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H.B. 27
1
SALES AND USE TAX MODIFICATIONS
2
2007 GENERAL SESSION
3
STATE OF UTAH
4
Chief Sponsor: Ben C. Ferry
5
Senate Sponsor:
Howard A. Stephenson
6
7
LONG TITLE
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General Description:
9
This bill amends the Sales and Use Tax Act.
10
Highlighted Provisions:
11
This bill:
12
. modifies definitions;
13
. addresses the tax rates at which a seller that does not have sufficient contacts with
14
the state to be required to collect and remit sales and use taxes may voluntarily
15
collect and remit sales and use taxes on:
16
. food and food ingredients; or
17
. a bundled transaction attributable to food and food ingredients and tangible
18
personal property other than food and food ingredients;
19
. addresses the effective dates of sales and use tax repeals, changes, or increases for
20
certain taxes and transactions;
21
. addresses the distribution of the local taxes that are voluntarily collected and
22
remitted by a seller that does not have sufficient contacts with the state to be
23
required to collect and remit sales and use taxes;
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. addresses the revenues to be deposited into the:
25
. Centennial Highway Fund Restricted Account; and
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. Transportation Investment Fund of 2005;
27
. addresses the calculation of the credit for certain repossessions of a motor vehicle;
28
. addresses the calculation of the amount a seller that collects and remits sales and
29
use taxes on a monthly basis may retain;
30
. provides that the portion of the tax under the Tourism, Recreation, Cultural, and
31
Convention Facilities Tax part, that is imposed on sales by restaurants, is imposed
32
on sales of prepared food and food and food ingredients;
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. modifies an appropriation to the State Tax Commission to provide that, in addition
34
to other purposes allowed in the appropriation language, monies may be expended
35
to reimburse certain sellers for expenditures to pay for in-house programming to
36
account for sales under the reduced sales and use tax rate imposed on food and food
37
ingredients; and
38
. makes technical changes.
39
Monies Appropriated in this Bill:
40
None
41
Other Special Clauses:
42
This bill provides an effective date and provides for retrospective operation.
43
Utah Code Sections Affected:
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AMENDS:
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10-1-405, as last amended by Chapter 253, Laws of Utah 2006
46
11-41-102, as last amended by Chapter 282, Laws of Utah 2006
47
59-12-102, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
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59-12-103, as last amended by Chapter 9, Laws of Utah 2006, Third Special Session
49
59-12-104.3, as last amended by Chapter 253, Laws of Utah 2006
50
59-12-108, as last amended by Chapters 253 and 282, Laws of Utah 2006
51
59-12-603, as last amended by Chapters 134 and 253, Laws of Utah 2006
52
Uncodified Material Affected:
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AMENDS UNCODIFIED MATERIAL:
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Uncodified Section 3, Chapter 9, Laws of Utah 2006, Third Special Session
55
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
10-1-405
is amended to read:
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10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
59
Rulemaking authority -- Charge for services.
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(1) Subject to the other provisions of this section, the commission shall collect,
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enforce, and administer any municipal telecommunications license tax imposed under this part
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pursuant to:
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(a) the same procedures used in the administration, collection, and enforcement of the
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state sales and use tax under:
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(i) Title 59, Chapter 1, General Taxation Policies; and
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(ii) Title 59, Chapter 12, Part 1, Tax Collection:
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(A) except for:
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(I) Subsection
59-12-103
(2)[(e)](h);
69
(II) Section
59-12-104
;
70
(III) Section
59-12-104.1
;
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(IV) Section
59-12-104.2
; and
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(V) Section
59-12-107.1
; and
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(B) except that for purposes of Section
59-12-110
, the term "taxpayer" may include a
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customer from whom a municipal telecommunications license tax is recovered in accordance
75
with Subsection
10-1-403
(2); and
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(b) a uniform interlocal agreement:
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(i) between:
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(A) the municipality that imposes the municipal telecommunications license tax; and
79
(B) the commission;
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(ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
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(iii) that complies with Subsection (2)(a); and
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(iv) that is developed by rule in accordance with Subsection (2)(b).
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(2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
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the commission shall:
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(i) transmit monies collected under this part:
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(A) monthly; and
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(B) by electronic funds transfer by the commission to the municipality;
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(ii) conduct audits of the municipal telecommunications license tax;
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(iii) charge the municipality for the commission's services under this section in an
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amount:
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(A) sufficient to reimburse the commission for the cost to the commission in rendering
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the services; and
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(B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
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license tax imposed by the ordinance of the municipality; and
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(iv) collect, enforce, and administer the municipal telecommunications license tax
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authorized under this part pursuant to the same procedures used in the administration,
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collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
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(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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commission shall develop a uniform interlocal agreement that meets the requirements of this
100
section.
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(3) The administrative fee charged under Subsection (2)(a) shall be:
102
(a) deposited in the Sales and Use Tax Administrative Fees Account; and
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(b) used for administration of municipal telecommunications license taxes under this
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part.
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Section 2.
Section
11-41-102
is amended to read:
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11-41-102. Definitions.
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As used in this chapter:
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(1) "Agreement" means an oral or written agreement between a:
109
(a) (i) county; or
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(ii) municipality; and
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(b) person.
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(2) "Municipality" means a:
113
(a) city; or
114
(b) town.
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(3) "Payment" includes:
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(a) a payment;
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(b) a rebate;
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(c) a refund; or
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(d) an amount similar to Subsections (3)(a) through (c).
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(4) "Regional retail business" means a:
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(a) retail business that occupies a floor area of more than 80,000 square feet;
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(b) dealer as defined in Section
41-1a-102
;
123
(c) retail shopping facility that has at least two anchor tenants if the total number of
124
anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
125
feet; or
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(d) grocery store that occupies a floor area of more than 30,000 square feet.
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(5) (a) "Sales and use tax" means a tax:
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(i) imposed on transactions within a:
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(A) county; or
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(B) municipality; and
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(ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
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Sales and Use Tax Act.
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(b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
134
authorized under:
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(i) Subsection
59-12-103
(2)(a)(i);
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(ii) Subsection
59-12-103
(2)(b)(i)[(A)];
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(iii) Subsection
59-12-103
(2)[(b)(iii)(A)](c)(i);
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(iv) Subsection
59-12-103
(2)(d)(i);
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(v) Subsection
59-12-103
(2)(e)(ii)(A);
140
(vi) Subsection
59-12-103
(2)(e)(iii)(A);
141
[(iv)] (vii) Section
59-12-301
;
142
[(v)] (viii) Section
59-12-352
;
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[(vi)] (ix) Section
59-12-353
;
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[(vii)] (x) Section
59-12-603
; or
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[(viii)] (xi) Section
59-12-1201
.
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(6) (a) "Sales and use tax incentive payment" means a payment of revenues:
147
(i) to a person;
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(ii) by a:
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(A) county; or
150
(B) municipality;
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(iii) to induce the person to locate or relocate a regional retail business within the:
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(A) county; or
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(B) municipality; and
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(iv) that are derived from a sales and use tax.
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(b) "Sales and use tax incentive payment" does not include funding for public
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infrastructure.
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Section 3.
Section
59-12-102
is amended to read:
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59-12-102. Definitions.
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As used in this chapter:
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(1) (a) "Admission or user fees" includes season passes.
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(b) "Admission or user fees" does not include annual membership dues to private
162
organizations.
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(2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
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Section
59-12-102.1
.
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(3) "Agreement combined tax rate" means the sum of the tax rates:
166
(a) listed under Subsection (4); and
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(b) that are imposed within a local taxing jurisdiction.
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(4) "Agreement sales and use tax" means a tax imposed under:
169
(a) Subsection
59-12-103
(2)(a)(i) [or (2)(b)(iii)(A)];
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(b) Subsection
59-12-103
(2)(b)(i);
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(c) Subsection
59-12-103
(2)(c)(i);
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(d) Subsection
59-12-103
(2)(d)(i);
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(e) Subsection
59-12-103
(2)(e)(ii)(A);
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(f) Subsection
59-12-103
(2)(e)(iii)(A);
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[(b)] (g) Section
59-12-204
;
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[(c)] (h) Section
59-12-401
;
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[(d)] (i) Section
59-12-402
;
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[(e)] (j) Section
59-12-501
;
179
[(f)] (k) Section
59-12-502
;
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[(g)] (l) Section
59-12-703
;
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[(h)] (m) Section
59-12-802
;
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[(i)] (n) Section
59-12-804
;
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[(j)] (o) Section
59-12-1001
;
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[(k)] (p) Section
59-12-1102
;
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[(l)] (q) Section
59-12-1302
;
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[(m)] (r) Section
59-12-1402
; or
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[(n)] (s) Section
59-12-1503
.
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(5) "Aircraft" is as defined in Section
72-10-102
.
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(6) "Alcoholic beverage" means a beverage that:
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(a) is suitable for human consumption; and
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(b) contains .5% or more alcohol by volume.
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(7) "Area agency on aging" is as defined in Section
62A-3-101
.
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(8) "Assisted amusement device" means an amusement device, skill device, or ride
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device that is started and stopped by an individual:
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(a) who is not the purchaser or renter of the right to use or operate the amusement
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device, skill device, or ride device; and
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(b) at the direction of the seller of the right to use the amusement device, skill device,
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or ride device.
