2022 Utah Code
Title 59 - Revenue and Taxation
Chapter 12 - Sales and Use Tax Act
Part 1 - Tax Collection
Section 127 - Purchaser relief from liability.

Universal Citation: UT Code § 59-12-127 (2022)
59-12-127. Purchaser relief from liability.
  • (1)
    • (a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
      • (i) the purchaser's seller or certified service provider relies on incorrect data provided by the commission:
        • (A) on a tax rate;
        • (B) on a boundary;
        • (C) on a taxing jurisdiction; or
        • (D) in the taxability matrix the commission provides in accordance with the agreement; or
      • (ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
        • (A) on a tax rate;
        • (B) on a boundary;
        • (C) on a taxing jurisdiction; or
        • (D) in the taxability matrix the commission provides in accordance with the agreement.
    • (b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on incorrect data provided by the commission is as a result of conduct that is:
      • (i) fraudulent;
      • (ii) intentional; or
      • (iii) willful.
  • (2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
    • (a) the purchaser's seller or certified service provider relies on:
      • (i) incorrect data provided by the commission:
        • (A) on a tax rate;
        • (B) on a boundary; or
        • (C) on a taxing jurisdiction; or
      • (ii) an erroneous classification by the commission:
        • (A) in the taxability matrix the commission provides in accordance with the agreement; and
        • (B) with respect to a term:
          • (I) in the library of definitions; and
          • (II) that is:
            • (Aa) listed as taxable or exempt;
            • (Bb) included in or excluded from "sales price"; or
            • (Cc) included in or excluded from a definition; or
    • (b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
      • (i) incorrect data provided by the commission:
        • (A) on a tax rate;
        • (B) on a boundary; or
        • (C) on a taxing jurisdiction; or
      • (ii) an erroneous classification by the commission:
        • (A) in the taxability matrix the commission provides in accordance with the agreement; and
        • (B) with respect to a term:
          • (I) in the library of definitions; and
          • (II) that is:
            • (Aa) listed as taxable or exempt;
            • (Bb) included in or excluded from "sales price"; or
            • (Cc) included in or excluded from a definition.


Enacted by Chapter 384, 2008 General Session
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