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S.B. 142
This document includes Senate Committee Amendments incorporated into the bill on
Wed, Jan 24, 2007 at 10:38 AM by rday. -->
This document includes Senate Committee Amendments (CORRECTED) incorporated
into the bill on Wed, Feb 7, 2007 at 11:11 AM by rday. -->
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SALES AND USE TAX EXEMPTIONS AND
2
REFUND FOR CERTAIN BUSINESS INPUTS
3
2007 GENERAL SESSION
4
STATE OF UTAH
5
Chief Sponsor: Howard A. Stephenson
6
House Sponsor:
Wayne A. Harper
7
8
LONG TITLE
9
General Description:
10
This bill amends the Sales and Use Tax Act to provide sales and use tax exemptions
11
and a refund for certain business inputs.
12
Highlighted Provisions:
13
This bill:
14
. expands the definition of "industrial use" so that the use of natural gas, electricity,
15
heat, coal, fuel oil, or other fuels are exempt from sales and use taxation if used in
16
manufacturing tangible personal property at certain establishments listed under the
17
North American Industry Classification System;
18
. expands the definition of "manufacturing facility" to include certain establishments
19
listed under the North American Industry Classification System;
20
. provides a sales and use tax exemption and refund for certain machinery,
21
equipment, or repair or replacement parts purchased or leased by certain
22
establishments listed under the North American Industry Classification System;
23
. grants rulemaking authority to the State Tax Commission;
24
. modifies State Tax Commission rulemaking authority; and
25
. makes technical changes.
26
Monies Appropriated in this Bill:
27
None
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Other Special Clauses:
29
This bill takes effect on July 1, 2007.
30
Utah Code Sections Affected:
31
AMENDS:
32
59-12-102, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
33
59-12-104, as last amended by Chapters 181, 182, 217, 218, 219, 220, 246, 268 and
34
346, Laws of Utah 2006
35
ENACTS:
36
59-12-104.4, Utah Code Annotated 1953
37
38
Be it enacted by the Legislature of the state of Utah:
39
Section 1.
Section
59-12-102
is amended to read:
40
59-12-102. Definitions.
41
As used in this chapter:
42
(1) (a) "Admission or user fees" includes season passes.
43
(b) "Admission or user fees" does not include annual membership dues to private
44
organizations.
45
(2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
46
Section
59-12-102.1
.
47
(3) "Agreement combined tax rate" means the sum of the tax rates:
48
(a) listed under Subsection (4); and
49
(b) that are imposed within a local taxing jurisdiction.
50
(4) "Agreement sales and use tax" means a tax imposed under:
51
(a) Subsection
59-12-103
(2)(a)(i) or (2)(b)(iii)(A);
52
(b) Section
59-12-204
;
53
(c) Section
59-12-401
;
54
(d) Section
59-12-402
;
55
(e) Section
59-12-501
;
56
(f) Section
59-12-502
;
57
(g) Section
59-12-703
;
58
(h) Section
59-12-802
;
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(i) Section
59-12-804
;
60
(j) Section
59-12-1001
;
61
(k) Section
59-12-1102
;
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(l) Section
59-12-1302
;
63
(m) Section
59-12-1402
; or
64
(n) Section
59-12-1503
.
65
(5) "Aircraft" is as defined in Section
72-10-102
.
66
(6) "Alcoholic beverage" means a beverage that:
67
(a) is suitable for human consumption; and
68
(b) contains .5% or more alcohol by volume.
69
(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
71
device that is started and stopped by an individual:
72
(a) who is not the purchaser or renter of the right to use or operate the amusement
73
device, skill device, or ride device; and
74
(b) at the direction of the seller of the right to use the amusement device, skill device,
75
or ride device.
76
(9) "Assisted cleaning or washing of tangible personal property" means cleaning or
77
washing of tangible personal property if the cleaning or washing labor is primarily performed
78
by an individual:
79
(a) who is not the purchaser of the cleaning or washing of the tangible personal
80
property; and
81
(b) at the direction of the seller of the cleaning or washing of the tangible personal
82
property.