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(9) "Assisted cleaning or washing of tangible personal property" means cleaning or
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washing of tangible personal property if the cleaning or washing labor is primarily performed
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by an individual:
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(a) who is not the purchaser of the cleaning or washing of the tangible personal
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property; and
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(b) at the direction of the seller of the cleaning or washing of the tangible personal
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property.
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(10) "Authorized carrier" means:
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(a) in the case of vehicles operated over public highways, the holder of credentials
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indicating that the vehicle is or will be operated pursuant to both the International Registration
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Plan and the International Fuel Tax Agreement;
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(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
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certificate or air carrier's operating certificate; or
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(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
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stock, the holder of a certificate issued by the United States Surface Transportation Board.
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(11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
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following that is used as the primary source of energy to produce fuel or electricity:
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(i) material from a plant or tree; or
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(ii) other organic matter that is available on a renewable basis, including:
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(A) slash and brush from forests and woodlands;
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(B) animal waste;
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(C) methane produced:
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(I) at landfills; or
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(II) as a byproduct of the treatment of wastewater residuals;
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(D) aquatic plants; and
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(E) agricultural products.
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(b) "Biomass energy" does not include:
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(i) black liquor;
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(ii) treated woods; or
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(iii) biomass from municipal solid waste other than methane produced:
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(A) at landfills; or
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(B) as a byproduct of the treatment of wastewater residuals.
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(12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
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property if:
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(i) one or more of the items of tangible personal property is food and food ingredients;
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and
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(ii) the items of tangible personal property are:
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(A) distinct and identifiable; and
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(B) sold for one price that is not itemized.
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(b) "Bundled transaction" does not include the sale of tangible personal property if the
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sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
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tangible personal property included in the transaction.
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(c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
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and identifiable does not include:
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(i) packaging that:
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(A) accompanies the sale of the tangible personal property; and
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(B) is incidental or immaterial to the sale of the tangible personal property;
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(ii) tangible personal property provided free of charge with the purchase of another
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item of tangible personal property; or
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(iii) an item of tangible personal property included in the definition of "purchase
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price."
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(d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
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provided free of charge with the purchase of another item of tangible personal property if the
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sales price of the purchased item of tangible personal property does not vary depending on the
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inclusion of the tangible personal property provided free of charge.
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(13) "Certified automated system" means software certified by the governing board of
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the agreement in accordance with Section
59-12-102.1
that:
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(a) calculates the agreement sales and use tax imposed within a local taxing
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jurisdiction:
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(i) on a transaction; and
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(ii) in the states that are members of the agreement;
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(b) determines the amount of agreement sales and use tax to remit to a state that is a
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member of the agreement; and
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(c) maintains a record of the transaction described in Subsection (13)(a)(i).
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(14) "Certified service provider" means an agent certified:
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(a) by the governing board of the agreement in accordance with Section
59-12-102.1
;
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and
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(b) to perform all of a seller's sales and use tax functions for an agreement sales and
267
use tax other than the seller's obligation under Section
59-12-107.4
to remit a tax on the seller's
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own purchases.
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(15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
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suitable for general use.
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(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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commission shall make rules:
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(i) listing the items that constitute "clothing"; and
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(ii) that are consistent with the list of items that constitute "clothing" under the
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agreement.
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(16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
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(17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
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fuels that does not constitute industrial use under Subsection (39) or residential use under
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Subsection (76).
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(18) (a) "Common carrier" means a person engaged in or transacting the business of
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transporting passengers, freight, merchandise, or other property for hire within this state.
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(b) (i) "Common carrier" does not include a person who, at the time the person is
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traveling to or from that person's place of employment, transports a passenger to or from the
284
passenger's place of employment.
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(ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
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Utah Administrative Rulemaking Act, the commission may make rules defining what
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constitutes a person's place of employment.
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(19) "Component part" includes:
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(a) poultry, dairy, and other livestock feed, and their components;
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(b) baling ties and twine used in the baling of hay and straw;
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(c) fuel used for providing temperature control of orchards and commercial
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greenhouses doing a majority of their business in wholesale sales, and for providing power for
293
off-highway type farm machinery; and
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(d) feed, seeds, and seedlings.
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(20) "Computer" means an electronic device that accepts information:
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(a) (i) in digital form; or
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(ii) in a form similar to digital form; and
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(b) manipulates that information for a result based on a sequence of instructions.
299
(21) "Computer software" means a set of coded instructions designed to cause:
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(a) a computer to perform a task; or
301
(b) automatic data processing equipment to perform a task.
302
(22) "Construction materials" means any tangible personal property that will be
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converted into real property.
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(23) "Delivered electronically" means delivered to a purchaser by means other than
305
tangible storage media.
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(24) (a) "Delivery charge" means a charge:
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(i) by a seller of:
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(A) tangible personal property; or
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(B) services; and
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(ii) for preparation and delivery of the tangible personal property or services described
311
in Subsection (24)(a)(i) to a location designated by the purchaser.
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(b) "Delivery charge" includes a charge for the following:
313
(i) transportation;
314
(ii) shipping;
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(iii) postage;
316
(iv) handling;
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(v) crating; or
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(vi) packing.
319
(25) "Dietary supplement" means a product, other than tobacco, that:
320
(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
322
(i) a vitamin;
323
(ii) a mineral;
324
(iii) an herb or other botanical;
325
(iv) an amino acid;
326
(v) a dietary substance for use by humans to supplement the diet by increasing the total
327
dietary intake; or
328
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
329
described in Subsections (25)(b)(i) through (v);
330
(c) (i) except as provided in Subsection (25)(c)(ii), is intended for ingestion in:
331
(A) tablet form;
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(B) capsule form;
333
(C) powder form;
334
(D) softgel form;
335
(E) gelcap form; or
336
(F) liquid form; or
337
(ii) notwithstanding Subsection (25)(c)(i), if the product is not intended for ingestion in
338
a form described in Subsections (25)(c)(i)(A) through (F), is not represented:
339
(A) as conventional food; and
340
(B) for use as a sole item of:
341
(I) a meal; or
342
(II) the diet; and
343
(d) is required to be labeled as a dietary supplement:
344
(i) identifiable by the "Supplemental Facts" box found on the label; and
345
(ii) as required by 21 C.F.R. Sec. 101.36.
346
(26) (a) "Direct mail" means printed material delivered or distributed by United States
347
mail or other delivery service:
348
(i) to:
349
(A) a mass audience; or
350
(B) addressees on a mailing list provided by a purchaser of the mailing list; and
351
(ii) if the cost of the printed material is not billed directly to the recipients.
352
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
353
purchaser to a seller of direct mail for inclusion in a package containing the printed material.
354
(c) "Direct mail" does not include multiple items of printed material delivered to a
355
single address.
356
(27) (a) "Drug" means a compound, substance, or preparation, or a component of a
357
compound, substance, or preparation that is:
358
(i) recognized in:
359
(A) the official United States Pharmacopoeia;
360
(B) the official Homeopathic Pharmacopoeia of the United States;
361
(C) the official National Formulary; or
362
(D) a supplement to a publication listed in Subsections (27)(a)(i)(A) through (C);
363
(ii) intended for use in the:
364
(A) diagnosis of disease;
365
(B) cure of disease;
366
(C) mitigation of disease;
367
(D) treatment of disease; or
368
(E) prevention of disease; or
369
(iii) intended to affect:
370
(A) the structure of the body; or
371
(B) any function of the body.
372
(b) "Drug" does not include:
373
(i) food and food ingredients;
374
(ii) a dietary supplement;
375
(iii) an alcoholic beverage; or
376
(iv) a prosthetic device.
377
(28) (a) Except as provided in Subsection (28)(c), "durable medical equipment" means
378
equipment that:
379
(i) can withstand repeated use;
380
(ii) is primarily and customarily used to serve a medical purpose;
381
(iii) generally is not useful to a person in the absence of illness or injury; and
382
(iv) is not worn in or on the body.
383
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
384
equipment described in Subsection (28)(a).
385
(c) Notwithstanding Subsection (28)(a), "durable medical equipment" does not include
386
mobility enhancing equipment.
387
(29) "Electronic" means:
388
(a) relating to technology; and
389
(b) having:
390
(i) electrical capabilities;
391
(ii) digital capabilities;
392
(iii) magnetic capabilities;
393
(iv) wireless capabilities;
394
(v) optical capabilities;
395
(vi) electromagnetic capabilities; or
396
(vii) capabilities similar to Subsections (29)(b)(i) through (vi).
397
(30) "Employee" is as defined in Section
59-10-401
.
398
(31) "Fixed guideway" means a public transit facility that uses and occupies:
399
(a) rail for the use of public transit; or
400
(b) a separate right-of-way for the use of public transit.
401
(32) (a) "Food and food ingredients" means substances:
402
(i) regardless of whether the substances are in:
403
(A) liquid form;
404
(B) concentrated form;
405
(C) solid form;
406
(D) frozen form;
407
(E) dried form; or
408
(F) dehydrated form; and
409
(ii) that are:
410
(A) sold for:
411
(I) ingestion by humans; or
412
(II) chewing by humans; and
413
(B) consumed for the substance's:
414
(I) taste; or
415
(II) nutritional value.
