Tax Modifications

91
38-12-101
59-1-213
59-1-214
59-1-401
59-1-1410
59-1-1413
59-2-301.1
59-2-303.3
59-2a-101
59-2a-106
59-4-101
59-4-103
59-6-103
59-7-606
59-7-607
59-7-801
59-10-1010
59-10-1018
59-10-1403.2
59-11-101
59-11-102
59-11-103
59-11-104
59-11-105
59-11-106
59-11-107
59-11-109
59-11-110
59-11-111
59-11-112
59-11-113
59-11-114
59-11-115
59-12-102
59-12-203
59-12-603
59-12-703
59-12-806
59-12-1201
59-12-1402
59-12-2403
38-12-101
59-1-213
59-1-214
59-1-401
59-1-1410
59-1-1413
59-2-301.1
59-2-303.3
59-2a-101
59-2a-106
59-4-101
59-4-103
59-6-103
59-7-606
59-7-607
59-7-801
59-10-1010
59-10-1018
59-10-1403.2
59-11-101
59-11-102
59-11-103
59-11-104
59-11-105
59-11-106
59-11-107
59-11-109
59-11-110
59-11-111
59-11-112
59-11-113
59-11-114
59-11-115
59-12-102
59-12-203
59-12-603
59-12-703
59-12-806
59-12-1201
59-12-1402
59-12-2403
3
Tax Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Steve Eliason
Senate Sponsor: Daniel McCay
LONG TITLE
General Description:
This bill modifies tax provisions.
Highlighted Provisions:
This bill:
consolidates certain State Tax Commission reports in relation to federal tax law changes;
provides penalty provisions that apply if a producer fails to file a Form 1099 for mineral
production tax withholding or fails to file the Form 1099 on time;
modifies filing requirements applicable to producers for mineral production tax
withholding;
clarifies assessment requirements for the common areas of a condominium or community
association;
increases property valuation thresholds for which county reporting to the State Tax
Commission and the Revenue and Taxation Interim Committee is required;
modifies the definition of "indigent individual," as applied to property tax relief, by
removing language that limits a finding of extreme hardship to counties;
allows a taxpayer to appeal a county's denial of the taxpayer's application for property tax
relief on the basis of late filing;
consolidates a list of all privilege tax exemptions within the privilege tax statute;
consolidates certain tax credit review requirements applicable to the Utah low-income
housing tax credit;
expands the definition of "Utah unrelated business income," as applied to corporate
income tax, to include allocated income;
modifies the taxpayer tax credit to align with federal tax changes;
extends provisions allowing for pass-through entities to pay taxes on behalf of individuals;
expands the definition of "short-term rental," as applied to sales and use tax, to include
rentals involving real property;
requires a county that imposes the 1% local option sales and use tax to distribute revenue
collected within a newly-incorporated municipality to that municipality for a certain
period;
increases the weight-based motor vehicle exemption for the motor vehicle rental tax;
modifies the motor vehicle exemptions for the tourism, recreation, cultural, convention,
and airport facilities tax to match the exemptions for the motor vehicle rental tax;
requires a taxing entity to provide notice of the reauthorization of certain local option
sales taxes to the State Tax Commission within a certain period before the
reauthorization takes effect;
prohibits the State Tax Commission from enforcing a reauthorized local option sales tax
unless the taxing entity provides timely notice of the reauthorization;
repeals obsolete tax provisions, including the income tax credit for items using cleaner
burning fuels and the inheritance tax; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
38-12-101
Effective
05/06/26
, as last amended by Laws of Utah 2009, Chapter 212
59-1-213
Effective
05/06/26
, as last amended by Laws of Utah 2016, Chapter 135
59-1-214
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 225
59-1-401
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2025, Chapter 258
59-1-1410
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 275
59-1-1413
Effective
05/06/26
, as enacted by Laws of Utah 2009, Chapter 212
59-2-301.1
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
59-2-303.3
Effective
05/06/26
Applies beginning
01/01/26
, as enacted by Laws of
Utah 2024, Chapter 263
59-2a-101
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-2a-106
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
Chapter 172
59-4-101
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 31
59-6-103
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2017, Chapter 226
59-7-607
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 413
59-7-801
Effective
05/06/26
, as last amended by Laws of Utah 2005, Chapter 225
59-10-1010
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 413
59-10-1018
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2023, Chapter 459
59-10-1403.2
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by
Laws of Utah 2023, Chapter 470
59-12-102
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapters 9, 12
59-12-203
Effective
07/01/26
, as last amended by Laws of Utah 2024, Chapter 438
59-12-603
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
59-12-703
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
59-12-806
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
59-12-1201
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 285
59-12-1402
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapters 290,
399
59-12-2403
Effective
07/01/26
, as enacted by Laws of Utah 2025, First Special
Session, Chapter 12
ENACTS:
59-4-103
Effective
05/06/26
, Utah Code Annotated 1953
REPEALS:
59-7-606
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2003, Chapter 198
59-11-101
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
59-11-102
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2010, Chapter 218
59-11-103
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
59-11-104
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
59-11-105
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
59-11-106
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 1988, Chapter 212
59-11-107
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 1993, Second Special Session, Chapters 1, 1
59-11-109
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 1993, Second Special Session, Chapters 1, 1
59-11-110
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapters 2, 3
59-11-111
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
59-11-112
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
59-11-113
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2009, Chapter 212
59-11-114
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2010, Chapter 324
59-11-115
Effective
05/06/26
Applies beginning
01/01/26
, as renumbered and
amended by Laws of Utah 1987, Chapter 2
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
38-12-101
is amended to read:
38-12-101
Effective
05/06/26
. Definitions.
For purposes of this chapter:
(1)
"Lien" means:
(a)
failure to pay money owed for property, services, or a notice of interest, a judgment,
or any other encumbrance on the title, that becomes a charge against or interest in:
(i)
real property, a building, a structure, or an improvement including any franchise,
privilege, appurtenance, machinery, or fixture pertaining to or used in connection
with any real property, building, structure, or improvement;
(ii)
personal property; or
(iii)
a judgment, settlement, or compromise; or
(b)
a tax as provided in Section
59-1-1413
,
59-5-108
,
59-5-208
,
59-11-110
,
or
59-12-112
.
(2)
"Lien" does not mean a charge against or interest in, for failure to pay money owed for
property, services, or a judgment, any:
(a)
bank account;
(b)
pension; or
(c)
garnishment.
Section 2. Section
59-1-213
is amended to read:
59-1-213
Effective
05/06/26
. Annual report on Internal Revenue Code changes.
(1)
The commission shall annually provide an electronic report to the Revenue and
Taxation Interim Committee on or before
the
October
interim meeting
1
concerning
the impacts of the reliance of this title on the Internal Revenue Code, including:
(1)
(a)
any modification to the Internal Revenue Code that is likely to have a fiscal
impact on state revenues:
(a)
(i)
that became effective:
(i)
(A)
if the commission is preparing its initial report in accordance with this
section, during the previous calendar year; or
(ii)
(B)
if the commission has prepared a previous report in accordance with this
section, after the most recent report prepared in accordance with this section; or
(b)
(ii)
that have been enacted and will become effective prior to the end of the
calendar year that begins January 1 following the current report prepared in
accordance with this section;
(2)
(b)
the fiscal impacts a modification described in Subsection
(1)
(1)(a)
may have
on state revenues; and
(3)
(c)
statutory or administrative options to:
(a)
(i)
implement the effects on this title of a modification described in Subsection
(1)
(1)(a)
; or
(b)
(ii)
change this title to prevent this title from implementing a modification
described in Subsection
(1)
(1)(a)
.
(2)
In a year in which the commission, the Office of the Legislative Fiscal Analyst, and the
Governor's Office of Planning and Budget predict a material increase in state income tax
revenue for the next fiscal year by consensus in accordance with Section
59-1-214
, the
commission shall submit the report described in Subsection
59-1-214(4)(a)
as part of the
report required under this section for the same year.
Section 3. Section
59-1-214
is amended to read:
59-1-214
Effective
05/06/26
. Reporting on federal tax law changes expected to
result in a material increase in state income tax revenue.
(1)
As used in this section:
(a)
"Federal tax law change" means any modification to the Internal Revenue Code
approved by Congress.
(b)
"Material increase in state income tax revenue" means a net increase in revenue the
state is expected to receive from the income taxes imposed under this title for a fiscal
year, as compared to the latest consensus revenue estimates adopted by the Executive
Appropriations Committee, that is equal to or greater than .5% of the revenue the
state received from the income taxes imposed under this title for the preceding fiscal
year.
(c)
"Specified entities" means the commission, the Office of the Legislative Fiscal
Analyst, and the Governor's Office of Planning and Budget.
(2)
The specified entities shall annually determine by consensus whether federal tax law
changes will likely result in a material increase in state income tax revenue for:
(a)
the next fiscal year; and
(b)
the first taxable year in which the federal tax law change takes effect.
(3)
In determining whether federal tax law changes will likely result in a material increase
in state income tax revenue under Subsection
(2)
, the specified entities may consider:
(a)
federal tax law changes enacted in any taxable year;
(b)
legislative action to increase or offset increases in state income tax revenue; and
(c)
any other factors the specified entities determine to be relevant.
(4)
(a)
The commission shall submit to the Revenue and Taxation Interim Committee an
electronic report
on or before October 1 of each
in any
year in which the specified
entities
, by consensus,
predict a material increase in state income tax revenue
by
consensus
for the next fiscal year
under Subsection
(2)
.
(b)
The report described in Subsection
(4)(a)
shall include:
(i)
a description of each federal tax law change expected to result in a material
increase in state income tax revenue for the next fiscal year; and
(ii)
an estimate of the amount of the material increase in state income tax revenue that
the state is expected to receive for the next fiscal year as a result of the federal tax
law changes described under Subsection
(4)(b)(i)
, based on consensus between the
specified entities.
(c)
The commission shall submit the report described in Subsection
(4)(a)
:
(i)
on or before October 1 of the year in which the consensus prediction under
Subsection
(2)
is made; and
(ii)
as part of the annual report required under Section
59-1-213
for the same year.
(5)
Upon receiving the report described in Subsection
(4)(a)
, the Revenue and Taxation
Interim Committee shall:
(a)
review the information provided in the report; and
(b)
if the Revenue and Taxation Interim Committee decides to recommend legislative
action to the Legislature in order to negate the material increase in state income tax
revenue predicted for the next fiscal year, prepare legislation for consideration in the
next annual general session.
(6)
(a)
If the commission submits a report under Subsection
(4)
, the specified entities
shall, following the Legislature's next annual general session, determine by consensus
whether legislative action taken during the annual general session negates the
specified entities' initial prediction of a material increase in state income tax revenue
for the next fiscal year.
(b)
(i)
If the specified entities determine by consensus under Subsection
(6)(a)
that
legislative action taken during the annual general session does not negate the
specified entities' initial prediction of a material increase in state income tax
revenue for the next fiscal year, the commission shall submit to the Division of
Finance an electronic report on or before the June 1 following the annual general
session.
(ii)
The report described in this Subsection
(6)(b)
shall include the information
required by Subsection
(4)(b)(ii)
.
Section 4. Section
59-1-401
is amended to read:
59-1-401
Effective
05/06/26
Applies beginning
01/01/26
. Definitions --
Offenses and penalties -- Rulemaking authority -- Statute of limitations -- Commission
authority to waive, reduce, or compromise penalty or interest.
(1)
As used in this section:
(a)
"Tax, fee, or charge" means:
(i)
a tax, fee, or charge the commission administers under:
(A)
this title;
(B)
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C)
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D)
Section
19-6-410.5
;
(E)
Section
19-6-714
;
(F)
Section
19-6-805
;
(G)
Section
34A-2-202
;
(H)
Section
40-6-14
;
(I)
Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
Charges; or
(J)
Title 79, Chapter 6, Part 11,
Energy Project Assessment
Utah Energy Council
;
or
(ii)
another amount that by statute is subject to a penalty imposed under this section.
(b)
"Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(i)
Title 41, Chapter 1a, Motor Vehicle Act, except for Section
41-1a-301
;
(ii)
Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(iii)
Chapter 2, Property Tax Act, except for Section
59-2-1309
;
(iv)
Chapter 3, Tax Equivalent Property Act; or
(v)
Chapter 4, Privilege Tax.
(2)
(a)
The due date for filing a return is:
(i)
if the person filing the return is not allowed by law an extension of time for filing
the return, the day on which the return is due as provided by law; or
(ii)
if the person filing the return is allowed by law an extension of time for filing the
return, the earlier of:
(A)
the date the person files the return; or
(B)
the last day of that extension of time as allowed by law.
(b)
A penalty in the amount described in Subsection
(2)(c)
is imposed if a person files a
return after the due date described in Subsection
(2)(a)
.
(c)
For purposes of Subsection
(2)(b)
, the penalty is an amount equal to the greater of:
(i)
$20; or
(ii)
(A)
2% of the unpaid tax, fee, or charge due on the return if the return is filed
no later than five days after the due date described in Subsection
(2)(a)
;
(B)
5% of the unpaid tax, fee, or charge due on the return if the return is filed
more than five days after the due date but no later than 15 days after the due
date described in Subsection
(2)(a)
; or
(C)
10% of the unpaid tax, fee, or charge due on the return if the return is filed
more than 15 days after the due date described in Subsection
(2)(a)
.
(d)
This Subsection
(2)
does not apply to:
(i)
an amended return; or
(ii)
a return with no tax due.
(3)
(a)
Except as provided in Subsection
(15)
, a person is subject to a penalty for failure
to pay a tax, fee, or charge if:
(i)
the person files a return on or before the due date for filing a return described in
Subsection
(2)(a)
, but fails to pay the tax, fee, or charge due on the return on or
before that due date;
(ii)
the person:
(A)
is subject to a penalty under Subsection
(2)(b)
; and
(B)
fails to pay the tax, fee, or charge due on a return within a 90-day period after
the due date for filing a return described in Subsection
(2)(a)
;
(iii)
(A)
the person is subject to a penalty under Subsection
(2)(b)
; and
(B)
the commission estimates an amount of tax due for that person in accordance
with Subsection
59-1-1406(2)
;
(iv)
the person:
(A)
is mailed a notice of deficiency; and
(B)
within a 30-day period after the day on which the notice of deficiency
described in Subsection
(3)(a)(iv)(A)
is mailed:
(I)
does not file a petition for redetermination or a request for agency action;
and
(II)
fails to pay the tax, fee, or charge due on a return;
(v)
(A)
the commission:
(I)
issues an order constituting final agency action resulting from a timely filed
petition for redetermination or a timely filed request for agency action; or
(II)
is considered to have denied a request for reconsideration under Subsection
63G-4-302(3)(b)
resulting from a timely filed petition for redetermination
or a timely filed request for agency action; and
(B)
the person fails to pay the tax, fee, or charge due on a return within a 30-day
period after the date the commission:
(I)
issues the order constituting final agency action described in Subsection
(3)(a)(v)(A)(I)
; or
(II)
is considered to have denied the request for reconsideration described in
Subsection
(3)(a)(v)(A)(II)
; or
(vi)
the person fails to pay the tax, fee, or charge within a 30-day period after the date
of a final judicial decision resulting from a timely filed petition for judicial review.
(b)
For purposes of Subsection
(3)(a)
, the penalty is an amount equal to the greater of:
(i)
$20; or
(ii)
(A)
2% of the unpaid tax, fee, or charge due on the return if the activated tax,
fee, or charge due on the return is paid no later than five days after the due date
for filing a return described in Subsection
(2)(a)
;
(B)
5% of the unpaid tax, fee, or charge due on the return if the activated tax, fee,
or charge due on the return is paid more than five days after the due date for
filing a return described in Subsection
(2)(a)
but no later than 15 days after that
due date; or
(C)
10% of the unpaid tax, fee, or charge due on the return if the activated tax, fee,
or charge due on the return is paid more than 15 days after the due date for
filing a return described in Subsection
(2)(a)
.
(4)
(a)
In the case of any underpayment of estimated tax or quarterly installments
required by Sections
59-5-107
,
59-5-207
,
59-7-504
, and
59-9-104
, there shall be
added a penalty in an amount determined by applying the interest rate provided under
Section
59-1-402
plus four percentage points to the amount of the underpayment for
the period of the underpayment.
(b)
(i)
For purposes of Subsection
(4)(a)
, the amount of the underpayment shall be the
excess of the required installment over the amount, if any, of the installment paid
on or before the due date for the installment.
(ii)
The period of the underpayment shall run from the due date for the installment to
whichever of the following dates is the earlier:
(A)
the original due date of the tax return, without extensions, for the taxable year;
or
(B)
with respect to any portion of the underpayment, the date on which that
portion is paid.
(iii)
For purposes of this Subsection
(4)
, a payment of estimated tax shall be credited
against unpaid required installments in the order in which the installments are
required to be paid.
(5)
(a)
Notwithstanding Subsection
(2)
and except as provided in Subsection
(6)
, a
person allowed by law an extension of time for filing a corporate franchise or income
tax return under Chapter 7, Corporate Franchise and Income Taxes, or an individual
income tax return under Chapter 10, Individual Income Tax Act, is subject to a
penalty in the amount described in Subsection
(5)(b)
if, on or before the day on
which the return is due as provided by law, not including the extension of time, the
person fails to pay:
(i)
for a person filing a corporate franchise or income tax return under Chapter 7,
Corporate Franchise and Income Taxes, the payment required by Subsection
59-7-507(1)(b)
; or
(ii)
for a person filing an individual income tax return under Chapter 10, Individual
Income Tax Act, the payment required by Subsection
59-10-516(2)
.
(b)
For purposes of Subsection
(5)(a)
, the penalty per month during the period of the
extension of time for filing the return is an amount equal to 2% of the tax due on the
return, unpaid as of the day on which the return is due as provided by law.
(6)
If a person does not file a return within an extension of time allowed by Section
59-7-505
or
59-10-516
, the person:
(a)
is not subject to a penalty in the amount described in Subsection
(5)(b)
; and
(b)
is subject to a penalty in an amount equal to the sum of:
(i)
a late file penalty in an amount equal to the greater of:
(A)
$20; or
(B)
10% of the tax due on the return, unpaid as of the day on which the return is
due as provided by law, not including the extension of time; and
(ii)
a late pay penalty in an amount equal to the greater of:
(A)
$20; or
(B)
10% of the unpaid tax due on the return, unpaid as of the day on which the
return is due as provided by law, not including the extension of time.
(7)
(a)
Additional penalties for an underpayment of a tax, fee, or charge are as provided
in this Subsection
(7)(a)
.
(i)
Except as provided in Subsection
(7)(c)
, if any portion of an underpayment of a
tax, fee, or charge is due to negligence, the penalty is 10% of the portion of the
underpayment that is due to negligence.
(ii)
Except as provided in Subsection
(7)(d)
, if any portion of an underpayment of a
tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15%
of the entire underpayment.
(iii)
If any portion of an underpayment is due to an intent to evade a tax, fee, or
charge, the penalty is the greater of $500 per period or 50% of the entire
underpayment.
(iv)
If any portion of an underpayment is due to fraud with intent to evade a tax, fee,
or charge, the penalty is the greater of $500 per period or 100% of the entire
underpayment.
(b)
If the commission determines that a person is liable for a penalty imposed under
Subsection
(7)(a)(ii)
, (iii), or (iv), the commission shall notify the person of the
proposed penalty.
(i)
The notice of proposed penalty shall:
(A)
set forth the basis of the assessment; and
(B)
be mailed by certified mail, postage prepaid, to the person's last-known
address.
(ii)
Upon receipt of the notice of proposed penalty, the person against whom the
penalty is proposed may:
(A)
pay the amount of the proposed penalty at the place and time stated in the
notice; or
(B)
proceed in accordance with the review procedures of Subsection
(7)(b)(iii)
.
(iii)
A person against whom a penalty is proposed in accordance with this Subsection
(7)
may contest the proposed penalty by filing a petition for an adjudicative
proceeding with the commission.
(iv)
(A)
If the commission determines that a person is liable for a penalty under
this Subsection
(7)
, the commission shall assess the penalty and give notice and
demand for payment.
(B)
The commission shall mail the notice and demand for payment described in
Subsection
(7)(b)(iv)(A)
:
(I)
to the person's last-known address; and
(II)
in accordance with Section
59-1-1404
.
(c)
A seller that voluntarily collects a tax under Subsection
59-12-107(2)(d)
is not
subject to the penalty under Subsection
(7)(a)(i)
if on or after July 1, 2001:
(i)
a court of competent jurisdiction issues a final unappealable judgment or order
determining that:
(A)
the seller meets one or more of the criteria described in Subsection
59-12-107(2)(a)
or is a seller required to pay or collect and remit sales and use
taxes under Subsection
59-12-107(2)(b)
or
(2)(c)
; and
(B)
the commission or a county, city, or town may require the seller to collect a
tax under Subsections
59-12-103(2)(a)
through
(e)
; or
(ii)
the commission issues a final unappealable administrative order determining that:
(A)
the seller meets one or more of the criteria described in Subsection
59-12-107(2)(a)
or is a seller required to pay or collect and remit sales and use
taxes under Subsection
59-12-107(2)(b)
or
(2)(c)
; and
(B)
the commission or a county, city, or town may require the seller to collect a
tax under Subsections
59-12-103(2)(a)
through
(e)
.
(d)
A seller that voluntarily collects a tax under Subsection
59-12-107(2)(d)
is not
subject to the penalty under Subsection
(7)(a)(ii)
if:
(i)
(A)
a court of competent jurisdiction issues a final unappealable judgment or
order determining that:
(I)
the seller meets one or more of the criteria described in Subsection
59-12-107(2)(a)
or is a seller required to pay or collect and remit sales and
use taxes under Subsection
59-12-107(2)(b)
or
(2)(c)
; and
(II)
the commission or a county, city, or town may require the seller to collect a
tax under Subsections
59-12-103(2)(a)
through
(e)
; or
(B)
the commission issues a final unappealable administrative order determining
that:
(I)
the seller meets one or more of the criteria described in Subsection
59-12-107(2)(a)
or is a seller required to pay or collect and remit sales and
use taxes under Subsection
59-12-107(2)(b)
or
(2)(c)
; and
(II)
the commission or a county, city, or town may require the seller to collect a
tax under Subsections
59-12-103(2)(a)
through
(e)
; and
(ii)
the seller's intentional disregard of law or rule is warranted by existing law or by
a nonfrivolous argument for the extension, modification, or reversal of existing
law or the establishment of new law.
(8)
(a)
Subject to Subsections
(8)(b)
and
(c)
, the penalty for failure to file an information
return, information report, or a complete supporting schedule is $50 for each
information return, information report, or supporting schedule up to a maximum of
$1,000.
(b)
If an employer is subject to a penalty under Subsection
(13)
, the employer may not
be subject to a penalty under Subsection
(8)(a)
.
(c)
If an employer is subject to a penalty under this Subsection
(8)
for failure to file a
return in accordance with Subsection
59-10-406(3)
on or before the due date
described in Subsection
59-10-406(3)(b)(ii)
, the commission may not impose a
penalty under this Subsection
(8)
unless the return is filed more than 14 days after the
due date described in Subsection
59-10-406(3)(b)(ii)
.
(9)
If a person, in furtherance of a frivolous position, has a prima facie intent to delay or
impede administration of a law relating to a tax, fee, or charge and files a purported
return that fails to contain information from which the correctness of reported tax, fee, or
charge liability can be determined or that clearly indicates that the tax, fee, or charge
liability shown is substantially incorrect, the penalty is $500.
(10)
(a)
A seller that fails to remit a tax, fee, or charge monthly as required by Subsection
59-12-108(1)(a)
:
(i)
is subject to a penalty described in Subsection
(2)
; and
(ii)
may not retain the percentage of sales and use taxes that would otherwise be
allowable under Subsection
59-12-108(2)
.
(b)
A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
required by Subsection
59-12-108(1)(a)(ii)(B)
:
(i)
is subject to a penalty described in Subsection
(2)
; and
(ii)
may not retain the percentage of sales and use taxes that would otherwise be
allowable under Subsection
59-12-108(2)
.
(11)
(a)
A person is subject to the penalty provided in Subsection
(11)(c)
if that person:
(i)
commits an act described in Subsection
(11)(b)
with respect to one or more of the
following documents:
(A)
a return;
(B)
an affidavit;
(C)
a claim; or
(D)
a document similar to Subsections
(11)(a)(i)(A)
through
(C)
;
(ii)
knows or has reason to believe that the document described in Subsection
(11)(a)(i)
will be used in connection with any material matter administered by the
commission; and
(iii)
knows that the document described in Subsection
(11)(a)(i)
, if used in connection
with any material matter administered by the commission, would result in an
understatement of another person's liability for a tax, fee, or charge.
(b)
The following acts apply to Subsection
(11)(a)(i)
:
(i)
preparing any portion of a document described in Subsection
(11)(a)(i)
;
(ii)
presenting any portion of a document described in Subsection
(11)(a)(i)
;
(iii)
procuring any portion of a document described in Subsection
(11)(a)(i)
;
(iv)
advising in the preparation or presentation of any portion of a document
described in Subsection
(11)(a)(i)
;
(v)
aiding in the preparation or presentation of any portion of a document described
in Subsection
(11)(a)(i)
;
(vi)
assisting in the preparation or presentation of any portion of a document
described in Subsection
(11)(a)(i)
; or
(vii)
counseling in the preparation or presentation of any portion of a document
described in Subsection
(11)(a)(i)
.
(c)
For purposes of Subsection
(11)(a)
, the penalty:
(i)
shall be imposed by the commission;
(ii)
is $500 for each document described in Subsection
(11)(a)(i)
with respect to
which the person described in Subsection
(11)(a)
meets the requirements of
Subsection
(11)(a)
; and
(iii)
is in addition to any other penalty provided by law.
(d)
The commission may seek a court order to enjoin a person from engaging in conduct
that is subject to a penalty under this Subsection
(11)
.
(e)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules prescribing the documents that are similar to
Subsections
(11)(a)(i)(A)
through
(C)
.
(12)
(a)
Criminal offenses and penalties are provided in Subsections
(12)(b)
through
(e)
.
(b)
(i)
A person who is required by this title or any laws the commission administers
or regulates to register with or obtain a license or permit from the commission,
who operates without having registered or secured a license or permit, or who
operates when the registration, license, or permit is expired or not current, is guilty
of a class B misdemeanor.
(ii)
Notwithstanding Section
76-3-301
, for purposes of Subsection
(12)(b)(i)
, the
penalty may not:
(A)
be less than $500; or
(B)
exceed $1,000.
(c)
(i)
With respect to a tax, fee, or charge, a person who knowingly and intentionally,
and without a reasonable good faith basis, fails to make, render, sign, or verify a
return within the time required by law or to supply information within the time
required by law, or who makes, renders, signs, or verifies a false or fraudulent
return or statement, or who supplies false or fraudulent information, is guilty of a
third degree felony.
(ii)
Notwithstanding Section
76-3-301
, for purposes of Subsection
(12)(c)(i)
, the
penalty may not:
(A)
be less than $1,000; or
(B)
exceed $5,000.
(d)
(i)
A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
charge or the payment of a tax, fee, or charge is, in addition to other penalties
provided by law, guilty of a second degree felony.
(ii)
Notwithstanding Section
76-3-301
, for purposes of Subsection
(12)(d)(i)
, the
penalty may not:
(A)
be less than $1,500; or
(B)
exceed $25,000.
(e)
(i)
A person is guilty of a second degree felony if that person commits an act:
(A)
described in Subsection
(12)(e)(ii)
with respect to one or more of the
following documents:
(I)
a return;
(II)
an affidavit;
(III)
a claim; or
(IV)
a document similar to Subsections
(12)(e)(i)(A)(I)
through
(III)
; and
(B)
subject to Subsection
(12)(e)(iii)
, with knowledge that the document described
in Subsection
(12)(e)(i)(A)
:
(I)
is false or fraudulent as to any material matter; and
(II)
could be used in connection with any material matter administered by the
commission.
(ii)
The following acts apply to Subsection
(12)(e)(i)
:
(A)
preparing any portion of a document described in Subsection
(12)(e)(i)(A)
;
(B)
presenting any portion of a document described in Subsection
(12)(e)(i)(A)
;
(C)
procuring any portion of a document described in Subsection
(12)(e)(i)(A)
;
(D)
advising in the preparation or presentation of any portion of a document
described in Subsection
(12)(e)(i)(A)
;
(E)
aiding in the preparation or presentation of any portion of a document
described in Subsection
(12)(e)(i)(A)
;
(F)
assisting in the preparation or presentation of any portion of a document
described in Subsection
(12)(e)(i)(A)
; or
(G)
counseling in the preparation or presentation of any portion of a document
described in Subsection
(12)(e)(i)(A)
.
(iii)
This Subsection
(12)(e)
applies:
(A)
regardless of whether the person for which the document described in
Subsection
(12)(e)(i)(A)
is prepared or presented:
(I)
knew of the falsity of the document described in Subsection
(12)(e)(i)(A)
; or
(II)
consented to the falsity of the document described in Subsection
(12)(e)(i)(A)
; and
(B)
in addition to any other penalty provided by law.
(iv)
Notwithstanding Section
76-3-301
, for purposes of this Subsection
(12)(e)
, the
penalty may not:
(A)
be less than $1,500; or
(B)
exceed $25,000.
(v)
The commission may seek a court order to enjoin a person from engaging in
conduct that is subject to a penalty under this Subsection
(12)(e)
.
(vi)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules prescribing the documents that are similar to
Subsections
(12)(e)(i)(A)(I)
through
(III)
.
(f)
The statute of limitations for prosecution for a violation of this Subsection
(12)
is the
later of six years:
(i)
from the date the tax should have been remitted; or
(ii)
after the day on which the person commits the criminal offense.
(13)
(a)
Subject to Subsection (13)(b), an
An
employer that is required to file a form
with the commission in accordance with Subsection
59-10-406(8)
or
(9)
is subject to
a penalty described in Subsection
(13)(b)
if the employer:
(i)
fails to file the form with the commission in an electronic format approved by the
commission as required by Subsection
59-10-406(8)
or
(9)
;
(ii)
fails to file the form on or before the due date provided in Subsection
59-10-406(8)
or
(9)
;
(iii)
fails to provide accurate information on the form; or
(iv)
fails to provide all of the information required by the Internal Revenue Service to
be contained on the form.
(b)
For purposes of Subsection
(13)(a)
, the penalty is:
(i)
$30 per form, not to exceed $75,000 in a calendar year, if the employer files the
form in accordance with Subsection
59-10-406(8)
or
(9)
, more than 14 days
after
the due date provided in Subsection 59-10-406(8) or (9)
,
but no later than
30
60