83
(10) "Authorized carrier" means:
84
(a) in the case of vehicles operated over public highways, the holder of credentials
85
indicating that the vehicle is or will be operated pursuant to both the International Registration
86
Plan and the International Fuel Tax Agreement;
87
(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
88
certificate or air carrier's operating certificate; or
89
(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.
91
(11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
92
following that is used as the primary source of energy to produce fuel or electricity:
93
(i) material from a plant or tree; or
94
(ii) other organic matter that is available on a renewable basis, including:
95
(A) slash and brush from forests and woodlands;
96
(B) animal waste;
97
(C) methane produced:
98
(I) at landfills; or
99
(II) as a byproduct of the treatment of wastewater residuals;
100
(D) aquatic plants; and
101
(E) agricultural products.
102
(b) "Biomass energy" does not include:
103
(i) black liquor;
104
(ii) treated woods; or
105
(iii) biomass from municipal solid waste other than methane produced:
106
(A) at landfills; or
107
(B) as a byproduct of the treatment of wastewater residuals.
108
(12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
109
property if:
110
(i) one or more of the items of tangible personal property is food and food ingredients;
111
and
112
(ii) the items of tangible personal property are:
113
(A) distinct and identifiable; and
114
(B) sold for one price that is not itemized.
115
(b) "Bundled transaction" does not include the sale of tangible personal property if the
116
sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
117
tangible personal property included in the transaction.
118
(c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
119
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
122
(B) is incidental or immaterial to the sale of the tangible personal property;
123
(ii) tangible personal property provided free of charge with the purchase of another
124
item of tangible personal property; or
125
(iii) an item of tangible personal property included in the definition of "purchase
126
price."
127
(d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
128
provided free of charge with the purchase of another item of tangible personal property if the
129
sales price of the purchased item of tangible personal property does not vary depending on the
130
inclusion of the tangible personal property provided free of charge.
131
(13) "Certified automated system" means software certified by the governing board of
132
the agreement in accordance with Section
59-12-102.1
that:
133
(a) calculates the agreement sales and use tax imposed within a local taxing
134
jurisdiction:
135
(i) on a transaction; and
136
(ii) in the states that are members of the agreement;
137
(b) determines the amount of agreement sales and use tax to remit to a state that is a
138
member of the agreement; and
139
(c) maintains a record of the transaction described in Subsection (13)(a)(i).
140
(14) "Certified service provider" means an agent certified:
141
(a) by the governing board of the agreement in accordance with Section
59-12-102.1
;
142
and
143
(b) to perform all of a seller's sales and use tax functions for an agreement sales and
144
use tax other than the seller's obligation under Section
59-12-107.4
to remit a tax on the seller's
145
own purchases.
146
(15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
147
suitable for general use.
148
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
149
commission shall make rules:
150
(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.
153
(16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
154
(17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
155
fuels that does not constitute industrial use under Subsection (39) or residential use under
156
Subsection (76).
157
(18) (a) "Common carrier" means a person engaged in or transacting the business of
158
transporting passengers, freight, merchandise, or other property for hire within this state.
159
(b) (i) "Common carrier" does not include a person who, at the time the person is
160
traveling to or from that person's place of employment, transports a passenger to or from the
161
passenger's place of employment.
162
(ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
163
Utah Administrative Rulemaking Act, the commission may make rules defining what
164
constitutes a person's place of employment.
165
(19) "Component part" includes:
166
(a) poultry, dairy, and other livestock feed, and their components;
167
(b) baling ties and twine used in the baling of hay and straw;
168
(c) fuel used for providing temperature control of orchards and commercial
169
greenhouses doing a majority of their business in wholesale sales, and for providing power for
170
off-highway type farm machinery; and
171
(d) feed, seeds, and seedlings.
172
(20) "Computer" means an electronic device that accepts information:
173
(a) (i) in digital form; or
174
(ii) in a form similar to digital form; and
175
(b) manipulates that information for a result based on a sequence of instructions.
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(21) "Computer software" means a set of coded instructions designed to cause:
177
(a) a computer to perform a task; or
178
(b) automatic data processing equipment to perform a task.
179
(22) "Construction materials" means any tangible personal property that will be
180
converted into real property.
181
(23) "Delivered electronically" means delivered to a purchaser by means other than
182
tangible storage media.
