Utah Code 59-12-1302. Imposition of tax — Base — Rate — Enactment or repeal of tax — Tax rate change — Effective date — Notice requirements — Administration, collection, and enforcement of tax

59-12-1302. Imposition of tax — Base — Rate — Enactment or repeal of tax — Tax rate change — Effective date — Notice requirements — Administration, collection, and enforcement of tax — Administrative charge.

(1)	Beginning on or after January 1, 1998, the governing body of a town may impose a tax as provided in this part in an amount that does not exceed 1%.

Terms Used In Utah Code 59-12-1302

Bundled transaction: means the sale of two or more items of tangible personal property, products, or services if the tangible personal property, products, or services are:

(i)	distinct and identifiable; and

(ii)

sold for one nonitemized price. See Utah Code 59-12-102

Food and food ingredients: includes an item described in Subsection (96)(b)(iii). See Utah Code 59-12-102

Sale: includes :

(i)	installment and credit sales;

(ii)	any closed transaction constituting a sale;

(iii)

any sale of electrical energy, gas, services, or entertainment taxable under this chapter;

(iv)	any transaction if the possession of property is transferred but the seller retains the title as security for the payment of the price; and

(v)

any transaction under which right to possession, operation, or use of any article of tangible personal property is granted under a lease or contract and the transfer of possession would be taxable if an outright sale were made. See Utah Code 59-12-102

sales price: include :

(i)	the seller's cost of the tangible personal property, a product transferred electronically, or services sold;

(ii)

expenses of the seller, including:

(A)	the cost of materials used;

(B)	a labor cost;

(C)	a service cost;

(D)

interest;

(E)

a loss;

(F)	the cost of transportation to the seller; or

(G)	a tax imposed on the seller;

(iii)

a charge by the seller for any service necessary to complete the sale; or

(iv)

consideration a seller receives from a person other than the purchaser if:

(A)

(I)	the seller actually receives consideration from a person other than the purchaser; and

(II)	the consideration described in Subsection (104)(b)(iv)(A)(I) is directly related to a price reduction or discount on the sale;

(B)	the seller has an obligation to pass the price reduction or discount through to the purchaser;

(C)	the amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale to the purchaser; and

(D)

(I)

(Aa)	the purchaser presents a certificate, coupon, or other documentation to the seller to claim a price reduction or discount; and

(Bb)	a person other than the seller authorizes, distributes, or grants the certificate, coupon, or other documentation with the understanding that the person other than the seller will reimburse any seller to whom the certificate, coupon, or other documentation is presented;

(II)

the purchaser identifies that purchaser to the seller as a member of a group or organization allowed a price reduction or discount, except that a preferred customer card that is available to any patron of a seller does not constitute membership in a group or organization allowed a price reduction or discount; or

(III)

the price reduction or discount is identified as a third party price reduction or discount on the:

(Aa)	invoice the purchaser receives; or

(Bb)

certificate, coupon, or other documentation the purchaser presents. See Utah Code 59-12-102

State: means the state of Utah, its departments, and agencies. See Utah Code 59-12-102

Town: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5

Use: means the exercise of any right or power over tangible personal property, a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the ownership or the leasing of that tangible personal property, product transferred electronically, or service. See Utah Code 59-12-102

(2)

A town may impose a tax as provided in this part if the town imposed a license fee or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1, 1996.

(3)

A town imposing a tax under this section shall:

(a)	except as provided in Subsection (4), impose the tax on the transactions described in Subsection 59-12-103(1) located within the town; and

(b)	provide an effective date for the tax as provided in Subsection (5).

(4)

(a)

A town 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 (4)(c), amounts paid or charged for food and food ingredients.

(b)	For purposes of this Subsection (4), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.

(c)

A town 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.

(5)

(a)

For purposes of this Subsection (5):

(i)	“Annexation” means an annexation to a town under 4.

(ii)	“Annexing area” means an area that is annexed into a town.

(b)

(i)

Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:

(A)	on the first day of a calendar quarter; and

(B)	after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(b)(ii) from the town.

(ii)

The notice described in Subsection (5)(b)(i)(B) shall state:

(A)	that the town will enact or repeal a tax or change the rate of a tax under this part;

(B)	the statutory authority for the tax described in Subsection (5)(b)(ii)(A);

(C)	the effective date of the tax described in Subsection (5)(b)(ii)(A); and

(D)	if the town enacts the tax or changes the rate of the tax described in Subsection (5)(b)(ii)(A), the rate of the tax.

(c)

(i)

If the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.

(ii)	The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1).

(d)

(i)

If a tax due under this chapter 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 (5)(b)(i) takes effect:

(A)	on the first day of a calendar quarter; and

(B)	beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (5)(b)(i).

(ii)	In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term “catalogue sale.”

(e)

(i)

Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:

(A)	on the first day of a calendar quarter; and

(B)	after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.

(ii)

The notice described in Subsection (5)(e)(i)(B) shall state:

(A)	that the annexation described in Subsection (5)(e)(i) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;

(B)	the statutory authority for the tax described in Subsection (5)(e)(ii)(A);

(C)	the effective date of the tax described in Subsection (5)(e)(ii)(A); and

(D)	if the town enacts the tax or changes the rate of the tax described in Subsection (5)(e)(ii)(A), the rate of the tax.

(f)

(i)

If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase.

(ii)	The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1).

(g)

(i)

(A)	on the first day of a calendar quarter; and

(B)	beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (5)(e)(i).

(ii)	In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term “catalogue sale.”

(6)

The commission shall:

(a)	distribute the revenue generated by the tax under this section to the town imposing the tax; and

(b)

except as provided in Subsection (8), administer, collect, and enforce the tax authorized under this section in accordance with:

(i)

the same procedures used to administer, collect, and enforce the tax under:

(A)

1; or

(B)

2; and

(ii)	Chapter 1, General Taxation Policies.

(7)	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 part.

(8)	A tax under this section is not subject to Subsections 59-12-205(2) through (5).

Amended by Chapter 471, 2023 General Session

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Utah Code 59-12-1302. Imposition of tax — Base — Rate — Enactment or repeal of tax — Tax rate change — Effective date — Notice requirements — Administration, collection, and enforcement of tax — Administrative charge

Terms Used In Utah Code 59-12-1302