416
(b) "Food and food ingredients" includes an item described in Subsection (63)(b)(iii).
417
(c) "Food and food ingredients" does not include:
418
(i) an alcoholic beverage;
419
(ii) tobacco; or
420
(iii) prepared food.
421
(33) (a) "Fundraising sales" means sales:
422
(i) (A) made by a school; or
423
(B) made by a school student;
424
(ii) that are for the purpose of raising funds for the school to purchase equipment,
425
materials, or provide transportation; and
426
(iii) that are part of an officially sanctioned school activity.
427
(b) For purposes of Subsection (33)(a)(iii), "officially sanctioned school activity"
428
means a school activity:
429
(i) that is conducted in accordance with a formal policy adopted by the school or school
430
district governing the authorization and supervision of fundraising activities;
431
(ii) that does not directly or indirectly compensate an individual teacher or other
432
educational personnel by direct payment, commissions, or payment in kind; and
433
(iii) the net or gross revenues from which are deposited in a dedicated account
434
controlled by the school or school district.
435
(34) "Geothermal energy" means energy contained in heat that continuously flows
436
outward from the earth that is used as the sole source of energy to produce electricity.
437
(35) "Governing board of the agreement" means the governing board of the agreement
438
that is:
439
(a) authorized to administer the agreement; and
440
(b) established in accordance with the agreement.
441
(36) (a) "Hearing aid" means:
442
(i) an instrument or device having an electronic component that is designed to:
443
(A) (I) improve impaired human hearing; or
444
(II) correct impaired human hearing; and
445
(B) (I) be worn in the human ear; or
446
(II) affixed behind the human ear;
447
(ii) an instrument or device that is surgically implanted into the cochlea; or
448
(iii) a telephone amplifying device.
449
(b) "Hearing aid" does not include:
450
(i) except as provided in Subsection (36)(a)(i)(B) or (36)(a)(ii), an instrument or device
451
having an electronic component that is designed to be worn on the body;
452
(ii) except as provided in Subsection (36)(a)(iii), an assistive listening device or system
453
designed to be used by one individual, including:
454
(A) a personal amplifying system;
455
(B) a personal FM system;
456
(C) a television listening system; or
457
(D) a device or system similar to a device or system described in Subsections
458
(36)(b)(ii)(A) through (C); or
459
(iii) an assistive listening device or system designed to be used by more than one
460
individual, including:
461
(A) a device or system installed in:
462
(I) an auditorium;
463
(II) a church;
464
(III) a conference room;
465
(IV) a synagogue; or
466
(V) a theater; or
467
(B) a device or system similar to a device or system described in Subsections
468
(36)(b)(iii)(A)(I) through (V).
469
(37) (a) "Hearing aid accessory" means a hearing aid:
470
(i) component;
471
(ii) attachment; or
472
(iii) accessory.
473
(b) "Hearing aid accessory" includes:
474
(i) a hearing aid neck loop;
475
(ii) a hearing aid cord;
476
(iii) a hearing aid ear mold;
477
(iv) hearing aid tubing;
478
(v) a hearing aid ear hook; or
479
(vi) a hearing aid remote control.
480
(c) "Hearing aid accessory" does not include:
481
(i) a component, attachment, or accessory designed to be used only with an:
482
(A) instrument or device described in Subsection (36)(b)(i); or
483
(B) assistive listening device or system described in Subsection (36)(b)(ii) or (iii); or
484
(ii) a hearing aid battery.
485
(38) "Hydroelectric energy" means water used as the sole source of energy to produce
486
electricity.
487
(39) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
488
other fuels:
489
(a) in mining or extraction of minerals;
490
(b) in agricultural operations to produce an agricultural product up to the time of
491
harvest or placing the agricultural product into a storage facility, including:
492
(i) commercial greenhouses;
493
(ii) irrigation pumps;
494
(iii) farm machinery;
495
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
496
registered under Title 41, Chapter 1a, Part 2, Registration; and
497
(v) other farming activities;
498
(c) in manufacturing tangible personal property at an establishment described in SIC
499
Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
500
Executive Office of the President, Office of Management and Budget;
501
(d) by a scrap recycler if:
502
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
503
one or more of the following items into prepared grades of processed materials for use in new
504
products:
505
(A) iron;
506
(B) steel;
507
(C) nonferrous metal;
508
(D) paper;
509
(E) glass;
510
(F) plastic;
511
(G) textile; or
512
(H) rubber; and
513
(ii) the new products under Subsection (39)(d)(i) would otherwise be made with
514
nonrecycled materials; or
515
(e) in producing a form of energy or steam described in Subsection
54-2-1
(2)(a) by a
516
cogeneration facility as defined in Section
54-2-1
.
517
(40) (a) Except as provided in Subsection (40)(b), "installation charge" means a charge
518
for installing tangible personal property.
519
(b) Notwithstanding Subsection (40)(a), "installation charge" does not include a charge
520
for repairs or renovations of tangible personal property.
521
(41) (a) "Lease" or "rental" means a transfer of possession or control of tangible
522
personal property for:
523
(i) (A) a fixed term; or
524
(B) an indeterminate term; and
525
(ii) consideration.
526
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
527
amount of consideration may be increased or decreased by reference to the amount realized
528
upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
529
Code.
530
(c) "Lease" or "rental" does not include:
531
(i) a transfer of possession or control of property under a security agreement or
532
deferred payment plan that requires the transfer of title upon completion of the required
533
payments;
534
(ii) a transfer of possession or control of property under an agreement that requires the
535
transfer of title:
536
(A) upon completion of required payments; and
537
(B) if the payment of an option price does not exceed the greater of:
538
(I) $100; or
539
(II) 1% of the total required payments; or
540
(iii) providing tangible personal property along with an operator for a fixed period of
541
time or an indeterminate period of time if the operator is necessary for equipment to perform as
542
designed.
543
(d) For purposes of Subsection (41)(c)(iii), an operator is necessary for equipment to
544
perform as designed if the operator's duties exceed the:
545
(i) set-up of tangible personal property;
546
(ii) maintenance of tangible personal property; or
547
(iii) inspection of tangible personal property.
548
(42) "Load and leave" means delivery to a purchaser by use of a tangible storage media
549
if the tangible storage media is not physically transferred to the purchaser.
550
(43) "Local taxing jurisdiction" means a:
551
(a) county that is authorized to impose an agreement sales and use tax;
552
(b) city that is authorized to impose an agreement sales and use tax; or
553
(c) town that is authorized to impose an agreement sales and use tax.
554
(44) "Manufactured home" is as defined in Section
58-56-3
.
555
(45) For purposes of Section
59-12-104
, "manufacturing facility" means:
556
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
557
Industrial Classification Manual of the federal Executive Office of the President, Office of
558
Management and Budget;
559
(b) a scrap recycler if:
560
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
561
one or more of the following items into prepared grades of processed materials for use in new
562
products:
563
(A) iron;
564
(B) steel;
565
(C) nonferrous metal;
566
(D) paper;
567
(E) glass;
568
(F) plastic;
569
(G) textile; or
570
(H) rubber; and
571
(ii) the new products under Subsection (45)(b)(i) would otherwise be made with
572
nonrecycled materials; or
573
(c) a cogeneration facility as defined in Section
54-2-1
.
574
(46) "Member of the immediate family of the producer" means a person who is related
575
to a producer described in Subsection
59-12-104
(20)(a) as a:
576
(a) child or stepchild, regardless of whether the child or stepchild is:
577
(i) an adopted child or adopted stepchild; or
578
(ii) a foster child or foster stepchild;
579
(b) grandchild or stepgrandchild;
580
(c) grandparent or stepgrandparent;
581
(d) nephew or stepnephew;
582
(e) niece or stepniece;
583
(f) parent or stepparent;
584
(g) sibling or stepsibling;
585
(h) spouse;
586
(i) person who is the spouse of a person described in Subsections (46)(a) through (g);
587
or
588
(j) person similar to a person described in Subsections (46)(a) through (i) as
589
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
590
Administrative Rulemaking Act.
591
(47) "Mobile home" is as defined in Section
58-56-3
.
592
(48) "Mobile telecommunications service" is as defined in the Mobile
593
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
594
(49) (a) Except as provided in Subsection (49)(c), "mobility enhancing equipment"
595
means equipment that is:
596
(i) primarily and customarily used to provide or increase the ability to move from one
597
place to another;
598
(ii) appropriate for use in a:
599
(A) home; or
600
(B) motor vehicle; and
601
(iii) not generally used by persons with normal mobility.
602
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
603
the equipment described in Subsection (49)(a).
604
(c) Notwithstanding Subsection (49)(a), "mobility enhancing equipment" does not
605
include:
606
(i) a motor vehicle;
607
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
608
vehicle manufacturer;
609
(iii) durable medical equipment; or
610
(iv) a prosthetic device.
611
(50) "Model 1 seller" means a seller that has selected a certified service provider as the
612
seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
613
use taxes other than the seller's obligation under Section
59-12-107.4
to remit a tax on the
614
seller's own purchases.
