Tax Commission, Auditing

Section R865-12L-14

Local Sales and Use Tax Distributions and Redistributions Pursuant to Utah Code Ann. Sections 59-12-210 and 59-12-210.1

Notice of Proposed Rule

(Amendment)

DAR File No.: 36171
Filed: 05/11/2012 12:15:32 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed rule is necessary to implement H.B. 476 (2012 General Session).

Summary of the rule or change:

The proposed amendment updates the current rule on sales tax redistributions to reflect that under H.B. 476 (2012), telecommunications charges may only be redistributed in certain circumstances.

State statutory or constitutional authorization for this rule:

• Section 69-2-5.8
• Section 59-12-210
• Section 59-12-210.1

Anticipated cost or savings to:

the state budget:

None--Any fiscal impact would have been considered in H.B. 476 (2012).

local governments:

None--Any fiscal impact would have been considered in H.B. 476 (2012).

small businesses:

None--Any fiscal impact would have been considered in H.B. 476 (2012).

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

None--Any fiscal impact would have been considered in H.B. 476 (2012).

Compliance costs for affected persons:

None--The proposed amendment indicates the instances in which the Tax Commission may redistribute telecommunications charges. Telecommunications charges will now be redistributed under the same circumstances as sales taxes.

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

This rule change reflects a statutory change thus creates no independent fiscal impact.

Michael Cragun, 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:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@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:

07/02/2012

This rule may become effective on:

07/09/2012

Authorized by:

Michael Cragun, Tax Commissioner

R865. Tax Commission, Auditing.

R865-12L. Local Sales and Use Tax.

R865-12L-14. [Local]Qualifying Sales and Use Tax and Telecommunications Charge Distributions and Redistributions Pursuant to Utah Code Ann. Sections 59-12-210, [and ]59-12-210.1, and 69-2-5.8 .

(1) For purposes of making a redistribution of [sales and use tax] revenues under [Section]Sections 59-12-210.1 and 69-2-5.8:

(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]qualifying sales and use tax revenues and qualifying telecommunications charge 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]qualifying sales and use tax or qualifying telecommunications charge by a significant segment of an industry if the error increases or decreases the overall distribution of [sales and use tax]qualifying sales and use tax revenues and qualifying telecommunications charge revenues to a county, city, or town by $10,000 or more.

(2) The commission shall, on a monthly basis, furnish each county, city, and town with the listings of [local]qualifying sales and use taxes and qualifying telecommunications charges remitted for transactions located within the county, city, or town.

(a) After receiving each listing, the county, city, or town shall advise the commission within 90 days:

(i) if the listing is incorrect; and

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

(b) The commission shall make subsequent distributions based on the notification the commission receives from a county, city, or town under Subsection (2)(a).

(3) If a redistribution is required by [Section]Sections 59-12-210.1 or 69-2-5.8, the commission shall provide the notice of redistribution described in [Subsection]Subsections 59-12-210.1(2) and 69-2-5.8(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: [October 13, 2011]2012

Notice of Continuation: January 3, 2012

Authorizing, and Implemented or Interpreted Law: 59-12-118; 59-12-205; 59-12-207; 59-12-210; 59-12-210.1; 59-12-301; 59-12-355; 59-12-501; 59-12-502; 59-12-602; 59-12-603; 59-12-703; 59-12-802; 59-12-804