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(24) (a) "Delivery charge" means a charge:
184
(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
188
in Subsection (24)(a)(i) to a location designated by the purchaser.
189
(b) "Delivery charge" includes a charge for the following:
190
(i) transportation;
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(ii) shipping;
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(iii) postage;
193
(iv) handling;
194
(v) crating; or
195
(vi) packing.
196
(25) "Dietary supplement" means a product, other than tobacco, that:
197
(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
199
(i) a vitamin;
200
(ii) a mineral;
201
(iii) an herb or other botanical;
202
(iv) an amino acid;
203
(v) a dietary substance for use by humans to supplement the diet by increasing the total
204
dietary intake; or
205
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
206
described in Subsections (25)(b)(i) through (v);
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(c) (i) except as provided in Subsection (25)(c)(ii), is intended for ingestion in:
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(A) tablet form;
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(B) capsule form;
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(C) powder form;
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(D) softgel form;
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(E) gelcap form; or
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(F) liquid form; or
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(ii) notwithstanding Subsection (25)(c)(i), if the product is not intended for ingestion in
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a form described in Subsections (25)(c)(i)(A) through (F), is not represented:
216
(A) as conventional food; and
217
(B) for use as a sole item of:
218
(I) a meal; or
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(II) the diet; and
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(d) is required to be labeled as a dietary supplement:
221
(i) identifiable by the "Supplemental Facts" box found on the label; and
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(ii) as required by 21 C.F.R. Sec. 101.36.
223
(26) (a) "Direct mail" means printed material delivered or distributed by United States
224
mail or other delivery service:
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(i) to:
226
(A) a mass audience; or
227
(B) addressees on a mailing list provided by a purchaser of the mailing list; and
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(ii) if the cost of the printed material is not billed directly to the recipients.
229
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
230
purchaser to a seller of direct mail for inclusion in a package containing the printed material.
231
(c) "Direct mail" does not include multiple items of printed material delivered to a
232
single address.
233
(27) (a) "Drug" means a compound, substance, or preparation, or a component of a
234
compound, substance, or preparation that is:
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(i) recognized in:
236
(A) the official United States Pharmacopoeia;
237
(B) the official Homeopathic Pharmacopoeia of the United States;
238
(C) the official National Formulary; or
239
(D) a supplement to a publication listed in Subsections (27)(a)(i)(A) through (C);
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(ii) intended for use in the:
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(A) diagnosis of disease;
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(B) cure of disease;
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(C) mitigation of disease;
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(D) treatment of disease; or
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(E) prevention of disease; or
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(iii) intended to affect:
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(A) the structure of the body; or
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(B) any function of the body.
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(b) "Drug" does not include:
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(i) food and food ingredients;
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(ii) a dietary supplement;
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(iii) an alcoholic beverage; or
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(iv) a prosthetic device.
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(28) (a) Except as provided in Subsection (28)(c), "durable medical equipment" means
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equipment that:
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(i) can withstand repeated use;
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(ii) is primarily and customarily used to serve a medical purpose;
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(iii) generally is not useful to a person in the absence of illness or injury; and
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(iv) is not worn in or on the body.
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(b) "Durable medical equipment" includes parts used in the repair or replacement of the
261
equipment described in Subsection (28)(a).
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(c) Notwithstanding Subsection (28)(a), "durable medical equipment" does not include
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mobility enhancing equipment.
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(29) "Electronic" means:
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(a) relating to technology; and
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(b) having:
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(i) electrical capabilities;
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(ii) digital capabilities;
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(iii) magnetic capabilities;
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(iv) wireless capabilities;
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(v) optical capabilities;
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(vi) electromagnetic capabilities; or
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(vii) capabilities similar to Subsections (29)(b)(i) through (vi).
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(30) "Employee" is as defined in Section
59-10-401
.
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(31) "Fixed guideway" means a public transit facility that uses and occupies:
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(a) rail for the use of public transit; or
277
(b) a separate right-of-way for the use of public transit.