615
(51) "Model 2 seller" means a seller that:
616
(a) except as provided in Subsection (51)(b), has selected a certified automated system
617
to perform the seller's sales tax functions for agreement sales and use taxes; and
618
(b) notwithstanding Subsection (51)(a), retains responsibility for remitting all of the
619
sales tax:
620
(i) collected by the seller; and
621
(ii) to the appropriate local taxing jurisdiction.
622
(52) (a) Subject to Subsection (52)(b), "model 3 seller" means a seller that has:
623
(i) sales in at least five states that are members of the agreement;
624
(ii) total annual sales revenues of at least $500,000,000;
625
(iii) a proprietary system that calculates the amount of tax:
626
(A) for an agreement sales and use tax; and
627
(B) due to each local taxing jurisdiction; and
628
(iv) entered into a performance agreement with the governing board of the agreement.
629
(b) For purposes of Subsection (52)(a), "model 3 seller" includes an affiliated group of
630
sellers using the same proprietary system.
631
(53) "Modular home" means a modular unit as defined in Section
58-56-3
.
632
(54) "Motor vehicle" is as defined in Section
41-1a-102
.
633
(55) "Oil shale" means a group of fine black to dark brown shales containing
634
bituminous material that yields petroleum upon distillation.
635
(56) (a) "Other fuels" means products that burn independently to produce heat or
636
energy.
637
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
638
personal property.
639
(57) "Pawnbroker" is as defined in Section
13-32a-102
.
640
(58) "Pawn transaction" is as defined in Section
13-32a-102
.
641
(59) (a) "Permanently attached to real property" means that for tangible personal
642
property attached to real property:
643
(i) the attachment of the tangible personal property to the real property:
644
(A) is essential to the use of the tangible personal property; and
645
(B) suggests that the tangible personal property will remain attached to the real
646
property in the same place over the useful life of the tangible personal property; or
647
(ii) if the tangible personal property is detached from the real property, the detachment
648
would:
649
(A) cause substantial damage to the tangible personal property; or
650
(B) require substantial alteration or repair of the real property to which the tangible
651
personal property is attached.
652
(b) "Permanently attached to real property" includes:
653
(i) the attachment of an accessory to the tangible personal property if the accessory is:
654
(A) essential to the operation of the tangible personal property; and
655
(B) attached only to facilitate the operation of the tangible personal property;
656
(ii) a temporary detachment of tangible personal property from real property for a
657
repair or renovation if the repair or renovation is performed where the tangible personal
658
property and real property are located; or
659
(iii) an attachment of the following tangible personal property to real property,
660
regardless of whether the attachment to real property is only through a line that supplies water,
661
electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
662
rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
663
(A) property attached to oil, gas, or water pipelines, other than the property listed in
664
Subsection (59)(c)(iii);
665
(B) a hot water heater;
666
(C) a water softener system; or
667
(D) a water filtration system, other than a water filtration system manufactured as part
668
of a refrigerator.
669
(c) "Permanently attached to real property" does not include:
670
(i) the attachment of portable or movable tangible personal property to real property if
671
that portable or movable tangible personal property is attached to real property only for:
672
(A) convenience;
673
(B) stability; or
674
(C) for an obvious temporary purpose;
675
(ii) the detachment of tangible personal property from real property other than the
676
detachment described in Subsection (59)(b)(ii); or
677
(iii) an attachment of the following tangible personal property to real property if the
678
attachment to real property is only through a line that supplies water, electricity, gas, telephone,
679
cable, or supplies a similar item as determined by the commission by rule made in accordance
680
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
681
(A) a refrigerator;
682
(B) a washer;
683
(C) a dryer;
684
(D) a stove;
685
(E) a television;
686
(F) a computer;
687
(G) a telephone; or
688
(H) tangible personal property similar to Subsections (59)(c)(iii)(A) through (G) as
689
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
690
Administrative Rulemaking Act.
691
(60) "Person" includes any individual, firm, partnership, joint venture, association,
692
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
693
municipality, district, or other local governmental entity of the state, or any group or
694
combination acting as a unit.
695
(61) "Place of primary use":
696
(a) for telephone service other than mobile telecommunications service, means the
697
street address representative of where the purchaser's use of the telephone service primarily
698
occurs, which shall be:
699
(i) the residential street address of the purchaser; or
700
(ii) the primary business street address of the purchaser; or
701
(b) for mobile telecommunications service, is as defined in the Mobile
702
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
703
(62) "Postproduction" means an activity related to the finishing or duplication of a
704
medium described in Subsection
59-12-104
(56)(a).
705
(63) (a) "Prepared food" means:
706
(i) food:
707
(A) sold in a heated state; or
708
(B) heated by a seller;
709
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
710
item; or
711
(iii) except as provided in Subsection (63)(c), food sold with an eating utensil provided
712
by the seller, including a:
713
(A) plate;
714
(B) knife;
715
(C) fork;
716
(D) spoon;
717
(E) glass;
718
(F) cup;
719
(G) napkin; or
720
(H) straw.
721
(b) "Prepared food" does not include:
722
(i) food that a seller only:
723
(A) cuts;
724
(B) repackages; or
725
(C) pasteurizes; or
726
(ii) (A) the following:
727
(I) raw egg;
728
(II) raw fish;
729
(III) raw meat;
730
(IV) raw poultry; or
731
(V) a food containing an item described in Subsections (63)(b)(ii)(A)(I) through (IV);
732
and
733
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
734
Food and Drug Administration's Food Code that a consumer cook the items described in
735
Subsection (63)(b)(ii)(A) to prevent food borne illness; or
736
(iii) the following if sold without eating utensils provided by the seller:
737
(A) food and food ingredients sold by a seller if the seller's proper primary
738
classification under the 2002 North American Industry Classification System of the federal
739
Executive Office of the President, Office of Management and Budget, is manufacturing in
740
Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
741
Manufacturing;
742
(B) food and food ingredients sold in an unheated state:
743
(I) by weight or volume; and
744
(II) as a single item; or
745
(C) a bakery item, including:
746
(I) a bagel;
747
(II) a bar;
748
(III) a biscuit;
749
(IV) bread;
750
(V) a bun;
751
(VI) a cake;
752
(VII) a cookie;
753
(VIII) a croissant;
754
(IX) a danish;
755
(X) a donut;
756
(XI) a muffin;
757
(XII) a pastry;
758
(XIII) a pie;
759
(XIV) a roll;
760
(XV) a tart;
761
(XVI) a torte; or
762
(XVII) a tortilla.
763
(c) Notwithstanding Subsection (63)(a)(iii), an eating utensil provided by the seller
764
does not include the following used to transport the food:
765
(i) a container; or
766
(ii) packaging.
767
(64) "Prescription" means an order, formula, or recipe that is issued:
768
(a) (i) orally;
769
(ii) in writing;
770
(iii) electronically; or
771
(iv) by any other manner of transmission; and
772
(b) by a licensed practitioner authorized by the laws of a state.
773
(65) (a) Except as provided in Subsection (65)(b)(ii) or (iii), "prewritten computer
774
software" means computer software that is not designed and developed:
775
(i) by the author or other creator of the computer software; and
776
(ii) to the specifications of a specific purchaser.
777
(b) "Prewritten computer software" includes:
778
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
779
software is not designed and developed:
780
(A) by the author or other creator of the computer software; and
781
(B) to the specifications of a specific purchaser;
782
(ii) notwithstanding Subsection (65)(a), computer software designed and developed by
783
the author or other creator of the computer software to the specifications of a specific purchaser
784
if the computer software is sold to a person other than the purchaser; or
785
(iii) notwithstanding Subsection (65)(a) and except as provided in Subsection (65)(c),
786
prewritten computer software or a prewritten portion of prewritten computer software:
787
(A) that is modified or enhanced to any degree; and
788
(B) if the modification or enhancement described in Subsection (65)(b)(iii)(A) is
789
designed and developed to the specifications of a specific purchaser.
790
(c) Notwithstanding Subsection (65)(b)(iii), "prewritten computer software" does not
791
include a modification or enhancement described in Subsection (65)(b)(iii) if the charges for
792
the modification or enhancement are:
793
(i) reasonable; and
794
(ii) separately stated on the invoice or other statement of price provided to the
795
purchaser.
796
(66) (a) "Prosthetic device" means a device that is worn on or in the body to:
797
(i) artificially replace a missing portion of the body;
798
(ii) prevent or correct a physical deformity or physical malfunction; or
799
(iii) support a weak or deformed portion of the body.
800
(b) "Prosthetic device" includes:
801
(i) parts used in the repairs or renovation of a prosthetic device; or
802
(ii) replacement parts for a prosthetic device.
803
(c) "Prosthetic device" does not include:
804
(i) corrective eyeglasses;
805
(ii) contact lenses;
806
(iii) hearing aids; or
807
(iv) dental prostheses.
808
(67) (a) "Protective equipment" means an item:
809
(i) for human wear; and
810
(ii) that is:
811
(A) designed as protection:
812
(I) to the wearer against injury or disease; or
813
(II) against damage or injury of other persons or property; and
814
(B) not suitable for general use.
815
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
816
commission shall make rules:
817
(i) listing the items that constitute "protective equipment"; and
818
(ii) that are consistent with the list of items that constitute "protective equipment"
819
under the agreement.