days
,
after the due date provided in Subsection
59-10-406(8)
or
(9)
;
(ii)
$60 per form, not to exceed $200,000 in a calendar year, if the employer files the
form in accordance with Subsection
59-10-406(8)
or
(9)
, more than
30
60
days
after the due date provided in Subsection
59-10-406(8)
or
(9)
but on or before
June 1; or
(iii)
$100 per form, not to exceed $500,000 in a calendar year, if the employer:
(A)
files the form in accordance with Subsection
59-10-406(8)
or
(9)
after June 1;
or
(B)
fails to file the form.
(c)
A producer that is required to file a form with the commission in accordance with
Subsection
59-6-103(3)
is subject to a penalty described in Subsection
(13)(d)
if the
producer:
(i)
fails to file the form with the commission in the format approved by the
commission as required by Subsection
59-6-103(3)
;
(ii)
fails to file the form on or before the due date provided in Subsection
59-6-103(3)
;
(iii)
fails to provide accurate information on the form; or
(iv)
fails to provide all of the information required by the Internal Revenue Service to
be contained on the form.
(d)
For purposes of Subsection
(13)(c)
, the penalty is:
(i)
$30 per form, not to exceed $75,000 in a calendar year, if the producer files the
form in accordance with Subsection
59-6-103(3)
, more than 14 days, but no later
than 60 days, after the due date provided in Subsection
59-6-103(3)
;
(ii)
$60 per form, not to exceed $200,000 in a calendar year, if the producer files the
form in accordance with Subsection
59-6-103(3)
, more than 60 days after the due
date provided in Subsection
59-6-103(3)
but on or before June 1; or
(iii)
$100 per form, not to exceed $500,000 in a calendar year, if the producer:
(A)
files the form in accordance with Subsection
59-6-103(3)
after June 1; or
(B)
fails to file the form.
(14)
Upon making a record of the commission's actions, and upon reasonable cause shown,
the commission may waive, reduce, or compromise any of the penalties or interest
imposed under this part.
(15)
Failure to pay a tax described in Subsection
59-10-1403.2(2)
shall be subject to a
penalty as described in Subsection
(3)
except that the penalty shall be:
(a)
assessed only if the pass-through entity reports tax paid on a Utah Schedule K-1 but
does not pay some or all of the tax reported; and
(b)
calculated based on the difference between the amount of tax reported and the
amount of tax paid.
Section 5. Section
59-1-1410
is amended to read:
59-1-1410
Effective
05/06/26
. Action for collection of tax, fee, or charge --
Action for refund or credit of liability -- Denial of refund claim under appeal -- Appeal of
denied refund claim.
(1)
(a)
Except as provided in Subsections
(3)
through
(7)
and Sections
59-5-114
,
59-7-519
,
and
59-10-536
,
and
59-11-113
,
the commission shall assess a tax, fee, or charge
within three years after the day on which a person files a return.
(b)
Except as provided in Subsections
(3)
through
(7)
, if the commission does not assess
a tax, fee, or charge within the three-year period provided in Subsection
(1)(a)
, the
commission may not commence a proceeding to collect the tax, fee, or charge.
(2)
(a)
Except as provided in Subsection
(2)(b)
, for purposes of this part, a return filed
before the last day prescribed by statute or rule for filing the return is considered to
be filed on the last day for filing the return.
(b)
A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is
considered to be filed on April 15 of the succeeding calendar year if the return:
(i)
is for a period ending with or within a calendar year; and
(ii)
is filed before April 15 of the succeeding calendar year.
(3)
The commission may assess a tax, fee, or charge or commence a proceeding for the
collection of a tax, fee, or charge at any time if:
(a)
a person:
(i)
files a:
(A)
false return with intent to evade; or
(B)
fraudulent return with intent to evade; or
(ii)
fails to file a return; or
(b)
the commission estimates the amount of tax, fee, or charge due in accordance with
Subsection
59-1-1406(2)
.
(4)
The commission may extend the period to assess a tax, fee, or charge or to commence a
proceeding to collect a tax, fee, or charge if:
(a)
the three-year period under Subsection
(1)
has not expired; and
(b)
the commission and the person sign a written agreement:
(i)
authorizing the extension; and
(ii)
providing for the length of the extension.
(5)
The commission may make an assessment as provided in Subsection
(6)
if:
(a)
the commission delays an audit at the request of a person;
(b)
the person subsequently refuses to agree to an extension request by the commission;
and
(c)
the three-year period under Subsection
(1)
expires before the commission completes
the audit.
(6)
An assessment under Subsection
(5)
shall be:
(a)
for the time period for which the commission could not make the assessment because
of the expiration of the three-year period; and
(b)
in an amount equal to the difference between:
(i)
the commission's estimate of the amount of tax, fee, or charge the person would
have been assessed for the time period described in Subsection
(6)(a)
; and
(ii)
the amount of tax, fee, or charge the person actually paid for the time period
described in Subsection
(6)(a)
.
(7)
If a person erroneously pays a liability, overpays a liability, pays a liability more than
once, or the commission erroneously receives, collects, or computes a liability, the
commission shall:
(a)
credit the liability against any amount of liability the person owes; and
(b)
refund any balance to:
(i)
the person; or
(ii)
(A)
the person's assign;
(B)
the person's personal representative;
(C)
the person's successor; or
(D)
a person similar to Subsections
(7)(b)(ii)(A)
through
(C)
as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
(8)
(a)
Except as provided in Subsection
(8)(b)
or Section
19-12-203
,
59-7-522
,
59-10-529
, or
59-12-110
, the commission may not make a credit or refund unless a
person files a claim with the commission within the later of:
(i)
three years from the due date of the return, including the period of any extension
of time provided in statute for filing the return; or
(ii)
two years from the date the tax was paid.
(b)
The commission shall extend the time period for a person to file a claim under
Subsection
(8)(a)
if:
(i)
the time period described in Subsection
(8)(a)
has not expired; and
(ii)
the commission and the person sign a written agreement:
(A)
authorizing the extension; and
(B)
providing for the length of the extension.
(9)
If the commission denies a claim for a credit or refund, a person may request a
redetermination of the denial by filing a petition or request for agency action with the
commission:
(a)
(i)
within a 30-day period after the day on which the commission mails a notice of
denial for the claim for credit or refund; or
(ii)
within a 90-day period after the day on which the commission mails a notice of
denial for the claim for credit or refund, if the notice is addressed to a person
outside the United States or the District of Columbia; and
(b)
in accordance with:
(i)
Section
59-1-501
; and
(ii)
Title 63G, Chapter 4, Administrative Procedures Act.
(10)
The action of the commission on a person's petition for redetermination of a denial of a
claim for credit or refund is final 30 days after the day on which the commission sends
the commission's decision or order, unless the person seeks judicial review.
Section 6. Section
59-1-1413
is amended to read:
59-1-1413
Effective
05/06/26
. Lien for a liability.
(1)
In addition to Section
40-6-14
,
59-5-108
,
59-5-208
,
59-11-110
,
59-12-112
,
59-13-302
,
or
59-13-311
, if a person that owes a liability fails to pay that liability after the
commission mails notice and demand under Section
59-1-1411
, the amount of liability,
plus any administrative cost, is a lien in favor of the state upon all property and rights to
property, whether real or personal, belonging to that person.
(2)
Unless another date is specifically established by law, the lien imposed by this section:
(a)
arises at the time the commission makes the assessment of the tax, fee, or charge that
is part of the liability; and
(b)
continues until the liability and administrative costs described in Subsection
(1)
, or a
judgment against the person arising from that liability and administrative costs:
(i)
is satisfied; or
(ii)
is unenforceable because the time period described in Subsection
59-1-1414(8)

has elapsed.
Section 7. Section
59-2-301.1
is amended to read:
59-2-301.1
Effective
05/06/26
. Assessment of property subject to a conservation
easement -- Assessment of golf course or hunting club -- Assessment of common areas.
(1)
As used in this section:
(a)
"Association" means the same as that term is defined in Section
57-8a-102
.
(b)
"Common area" means:
(i)
for a condominium project subject to Title 57, Chapter 8, Condominium
Ownership Act, the following property, unless otherwise provided in the
declaration or lawful amendments to the declaration:
(A)
the land included within the condominium project, whether leasehold or in fee
simple;
(B)
the foundations, columns, girders, beams, supports, main walls, roofs, halls,
corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of the
building;
(C)
the basements, yards, gardens, parking areas, and storage spaces;
(D)
the premises for lodging of janitors or persons in charge of the property;
(E)
installations of central services such as power, light, gas, hot and cold water,
heating, refrigeration, air conditioning, and incinerating;
(F)
the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general
all apparatus and installations existing for common use;
(G)
community and commercial facilities as may be provided for in the
declaration; and
(H)
all other parts of the property necessary or convenient to the property's
existence, maintenance, and safety or normally in common use; and
(ii)
for an association subject to Title 57, Chapter 8a, Community Association Act,
property that the association:
(A)
owns;
(B)
maintains;
(C)
repairs; or
(D)
administers.
(c)
"Condominium project" means the same as that term is defined in Section
57-8-3
.
(d)
"Declaration" means the same as that term is defined in Section
57-8-3
.
(1)
(2)
In assessing the fair market value of property subject to a conservation easement
under Title 57, Chapter 18, Land Conservation Easement Act, a county assessor shall
consider factors relating to the property and neighboring property that affect the fair
market value of the property being assessed, including:
(a)
value that transfers to neighboring property because of the presence of a conservation
easement on the property being assessed;
(b)
practical and legal restrictions on the development potential of the property because
of the presence of the conservation easement;
(c)
the absence of neighboring property similarly subject to a conservation easement to
provide a basis for comparing values between properties; and
(d)
any other factor that causes the fair market value of the property to be affected
because of the presence of a conservation easement.
(2)
(3)
(a)
In assessing the fair market value of a golf course or hunting club, a county
assessor shall consider factors relating to the golf course or hunting club and
neighboring property that affect the fair market value of the golf course or hunting
club, including:
(i)
value that transfers to neighboring property because of the presence of the golf
course or hunting club;
(ii)
practical and legal restrictions on the development potential of the golf course or
hunting club; and
(iii)
the history of operation of the golf course or hunting club and the likelihood that
the present use will continue into the future.
(b)
The valuation method a county assessor may use in determining the fair market value
of a golf course or hunting club includes:
(i)
the cost approach;
(ii)
the income capitalization approach; and
(iii)
the sales comparison approach.
(4)
(a)
When a plat contains a common area:
(i)
for purposes of assessment, each parcel that the plat creates has an equal
ownership interest in the common area within the plat, unless the plat or an
accompanying recorded document indicates a different division of interest for
assessment purposes; and
(ii)
each instrument describing a parcel on the plat by the parcel's identifying plat
number implicitly includes the ownership interest in the common area, even if that
ownership interest is not explicitly stated in the instrument.
(3)
(b)
Except as otherwise provided by the plat or accompanying recorded document, a
county assessor shall assess a common area
and facility as defined in Section
57-8-3

or a common area as defined in Section
57-8a-102

consistent with the equal
ownership interests described in Subsection
10-20-809(4)
or
17-79-709(4)
(4)(a)

and may not assess the common area
and facility or common area
in a manner that
reflects a different division of interest.
(4)
(c)
In assessing the fair market value of property that is a common area
or facility
under Title 57, Chapter 8, Condominium Ownership Act, or a common area under
Title 57, Chapter 8a, Community Association Act
, a county assessor shall consider
factors relating to the property and neighboring property that affect the fair market
value of the property being assessed, including:
(a)
(i)
value that transfers to neighboring property because the property is a common
area
or facility
;
(b)
(ii)
practical and legal restrictions on the development potential of the property
because the property is a common area
or facility
;
(c)
(iii)
the absence of neighboring property similarly situated as a common area
or
facility
to provide a basis for comparing values between properties; and
(d)
(iv)
any other factor that causes the fair market value of the property to be
affected because the property is a common area
or facility
.
Section 8. Section
59-2-303.3
is amended to read:
59-2-303.3
Effective
05/06/26
Applies beginning
01/01/26
. Automatic review
for property with qualifying increase -- Reporting requirements.
(1)
As used in this section
,
:

(a)
"qualifying
"Qualifying
increase" means a valuation increase that is
equal to or
more than 150% higher than the previous year's valuation for residential property, or

equal to or more than
150%
350%
higher than the previous year's valuation for
any
other
property
that is not residential property,
that:
(a)
(i)
is county assessed; and
(b)
(ii)
on or after January 1 of the previous year and before January 1 of the current
year, has not had:
(i)
(A)
a physical improvement if the fair market value of the physical
improvement increases enough to result in the valuation increase solely as a
result of the physical improvement;
(ii)
(B)
a zoning change if the fair market value of the real property increases
enough to result in the valuation increase solely as a result of the zoning
change; or
(iii)
(C)
a change in the legal description of the real property, if the fair market
value of the real property increases enough to result in the valuation increase
solely as a result of the change in the legal description of the real property.
(b)
"Specified property" means a property:
(i)
that requires a review in accordance with Subsection
(2)
; and
(ii)
for which the qualifying increase is equal to or more than $250,000.
(2)
(a)
For the calendar year beginning on January 1, 2023, the county assessor shall
review the assessment of the property with a qualifying increase on or before May
31, 2024.
(b)
(a)
For a calendar year beginning on or after January 1, 2024, the
The
county
assessor shall review the assessment of a property with a qualifying increase before
delivery of the assessment book to the county auditor in accordance with Section
59-2-311
.
(c)
(b)
The county assessor shall retain a record of the properties for which the county
assessor conducts a review in accordance with this Subsection
(2)
and the results of
that review.
(3)
(a)
When the county assessor conducts the review described in Subsection
(2)
:
(i)
if the county assessor determines that the assessed value of the property reflects
the property's fair market value, the county assessor may not adjust the property's
assessed value; or
(ii)
if the county assessor determines that the assessed value of the property does not
reflect the review property's fair market value, the county assessor shall adjust the
assessed value of the review property to reflect the fair market value.
(b)
If a county assessor makes an adjustment under Subsection (3)(a) for the calendar
year beginning on January 1, 2023, the county legislative body shall authorize a
refund of the property tax that is overpaid as a result of the adjustment.
(c)
(b)
If a county assessor makes an adjustment under Subsection
(3)(a)
for the
calendar year beginning on January 1, 2024
, the county assessor shall list the
adjusted value set in accordance with this section as the original assessed value on
the valuation notice sent in accordance with Section
59-2-919.1
.
(4)
(a)
Upon completing the review described in Subsection
(2)
, the county assessor shall
report to the commission:
(i)
the number of properties that:
(A)
required a review in accordance with Subsection
(2)
; and
(B)
the county reduced the value as a result of the review;
and
(ii)
the parcel number of any
specified
property
:
for which the county assessor did
not reduce the value as a result of the review; and
(A)
that required a review in accordance with Subsection (2);
(B)
that has an increase in value of $50,000 or more; and
(C)
for which the county assessor did not reduce the value.
(iii)
for each specified property, the property type and the reasons for the qualifying
increase.
(b)
(i)
A county that has any
specified
property
subject to a review in accordance
with this section
for two consecutive years shall report to the Revenue and
Taxation Interim Committee:
(A)
at the same meeting or a meeting after the meeting during which the
commission makes the report described in Section
59-2-1008
;
(B)
in the same year as the commission report; and
(C)
on the number of
specified
properties
with a qualifying increase and the
reasons for the qualifying increases.
in the county during the consecutive
two-year period for which the report under this Subsection
(4)(b)
is required.
(ii)
The requirement to report
under this Subsection
(4)(b)

