SB 40: Sales and Use Tax Act Amendments - Utah

Substitute #2 → Enrolled · 2 edits · Mar 26, 2025

MINOR

The bill text was finalized by removing a coordination clause that previously intended to fix a conflict with another bill (S.B. 67) and by updating the official timestamps of the legislative process. The substantive policy content regarding tax rates, exemptions, and fund distribution remains unchanged from the previous version.

Scope change

The bill's scope regarding tax provisions remains unchanged; the only change is the removal of a specific coordination clause intended to resolve a potential conflict with another bill.

REQUIREMENT

Removed Section 15, which contained a coordination clause intended to amend Section 59-12-802 if this bill and S.B. 67 both passed, effectively deleting the plan to fix a potential conflict between the two bills.

TECHNICAL

Updated the timestamp at the end of the document from March 2, 2025, to March 14, 2025, reflecting the finalization of the enrolled bill.

Introduced → Substitute #1 · 5 edits

MODERATE

This bill was revised to add a coordination clause that resolves potential conflicts with a companion bill (S.B. 67) regarding rural health care taxes. The revision also corrects a typo in the tax duration language and adds specific transitional rules for counties that reauthorize their taxes after 2024.

Scope change

The bill now explicitly addresses coordination with S.B. 67 and clarifies the reauthorization timeline for existing rural health care taxes.

REQUIREMENT

Added a coordination clause to resolve legal conflicts if both S.B. 40 and S.B. 67 pass, ensuring consistent application of tax laws.

Corrected a typo in Section 8 where 'ten' was written as 'ten10-year', clarifying the 10-year reauthorization period for rural health care taxes.

TIMELINE

Added new transitional provisions (Section 8(d) and Section 9(c)) exempting counties and cities that imposed taxes before January 1, 2024, from voter approval requirements for their first reauthorization after 2024.

TECHNICAL

Removed the 'Committee Note' and 'Legislative Vote' sections, which were likely internal tracking markers not needed in the final substitute version.

Reorganized the header to list the coordination clause as a special provision and updated the list of affected code sections to reflect the new coordination clause.

Substitute #1 → Substitute #2 · 4 edits

MODERATE

This bill amends Utah's Sales and Use Tax Act to clarify tax amnesty periods for sellers relying on State Tax Commission data, update administrative charge distribution rules, and coordinate with a companion bill (S.B. 67) regarding rural county health care tax reauthorization. The changes primarily address technical corrections, clarify liability protections for businesses, and ensure consistent implementation of local option taxes.

Scope change

The bill maintains the same scope of applicability but clarifies existing provisions and adds coordination language to resolve potential conflicts with another tax amendment bill.

REQUIREMENT

Clarified the amnesty period for sellers who fail to collect taxes due to errors in State Tax Commission databases, establishing a 90-day notification period before liability begins.

FISCAL

Updated administrative charge distribution rules for various local option sales taxes to clarify how revenue is distributed to counties, municipalities, and state agencies.

TIMELINE

Added coordination clause to address potential conflicts with S.B. 67 regarding rural county health care tax reauthorization requirements and effective dates.

TECHNICAL

Made technical corrections to formatting and language throughout the Sales and Use Tax Act amendments to improve clarity and consistency.

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