body as provided in Subsection (1).
(b)
A tax under this section is not subject to Subsections 
59-12-205
(2) through (5).
(c)
A county legislative body shall distribute money collected from a tax under this 
section quarterly.
(7)
(6)
The commission shall retain and deposit an administrative charge in accordance 
with Section 
59-1-306
 from the revenue the commission collects from a tax under this 
section.
Section 4, Section 
59-12-2401
 is enacted to read:
24. Emergency Services Tax
59-12-2401 (Effective upon governor's approval). Definitions.
As used in this part:
(1)
"Emergency services" means:
(a)
emergency medical services as defined in Section 
53-2d-101
;
(b)
fire protection services; or
(c)
a combination of emergency medical services, as defined in Section 
53-2d-101
, and 
fire protection services.
(2)
"Emergency services tax" means the sales and use tax authorized under Section 
59-12-2402
.
(3)
"Governing body" means:
(a)
for a county, city, or town, the legislative body of the county, city, or town; or
(b)
for a special service district:
(i)
the legislative body of the county, city, or town that established the special service 
district, if no administrative control board has been created under Section 
17D-1-301
; or
(ii)
the administrative control board of the special service district, if an administrative 
control board has been created under Section 
17D-1-301
.
(4)
"Qualifying political subdivision" means:
(a)
a specified county;
(b)
a special service district established under 
Title 17D, Chapter 1, Special Service 
District Act
, to provide emergency services within a specified county; or
(c)
a city or town that:
(i)
is located:
(A)
within a specified county; and
(B)
outside the boundaries of a special service district described in Subsection 
(4)
(b); and
(ii)
provides, or contracts with a special service district described in Subsection 
(4)(b)
 to receive, emergency services within the city or town.
(5)
"Specified county" means a county of the second class that contains a national park and 
two or more state parks within or partially within the county's boundaries.
Section 5, Section 
59-12-2402
 is enacted to read:
59-12-2402 (Effective upon governor's approval). Imposition of emergency 
services tax -- Permitted rates -- Expenditure and distribution of tax revenue -- 
Administration, collection, and enforcement of tax -- Administrative charge.
(1)
(a)
Beginning July 1, 2025, the governing body of a qualifying political subdivision 
may, subject to Subsection 
(1)(b)
, impose a sales and use tax on the transactions 
described in Subsection 
59-12-103(1)
 in the following amount:
(i)
an amount of up to .33% if the governing body:
(A)
first holds a public hearing at which the tax is discussed, subject to Subsection 
(2)
; and
(B)
after the public hearing is held, passes an ordinance or resolution approving 
the tax; or
(ii)
an amount of up to 1% if the governing body obtains approval to impose the tax 
from a majority of:
(A)
the members of the governing body; and
(B)
voters within the qualifying political subdivision voting in an election held for 
that purpose in accordance with 
Title 11, Chapter 14, Local Government 
Bonding Act
.
(b)
(i)
A tax imposed by a county under Subsection 
(1)(a)
 shall be imposed within all 
unincorporated areas of the county.
(ii)
A tax imposed by a special service district under Subsection 
(1)(a)
 shall be 
imposed within the boundaries of each city and town located within the area of the 
special service district.
(iii)
A tax may not be imposed under this section within:
(A)
a portion of a city, town, or the unincorporated area of a county; or
(B)
an area in which a tax under this section has already been imposed.
(c)
Notwithstanding Subsection 
(1)(a)
, a qualifying political subdivision may not impose 
a tax under this section on:
(i)
the sales and uses described in Section 
59-12-104
 to the extent the sales and uses 
are exempt from taxation under Section 
59-12-104
; and
(ii)
except as provided in Subsection (1)(e), amounts paid or charged for food and 
food ingredients.
(d)
For purposes of this Subsection 
(1)
, the location of a transaction is determined in 
accordance with Sections 
59-12-211
 through 
59-12-215
.
(e)
A qualifying political subdivision that imposes a tax under this section shall impose 
the tax on the purchase price or sales price for amounts paid or charged for food and 
food ingredients if the food and food ingredients are sold as part of a bundled 
transaction attributable to food and food ingredients and tangible personal property 
other than food and food ingredients.
(2)
(a)
The governing body of a qualifying political subdivision proposing a tax rate 
described in Subsection 
(1)(a)(i)
 shall, as a class A notice under Section 
63G-30-102
, 
publish notice of the public hearing required by Subsection (1)(a)(i)(A) for at least 14 
days before the day of the public hearing.
(b)
The notice described in Subsection 
(2)(a)
 shall:
(i)
state the governing body's intent to adopt a tax under this section;
(ii)
describe the proposed tax rate;
(iii)
specify the date, time, and location of the public hearing; and
(iv)
state that the purpose of the public hearing is to obtain public comments 
regarding the proposed tax.
(3)
For a county proposing a tax rate described in Subsection 
(1)(a)(ii)
, the voter approval 
requirement in Subsection 
(1)(a)(ii)
(B) applies only to voters residing within the 
unincorporated areas of the county.
