(1)  As used in this section:

Terms Used In Utah Code 59-13-203.1

  • Commission: means the State Tax Commission. See Utah Code 59-13-102
  • Fiduciary: A trustee, executor, or administrator.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means :Utah Code 68-3-12.5
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Trustee: A person or institution holding and administering property in trust.
(a)  “applicant” means a person that:

(i)  is required by this section to obtain a license; and

(ii)  submits an application:

(A)  to the commission; and

(B)  for a license under this section;

(b)  “application” means an application for a license under this section;

(c)  “fiduciary of the applicant” means a person that:

(i)  is required to collect, truthfully account for, and pay over a tax under this part for an applicant; and

(ii) 

(A)  is a corporate officer of the applicant described in Subsection (1)(c)(i);

(B)  is a director of the applicant described in Subsection (1)(c)(i);

(C)  is an employee of the applicant described in Subsection (1)(c)(i);

(D)  is a partner of the applicant described in Subsection (1)(c)(i);

(E)  is a trustee of the applicant described in Subsection (1)(c)(i); or

(F)  has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

(d)  “fiduciary of the licensee” means a person that:

(i)  is required to collect, truthfully account for, and pay over a tax under this part for a licensee; and

(ii) 

(A)  is a corporate officer of the licensee described in Subsection (1)(d)(i);

(B)  is a director of the licensee described in Subsection (1)(d)(i);

(C)  is an employee of the licensee described in Subsection (1)(d)(i);

(D)  is a partner of the licensee described in Subsection (1)(d)(i);

(E)  is a trustee of the licensee described in Subsection (1)(d)(i); or

(F)  has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

(e)  “license” means a license under this section; and

(f)  “licensee” means a person that is licensed under this section by the commission.

(2)  A person that is required to collect a tax under this part is guilty of a criminal violation as provided in Section 59-1-401 if before obtaining a license under this section that person engages in business within the state.

(3)  The license described in Subsection (2):

(a)  shall be granted and issued:

(i)  by the commission in accordance with this section;

(ii)  without a license fee; and

(iii)  if:

(A)  an applicant:

(I)  states the applicant’s name and address in the application; and

(II)  provides other information in the application that the commission may require; and

(B)  the person meets the requirements of this section to be granted a license as determined by the commission;

(b)  may not be assigned to another person; and

(c)  is valid:

(i)  only for the person named on the license; and

(ii)  until:

(A)  the person described in Subsection (3)(c)(i):

(I)  ceases to do business; or

(II)  changes that person’s business address; or

(B)  the commission revokes the license.

(4)  The commission shall review an application and determine whether:

(a)  the applicant meets the requirements of this section to be issued a license; and

(b)  a bond is required to be posted with the commission in accordance with Subsection (5) before the applicant may be issued a license.

(5) 

(a)  An applicant shall post a bond with the commission before the commission may issue the applicant a license if:

(i)  a license under this section was revoked for a delinquency under this part for:

(A)  the applicant;

(B)  a fiduciary of the applicant; or

(C)  a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or

(ii)  there is a delinquency in paying a tax under this part for:

(A)  the applicant;

(B)  a fiduciary of the applicant; or

(C)  a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part.

(b)  If the commission determines it is necessary to ensure compliance with this part, the commission may require a licensee to:

(i)  for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsections (5)(c) through (g); or

(ii)  for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.

(c)  A bond under this Subsection (5) shall be:

(i)  executed by:

(A)  for an applicant, the applicant as principal, with a corporate surety; or

(B)  for a licensee, the licensee as principal, with a corporate surety; and

(ii)  payable to the commission conditioned upon the faithful performance of all of the requirements of this part including:

(A)  the payment of all taxes under this part;

(B)  the payment of any:

(I)  penalty as provided in Section 59-1-401; or

(II)  interest as provided in Section 59-1-402; or

(C)  any other obligation of the:

(I)  applicant under this part; or

(II)  licensee under this part.

(d)  Except as provided in Subsection (5)(f), the commission shall calculate the amount of a bond under this Subsection (5) on the basis of:

(i)  commission estimates of:

(A)  an applicant’s tax liability under this part; or

(B)  a licensee’s tax liability under this part; and

(ii)  the amount of a delinquency described in Subsection (5)(e) if:

(A)  a license under this section was revoked for a delinquency under this part for:

(I) 

(Aa)  an applicant; or

(Bb)  a licensee;

(II)  a fiduciary of the:

(Aa)  applicant; or

(Bb)  licensee; or

(III)  a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or

(B)  there is a delinquency in paying a tax under this part for:

(I) 

(Aa)  an applicant; or

(Bb)  a licensee;

(II)  a fiduciary of the:

(Aa)  applicant; or

(Bb)  licensee; or

(III)  a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.

(e)  Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):

(i)  for an applicant, the amount of the delinquency is the sum of:

(A)  the amount of any delinquency that served as a basis for revoking the license under this section of:

(I)  the applicant;

(II)  a fiduciary of the applicant; or

(III)  a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or

(B)  the amount of tax that any of the following owe under this part:

(I)  the applicant;

(II)  a fiduciary of the applicant; and

(III)  a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this part; or

(ii)  for a licensee, the amount of the delinquency is the sum of:

(A)  the amount of any delinquency that served as a basis for revoking the license under this section of:

(I)  the licensee;

(II)  a fiduciary of the licensee; or

(III)  a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part; or

(B)  the amount of tax that any of the following owe under this part:

(I)  the licensee;

(II)  a fiduciary of the licensee; and

(III)  a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this part.

(f)  Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5) may not:

(i)  be less than $10,000; or

(ii)  exceed $500,000.

(g) 

(i)  Subject to Subsection (5)(g)(ii), a bond required by this section may be combined into one bond with any other bond required by this chapter.

(ii)  For purposes of Subsection (5)(g)(i), if a bond required by this section is combined into one bond with any other bond required by this chapter, the amount of that combined bond is determined by:

(A)  calculating the separate amount of each bond required for each type of fuel included in the combined bond; and

(B)  aggregating the separate amounts calculated in Subsection (5)(g)(ii)(A).

(6) 

(a)  The commission shall revoke a license under this section if:

(i)  a licensee violates any provision of this part; and

(ii)  before the commission revokes the license the commission provides the licensee:

(A)  reasonable notice; and

(B)  a hearing.

(b)  If the commission revokes a licensee’s license in accordance with Subsection (6)(a), the commission may not issue another license to that licensee until that licensee complies with the requirements of this part, including:

(i)  paying any:

(A)  tax due under this part;

(B)  penalty as provided in Section 59-1-401; or

(C)  interest as provided in Section 59-1-402; and

(ii)  posting a bond in accordance with Subsection (5).

Amended by Chapter 382, 2008 General Session

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