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(32) (a) "Food and food ingredients" means substances:
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(i) regardless of whether the substances are in:
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(A) liquid form;
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(B) concentrated form;
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(C) solid form;
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(D) frozen form;
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(E) dried form; or
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(F) dehydrated form; and
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(ii) that are:
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(A) sold for:
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(I) ingestion by humans; or
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(II) chewing by humans; and
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(B) consumed for the substance's:
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(I) taste; or
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(II) nutritional value.
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(b) "Food and food ingredients" includes an item described in Subsection (63)(b)(iii).
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(c) "Food and food ingredients" does not include:
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(i) an alcoholic beverage;
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(ii) tobacco; or
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(iii) prepared food.
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(33) (a) "Fundraising sales" means sales:
299
(i) (A) made by a school; or
300
(B) made by a school student;
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(ii) that are for the purpose of raising funds for the school to purchase equipment,
302
materials, or provide transportation; and
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(iii) that are part of an officially sanctioned school activity.
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(b) For purposes of Subsection (33)(a)(iii), "officially sanctioned school activity"
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means a school activity:
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(i) that is conducted in accordance with a formal policy adopted by the school or school
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district governing the authorization and supervision of fundraising activities;
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(ii) that does not directly or indirectly compensate an individual teacher or other
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educational personnel by direct payment, commissions, or payment in kind; and
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(iii) the net or gross revenues from which are deposited in a dedicated account
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controlled by the school or school district.
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(34) "Geothermal energy" means energy contained in heat that continuously flows
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outward from the earth that is used as the sole source of energy to produce electricity.
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(35) "Governing board of the agreement" means the governing board of the agreement
315
that is:
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(a) authorized to administer the agreement; and
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(b) established in accordance with the agreement.
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(36) (a) "Hearing aid" means:
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(i) an instrument or device having an electronic component that is designed to:
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(A) (I) improve impaired human hearing; or
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(II) correct impaired human hearing; and
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(B) (I) be worn in the human ear; or
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(II) affixed behind the human ear;
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(ii) an instrument or device that is surgically implanted into the cochlea; or
325
(iii) a telephone amplifying device.
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(b) "Hearing aid" does not include:
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(i) except as provided in Subsection (36)(a)(i)(B) or (36)(a)(ii), an instrument or device
328
having an electronic component that is designed to be worn on the body;
329
(ii) except as provided in Subsection (36)(a)(iii), an assistive listening device or system
330
designed to be used by one individual, including:
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(A) a personal amplifying system;
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(B) a personal FM system;
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(C) a television listening system; or
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(D) a device or system similar to a device or system described in Subsections
335
(36)(b)(ii)(A) through (C); or
336
(iii) an assistive listening device or system designed to be used by more than one
337
individual, including:
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(A) a device or system installed in:
339
(I) an auditorium;
340
(II) a church;
341
(III) a conference room;
342
(IV) a synagogue; or
343
(V) a theater; or
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(B) a device or system similar to a device or system described in Subsections
345
(36)(b)(iii)(A)(I) through (V).
346
(37) (a) "Hearing aid accessory" means a hearing aid:
347
(i) component;
348
(ii) attachment; or
349
(iii) accessory.
350
(b) "Hearing aid accessory" includes:
351
(i) a hearing aid neck loop;
352
(ii) a hearing aid cord;
353
(iii) a hearing aid ear mold;
354
(iv) hearing aid tubing;
355
(v) a hearing aid ear hook; or
356
(vi) a hearing aid remote control.
357
(c) "Hearing aid accessory" does not include:
358
(i) a component, attachment, or accessory designed to be used only with an:
359
(A) instrument or device described in Subsection (36)(b)(i); or
360
(B) assistive listening device or system described in Subsection (36)(b)(ii) or (iii); or
361
(ii) a hearing aid battery.
362
(38) "Hydroelectric energy" means water used as the sole source of energy to produce
363
electricity.
