59-12-123. Definitions -- Collection, remittance, and payment of a tax on direct mail.
(1) As used in this section: "Advertising and promotional direct mail" means printed material: that meets the definition of direct mail under Section; and 59-12-102 if the primary purpose of the printed material is to: attract public attention to a business, organization, person, or product; or attempt to popularize, secure, or sell financial support for a business, organization, person, or product. For purposes of Subsection, "product" means: (1)(a) tangible personal property; a product transferred electronically; or a service.
(2) Notwithstanding Sectionand except as provided in Subsection, a purchaser of advertising and promotional direct mail may provide to a seller at the time of a transaction: 59-12-107 (7) a form: prescribed by the commission; and indicating that the transaction is a direct mail transaction; an agreement certificate of exemption indicating that the transaction is a direct mail transaction; a direct payment permit under Section; or 59-12-107.1 information that indicates the locations of the recipients to which the advertising and promotional direct mail is delivered.
(3) If a seller receives a form, certificate, or permit described in Subsection,, orfrom a purchaser: (2)(a) (b) (c) if the seller acts in the absence of bad faith, the seller: is not liable to collect or remit agreement sales and use tax for that transaction; and shall keep a record of the form, certificate, or permit described in Subsection,, orfor three years after the date the seller files a return with the commission reporting that transaction; and (2)(a) (b) (c) the purchaser that provides the form, certificate, or permit described in Subsection,, orshall: (2)(a) (b) (c) determine the amount of agreement sales and use tax due on the transaction in the location where the advertising and promotional direct mail is delivered; and report and remit to the commission the amount described in Subsectionin accordance with Section. (3)(b)(i) 59-12-107
(4) A form or certificate described in Subsectionoris in effect for all transactions between the seller described in Subsectionand the purchaser described in Subsection: (2)(a) (b) (3) (3) beginning on the date the seller receives the form or certificate in accordance with Subsectionor; and (2)(a) (b) ending on the date the purchaser revokes the form or certificate in writing.
(5) If a seller receives the information described in Subsectionfrom a purchaser that indicates the locations of the recipients to which the advertising and promotional direct mail is delivered, the seller shall collect and remit agreement sales and use tax to the commission in accordance with the information the purchaser provides. (2)(d) If a seller collects and remits agreement sales and use tax to the commission in accordance with Subsection, the seller is not liable for any further obligation to collect or remit agreement sales and use tax to the commission on the transaction unless the seller acts in bad faith. (5)(a)
(6) If a purchaser of advertising and promotional direct mail described in Subsectiondoes not provide the seller with the form, certificate, permit, or information described in Subsectionat the time of the transaction, the seller shall: (2) (2) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection; and 59-12-211(6) collect and remit to the commission the amount described in Subsectionin accordance with Section. (6)(a) 59-12-107
(7) Except as provided in Subsection, this Subsectionapplies to direct mail if the direct mail is delivered or distributed: (7)(b) (7) from a location within the state; and to a location within the state. A purchaser of direct mail may provide a seller with: a form: prescribed by the commission; and indicating that the transaction is a direct mail transaction; an agreement certificate of exemption indicating that the transaction is a direct mail transaction; or a direct payment permit under Section. 59-12-107.1 If a seller receives a form, certificate, or permit described in Subsectionfrom a purchaser: (7)(b) if the seller acts in the absence of bad faith, the seller: is not liable to collect or remit agreement sales and use tax for that transaction; and shall keep a record of the form, certificate, or permit described in Subsectionfor three years after the date the seller files a return with the commission reporting the transaction; and (7)(b) the purchaser that provides the form, certificate, or permit described in Subsectionshall: (7)(b) determine the amount of agreement sales and use tax due on the transaction in accordance with Section; and 59-12-211.1 report and remit to the commission the amount described in Subsectionin accordance with Section. (7)(c)(ii)(A) 59-12-107 Except as provided in Subsection, if a purchaser of direct mail described in Subsectiondoes not provide the seller with the form, certificate, or permit described in Subsectionat the time of the transaction, the seller shall: (7)(f) (7)(b) (7)(b) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection; 59-12-211(6) collect and remit to the commission the amount described in Subsectionin accordance with Section; and (7)(d)(i) 59-12-107 is not liable for any additional sales and use tax under this chapter. If a seller knows that direct mail will be delivered or distributed to a location in another state, the seller shall: determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection; and (5) collect and remit to the commission the amount described in Subsectionin accordance with Section. (7)(e)(i) 59-12-107 A seller may: elect to determine the amount of agreement sales and use tax due on the sale of advertising and promotional direct mail in accordance with Subsectionor; and (5) (6) collect and remit to the commission the amount described in Subsectionin accordance with Section. (7)(f)(i) 59-12-107
(8) A form, certificate, or permit described in Subsectionis in effect for all transactions between a seller and a purchaser: (7)(b) beginning on the date the seller receives the form, certificate, or permit in accordance with Subsection; and (7)(b) ending on the date the purchaser revokes the form, certificate, or permit in writing.
(9) This section applies to: a transaction that is a sale of a service only if the service is an integral part of the production and distribution of direct mail; or a bundled transaction that includes advertising and promotional direct mail only if the primary purpose of the transaction is the sale of tangible personal property, a product transferred electronically, or a service that is advertising and promotional direct mail.
(10) This section does not apply to a transaction that includes: the development of billing information; or the provision of any data processing service that is more than incidental regardless of whether advertising and promotional direct mail is included in the same mailing.