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Senate approves measure to strengthen tax-collection licensing after audit
Summary
Senate Bill 170, described as a response to a legislative audit, passed the Utah Senate Feb. 22, 2005. The bill creates licensing and bonding mechanisms to strengthen State Tax Commission withholding and sales-tax collection and to deter businesses that create liabilities by disappearing.
The Utah Senate advanced Senate Bill 170 on Feb. 22, 2005, a measure described by Senator Bramble as a response to a legislative audit of the State Tax Commission's collection procedures.
Senator Bramble told the chamber the bill provides a licensing and bonding mechanism for businesses responsible for withholding and sales taxes and seeks to "strengthen collection procedures and eliminate some of the businesses that will ... run up a huge liability, collapse, and in the same location spring up again." He said the bill was brought forward by the Tax Commission and was reported unanimously out of committee.
Procedure and vote
After brief floor discussion and a call of the question, the Senate took a roll-call vote. The clerk reported 26 yes votes, 0 nay votes, and 3 absent; the bill was ordered read for the third time.
What it means
According to the sponsor, SB 170 is intended to give the State Tax Commission additional enforcement tools—licensing and bonding—to improve tax compliance among businesses that collect sales and withholding taxes. The transcript does not contain the bill text or fiscal note; implementation details and the precise licensing/bonding standards were not specified on the floor.
Quote
"It's just giving more teeth in the collection process," Senator Bramble said of the bill's purpose.
Next steps
Senate Bill 170 was ordered read for the third time and will proceed through the usual third-reading and final-passage steps.