820
(68) (a) "Purchase price" and "sales price" mean the total amount of consideration:
821
(i) valued in money; and
822
(ii) for which tangible personal property or services are:
823
(A) sold;
824
(B) leased; or
825
(C) rented.
826
(b) "Purchase price" and "sales price" include:
827
(i) the seller's cost of the tangible personal property or services sold;
828
(ii) expenses of the seller, including:
829
(A) the cost of materials used;
830
(B) a labor cost;
831
(C) a service cost;
832
(D) interest;
833
(E) a loss;
834
(F) the cost of transportation to the seller; or
835
(G) a tax imposed on the seller; or
836
(iii) a charge by the seller for any service necessary to complete the sale.
837
(c) "Purchase price" and "sales price" do not include:
838
(i) a discount:
839
(A) in a form including:
840
(I) cash;
841
(II) term; or
842
(III) coupon;
843
(B) that is allowed by a seller;
844
(C) taken by a purchaser on a sale; and
845
(D) that is not reimbursed by a third party; or
846
(ii) the following if separately stated on an invoice, bill of sale, or similar document
847
provided to the purchaser:
848
(A) the amount of a trade-in;
849
(B) the following from credit extended on the sale of tangible personal property or
850
services:
851
(I) interest charges;
852
(II) financing charges; or
853
(III) carrying charges;
854
(C) a tax or fee legally imposed directly on the consumer;
855
(D) a delivery charge; or
856
(E) an installation charge.
857
(69) "Purchaser" means a person to whom:
858
(a) a sale of tangible personal property is made; or
859
(b) a service is furnished.
860
(70) "Regularly rented" means:
861
(a) rented to a guest for value three or more times during a calendar year; or
862
(b) advertised or held out to the public as a place that is regularly rented to guests for
863
value.
864
(71) "Renewable energy" means:
865
(a) biomass energy;
866
(b) hydroelectric energy;
867
(c) geothermal energy;
868
(d) solar energy; or
869
(e) wind energy.
870
(72) (a) "Renewable energy production facility" means a facility that:
871
(i) uses renewable energy to produce electricity; and
872
(ii) has a production capacity of 20 kilowatts or greater.
873
(b) A facility is a renewable energy production facility regardless of whether the
874
facility is:
875
(i) connected to an electric grid; or
876
(ii) located on the premises of an electricity consumer.
877
(73) "Rental" is as defined in Subsection (41).
878
(74) "Repairs or renovations of tangible personal property" means:
879
(a) a repair or renovation of tangible personal property that is not permanently attached
880
to real property; or
881
(b) attaching tangible personal property to other tangible personal property if the other
882
tangible personal property to which the tangible personal property is attached is not
883
permanently attached to real property.
884
(75) "Research and development" means the process of inquiry or experimentation
885
aimed at the discovery of facts, devices, technologies, or applications and the process of
886
preparing those devices, technologies, or applications for marketing.
887
(76) "Residential use" means the use in or around a home, apartment building, sleeping
888
quarters, and similar facilities or accommodations.
889
(77) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
890
than:
891
(a) resale;
892
(b) sublease; or
893
(c) subrent.
894
(78) (a) "Retailer" means any person engaged in a regularly organized business in
895
tangible personal property or any other taxable transaction under Subsection
59-12-103
(1), and
896
who is selling to the user or consumer and not for resale.
897
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
898
engaged in the business of selling to users or consumers within the state.
899
(79) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
900
otherwise, in any manner, of tangible personal property or any other taxable transaction under
901
Subsection
59-12-103
(1), for consideration.
902
(b) "Sale" includes:
903
(i) installment and credit sales;
904
(ii) any closed transaction constituting a sale;
905
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
906
chapter;
907
(iv) any transaction if the possession of property is transferred but the seller retains the
908
title as security for the payment of the price; and
909
(v) any transaction under which right to possession, operation, or use of any article of
910
tangible personal property is granted under a lease or contract and the transfer of possession
911
would be taxable if an outright sale were made.
912
(80) "Sale at retail" is as defined in Subsection (77).
913
(81) "Sale-leaseback transaction" means a transaction by which title to tangible
914
personal property that is subject to a tax under this chapter is transferred:
915
(a) by a purchaser-lessee;
916
(b) to a lessor;
917
(c) for consideration; and
918
(d) if:
919
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
920
of the tangible personal property;
921
(ii) the sale of the tangible personal property to the lessor is intended as a form of
922
financing:
923
(A) for the property; and
924
(B) to the purchaser-lessee; and
925
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee
926
is required to:
927
(A) capitalize the property for financial reporting purposes; and
928
(B) account for the lease payments as payments made under a financing arrangement.
929
(82) "Sales price" is as defined in Subsection (68).
930
(83) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
931
amounts charged by a school:
932
(i) sales that are directly related to the school's educational functions or activities
933
including:
934
(A) the sale of:
935
(I) textbooks;
936
(II) textbook fees;
937
(III) laboratory fees;
938
(IV) laboratory supplies; or
939
(V) safety equipment;
940
(B) the sale of a uniform, protective equipment, or sports or recreational equipment
941
that:
942
(I) a student is specifically required to wear as a condition of participation in a
943
school-related event or school-related activity; and
944
(II) is not readily adaptable to general or continued usage to the extent that it takes the
945
place of ordinary clothing;
946
(C) sales of the following if the net or gross revenues generated by the sales are
947
deposited into a school district fund or school fund dedicated to school meals:
948
(I) food and food ingredients; or
949
(II) prepared food; or
950
(D) transportation charges for official school activities; or
951
(ii) amounts paid to or amounts charged by a school for admission to a school-related
952
event or school-related activity.
953
(b) "Sales relating to schools" does not include:
954
(i) bookstore sales of items that are not educational materials or supplies;
955
(ii) except as provided in Subsection (83)(a)(i)(B):
956
(A) clothing;
957
(B) clothing accessories or equipment;
958
(C) protective equipment; or
959
(D) sports or recreational equipment; or
960
(iii) amounts paid to or amounts charged by a school for admission to a school-related
961
event or school-related activity if the amounts paid or charged are passed through to a person:
962
(A) other than a:
963
(I) school;
964
(II) nonprofit organization authorized by a school board or a governing body of a
965
private school to organize and direct a competitive secondary school activity; or
966
(III) nonprofit association authorized by a school board or a governing body of a
967
private school to organize and direct a competitive secondary school activity; and
968
(B) that is required to collect sales and use taxes under this chapter.
969
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
970
commission may make rules defining the term "passed through."
971
(84) For purposes of this section and Section
59-12-104
, "school" means:
972
(a) an elementary school or a secondary school that:
973
(i) is a:
974
(A) public school; or
975
(B) private school; and
976
(ii) provides instruction for one or more grades kindergarten through 12; or
977
(b) a public school district.
978
(85) "Seller" means a person that makes a sale, lease, or rental of:
979
(a) tangible personal property; or
980
(b) a service.
981
(86) (a) "Semiconductor fabricating, processing, research, or development materials"
982
means tangible personal property:
983
(i) used primarily in the process of:
984
(A) (I) manufacturing a semiconductor;
985
(II) fabricating a semiconductor; or
986
(III) research or development of a:
987
(Aa) semiconductor; or
988
(Bb) semiconductor manufacturing process; or
989
(B) maintaining an environment suitable for a semiconductor; or
990
(ii) consumed primarily in the process of:
991
(A) (I) manufacturing a semiconductor;
992
(II) fabricating a semiconductor; or
993
(III) research or development of a:
994
(Aa) semiconductor; or
995
(Bb) semiconductor manufacturing process; or
996
(B) maintaining an environment suitable for a semiconductor.
997
(b) "Semiconductor fabricating, processing, research, or development materials"
998
includes:
999
(i) parts used in the repairs or renovations of tangible personal property described in
1000
Subsection (86)(a); or
1001
(ii) a chemical, catalyst, or other material used to:
1002
(A) produce or induce in a semiconductor a:
1003
(I) chemical change; or
1004
(II) physical change;
1005
(B) remove impurities from a semiconductor; or
1006
(C) improve the marketable condition of a semiconductor.
1007
(87) "Senior citizen center" means a facility having the primary purpose of providing
1008
services to the aged as defined in Section
62A-3-101
.
1009
(88) "Simplified electronic return" means the electronic return:
1010
(a) described in Section 318(C) of the agreement; and
1011
(b) approved by the governing board of the agreement.
1012
(89) "Solar energy" means the sun used as the sole source of energy for producing
1013
electricity.
1014
(90) (a) "Sports or recreational equipment" means an item:
1015
(i) designed for human use; and
1016
(ii) that is:
1017
(A) worn in conjunction with:
1018
(I) an athletic activity; or
1019
(II) a recreational activity; and
1020
(B) not suitable for general use.
1021
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1022
commission shall make rules:
1023
(i) listing the items that constitute "sports or recreational equipment"; and
1024
(ii) that are consistent with the list of items that constitute "sports or recreational
1025
equipment" under the agreement.
1026
(91) "State" means the state of Utah, its departments, and agencies.
1027
(92) "Storage" means any keeping or retention of tangible personal property or any
1028
other taxable transaction under Subsection
59-12-103
(1), in this state for any purpose except
1029
sale in the regular course of business.