364
(39) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
365
other fuels:
366
(a) in mining or extraction of minerals;
367
(b) in agricultural operations to produce an agricultural product up to the time of
368
harvest or placing the agricultural product into a storage facility, including:
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(i) commercial greenhouses;
370
(ii) irrigation pumps;
371
(iii) farm machinery;
372
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
373
registered under Title 41, Chapter 1a, Part 2, Registration; and
374
(v) other farming activities;
375
(c) in manufacturing tangible personal property at an establishment described in:
376
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
377
the federal Executive Office of the President, Office of Management and Budget; or
378
(ii) NAICS Sectors 31 through 33, Manufacturing, of the 2002 North American
379
Industry Classification System of the federal Executive Office of the President, Office of
380
Management and Budget;
381
(d) by a scrap recycler if:
382
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
383
one or more of the following items into prepared grades of processed materials for use in new
384
products:
385
(A) iron;
386
(B) steel;
387
(C) nonferrous metal;
388
(D) paper;
389
(E) glass;
390
(F) plastic;
391
(G) textile; or
392
(H) rubber; and
393
(ii) the new products under Subsection (39)(d)(i) would otherwise be made with
394
nonrecycled materials; or
395
(e) in producing a form of energy or steam described in Subsection
54-2-1
(2)(a) by a
396
cogeneration facility as defined in Section
54-2-1
.
397
(40) (a) Except as provided in Subsection (40)(b), "installation charge" means a charge
398
for installing tangible personal property.
399
(b) Notwithstanding Subsection (40)(a), "installation charge" does not include a charge
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400
for repairs or renovations of tangible personal property.
401
(41) (a) "Lease" or "rental" means a transfer of possession or control of tangible
402
personal property for:
403
(i) (A) a fixed term; or
404
(B) an indeterminate term; and
405
(ii) consideration.
406
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
407
amount of consideration may be increased or decreased by reference to the amount realized
408
upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
409
Code.
410
(c) "Lease" or "rental" does not include:
411
(i) a transfer of possession or control of property under a security agreement or
412
deferred payment plan that requires the transfer of title upon completion of the required
413
payments;
414
(ii) a transfer of possession or control of property under an agreement that requires the
415
transfer of title:
416
(A) upon completion of required payments; and
417
(B) if the payment of an option price does not exceed the greater of:
418
(I) $100; or
419
(II) 1% of the total required payments; or
420
(iii) providing tangible personal property along with an operator for a fixed period of
421
time or an indeterminate period of time if the operator is necessary for equipment to perform as
422
designed.
423
(d) For purposes of Subsection (41)(c)(iii), an operator is necessary for equipment to
424
perform as designed if the operator's duties exceed the:
425
(i) set-up of tangible personal property;
426
(ii) maintenance of tangible personal property; or
427
(iii) inspection of tangible personal property.
428
(42) "Load and leave" means delivery to a purchaser by use of a tangible storage media
429
if the tangible storage media is not physically transferred to the purchaser.
430
(43) "Local taxing jurisdiction" means a:
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431
(a) county that is authorized to impose an agreement sales and use tax;
432
(b) city that is authorized to impose an agreement sales and use tax; or
433
(c) town that is authorized to impose an agreement sales and use tax.
434
(44) "Manufactured home" is as defined in Section
58-56-3
.
435
(45) For purposes of Section
59-12-104
, "manufacturing facility" means:
436
(a) an establishment described in:
437
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
438
the federal Executive Office of the President, Office of Management and Budget; or
439
(ii) NAICS Sectors 31 through 33, Manufacturing, of the 2002 North American
440
Industry Classification System of the federal Executive Office of the President, Office of
441
Management and Budget;
442
(b) a scrap recycler if:
443
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
444
one or more of the following items into prepared grades of processed materials for use in new
445
products:
446
(A) iron;
447
(B) steel;
448
(C) nonferrous metal;
449
(D) paper;
450
(E) glass;
451
(F) plastic;
452
(G) textile; or
453
(H) rubber; and
454
(ii) the new products under Subsection (45)(b)(i) would otherwise be made with
455
nonrecycled materials; or
456
(c) a cogeneration facility as defined in Section
54-2-1
.
457
(46) "Member of the immediate family of the producer" means a person who is related
458
to a producer described in Subsection
59-12-104
(20)(a) as a:
459
(a) child or stepchild, regardless of whether the child or stepchild is:
460
(i) an adopted child or adopted stepchild; or
461
(ii) a foster child or foster stepchild;
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(b) grandchild or stepgrandchild;
463
(c) grandparent or stepgrandparent;
464
(d) nephew or stepnephew;
465
(e) niece or stepniece;
466
(f) parent or stepparent;
467
(g) sibling or stepsibling;
468
(h) spouse;
469
(i) person who is the spouse of a person described in Subsections (46)(a) through (g);
470
or
471
(j) person similar to a person described in Subsections (46)(a) through (i) as
472
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
473
Administrative Rulemaking Act.
