DAR File No. 27931

Tax Commission, Auditing

R865-19S-8

Bonds and Securities Pursuant to Utah Code Ann. Section 59-12-107

NOTICE OF PROPOSED RULE

DAR File No.: 27931
Filed: 05/18/2005, 04:43
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This section is being deleted because S.B. 170 (2005) codified the criteria for determining when a sales tax vendor must be bonded. Accordingly, this rule is no longer necessary. (DAR NOTE: S.B. 170 is found at UT L 2005 Ch 198, and was effective 05/02/2005.)

Summary of the rule or change:

The section is being deleted.

State statutory or constitutional authorization for this rule:

Section 59-12-107

Anticipated cost or savings to:

the state budget:

Any impacts would have been taken into account in S.B. 170 (2005).

local governments:

Any impacts would have been taken into account in S.B. 170 (2005).

other persons:

Any impacts would have been taken into account in S.B. 170 (2005).

Compliance costs for affected persons:

Based on the provisions of S.B. 170 (2005), bond amounts are significantly increased, as are the circumstances under which bonding is required. As a result, some vendors may need to be bonded who were not bonded before; and others may see an increase in the cost of bonding because of the increased bond amount.

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

The fiscal impacts (increased bond amounts) were accounted for when the 2005 Legislature passed S.B. 170. Pam Hendrickson, Commission Chair

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

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@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:

07/15/2005

This rule may become effective on:

07/16/2005

Authorized by:

Pam Hendrickson, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

[R865-19S-8. Bonds and Securities Pursuant to Utah Code Ann. Section 59-12-107.

A. Factors the commission will consider in determining whether a vendor must post security to ensure compliance with the provisions of Title 59, Chapter 12, include:

1. failure to file returns;

2. failure to make payments;

3. filing of returns that are improper ; and

4. payment of sales tax with a check that is not honored.

B. The Tax Commission may accept as security a valid corporate surety bond, United States treasury bond, or other negotiable security it deems adequate.

C. The bond will be released only upon written request and after a review of all circumstances or upon cessation of business if no liability exists.

]KEY: charities, tax exemptions, religious activities, sales tax

[December 21, 2004]2005

Notice of Continuation April 5, 2002

59-12-107

ADDITIONAL INFORMATION

PLEASE NOTE:

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For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.