1030
(93) (a) "Tangible personal property" means personal property that:
1031
(i) may be:
1032
(A) seen;
1033
(B) weighed;
1034
(C) measured;
1035
(D) felt; or
1036
(E) touched; or
1037
(ii) is in any manner perceptible to the senses.
1038
(b) "Tangible personal property" includes:
1039
(i) electricity;
1040
(ii) water;
1041
(iii) gas;
1042
(iv) steam; or
1043
(v) prewritten computer software.
1044
(94) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1045
and require further processing other than mechanical blending before becoming finished
1046
petroleum products.
1047
(95) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1048
software" means an item listed in Subsection (95)(b) if that item is purchased or leased
1049
primarily to enable or facilitate one or more of the following to function:
1050
(i) telecommunications switching or routing equipment, machinery, or software; or
1051
(ii) telecommunications transmission equipment, machinery, or software.
1052
(b) The following apply to Subsection (95)(a):
1053
(i) a pole;
1054
(ii) software;
1055
(iii) a supplementary power supply;
1056
(iv) temperature or environmental equipment or machinery;
1057
(v) test equipment;
1058
(vi) a tower; or
1059
(vii) equipment, machinery, or software that functions similarly to an item listed in
1060
Subsections (95)(b)(i) through (vi) as determined by the commission by rule made in
1061
accordance with Subsection (95)(c).
1062
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1063
commission may by rule define what constitutes equipment, machinery, or software that
1064
functions similarly to an item listed in Subsections (95)(b)(i) through (vi).
1065
(96) "Telecommunications equipment, machinery, or software required for 911
1066
service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1067
Sec. 20.18.
1068
(97) "Telecommunications maintenance or repair equipment, machinery, or software"
1069
means equipment, machinery, or software purchased or leased primarily to maintain or repair
1070
one or more of the following, regardless of whether the equipment, machinery, or software is
1071
purchased or leased as a spare part or as an upgrade or modification to one or more of the
1072
following:
1073
(a) telecommunications enabling or facilitating equipment, machinery, or software;
1074
(b) telecommunications switching or routing equipment, machinery, or software; or
1075
(c) telecommunications transmission equipment, machinery, or software.
1076
(98) (a) "Telecommunications switching or routing equipment, machinery, or software"
1077
means an item listed in Subsection (98)(b) if that item is purchased or leased primarily for
1078
switching or routing:
1079
(i) voice communications;
1080
(ii) data communications; or
1081
(iii) telephone service.
1082
(b) The following apply to Subsection (98)(a):
1083
(i) a bridge;
1084
(ii) a computer;
1085
(iii) a cross connect;
1086
(iv) a modem;
1087
(v) a multiplexer;
1088
(vi) plug in circuitry;
1089
(vii) a router;
1090
(viii) software;
1091
(ix) a switch; or
1092
(x) equipment, machinery, or software that functions similarly to an item listed in
1093
Subsections (98)(b)(i) through (ix) as determined by the commission by rule made in
1094
accordance with Subsection (98)(c).
1095
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1096
commission may by rule define what constitutes equipment, machinery, or software that
1097
functions similarly to an item listed in Subsections (98)(b)(i) through (ix).
1098
(99) (a) "Telecommunications transmission equipment, machinery, or software" means
1099
an item listed in Subsection (99)(b) if that item is purchased or leased primarily for sending,
1100
receiving, or transporting:
1101
(i) voice communications;
1102
(ii) data communications; or
1103
(iii) telephone service.
1104
(b) The following apply to Subsection (99)(a):
1105
(i) an amplifier;
1106
(ii) a cable;
1107
(iii) a closure;
1108
(iv) a conduit;
1109
(v) a controller;
1110
(vi) a duplexer;
1111
(vii) a filter;
1112
(viii) an input device;
1113
(ix) an input/output device;
1114
(x) an insulator;
1115
(xi) microwave machinery or equipment;
1116
(xii) an oscillator;
1117
(xiii) an output device;
1118
(xiv) a pedestal;
1119
(xv) a power converter;
1120
(xvi) a power supply;
1121
(xvii) a radio channel;
1122
(xviii) a radio receiver;
1123
(xix) a radio transmitter;
1124
(xx) a repeater;
1125
(xxi) software;
1126
(xxii) a terminal;
1127
(xxiii) a timing unit;
1128
(xxiv) a transformer;
1129
(xxv) a wire; or
1130
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1131
Subsections (99)(b)(i) through (xxv) as determined by the commission by rule made in
1132
accordance with Subsection (99)(c).
1133
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1134
commission may by rule define what constitutes equipment, machinery, or software that
1135
functions similarly to an item listed in Subsections (99)(b)(i) through (xxv).
1136
(100) (a) "Telephone service" means a two-way transmission:
1137
(i) by:
1138
(A) wire;
1139
(B) radio;
1140
(C) lightwave; or
1141
(D) other electromagnetic means; and
1142
(ii) of one or more of the following:
1143
(A) a sign;
1144
(B) a signal;
1145
(C) writing;
1146
(D) an image;
1147
(E) sound;
1148
(F) a message;
1149
(G) data; or
1150
(H) other information of any nature.
1151
(b) "Telephone service" includes:
1152
(i) mobile telecommunications service;
1153
(ii) private communications service; or
1154
(iii) automated digital telephone answering service.
1155
(c) "Telephone service" does not include a service or a transaction that a state or a
1156
political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1157
Tax Freedom Act, Pub. L. No. 105-277.
1158
(101) Notwithstanding where a call is billed or paid, "telephone service address"
1159
means:
1160
(a) if the location described in this Subsection (101)(a) is known, the location of the
1161
telephone service equipment:
1162
(i) to which a call is charged; and
1163
(ii) from which the call originates or terminates;
1164
(b) if the location described in Subsection (101)(a) is not known but the location
1165
described in this Subsection (101)(b) is known, the location of the origination point of the
1166
signal of the telephone service first identified by:
1167
(i) the telecommunications system of the seller; or
1168
(ii) if the system used to transport the signal is not that of the seller, information
1169
received by the seller from its service provider; or
1170
(c) if the locations described in Subsection (101)(a) or (b) are not known, the location
1171
of a purchaser's primary place of use.
1172
(102) (a) "Telephone service provider" means a person that:
1173
(i) owns, controls, operates, or manages a telephone service; and
1174
(ii) engages in an activity described in Subsection (102)(a)(i) for the shared use with or
1175
resale to any person of the telephone service.
1176
(b) A person described in Subsection (102)(a) is a telephone service provider whether
1177
or not the Public Service Commission of Utah regulates:
1178
(i) that person; or
1179
(ii) the telephone service that the person owns, controls, operates, or manages.
1180
(103) "Tobacco" means:
1181
(a) a cigarette;
1182
(b) a cigar;
1183
(c) chewing tobacco;
1184
(d) pipe tobacco; or
1185
(e) any other item that contains tobacco.
1186
(104) "Unassisted amusement device" means an amusement device, skill device, or
1187
ride device that is started and stopped by the purchaser or renter of the right to use or operate
1188
the amusement device, skill device, or ride device.
1189
(105) (a) "Use" means the exercise of any right or power over tangible personal
1190
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that
1191
property, item, or service.
1192
(b) "Use" does not include the sale, display, demonstration, or trial of that property in
1193
the regular course of business and held for resale.
1194
(106) (a) Subject to Subsection (106)(b), "vehicle" means the following that are
1195
required to be titled, registered, or titled and registered:
1196
(i) an aircraft as defined in Section
72-10-102
;
1197
(ii) a vehicle as defined in Section
41-1a-102
;
1198
(iii) an off-highway vehicle as defined in Section
41-22-2
; or
1199
(iv) a vessel as defined in Section
41-1a-102
.
1200
(b) For purposes of Subsection
59-12-104
(33) only, "vehicle" includes:
1201
(i) a vehicle described in Subsection (106)(a); or
1202
(ii) (A) a locomotive;
1203
(B) a freight car;
1204
(C) railroad work equipment; or
1205
(D) other railroad rolling stock.
1206
(107) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1207
exchanging a vehicle as defined in Subsection (106).
1208
(108) (a) Except as provided in Subsection (108)(b), "waste energy facility" means a
1209
facility that generates electricity:
1210
(i) using as the primary source of energy waste materials that would be placed in a
1211
landfill or refuse pit if it were not used to generate electricity, including:
1212
(A) tires;
1213
(B) waste coal; or
1214
(C) oil shale; and
1215
(ii) in amounts greater than actually required for the operation of the facility.
1216
(b) "Waste energy facility" does not include a facility that incinerates:
1217
(i) municipal solid waste;
1218
(ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1219
(iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1220
(109) "Watercraft" means a vessel as defined in Section
73-18-2
.
1221
(110) "Wind energy" means wind used as the sole source of energy to produce
1222
electricity.
1223
(111) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1224
location by the United States Postal Service.
1225
Section 4.
Section
59-12-103
is amended to read:
1226
59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1227
tax revenues.
