2006 Utah Code - 59-12-105 — Certain exempt sales to be reported -- Penalties.

     59-12-105.   Certain exempt sales to be reported -- Penalties.
     (1) An owner or purchaser shall report to the commission the amount of sales or uses exempt under Subsection 59-12-104(14) or (46).
     (2) A report required by Subsection (1) shall be filed:
     (a) with the commission; and
     (b) on a form prescribed by the commission.
     (3) (a) Notwithstanding Section 59-1-401, and except as provided in Subsections (3)(b) and (4), if the owner or purchaser fails to report the full amount of the exemptions granted under Subsection 59-12-104(14) or (46) on the report required by Subsection (1), the commission shall impose a penalty equal to the lesser of:
     (i) 10% of the sales and use tax that would have been imposed if the exemption had not applied; or
     (ii) $1,000.
     (b) Notwithstanding Subsection (3)(a)(i), the commission may not impose a penalty under Subsection (3)(a)(i) if the owner or purchaser files an amended report:
     (i) containing the amount of the exemption; and
     (ii) before the owner or purchaser receives a notice of audit from the commission.
     (4) (a) The commission may waive, reduce, or compromise a penalty imposed under this section if the commission finds there are reasonable grounds for the waiver, reduction, or compromise.
     (b) If the commission waives, reduces, or compromises a penalty under Subsection (4)(a), the commission shall make a record of the grounds for waiving, reducing, or compromising the penalty.

Amended by Chapter 253, 2006 General Session
Amended by Chapter 181, 2006 General Session
Amended by Chapter 182, 2006 General Session