applies if the county has a
specified
property
that is subject to review under this section
in each of two
consecutive years regardless of whether the
specified
property
that is subject to
review
is the same property for each year.
(iii)
The requirement to report does not apply if the qualifying increase is less than
$50,000.
(5)
The review process described in this section does not supersede or otherwise affect a
taxpayer's right to appeal or to seek judicial review of the valuation or equalization of a
review property in accordance with:
(a)
Part 10, Equalization;
(b)
Chapter 1, Part 6, Judicial Review; or
(c)
Title 63G, Chapter 4, Part 4, Judicial Review.
Section 9. Section
59-2a-101
is amended to read:
59-2a-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Active component of the United States Armed Forces" means the same as that term is
defined in Section
59-10-1027
.
(2)
"Active duty claimant" means a member of an active component of the United States
Armed Forces or a reserve component of the United States Armed Forces who:
(a)
performed qualifying active duty military service; and
(b)
applies for an exemption described in Part 6, Active Duty Armed Forces Exemption.
(3)
"Adjusted taxable value limit" means:
(a)
for the calendar year that begins on January 1, 2023, $479,504; or
(b)
for each calendar year after the calendar year that begins on January 1, 2023, the
amount of the adjusted taxable value limit for the previous year plus an amount
calculated by multiplying the amount of the adjusted taxable value limit for the
previous year by the actual percent change in the consumer price index during the
previous calendar year.
(4)
"Claim" means:
(a)
a claim for tax abatement described in Subsection
(21)(a)
or a credit under Part 2,
Renter's Credit, or Part 3, Homeowner's Credit;
(b)
an exemption under Part 5, Veteran Armed Forces Exemption, or Part 6, Active Duty
Armed Forces Exemption; or
(c)
an application for an abatement under Part 4, Abatement for Indigent Individuals, or
a deferral under Part 7, Discretionary Deferral, Part 8, Nondiscretionary Deferral for
Property with Qualifying Increase, or Part 9, Nondiscretionary Deferral for Elderly
Property Owners.
(5)
(a)
"Claimant" means a homeowner or renter who:
(i)
files a claim under Part 2, Renter's Credit, or Part 3, Homeowner's Credit, for a
residence;
(ii)
is domiciled in this state for the entire calendar year for which a claim for relief is
filed; and
(iii)
on or before December 31 of the year for which a claim for relief is filed, is:
(A)
66 years old or older if the individual was born on or before December 31,
1959; or
(B)
67 years old or older if the individual was born on or after January 1, 1960.
(b)
Notwithstanding Subsection
(5)(a)
, "claimant" includes a surviving spouse:
(i)
regardless of:
(A)
the age of the surviving spouse; or
(B)
the age of the deceased spouse at the time of death;
(ii)
if the surviving spouse meets:
(A)
the requirements described in Subsections
(5)(a)(i)
and (5)(a)(ii); and
(B)
the income requirements described in Part 2, Renter's Credit, if the surviving
spouse is filing a claim for a renter's credit, or Part 3, Homeowner's Credit, if
the surviving spouse is filing a claim for a homeowner's credit;
(iii)
if the surviving spouse is part of the same household of the deceased spouse at
the time of death of the deceased spouse; and
(iv)
if the surviving spouse is unmarried at the time the surviving spouse files the
claim.
(c)
If two or more individuals of a household are able to meet the qualifications for a
claimant, the individuals may determine among them as to who the claimant shall be,
but if the individuals are unable to agree, the matter shall be referred to the county
legislative body for a determination of the claimant of an owned residence and to the
commission for a determination of the claimant of a rented residence.
(6)
"Consumer price index" means:
(a)
for Part 2, Renter's Credit, and Part 3, Homeowner's Credit, the Consumer Price
Index - All Urban Consumers, Housing United States Cities Average, published by
the Bureau of Labor Statistics of the United States Department of Labor; and
(b)
for the other parts of this chapter, the same as that term is described in Section
1(f)(4), Internal Revenue Code, and defined in Section 1(f)(5), Internal Revenue
Code.
(7)
"Deceased veteran with a disability" means a deceased individual who was a veteran
with a disability at the time the individual died.
(8)
"Deferral" means a postponement of a tax due date or a tax notice charge granted in
accordance with Section
59-2a-701
,
59-2a-801
, or
59-2a-901
.
(9)
"Eligible owner" means an owner of an attached or a detached single-family residence:
(a)
(i)
who is 75 years old or older on or before December 31 of the year in which the
individual applies for a deferral under Part 9, Nondiscretionary Deferral for
Elderly Property Owners;
(ii)
whose household income does not exceed 200% of the maximum household
income certified to a homeowner's credit described in Section
59-2a-305
; and
(iii)
whose household liquid resources do not exceed 20 times the amount of property
taxes levied on the owner's residence for the preceding calendar year; or
(b)
that is a trust described in Section
59-2a-109
if the grantor of the trust is an
individual described in Subsection
(9)(a)
.
(10)
"Eligible property" means property owned by a veteran claimant that is:
(a)
the veteran claimant's primary residence, including a residence that the veteran
claimant does not reside in because the veteran claimant is admitted as an inpatient at
a health care facility as defined in Section
26B-4-501
; or
(b)
tangible personal property that:
(i)
is held exclusively for personal use; and
(ii)
is not used in a trade or business.
(11)
(a)
"Gross rent" means rent actually paid in cash or the cash equivalent solely for the
right of occupancy, at arm's length, of a residence, exclusive of charges for any
utilities, services, furniture, furnishings, or personal appliances furnished by the
landlord as a part of the rental agreement.
(b)
If a claimant occupies two or more residences in the year, "gross rent" means the
total rent paid for the residences during the one-year period for which the renter files
a claim under this part.
(12)
(a)
"Homeowner" means:
(i)
an individual whose name is listed on the deed of a residence; or
(ii)
if a residence is owned in a qualifying trust, an individual who is a grantor,
trustor, or settlor or holds another similar role in the trust.
(b)
"Homeowner" does not include:
(i)
if a residence is owned by any type of entity other than a qualifying trust, an
individual who holds an ownership interest in that entity; or
(ii)
an individual who is listed on a deed of a residence along with an entity other
than a qualifying trust.
(13)
"Homeowner's credit" means a credit against a claimant's property tax liability.
(14)
"Household" means the association of individuals who live in the same dwelling,
sharing the dwelling's furnishings, facilities, accommodations, and expenses.
(15)
(a)
"Household income" means all income received by all members of a claimant's
household in:
(i)
for a claimant who owns a residence, the calendar year preceding the calendar
year in which property taxes are due; or
(ii)
for a claimant who rents a residence, the year for which a claim is filed.
(b)
"Household income" does not include income received by a member of a claimant's
household who is:
(i)
under 18 years old; or
(ii)
a parent or a grandparent, through blood, marriage, or adoption, of the claimant or
the claimant's spouse.
(16)
"Household liquid resources" means the following resources that are not included in an
individual's household income and held by one or more members of the individual's
household:
(a)
cash on hand;
(b)
money in a checking or savings account;
(c)
savings certificates; and
(d)
stocks or bonds.
(17)
"Income" means the sum of:
(a)
federal adjusted gross income as defined in Section 62, Internal Revenue Code; and
(b)
nontaxable income.
(18)
"Indigent individual" means a poor individual as described in Utah Constitution,
Article XIII, Section 3, Subsection
(4)
, who:
(a)
(i)
is 65 years old or older; or
(ii)
is less than 65 years old and:
(A)
the county finds that
extreme hardship would prevail on the individual if the
county does not defer or abate the individual's taxes; or
(B)
the individual has a disability;
(b)
has a total household income of less than the maximum household income certified
to a homeowner's credit described in Section
59-2a-305
;
(c)
resides for at least 10 months of the year in the residence that would be subject to the
requested abatement; and
(d)
cannot pay the tax assessed on the individual's residence when the tax becomes due.
(19)
"Military entity" means:
(a)
the United States Department of Veterans Affairs;
(b)
an active component of the United States Armed Forces; or
(c)
a reserve component of the United States Armed Forces.
(20)
(a)
"Nontaxable income" means amounts excluded from adjusted gross income
under the Internal Revenue Code, including:
(i)
capital gains;
(ii)
loss carry forwards claimed during the taxable year in which a claimant files for
relief under this chapter;
(iii)
depreciation claimed pursuant to the Internal Revenue Code by a claimant on the
residence for which the claimant files for relief under this chapter;
(iv)
support money received;
(v)
nontaxable strike benefits;
(vi)
the gross amount of a pension or annuity, including benefits under the Railroad
Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability
pensions;
(vii)
except for payments described in Subsection
(20)(b)(vi)
, payments received
under the Social Security Act;
(viii)
state unemployment insurance amounts;
(ix)
nontaxable interest received from any source;
(x)
workers' compensation;
(xi)
the gross amount of "loss of time" insurance; and
(xii)
voluntary contributions to a tax-deferred retirement plan.
(b)
"Nontaxable income" does not include:
(i)
public assistance;
(ii)
aid, assistance, or contributions from a tax-exempt nongovernmental source;
(iii)
surplus foods;
(iv)
relief in kind supplied by a public or private agency;
(v)
relief provided under this chapter;
(vi)
Social Security Disability Income
social security disability income
payments
received under the Social Security Act;
(vii)
federal tax refunds;
(viii)
federal child tax credits received under 26 U.S.C. Sec. 24;
(ix)
federal earned income tax credits received under 26 U.S.C. Sec. 32;
(x)
payments received under a reverse mortgage;
(xi)
payments or reimbursements to senior program volunteers under 42 U.S.C. Sec.
5058; or
(xii)
gifts or bequests.
(21)
(a)
"Property taxes accrued" means property taxes, exclusive of special assessments,
delinquent interest, and charges for service, levied on 35% of the fair market value,
as reflected on the assessment roll, of a claimant's residence in this state.
(b)
For a mobile home, "property taxes accrued" includes taxes imposed on both the land
upon which the home is situated and on the structure of the home itself, whether
classified as real property or personal property taxes.
(c)
The relief described in Subsection
(21)(a)
constitutes:
(i)
a tax abatement for the poor in accordance with Utah Constitution, Article XIII,
Section 3; and
(ii)
the residential exemption provided for in Section
59-2-103
.
(d)
For purposes of this Subsection
(21)
, property taxes accrued are levied on the lien
date.
(e)
When a household owns and occupies two or more different residences in this state
in the same calendar year, and neither residence is acquired or sold during the
calendar year for which relief is claimed under this part, property taxes accrued shall
relate only to the residence occupied on the lien date by the household as the
household's principal place of residence.
(f)
(i)
If a residence is an integral part of a large unit such as a farm or a multipurpose
or multidwelling building, property taxes accrued shall be calculated on the
percentage that the value of the residence is of the total value of the unit.
(ii)
For purposes of this Subsection
(21)(f)
, "unit" refers to the parcel of property
covered by a single tax statement of which the residence is a part.
(22)
"Property taxes due" means:
(a)
for a claimant:
(i)
the taxes due for which the county or the commission grants a tax abatement for
the poor described in Subsection
(21)
or a credit; and
(ii)
for the calendar year for which the tax abatement for the poor or credit is granted;
(b)
for an indigent individual:
(i)
the taxes due for which a county granted an abatement under Section
59-2a-401
;
and
(ii)
for the calendar year for which the county grants the abatement;
(c)
for an active duty claimant:
(i)
the taxes due for which the county or the commission grants an exemption; and
(ii)
for the calendar year for which the exemption is granted; or
(d)
for a veteran claimant:
(i)
(A)
the taxes due for which the county or the commission grants an exemption;
and
(B)
for the calendar year for which the exemption is granted; and
(ii)
a uniform fee on tangible personal property described in Section
59-2-405
that is:
(A)
owned by the veteran claimant; and
(B)
assessed for the calendar year for which the county grants an exemption.
(23)
"Property taxes paid" means an amount equal to the sum of:
(a)
the amount of property taxes, and for a veteran claimant, uniform fee, paid for the
taxable year for which the individual applied for relief described in this chapter; and
(b)
the amount of the relief the county grants under this chapter.
(24)
"Public assistance" means:
(a)
medical assistance provided under Title 26B, Chapter 3, Health Care -
Administration and Assistance;
(b)
SNAP benefits as defined in Section
35A-1-102
;
(c)
services or benefits provided under Title 35A, Chapter 3, Employment Support Act;
and
(d)
foster care maintenance payments provided from the General Fund or under Title
IV-E of the Social Security Act.
(25)
"Qualifying active duty military service" means at least 200 days, regardless of
whether consecutive, in any continuous 365-day period of active duty military service
outside the state in an active component of the United States Armed Forces or a reserve
component of the United States Armed Forces, if the days of active duty military service:
(a)
were completed in the year before an individual applies for an exemption described
in Section
59-2a-601
; and
(b)
have not previously been counted as qualifying active duty military service for
purposes of qualifying for an exemption described in Section
59-2a-601
or applying
for the exemption as described in Section
59-2a-602
.
(26)
"Qualifying disabled veteran claimant" means a veteran claimant who has a 100%
service-connected disability rating by the Veterans Benefits Administration that is
permanent and total.
(27)
"Qualifying increase" means a valuation that is equal to or more than 150% higher
than the previous year's valuation for property that:
(a)
is county assessed; and
(b)
on or after January 1 of the previous year and before January 1 of the current year
has not had:
(i)
a physical improvement if the fair market value of the physical improvement
increases enough to result in the valuation increase solely as a result of the
physical improvement;
(ii)
a zoning change if the fair market value of the real property increases enough to
result in the valuation increase solely as a result of the zoning change; or
(iii)
a change in the legal description of the real property, if the fair market value of
the real property increases enough to result in the valuation increase solely as a
result of the change in the legal description of the real property.
(28)
"Qualifying trust" means a trust holding title to real or tangible personal property for
which an individual:
(a)
makes a claim under this part;
(b)
proves to the satisfaction of the county that title to the portion of the trust will revest
in the individual upon the exercise of a power:
(i)
by:
(A)
the individual as grantor, trustor, settlor, or in another similar role of the trust;
(B)
a nonadverse party; or
(C)
both the individual and a nonadverse party; and
(ii)
regardless of whether the power is a power:
(A)
to revoke;
(B)
to terminate;
(C)
to alter;
(D)
to amend; or
(E)
to appoint; and
(c)
is obligated to pay the taxes on that portion of the trust property beginning January 1
of the year the individual makes the claim.
(29)
"Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister,
parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or a
spouse of any of these individuals.
(30)
"Rental assistance payment" means any payment that:
(a)
is made by a:
(i)
governmental entity;
(ii)
charitable organization; or
(iii)
religious organization; and
(b)
is specifically designated for the payment of rent of a claimant:
(i)
for the calendar year for which the claimant seeks a renter's credit under this part;
and
(ii)
regardless of whether the payment is made to the claimant or the landlord.
(31)
"Reserve component of the United States Armed Forces" means the same as that term
is defined in Section
59-10-1027
.
(32)
(a)
(i)
"Residence" means a dwelling in this state, whether owned or rented, and
so much of the land surrounding the dwelling, not exceeding one acre, as is
reasonably necessary for use of the dwelling as a home.
(ii)
"Residence" includes a dwelling that is:
(A)
a part of a multidwelling or multipurpose building and a part of the land upon
which the multidwelling or multipurpose building is built; and
(B)
a mobile home, manufactured home, or houseboat.
(b)
"Residence" does not include personal property such as furniture, furnishings, or
appliances.
(c)
For purposes of this Subsection
(32)
, "owned" includes a vendee in possession under
a land contract or one or more joint tenants or tenants in common.
(33)
"Statement of disability" means a document:
(a)
issued by a military entity; and
(b)
that lists the percentage of disability for the veteran with a disability or deceased
veteran with a disability.
(34)
"Tax notice charge" means the same as that term is defined in Section
59-2-1301.5
.
(35)
"Veteran claimant" means one of the following individuals who applies for an
exemption described in Section
59-2a-501
:
(a)
a veteran with a disability;
(b)
the unmarried surviving spouse of:
(i)
a deceased veteran with a disability; or
(ii)
a veteran who was killed in action or died in the line of duty; or
(c)
a minor orphan of:
(i)
a deceased veteran with a disability; or
(ii)
a veteran who was killed in action or died in the line of duty.
(36)
"Veteran who was killed in action or died in the line of duty" means an individual who
was killed in action or died in the line of duty in an active component of the United
States Armed Forces or a reserve component of the United States Armed Forces,
regardless of whether that individual had a disability at the time that individual was
killed in action or died in the line of duty.
(37)
"Veteran with a disability" means an individual with a disability who, during military
training or a military conflict, acquired a disability in the line of duty in an active
component of the United States Armed Forces or a reserve component of the United
States Armed Forces, as determined by a military entity.
Section 10. Section
59-2a-106
is amended to read:
59-2a-106
Effective
05/06/26
. Denial of relief -- Appeal.
Any person aggrieved by the denial in whole or in part of relief claimed under this chapter
,
except when the denial is based upon late filing of claim for relief,
may appeal the denial to
the commission by filing a notice of appeal in accordance with Section
59-2-1006
.
Section 11. Section
59-4-101
is amended to read:
59-4-101
Effective
05/06/26
. Tax basis -- Assessment and collection --
Designation of person to receive notice.
(1)
(a)
Except as provided in Subsections (1)(b), (1)(c), and (3)
Subject to Subsection
(1)(b)
and except as provided in Section
59-4-103
, a tax is imposed on the possession
or other beneficial use enjoyed by any person of any real or personal property that is
exempt for any reason from taxation, if that property is used in connection with a
business conducted for profit.
(b)
Any interest remaining in the state in state lands after subtracting amounts paid or
due in part payment of the purchase price as provided in Subsection
59-2-1103(2)(b)(i)
under a contract of sale is subject to taxation under this chapter
regardless of whether the property is used in connection with a business conducted
for profit.
(c)
The tax imposed under Subsection (1)(a) does not apply to property exempt from
taxation under Section
59-2-1114
.
(2)
(a)
The tax imposed under this chapter is the same amount that the ad valorem
property tax would be if the possessor or user were the owner of the property.
(b)
The amount of any payments that are made in lieu of taxes is credited against the tax
imposed on the beneficial use of property owned by the federal government.
(3)
A tax is not imposed under this chapter on the following:
(a)
the use of property that is a concession in, or relative to, the use of a public airport,
park, fairground, or similar property that is available as a matter of right to the use of
the general public;
(b)
the use or possession of property by a religious, educational, or charitable
organization;
(c)
the use or possession of property if the revenue generated by the possessor or user of
the property through its possession or use of the property inures only to the benefit of
a religious, educational, or charitable organization and not to the benefit of any other
person;
(d)
the possession or other beneficial use of public land occupied under the terms of an
agricultural lease or permit issued by the United States or this state;
(e)
the use or possession of any lease, permit, or easement unless the lease, permit, or
easement entitles the lessee or permittee to exclusive possession of the premises to
which the lease, permit, or easement relates;
(f)
the use or possession of property by a public agency, as defined in Section
11-13-103
,
to the extent that the ownership interest of the public agency in that property is
subject to a fee in lieu of ad valorem property tax under Section
11-13-302
; or
(g)
the possession or beneficial use of public property as a tollway by a private entity
through a tollway development agreement as defined in Section
72-6-202
.
(4)
For purposes of Subsection (3)(e):
(a)
every lessee, permittee, or other holder of a right to remove or extract the mineral
covered by the holder's lease, right permit, or easement, except from brines of the
Great Salt Lake, is considered to be in possession of the premises, regardless of
whether another party has a similar right to remove or extract another mineral from
the same property; and
(b)
a lessee, permittee, or holder of an easement still has exclusive possession of the
premises if the owner has the right to enter the premises, approve leasehold
improvements, or inspect the premises.
(5)
(3)
(a)
A tax imposed under this chapter is assessed to the possessors or users of the
property on the same forms, and collected and, subject to Sections
11-70-203
and
11-59-207
, distributed at the same time and in the same manner, as taxes assessed
owners, possessors, or other claimants of property that is subject to ad valorem
property taxation.
(b)
The tax imposed under this chapter is not a lien against the property, and no
tax-exempt property may be attached, encumbered, sold, or otherwise affected for the
collection of the tax.
(6)
(4)
(a)
(i)
Except as provided in Subsection
(6)(a)(ii)
(4)(a)(ii)
, if a governmental
entity is required under this chapter to send information or notice to a person, the
governmental entity shall send the information or notice to:
(A)
the person required under the applicable provision of this chapter; and
(B)
each person designated in accordance with Subsection
(6)(b)
(4)(b)
by the
person described in Subsection
(6)(a)(i)(A)
(4)(a)(i)(A)
.
(ii)
If a governmental entity is required under Section
59-2-919.1
or
59-2-1317
to
send information or notice to a person, the governmental entity shall send the
information or notice to:
(A)
the person required under the applicable section; or
(B)
one person designated in accordance with Subsection
(6)(b)
(4)(b)
by the
person described in Subsection
(6)(a)(ii)(A)
(4)(a)(ii)(A)
.
(b)
(i)
A person to whom a governmental entity is required under this chapter to send
information or notice may designate a person to receive the information or notice
in accordance with Subsection
(6)(a)
(4)(a)
.
(ii)
To make a designation described in Subsection
(6)(b)(i)
(4)(b)(i)
, the person
shall submit a written request to the governmental entity on a form prescribed by
the commission.
(c)
A person who makes a designation described in Subsection
(6)(b)
(4)(b)
may revoke
the designation by submitting a written request to the governmental entity on a form
prescribed by the commission.
(7)
(5)
Sections
59-2-301.1
through
59-2-301.7
apply for purposes of assessing a tax under
this chapter.
Section 12. Section
59-4-103
is enacted to read:
59-4-103
Effective
05/06/26
. Exemptions from privilege tax.
(1)
As used in this section:
(a)
"Additional project capacity" means the same as that term is defined in Section
11-13-103
.
(b)
"Project" means the same as that term is defined in Section
11-13-103
.
(c)
"Public agency" means the same as that term is defined in Section
11-13-103
.
(d)
"Qualified stadium" means the same as that term is defined in Section
11-70-101
.
(e)
"Tollway development agreement" means the same as that term is defined in Section
72-6-202
.
(2)
The tax imposed under this chapter does not apply to the following:
(a)
the use or possession of property exempt from taxation under Section
59-2-1114
;
(b)
the use or possession of property that is a concession in, or relative to, the use of a
public airport, park, fairground, or similar property that is available as a matter of
right to the use of the general public;
(c)
the use or possession of property by a religious, educational, or charitable
organization;
(d)
the use or possession of property for which all revenue generated from the use or
possession of the property inures only to the benefit of a religious, educational, or
charitable organization and not to the benefit of any other person;
(e)
the use or possession of public land occupied under the terms of an agricultural lease
or permit issued by the United States or this state;
(f)
subject to Subsection
(3)
, the use or possession of any lease, permit, or easement
unless the lease, permit, or easement entitles the lessee or permittee to exclusive
possession of the premises to which the lease, permit, or easement relates;
(g)
the use or possession of property by a public agency to the extent that the ownership
interest of the public agency in that property is subject to a fee in lieu of ad valorem
property tax under Section
11-13-302
;
(h)
the use or possession of public property as a tollway by a private entity through a
tollway development agreement;
(i)
in accordance with Section
11-12-312
, the use or possession of a project or facility
providing additional project capacity to the extent that the project or facility is subject
to impact alleviation payments, fees in lieu of ad valorem property taxes, or ad
valorem property taxes;
(j)
in accordance with Subsection
11-70-203(1)(b)
, the use or possession of a qualified
stadium during the construction of the qualified stadium and before title to the
stadium is conveyed to the Utah Fairpark Area Investment and Restoration District,
created in Section
11-70-201
; or
(k)
in accordance with Subsection
63H-1-501(7)
, the use or possession of a hotel, a hotel
condominium unit in a condominium project, or a commercial condominium unit in a
condominium project owned by the military installation development authority,
created in Section
63H-1-201
, regardless of whether the military installation
development authority enters into a long-term operating agreement with a privately
owned entity under which the privately owned entity agrees to operate the property.
(3)
For purposes of Subsection
(2)(f)
:
(a)
each lessee, permittee, or other holder of a right to remove or extract the mineral
covered by the holder's lease, right permit, or easement, except from brines of the
Great Salt Lake, is considered to be in possession of the premises, regardless of
whether another party has a similar right to remove or extract another mineral from
the same property; and
(b)
a lessee, permittee, or holder of an easement still has exclusive possession of the
premises if the owner has the right to enter the premises, approve leasehold
improvements, or inspect the premises.
Section 13. Section
59-6-103
is amended to read:
59-6-103
Effective
05/06/26
Applies beginning
01/01/26
. Returns and
payments required of producers.
(1)
(a)
Subject to Subsection
(1)(b)
, a producer required to deduct and withhold an
amount under this chapter shall file a withholding return with the commission:
(i)
for the amounts required to be deducted and withheld under this chapter during the
preceding calendar quarter;
and
(ii)
in an electronic format
prescribed
approved
by the commission
.
; and
(iii)
that contains any information the commission requires.
(b)
A withholding return described in Subsection
(1)(a)
is due on or before the last day
of April, July, October, and January.
(c)
(i)
Each producer shall file an annual return containing the information that the
commission requires.
(ii)
The producer shall file the annual return:
(A)
in an electronic format the commission approves; and
(B)
on or before January 31 of the year following that for which the return is made.
(c)
A withholding return described in Subsection
(1)(a)
shall contain:
(i)
the name and address of each person receiving a payment subject to the deduction
and withholding requirements of this chapter for the calendar quarter for which
the withholding return is filed;
(ii)
for each person described in Subsection
(1)(c)(i)
, the amount of payment the
person would have received from the production of minerals by the producer had
the deduction and withholding required by this chapter not been made for the
calendar quarter for which the withholding return is filed;
(iii)
for each person described in Subsection
(1)(c)(i)
, the amount of deduction and
withholding under this chapter for the calendar quarter for which the withholding
return is filed;
(iv)
the name or description of the property from which the production of minerals
occurs that results in a payment subject to deduction and withholding under this
chapter; and
(v)
for each person described in Subsection
(1)(c)(i)
, the interest of the person in the
production of minerals that results in a payment subject to deduction and
withholding under this chapter.
(2)
(a)
If a producer receives an exemption certificate filed in accordance with Section
59-6-102.1
from a business entity, the producer shall file a withholding return with
the commission:
(i)
on a form prescribed by the commission
in a format the commission approves
;
and
(ii)
on or before the January 31 following the last day of the taxable year for which
the producer receives the exemption certificate from the business entity.
(b)
The withholding return required by Subsection
(2)(a)
shall contain:
(i)
the name and address of the business entity that files the exemption certificate in
accordance with Section
59-6-102.1
;
(ii)
the amount of the payment made by the producer to the business entity that would
have been subject to deduction and withholding under this chapter had the
business entity not filed the exemption certificate in accordance with Section
59-6-102.1
;
(iii)
the name or description of the property from which the production of minerals
occurs that would have resulted in a payment subject to deduction and
withholding under this chapter had the business entity not filed the exemption
certificate in accordance with Section
59-6-102.1
; and
(iv)
the interest of the business entity in the production of minerals that would have
resulted in a payment subject to deduction and withholding under this chapter had
the business entity not filed the exemption certificate in accordance with Section
59-6-102.1
.
(3)
(a)
Subject to Subsections
(3)(b)
and
(c)
, the commission shall require a producer that
issues the following forms for a taxable year to file the forms with the commission in
an electronic format approved by the commission:
(i)
a federal Form 1099 filed for purposes of withholding under this section; or
(ii)
a federal form substantially similar to a form described in Subsection
(3)(a)(i)
if
designated by the commission in accordance with Subsection
(3)(d)
.
(b)
A producer that is required to file a form with the commission in accordance with
Subsection
(3)(a)
shall file the form on or before January 31.
(c)
A producer that is required to file a form with the commission in accordance with
Subsection
(3)(a)
shall provide:
(i)
accurate information on the form; and
(ii)
all of the information required by the Internal Revenue Service to be contained on
the form.
(d)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
purposes of Subsection
(3)(a)
, the commission may designate a federal form as being
substantially similar to a form described in Subsection
(3)(a)(i)
if:
(i)
for purposes of federal individual income taxes, a different federal form contains
substantially similar information to a form described in Subsection
(3)(a)(i)
; or
(ii)
the Internal Revenue Service replaces a form described in Subsection
(3)(a)(i)

with a different federal form.
Section 14. Section
59-7-607
is amended to read:
59-7-607
Effective
05/06/26
. Utah low-income housing tax credit.
(1)
As used in this section:
(a)
"Allocation certificate" means a certificate in a form prescribed by the commission
and issued by the corporation to a housing sponsor that specifies the aggregate
amount of the tax credit awarded under this section to a qualified development and
includes:
(i)
the aggregate annual amount of the tax credit awarded that may be claimed by one
or more qualified taxpayers; and
(ii)
the credit period over which the tax credit may be claimed by one or more
qualified taxpayers.
(b)
"Building" means a qualified low-income building as defined in Section 42(c),
Internal Revenue Code.
(c)
"Corporation" means the Utah Housing Corporation created in Section
63H-8-201
.
(d)
Except as provided in Subsection
(5)(c)
, "credit period" means the same as that term
is defined in Section 42(f)(1), Internal Revenue Code.
(e)
"Designated reporter" means, as selected by a housing sponsor, the housing sponsor
or one of the housing sponsor's direct or indirect partners, members, or shareholders
that will provide information to the commission regarding the allocation of tax
credits under this section.
(f)
"Federal low-income housing tax credit" means the federal tax credit described in
Section 42, Internal Revenue Code.
(g)
"Housing sponsor" means an entity that owns a qualified development.
(h)
"Pass-through entity" means the same as that term is defined in Section
59-10-1402
.
(i)
(i)
Subject to Subsection
(1)(i)(ii)
, "pass-through entity taxpayer" means the same
as that term is defined in Section
59-10-1402
.
(ii)
The determination of whether a pass-through entity taxpayer is considered a
partner, member, or shareholder of a pass-through entity shall be made in
accordance with applicable state law governing the pass-through entity.
(j)
"Qualified allocation plan" means a qualified allocation plan adopted by the
corporation in accordance with Section 42(m), Internal Revenue Code.
(k)
"Qualified development" means a "qualified low-income housing project":
(i)
as defined in Section 42(g)(1), Internal Revenue Code; and
(ii)
that is located in the state.
(l)
(i)
"Qualified taxpayer" means a person that:
(A)
owns a direct interest or an indirect interest, through one or more pass-through
entities, in a qualified development; and
(B)
meets the requirements to claim a tax credit under this section.
(ii)
"Qualified taxpayer" includes a pass-through entity taxpayer to which a tax credit
under this section is passed through by a pass-through entity.
(2)
(a)
A qualified taxpayer may claim a nonrefundable tax credit under this section
against taxes otherwise due under this chapter, Chapter 8, Gross Receipts Tax on
Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act,
or Chapter 9, Taxation of Admitted Insurers.
(b)
The tax credit shall be in an amount equal to the tax credit amount specified on the
allocation certificate that the corporation issues to a housing sponsor under this
section.
(c)
(i)
For a calendar year beginning on or before December 31, 2016, the aggregate
annual tax credit that the corporation may allocate for each year of the credit
period
pursuant to
in accordance with
this section and Section
59-10-1010
is an
amount equal to the product of:
(A)
12.5 cents; and
(B)
the population of Utah.
(ii)
For a calendar year beginning on or after January 1, 2017, but beginning on or
before December 31, 2022, the aggregate annual tax credit that the corporation
may allocate for each year of the credit period
pursuant to
in accordance with
this
section and Section
59-10-1010
is an amount equal to the product of:
(A)
34.5 cents; and
(B)
the population of Utah.
(iii)
For a calendar year beginning on or after January 1, 2023, but beginning on or
before December 31, 2028, the aggregate annual tax credit that the corporation
may allocate for each year of the credit period
pursuant to
in accordance with
this
section and Section
59-10-1010
is $10,000,000.
(iv)
For a calendar year beginning on or after January 1, 2024, in addition to the
amount of annual tax credits available for allocation as described in Subsections
(2)(c)(i)
through
(2)(c)(iii)
, the corporation shall have the following tax credit
amounts available for allocation:
(A)
any tax credits allocated in a calendar year that are subsequently returned to
the corporation or recaptured by the corporation may be allocated in the
following year, except no tax credits under this Subsection
(2)(c)(iv)
shall be
allocated after December 31, 2028; and
(B)
if the actual amount of tax credits allocated in a calendar year to qualified
developments is less than the total amount of credits available to be allocated
to qualified developments, the balance of the credits but no more than 15% of
the total amount of credits available for allocation to qualified developments
may be allocated by the corporation to qualified developments in the following
calendar year, except no tax credits under this Subsection
(2)(c)(iv)
shall be
allocated after December 31, 2028.
(v)
For a calendar year beginning on or after January 1, 2029, the aggregate annual
tax credit that the corporation may allocate for each year of the credit period
pursuant to this section and Section
59-10-1010
is the amount described in
Subsection
(2)(c)(ii)
.
(vi)
For purposes of this Subsection
(2)(c)
, the population of Utah shall be
determined in accordance with Section 146(j), Internal Revenue Code.
(d)
(i)
Subject to Subsection
(2)(d)(ii)
, a qualified taxpayer that is a pass-through
entity may allocate a tax credit under this section to one or more of the
pass-through entity's pass-through entity taxpayers in any manner agreed upon,
regardless of whether:
(A)
the pass-through entity taxpayer is eligible to claim any portion of a federal
low-income housing tax credit for the qualified development;
(B)
the allocation of the tax credit has substantial economic effect within the
meaning of Section 704(b), Internal Revenue Code; or
(C)
the pass-through entity taxpayer is considered a partner for federal income tax
purposes.
(ii)
With respect to a tax year, a qualified taxpayer that is a pass-through entity
taxpayer may claim a tax credit allocated to the qualified taxpayer by a
pass-through entity under Subsection
(2)(d)(i)
so long as the qualified taxpayer's
ownership interest in the pass-through entity is:
(A)
acquired on or before December 31 of the tax year to which the tax credit
relates; and
(B)
reflected in the report required in Subsection
(6)(b)
for the tax year to which
the tax credit relates.
(e)
If a qualified taxpayer that is a pass-through entity taxpayer assigns to another
taxpayer the pass-through entity taxpayer's ownership interest in a pass-through
entity, including the pass-through entity taxpayer's interest in the tax credit associated
with the ownership interest, the assignee shall be considered a qualified taxpayer and
may claim the tax credit so long as the assignee's ownership interest in the
pass-through entity is:
(i)
acquired on or before December 31 of the tax year to which the tax credit relates;
and
(ii)
reflected in the report required in Subsection
(6)(b)
for the tax year to which the
tax credit relates.
(3)
(a)
The corporation shall determine criteria and procedures for allocating the tax
credit under this section and Section
59-10-1010
and incorporate the criteria and
procedures into the corporation's qualified allocation plan.
(b)
The corporation shall create the criteria under Subsection
(3)(a)
based on:
(i)
the number of affordable housing units to be created in Utah for low and moderate
income persons in a qualified development;
(ii)
the level of area median income being served by a qualified development;
(iii)
the need for the tax credit for the economic feasibility of a qualified
development; and
(iv)
the extended period for which a qualified development commits to remain as
affordable housing.
(4)
Any housing sponsor may apply to the corporation for a tax credit allocation under this
section.
(5)
(a)
(i)
The corporation shall determine the amount of the tax credit to allocate to a
qualified development in accordance with the qualified allocation plan.
(ii)
(A)
Before the allocation certificate is issued to the housing sponsor, the
corporation shall send to the housing sponsor written notice of the corporation's
preliminary determination of the tax credit amount to be allocated to the
qualified development.
(B)
The notice described in Subsection
(5)(a)(ii)(A)
shall specify the corporation's
preliminary determination of the tax credit amount to be allocated to the
qualified development for each year of the credit period and state that
allocation of the tax credit is contingent upon the issuance of an allocation
certificate.
(iii)
Upon approving a final cost certification in accordance with the qualified
allocation plan, the corporation shall issue an allocation certificate to the housing
sponsor as evidence of the allocation.
(iv)
The amount of the tax credit specified in an allocation certificate may not exceed
100% of the federal low-income housing tax credit awarded to a qualified
development.
(b)
(i)
Notwithstanding Subsection
(5)(a)
, if a housing sponsor applies to the
corporation for a tax credit under this section and an allocation certificate is not
yet issued, a qualified taxpayer may claim a tax credit based upon the
corporation's preliminary determination of the tax credit amount as stated in the
notice under Subsection
(5)(a)(ii)
.
(ii)
Upon issuance of the allocation certificate to the housing sponsor, a qualified
taxpayer that claims a tax credit under this Subsection
(5)(b)
shall file an amended
tax return to adjust the tax credit amount if the amount previously claimed by the
qualified taxpayer is different than the amount specified in the allocation
certificate.
(c)
The amount of tax credit that may be claimed in the first year of the credit period
may not be reduced as a result of the calculation in Section 42(f)(2), Internal Revenue
Code.
(d)
On or before January 31 of each year, the corporation shall provide to the
commission in a form prescribed by the commission a report that describes each
allocation certificate that the corporation issued during the previous calendar year.
(6)
(a)
A housing sponsor shall provide to the commission identification of the housing
sponsor's designated reporter.
(b)
For each tax year in which a
qualified taxpayer claims a
tax credit
is claimed
under
this section, the designated reporter shall provide to the commission in a form
prescribed
approved
by the commission:
(i)
a list of each qualified taxpayer that has been allocated a portion of the tax credit
awarded in the allocation certificate for that tax year;
(ii)
the amount of tax credit that has been allocated to each qualified taxpayer
described in Subsection
(6)(b)(i)
for that tax year; and
(iii)
any other information
, as prescribed by
the commission
,
requires
to
demonstrate that the aggregate annual amount of tax credits allocated to all
qualified taxpayers for that tax year does not exceed the aggregate annual tax
credit amount specified in the allocation certificate.
(7)
(a)
All elections made by a housing sponsor
pursuant to
in accordance with
Section
42, Internal Revenue Code, shall apply to this section.
(b)
(i)
If a qualified development is required to recapture a portion of any federal
low-income housing tax credit, then each qualified taxpayer that has been
allocated a portion of a tax credit under this section shall also be required to
recapture a portion of the tax credit under this section.
(ii)
The state recapture amount
shall be
is
equal to the percentage of the state tax
credit that equals the proportion the federal recapture amount bears to the original
federal low-income housing tax credit amount subject to recapture.
(iii)
The designated reporter shall identify each qualified taxpayer that is required to
recapture a portion of any state tax credit as described in this Subsection
(7)(b)
.
(8)
(a)
Any
The corporation may reallocate any
tax credits returned to the corporation in
any year
may be reallocated
within the same time period as provided in Section 42,
Internal Revenue Code.
(b)
Tax credits that are unallocated by the corporation in any year may be carried over
for allocation in subsequent years.
(9)
(a)
If a tax credit is not claimed by a qualified taxpayer in the year in which it is
earned because the tax credit is more than the tax owed by the qualified taxpayer, the
tax credit may be carried back three years or may be carried forward five years as a
credit against the tax.
(b)
Carryover tax credits under Subsection
(9)(a)
shall be applied against the tax:
(i)
before the application of the tax credits earned in the current year; and
(ii)
on a first-earned first-used basis.
(10)
Any tax credit taken in this section may be subject to an annual audit by the
commission.
(11)
The corporation shall
provide
annually
provide
an electronic report to the Revenue
and Taxation Interim Committee that includes:
(a)
the purpose and effectiveness of the tax credits;
(b)
any recommendations for legislative changes to the aggregate tax credit amount that
the corporation is authorized to allocate each year under Subsection
(2)(c)
; and
(c)
the benefits of the tax credits to the state.
(12)
The commission may, in consultation with the corporation, make rules in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this
section.
(13)
(a)
Beginning in 2026, and every three years thereafter
As part of the Revenue and
Taxation Interim Committee's review of the tax credit required by Section
59-7-159
,
the Revenue and Taxation Interim Committee shall
:

(a)
conduct a review of the aggregate tax credit amount that the corporation is authorized
to allocate and has allocated each year under Subsection
(2)(c)
.
; and
(b)
consider any recommendations provided by the corporation under Subsection
(11)(b)
.
(b)
In a review under this Subsection (13), the Revenue and Taxation Interim
Committee shall:
(i)
study any recommendations provided by the corporation under Subsection
(11)(b); and
(ii)
if the Revenue and Taxation Interim Committee decides to recommend
legislative action to the Legislature, prepare legislation for consideration by the
Legislature in the next general session.
Section 15. Section
59-7-801
is amended to read:
59-7-801
Effective
05/06/26
. Definitions.
For purposes of this part:
(1)
"Unrelated business income" means unrelated business income as determined under
Section 512, Internal Revenue Code.
(2)
"Utah unrelated business income" means the unrelated business income
allocated or
apportioned to Utah in accordance with
Part 3, Allocation and Apportionment of Income
- Utah UDITPA Provisions
.
Section 16. Section
59-10-1010
is amended to read:
59-10-1010
Effective
05/06/26
. Utah low-income housing tax credit.
(1)
As used in this section:
(a)
"Allocation certificate" means a certificate in a form prescribed by the commission
and issued by the corporation to a housing sponsor that specifies the aggregate
amount of the tax credit awarded under this section to a qualified development and
includes:
(i)
the aggregate annual amount of the tax credit awarded that may be claimed by one
or more qualified taxpayers; and
(ii)
the credit period over which the tax credit may be claimed by one or more
qualified taxpayers.
(b)
"Building" means a qualified low-income building as defined in Section 42(c),
Internal Revenue Code.
(c)
"Corporation" means the Utah Housing Corporation created in Section
63H-8-201
.
(d)
Except as provided in Subsection
(5)(c)
, "credit period" means the same as that term
is defined in Section 42(f)(1), Internal Revenue Code.
(e)
"Designated reporter" means, as selected by a housing sponsor, the housing sponsor
or one of the housing sponsor's direct or indirect partners, members, or shareholders
that will provide information to the commission regarding the allocation of tax
credits under this section.
(f)
"Federal low-income housing credit" means the federal low-income housing credit
described in Section 42, Internal Revenue Code.
(g)
"Housing sponsor" means an entity that owns a qualified development.
(h)
"Pass-through entity" means the same as that term is defined in Section
59-10-1402
.
(i)
(i)
Subject to Subsection
(1)(i)(ii)
, "pass-through entity taxpayer" means the same
as that term is defined in Section
59-10-1402
.
(ii)
The determination of whether a pass-through entity taxpayer is considered a
partner, member, or shareholder of a pass-through entity shall be made in
accordance with applicable state law governing the pass-through entity.
(j)
"Qualified allocation plan" means a qualified allocation plan adopted by the
corporation in accordance with Section 42(m), Internal Revenue Code.
(k)
"Qualified development" means a "qualified low-income housing project":
(i)
as defined in Section 42(g)(1), Internal Revenue Code; and
(ii)
that is located in the state.
(l)
(i)
"Qualified taxpayer" means a claimant, estate, or trust that:
(A)
owns a direct or indirect interest, through one or more pass-through entities, in
a qualified development; and
(B)
meets the requirements to claim a tax credit under this section.
(ii)
"Qualified taxpayer" includes a pass-through entity taxpayer to which a tax credit
under this section is passed through by a pass-through entity.
(2)
(a)
A qualified taxpayer may claim a nonrefundable tax credit under this section
against taxes otherwise due under this chapter.
(b)
The tax credit shall be in an amount equal to the tax credit amount specified on the
allocation certificate that the corporation issues to a housing sponsor under this
section.
(c)
(i)
For a calendar year beginning on or before December 31, 2016, the aggregate
annual tax credit that the corporation may allocate for each year of the credit
period
pursuant to
in accordance with
this section and Section
59-7-607
is an
amount equal to the product of:
(A)
12.5 cents; and
(B)
the population of Utah.
(ii)
For a calendar year beginning on or after January 1, 2017, but beginning on or
before December 31, 2022, the aggregate annual tax credit that the corporation
may allocate for each year of the credit period
pursuant to
in accordance with
this
section and Section
59-7-607
is an amount equal to the product of:
(A)
34.5 cents; and
(B)
the population of Utah.
(iii)
For a calendar year beginning on or after January 1, 2023, but beginning on or
before December 31, 2028, the aggregate annual tax credit that the corporation
may allocate for each year of the credit period
pursuant to
in accordance with
this
section and Section
59-7-607
is $10,000,000.
(iv)
For a calendar year beginning on or after January 1, 2024, in addition to the
amount of annual tax credits available for allocation as described in Subsections
(2)(c)(i)
through
(2)(c)(iii)
, the corporation shall have the following tax credit
amounts available for allocation:
(A)
any tax credits allocated in a calendar year that are subsequently returned to
the corporation or recaptured by the corporation may be allocated in the
following calendar year, except no tax credits under this Subsection
(2)(c)(iv)

shall be allocated after December 31, 2028; and
(B)
if the actual amount of tax credits allocated in a calendar year to qualified
developments is less than the total amount of credits available to be allocated
to qualified developments, the balance of the credits but no more than 15% of
the total amount of credits available for allocation to qualified developments
may be allocated by the corporation to qualified developments in the following
calendar year, except no tax credits under this Subsection
(2)(c)(iv)
shall be
allocated after December 31, 2028.
(v)
For a calendar year beginning on or after January 1, 2029, the aggregate annual
tax credit that the corporation may allocate for each year of the credit period
pursuant to this section and Section
59-7-607
is the amount described in
Subsection
(2)(c)(ii)
.
(vi)
For purposes of this Subsection
(2)(c)
, the population of Utah shall be
determined in accordance with Section 146(j), Internal Revenue Code.
(d)
(i)
Subject to Subsection
(2)(d)(ii)
, a qualified taxpayer that is a pass-through
entity may allocate a tax credit under this section to one or more of the
pass-through entity's pass-through entity taxpayers in any manner agreed upon,
regardless of whether:
(A)
the pass-through entity taxpayer is eligible to claim any portion of a federal
low-income housing tax credit for the qualified development;
(B)
the allocation of the tax credit has substantial economic effect within the
meaning of Section 704(b), Internal Revenue Code; or
(C)
the pass-through entity taxpayer is considered a partner for federal income tax
purposes.
(ii)
With respect to a tax year, a qualified taxpayer that is a pass-through entity
taxpayer may claim a tax credit allocated to the qualified taxpayer by a
pass-through entity under Subsection
(2)(d)(i)
so long as the qualified taxpayer's
ownership interest in the pass-through entity is:
(A)
acquired on or before December 31 of the tax year to which the tax credit
relates; and
(B)
reflected in the report required in Subsection
(6)(b)
for the tax year to which
the tax credit relates.
(e)
If a qualified taxpayer that is a pass-through entity taxpayer assigns to another
taxpayer the pass-through entity taxpayer's ownership interest in a pass-through
entity, including the pass-through entity taxpayer's interest in the tax credit associated
with the ownership interest, the assignee shall be considered a qualified taxpayer and
may claim the tax credit so long as the assignee's ownership interest in the
pass-through entity is:
(i)
acquired on or before December 31 of the tax year to which the tax credit relates;
and
(ii)
reflected in the report required in Subsection
(6)(b)
for the tax year to which the
tax credit relates.
(3)
(a)
The corporation shall determine criteria and procedures for allocating the tax
credit under this section and Section
59-7-607
and incorporate the criteria and
procedures into the corporation's qualified allocation plan.
(b)
The corporation shall create the criteria under Subsection
(3)(a)
based on:
(i)
the number of affordable housing units to be created in Utah for low and moderate
income persons in a qualified development;
(ii)
the level of area median income being served by a qualified development;
(iii)
the need for the tax credit for the economic feasibility of a qualified
development; and
(iv)
the extended period for which a qualified development commits to remain as
affordable housing.
(4)
Any housing sponsor may apply to the corporation for a tax credit allocation under this
section.
(5)
(a)
(i)
The corporation shall determine the amount of the tax credit to allocate to a
qualified development in accordance with the qualified allocation plan.
(ii)
(A)
Before the allocation certificate is issued to the housing sponsor, the
corporation shall send to the housing sponsor written notice of the corporation's
preliminary determination of the tax credit amount to be allocated to the
qualified development.
(B)
The notice described in Subsection
(5)(a)(ii)(A)
shall specify the corporation's
preliminary determination of the tax credit amount to be allocated to the
qualified development for each year of the credit period and state that
allocation of the tax credit is contingent upon the issuance of an allocation
certificate.
(iii)
Upon approving a final cost certification in accordance with the qualified
allocation plan, the corporation shall issue an allocation certificate to the housing
sponsor as evidence of the allocation.
(iv)
The amount of the tax credit specified in an allocation certificate may not exceed
100% of the federal low-income housing credit awarded to a qualified
development.
(b)
(i)
Notwithstanding Subsection
(5)(a)
, if a housing sponsor applies to the
corporation for a tax credit under this section and an allocation certificate is not
yet issued, a qualified taxpayer may claim a tax credit based upon the
corporation's preliminary determination of the tax credit amount as stated in the
notice under Subsection
(5)(a)(ii)
.
(ii)
Upon issuance of the allocation certificate to the housing sponsor, a qualified
taxpayer that claims a tax credit under this Subsection
(5)(b)
shall file an amended
tax return to adjust the tax credit amount if the amount previously claimed by the
qualified taxpayer is different than the amount specified in the allocation
certificate.
(c)
The amount of tax credit that may be claimed in the first year of the credit period
may not be reduced as a result of the calculation in Section 42(f)(2), Internal Revenue
Code.
(d)
On or before January 31 of each year, the corporation shall provide to the
commission in a form
prescribed
approved
by the commission a report that
describes each allocation certificate that the corporation issued during the previous
calendar year.
(6)
(a)
A housing sponsor shall provide to the commission identification of the housing
sponsor's designated reporter.
(b)
For each tax year in which a
qualified taxpayer claims a
tax credit
is claimed
under
this section, the designated reporter shall provide to the commission in a form
prescribed
approved
by the commission:
(i)
a list of each qualified taxpayer that has been allocated a portion of the tax credit
awarded in the allocation certificate for that tax year;
(ii)
the amount of tax credit that has been allocated to each qualified taxpayer
described in Subsection
(6)(b)(i)
for that tax year; and
(iii)
any other information
, as prescribed by
the commission
,
requires
to
demonstrate that the aggregate annual amount of tax credits allocated to all
qualified taxpayers for that tax year does not exceed the aggregate annual tax
credit amount specified in the allocation certificate.
(7)
(a)
All elections made by a housing sponsor
pursuant to
in accordance with
Section
42, Internal Revenue Code, shall apply to this section.
(b)
(i)
If a qualified taxpayer is required to recapture a portion of any federal
low-income housing credit, the qualified taxpayer that has been allocated a portion
of a tax credit under this section shall also be required to recapture a portion of the
tax credit under this section.
(ii)
The state recapture amount
shall be
is
equal to the percentage of the state tax
credit that equals the proportion the federal recapture amount bears to the original
federal low-income housing credit amount subject to recapture.
(iii)
The designated reporter shall identify each qualified taxpayer that is required to
recapture a portion of any state tax credits as described in this Subsection
(7)(b)
.
(8)
(a)
Any
The corporation may reallocate any
tax credits returned to the corporation in
any year
may be reallocated
within the same time period as provided in Section 42,
Internal Revenue Code.
(b)
Tax credits that are unallocated by the corporation in any year may be carried over
for allocation in subsequent years.
(9)
(a)
If a tax credit is not claimed by a qualified taxpayer in the year in which it is
earned because the tax credit is more than the tax owed by the qualified taxpayer, the
tax credit may be carried back three years or may be carried forward five years as a
credit against the tax.
(b)
Carryover tax credits under Subsection
(9)(a)
shall be applied against the tax:
(i)
before the application of the tax credits earned in the current year; and
(ii)
on a first-earned first-used basis.
(10)
Any tax credit taken in this section may be subject to an annual audit by the
commission.
(11)
The corporation shall
provide
annually
provide
an electronic report to the Revenue
and Taxation Interim Committee that includes:
(a)
the purpose and effectiveness of the tax credits;
(b)
any recommendations for legislative changes to the aggregate tax credit amount that
the corporation is authorized to allocate each year under Subsection
(2)(c)
; and
(c)
the benefits of the tax credits to the state.
(12)
The commission may, in consultation with the corporation, promulgate rules to
implement this section.
(13)
(a)
Beginning in 2026, and every three years thereafter
As part of the Revenue and
Taxation Interim Committee's review of the tax credit required by Section
59-10-137
,
the Revenue and Taxation Interim Committee shall
:

(a)
conduct a review of the aggregate tax credit amount that the corporation is authorized
to allocate and has allocated each year under Subsection
(2)(c)
.
; and
(b)
consider any recommendations provided by the corporation under Subsection
(11)(b)
.
(b)
In a review under this Subsection (13), the Revenue and Taxation Interim
Committee shall:
(i)
study any recommendations provided by the corporation under Subsection
(11)(b); and
(ii)
if the Revenue and Taxation Interim Committee decides to recommend
legislative action to the Legislature, prepare legislation for consideration by the
Legislature in the next general session.
Section 17. Section
59-10-1018
is amended to read:
59-10-1018
Effective
05/06/26
Applies beginning
01/01/26
. Definitions --
Nonrefundable taxpayer tax credits.
(1)
As used in this section:
(a)
"Head of household filing status" means a head of household, as defined in Section
2(b), Internal Revenue Code, who files a single federal individual income tax return
for the taxable year.
(b)
"Joint filing status" means:
(i)
spouses who file a single return jointly under this chapter for a taxable year; or
(ii)
a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
single federal individual income tax return for the taxable year.
(c)
"Qualifying dependent" means an individual with respect to whom the claimant is
allowed to claim a tax credit under Section 24, Internal Revenue Code, on the
claimant's federal individual income tax return for the taxable year.
(d)
"Single filing status" means:
(i)
a single individual who files a single federal individual income tax return for the
taxable year; or
(ii)
a married individual who:
(A)
does not file a single federal individual income tax return jointly with that
married individual's spouse for the taxable year; and
(B)
files a single federal individual income tax return for the taxable year.
(e)
"State or local income tax" means the lesser of:
(i)
the amount of state or local income tax that the claimant:
(A)
pays for the taxable year; and
(B)
reports on the claimant's federal individual income tax return for the taxable
year
, regardless of whether the claimant is allowed an itemized deduction on
the claimant's federal individual income tax return for the taxable year for the
full amount of state or local income tax paid
; and
(ii)
$10,000
the amount of state or local income tax that is included and allowed as
an itemized deduction on the claimant's federal individual income tax return for
the taxable year
.
(f)
(i)
"Utah itemized deduction" means the amount the claimant deducts as allowed
as an itemized deduction on the claimant's federal individual income tax return for
that taxable year minus any amount of state or local income tax for the taxable
year.
(ii)
"Utah itemized deduction" does not include any amount of qualified business
income that the claimant subtracts as allowed by Section 199A, Internal Revenue
Code, on the claimant's federal income tax return for that taxable year.
(g)
"Utah personal exemption" means, subject to Subsection
(6)
, $1,750 multiplied by
the number of the claimant's qualifying dependents plus an additional qualifying
dependent in the year of a qualifying dependent's birth.
(2)
Except as provided in Section
59-10-1002.2
, and subject to Subsections
(3)
through
(5)
,
a claimant may claim a nonrefundable tax credit against taxes otherwise due under this
part equal to the sum of:
(a)
(i)
for a claimant that deducts the standard deduction on the claimant's federal
individual income tax return for the taxable year, 6% of the amount the claimant
deducts as allowed as the standard deduction on the claimant's federal individual
income tax return for that taxable year; or
(ii)
for a claimant that itemizes deductions on the claimant's federal individual
income tax return for the taxable year, 6% of the amount of the claimant's Utah
itemized deduction; and
(b)
6% of the claimant's Utah personal exemption.
(3)
A claimant may not carry forward or carry back a tax credit under this section.
(4)
The tax credit allowed by Subsection
(2)
shall be reduced by $.013 for each dollar by
which a claimant's state taxable income exceeds:
(a)
for a claimant who has a single filing status, $15,095;
(b)
for a claimant who has a head of household filing status, $22,643; or
(c)
for a claimant who has a joint filing status, $30,190.
(5)
(a)
For a taxable year beginning on or after January 1, 2022, the commission shall
increase or decrease annually the following dollar amounts by a percentage equal to
the percentage difference between the consumer price index for the preceding
calendar year and the consumer price index for calendar year 2020:
(i)
the dollar amount listed in Subsection
(4)(a)
; and
(ii)
the dollar amount listed in Subsection
(4)(b)
.
(b)
After the commission increases or decreases the dollar amounts listed in Subsection
(5)(a)
, the commission shall round those dollar amounts listed in Subsection
(5)(a)
to
the nearest whole dollar.
(c)
After the commission rounds the dollar amounts as required by Subsection
(5)(b)
, the
commission shall increase or decrease the dollar amount listed in Subsection
(4)(c)
so
that the dollar amount listed in Subsection
(4)(c)
is equal to the product of:
(i)
the dollar amount listed in Subsection
(4)(a)
; and
(ii)
two.
(d)
For purposes of Subsection
(5)(a)
, the commission shall calculate the consumer price
index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(6)
(a)
For a taxable year beginning on or after January 1, 2022, the commission shall
increase annually the Utah personal exemption amount listed in Subsection
(1)(g)
by
a percentage equal to the percentage by which the consumer price index for the
preceding calendar year exceeds the consumer price index for calendar year 2020.
(b)
After the commission increases the Utah personal exemption amount as described in
Subsection
(6)(a)
, the commission shall round the Utah personal exemption amount
to the nearest whole dollar.
(c)
For purposes of Subsection
(6)(a)
, the commission shall calculate the consumer price
index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
Section 18. Section
59-10-1403.2
is amended to read:
59-10-1403.2
Effective
05/06/26
Applies beginning
01/01/26
. Pass-through
entity payment or withholding of tax on behalf of a pass-through entity taxpayer --
Exceptions to payment or withholding requirement -- Procedures and requirements --
Failure to pay or withhold a tax on behalf of a pass-through entity taxpayer.
(1)
(a)
Except as provided in Subsections
(1)(b)
and
(2)
, for a taxable year, a
pass-through entity shall pay or withhold a tax:
(i)
on:
(A)
the business income of the pass-through entity; and
(B)
the nonbusiness income of the pass-through entity derived from or connected
with Utah sources; and
(ii)
on behalf of a pass-through entity taxpayer.
(b)
A pass-through entity is not required to pay or withhold a tax under Subsection
(1)(a)
:
(i)
on behalf of a final pass-through entity taxpayer who is a resident individual;
(ii)
if the pass-through entity is an organization exempt from taxation under
Subsection
59-7-102(1)(a)
;
(iii)
if the pass-through entity:
(A)
is a plan under Section 401, 408, or 457, Internal Revenue Code; and
(B)
is not required to file a return under
Chapter 7, Corporate Franchise and
Income Taxes
, or this chapter;
(iv)
if the pass-through entity is a publicly traded partnership:
(A)
as defined in Section 7704(b), Internal Revenue Code;
(B)
that is classified as a partnership for federal income tax purposes; and
(C)
that files an annual information return reporting the following with respect to
each partner of the publicly traded partnership with income derived from or
connected with Utah sources that exceeds $500 in a taxable year:
(I)
the partner's name;
(II)
the partner's address;
(III)
the partner's taxpayer identification number; and
(IV)
other information required by the commission; or
(v)
on behalf of a final pass-through entity taxpayer that is a nonresident individual if
the pass-through entity pays the tax described in Subsection
(2)
.
(2)
(a)
For each taxable year that begins on or after January 1, 2022, but begins on or
before December 31, 2025, a
A
pass-through entity that is not a disregarded
pass-through entity may elect to pay a tax in an amount equal to the product of:
(i)
the percentage listed in Subsection
59-10-104(2)
; and
(ii)
voluntary taxable income.
(b)
A pass-through entity that elects to pay the tax in accordance with Subsection
(2)(a)