474
(47) "Mobile home" is as defined in Section
58-56-3
.
475
(48) "Mobile telecommunications service" is as defined in the Mobile
476
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
477
(49) (a) Except as provided in Subsection (49)(c), "mobility enhancing equipment"
478
means equipment that is:
479
(i) primarily and customarily used to provide or increase the ability to move from one
480
place to another;
481
(ii) appropriate for use in a:
482
(A) home; or
483
(B) motor vehicle; and
484
(iii) not generally used by persons with normal mobility.
485
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
486
the equipment described in Subsection (49)(a).
487
(c) Notwithstanding Subsection (49)(a), "mobility enhancing equipment" does not
488
include:
489
(i) a motor vehicle;
490
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
491
vehicle manufacturer;
492
(iii) durable medical equipment; or
Text Box
- 17 -
493
(iv) a prosthetic device.
494
(50) "Model 1 seller" means a seller that has selected a certified service provider as the
495
seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
496
use taxes other than the seller's obligation under Section
59-12-107.4
to remit a tax on the
497
seller's own purchases.
498
(51) "Model 2 seller" means a seller that:
499
(a) except as provided in Subsection (51)(b), has selected a certified automated system
500
to perform the seller's sales tax functions for agreement sales and use taxes; and
501
(b) notwithstanding Subsection (51)(a), retains responsibility for remitting all of the
502
sales tax:
503
(i) collected by the seller; and
504
(ii) to the appropriate local taxing jurisdiction.
505
(52) (a) Subject to Subsection (52)(b), "model 3 seller" means a seller that has:
506
(i) sales in at least five states that are members of the agreement;
507
(ii) total annual sales revenues of at least $500,000,000;
508
(iii) a proprietary system that calculates the amount of tax:
509
(A) for an agreement sales and use tax; and
510
(B) due to each local taxing jurisdiction; and
511
(iv) entered into a performance agreement with the governing board of the agreement.
512
(b) For purposes of Subsection (52)(a), "model 3 seller" includes an affiliated group of
513
sellers using the same proprietary system.
514
(53) "Modular home" means a modular unit as defined in Section
58-56-3
.
515
(54) "Motor vehicle" is as defined in Section
41-1a-102
.
516
(55) "Oil shale" means a group of fine black to dark brown shales containing
517
bituminous material that yields petroleum upon distillation.
518
(56) (a) "Other fuels" means products that burn independently to produce heat or
519
energy.
520
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
521
personal property.
522
(57) "Pawnbroker" is as defined in Section
13-32a-102
.
523
(58) "Pawn transaction" is as defined in Section
13-32a-102
.
Text Box
- 18 -
524
(59) (a) "Permanently attached to real property" means that for tangible personal
525
property attached to real property:
526
(i) the attachment of the tangible personal property to the real property:
527
(A) is essential to the use of the tangible personal property; and
528
(B) suggests that the tangible personal property will remain attached to the real
529
property in the same place over the useful life of the tangible personal property; or
530
(ii) if the tangible personal property is detached from the real property, the detachment
531
would:
532
(A) cause substantial damage to the tangible personal property; or
533
(B) require substantial alteration or repair of the real property to which the tangible
534
personal property is attached.
535
(b) "Permanently attached to real property" includes:
536
(i) the attachment of an accessory to the tangible personal property if the accessory is:
537
(A) essential to the operation of the tangible personal property; and
538
(B) attached only to facilitate the operation of the tangible personal property;
539
(ii) a temporary detachment of tangible personal property from real property for a
540
repair or renovation if the repair or renovation is performed where the tangible personal
541
property and real property are located; or
542
(iii) an attachment of the following tangible personal property to real property,
543
regardless of whether the attachment to real property is only through a line that supplies water,
544
electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
545
rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
546
(A) property attached to oil, gas, or water pipelines, other than the property listed in
547
Subsection (59)(c)(iii);
548
(B) a hot water heater;
549
(C) a water softener system; or
550
(D) a water filtration system, other than a water filtration system manufactured as part
551
of a refrigerator.