1228
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
1229
charged for the following transactions:
1230
(a) retail sales of tangible personal property made within the state;
1231
(b) amounts paid:
1232
(i) (A) to a common carrier; or
1233
(B) whether the following are municipally or privately owned, to a:
1234
(I) telephone service provider; or
1235
(II) telegraph corporation as defined in Section
54-2-1
; and
1236
(ii) for:
1237
(A) telephone service, other than mobile telecommunications service, that originates
1238
and terminates within the boundaries of this state;
1239
(B) mobile telecommunications service that originates and terminates within the
1240
boundaries of one state only to the extent permitted by the Mobile Telecommunications
1241
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1242
(C) telegraph service;
1243
(c) sales of the following for commercial use:
1244
(i) gas;
1245
(ii) electricity;
1246
(iii) heat;
1247
(iv) coal;
1248
(v) fuel oil; or
1249
(vi) other fuels;
1250
(d) sales of the following for residential use:
1251
(i) gas;
1252
(ii) electricity;
1253
(iii) heat;
1254
(iv) coal;
1255
(v) fuel oil; or
1256
(vi) other fuels;
1257
(e) sales of prepared food;
1258
(f) except as provided in Section
59-12-104
, amounts paid or charged as admission or
1259
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1260
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1261
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1262
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1263
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1264
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1265
horseback rides, sports activities, or any other amusement, entertainment, recreation,
1266
exhibition, cultural, or athletic activity;
1267
(g) amounts paid or charged for services for repairs or renovations of tangible personal
1268
property, unless Section
59-12-104
provides for an exemption from sales and use tax for:
1269
(i) the tangible personal property; and
1270
(ii) parts used in the repairs or renovations of the tangible personal property described
1271
in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
1272
of that tangible personal property;
1273
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for
1274
assisted cleaning or washing of tangible personal property;
1275
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1276
accommodations and services that are regularly rented for less than 30 consecutive days;
1277
(j) amounts paid or charged for laundry or dry cleaning services;
1278
(k) amounts paid or charged for leases or rentals of tangible personal property if within
1279
this state the tangible personal property is:
1280
(i) stored;
1281
(ii) used; or
1282
(iii) otherwise consumed;
1283
(l) amounts paid or charged for tangible personal property if within this state the
1284
tangible personal property is:
1285
(i) stored;
1286
(ii) used; or
1287
(iii) consumed; and
1288
(m) amounts paid or charged for prepaid telephone calling cards.
1289
(2) (a) Except as provided in [Subsection] Subsections (2)(b) [or (f),] through (e) a
1290
state tax and a local tax is imposed on a transaction described in Subsection (1) equal to the
1291
sum of:
1292
(i) a state tax imposed on the transaction at a tax rate of 4.75%; and
1293
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1294
transaction under this chapter other than this part.
1295
(b) [(i) A] Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is
1296
imposed on a transaction described in Subsection (1)(d) equal to the sum of:
1297
[(A)] (i) a state tax imposed on the transaction at a tax rate of 2%; and
1298
[(B)] (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on
1299
the transaction under this chapter other than this part[; or].
1300
(c) Except as provided in Subsection (2)(d) or (e), beginning on January 1, 2007, a
1301
state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
1302
equal to the sum of:
1303
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
1304
a tax rate of 2.75%; and
1305
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1306
amounts paid or charged for food and food ingredients under this chapter other than this part.
1307
[(ii) if] (d) Except as provided in Subsection (2)(e), if a seller collects a tax in
1308
accordance with Subsection
59-12-107
(1)(b) on a transaction described in Subsection (1), a
1309
state tax and a local tax is imposed on the transaction equal to the sum of:
1310
[(A)] (i) a state tax imposed on the transaction at a tax rate of:
1311
[(I)] (A) 4.75% for a transaction other than a transaction described in Subsection
1312
[(1)(d)] (2)(d)(i)(B) or (2)(d)(i)(C); [or]
1313
[(II)] (B) 2% for a transaction described in Subsection (1)(d); [and] or
1314
(C) beginning on January 1, 2007, 2.75% on the amounts paid or charged for food and
1315
food ingredients; and
1316
[(B)] (ii) a local tax imposed on the transaction at a tax rate equal to the sum of the
1317
following tax rates:
1318
[(I)] (A) the tax rate authorized by Section
59-12-204
, but only if all of the counties,
1319
cities, and towns in the state impose the tax [under] authorized by Section
59-12-204
; and
1320
[(II)] (B) the tax rate authorized by Section
59-12-1102
, but only if all of the counties
1321
in the state impose the tax [under] authorized by Section
59-12-1102
.
1322
[(iii) Except as provided in Subsection (2)(f), beginning on January 1, 2007, a state tax
1323
and a local tax is imposed on amounts paid or charged for food and food ingredients equal to
1324
the sum of:]
1325
[(A) a state tax imposed on the amounts paid or charged for food and food ingredients
1326
at a rate of 2.75%; and]
1327
[(B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1328
amounts paid or charged for food and food ingredients under this chapter other than this part.]
1329
(e) (i) A state tax and a local tax is imposed on an entire bundled transaction as
1330
provided in this Subsection (2)(e) if the bundled transaction is attributable to food and food
1331
ingredients and tangible personal property other than food and food ingredients.
1332
(ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
1333
seller other than a seller that collects a tax in accordance with Subsection
59-12-107
(1)(b),
1334
beginning on January 1, 2007, a state tax and a local tax is imposed on the entire bundled
1335
transaction equal to the sum of:
1336
(A) a state tax imposed on the entire bundled transaction at the tax rate described in
1337
Subsection (2)(a)(i); and
1338
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1339
described in Subsection (2)(a)(ii).
1340
(iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
1341
a seller in accordance with Subsection
59-12-107
(1)(b), beginning on January 1, 2007, a state
1342
tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
1343
(A) a state tax imposed on the entire bundled transaction at the tax rate described in
1344
Subsection (2)(d)(i)(A); and
1345
(B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
1346
of the following tax rates:
1347
(I) the tax rate authorized by Section
59-12-204
, but only if all of the counties, cities,
1348
and towns in the state impose the tax authorized by Section
59-12-204
; and
1349
(II) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
1350
state impose the tax authorized by Section
59-12-1102
.
1351
[(c)] (f) Subject to Subsections (2)[(d)](g) and [(e)] (h), a tax rate repeal or tax rate
1352
change for a tax rate imposed under the following shall take effect on the first day of a calendar
1353
quarter:
1354
(i) Subsection (2)(a)(i);
1355
(ii) Subsection (2)(b)(i)[(A)];
1356
(iii) Subsection (2)[(b)(ii)(A)](c)(i); [or]
1357
(iv) Subsection (2)[(b)(iii)(A).](d)(i);
1358
(v) Subsection (2)(e)(ii)(A); or
1359
(vi) Subsection (2)(e)(iii)(A).
1360
[(d)] (g) (i) For a transaction described in Subsection (2)[(d)](g)(iii), a tax rate increase
1361
shall take effect on the first day of the first billing period[: (A)] that begins after the effective
1362
date of the tax rate increase[; and (B)] if the billing period for the transaction begins before the
1363
effective date of a tax rate increase imposed under:
1364
[(I)] (A) Subsection (2)(a)(i);
1365
[(II)] (B) Subsection (2)(b)(i)[(A)]; [or]
1366
[(III)] (C) Subsection (2)[(b)(ii)(A).](c)(i);
1367
(D) Subsection (2)(d)(i);
1368
(E) Subsection (2)(e)(ii)(A); or
1369
(F) Subsection (2)(e)(iii)(A).
1370
(ii) For a transaction described in Subsection (2)[(d)](g)(iii), the repeal of a tax or a tax
1371
rate decrease shall take effect on the first day of the last billing period[: (A)] that began before
1372
the effective date of the repeal of the tax or the tax rate decrease[; and (B)] if the billing period
1373
for the transaction begins before the effective date of the repeal of the tax or the tax rate
1374
decrease imposed under:
1375
[(I)] (A) Subsection (2)(a)(i);
1376
[(II)] (B) Subsection (2)(b)(i)[(A)]; [or]
1377
[(III)] (C) Subsection (2)[(b)(ii)(A).](c)(i);
1378
(D) Subsection (2)(d)(i);
1379
(E) Subsection (2)(e)(ii)(A); or
1380
(F) Subsection (2)(e)(iii)(A).
1381
(iii) Subsections (2)[(d)](g)(i) and (ii) apply to transactions subject to a tax under:
1382
(A) Subsection (1)(b);
1383
(B) Subsection (1)(c);
1384
(C) Subsection (1)(d);
1385
(D) Subsection (1)(e);
1386
(E) Subsection (1)(f);
1387
(F) Subsection (1)(g);
1388
(G) Subsection (1)(h);
1389
(H) Subsection (1)(i);
1390
(I) Subsection (1)(j); or
1391
(J) Subsection (1)(k).
1392
[(e) (i) If a tax due under Subsection (2)(a)(i) or (2)(b)(ii)(A)]
1393
(h) (i) For a tax rate described in Subsection (2)(h)(ii), if a tax due on a catalogue sale
1394
is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
1395
or change in a tax rate [imposed under Subsection (2)(a)(i) or (2)(b)(ii)(A)] takes effect:
1396
(A) on the first day of a calendar quarter; and
1397
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change
1398
[under Subsection (2)(a)(i) or (2)(b)(ii)(A)].