(4)
(a)
Subject to Subsection 
(4)(b)
, a qualifying political subdivision may use money 
collected from a tax imposed under this section to fund emergency services provided 
by, or on behalf of, a qualifying political subdivision.
(b)
A qualifying political subdivision that imposes a tax under this section may:
(i)
use money collected from the tax to fund emergency services within an area in 
which the tax is not imposed; and
(ii)
enter into an agreement authorized by 
Title 11, Chapter 13, Interlocal 
Cooperation Act
, allowing for another qualifying political subdivision to use 
money collected from the tax to fund emergency services.
(5)
(a)
Except as provided in Subsection 
(5)(b)
, a tax under this section shall be 
administered, collected, and enforced in accordance with the same procedures used to 
administer, collect, and enforce the tax under:
(i)
(A)
Part 1
, Tax Collection; or
(B)
Part 2
, Local Sales and Use Tax Act; and
(ii)
Chapter 1, General Taxation Policies
.
(b)
A tax under this section is not subject to Subsections 
59-12-205(2)
 through (5).
(c)
A tax under this section shall be levied for a period of 10 years and may be 
reauthorized at the end of the 10-year period by the governing body that imposed the 
tax in accordance with the requirements of Subsections 
(1)
 through (3).
(d)
Except as provided in Subsection 
(5)(e)
, the commission shall distribute the revenue 
the commission collects from a tax imposed under this section directly to the 
qualifying political subdivision imposing the tax.
(e)
The commission shall retain and deposit an administrative charge in accordance with 
Section 
59-1-306
 from the revenue the commission collects from a tax under this 
section.
Section 6, Section 
59-12-2403
 is enacted to read:
59-12-2403 (Effective upon governor's approval). Enactment, repeal, or change 
in the rate of an emergency services tax -- Annexation -- Notice.
(1)
(a)
Except as provided in Subsection (2), if a qualifying political subdivision enacts 
or repeals an emergency services tax or changes the rate of an emergency services 
tax, the enactment, repeal, or change shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
after a 90-day period beginning on the date the commission receives notice that 
meets the requirements of Subsection 
(1)(b)
 from the qualifying political 
subdivision.
(b)
The notice described in Subsection 
(1)(a)(ii)
 shall state:
(i)
that the qualifying political subdivision will enact, repeal, or change the rate of an 
emergency services tax;
(ii)
the statutory authority for the emergency services tax;
(iii)
the effective date of the enactment, repeal, or change in the rate of the emergency 
services tax; and
(iv)
if the county enacts or changes the rate of the emergency services tax, the rate of 
the emergency services tax.
(2)
(a)
If the billing period for a transaction begins before the effective date of the 
enactment of an emergency services tax or the increase in the rate of an emergency 
services tax, the enactment of the tax or the tax rate increase shall take effect on the 
first day of the first billing period that begins after the effective date of the enactment 
of the tax or the tax rate increase.
(b)
If the billing period for a transaction begins before the effective date of the repeal of 
an emergency services tax or the decrease in the rate of an emergency services tax, 
the repeal of the tax or the tax rate decrease shall take effect on the first day of the 
last billing period that began before the effective date of the repeal of the tax or the 
tax rate decrease.
(c)
If a tax due under this part on a catalogue sale is computed on the basis of sales and 
use tax rates published in the catalogue, an enactment, repeal, or change in the rate of 
a tax described in Subsection 
(1)(a)
 shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
beginning 60 days after the effective date of the enactment, repeal, or change in 
the rate of the tax under Subsection 
(1)(a)
.
(3)
(a)
Except as provided in Subsection 
(4)
, if an annexation will result in the 
enactment, repeal, or change in the rate of an emergency services tax for an annexing 
area, the enactment, repeal, or change shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
after a 90-day period beginning on the date the commission receives notice 
meeting the requirements of Subsection 
(3)(b)
 from the political subdivision that 
annexes the annexing area.
(b)
The notice described in Subsection 
(3)(a)(ii)
 shall state:
(i)
that the annexation described in Subsection 
(3)(a)
 will result in the enactment, 
repeal, or change in the rate of an emergency services tax for the annexing area;
(ii)
the statutory authority for the emergency services tax;
(iii)
the effective date of the enactment, repeal, or change in the rate of the emergency 
services tax; and
(iv)
if the annexation results in the enactment or change in the rate of an emergency 
services tax for the annexing area, the rate of the emergency services tax.
(4)
(a)
If the billing period for a transaction begins before the effective date of the 
enactment of an emergency services tax or the increase in the rate of an emergency 
services tax, the enactment of the tax or the tax rate increase shall take effect on the 
first day of the first billing period that begins after the effective date of the enactment 
of the tax or the tax rate increase.
(b)
If the billing period for a transaction begins before the effective date of the repeal of 
an emergency services tax or the decrease in the rate of an emergency services tax, 
the repeal of the tax or the tax rate decrease shall take effect on the first day of the 
last billing period that began before the effective date of the repeal of the tax or the 
tax rate decrease.