shall notify any final pass-through entity taxpayer of that election.
(c)
A pass-through entity that pays a tax described in Subsection
(2)(a)
shall provide to
each final pass-through entity taxpayer a statement that states:
(i)
the amount of tax paid under Subsection
(2)(a)
on the income attributed to the
final pass-through entity taxpayer; and
(ii)
the amount of tax paid to another state by the pass-through entity on income:
(A)
attributed to the final pass-through entity taxpayer; and
(B)
that the commission determines is substantially similar to the tax under
Subsection
(2)(a)
.
(d)
A payment of the tax described in Subsection
(2)(a)
on or before the last day of the
taxable year:
(i)
is an irrevocable election to be subject to the tax for the taxable year; and
(ii)
may not be refunded.
(3)
(a)
Subject to Subsection
(3)(b)
, the tax a pass-through entity shall pay or withhold on
behalf of a pass-through entity taxpayer for a taxable year is an amount:
(i)
determined by the commission by rule made in accordance with
Title 63G,
Chapter 3, Utah Administrative Rulemaking Act
; and
(ii)
that the commission estimates will be sufficient to pay the tax liability of the
pass-through entity taxpayer under this chapter with respect to the income
described in Subsection
(1)(a)(i)
or
(2)(a)(ii)
of that pass-through entity for the
taxable year.
(b)
The rules the commission makes in accordance with Subsection
(3)(a)
:
(i)
except as provided in Subsection
(3)(c)
:
(A)
shall:
(I)
for a pass-through entity except for a pass-through entity that is an S
corporation, take into account items of income, gain, loss, deduction, and
credit as analyzed on the schedule for reporting partners' distributive share
items as part of the federal income tax return for the pass-through entity; or
(II)
for a pass-through entity that is an S corporation, take into account items of
income, gain, loss, deduction, and credit as reconciled on the schedule for
reporting shareholders' pro rata share items as part of the federal income tax
return for the pass-through entity; and
(B)
notwithstanding Subsection
(3)(b)(ii)(D)
, take into account the refundable tax
credit provided in Section
59-6-102
; and
(ii)
may not take into account the following items if taking those items into account
does not result in an accurate estimate of a pass-through entity taxpayer's tax
liability under this chapter for the taxable year:
(A)
a capital loss;
(B)
a passive loss;
(C)
another item of deduction or loss if that item of deduction or loss is generally
subject to significant reduction or limitation in calculating:
(I)
for a pass-through entity taxpayer that is classified as a C corporation for
federal income tax purposes, unadjusted income as defined in Section
59-7-101
;
(II)
for a pass-through entity that is classified as an individual, partnership, or S
corporation for federal income tax purposes, adjusted gross income; or
(III)
for a pass-through entity that is classified as an estate or a trust for federal
income tax purposes, unadjusted income as defined in Section
59-10-103
; or
(D)
a tax credit allowed against a tax imposed under:
(I)
Chapter 7, Corporate Franchise and Income Taxes
; or
(II)
this chapter.
(c)
The rules the commission makes in accordance with Subsection
(3)(a)
may establish
a method for taking into account items of income, gain, loss, deduction, or credit of a
pass-through entity if:
(i)
for a pass-through entity except for a pass-through entity that is an S corporation,
the pass-through entity does not analyze the items of income, gain, loss,
deduction, or credit on the schedule for reporting partners' distributive share items
as part of the federal income tax return for the pass-through entity; or
(ii)
for a pass-through entity that is an S corporation, the pass-through entity does not
reconcile the items of income, gain, loss, deduction, or credit on the schedule for
reporting shareholders' pro rata share items as part of the federal income tax return
for the pass-through entity.
(4)
(a)
Except as provided in Subsection
(4)(b)
, a pass-through entity shall remit to the
commission the tax the pass-through entity pays or withholds on behalf of a
pass-through entity taxpayer under this section:
(i)
on or before the due date of the pass-through entity's return, not including
extensions; and
(ii)
on a form provided by the commission.
(b)
A pass-through entity shall remit the tax described in Subsection
(2)
on or before the
last day of the pass-through entity's taxable year.
(c)
The commission shall consider only the amount of tax remitted as provided in
Subsection
(4)(b)
, on or before the last day of the pass-through entity's taxable year
as a payment described in Subsection
(2)
.
(d)
Except as provided in Subsection
(1)(b)
, a pass-through entity that files an amended
return under this part shall pay or withhold tax on any increase in the income
described in Subsection
(1)(a)(i)
on behalf of the pass-through entity taxpayer and
remit that tax to the commission.
(5)
A pass-through entity shall provide a statement to a pass-through entity taxpayer on
behalf of whom the pass-through entity pays or withholds a tax under this section
showing the amount of tax the pass-through entity pays or withholds under this section
for the taxable year on behalf of the pass-through entity taxpayer.
(6)
Notwithstanding Section
59-1-401
or
59-1-402
, the commission may not collect an
amount under this section for a taxable year from a pass-through entity and shall waive
any penalty and interest on that amount if:
(a)
the pass-through entity fails to pay or withhold the tax on the amount as required by
this section on behalf of the pass-through entity taxpayer;
(b)
the pass-through entity taxpayer:
(i)
files a return on or before the due date for filing the pass-through entity's return,
including extensions; and
(ii)
on or before the due date including extensions described in Subsection
(6)(b)(i)
,
pays the tax on the amount for the taxable year:
(A)
if the pass-through entity taxpayer is classified as a C corporation for federal
income tax purposes, under
Chapter 7, Corporate Franchise and Income Taxes
;
or
(B)
if the pass-through entity taxpayer is classified as an estate, individual,
partnership, S corporation, or a trust for federal income tax purposes, under this
chapter; and
(c)
the pass-through entity applies to the commission.
(7)
Notwithstanding Section
59-1-401
or
59-1-402
, the commission may not collect an
amount under this section for a taxable year from a pass-through entity that is a trust and
shall waive any penalty and interest on that amount if:
(a)
the pass-through entity fails to pay or withhold the tax on the amount as required by
this section on behalf of a dependent beneficiary;
(b)
the pass-through entity applies to the commission; and
(c)
(i)
the dependent beneficiary complies with the requirements of Subsection
(6)(b)
;
or
(ii)
(A)
the dependent beneficiary's adjusted gross income for the taxable year does
not exceed the basic standard deduction for the dependent beneficiary, as
calculated under Section 63, Internal Revenue Code, for that taxable year; and
(B)
the trustee of the trust retains a statement of dependent beneficiary income on
behalf of the dependent beneficiary.
(8)
If a pass-through entity would have otherwise qualified for a waiver of a penalty and
interest under Subsection
(7)
, except that the trustee of a trust has not applied to the
commission as required by Subsection
(7)(b)
or retained the statement of dependent
beneficiary income required by Subsection
(7)(c)(ii)(B)
, it is a rebuttable presumption in
an audit that the pass-through entity would have otherwise qualified for the waiver of the
penalty and interest under Subsection
(7)
.
Section 19. Section
59-12-102
is amended to read:
59-12-102
Effective
07/01/26
. Definitions.
As used in this chapter:
(1)
"800 service" means a telecommunications service that:
(a)
allows a caller to dial a toll-free number without incurring a charge for the call; and
(b)
is typically marketed:
(i)
under the name 800 toll-free calling;
(ii)
under the name 855 toll-free calling;
(iii)
under the name 866 toll-free calling;
(iv)
under the name 877 toll-free calling;
(v)
under the name 888 toll-free calling; or
(vi)
under a name similar to Subsections
(1)(b)(i)
through (v) as designated by the
Federal Communications Commission.
(2)
(a)
"900 service" means an inbound toll telecommunications service that:
(i)
a subscriber purchases;
(ii)
allows a customer of the subscriber described in Subsection
(2)(a)(i)
to call in to
the subscriber's:
(A)
prerecorded announcement; or
(B)
live service; and
(iii)
is typically marketed:
(A)
under the name 900 service; or
(B)
under a name similar to Subsection
(2)(a)(iii)(A)
as designated by the Federal
Communications Commission.
(b)
"900 service" does not include a charge for:
(i)
a collection service a seller of a telecommunications service provides to a
subscriber; or
(ii)
the following a subscriber sells to the subscriber's customer:
(A)
a product; or
(B)
a service.
(3)
(a)
"Adaptive driving equipment" means mobility enhancing equipment:
(i)
to be installed in a motor vehicle; and
(ii)
regardless of who provides the equipment or parts.
(b)
"Adaptive driving equipment" includes:
(i)
a wheelchair or scooter lift;
(ii)
equipment to secure a wheelchair;
(iii)
a swivel seat;
(iv)
a hand or foot control; and
(v)
a steering aid.
(4)
(a)
"Admission or user fees" includes season passes.
(b)
"Admission or user fees" does not include:
(i)
annual membership dues to private organizations; or
(ii)
a lesson, including a lesson that involves as part of the lesson equipment or a
facility listed in Subsection
59-12-103(1)(f)
.
(5)
"Affiliate" or "affiliated person" means a person that, with respect to another person:
(a)
has an ownership interest of more than 5%, whether direct or indirect, in that other
person; or
(b)
is related to the other person because a third person, or a group of third persons who
are affiliated persons with respect to each other, holds an ownership interest of more
than 5%, whether direct or indirect, in the related persons.
(6)
"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.
(7)
"Agreement combined tax rate" means the sum of the tax rates:
(a)
listed under Subsection
(8)
; and
(b)
that are imposed within a local taxing jurisdiction.
(8)
"Agreement sales and use tax" means a tax imposed under:
(a)
Subsection
59-12-103(2)(a)(i)(A)
;
(b)
Subsection
59-12-103(2)(a)(i)(B)
;
(c)
Subsection
59-12-103(2)(b)(i)
;
(d)
Subsection
59-12-103(2)(c)(i)
;
(e)
Subsection
59-12-103(2)(d)
;
(f)
Subsection
59-12-103(2)(e)(i)(A)
;
(g)
Section
59-12-204
;
(h)
Section
59-12-401
;
(i)
Section
59-12-402
;
(j)
Section
59-12-402.1
;
(k)
Section
59-12-703
;
(l)
Section
59-12-802
;
(m)
Section
59-12-804
;
(n)
Section
59-12-1102
;
(o)
Section
59-12-1302
;
(p)
Section
59-12-1402
;
(q)
Section
59-12-1802
;
(r)
Section
59-12-2003
;
(s)
Section
59-12-2103
;
(t)
Section
59-12-2213
;
(u)
Section
59-12-2214
;
(v)
Section
59-12-2215
;
(w)
Section
59-12-2216
;
(x)
Section
59-12-2217
;
(y)
Section
59-12-2218
;
(z)
Section
59-12-2219
;
(aa)
Section
59-12-2220
; or
(bb)
Section
59-12-2402
.
(9)
"Aircraft" means the same as that term is defined in Section
72-10-102
.
(10)
"Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a)
except for:
(i)
an airline as defined in Section
59-2-102
; or
(ii)
an affiliated group, as defined in Section
59-7-101
, except that "affiliated group"
includes a corporation that is qualified to do business but is not otherwise doing
business in the state, of an airline; and
(b)
that has the workers, expertise, and facilities to perform the following, regardless of
whether the business entity performs the following in this state:
(i)
check, diagnose, overhaul, and repair:
(A)
an onboard system of a fixed wing turbine powered aircraft; and
(B)
the parts that comprise an onboard system of a fixed wing turbine powered
aircraft;
(ii)
assemble, change, dismantle, inspect, and test a fixed wing turbine powered
aircraft engine;
(iii)
perform at least the following maintenance on a fixed wing turbine powered
aircraft:
(A)
an inspection;
(B)
a repair, including a structural repair or modification;
(C)
changing landing gear; and
(D)
addressing issues related to an aging fixed wing turbine powered aircraft;
(iv)
completely remove the existing paint of a fixed wing turbine powered aircraft
and completely apply new paint to the fixed wing turbine powered aircraft; and
(v)
refurbish the interior of a fixed wing turbine powered aircraft in a manner that
results in a change in the fixed wing turbine powered aircraft's certification
requirements by the authority that certifies the fixed wing turbine powered aircraft.
(11)
"Alcoholic beverage" means a beverage that:
(a)
is suitable for human consumption; and
(b)
contains .5% or more alcohol by volume.
(12)
"Alternative energy" means:
(a)
biomass energy;
(b)
geothermal energy;
(c)
hydroelectric energy;
(d)
solar energy;
(e)
wind energy; or
(f)
energy that is derived from:
(i)
coal-to-liquids;
(ii)
nuclear fuel;
(iii)
oil-impregnated diatomaceous earth;
(iv)
oil sands;
(v)
oil shale;
(vi)
petroleum coke; or
(vii)
waste heat from:
(A)
an industrial facility; or
(B)
a power station in which an electric generator is driven through a process in
which water is heated, turns into steam, and spins a steam turbine.
(13)
(a)
Subject to Subsection
(13)(b)
, "alternative energy electricity production facility"
means a facility that:
(i)
uses alternative energy to produce electricity; and
(ii)
has a production capacity of two megawatts or greater.
(b)
A facility is an alternative energy electricity production facility regardless of whether
the facility is:
(i)
connected to an electric grid; or
(ii)
located on the premises of an electricity consumer.
(14)
(a)
"Ancillary service" means a service associated with, or incidental to, the
provision of telecommunications service.
(b)
"Ancillary service" includes:
(i)
a conference bridging service;
(ii)
a detailed communications billing service;
(iii)
directory assistance;
(iv)
a vertical service; or
(v)
a voice mail service.
(15)
"Area agency on aging" means the same as that term is defined in Section
26B-6-101
.
(16)
"Assisted amusement device" means an amusement device, skill device, or ride device
that is started and stopped by an individual:
(a)
who is not the purchaser or renter of the right to use or operate the amusement
device, skill device, or ride device; and
(b)
at the direction of the seller of the right to use the amusement device, skill device, or
ride device.
(17)
"Assisted cleaning or washing of tangible personal property" means cleaning or
washing of tangible personal property if the cleaning or washing labor is primarily
performed by an individual:
(a)
who is not the purchaser of the cleaning or washing of the tangible personal property;
and
(b)
at the direction of the seller of the cleaning or washing of the tangible personal
property.
(18)
"Authorized carrier" means:
(a)
in the case of vehicles operated over public highways, the holder of credentials
indicating that the vehicle is or will be operated pursuant to both the International
Registration Plan and the International Fuel Tax Agreement;
(b)
in the case of aircraft, the holder of a Federal Aviation Administration operating
certificate or air carrier's operating certificate; or
(c)
in the case of locomotives, freight cars, railroad work equipment, or other rolling
stock, a person who uses locomotives, freight cars, railroad work equipment, or other
rolling stock in more than one state.
(19)
(a)
"Biomass energy" means any of the following that is used as the primary source
of energy to produce fuel or electricity:
(i)
material from a plant or tree; or
(ii)
other organic matter that is available on a renewable basis, including:
(A)
slash and brush from forests and woodlands;
(B)
animal waste;
(C)
waste vegetable oil;
(D)
methane or synthetic gas produced at a landfill, as a byproduct of the
treatment of wastewater residuals, or through the conversion of a waste
material through a nonincineration, thermal conversion process;
(E)
aquatic plants; and
(F)
agricultural products.
(b)
"Biomass energy" does not include:
(i)
black liquor; or
(ii)
treated woods.
(20)
(a)
"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.
(b)
"Bundled transaction" does not include:
(i)
the sale of tangible personal property if the sales price varies, or is negotiable, on
the basis of the selection by the purchaser of the items of tangible personal
property included in the transaction;
(ii)
the sale of real property;
(iii)
the sale of services to real property;
(iv)
the retail sale of tangible personal property and a service if:
(A)
the tangible personal property:
(I)
is essential to the use of the service; and
(II)
is provided exclusively in connection with the service; and
(B)
the service is the true object of the transaction;
(v)
the retail sale of two services if:
(A)
one service is provided that is essential to the use or receipt of a second
service;
(B)
the first service is provided exclusively in connection with the second service;
and
(C)
the second service is the true object of the transaction;
(vi)
a transaction that includes tangible personal property or a product subject to
taxation under this chapter and tangible personal property or a product that is not
subject to taxation under this chapter if the:
(A)
seller's purchase price of the tangible personal property or product subject to
taxation under this chapter is de minimis; or
(B)
seller's sales price of the tangible personal property or product subject to
taxation under this chapter is de minimis; and
(vii)
the retail sale of tangible personal property that is not subject to taxation under
this chapter and tangible personal property that is subject to taxation under this
chapter if:
(A)
that retail sale includes:
(I)
food and food ingredients;
(II)
a drug;
(III)
durable medical equipment;
(IV)
mobility enhancing equipment;
(V)
an over-the-counter drug;
(VI)
a prosthetic device; or
(VII)
a medical supply; and
(B)
subject to Subsection
(20)(f)
:
(I)
the seller's purchase price of the tangible personal property subject to
taxation under this chapter is 50% or less of the seller's total purchase price
of that retail sale; or
(II)
the seller's sales price of the tangible personal property subject to taxation
under this chapter is 50% or less of the seller's total sales price of that retail
sale.
(c)
(i)
For purposes of Subsection
(20)(a)(i)
, tangible personal property, a product, or
a service that is distinct and identifiable does not include:
(A)
packaging that:
(I)
accompanies the sale of the tangible personal property, product, or service;
and
(II)
is incidental or immaterial to the sale of the tangible personal property,
product, or service;
(B)
tangible personal property, a product, or a service provided free of charge with
the purchase of another item of tangible personal property, a product, or a
service; or
(C)
an item of tangible personal property, a product, or a service included in the
definition of "purchase price."
(ii)
For purposes of Subsection
(20)(c)(i)(B)
, an item of tangible personal property, a
product, or a service is provided free of charge with the purchase of another item
of tangible personal property, a product, or a service if the sales price of the
purchased item of tangible personal property, product, or service does not vary
depending on the inclusion of the tangible personal property, product, or service
provided free of charge.
(d)
(i)
For purposes of Subsection
(20)(a)(ii)
, property sold for one nonitemized price
does not include a price that is separately identified by tangible personal property,
product, or service on the following, regardless of whether the following is in
paper format or electronic format:
(A)
a binding sales document; or
(B)
another supporting sales-related document that is available to a purchaser.
(ii)
For purposes of Subsection
(20)(d)(i)
, a binding sales document or another
supporting sales-related document that is available to a purchaser includes:
(A)
a bill of sale;
(B)
a contract;
(C)
an invoice;
(D)
a lease agreement;
(E)
a periodic notice of rates and services;
(F)
a price list;
(G)
a rate card;
(H)
a receipt; or
(I)
a service agreement.
(e)
(i)
For purposes of Subsection
(20)(b)(vi)
, the sales price of tangible personal
property or a product subject to taxation under this chapter is de minimis if:
(A)
the seller's purchase price of the tangible personal property or product is 10%
or less of the seller's total purchase price of the bundled transaction; or
(B)
the seller's sales price of the tangible personal property or product is 10% or
less of the seller's total sales price of the bundled transaction.
(ii)
For purposes of Subsection
(20)(b)(vi)
, a seller:
(A)
shall use the seller's purchase price or the seller's sales price to determine if
the purchase price or sales price of the tangible personal property or product
subject to taxation under this chapter is de minimis; and
(B)
may not use a combination of the seller's purchase price and the seller's sales
price to determine if the purchase price or sales price of the tangible personal
property or product subject to taxation under this chapter is de minimis.
(iii)
For purposes of Subsection
(20)(b)(vi)
, a seller shall use the full term of a service
contract to determine if the sales price of tangible personal property or a product is
de minimis.
(f)
For purposes of Subsection
(20)(b)(vii)(B)
, a seller may not use a combination of the
seller's purchase price and the seller's sales price to determine if tangible personal
property subject to taxation under this chapter is 50% or less of the seller's total
purchase price or sales price of that retail sale.
(21)
"Car sharing" means the same as that term is defined in Section
13-48a-101
.
(22)
"Car-sharing program" means the same as that term is defined in Section
13-48a-101
.
(23)
"Certified automated system" means software certified by the governing board of the
agreement that:
(a)
calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
(i)
on a transaction; and
(ii)
in the states that are members of the agreement;
(b)
determines the amount of agreement sales and use tax to remit to a state that is a
member of the agreement; and
(c)
maintains a record of the transaction described in Subsection
(23)(a)(i)
.
(24)
"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.
(25)
(a)
Subject to Subsection
(25)(b)
, "clothing" means all human wearing apparel
suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "clothing"; and
(ii)
that are consistent with the list of items that constitute "clothing" under the
agreement.
(26)
"Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(27)
"Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
that does not constitute industrial use under Subsection
(61)
or residential use under
Subsection
(117)
.
(28)
(a)
"Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this
state.
(b)
(i)
"Common carrier" does not include a person that, at the time the person is
traveling to or from that person's place of employment, transports a passenger to
or from the passenger's place of employment.
(ii)
For purposes of Subsection
(28)(b)(i)
, in accordance with Title
63G, Chapter 3
,
Utah Administrative Rulemaking Act, the commission may make rules defining
what constitutes a person's place of employment.
(c)
"Common carrier" does not include a person that provides transportation network
services, as defined in Section
13-51-102
.
(29)
"Component part" includes:
(a)
poultry, dairy, and other livestock feed, and their components;
(b)
baling ties and twine used in the baling of hay and straw;
(c)
fuel used for providing temperature control of orchards and commercial greenhouses
doing a majority of their business in wholesale sales, and for providing power for
off-highway type farm machinery; and
(d)
feed, seeds, and seedlings.
(30)
"Computer" means an electronic device that accepts information:
(a)
(i)
in digital form; or
(ii)
in a form similar to digital form; and
(b)
manipulates that information for a result based on a sequence of instructions.
(31)
"Computer software" means a set of coded instructions designed to cause:
(a)
a computer to perform a task; or
(b)
automatic data processing equipment to perform a task.
(32)
"Computer software maintenance contract" means a contract that obligates a seller of
computer software to provide a customer with:
(a)
future updates or upgrades to computer software;
(b)
support services with respect to computer software; or
(c)
a combination of Subsections
(32)(a)
and (b).
(33)
(a)
"Conference bridging service" means an ancillary service that links two or more
participants of an audio conference call or video conference call.
(b)
"Conference bridging service" may include providing a telephone number as part of
the ancillary service described in Subsection
(33)(a)
.
(c)
"Conference bridging service" does not include a telecommunications service used to
reach the ancillary service described in Subsection
(33)(a)
.
(34)
"Construction materials" means any tangible personal property that will be converted
into real property.
(35)
"Delivered electronically" means delivered to a purchaser by means other than tangible
storage media.
(36)
(a)
"Delivery charge" means a charge:
(i)
by a seller of:
(A)
tangible personal property;
(B)
a product transferred electronically; or
(C)
a service; and
(ii)
for preparation and delivery of the tangible personal property, product transferred
electronically, or services described in Subsection
(36)(a)(i)
to a location
designated by the purchaser.
(b)
"Delivery charge" includes a charge for the following:
(i)
transportation;
(ii)
shipping;
(iii)
postage;
(iv)
handling;
(v)
crating; or
(vi)
packing.
(37)
"Detailed telecommunications billing service" means an ancillary service of separately
stating information pertaining to individual calls on a customer's billing statement.
(38)
"Dietary supplement" means a product, other than tobacco, that:
(a)
is intended to supplement the diet;
(b)
contains one or more of the following dietary ingredients:
(i)
a vitamin;
(ii)
a mineral;
(iii)
an herb or other botanical;
(iv)
an amino acid;
(v)
a dietary substance for use by humans to supplement the diet by increasing the
total dietary intake; or
(vi)
a concentrate, metabolite, constituent, extract, or combination of any ingredient
described in Subsections
(38)(b)(i)
through (v);
(c)
(i)
except as provided in Subsection
(38)(c)(ii)
, is intended for ingestion in:
(A)
tablet form;
(B)
capsule form;
(C)
powder form;
(D)
softgel form;
(E)
gelcap form; or
(F)
liquid form; or
(ii)
if the product is not intended for ingestion in a form described in Subsections
(38)(c)(i)(A)
through (F), is not represented:
(A)
as conventional food; and
(B)
for use as a sole item of:
(I)
a meal; or
(II)
the diet; and
(d)
is required to be labeled as a dietary supplement:
(i)
identifiable by the "Supplemental Facts" box found on the label; and
(ii)
as required by 21 C.F.R. Sec. 101.36.
(39)
(a)
"Digital audio work" means a work that results from the fixation of a series of
musical, spoken, or other sounds.
(b)
"Digital audio work" includes a ringtone.
(40)
"Digital audio-visual work" means a series of related images which, when shown in
succession, imparts an impression of motion, together with accompanying sounds, if any.
(41)
"Digital book" means a work that is generally recognized in the ordinary and usual
sense as a book.
(42)
(a)
"Direct mail" means printed material delivered or distributed by United States
mail or other delivery service:
(i)
to:
(A)
a mass audience; or
(B)
addressees on a mailing list provided:
(I)
by a purchaser of the mailing list; or
(II)
at the discretion of the purchaser of the mailing list; and
(ii)
if the cost of the printed material is not billed directly to the recipients.
(b)
"Direct mail" includes tangible personal property supplied directly or indirectly by a
purchaser to a seller of direct mail for inclusion in a package containing the printed
material.
(c)
"Direct mail" does not include multiple items of printed material delivered to a single
address.
(43)
"Directory assistance" means an ancillary service of providing:
(a)
address information; or
(b)
telephone number information.
(44)
(a)
"Disposable home medical equipment or supplies" means medical equipment or
supplies that:
(i)
cannot withstand repeated use; and
(ii)
are purchased by, for, or on behalf of a person other than:
(A)
a health care facility as defined in Section
26B-2-201
;
(B)
a health care provider as defined in Section
78B-3-403
;
(C)
an office of a health care provider described in Subsection
(44)(a)(ii)(B)
; or
(D)
a person similar to a person described in Subsections
(44)(a)(ii)(A)
through
(C).
(b)
"Disposable home medical equipment or supplies" does not include:
(i)
a drug;
(ii)
durable medical equipment;
(iii)
a hearing aid;
(iv)
a hearing aid accessory;
(v)
mobility enhancing equipment; or
(vi)
tangible personal property used to correct impaired vision, including:
(A)
eyeglasses; or
(B)
contact lenses.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes medical equipment or supplies.
(45)
"Drilling equipment manufacturer" means a facility:
(a)
located in the state;
(b)
with respect to which 51% or more of the manufacturing activities of the facility
consist of manufacturing component parts of drilling equipment;
(c)
that uses pressure of 800,000 or more pounds per square inch as part of the
manufacturing process; and
(d)
that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
manufacturing process.
(46)
(a)
"Drug" means a compound, substance, or preparation, or a component of a
compound, substance, or preparation that is:
(i)
recognized in:
(A)
the official United States Pharmacopoeia;
(B)
the official Homeopathic Pharmacopoeia of the United States;
(C)
the official National Formulary; or
(D)
a supplement to a publication listed in Subsections
(46)(a)(i)(A)
through (C);
(ii)
intended for use in the:
(A)
diagnosis of disease;
(B)
cure of disease;
(C)
mitigation of disease;
(D)
treatment of disease; or
(E)
prevention of disease; or
(iii)
intended to affect:
(A)
the structure of the body; or
(B)
any function of the body.
(b)
"Drug" does not include:
(i)
food and food ingredients;
(ii)
a dietary supplement;
(iii)
an alcoholic beverage; or
(iv)
a prosthetic device.
(47)
(a)
"Durable medical equipment" means equipment that:
(i)
can withstand repeated use;
(ii)
is primarily and customarily used to serve a medical purpose;
(iii)
generally is not useful to a person in the absence of illness or injury; and
(iv)
is not worn in or on the body.
(b)
"Durable medical equipment" includes parts used in the repair or replacement of the
equipment described in Subsection
(47)(a)
.
(c)
"Durable medical equipment" does not include mobility enhancing equipment.
(48)
"Electronic" means:
(a)
relating to technology; and
(b)
having:
(i)
electrical capabilities;
(ii)
digital capabilities;
(iii)
magnetic capabilities;
(iv)
wireless capabilities;
(v)
optical capabilities;
(vi)
electromagnetic capabilities; or
(vii)
capabilities similar to Subsections
(48)(b)(i)
through (vi).
(49)
"Electronic financial payment service" means an establishment:
(a)
within NAICS Code 522320, Financial Transactions Processing, Reserve, and
Clearinghouse Activities, of the 2012 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and Budget;
and
(b)
that performs electronic financial payment services.
(50)
"Employee" means the same as that term is defined in Section
59-10-401
.
(51)
"Fixed guideway" means a public transit facility that uses and occupies:
(a)
rail for the use of public transit; or
(b)
a separate right-of-way for the use of public transit.
(52)
"Fixed wing turbine powered aircraft" means an aircraft that:
(a)
is powered by turbine engines;
(b)
operates on jet fuel; and
(c)
has wings that are permanently attached to the fuselage of the aircraft.
(53)
"Fixed wireless service" means a telecommunications service that provides radio
communication between fixed points.
(54)
(a)
"Food and food ingredients" means substances:
(i)
regardless of whether the substances are in:
(A)
liquid form;
(B)
concentrated form;
(C)
solid form;
(D)
frozen form;
(E)
dried form; or
(F)
dehydrated form; and
(ii)
that are:
(A)
sold for:
(I)
ingestion by humans; or
(II)
chewing by humans; and
(B)
consumed for the substance's:
(I)
taste; or
(II)
nutritional value.
(b)
"Food and food ingredients" includes an item described in Subsection
(100)(b)(iii)
.
(c)
"Food and food ingredients" does not include:
(i)
an alcoholic beverage;
(ii)
tobacco; or
(iii)
prepared food.
(55)
(a)
"Fundraising sales" means sales:
(i)
(A)
made by a school; or
(B)
made by a school student;
(ii)
that are for the purpose of raising funds for the school to purchase equipment,
materials, or provide transportation; and
(iii)
that are part of an officially sanctioned school activity.
(b)
For purposes of Subsection
(55)(a)(iii)
, "officially sanctioned school activity" means
a school activity:
(i)
that is conducted in accordance with a formal policy adopted by the school or
school district governing the authorization and supervision of fundraising
activities;
(ii)
that does not directly or indirectly compensate an individual teacher or other
educational personnel by direct payment, commissions, or payment in kind; and
(iii)
the net or gross revenue from which is deposited in a dedicated account
controlled by the school or school district.
(56)
"Geothermal energy" means energy contained in heat that continuously flows outward
from the earth that is used as the sole source of energy to produce electricity.
(57)
"Governing board of the agreement" means the governing board of the agreement that
is:
(a)
authorized to administer the agreement; and
(b)
established in accordance with the agreement.
(58)
(a)
For purposes of Subsection
59-12-104(41)
, "governmental entity" means:
(i)
the executive branch of the state, including all departments, institutions, boards,
divisions, bureaus, offices, commissions, and committees;
(ii)
the judicial branch of the state, including the courts, the Judicial Council, the
Administrative Office of the Courts, and similar administrative units in the
judicial branch;
(iii)
the legislative branch of the state, including the House of Representatives, the
Senate, Legislative Services, the Office of Legislative Research and General
Counsel, the Office of the Legislative Auditor General, and the Office of the
Legislative Fiscal Analyst;
(iv)
the National Guard;
(v)
an independent entity as defined in Section
63E-1-102
; or
(vi)
a political subdivision as defined in Section
17B-1-102
.
(b)
"Governmental entity" does not include the state systems of public and higher
education, including:
(i)
a school;
(ii)
the State Board of Education;
(iii)
the Utah Board of Higher Education; or
(iv)
an institution of higher education listed in Section
53H-1-102
.
(59)
"Hydroelectric energy" means water used as the sole source of energy to produce
electricity.
(60)
"Individual-owned shared vehicle" means the same as that term is defined in Section
13-48a-101
.
(61)
"Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
fuels:
(a)
in mining or extraction of minerals;
(b)
in agricultural operations to produce an agricultural product up to the time of harvest
or placing the agricultural product into a storage facility, including:
(i)
commercial greenhouses;
(ii)
irrigation pumps;
(iii)
farm machinery;
(iv)
implements of husbandry as defined in Section
41-1a-102
that are not registered
under Title
41, Chapter 1a, Part 2
, Registration; and
(v)
other farming activities;
(c)
in manufacturing tangible personal property at an establishment described in:
(i)
SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget;
or
(ii)
a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(d)
by a scrap recycler if:
(i)
from a fixed location, the scrap recycler utilizes machinery or equipment to
process one or more of the following items into prepared grades of processed
materials for use in new products:
(A)
iron;
(B)
steel;
(C)
nonferrous metal;
(D)
paper;
(E)
glass;
(F)
plastic;
(G)
textile; or
(H)
rubber; and
(ii)
the new products under Subsection
(61)(d)(i)
would otherwise be made with
nonrecycled materials; or
(e)
in producing a form of energy or steam described in Subsection
54-2-1(3)(a)
by a
cogeneration facility as defined in Section
54-2-1
.
(62)
(a)
"Installation charge" means a charge for installing:
(i)
tangible personal property; or
(ii)
a product transferred electronically.
(b)
"Installation charge" does not include a charge for:
(i)
repairs or renovations of:
(A)
tangible personal property; or
(B)
a product transferred electronically; or
(ii)
attaching tangible personal property or a product transferred electronically:
(A)
to other tangible personal property; and
(B)
as part of a manufacturing or fabrication process.
(63)
"Institution of higher education" means an institution of higher education listed in
Section
53H-1-102
.
(64)
(a)
"Lease" or "rental" means a transfer of possession or control of tangible personal
property or a product transferred electronically for:
(i)
(A)
a fixed term; or
(B)
an indeterminate term; and
(ii)
consideration.
(b)
"Lease" or "rental" includes:
(i)
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; and
(ii)
car sharing.
(c)
"Lease" or "rental" does not include:
(i)
a transfer of possession or control of property under a security agreement or
deferred payment plan that requires the transfer of title upon completion of the
required payments;
(ii)
a transfer of possession or control of property under an agreement that requires
the transfer of title:
(A)
upon completion of required payments; and
(B)
if the payment of an option price does not exceed the greater of:
(I)
$100; or
(II)
1% of the total required payments; or
(iii)
providing tangible personal property along with an operator for a fixed period of
time or an indeterminate period of time if the operator is necessary for equipment
to perform as designed.
(d)
For purposes of Subsection
(64)(c)(iii)
, an operator is necessary for equipment to
perform as designed if the operator's duties exceed the:
(i)
set-up of tangible personal property;
(ii)
maintenance of tangible personal property; or
(iii)
inspection of tangible personal property.
(65)
"Lesson" means a fixed period of time for the duration of which a trained instructor:
(a)
is present with a student in person or by video; and
(b)
actively instructs the student, including by providing observation or feedback.
(66)
"Life science establishment" means an establishment in this state that is classified
under the following NAICS codes of the 2007 North American Industry Classification
System of the federal Executive Office of the President, Office of Management and
Budget:
(a)
NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
(b)
NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
Manufacturing; or
(c)
NAICS Code 334517, Irradiation Apparatus Manufacturing.
(67)
"Life science research and development facility" means a facility owned, leased, or
rented by a life science establishment if research and development is performed in 51%
or more of the total area of the facility.
(68)
"Load and leave" means delivery to a purchaser by use of a tangible storage media if
the tangible storage media is not physically transferred to the purchaser.
(69)
"Local taxing jurisdiction" means a:
(a)
county that is authorized to impose an agreement sales and use tax;
(b)
city that is authorized to impose an agreement sales and use tax; or
(c)
town that is authorized to impose an agreement sales and use tax.
(70)
"Manufactured home" means the same as that term is defined in Section
15A-1-302
.
(71)
"Manufacturing facility" means:
(a)
an establishment described in:
(i)
SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget;
or
(ii)
a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(b)
a scrap recycler if:
(i)
from a fixed location, the scrap recycler utilizes machinery or equipment to
process one or more of the following items into prepared grades of processed
materials for use in new products:
(A)
iron;
(B)
steel;
(C)
nonferrous metal;
(D)
paper;
(E)
glass;
(F)
plastic;
(G)
textile; or
(H)
rubber; and
(ii)
the new products under Subsection
(71)(b)(i)
would otherwise be made with
nonrecycled materials; or
(c)
a cogeneration facility as defined in Section
54-2-1
if the cogeneration facility is
placed in service on or after May 1, 2006.
(72)
(a)
"Marketplace" means a physical or electronic place, platform, or forum where
tangible personal property, a product transferred electronically, or a service is offered
for sale.
(b)
"Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
sales software application.
(73)
(a)
"Marketplace facilitator" means a person, including an affiliate of the person,
that enters into a contract, an agreement, or otherwise with sellers, for consideration,
to facilitate the sale of a seller's product through a marketplace that the person owns,
operates, or controls and that directly or indirectly:
(i)
does any of the following:
(A)
lists, makes available, or advertises tangible personal property, a product
transferred electronically, or a service for sale by a marketplace seller on a
marketplace that the person owns, operates, or controls;
(B)
facilitates the sale of a marketplace seller's tangible personal property, product
transferred electronically, or service by transmitting or otherwise
communicating an offer or acceptance of a retail sale between the marketplace
seller and a purchaser using the marketplace;
(C)
owns, rents, licenses, makes available, or operates any electronic or physical
infrastructure or any property, process, method, copyright, trademark, or patent
that connects a marketplace seller to a purchaser for the purpose of making a
retail sale of tangible personal property, a product transferred electronically, or
a service;
(D)
provides a marketplace for making, or otherwise facilitates, a retail sale of
tangible personal property, a product transferred electronically, or a service,
regardless of ownership or control of the tangible personal property, the
product transferred electronically, or the service that is the subject of the retail
sale;
(E)
provides software development or research and development activities related
to any activity described in this Subsection
(73)(a)(i)
, if the software
development or research and development activity is directly related to the
person's marketplace;
(F)
provides or offers fulfillment or storage services for a marketplace seller;
(G)
sets prices for the sale of tangible personal property, a product transferred
electronically, or a service by a marketplace seller;
(H)
provides or offers customer service to a marketplace seller or a marketplace
seller's purchaser or accepts or assists with taking orders, returns, or exchanges
of tangible personal property, a product transferred electronically, or a service
sold by a marketplace seller on the person's marketplace; or
(I)
brands or otherwise identifies sales as those of the person; and
(ii)
does any of the following:
(A)
collects the sales price or purchase price of a retail sale of tangible personal
property, a product transferred electronically, or a service;
(B)
provides payment processing services for a retail sale of tangible personal
property, a product transferred electronically, or a service;
(C)
charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
closing fee, a fee for inserting or making available tangible personal property, a
product transferred electronically, or a service on the person's marketplace, or
other consideration for the facilitation of a retail sale of tangible personal
property, a product transferred electronically, or a service, regardless of
ownership or control of the tangible personal property, the product transferred
electronically, or the service that is the subject of the retail sale;
(D)
through terms and conditions, an agreement, or another arrangement with a
third person, collects payment from a purchase for a retail sale of tangible
personal property, a product transferred electronically, or a service and
transmits that payment to the marketplace seller, regardless of whether the
third person receives compensation or other consideration in exchange for the
service; or
(E)
provides a virtual currency for a purchaser to use to purchase tangible personal
property, a product transferred electronically, or service offered for sale.
(b)
"Marketplace facilitator" does not include:
(i)
a person that only provides payment processing services; or
(ii)
a person described in Subsection
(73)(a)
to the extent the person is facilitating a
sale for a seller that is a restaurant as defined in Section
59-12-602
.
(74)
"Marketplace seller" means a seller that makes one or more retail sales through a
marketplace that a marketplace facilitator owns, operates, or controls, regardless of
whether the seller is required to be registered to collect and remit the tax under this part.
(75)
"Member of the immediate family of the producer" means a person who is related to a
producer described in Subsection
59-12-104(20)(a)
as a:
(a)
child or stepchild, regardless of whether the child or stepchild is:
(i)
an adopted child or adopted stepchild; or
(ii)
a foster child or foster stepchild;
(b)
grandchild or stepgrandchild;
(c)
grandparent or stepgrandparent;
(d)
nephew or stepnephew;
(e)
niece or stepniece;
(f)
parent or stepparent;
(g)
sibling or stepsibling;
(h)
spouse;
(i)
person who is the spouse of a person described in Subsections
(75)(a)
through (g); or
(j)
person similar to a person described in Subsections
(75)(a)
through (i) as determined
by the commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(76)
"Mobile home" means the same as that term is defined in Section
15A-1-302
.
(77)
"Mobile telecommunications service" means the same as that term is defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(78)
(a)
"Mobile wireless service" means a telecommunications service, regardless of the
technology used, if:
(i)
the origination point of the conveyance, routing, or transmission is not fixed;
(ii)
the termination point of the conveyance, routing, or transmission is not fixed; or
(iii)
the origination point described in Subsection
(78)(a)(i)
and the termination point
described in Subsection
(78)(a)(ii)
are not fixed.
(b)
"Mobile wireless service" includes a telecommunications service that is provided by
a commercial mobile radio service provider.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define "commercial mobile radio service provider."
(79)
(a)
"Mobility enhancing equipment" means equipment that is:
(i)
primarily and customarily used to provide or increase the ability to move from one
place to another;
(ii)
appropriate for use in a:
(A)
home; or
(B)
motor vehicle; and
(iii)
not generally used by persons with normal mobility.
(b)
"Mobility enhancing equipment" includes parts used in the repair or replacement of
the equipment described in Subsection
(79)(a)
.
(c)
"Mobility enhancing equipment" does not include:
(i)
a motor vehicle;
(ii)
equipment on a motor vehicle if that equipment is normally provided by the
motor vehicle manufacturer;
(iii)
durable medical equipment; or
(iv)
a prosthetic device.
(80)
"Model 1 seller" means a seller registered under the agreement that has selected a
certified service provider as the seller's agent to perform the seller's sales and use tax
functions for agreement sales and use taxes, 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.
(81)
"Model 2 seller" means a seller registered under the agreement that:
(a)
except as provided in Subsection
(81)(b)
, has selected a certified automated system
to perform the seller's sales tax functions for agreement sales and use taxes; and
(b)
retains responsibility for remitting all of the sales tax:
(i)
collected by the seller; and
(ii)
to the appropriate local taxing jurisdiction.
(82)
(a)
Subject to Subsection
(82)(b)
, "model 3 seller" means a seller registered under
the agreement that has:
(i)
sales in at least five states that are members of the agreement;
(ii)
total annual sales revenue of at least $500,000,000;
(iii)
a proprietary system that calculates the amount of tax:
(A)
for an agreement sales and use tax; and
(B)
due to each local taxing jurisdiction; and
(iv)
entered into a performance agreement with the governing board of the agreement.
(b)
For purposes of Subsection
(82)(a)
, "model 3 seller" includes an affiliated group of
sellers using the same proprietary system.
(83)
"Model 4 seller" means a seller that is registered under the agreement and is not a
model 1 seller, model 2 seller, or model 3 seller.
(84)
"Modular home" means a modular unit as defined in Section
15A-1-302
.
(85)
"Motor vehicle" means the same as that term is defined in Section
41-1a-102
.
(86)
"Oil sands" means impregnated bituminous sands that:
(a)
contain a heavy, thick form of petroleum that is released when heated, mixed with
other hydrocarbons, or otherwise treated;
(b)
yield mixtures of liquid hydrocarbon; and
(c)
require further processing other than mechanical blending before becoming finished
petroleum products.
(87)
"Oil shale" means a group of fine black to dark brown shales containing kerogen
material that yields petroleum upon heating and distillation.
(88)
"Optional computer software maintenance contract" means a computer software
maintenance contract that a customer is not obligated to purchase as a condition to the
retail sale of computer software.
(89)
(a)
"Other fuels" means products that burn independently to produce heat or energy.
(b)
"Other fuels" includes oxygen when it is used in the manufacturing of tangible
personal property.
(90)
(a)
"Paging service" means a telecommunications service that provides transmission
of a coded radio signal for the purpose of activating a specific pager.
(b)
For purposes of Subsection
(90)(a)
, the transmission of a coded radio signal includes
a transmission by message or sound.
(91)
"Pawn transaction" means the same as that term is defined in Section
13-32a-102
.
(92)
"Pawnbroker" means the same as that term is defined in Section
13-32a-102
.
(93)
(a)
"Permanently attached to real property" means that for tangible personal property
attached to real property:
(i)
the attachment of the tangible personal property to the real property:
(A)
is essential to the use of the tangible personal property; and
(B)
suggests that the tangible personal property will remain attached to the real
property in the same place over the useful life of the tangible personal
property; or
(ii)
if the tangible personal property is detached from the real property, the
detachment would:
(A)
cause substantial damage to the tangible personal property; or
(B)
require substantial alteration or repair of the real property to which the
tangible personal property is attached.
(b)
"Permanently attached to real property" includes:
(i)
the attachment of an accessory to the tangible personal property if the accessory is:
(A)
essential to the operation of the tangible personal property; and
(B)
attached only to facilitate the operation of the tangible personal property;
(ii)
a temporary detachment of tangible personal property from real property for a
repair or renovation if the repair or renovation is performed where the tangible
personal property and real property are located; or
(iii)
property attached to oil, gas, or water pipelines, except for the property listed in
Subsection
(93)(c)(iii)
or (iv).
(c)
"Permanently attached to real property" does not include:
(i)
the attachment of portable or movable tangible personal property to real property
if that portable or movable tangible personal property is attached to real property
only for:
(A)
convenience;
(B)
stability; or
(C)
for an obvious temporary purpose;
(ii)
the detachment of tangible personal property from real property except for the
detachment described in Subsection
(93)(b)(ii)
;
(iii)
an attachment of the following tangible personal property to real property if the
attachment to real property is only through a line that supplies water, electricity,
gas, telecommunications, cable, or supplies a similar item as determined by the
commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act:
(A)
a computer;
(B)
a telephone;
(C)
a television; or
(D)
tangible personal property similar to Subsections
(93)(c)(iii)(A)
through (C)
as determined by the commission by rule made in accordance with Title
63G,
Chapter 3
, Utah Administrative Rulemaking Act; or
(iv)
an item listed in Subsection
(139)(c)
.
(94)
"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.
(95)
"Place of primary use":
(a)
for telecommunications service other than mobile telecommunications service,
means the street address representative of where the customer's use of the
telecommunications service primarily occurs, which shall be:
(i)
the residential street address of the customer; or
(ii)
the primary business street address of the customer; or
(b)
for mobile telecommunications service, means the same as that term is defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(96)
(a)
"Postpaid calling service" means a telecommunications service a person obtains
by making a payment on a call-by-call basis:
(i)
through the use of a:
(A)
bank card;
(B)
credit card;
(C)
debit card; or
(D)
travel card; or
(ii)
by a charge made to a telephone number that is not associated with the origination
or termination of the telecommunications service.
(b)
"Postpaid calling service" includes a service, except for a prepaid wireless calling
service, that would be a prepaid wireless calling service if the service were
exclusively a telecommunications service.
(97)
"Postproduction" means an activity related to the finishing or duplication of a medium
described in Subsection
59-12-104(54)(a)
.
(98)
"Prepaid calling service" means a telecommunications service:
(a)
that allows a purchaser access to telecommunications service that is exclusively
telecommunications service;
(b)
that:
(i)
is paid for in advance; and
(ii)
enables the origination of a call using an:
(A)
access number; or
(B)
authorization code;
(c)
that is dialed:
(i)
manually; or
(ii)
electronically; and
(d)
sold in predetermined units or dollars that decline:
(i)
by a known amount; and
(ii)
with use.
(99)
"Prepaid wireless calling service" means a telecommunications service:
(a)
that provides the right to utilize:
(i)
mobile wireless service; and
(ii)
other service that is not a telecommunications service, including:
(A)
the download of a product transferred electronically;
(B)
a content service; or
(C)
an ancillary service;
(b)
that:
(i)
is paid for in advance; and
(ii)
enables the origination of a call using an:
(A)
access number; or
(B)
authorization code;
(c)
that is dialed:
(i)
manually; or
(ii)
electronically; and
(d)
sold in predetermined units or dollars that decline:
(i)
by a known amount; and
(ii)
with use.
(100)
(a)
"Prepared food" means:
(i)
food:
(A)
sold in a heated state; or
(B)
heated by a seller;
(ii)
two or more food ingredients mixed or combined by the seller for sale as a single
item; or
(iii)
except as provided in Subsection
(100)(c)
, food sold with an eating utensil
provided by the seller, including a:
(A)
plate;
(B)
knife;
(C)
fork;
(D)
spoon;
(E)
glass;
(F)
cup;
(G)
napkin; or
(H)
straw.
(b)
"Prepared food" does not include:
(i)
food that a seller only:
(A)
cuts;
(B)
repackages; or
(C)
pasteurizes;
(ii)
(A)
the following:
(I)
raw egg;
(II)
raw fish;
(III)
raw meat;
(IV)
raw poultry; or
(V)
a food containing an item described in Subsections
(100)(b)(ii)(A)(I)