1399
(ii) Subsection (2)(h)(i) applies to the tax rates described in the following:
1400
(A) Subsection (2)(a)(i);
1401
(B) Subsection (2)(b)(i);
1402
(C) Subsection (2)(c)(i);
1403
(D) Subsection (2)(d)(i);
1404
(E) Subsection (2)(e)(ii)(A); or
1405
(F) Subsection (2)(e)(iii)(A).
1406
[(ii)] (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
1407
Act, the commission may by rule define the term "catalogue sale."
1408
[(f) If the price of a bundled transaction is attributable to food and food ingredients and
1409
tangible personal property other than food and food ingredients, the tax imposed on the entire
1410
bundled transaction is the sum of the tax rates described in Subsection (2)(a).]
1411
(3) (a) Except as provided in Subsections (4) through (9), the following state taxes
1412
shall be deposited into the General Fund:
1413
(i) the tax imposed by Subsection (2)(a)(i);
1414
(ii) the tax imposed by Subsection (2)(b)(i)[(A)];
1415
(iii) the tax imposed by Subsection (2)[(b)(ii)(A)](c)(i); [or]
1416
(iv) the tax imposed by Subsection (2)[(b)(iii)(A).] (d)(i);
1417
(v) the tax imposed by Subsection (2)(e)(ii)(A); and
1418
(vi) the tax imposed by Subsection (2)(e)(iii)(A).
1419
(b) The following local taxes [described in Subsections (2)(a)(ii), (2)(b)(i)(B), and
1420
(2)(b)(iii)(B)] shall be distributed to a county, city, or town as provided in this chapter[.]:
1421
(i) the tax imposed by Subsection (2)(a)(ii);
1422
(ii) the tax imposed by Subsection (2)(b)(ii);
1423
(iii) the tax imposed by Subsection (2)(c)(ii); and
1424
(iv) the tax imposed by Subsection (2)(e)(ii)(B).
1425
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
1426
state shall receive the county's, city's, or town's proportionate share of the revenues generated
1427
by the following local [tax described in Subsection (2)(b)(ii)(B)] taxes as provided in
1428
Subsection (3)(c)(ii)[.]:
1429
(A) the local tax described in Subsection (2)(d)(ii); and
1430
(B) the local tax described in Subsection (2)(e)(iii)(B).
1431
(ii) [The] For revenues generated by a tax described in Subsection (3)(c)(i), the
1432
commission shall determine a county's, city's, or town's proportionate share of the revenues
1433
[under Subsection (3)(c)(i)] by:
1434
(A) calculating an amount equal to the population of the unincorporated area of the
1435
county, city, or town divided by the total population of the state; and
1436
(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
1437
amount of revenues generated by the [local tax under Subsection (2)(b)(ii)(B)] taxes described
1438
in Subsection (3)(c)(i) for all counties, cities, and towns.
1439
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
1440
purposes of this section shall be derived from the most recent official census or census estimate
1441
of the United States Census Bureau.
1442
(B) If a needed population estimate is not available from the United States Census
1443
Bureau, population figures shall be derived from the estimate from the Utah Population
1444
Estimates Committee created by executive order of the governor.
1445
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1446
2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
1447
through (g):
1448
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1449
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1450
(B) for the fiscal year; or
1451
(ii) $17,500,000.
1452
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1453
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
1454
Department of Natural Resources to:
1455
(A) implement the measures described in Subsections
63-34-14
(4)(a) through (d) to
1456
protect sensitive plant and animal species; or
1457
(B) award grants, up to the amount authorized by the Legislature in an appropriations
1458
act, to political subdivisions of the state to implement the measures described in Subsections
1459
63-34-14
(4)(a) through (d) to protect sensitive plant and animal species.
1460
(ii) Money transferred to the Department of Natural Resources under Subsection
1461
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1462
person to list or attempt to have listed a species as threatened or endangered under the
1463
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1464
(iii) At the end of each fiscal year:
1465
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1466
Conservation and Development Fund created in Section
73-10-24
;
1467
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1468
Program Subaccount created in Section
73-10c-5
; and
1469
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1470
Program Subaccount created in Section
73-10c-5
.
1471
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1472
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
1473
created in Section
4-18-6
.
1474
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1475
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
1476
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
1477
water rights.
1478
(ii) At the end of each fiscal year:
1479
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1480
Conservation and Development Fund created in Section
73-10-24
;
1481
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1482
Program Subaccount created in Section
73-10c-5
; and
1483
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1484
Program Subaccount created in Section
73-10c-5
.
1485
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1486
in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
1487
Fund created in Section
73-10-24
for use by the Division of Water Resources.
1488
(ii) In addition to the uses allowed of the Water Resources Conservation and
1489
Development Fund under Section
73-10-24
, the Water Resources Conservation and
1490
Development Fund may also be used to:
1491
(A) conduct hydrologic and geotechnical investigations by the Division of Water
1492
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1493
quantifying surface and ground water resources and describing the hydrologic systems of an
1494
area in sufficient detail so as to enable local and state resource managers to plan for and
1495
accommodate growth in water use without jeopardizing the resource;
1496
(B) fund state required dam safety improvements; and
1497
(C) protect the state's interest in interstate water compact allocations, including the
1498
hiring of technical and legal staff.
1499
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1500
in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
1501
created in Section
73-10c-5
for use by the Water Quality Board to fund wastewater projects.
1502
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1503
in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
1504
created in Section
73-10c-5
for use by the Division of Drinking Water to:
1505
(i) provide for the installation and repair of collection, treatment, storage, and
1506
distribution facilities for any public water system, as defined in Section
19-4-102
;
1507
(ii) develop underground sources of water, including springs and wells; and
1508
(iii) develop surface water sources.
1509
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1510
2006, the difference between the following amounts shall be expended as provided in this
1511
Subsection (5), if that difference is greater than $1:
1512
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
1513
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
1514
(ii) $17,500,000.
1515
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1516
(A) transferred each fiscal year to the Department of Natural Resources as dedicated
1517
credits; and
1518
(B) expended by the Department of Natural Resources for watershed rehabilitation or
1519
restoration.
1520
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1521
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
1522
created in Section
73-10-24
.
1523
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1524
remaining difference described in Subsection (5)(a) shall be:
1525
(A) transferred each fiscal year to the Division of Water Resources as dedicated
1526
credits; and
1527
(B) expended by the Division of Water Resources for cloud-seeding projects
1528
authorized by Title 73, Chapter 15, Modification of Weather.
1529
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1530
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
1531
created in Section
73-10-24
.
1532
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
1533
remaining difference described in Subsection (5)(a) shall be deposited into the Water
1534
Resources Conservation and Development Fund created in Section
73-10-24
for use by the
1535
Division of Water Resources for:
1536
(i) preconstruction costs:
1537
(A) as defined in Subsection
73-26-103
(6) for projects authorized by Title 73, Chapter
1538
26, Bear River Development Act; and
1539
(B) as defined in Subsection
73-28-103
(8) for the Lake Powell Pipeline project
1540
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1541
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1542
Chapter 26, Bear River Development Act;
1543
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1544
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1545
(iv) other uses authorized under Sections
73-10-24
,
73-10-25.1
,
73-10-30
, and
1546
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1547
(e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
1548
Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
1549
(f) After making the transfers required by Subsections (5)(b) and (c) and subject to
1550
Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
1551
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
1552
incurred for employing additional technical staff for the administration of water rights.
1553
(g) At the end of each fiscal year, any unexpended dedicated credits described in
1554
Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
1555
Fund created in Section
73-10-24
.
1556
(6) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1557
2003, the lesser of the following amounts shall be used as provided in Subsections (6)(b)
1558
through (d):
1559
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1560
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1561
(B) for the fiscal year; or
1562
(ii) $18,743,000.
1563
(b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
1564
in Subsection (6)(a) shall be deposited each year in the Transportation Corridor Preservation
1565
Revolving Loan Fund created in Section
72-2-117
.
1566
(ii) At least 50% of the money deposited in the Transportation Corridor Preservation
1567
Revolving Loan Fund under Subsection (6)(b)(i) shall be used to fund loan applications made
1568
by the Department of Transportation at the request of local governments.
1569
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1570
Subsection (6)(a) shall be transferred each year as nonlapsing dedicated credits to the
1571
Department of Transportation for the State Park Access Highways Improvement Program
1572
created in Section
72-3-207
.
1573
(d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
1574
Subsection (6)(a) shall be deposited in the class B and class C roads account to be expended as
1575
provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C
1576
roads.
1577
(7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
1578
beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
1579
Highway Fund Restricted Account created in Section
72-2-118
a portion of the taxes listed
1580
under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
1581
transactions under Subsection (1).
1582
(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
1583
have been paid off and the highway projects completed that are intended to be paid from
1584
revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
1585
Executive Appropriations Committee under Subsection
72-2-118
(6)(d), the Division of
1586
Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
1587
72-2-124
a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
1588
by a 1/64% tax rate on the taxable transactions under Subsection (1).
1589
(8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
1590
year 2004-05, the commission shall each year on or before the September 30 immediately
1591
following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
1592
into the Remote Sales Restricted Account created in Section
59-12-103.2
if that difference is
1593
greater than $0.
1594
(b) The difference described in Subsection (8)(a) is equal to the difference between:
1595
(i) the total amount of the revenues [under Subsections (2)(b)(ii)(A) and (2)(b)(iii)(A)]