Tax Commission, Auditing

Section R865-12L-14

Quarterly List of Local Sales and Use Tax Distributions Pursuant to Utah Code Ann. Section 59-12-109

Notice of Proposed Rule

(Amendment)

DAR File No.: 33048
Filed: 10/14/2009 10:20:06 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

S.B. 235 (2009 General Session) enacted Section 59-12-210.1. This section requires the commission to define, by rule, "extraordinary circumstances" that trigger the commission to redistribute sales tax dollars from an original recipient of those dollars to a secondary recipient. (DAR NOTE: S.B. 235 (2009) is found at Chapter 240, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

The proposed rule defines "extraordinary circumstances" as certain errors that impact sales tax distribution to a locality by $10,000 or more; provides that a notice of redistribution will be sent only if a locality is impacted $1,000 or more by a redistribution.

State statutory or constitutional authorization for this rule:

• Section 59-12-210
• Section 59-12-210.1

Anticipated cost or savings to:

the state budget:

None--Any impacts were considered in S.B. 235 (2009).

local governments:

None--Any impacts were considered in S.B. 235 (2009).

small businesses:

None--Any impacts were considered in S.B. 235 (2009).

persons other than small businesses, businesses, or local governmental entities:

None--Any impacts were considered in S.B. 235 (2009).

Compliance costs for affected persons:

None--The criteria in this proposed change will trigger redistributions of local sales tax revenues previously distributed. As a result of these redistributions, some local entities will receive increased revenues, while others will receive decreased revenues.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are none. The rule impacts local sales tax distributions in limited instances.

D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• D'Arcy Dixon at the above address, by phone at 801-297-3906, by FAX at 801-297-3901, or by Internet E-mail at ddixon@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/01/2009

This rule may become effective on:

12/10/2009

Authorized by:

Pam Hendrickson, Commission Chair

R865. Tax Commission, Auditing.

R865-12L. Local Sales and Use Tax.

R865-12L-14. [Quarterly List of ]Local Sales and Use Tax Distributions and Redistributions Pursuant to Utah Code Ann. [Section 59-12-109]Sections 59-12-210 and 59-12-210.1 .

(1) For purposes of making a redistribution of sales and use tax revenues under Section 59-12-210.1:

(a) "de minimis" means less than $1,000; and

(b) "extraordinary circumstances" means the following circumstances that the commission becomes aware of:

(i) an error in the commission's tax systems or procedures that increases or decreases the overall distribution of sales and use tax revenues to a county, city, or town by $10,000 or more; or

(ii) an error in the calculation, collection, or reporting of a locally imposed sales and use tax by a significant segment of an industry if the error increases or decreases the overall distribution of sales and use tax revenues to a county, city, or town by $10,000 or more.

[A.](2) [Upon receipt of a written request from the head of a political subdivision of the state of Utah, the Tax Commission shall periodically furnish the governing body quarterly]The commission shall, on a monthly basis, furnish each county, city, and town with the listings of local [sales/use]sales and use taxes remitted [by businesses]for transactions located within the [political subdivision]county, city, or town.

[1.](a) After receiving each listing, the [governing body of the political subdivision]county, city, or town shall advise the [Tax Commission]commission within 90 days:

[(a)](i) [that]if the listing is [correct, or alternatively]incorrect; and

[(b)](ii) make corrections regarding firms omitted from the list or firms listed but not doing business in their taxing jurisdiction.

[2.](b) [Once the Tax Commission receives notification from a political subdivision]The commission shall make subsequent distributions based on the notification the commission receives from a county, city, or town under Subsection (2)(a)[that the listing is correct, or corrects any errors disclosed on the list, subsequent distributions will be based on that listing as verified or adjusted].

[3. If the governing body of the political subdivision fails to notify the Tax Commission of any omitted businesses within the ninety-day period, the political subdivision is precluded from making any claims based upon such omission and the Tax Commission shall not be held liable for any such omissions.

B. The information furnished is confidential data. No official or employee of a municipality or county shall use this local sales and use tax information for other than tax or license purposes. The written request for informational listings must acknowledge these confidentiality provisions and accept responsibility for safeguarding the listings.](3) If a redistribution is required by Section 59-12-210.1, the commission shall provide the notice of redistribution described in Subsection 59-12-210.1(2) to each original and secondary recipient political subdivision that is impacted by the redistribution in an amount that exceeds the de minimis amount.

 

KEY: taxation, sales tax, restaurants, collections

Date of Enactment or Last Substantive Amendment: [January 1 ], 2009

Notice of Continuation: March 16, 2007

Authorizing, and Implemented or Interpreted Law: 59-12-210 and 59-12-210.1