Utah State Legislature

            (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