552
(c) "Permanently attached to real property" does not include:
553
(i) the attachment of portable or movable tangible personal property to real property if
554
that portable or movable tangible personal property is attached to real property only for:
Text Box
- 19 -
555
(A) convenience;
556
(B) stability; or
557
(C) for an obvious temporary purpose;
558
(ii) the detachment of tangible personal property from real property other than the
559
detachment described in Subsection (59)(b)(ii); or
560
(iii) an attachment of the following tangible personal property to real property if the
561
attachment to real property is only through a line that supplies water, electricity, gas, telephone,
562
cable, or supplies a similar item as determined by the commission by rule made in accordance
563
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
564
(A) a refrigerator;
565
(B) a washer;
566
(C) a dryer;
567
(D) a stove;
568
(E) a television;
569
(F) a computer;
570
(G) a telephone; or
571
(H) tangible personal property similar to Subsections (59)(c)(iii)(A) through (G) as
572
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
573
Administrative Rulemaking Act.
574
(60) "Person" includes any individual, firm, partnership, joint venture, association,
575
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
576
municipality, district, or other local governmental entity of the state, or any group or
577
combination acting as a unit.
578
(61) "Place of primary use":
579
(a) for telephone service other than mobile telecommunications service, means the
580
street address representative of where the purchaser's use of the telephone service primarily
581
occurs, which shall be:
582
(i) the residential street address of the purchaser; or
583
(ii) the primary business street address of the purchaser; or
584
(b) for mobile telecommunications service, is as defined in the Mobile
585
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
Text Box
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586
(62) "Postproduction" means an activity related to the finishing or duplication of a
587
medium described in Subsection
59-12-104
(56)(a).
588
(63) (a) "Prepared food" means:
589
(i) food:
590
(A) sold in a heated state; or
591
(B) heated by a seller;
592
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
593
item; or
594
(iii) except as provided in Subsection (63)(c), food sold with an eating utensil provided
595
by the seller, including a:
596
(A) plate;
597
(B) knife;
598
(C) fork;
599
(D) spoon;
600
(E) glass;
601
(F) cup;
602
(G) napkin; or
603
(H) straw.
604
(b) "Prepared food" does not include:
605
(i) food that a seller only:
606
(A) cuts;
607
(B) repackages; or
608
(C) pasteurizes; or
609
(ii) (A) the following:
610
(I) raw egg;
611
(II) raw fish;
612
(III) raw meat;
613
(IV) raw poultry; or
614
(V) a food containing an item described in Subsections (63)(b)(ii)(A)(I) through (IV);
615
and
616
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
Text Box
- 21 -
617
Food and Drug Administration's Food Code that a consumer cook the items described in
618
Subsection (63)(b)(ii)(A) to prevent food borne illness; or
619
(iii) the following if sold without eating utensils provided by the seller:
620
(A) food and food ingredients sold by a seller if the seller's proper primary
621
classification under the 2002 North American Industry Classification System of the federal
622
Executive Office of the President, Office of Management and Budget, is manufacturing in
623
Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
624
Manufacturing;
625
(B) food and food ingredients sold in an unheated state:
626
(I) by weight or volume; and
627
(II) as a single item; or
628
(C) a bakery item, including:
629
(I) a bagel;
630
(II) a bar;
631
(III) a biscuit;
632
(IV) bread;
633
(V) a bun;
634
(VI) a cake;
635
(VII) a cookie;
636
(VIII) a croissant;
637
(IX) a danish;
638
(X) a donut;
639
(XI) a muffin;
640
(XII) a pastry;
641
(XIII) a pie;
642
(XIV) a roll;
643
(XV) a tart;
644
(XVI) a torte; or
645
(XVII) a tortilla.
646
(c) Notwithstanding Subsection (63)(a)(iii), an eating utensil provided by the seller
647
does not include the following used to transport the food:
Text Box
- 22 -
648
(i) a container; or
649
(ii) packaging.
