2006 Utah Code - 59-12-104.3 — Credit for certain repossessions of a motor vehicle.

     59-12-104.3.   Credit for certain repossessions of a motor vehicle.
     (1) (a) Subject to Subsections (2) and (3), a seller that collects a tax under this chapter on the sale of a motor vehicle may claim a credit for a tax under this chapter for a motor vehicle that:
     (i) has been repossessed; and
     (ii) that the seller resells.
     (b) A seller of a motor vehicle other than the seller that collects a tax under this chapter on the sale of that motor vehicle may claim a credit for a tax under this chapter:
     (i) for a motor vehicle that the seller:
     (A) repossessed; and
     (B) resells; and
     (ii) if the seller that collected the tax under this chapter on that motor vehicle:
     (A) is no longer doing business in this state; and
     (B) does not owe a tax under this chapter.
     (2) The amount of the credit allowed by Subsection (1) is equal to the product of:
     (a) the portion of the motor vehicle's purchase price that:
     (i) was subject to a tax under this chapter; and
     (ii) remains unpaid after the motor vehicle is resold; and
     (b) the tax rate:
     (i) (A) for a seller that collects a tax in accordance with Subsection 59-12-107(1)(b), described in Subsection 59-12-103(2)(b)(ii); or
     (B) for a seller other than a seller described in Subsection (2)(b)(i)(A), described in Subsection 59-12-103(2)(a);
     (ii) imposed on the motor vehicle's purchase price; and
     (iii) imposed on the date the motor vehicle was purchased by the person that owns the motor vehicle at the time of the repossession.
     (3) If a seller recovers any portion of a motor vehicle's unpaid purchase price that is used to calculate a credit allowed by Subsection (1)(b), the seller shall report and remit a tax under this chapter to the commission:
     (a) on the portion of the motor vehicle's unpaid purchase price that:
     (i) the seller recovers; and
     (ii) is used to calculate the credit allowed by Subsection (1)(b); and
     (b) on a return filed for the time period for which the portion of the motor vehicle's unpaid purchase price is recovered.

Amended by Chapter 253, 2006 General Session