through (IV); and
(B)
if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
the Food and Drug Administration's Food Code that a consumer cook the items
described in Subsection
(100)(b)(ii)(A)
to prevent food borne illness; or
(iii)
the following if sold without eating utensils provided by the seller:
(A)
food and food ingredients sold by a seller if the seller's proper primary
classification under the 2002 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and
Budget, is manufacturing in Sector 311, Food Manufacturing, except for
Subsector 3118, Bakeries and Tortilla Manufacturing;
(B)
food and food ingredients sold in an unheated state:
(I)
by weight or volume; and
(II)
as a single item; or
(C)
a bakery item, including:
(I)
a bagel;
(II)
a bar;
(III)
a biscuit;
(IV)
bread;
(V)
a bun;
(VI)
a cake;
(VII)
a cookie;
(VIII)
a croissant;
(IX)
a danish;
(X)
a donut;
(XI)
a muffin;
(XII)
a pastry;
(XIII)
a pie;
(XIV)
a roll;
(XV)
a tart;
(XVI)
a torte; or
(XVII)
a tortilla.
(c)
An eating utensil provided by the seller does not include the following used to
transport the food:
(i)
a container; or
(ii)
packaging.
(101)
"Prescription" means an order, formula, or recipe that is issued:
(a)
(i)
orally;
(ii)
in writing;
(iii)
electronically; or
(iv)
by any other manner of transmission; and
(b)
by a licensed practitioner authorized by the laws of a state.
(102)
(a)
"Prewritten computer software" means computer software that is not designed
and developed:
(i)
by the author or other creator of the computer software; and
(ii)
to the specifications of a specific purchaser.
(b)
"Prewritten computer software" includes:
(i)
a prewritten upgrade to computer software if the prewritten upgrade to the
computer software is not designed and developed:
(A)
by the author or other creator of the computer software; and
(B)
to the specifications of a specific purchaser;
(ii)
computer software designed and developed by the author or other creator of the
computer software to the specifications of a specific purchaser if the computer
software is sold to a person other than the purchaser; or
(iii)
except as provided in Subsection
(102)(c)
, prewritten computer software or a
prewritten portion of prewritten computer software:
(A)
that is modified or enhanced to any degree; and
(B)
if the modification or enhancement described in Subsection
(102)(b)(iii)(A)
is
designed and developed to the specifications of a specific purchaser.
(c)
"Prewritten computer software" does not include a modification or enhancement
described in Subsection
(102)(b)(iii)
if the charges for the modification or
enhancement are:
(i)
reasonable; and
(ii)
subject to Subsections
59-12-103(2)(f)(ii)
and (2)(g)(i), separately stated on the
invoice or other statement of price provided to the purchaser at the time of sale or
later, as demonstrated by:
(A)
the books and records the seller keeps at the time of the transaction in the
regular course of business, including books and records the seller keeps at the
time of the transaction in the regular course of business for nontax purposes;
(B)
a preponderance of the facts and circumstances at the time of the transaction;
and
(C)
the understanding of all of the parties to the transaction.
(103)
(a)
"Private communications service" means a telecommunications service:
(i)
that entitles a customer to exclusive or priority use of one or more
communications channels between or among termination points; and
(ii)
regardless of the manner in which the one or more communications channels are
connected.
(b)
"Private communications service" includes the following provided in connection
with the use of one or more communications channels:
(i)
an extension line;
(ii)
a station;
(iii)
switching capacity; or
(iv)
another associated service that is provided in connection with the use of one or
more communications channels as defined in Section
59-12-215
.
(104)
(a)
"Product transferred electronically" means a product transferred electronically
that would be subject to a tax under this chapter if that product was transferred in a
manner other than electronically.
(b)
"Product transferred electronically" does not include:
(i)
an ancillary service;
(ii)
computer software; or
(iii)
a telecommunications service.
(105)
(a)
"Prosthetic device" means a device that is worn on or in the body to:
(i)
artificially replace a missing portion of the body;
(ii)
prevent or correct a physical deformity or physical malfunction; or
(iii)
support a weak or deformed portion of the body.
(b)
"Prosthetic device" includes:
(i)
parts used in the repairs or renovation of a prosthetic device;
(ii)
replacement parts for a prosthetic device;
(iii)
a dental prosthesis; or
(iv)
a hearing aid.
(c)
"Prosthetic device" does not include:
(i)
corrective eyeglasses; or
(ii)
contact lenses.
(106)
(a)
"Protective equipment" means an item:
(i)
for human wear; and
(ii)
that is:
(A)
designed as protection:
(I)
to the wearer against injury or disease; or
(II)
against damage or injury of other persons or property; and
(B)
not suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "protective equipment"; and
(ii)
that are consistent with the list of items that constitute "protective equipment"
under the agreement.
(107)
(a)
For purposes of Subsection
59-12-104(41)
, "publication" means any written or
printed matter, other than a photocopy:
(i)
regardless of:
(A)
characteristics;
(B)
copyright;
(C)
form;
(D)
format;
(E)
method of reproduction; or
(F)
source; and
(ii)
made available in printed or electronic format.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define the term "photocopy."
(108)
(a)
"Purchase price" and "sales price" mean the total amount of consideration:
(i)
valued in money; and
(ii)
for which tangible personal property, a product transferred electronically, or
services are:
(A)
sold;
(B)
leased; or
(C)
rented.
(b)
"Purchase price" and "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
(108)(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.
(c)
"Purchase price" and "sales price" do not include:
(i)
a discount:
(A)
in a form including:
(I)
cash;
(II)
term; or
(III)
coupon;
(B)
that is allowed by a seller;
(C)
taken by a purchaser on a sale; and
(D)
that is not reimbursed by a third party; or
(ii)
subject to Subsections
59-12-103(2)(f)(ii)
and (2)(g)(i), the following if
separately stated on an invoice, bill of sale, or similar document provided to the
purchaser at the time of sale or later, as demonstrated by the books and records the
seller keeps at the time of the transaction in the regular course of business,
including books and records the seller keeps at the time of the transaction in the
regular course of business for nontax purposes, by a preponderance of the facts
and circumstances at the time of the transaction, and by the understanding of all of
the parties to the transaction:
(A)
the following from credit extended on the sale of tangible personal property or
services:
(I)
a carrying charge;
(II)
a financing charge; or
(III)
an interest charge;
(B)
a delivery charge;
(C)
an installation charge;
(D)
a manufacturer rebate on a motor vehicle; or
(E)
a tax or fee legally imposed directly on the consumer.
(109)
"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.
(110)
"Qualifying data center" means a data center facility that:
(a)
houses a group of networked server computers in one physical location in order to
disseminate, manage, and store data and information;
(b)
is located in the state;
(c)
is a new operation constructed on or after July 1, 2016;
(d)
consists of one or more buildings that total 150,000 or more square feet;
(e)
is owned or leased by:
(i)
the operator of the data center facility; or
(ii)
a person under common ownership, as defined in Section
59-7-101
, of the
operator of the data center facility; and
(f)
is located on one or more parcels of land that are owned or leased by:
(i)
the operator of the data center facility; or
(ii)
a person under common ownership, as defined in Section
59-7-101
, of the
operator of the data center facility.
(111)
"Qualifying energy storage manufacturing facility" means a facility that
manufactures, in the state, equipment or devices that store and discharge energy for the
purpose of providing electrical power.
(112)
"Regularly rented" means:
(a)
rented to a guest for value three or more times during a calendar year; or
(b)
advertised or held out to the public as a place that is regularly rented to guests for
value.
(113)
"Rental" means the same as that term is defined in Subsection
(64)
.
(114)
(a)
"Repairs or renovations of tangible personal property" means:
(i)
a repair or renovation of tangible personal property that is not permanently
attached to real property; or
(ii)
attaching tangible personal property or a product transferred electronically to
other tangible personal property or detaching tangible personal property or a
product transferred electronically from other tangible personal property if:
(A)
the other tangible personal property to which the tangible personal property or
product transferred electronically is attached or from which the tangible
personal property or product transferred electronically is detached is not
permanently attached to real property; and
(B)
the attachment of tangible personal property or a product transferred
electronically to other tangible personal property or detachment of tangible
personal property or a product transferred electronically from other tangible
personal property is made in conjunction with a repair or replacement of
tangible personal property or a product transferred electronically.
(b)
"Repairs or renovations of tangible personal property" does not include:
(i)
attaching prewritten computer software to other tangible personal property if the
other tangible personal property to which the prewritten computer software is
attached is not permanently attached to real property; or
(ii)
detaching prewritten computer software from other tangible personal property if
the other tangible personal property from which the prewritten computer software
is detached is not permanently attached to real property.
(115)
"Research and development" means the process of inquiry or experimentation aimed
at the discovery of facts, devices, technologies, or applications and the process of
preparing those devices, technologies, or applications for marketing.
(116)
(a)
"Residential telecommunications services" means a telecommunications service
or an ancillary service that is provided to an individual for personal use:
(i)
at a residential address; or
(ii)
at an institution, including a nursing home or a school, if the telecommunications
service or ancillary service is provided to and paid for by the individual residing at
the institution rather than the institution.
(b)
For purposes of Subsection
(116)(a)(i)
, a residential address includes an:
(i)
apartment; or
(ii)
other individual dwelling unit.
(117)
"Residential use" means the use in or around a home, apartment building, sleeping
quarters, and similar facilities or accommodations.
(118)
"Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
(a)
resale;
(b)
sublease; or
(c)
subrent.
(119)
(a)
"Retailer" means any person, unless prohibited by the Constitution of the
United States or federal law, that is engaged in a regularly organized business in
tangible personal property or any other taxable transaction under Subsection
59-12-103(1)
, and who is selling to the user or consumer and not for resale.
(b)
"Retailer" includes commission merchants, auctioneers, and any person regularly
engaged in the business of selling to users or consumers within the state.
(120)
(a)
"Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
in any manner, of tangible personal property or any other taxable transaction under
Subsection
59-12-103(1)
, for consideration.
(b)
"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.
(121)
"Sale at retail" means the same as that term is defined in Subsection
(118)
.
(122)
"Sale-leaseback transaction" means a transaction by which title to tangible personal
property or a product transferred electronically that is subject to a tax under this chapter
is transferred:
(a)
by a purchaser-lessee;
(b)
to a lessor;
(c)
for consideration; and
(d)
if:
(i)
the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
purchase of the tangible personal property or product transferred electronically;
(ii)
the sale of the tangible personal property or product transferred electronically to
the lessor is intended as a form of financing:
(A)
for the tangible personal property or product transferred electronically; and
(B)
to the purchaser-lessee; and
(iii)
in accordance with generally accepted accounting principles, the
purchaser-lessee is required to:
(A)
capitalize the tangible personal property or product transferred electronically
for financial reporting purposes; and
(B)
account for the lease payments as payments made under a financing
arrangement.
(123)
"Sales price" means the same as that term is defined in Subsection
(108)
.
(124)
(a)
"Sales relating to schools" means the following sales by, amounts paid to, or
amounts charged by a school:
(i)
sales that are directly related to the school's educational functions or activities
including:
(A)
the sale of:
(I)
textbooks;
(II)
textbook fees;
(III)
laboratory fees;
(IV)
laboratory supplies; or
(V)
safety equipment;
(B)
the sale of a uniform, protective equipment, or sports or recreational
equipment that:
(I)
a student is specifically required to wear as a condition of participation in a
school-related event or school-related activity; and
(II)
is not readily adaptable to general or continued usage to the extent that it
takes the place of ordinary clothing;
(C)
sales of the following if the net or gross revenue generated by the sales is
deposited into a school district fund or school fund dedicated to school meals:
(I)
food and food ingredients; or
(II)
prepared food; or
(D)
transportation charges for official school activities; or
(ii)
amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity.
(b)
"Sales relating to schools" does not include:
(i)
bookstore sales of items that are not educational materials or supplies;
(ii)
except as provided in Subsection
(124)(a)(i)(B)
:
(A)
clothing;
(B)
clothing accessories or equipment;
(C)
protective equipment; or
(D)
sports or recreational equipment; or
(iii)
amounts paid to or amounts charged by a school for admission to a
school-related event or school-related activity if the amounts paid or charged are
passed through to a person:
(A)
other than a:
(I)
school;
(II)
nonprofit organization authorized by a school board or a governing body of
a private school to organize and direct a competitive secondary school
activity; or
(III)
nonprofit association authorized by a school board or a governing body of
a private school to organize and direct a competitive secondary school
activity; and
(B)
that is required to collect sales and use taxes under this chapter.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "passed through."
(125)
For purposes of this section and Section
59-12-104
, "school" means:
(a)
an elementary school or a secondary school that:
(i)
is a:
(A)
public school; or
(B)
private school; and
(ii)
provides instruction for one or more grades kindergarten through 12; or
(b)
a public school district.
(126)
(a)
"Seller" means a person that makes a sale, lease, or rental of:
(i)
tangible personal property;
(ii)
a product transferred electronically; or
(iii)
a service.
(b)
"Seller" includes a marketplace facilitator.
(127)
(a)
"Semiconductor fabricating, processing, research, or development materials"
means tangible personal property or a product transferred electronically if the
tangible personal property or product transferred electronically is:
(i)
used primarily in the process of:
(A)
(I)
manufacturing a semiconductor;
(II)
fabricating a semiconductor; or
(III)
research or development of a:
(Aa)
semiconductor; or
(Bb)
semiconductor manufacturing process; or
(B)
maintaining an environment suitable for a semiconductor; or
(ii)
consumed primarily in the process of:
(A)
(I)
manufacturing a semiconductor;
(II)
fabricating a semiconductor; or
(III)
research or development of a:
(Aa)
semiconductor; or
(Bb)
semiconductor manufacturing process; or
(B)
maintaining an environment suitable for a semiconductor.
(b)
"Semiconductor fabricating, processing, research, or development materials"
includes:
(i)
parts used in the repairs or renovations of tangible personal property or a product
transferred electronically described in Subsection
(127)(a)
; or
(ii)
a chemical, catalyst, or other material used to:
(A)
produce or induce in a semiconductor a:
(I)
chemical change; or
(II)
physical change;
(B)
remove impurities from a semiconductor; or
(C)
improve the marketable condition of a semiconductor.
(128)
"Senior citizen center" means a facility having the primary purpose of providing
services to the aged as defined in Section
26B-6-101
.
(129)
"Shared vehicle" means the same as that term is defined in Section
13-48a-101
.
(130)
"Shared vehicle driver" means the same as that term is defined in Section
13-48a-101
.
(131)
"Shared vehicle owner" means the same as that term is defined in Section
13-48a-101
.
(132)
(a)
Subject to Subsections
(132)(b)
and (c), "short-term lodging consumable"
means tangible personal property that:
(i)
a business that provides accommodations and services described in Subsection
59-12-103(1)(i)
purchases as part of a transaction to provide the accommodations
and services to a purchaser;
(ii)
is intended to be consumed by the purchaser; and
(iii)
is:
(A)
included in the purchase price of the accommodations and services; and
(B)
not separately stated on an invoice, bill of sale, or other similar document
provided to the purchaser.
(b)
"Short-term lodging consumable" includes:
(i)
a beverage;
(ii)
a brush or comb;
(iii)
a cosmetic;
(iv)
a hair care product;
(v)
lotion;
(vi)
a magazine;
(vii)
makeup;
(viii)
a meal;
(ix)
mouthwash;
(x)
nail polish remover;
(xi)
a newspaper;
(xii)
a notepad;
(xiii)
a pen;
(xiv)
a pencil;
(xv)
a razor;
(xvi)
saline solution;
(xvii)
a sewing kit;
(xviii)
shaving cream;
(xix)
a shoe shine kit;
(xx)
a shower cap;
(xxi)
a snack item;
(xxii)
soap;
(xxiii)
toilet paper;
(xxiv)
a toothbrush;
(xxv)
toothpaste; or
(xxvi)
an item similar to Subsections
(132)(b)(i)
through (xxv) as the commission
may provide by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(c)
"Short-term lodging consumable" does not include:
(i)
tangible personal property that is cleaned or washed to allow the tangible personal
property to be reused; or
(ii)
a product transferred electronically.
(133)
(a)
"Short-term rental" means a
lease or rental for
transfer of possession or control
of real property, tangible personal property, or a product transferred electronically for:

(i)
consideration; and
(ii)
less than 30 consecutive days.
(b)
"Short-term rental" does not include car sharing.
(134)
"Simplified electronic return" means the electronic return:
(a)
described in Section 318(C) of the agreement; and
(b)
approved by the governing board of the agreement.
(135)
"Solar energy" means the sun used as the sole source of energy for producing
electricity.
(136)
(a)
"Sports or recreational equipment" means an item:
(i)
designed for human use; and
(ii)
that is:
(A)
worn in conjunction with:
(I)
an athletic activity; or
(II)
a recreational activity; and
(B)
not suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "sports or recreational equipment"; and
(ii)
that are consistent with the list of items that constitute "sports or recreational
equipment" under the agreement.
(137)
"State" means the state of Utah, its departments, and agencies.
(138)
"Storage" means any keeping or retention of tangible personal property or any other
taxable transaction under Subsection
59-12-103(1)
, in this state for any purpose except
sale in the regular course of business.
(139)
(a)
"Tangible personal property" means personal property that:
(i)
may be:
(A)
seen;
(B)
weighed;
(C)
measured;
(D)
felt; or
(E)
touched; or
(ii)
is in any manner perceptible to the senses.
(b)
"Tangible personal property" includes:
(i)
electricity;
(ii)
water;
(iii)
gas;
(iv)
steam; or
(v)
prewritten computer software, regardless of the manner in which the prewritten
computer software is transferred.
(c)
"Tangible personal property" includes the following regardless of whether the item is
attached to real property:
(i)
a dishwasher;
(ii)
a dryer;
(iii)
a freezer;
(iv)
a microwave;
(v)
a refrigerator;
(vi)
a stove;
(vii)
a washer; or
(viii)
an item similar to Subsections
(139)(c)(i)
through (vii) as determined by the
commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(d)
"Tangible personal property" does not include a product that is transferred
electronically.
(e)
"Tangible personal property" does not include the following if attached to real
property, regardless of whether the attachment to real property is only through a line
that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
determined by the commission by rule made in accordance with Title
63G, Chapter 3
,
Utah Administrative Rulemaking Act:
(i)
a hot water heater;
(ii)
a water filtration system; or
(iii)
a water softener system.
(140)
(a)
"Telecommunications enabling or facilitating equipment, machinery, or
software" means an item listed in Subsection
(140)(b)
if that item is purchased or
leased primarily to enable or facilitate one or more of the following to function:
(i)
telecommunications switching or routing equipment, machinery, or software; or
(ii)
telecommunications transmission equipment, machinery, or software.
(b)
The following apply to Subsection
(140)(a)
:
(i)
a pole;
(ii)
software;
(iii)
a supplementary power supply;
(iv)
temperature or environmental equipment or machinery;
(v)
test equipment;
(vi)
a tower; or
(vii)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(140)(b)(i)
through (vi) as determined by the commission by rule
made in accordance with Subsection
(140)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(140)(b)(i)
through (vi).
(141)
"Telecommunications equipment, machinery, or software required for 911 service"
means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec.
20.18.
(142)
"Telecommunications maintenance or repair equipment, machinery, or software"
means equipment, machinery, or software purchased or leased primarily to maintain or
repair one or more of the following, regardless of whether the equipment, machinery, or
software is purchased or leased as a spare part or as an upgrade or modification to one or
more of the following:
(a)
telecommunications enabling or facilitating equipment, machinery, or software;
(b)
telecommunications switching or routing equipment, machinery, or software; or
(c)
telecommunications transmission equipment, machinery, or software.
(143)
(a)
"Telecommunications service" means the electronic conveyance, routing, or
transmission of audio, data, video, voice, or any other information or signal to a
point, or among or between points.
(b)
"Telecommunications service" includes:
(i)
an electronic conveyance, routing, or transmission with respect to which a
computer processing application is used to act:
(A)
on the code, form, or protocol of the content;
(B)
for the purpose of electronic conveyance, routing, or transmission; and
(C)
regardless of whether the service:
(I)
is referred to as voice over Internet protocol service; or
(II)
is classified by the Federal Communications Commission as enhanced or
value added;
(ii)
an 800 service;
(iii)
a 900 service;
(iv)
a fixed wireless service;
(v)
a mobile wireless service;
(vi)
a postpaid calling service;
(vii)
a prepaid calling service;
(viii)
a prepaid wireless calling service; or
(ix)
a private communications service.
(c)
"Telecommunications service" does not include:
(i)
advertising, including directory advertising;
(ii)
an ancillary service;
(iii)
a billing and collection service provided to a third party;
(iv)
a data processing and information service if:
(A)
the data processing and information service allows data to be:
(I)
(Aa)
acquired;
(Bb)
generated;
(Cc)
processed;
(Dd)
retrieved; or
(Ee)
stored; and
(II)
delivered by an electronic transmission to a purchaser; and
(B)
the purchaser's primary purpose for the underlying transaction is the processed
data or information;
(v)
installation or maintenance of the following on a customer's premises:
(A)
equipment; or
(B)
wiring;
(vi)
Internet access service;
(vii)
a paging service;
(viii)
a product transferred electronically, including:
(A)
music;
(B)
reading material;
(C)
a ring tone;
(D)
software; or
(E)
video;
(ix)
a radio and television audio and video programming service:
(A)
regardless of the medium; and
(B)
including:
(I)
furnishing conveyance, routing, or transmission of a television audio and
video programming service by a programming service provider;
(II)
cable service as defined in 47 U.S.C. Sec. 522(6); or
(III)
audio and video programming services delivered by a commercial mobile
radio service provider as defined in 47 C.F.R. Sec. 20.3;
(x)
a value-added nonvoice data service; or
(xi)
tangible personal property.
(144)
(a)
"Telecommunications service provider" means a person that:
(i)
owns, controls, operates, or manages a telecommunications service; and
(ii)
engages in an activity described in Subsection
(144)(a)(i)
for the shared use with
or resale to any person of the telecommunications service.
(b)
A person described in Subsection
(144)(a)
is a telecommunications service provider
whether or not the Public Service Commission of Utah regulates:
(i)
that person; or
(ii)
the telecommunications service that the person owns, controls, operates, or
manages.
(145)
(a)
"Telecommunications switching or routing equipment, machinery, or software"
means an item listed in Subsection
(145)(b)
if that item is purchased or leased
primarily for switching or routing:
(i)
an ancillary service;
(ii)
data communications;
(iii)
voice communications; or
(iv)
telecommunications service.
(b)
The following apply to Subsection
(145)(a)
:
(i)
a bridge;
(ii)
a computer;
(iii)
a cross connect;
(iv)
a modem;
(v)
a multiplexer;
(vi)
plug in circuitry;
(vii)
a router;
(viii)
software;
(ix)
a switch; or
(x)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(145)(b)(i)
through (ix) as determined by the commission by rule
made in accordance with Subsection
(145)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(145)(b)(i)
through (ix).
(146)
(a)
"Telecommunications transmission equipment, machinery, or software" means
an item listed in Subsection
(146)(b)
if that item is purchased or leased primarily for
sending, receiving, or transporting:
(i)
an ancillary service;
(ii)
data communications;
(iii)
voice communications; or
(iv)
telecommunications service.
(b)
The following apply to Subsection
(146)(a)
:
(i)
an amplifier;
(ii)
a cable;
(iii)
a closure;
(iv)
a conduit;
(v)
a controller;
(vi)
a duplexer;
(vii)
a filter;
(viii)
an input device;
(ix)
an input/output device;
(x)
an insulator;
(xi)
microwave machinery or equipment;
(xii)
an oscillator;
(xiii)
an output device;
(xiv)
a pedestal;
(xv)
a power converter;
(xvi)
a power supply;
(xvii)
a radio channel;
(xviii)
a radio receiver;
(xix)
a radio transmitter;
(xx)
a repeater;
(xxi)
software;
(xxii)
a terminal;
(xxiii)
a timing unit;
(xxiv)
a transformer;
(xxv)
a wire; or
(xxvi)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(146)(b)(i)
through (xxv) as the commission determines by rule made
in accordance with Subsection
(146)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(146)(b)(i)
through
(xxv)
.
(147)
(a)
"Textbook for a higher education course" means a textbook or other printed
material that is required for a course:
(i)
offered by an institution of higher education; and
(ii)
that the purchaser of the textbook or other printed material attends or will attend.
(b)
"Textbook for a higher education course" includes a textbook in electronic format.
(148)
"Tobacco" means:
(a)
a cigarette;
(b)
a cigar;
(c)
chewing tobacco;
(d)
pipe tobacco; or
(e)
any other item that contains tobacco.
(149)
"Unassisted amusement device" means an amusement device, skill device, or ride
device that is started and stopped by the purchaser or renter of the right to use or operate
the amusement device, skill device, or ride device.
(150)
(a)
"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.
(b)
"Use" does not include the sale, display, demonstration, or trial of tangible personal
property, a product transferred electronically, or a service in the regular course of
business and held for resale.
(151)
"Value-added nonvoice data service" means a service:
(a)
that otherwise meets the definition of a telecommunications service except that a
computer processing application is used to act primarily for a purpose other than
conveyance, routing, or transmission; and
(b)
with respect to which a computer processing application is used to act on data or
information:
(i)
code;
(ii)
content;
(iii)
form; or
(iv)
protocol.
(152)
(a)
Subject to Subsection
(152)(b)
, "vehicle" means the following that are required
to be titled, registered, or titled and registered:
(i)
an aircraft as defined in Section
72-10-102
;
(ii)
a vehicle as defined in Section
41-1a-102
;
(iii)
an off-highway vehicle as defined in Section
41-22-2
; or
(iv)
a vessel as defined in Section
41-1a-102
.
(b)
For purposes of Subsection
59-12-104(33)
only, "vehicle" includes:
(i)
a vehicle described in Subsection
(152)(a)
; or
(ii)
(A)
a locomotive;
(B)
a freight car;
(C)
railroad work equipment; or
(D)
other railroad rolling stock.
(153)
"Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging a vehicle as defined in Subsection
(152)
.
(154)
(a)
"Vertical service" means an ancillary service that:
(i)
is offered in connection with one or more telecommunications services; and
(ii)
offers an advanced calling feature that allows a customer to:
(A)
identify a caller; and
(B)
manage multiple calls and call connections.
(b)
"Vertical service" includes an ancillary service that allows a customer to manage a
conference bridging service.
(155)
(a)
"Voice mail service" means an ancillary service that enables a customer to
receive, send, or store a recorded message.
(b)
"Voice mail service" does not include a vertical service that a customer is required to
have in order to utilize a voice mail service.
(156)
(a)
"Waste energy facility" means a facility that generates electricity:
(i)
using as the primary source of energy waste materials that would be placed in a
landfill or refuse pit if it were not used to generate electricity, including:
(A)
tires;
(B)
waste coal;
(C)
oil shale; or
(D)
municipal solid waste; and
(ii)
in amounts greater than actually required for the operation of the facility.
(b)
"Waste energy facility" does not include a facility that incinerates:
(i)
hospital waste as defined in 40 C.F.R. 60.51c; or
(ii)
medical/infectious waste as defined in 40 C.F.R. 60.51c.
(157)
"Watercraft" means a vessel as defined in Section
73-18-2
.
(158)
"Wind energy" means wind used as the sole source of energy to produce electricity.
(159)
"ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
location by the United States Postal Service.
Section 20. Section
59-12-203
is amended to read:
59-12-203
Effective
07/01/26
. County, city, or town may levy tax -- Contracts
pursuant to Interlocal Cooperation Act -- Distribution of county tax revenue to newly
incorporated municipality.
(1)
As used in this section
,
:

(a)
"converted
"Converted
municipality" means the same as that term is defined in
Section
10-1-201.5
.
(b)
"Incorporation date" means the date on which the incorporation of a new
municipality is effective as described in Section
10-2a-217
.
(2)
A county, city, or town may impose a sales and use tax under this part.
(3)
(a)
Except as provided in Subsection
(3)(b)
, if a converted municipality imposes a tax
under this part, the
State Tax Commission
commission
shall distribute the amount
that the
State Tax Commission
commission
calculates under Section
59-12-205
to
the converted municipality.
(b)
The
State Tax Commission
commission
shall transfer the amount that would
otherwise be distributed to a converted municipality under this part to a municipal
services district created under Title 17B, Chapter 2a, Part 11, Municipal Services
District Act, if the converted municipality:
(i)
provides written notice to the
State Tax Commission
commission
requesting the
transfer; and
(ii)
designates the municipal services district to which the converted municipality
requests the
State Tax Commission
commission
to transfer the revenues.
(4)
A county, city, or town that imposes a sales and use tax under this part may:
(a)
enter into agreements authorized by Title 11, Chapter 13, Interlocal Cooperation Act;
and
(b)
use any or all of the revenue collected from the tax for the mutual benefit of local
governments that elect to contract with one another pursuant to Title 11, Chapter 13,
Interlocal Cooperation Act.
(5)
If a county in which a newly incorporated municipality is located imposes a tax under
this part, the commission shall distribute to the municipality the revenue collected within
the boundaries of the municipality from the tax imposed by the county for the period
that:
(a)
begins on the first day of the calendar quarter after the municipality's incorporation
date; and
(b)
ends on the first day of the calendar quarter after 180 days from the municipality's
incorporation date.
Section 21. Section
59-12-603
is amended to read:
59-12-603
Effective
07/01/26
. County tax -- Bases -- Rates -- Use of revenue --
Adoption of ordinance required -- Advisory board -- Administration -- Collection --
Administrative charge -- Distribution -- Enactment or repeal of tax or tax rate change --
Effective date -- Notice requirements.
(1)
(a)
In addition to any other taxes, a county legislative body may
impose
, as provided
in this part,
impose
a tax as follows:
(i)
except as provided in Subsection
(1)(c)
:
(A)
a county legislative body
of any county
may impose a tax of not to exceed
3% on
all
short-term rentals of motor vehicles
, except for short-term rentals
of motor vehicles made for the purpose of temporarily replacing a person's
motor vehicle that is being repaired pursuant to a repair or an insurance
agreement
; and
(B)
a county legislative body
of any county
imposing a tax under Subsection
(1)(a)(i)(A)
may, in addition to imposing the tax under Subsection
(1)(a)(i)(A)
,
impose a tax of not to exceed 4% on
all
short-term rentals of motor vehicles
,
except for short-term rentals of motor vehicles made for the purpose of
temporarily replacing a person's motor vehicle that is being repaired pursuant
to a repair or an insurance agreement
;
(ii)
a county legislative body
of any county
may impose a tax of not to exceed 7%
on
all
short-term rentals of off-highway vehicles and recreational vehicles;
(iii)
a county legislative body
of any county
may impose a tax of not to exceed 1%
of
all
sales of:
(A)
alcoholic beverages, food and food ingredients, or prepared food sold by a
restaurant; and
(B)
customized prepared food sold by a convenience store, a gas station, or a
grocery store;
(iv)
a county legislative body of a county of the first class
, as classified in Section
17-60-104
,
may impose a tax of not to exceed .5% on charges for the
accommodations and services described in Subsection
59-12-103(1)(i)
; and
(v)
if a county legislative body
of any county
imposes a tax under Subsection
(1)(a)(i)
, a tax at the same rate applies to car sharing of less than 30 days
, except
for car sharing for the purpose of temporarily replacing a person's motor vehicle
that is being repaired pursuant to a repair or an insurance agreement
.
(b)
A tax imposed under Subsection
(1)(a)
is subject to the reporting provisions of
Sections
17-78-704
and
17E-2-406
.
(b)
A county legislative body that imposes a tax under this Subsection
(1)
shall comply
with the reporting requirements described in Sections
17-78-704
and
17E-2-406
.
(c)
A motor vehicle is exempt from a tax under this Subsection
(1)
if:
(i)
the motor vehicle has a gross vehicle weight rating of 14,001 pounds or more;
(ii)
the motor vehicle is rented as a personal household goods moving van; or
(iii)
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 in accordance with a
repair agreement or an insurance agreement.
(2)
(a)
Subject to Subsection
(2)(c)
, a county may use revenue from the imposition of a
tax under Subsection
(1)
for:
(i)
financing tourism promotion; and
(ii)
the development, operation, and maintenance of:
(A)
an airport facility;
(B)
a convention facility;
(C)
a cultural facility;
(D)
a recreation facility; or
(E)
a tourist facility.
(b)
(i)
In addition to the uses described in Subsection
(2)(a)
and subject to Subsection
(2)(b)(ii)
, a county of the fourth, fifth, or sixth class
, as classified in Section
17-60-104
,
or a county with a population density of fewer than 15 people per
square mile may expend the revenue from the imposition of a tax under
Subsections
(1)(a)(i)
and
(ii)
on the following activities to mitigate the impacts of
tourism:
(A)
solid waste disposal;
(B)
search and rescue activities;
(C)
law enforcement activities;
(D)
emergency medical services; or
(E)
fire protection services.
(ii)
A county may only expend the revenue as outlined in Subsection
(2)(b)(i)
if the
county's tourism tax advisory board created under Subsection
17-31-8(1)(a)
has
prioritized the use of revenue to mitigate the impacts of tourism.
(c)
A county of the first class
, as classified in Section
17-60-104
,
shall expend at least
$450,000 each year of the revenue from the imposition of a tax authorized by
Subsection
(1)(a)(iv)
within the county to fund a marketing and ticketing system
designed to:
(i)
promote tourism in ski areas within the county by persons that do not reside within
the state; and
(ii)
combine the sale of:
(A)
ski lift tickets; and
(B)
accommodations and services described in Subsection
59-12-103(1)(i)
.
(3)
A tax imposed under this part may be pledged as security for bonds, notes, or other
evidences of indebtedness incurred by a county, city, or town under Title
11, Chapter 14
,
Local Government Bonding Act, or a community reinvestment agency under Title
17C,
Chapter 1, Part 5
, Agency Bonds, to finance:
(a)
an airport facility;
(b)
a convention facility;
(c)
a cultural facility;
(d)
a recreation facility; or
(e)
a tourist facility.
(4)
(a)
To impose a tax under Subsection
(1)
, the county legislative body shall adopt an
ordinance imposing the tax.
(b)
The ordinance under Subsection
(4)(a)
shall include provisions substantially the
same as those contained in Part
1, Tax Collection
, except that the tax shall be
imposed only on those items and sales described in Subsection
(1)
.
(c)
The name of the county as the taxing agency shall be substituted for that of the state
where necessary, and an additional license is not required if one has been or is issued
under Section
59-12-106
.
(5)
To maintain in effect a tax ordinance adopted under this part, each county legislative
body shall
adopt
, within 30 days of any amendment of any applicable provisions of Part
1, Tax Collection
,
adopt
amendments to the county's tax ordinance to conform with the
applicable amendments to Part
1, Tax Collection
.
(6)
(a)
Regardless of whether a county of the first class
, as classified in Section
17-60-104
,
creates a tourism tax advisory board in accordance with Section
17-78-706
, the
county legislative body
of the county of the first class
shall create a tax advisory
board in accordance with this Subsection
(6)
.
(b)
The tax advisory board shall be composed of nine members appointed as follows:
(i)
four members shall be residents of a county of the first class
, as classified in
Section
17-60-104
,
appointed by the county legislative body
of the county of the
first class
; and
(ii)
subject to Subsections
(6)(c)
and
(d)
, five members shall be mayors of cities or
towns within the county of the first class
, as classified in Section
17-60-104
,

appointed by an organization representing all mayors of cities and towns within
the county of the first class
, as classified in Section
17-60-104
.
(c)
Five members of the tax advisory board constitute a quorum.
(d)
The county legislative body of the county of the first class
, as classified in Section
17-60-104
,
shall determine:
(i)
terms of the members of the tax advisory board;
(ii)
procedures and requirements for removing a member of the tax advisory board;
(iii)
voting requirements, except that action of the tax advisory board shall be by at
least a majority vote of a quorum of the tax advisory board;
(iv)
chairs or other officers of the tax advisory board;
(v)
how meetings are to be called
the procedures for calling meetings
and the
frequency of meetings; and
(vi)
the compensation, if any, of members of the tax advisory board.
(e)
The tax advisory board under this Subsection
(6)
shall advise the county legislative
body of the county of the first class
, as classified in Section
17-60-104
,
on the
expenditure of revenue collected within the county
of the first class
from the taxes
described in Subsection
(1)(a)
(1)
.
(7)
(a)
(i)
Except as provided in Subsection
(7)(a)(ii)
(7)(b)
, a tax authorized under
this part shall be administered, collected, enforced, and interpreted in accordance
with:
(A)
(i)
the same procedures used to administer, collect, enforce, and interpret the tax
under:
(I)
(A)
Part
1, Tax Collection
; or
(II)
(B)
Part
2, Local Sales and Use Tax Act
; and
(B)
(ii)
Chapter 1, General Taxation Policies.
(ii)
(b)
A tax under this part is not subject to Section
59-12-107.1
or
59-12-123
or
Subsections
59-12-205(2)
and
(4)
through (6).
(b)
Except as provided in Subsection
(7)(c)
:
(i)
for a tax under this part other than the tax under Subsection
(1)(a)(i)(B)
, the
commission shall distribute the revenue to the county imposing the tax; and
(ii)
for a tax under Subsection
(1)(a)(i)(B)
, the commission shall distribute the
revenue according to the distribution formula provided in Subsection
(8)
.
(c)
The commission shall retain and deposit an administrative charge in accordance with
Section
59-1-306
from the revenue the commission
collects
receives
from a tax
under this part.
(8)
(a)
The commission shall distribute the revenue for a tax imposed in accordance with
Subsection
(1)
, other than in accordance with Subsection
(1)(a)(i)(B)
, to the county
imposing the tax.
(b)
The commission shall distribute the revenue generated by the tax
under
imposed in
accordance with
Subsection
(1)(a)(i)(B)
to each county
collecting a tax under
imposing a tax in accordance with
Subsection
(1)(a)(i)(B)
according to the following
formula:
(i)
the commission shall distribute 70% of the revenue based on the percentages
generated by dividing the revenue collected by each county under Subsection
(1)(a)(i)(B)
by the total revenue collected by all counties under Subsection
(1)(a)(i)(B)
; and
(ii)
the commission shall distribute 30% of the revenue based on the percentages
generated by dividing the population of each county collecting a tax under
Subsection
(1)(a)(i)(B)
by the total population of all counties collecting a tax
under Subsection
(1)(a)(i)(B)
.
(b)
(c)
Population for purposes of
this
Subsection
(8)
(8)(b)
shall be based on, to the
extent not otherwise required by federal law:
(i)
the estimate of the Utah Population Committee created in Section
63C-20-103
; or
(ii)
if the Utah Population Committee estimate is not available, the most recent
census or census estimate of the United States Bureau of the Census.
(9)
(a)
For purposes of this Subsection
(9)
:
(i)
"Annexation" means an annexation to a county under Title
17, Chapter 61, Part 3
,
County Annexation.
(ii)
"Annexing area" means an area that is annexed into a county.
(b)
(i)
Except as provided in Subsection
(9)(c)
, if a county 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 day on which the commission receives
notice meeting the requirements of Subsection
(9)(b)(ii)
from the county.
(ii)
The notice described in Subsection
(9)(b)(i)(B)
shall state:
(A)
that the county 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
(9)(b)(ii)(A)
;
(C)
the effective date of the tax described in Subsection
(9)(b)(ii)(A)
; and
(D)
if the county enacts the tax or changes the rate of the tax described in
Subsection
(9)(b)(ii)(A)
, 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 Subsection
(1)
, the
enactment of the tax or the tax rate increase shall take effect on the first day of the
first billing period that begins after the effective date of the enactment of the tax
or the tax rate increase.
(ii)
If the billing period for a transaction begins before the effective date of the repeal
of the tax or the tax rate decrease imposed under Subsection
(1)
, the repeal of the
tax or the tax rate decrease shall take effect on the first day of the last billing
period that began before the effective date of the repeal of the tax or the tax rate
decrease.
(d)
(i)
Except as provided in Subsection
(9)(e)
, if 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 day on which the commission receives
notice meeting the requirements of Subsection
(9)(d)(ii)
from the county that
annexes the annexing area.
(ii)
The notice described in Subsection
(9)(d)(i)(B)
shall state:
(A)
that the annexation described in Subsection
(9)(d)(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
(9)(d)(ii)(A)
;
(C)
the effective date of the tax described in Subsection
(9)(d)(ii)(A)
; and
(D)
if the county enacts the tax or changes the rate of the tax described in
Subsection
(9)(d)(ii)(A)
, the rate of the tax.
(e)
(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 shall take effect on the first day of the
first billing period that begins after the effective date of the enactment of the tax
or the tax rate increase.
(ii)
If the billing period for a transaction begins before the effective date of the repeal
of the tax or the tax rate decrease imposed under Subsection
(1)
, the repeal of the
tax or the tax rate decrease shall take effect on the first day of the last billing
period that began before the effective date of the repeal of the tax or the tax rate
decrease.
Section 22. Section
59-12-703
is amended to read:
59-12-703
Effective
07/01/26
. Opinion question election -- Base -- Rate --
Imposition of tax -- Expenditure of revenue -- Administration -- Enactment,
reauthorization, or repeal of tax -- Effective date -- Notice requirements -- Requirements
for enforcement of reauthorized tax.
(1)
(a)
Subject to the other provisions of this section, a county legislative body may
submit an opinion question to the residents of that county, by majority vote of all
members of the legislative body, so that each resident of the county, except residents
in municipalities that have already imposed a sales and use tax under
Part 14, City or
Town Option Funding for Botanical, Cultural, Recreational, and Zoological
Organizations or Facilities
, has an opportunity to express the resident's opinion on the
imposition of a local sales and use tax of .1% on the transactions described in
Subsection
59-12-103(1)
located within the county, to:
(i)
fund cultural facilities, recreational facilities, and zoological facilities, botanical
organizations, cultural organizations, and zoological organizations, and rural radio
stations, in that county; or
(ii)
provide funding for a botanical organization, cultural organization, or zoological
organization to pay for use of a bus or facility rental if that use of the bus or
facility rental is in furtherance of the botanical organization's, cultural
organization's, or zoological organization's primary purpose.
(b)
The opinion question required by this section shall state:
"Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and use
tax for (list the purposes for which the revenue collected from the sales and use tax shall be
expended)?"
(c)
A county legislative body 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
;
(ii)
sales and uses within a municipality that has already imposed a sales and use tax
under
Part 14, City or Town Option Funding for Botanical, Cultural, Recreational,
and Zoological Organizations or Facilities
; and
(iii)
except as provided in Subsection
(1)(e)
, amounts paid or charged for food and
food ingredients.
(d)
For purposes of this Subsection
(1)
, the location of a transaction shall be determined
in accordance with Sections
59-12-211
through
59-12-215
.
(e)
A county legislative body 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.
(f)
The election shall follow the procedures outlined in
Title 11, Chapter 14, Local
Government Bonding Act
.
(2)
(a)
If the county legislative body determines that a majority of the county's registered
voters voting on the imposition of the tax have voted in favor of the imposition of the
tax in accordance with Subsection
(1)
, the county legislative body may impose the
tax by a majority vote of all members of the legislative body on the transactions:
(i)
described in Subsection
(1)
; and
(ii)
within the county, including the cities and towns located in the county, except
those cities and towns that have already imposed a sales and use tax under
Part 14,
City or Town Option Funding for Botanical, Cultural, Recreational, and
Zoological Organizations or Facilities
.
(b)
A county legislative body may revise county ordinances to reflect statutory changes
to the distribution formula or eligible recipients of revenue generated from a tax
imposed under Subsection
(2)(a)
without submitting an opinion question to residents
of the county.
(3)
(a)
After the residents of a county of the third, fourth, fifth, or sixth class
, as classified
in Section
17-60-104
,
authorize a tax under this part in accordance with Subsection
(1)
for two consecutive 10-year periods, the tax may be reauthorized only by a
majority vote of the members of the county legislative body.
(b)
For purposes of reauthorizing the tax in accordance with Subsection
(3)(a)
, the
county legislative body shall post the purposes for imposing the tax at least 24 hours
before the meeting at which the county legislative body votes to reauthorize the tax.
(4)
Subject to Section
59-12-704
, a county shall expend revenue collected from a tax
imposed under Subsection
(2)
or (3):
(a)
to fund cultural facilities, recreational facilities, and zoological facilities located
within the county or a city or town located in the county, except a city or town that
has already imposed a sales and use tax under
Part 14, City or Town Option Funding
for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities
;
(b)
to fund ongoing operating expenses of:
(i)
recreational facilities described in Subsection
(4)(a)
;
(ii)
botanical organizations, cultural organizations, and zoological organizations
within the county; and
(iii)
rural radio stations within the county; and
(c)
(i)
as stated in the opinion question described in Subsection
(1)
if the county
authorizes the tax in accordance with Subsections
(1)
and
(2)
; or
(ii)
for the purposes posted by the members of the county legislative body if the
county legislative body reauthorizes the tax in accordance with Subsection
(3)
.
(5)
(a)
A tax authorized under this part shall be:
(i)
except as provided in Subsection
(5)(b)
, administered, collected, enforced, and
interpreted in accordance with:
(A)
the same procedures used to administer, collect, enforce, and interpret the tax
under:
(I)
Part 1, Tax Collection
; or
(II)
Part 2, Local Sales and Use Tax Act
; and
(B)
Chapter 1, General Taxation Policies
; and
(ii)
levied for a period of 10 years and may be reauthorized at the end of the 10-year
period in accordance with this section.
(b)
A tax under this part is not subject to Subsections
59-12-205(2)
and (4) through (6).
(6)
(a)
For purposes of this Subsection
(6)
:
(i)
"Annexation" means an annexation to a county under Title
17, Chapter 61, Part 2
,
Consolidation of Counties, or Part 3, County Annexation.
(ii)
"Annexing area" means an area that is annexed into a county.
(b)
(i)
Except as provided in Subsection
(6)(c)
or
(d)
,
and subject to Subsection
(7)
,
if
a county enacts
, reauthorizes,
or repeals a tax under this part, the enactment
,
reauthorization,
or repeal 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
(6)(b)(ii)
from the county.
(ii)
The notice described in Subsection
(6)(b)(i)(B)
shall state:
(A)
that the county will enact
, reauthorize,
or repeal a tax under this part;
(B)
the statutory authority for the tax described in Subsection
(6)(b)(ii)(A)
;
(C)
the effective date of the tax described in Subsection
(6)(b)(ii)(A)
; and
(D)
if the county enacts
or reauthorizes
the tax described in Subsection
(6)(b)(ii)(A)
, the rate of the tax.
(c)
(i)
If the billing period for a transaction begins before the effective date of the
enactment
or reauthorization
of the tax under this section, the enactment
or
reauthorization
of the tax takes effect on the first day of the first billing period that
begins on or after the effective date of the enactment
or reauthorization
of the tax.
(ii)
The repeal of a tax 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
imposed under this section.
(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
, reauthorization,