(c)
If a tax due under this part on a catalogue sale is computed on the basis of sales and 
use tax rates published in the catalogue, an enactment, repeal, or change in the rate of 
a tax described in Subsection 
(3)(a)
 shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
beginning 60 days after the effective date of the enactment, repeal, or change in 
the rate of the tax under Subsection 
(3)(a)
.
(5)
In accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, and for 
purposes of Subsections 
(2)(c)
 and (4)(c), the commission may by rule define the term 
"catalogue sale."
Section 7, Section 
59-12-2404
 is enacted to read:
59-12-2404 (Effective upon governor's approval). Seller or certified service 
provider reliance on commission information.
A seller or certified service provider is not liable for failing to collect an emergency 
services tax if the seller's or certified service provider's failure to collect the emergency 
services tax is as a result of the seller's or certified service provider's reliance on incorrect data 
provided by the commission in a database created by the commission:
(1)
containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2)
indicating the taxability of tangible personal property, a product transferred 
electronically, or a service.
Section 8, Section 
59-12-2405
 is enacted to read:
59-12-2405 (Effective upon governor's approval). Certified service provider or 
model 2 seller reliance on commission certified software.
(1)
Except as provided in Subsection (2) and subject to Subsection (4), a certified service 
provider or model 2 seller is not liable for failing to collect an emergency services tax if:
(a)
the certified service provider or model 2 seller relies on software the commission 
certifies; and
(b)
the certified service provider's or model 2 seller's failure to collect an emergency 
services tax is a result of the seller's or certified service provider's reliance on 
incorrect data:
(i)
provided by the commission; or
(ii)
in the software the commission certifies.
(2)
The relief from liability described in Subsection (1) does not apply if a certified service 
provider or model 2 seller incorrectly classifies an item or transaction into a product 
category the commission certifies.
(3)
If the taxability of a product category is incorrectly classified in software the 
commission certifies, the commission shall:
(a)
notify a certified service provider or model 2 seller of the incorrect classification of 
the taxability of a product category in software the commission certifies; and
(b)
state in the notice required by Subsection (3)(a) that the certified service provider or 
model 2 seller is liable for failing to collect the correct amount of tax under this part 
on the incorrectly classified product category if the certified service provider or 
model 2 seller fails to correct the taxability of the item or transaction within 10 days 
after the day on which the certified service provider or model 2 seller receives the 
notice.
(4)
If a certified service provider or model 2 seller fails to correct the taxability of an item 
or transaction within 10 days after the day on which the certified service provider or 
model 2 seller receives the notice described in Subsection (3), the certified service 
provider or model 2 seller is liable for failing to collect the correct amount of tax under 
this part on the item or transaction.
Section 9, Section 
59-12-2406
 is enacted to read:
59-12-2406 (Effective upon governor's approval). Purchaser relief from liability.
(1)
(a)
Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty 
under Section 
59-1-401
 for failure to pay an emergency services tax or an 
underpayment of the emergency services tax if:
(i)
the purchaser's seller or certified service provider relies on incorrect data provided 
by the commission:
(A)
on a tax rate;
(B)
on a boundary;
(C)
on a taxing jurisdiction; or
(D)
in the taxability matrix the commission provides in accordance with the 
agreement; or
(ii)
the purchaser, regardless of whether the purchaser holds a direct payment permit 
in accordance with Section 
59-12-107.1
, relies on incorrect data provided by the 
commission:
(A)
on a tax rate;
(B)
on a boundary;
(C)
on a taxing jurisdiction; or
(D)
in the taxability matrix the commission provides in accordance with the 
agreement.
(b)
For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under 
Section 
59-1-401
 for failure to pay a tax due under this part or an underpayment if 
the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's 
reliance on incorrect data provided by the commission is a result of conduct that is:
(i)
fraudulent;
(ii)
intentional; or
(iii)
willful.
(2)
In addition to the relief from a penalty described in Subsection (1), a purchaser is not 
liable for a tax or interest under Section 
59-1-402
 for failure to pay a tax due under this 
part or an underpayment if:
(a)
the purchaser's seller or certified service provider relies on:
(i)
incorrect data provided by the commission:
(A)
on a tax rate;
(B)
on a boundary; or
(C)
on a taxing jurisdiction; or
(ii)
an erroneous classification by the commission:
(A)
in the taxability matrix the commission provides in accordance with the 
agreement; and
(B)
with respect to a term that is in the library of definitions and that is listed as 
taxable or exempt, included in or excluded from "sales price," or included in or 
excluded from a definition; or
(b)
the purchaser, regardless of whether the purchaser holds a direct payment permit in 
accordance with Section 
59-12-107.1
, relies on:
(i)
incorrect data provided by the commission:
(A)
on a tax rate;
(B)
on a boundary; or
(C)
on a taxing jurisdiction; or
(ii)
an erroneous classification by the commission:
(A)
in the taxability matrix the commission provides in accordance with the 
agreement; and
(B)
with respect to a term that is in the library of definitions and that is listed as 
taxable or exempt, included in or excluded from "sales price," or included in or 
excluded from a definition.
Section 10. 
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 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.
1-6-25 4:32 PM