Utah Code 59-12-709. Purchaser relief from liability

(1)

Terms Used In Utah Code 59-12-709

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
Certified service provider: means an agent certified:

(a)	by the governing board of the agreement; and

(b)

to perform a seller's sales and use tax functions for an agreement sales and use tax, as outlined in the contract between the governing board of the agreement and the certified service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases. See Utah Code 59-12-102

Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.

Purchaser: means a person to whom:

(a)	a sale of tangible personal property is made;

(b)	a product is transferred electronically; or

(c)

a service is furnished. See Utah Code 59-12-102

Seller: includes a marketplace facilitator. See Utah Code 59-12-102

(a)

Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment 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 as 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:

(I)	in the library of definitions; and

(II)

that is:

(Aa)	listed as taxable or exempt;

(Bb)	included in or excluded from “sales price”; or

(Cc)	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:

(I)	in the library of definitions; and

(II)

that is:

(Aa)	listed as taxable or exempt;

(Bb)	included in or excluded from “sales price”; or

(Cc)	included in or excluded from a definition.

Enacted by Chapter 384, 2008 General Session

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