Utah Code 59-12-1201. Motor vehicle rental tax — Rate — Exemptions — Administration, collection, and enforcement of tax — Administrative charge

Superseded 7/1/2023)

Superseded 7/1/2023
59-12-1201. Motor vehicle rental tax — Rate — Exemptions — Administration, collection, and enforcement of tax — Administrative charge — Deposits.

(1)

Terms Used In Utah Code 59-12-1201

Agreement: means the Streamlined Sales and Use Tax Agreement adopted on November 12, 2002, including amendments made to the Streamlined Sales and Use Tax Agreement after November 12, 2002. See Utah Code 59-12-102
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
Motor vehicle: means the same as that term is defined in Section 41-1a-102. See Utah Code 59-12-102
Person: includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality, district, or other local governmental entity of the state, or any group or combination acting as a unit. See Utah Code 59-12-102
rental: includes an agreement covering a motor vehicle and trailer if the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code. See Utah Code 59-12-102
State: means the state of Utah, its departments, and agencies. See Utah Code 59-12-102
vehicle: includes :

(i)	a vehicle described in Subsection (143)(a); or

(ii)

(A)	a locomotive;

(B)	a freight car;

(C)	railroad work equipment; or

(D)	other railroad rolling stock. See Utah Code 59-12-102
(a)	Except as provided in Subsection (3), there is imposed a tax of 2.5% on all short-term leases and rentals of motor vehicles not exceeding 30 days.

(b)	The tax imposed in this section is in addition to all other state, county, or municipal fees and taxes imposed on rentals of motor vehicles.

(2)

(a)	Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax imposed under Subsection (1) shall take effect on the first day of a calendar quarter.

(b)

(i)

For a transaction subject to a tax under Subsection (1), a tax rate increase shall take effect on the first day of the first billing period:

(A)	that begins after the effective date of the tax rate increase; and

(B)	if the billing period for the transaction begins before the effective date of a tax rate increase imposed under Subsection (1).

(ii)

For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:

(A)	that began before the effective date of the repeal of the tax or the tax rate decrease; and

(B)	if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1).

(3)

A motor vehicle is exempt from the tax imposed under Subsection (1) if:

(a)	the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;

(b)	the motor vehicle is rented as a personal household goods moving van; or

(c)	the lease or rental of the motor vehicle is made for the purpose of temporarily replacing a person‘s motor vehicle that is being repaired pursuant to a repair agreement or an insurance agreement.

(4)

(a)

(i)

The tax authorized under this section shall be administered, collected, and enforced in accordance with:

(A)	the same procedures used to administer, collect, and enforce the tax under 1; and

(B)	Chapter 1, General Taxation Policies.

(ii)	Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to Subsections 59-12-103(4) through (9) or Section 59-12-107.1 or 59-12-123.

(b)	The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this part.

(c)	Except as provided under Subsection (4)(b), all revenue received by the commission under this section shall be deposited daily with the state treasurer and credited monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.

Amended by Chapter 184, 2016 General Session
Amended by Chapter 291, 2016 General Session

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Utah Code 59-12-1201. Motor vehicle rental tax — Rate — Exemptions — Administration, collection, and enforcement of tax — Administrative charge — Deposits

Terms Used In Utah Code 59-12-1201