59-12-403.  Enactment or repeal of tax — Tax rate change — Effective date — Notice requirements — Administration, collection, and enforcement of tax — Administrative charge.

(1)  For purposes of this section:

Terms Used In Utah Code 59-12-403

(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
  • 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
    • (a)  “Annexation” means an annexation to a city or town under 4.

    (b)  “Annexing area” means an area that is annexed into a city or town.

    (2) 

    (a)  Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a city or town enacts or repeals a tax or changes the rate of a tax under this part, 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 (2)(b) from the city or town.

    (b)  The notice described in Subsection (2)(a)(ii) shall state:

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

    (ii)  the statutory authority for the tax described in Subsection (2)(b)(i);

    (iii)  the effective date of the tax described in Subsection (2)(b)(i); and

    (iv)  if the city or town enacts the tax or changes the rate of the tax described in Subsection (2)(b)(i), the rate of the tax.

    (c) 

    (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 Section 59-12-401, 59-12-402, or 59-12-402.1, 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 Section 59-12-401, 59-12-402, or 59-12-402.1.

    (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 (2)(a) 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 (2)(a).

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

    (3) 

    (a)  Except as provided in Subsection (3)(c) or (d), 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:

    (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 city or town 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 an enactment, repeal, or change in the rate of a tax under this part for the annexing area;

    (ii)  the statutory authority for the tax described in Subsection (3)(b)(i);

    (iii)  the effective date of the tax described in Subsection (3)(b)(i); and

    (iv)  if the city or town enacts the tax or changes the rate of the tax described in Subsection (3)(b)(i), the rate of the tax.

    (c) 

    (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 Section 59-12-401, 59-12-402, or 59-12-402.1, 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 Section 59-12-401, 59-12-402, or 59-12-402.1.

    (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 (3)(a) 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 (3)(a).

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

    (4) 

    (a)  Except as provided in Subsection (4)(b), a tax authorized under this part shall be administered, collected, and enforced 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.

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

    (5)  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.

    Amended by Chapter 471, 2023 General Session

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