or repeal of a tax described in Subsection
(6)(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
, reauthorization,
or
repeal under Subsection
(6)(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
(6)(f)
or
(g)
, if an annexation will result in the
enactment or repeal of a tax under this part for an annexing area, the enactment or
repeal 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
(6)(e)(ii)
from the county that annexes
the annexing area.
(ii)
The notice described in Subsection
(6)(e)(i)(B)
shall state:
(A)
that the annexation described in Subsection
(6)(e)(i)
will result in an
enactment or repeal of a tax under this part for the annexing area;
(B)
the statutory authority for the tax described in Subsection
(6)(e)(ii)(A)
;
(C)
the effective date of the tax described in Subsection
(6)(e)(ii)(A)
; and
(D)
the rate of the tax described in Subsection
(6)(e)(ii)(A)
.
(f)
(i)
If the billing period for a transaction begins before the effective date of the
enactment of the tax under this section, the enactment of the tax 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.
(ii)
The repeal of a tax 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
imposed under this section.
(g)
(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 or repeal of a tax
described in Subsection
(6)(e)(i)
takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the enactment or repeal under
Subsection
(6)(e)(i)
.
(ii)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
,
the commission may by rule define the term "catalogue sale."
(7)
(a)
If a county reauthorizes a tax under this part in accordance with Subsection
(3)(a)

or
(5)(a)(ii)
, the county shall provide to the commission notice of the reauthorization
that meets the requirements of Subsection
(6)(b)(ii)
at least 90 days before the first
day of the calendar quarter in which the reauthorization first takes effect.
(b)
The commission may not enforce a tax under this part due for reauthorization unless
the commission receives timely notice of the reauthorization as provided in
Subsection
(7)(a)
.
Section 23. Section
59-12-806
is amended to read:
59-12-806
Effective
07/01/26
. Enactment, reauthorization, or repeal of tax --
Tax rate change -- Effective date -- Notice requirements -- Requirements for enforcement
of reauthorized tax.
(1)
For purposes of this section:
(a)
"Annexation" means an annexation to:
(i)
a county under Title
17, Chapter 61, Part 2
, Consolidation of Counties, or Part 3,
County Annexation; or
(ii)
a city under Title
10, Chapter 2, Part 8
, Annexation.
(b)
"Annexing area" means an area that is annexed into a county or city.
(2)
(a)
Except as provided in Subsection
(2)(c)
or
(d)
,
and subject to Subsection
(4)
,
if, on
or after July 1, 2004, a county or city enacts
, reauthorizes,
or repeals a tax or changes
the rate of a tax under this part, the enactment,
reauthorization,
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 county or city.
(b)
The notice described in Subsection
(2)(a)(ii)
shall state:
(i)
that the county or city will enact
, reauthorize,
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 county or city enacts
or reauthorizes
the tax or changes the rate of the tax
described in Subsection
(2)(b)(i)
, the rate of the tax.
(c)
(i)
The enactment
or reauthorization
of a tax or a tax rate increase takes effect on
the first day of the first billing period:
(A)
that begins on or after the effective date of the enactment
of the tax or the
,
reauthorization, or
tax rate increase; and
(B)
if the billing period for the transaction begins before the effective date of the
enactment
of the tax or the
, reauthorization, or
tax rate increase imposed
under:
(I)
Section
59-12-802
; or
(II)
Section
59-12-804
.
(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 rendered on or after the effective date of the
repeal of the tax or the tax rate decrease imposed under:
(A)
Section
59-12-802
; or
(B)
Section
59-12-804
.
(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,
reauthorization,
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,
reauthorization,
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 county or city 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 county or city enacts the tax or changes the rate of the tax described in
Subsection
(3)(b)(i)
, the rate of the tax.
(c)
(i)
The enactment of a tax or a tax rate increase takes effect on the first day of the
first billing period:
(A)
that begins on or after the effective date of the enactment of the tax or the tax
rate increase; and
(B)
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:
(I)
Section
59-12-802
; or
(II)
Section
59-12-804
.
(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 rendered on or after the effective date of the
repeal of the tax or the tax rate decrease imposed under:
(A)
Section
59-12-802
; or
(B)
Section
59-12-804
.
(d)
(i)
If a tax due under this
chapter
part
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 a 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)
If a city or county reauthorizes a tax under this part in accordance with Subsection
59-12-802(5)
or
59-12-804(4)
, the city or county shall provide to the commission
notice of the reauthorization that meets the requirements of Subsection
(3)(b)
at least
90 days before the first day of the calendar quarter in which the reauthorization first
takes effect.
(5)
The commission may not enforce a tax under this part due for reauthorization unless the
commission receives timely notice of the reauthorization as provided in Subsection
(4)(a)
.
Section 24. Section
59-12-1201
is amended to read:
59-12-1201
Effective
07/01/26
. Motor vehicle rental tax -- Rate -- Exemptions --
Administration, collection, enforcement, and interpretation of tax -- Administrative
charge -- Deposits.
(1)
As used in this section:
(a)
"Fairpark district board" means the board of the fairpark district.
(b)
(a)
"Fairpark district" means the Utah Fairpark Area Investment and Restoration
District, created in Section
11-70-201
.
(b)
"Fairpark district board" means the board of the fairpark district.
(c)
"Franchise agreement date" means the same as that term is defined in Section
11-70-101
.
(d)
"Stadium contribution" means the same as that term is defined in Section
11-70-101
.
(e)
"Transition date" means the first day of the calendar quarter that begins at least 90
days after the fairpark district board delivers to the commission the certificate
described in Subsection
(2)(a)(ii)(B)
.
(2)
(a)
(i)
Except as provided in Subsections
(4)
and
(5)
, there is imposed a tax of 2.5%
on all short-term rentals of motor vehicles.
(ii)
(A)
In addition to the tax imposed under Subsection
(2)(a)(i)
and except as
provided in Subsections
(4)
and
(5)
, beginning on the transition date there is
imposed a tax of 1.5% on all short-term rentals of motor vehicles.
(B)
After the franchise agreement date, the fairpark district board shall deliver to
the commission a certificate verifying the execution of a franchise agreement,
as defined in Section
11-70-101
, and providing the franchise agreement date.
(C)
A tax under this Subsection
(2)(a)(ii)
is imposed only if the franchise
agreement date is on or before June 30, 2032.
(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.
(3)
(a)
Subject to Subsection
(3)(b)
, a tax rate repeal or tax rate change for the tax
imposed under Subsection
(2)
shall take effect on the first day of a calendar quarter.
(b)
(i)
For a transaction subject to a tax under Subsection
(2)
, 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
(2)
.
(ii)
For a transaction subject to a tax under Subsection
(2)
, 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
(2)
.
(4)
A tax imposed under this section applies at the same rate to car sharing of less than 30
days, except for car sharing for the purpose of temporarily replacing a person's motor
vehicle that is being repaired pursuant to a repair or an insurance agreement.
(5)
A motor vehicle is exempt from the tax imposed under this section if:
(a)
the motor vehicle
is registered for a gross laden weight of 12,001
has a gross vehicle
weight rating of 14,001
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
in accordance
with
a repair agreement or an insurance agreement.
(6)
(a)
(i)
The tax authorized under this section shall be administered, collected,
enforced, and interpreted in accordance with:
(A)
the same procedures used to administer, collect, enforce, and interpret the tax
under Part 1, Tax Collection; and
(B)
Chapter 1, General Taxation Policies.
(ii)
Notwithstanding Subsection
(6)(a)(i)
, a tax under this part is not subject to
Subsections
59-12-103(4)
through
(10)
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 revenue the commission collects from a tax under this part.
(c)
Except as provided under Subsections
(6)(b)
and
(d)
:
(i)
the commission shall deposit daily with the state treasurer all revenue received
under this section; and
(ii)
the state treasurer shall credit monthly all revenue received under this section to
the Marda Dillree Corridor Preservation Fund under Section
72-2-117
.
(d)
(i)
Subject to Subsection
(6)(d)(iii)
, all revenue received by the commission under
Subsection
(2)(a)(ii)
shall be paid to the fairpark district.
(ii)
Within 10 days after the fairpark district completes payment of the stadium
contribution, the fairpark district board shall deliver to the commission a written
statement verifying that the fairpark district has completed payment of the stadium
contribution.
(iii)
Upon receipt of the written statement under Subsection
(6)(d)(ii)
, the
commission shall:
(A)
discontinue collecting revenue under Subsection
(2)(a)(ii)
, beginning the first
day of the calendar quarter that is at least 90 days after the commission's
receipt of the written statement;
(B)
discontinue distributing revenue under Subsection
(2)(a)(ii)
to the fairpark
district, beginning the first day of the calendar quarter that is at least 90 days
after the commission's receipt of the written statement; and
(C)
notify the Executive Appropriations Committee of the Legislature that the
commission is discontinuing collecting and distributing revenue under
Subsection
(2)(a)(ii)
.
Section 25. Section
59-12-1402
is amended to read:
59-12-1402
Effective
07/01/26
. Opinion question election -- Base -- Rate --
Imposition of tax -- Expenditure of revenue -- Enactment, reauthorization, or repeal of
tax -- Effective date -- Notice requirements -- Requirements for enforcement of
reauthorized tax.
(1)
(a)
Subject to the other provisions of this section, a city or town legislative body
subject to this part may submit an opinion question to the residents of that city or
town, by majority vote of all members of the legislative body, so that each resident of
the city or town has an opportunity to express the resident's opinion on the imposition
of a local sales and use tax of .1% on the transactions described in Subsection
59-12-103(1)
located within the city or town, to:
(i)
fund cultural facilities, recreational facilities, and zoological facilities and
botanical organizations, cultural organizations, and zoological organizations in
that city or town; or
(ii)
provide funding for a botanical organization, cultural organization, or zoological
organization to pay for use of a bus or facility rental if that use of the bus or
facility rental is in furtherance of the botanical organization's, cultural
organization's, or zoological organization's primary purpose.
(b)
The opinion question required by this section shall state:
"Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
and use tax for (list the purposes for which the revenue collected from the sales and use tax
shall be expended)?"
(c)
A city or town legislative body may not impose a tax under this section:
(i)
if the county in which the city or town is located imposes a tax under
Part 7,
County Option Funding for Botanical, Cultural, Recreational, and Zoological
Organizations or Facilities
;
(ii)
on 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
(iii)
except as provided in Subsection
(1)(e)
, on amounts paid or charged for food and
food ingredients.
(d)
For purposes of this Subsection
(1)
, the location of a transaction shall be determined
in accordance with Sections
59-12-211
through
59-12-215
.
(e)
A city or town legislative body 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.
(f)
Except as provided in Subsection
(6)
, the election shall be held at a regular general
election or a municipal general election, as those terms are defined in Section
20A-1-102
, and shall follow the procedures outlined in
Title 11, Chapter 14, Local
Government Bonding Act
.
(2)
If the city or town legislative body determines that a majority of the city's or town's
registered voters voting on the imposition of the tax have voted in favor of the
imposition of the tax as prescribed in Subsection
(1)
, the city or town legislative body
may impose the tax by a majority vote of all members of the legislative body.
(3)
Subject to Section
59-12-1403
, revenue collected from a tax imposed under Subsection
(2)
shall be expended:
(a)
to finance cultural facilities, recreational facilities, and zoological facilities within the
city or town or within the geographic area of entities that are parties to an interlocal
agreement, to which the city or town is a party, providing for cultural facilities,
recreational facilities, or zoological facilities;
(b)
to finance ongoing operating expenses of:
(i)
recreational facilities described in Subsection
(3)(a)
within the city or town or
within the geographic area of entities that are parties to an interlocal agreement, to
which the city or town is a party, providing for recreational facilities; or
(ii)
botanical organizations, cultural organizations, and zoological organizations
within the city or town or within the geographic area of entities that are parties to
an interlocal agreement, to which the city or town is a party, providing for the
support of botanical organizations, cultural organizations, or zoological
organizations; and
(c)
as stated in the opinion question described in Subsection
(1)
.
(4)
(a)
Except as provided in Subsections
(4)(b)
and (c), a tax authorized under this part
shall be:
(i)
administered, collected, enforced, and interpreted in accordance with:
(A)
the same procedures used to administer, collect, enforce, and interpret the tax
under:
(I)
Part 1, Tax Collection
; or
(II)
Part 2, Local Sales and Use Tax Act
; and
(B)
Chapter 1, General Taxation Policies
; and
(ii)
(A)
levied for a period of eight years; and
(B)
may be reauthorized at the end of the eight-year period in accordance with this
section.
(b)
(i)
If a tax under this part is imposed for the first time on or after July 1, 2011, the
tax shall be levied for a period of 10 years.
(ii)
If a tax under this part is reauthorized in accordance with Subsection
(4)(a)
on or
after July 1, 2011, the tax shall be reauthorized for a 10-year period.
(c)
A tax under this section is not subject to Subsections
59-12-205(2)
and (4) through
(6).
(5)
(a)
For purposes of this Subsection
(5)
:
(i)
"Annexation" means an annexation to a city or town under Title 10, Chapter 2,
Part 8, Annexation.
(ii)
"Annexing area" means an area that is annexed into a city or town.
(b)
(i)
Except as provided in Subsection
(5)(c)
or
(d)
,
and subject to Subsection
(7)
,
if,
on or after July 1, 2004, a city or town enacts
, reauthorizes,
or repeals a tax under
this part, the enactment
, reauthorization,
or repeal 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 city or town.
(ii)
The notice described in Subsection
(5)(b)(i)(B)
shall state:
(A)
that the city or town will enact
, reauthorize,
or repeal 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 city or town enacts
or reauthorizes
the tax described in Subsection
(5)(b)(ii)(A)
, the rate of the tax.
(c)
(i)
If the billing period for a transaction begins before the effective date of the
enactment
or reauthorization
of the tax under this section, the enactment
or
reauthorization
of the tax takes effect on the first day of the first billing period that
begins on or after the effective date of the enactment
or reauthorization
of the tax.
(ii)
The repeal of a tax 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
imposed under this section.
(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
, reauthorization,

or repeal 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
, reauthorization,
or
repeal 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 or repeal of a
tax under this part for an annexing area, the enactment or repeal 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 city or 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 or repeal 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)
the rate of the tax described in Subsection
(5)(e)(ii)(A)
.
(f)
(i)
If the billing period for a transaction begins before the effective date of the
enactment of the tax under this section, the enactment of the tax 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.
(ii)
The repeal of a tax 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
imposed under this section.
(g)
(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 or repeal of a tax
described in Subsection
(5)(e)(i)
takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the enactment or repeal 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)
(a)
Before a city or town legislative body submits an opinion question to the residents
of the city or town under Subsection
(1)
, the city or town legislative body shall:
(i)
submit to the county legislative body in which the city or town is located a written
notice of the intent to submit the opinion question to the residents of the city or
town; and
(ii)
receive from the county legislative body:
(A)
a written resolution passed by the county legislative body stating that the
county legislative body is not seeking to impose a tax under
Part 7, County
Option Funding for Botanical, Cultural, Recreational, and Zoological
Organizations or Facilities
; or
(B)
a written statement that in accordance with Subsection
(6)(b)
the results of a
county opinion question submitted to the residents of the county under
Part 7,
County Option Funding for Botanical, Cultural, Recreational, and Zoological
Organizations or Facilities
, permit the city or town legislative body to submit
the opinion question to the residents of the city or town in accordance with this
part.
(b)
(i)
Within 60 days after the day the county legislative body receives from a city or
town legislative body described in Subsection
(6)(a)
the notice of the intent to
submit an opinion question to the residents of the city or town, the county
legislative body shall provide the city or town legislative body:
(A)
the written resolution described in Subsection
(6)(a)(ii)(A)
; or
(B)
written notice that the county legislative body will submit an opinion question
to the residents of the county under
Part 7, County Option Funding for
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities
,
for the county to impose a tax under that part.
(ii)
If the county legislative body provides the city or town legislative body the
written notice that the county legislative body will submit an opinion question as
provided in Subsection
(6)(b)(i)(B)
, the county legislative body shall submit the
opinion question by no later than, from the date the county legislative body sends
the written notice, the later of:
(A)
a 12-month period;
(B)
the next regular primary election; or
(C)
the next regular general election.
(iii)
Within 30 days of the date of the canvass of the election at which the opinion
question under Subsection
(6)(b)(ii)
is voted on, the county legislative body shall
provide the city or town legislative body described in Subsection
(6)(a)
written
results of the opinion question submitted by the county legislative body under
Part
7, County Option Funding for Botanical, Cultural, Recreational, and Zoological
Organizations or Facilities
, indicating that:
(A)
(I)
the city or town legislative body may not impose a tax under this part
because a majority of the county's registered voters voted in favor of the
county imposing the tax and the county legislative body by a majority vote
approved the imposition of the tax; or
(II)
for at least 12 months from the date the written results are submitted to the
city or town legislative body, the city or town legislative body may not
submit to the county legislative body a written notice of the intent to submit
an opinion question under this part because a majority of the county's
registered voters voted against the county imposing the tax and the majority
of the registered voters who are residents of the city or town described in
Subsection
(6)(a)
voted against the imposition of the county tax; or
(B)
the city or town legislative body may submit the opinion question to the
residents of the city or town in accordance with this part because although a
majority of the county's registered voters voted against the county imposing the
tax, the majority of the registered voters who are residents of the city or town
voted for the imposition of the county tax.
(c)
Notwithstanding Subsection
(6)(b)
, at any time a county legislative body may
provide a city or town legislative body described in Subsection
(6)(a)
a written
resolution passed by the county legislative body stating that the county legislative
body is not seeking to impose a tax under
Part 7, County Option Funding for
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities
, which
permits the city or town legislative body to submit under Subsection
(1)
an opinion
question to the city's or town's residents.
(7)
(a)
If a city or town reauthorizes a tax under this part in accordance with Subsection
(4)
, the city or town shall provide to the commission notice of the reauthorization that
meets the requirements of Subsection
(5)(b)(ii)
at least 90 days before the first day of
the calendar quarter in which the reauthorization first takes effect.
(b)
The commission may not enforce a tax under this part due for reauthorization unless
the commission receives timely notice of the reauthorization as provided in
Subsection
(7)(a)
.
Section 26. Section
59-12-2403
is amended to read:
59-12-2403
Effective
07/01/26
. Enactment, reauthorization, repeal, or change
in the rate of an emergency services tax -- Annexation -- Notice -- Requirements for
enforcement of reauthorized tax.
(1)
(a)
Except as provided in Subsection
(2)
,
and subject to Subsection
(6)
,
if a qualifying
political subdivision enacts
, reauthorizes,
or repeals an emergency services tax or
changes the rate of an emergency services tax, the enactment,
reauthorization,
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 that
meets the requirements of Subsection
(1)(b)
from the qualifying political
subdivision.
(b)
The notice described in Subsection
(1)(a)(ii)
shall state:
(i)
that the qualifying political subdivision will enact,
reauthorize,
repeal, or change
the rate of an emergency services tax;
(ii)
the statutory authority for the emergency services tax;
(iii)
the effective date of the enactment,
reauthorization,
repeal, or change in the rate
of the emergency services tax; and
(iv)
if the
county
qualifying political subdivision
enacts
, reauthorizes,
or changes the
rate of the emergency services tax
:
, the rate of the emergency services tax.
(A)
the rate of the emergency services tax; and
(B)
the cities, towns, and unincorporated areas within which the emergency
services tax is imposed.
(2)
(a)
If the billing period for a transaction begins before the effective date of the
enactment
or reauthorization
of an emergency services tax or the increase in the rate
of an emergency services tax, the enactment
or reauthorization
of the tax or the tax
rate increase shall take effect on the first day of the first billing period that begins
after the effective date of the enactment
or reauthorization
of the tax or the tax rate
increase.
(b)
If the billing period for a transaction begins before the effective date of the repeal of
an emergency services tax or the decrease in the rate of an emergency services tax,
the repeal of the tax or the tax rate decrease shall take effect on the first day of the
last billing period that began before the effective date of the repeal of the tax or the
tax rate decrease.
(c)
If a tax due under this part on a catalogue sale is computed on the basis of sales and
use tax rates published in the catalogue, an enactment,
reauthorization,
repeal, or
change in the rate of a tax described in Subsection
(1)(a)
shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
beginning 60 days after the effective date of the enactment,
reauthorization,
repeal, or change in the rate of the tax under Subsection
(1)(a)
.
(3)
(a)
Except as provided in Subsection
(4)
, if an annexation will result in the enactment,
repeal, or change in the rate of an emergency services tax 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 political subdivision 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 the enactment,
repeal, or change in the rate of an emergency services tax for the annexing area;
(ii)
the statutory authority for the emergency services tax;
(iii)
the effective date of the enactment, repeal, or change in the rate of the emergency
services tax; and
(iv)
if the annexation results in the enactment or change in the rate of an emergency
services tax for the annexing area, the rate of the emergency services tax.
(4)
(a)
If the billing period for a transaction begins before the effective date of the
enactment of an emergency services tax or the increase in the rate of an emergency
services tax, the enactment of the tax or the tax rate increase shall take effect on the
first day of the first billing period that begins after the effective date of the enactment
of the tax or the tax rate increase.
(b)
If the billing period for a transaction begins before the effective date of the repeal of
an emergency services tax or the decrease in the rate of an emergency services tax,
the repeal of the tax or the tax rate decrease shall take effect on the first day of the
last billing period that began before the effective date of the repeal of the tax or the
tax rate decrease.
(c)
If a tax due under this part 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)
shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
beginning 60 days after the effective date of the enactment, repeal, or change in
the rate of the tax under Subsection
(3)(a)
.
(5)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, and for
purposes of Subsections
(2)(c)
and (4)(c), the commission may by rule define the term
"catalogue sale."
(6)
(a)
If a qualifying political subdivision reauthorizes a tax under this part in
accordance with Subsection
59-12-2402(5)(c)
, the qualifying political subdivision
shall provide to the commission notice of the reauthorization that meets the
requirements of Subsection
(1)(b)
at least 90 days before the first day of the calendar
quarter in which the reauthorization first takes effect.
(b)
The commission may not enforce a tax under this part due for reauthorization unless
the commission receives timely notice of the reauthorization as provided in
Subsection
(6)(a)
.
Section 27.
Repealer.
Tax credit -- Items using cleaner burning fuels.
Short title.
Definitions.
Tax on transfer of taxable estate of residents -- Amount -- Credit --
Property of a resident defined.
Tax on transfer of taxable estate of nonresidents -- Amount --
Property of a nonresident defined -- Exemptions.
Tax returns -- Date to be filed -- Extensions -- Maximum time
allowed.
Payment date -- Extensions.
Delinquencies -- Interest -- Penalty.
Deposit of money collected -- Refund of overpayments -- Limitation.
Tax as lien -- Instruments issued upon payment -- Certificate of
transfer.
Personal representative -- Payment of tax -- Sale of property --
Liability.
Personal representative -- Final account -- Approval by commission.
Administration by commission -- Taxpayer notification of change on
federal estate tax return -- Assessment of deficiency -- Appeal.
Confidentiality of information.
Effective date of chapter.
Section 28.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect May 6, 2026.
(2)
The actions affecting the following sections take effect on July 1, 2026:
(a)
Section 59-12-102 (Effective 07/01/26);
(b)
Section 59-12-203 (Effective 07/01/26);
(c)
Section 59-12-603 (Effective 07/01/26);
(d)
Section 59-12-703 (Effective 07/01/26);
(e)
Section 59-12-806 (Effective 07/01/26);
(f)
Section 59-12-1201 Effective 07/01/26);
(g)
Section 59-12-1402 (Effective 07/01/26); and
(h)
Section 59-12-2403 (Effective 07/01/26).
Section 29.
Retrospective operation.
The following sections have retrospective operation for a taxable year beginning on or
after January 1, 2026:
(1)
Section 59-1-401 (Effective 05/06/26) (Applies beginning 01/01/26);
(2)
Section 59-2-303.3 (Effective 05/06/26) (Applies beginning 01/01/26);
(3)
Section 59-6-103 (Effective 05/06/26) (Applies beginning 01/01/26);
(4)
Section 59-7-606 (Effective 05/06/26) (Applies beginning 01/01/26);
(5)
Section 59-10-1018 (Effective 05/06/26) (Applies beginning 01/01/26);
(6)
Section 59-10-1403.2 ( Effective 05/06/26) (Applies beginning 01/01/26);
(7)
Section 59-11-101 (Effective 05/06/26) (Applies beginning 01/01/26);
(8)
Section 59-11-102 (Effective 05/06/26) (Applies beginning 01/01/26);
(9)
Section 59-11-103 (Effective 05/06/26) (Applies beginning 01/01/26);
(10)
Section 59-11-104 (Effective 05/06/26) (Applies beginning 01/01/26);
(11)
Section 59-11-105 (Effective 05/06/26) (Applies beginning 01/01/26);
(12)
Section 59-11-106 (Effective 05/06/26) (Applies beginning 01/01/26);
(13)
Section 59-11-107 (Effective 05/06/26) (Applies beginning 01/01/26);
(14)
Section 59-11-109 (Effective 05/06/26) (Applies beginning 01/01/26);
(15)
Section 59-11-110 (Effective 05/06/26) (Applies beginning 01/01/26);
(16)
Section 59-11-111 (Effective 05/06/26) (Applies beginning 01/01/26);
(17)
Section 59-11-112 (Effective 05/06/26) (Applies beginning 01/01/26);
(18)
Section 59-11-113 (Effective 05/06/26) (Applies beginning 01/01/26);
(19)
Section 59-11-114 (Effective 05/06/26) (Applies beginning 01/01/26); and
(20)
Section 59-11-115 (Effective 05/06/26) (Applies beginning 01/01/26).
3-10-26 4:29 PM