650
(64) "Prescription" means an order, formula, or recipe that is issued:
651
(a) (i) orally;
652
(ii) in writing;
653
(iii) electronically; or
654
(iv) by any other manner of transmission; and
655
(b) by a licensed practitioner authorized by the laws of a state.
656
(65) (a) Except as provided in Subsection (65)(b)(ii) or (iii), "prewritten computer
657
software" means computer software that is not designed and developed:
658
(i) by the author or other creator of the computer software; and
659
(ii) to the specifications of a specific purchaser.
660
(b) "Prewritten computer software" includes:
661
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
662
software is not designed and developed:
663
(A) by the author or other creator of the computer software; and
664
(B) to the specifications of a specific purchaser;
665
(ii) notwithstanding Subsection (65)(a), computer software designed and developed by
666
the author or other creator of the computer software to the specifications of a specific purchaser
667
if the computer software is sold to a person other than the purchaser; or
668
(iii) notwithstanding Subsection (65)(a) and except as provided in Subsection (65)(c),
669
prewritten computer software or a prewritten portion of prewritten computer software:
670
(A) that is modified or enhanced to any degree; and
671
(B) if the modification or enhancement described in Subsection (65)(b)(iii)(A) is
672
designed and developed to the specifications of a specific purchaser.
673
(c) Notwithstanding Subsection (65)(b)(iii), "prewritten computer software" does not
674
include a modification or enhancement described in Subsection (65)(b)(iii) if the charges for
675
the modification or enhancement are:
676
(i) reasonable; and
677
(ii) separately stated on the invoice or other statement of price provided to the
678
purchaser.
Text Box
- 23 -
679
(66) (a) "Prosthetic device" means a device that is worn on or in the body to:
680
(i) artificially replace a missing portion of the body;
681
(ii) prevent or correct a physical deformity or physical malfunction; or
682
(iii) support a weak or deformed portion of the body.
683
(b) "Prosthetic device" includes:
684
(i) parts used in the repairs or renovation of a prosthetic device; or
685
(ii) replacement parts for a prosthetic device.
686
(c) "Prosthetic device" does not include:
687
(i) corrective eyeglasses;
688
(ii) contact lenses;
689
(iii) hearing aids; or
690
(iv) dental prostheses.
691
(67) (a) "Protective equipment" means an item:
692
(i) for human wear; and
693
(ii) that is:
694
(A) designed as protection:
695
(I) to the wearer against injury or disease; or
696
(II) against damage or injury of other persons or property; and
697
(B) not suitable for general use.
698
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
699
commission shall make rules:
700
(i) listing the items that constitute "protective equipment"; and
701
(ii) that are consistent with the list of items that constitute "protective equipment"
702
under the agreement.
703
(68) (a) "Purchase price" and "sales price" mean the total amount of consideration:
704
(i) valued in money; and
705
(ii) for which tangible personal property or services are:
706
(A) sold;
707
(B) leased; or
708
(C) rented.
709
(b) "Purchase price" and "sales price" include:
Text Box
- 24 -
710
(i) the seller's cost of the tangible personal property or services sold;
711
(ii) expenses of the seller, including:
712
(A) the cost of materials used;
713
(B) a labor cost;
714
(C) a service cost;
715
(D) interest;
716
(E) a loss;
717
(F) the cost of transportation to the seller; or
718
(G) a tax imposed on the seller; or
719
(iii) a charge by the seller for any service necessary to complete the sale.
720
(c) "Purchase price" and "sales price" do not include:
721
(i) a discount:
722
(A) in a form including:
723
(I) cash;
724
(II) term; or
725
(III) coupon;
726
(B) that is allowed by a seller;
727
(C) taken by a purchaser on a sale; and
728
(D) that is not reimbursed by a third party; or
729
(ii) the following if separately stated on an invoice, bill of sale, or similar document
730
provided to the purchaser:
731
(A) the amount of a trade-in;
732
(B) the following from credit extended on the sale of tangible personal property or
733
services:
734
(I) interest charges;
735
(II) financing charges; or
736
(III) carrying charges;
737
(C) a tax or fee legally imposed directly on the consumer;
738
(D) a delivery charge; or
739
(E) an installation charge.
740
(69) "Purchaser" means a person to whom:
Text Box
- 25 -
741
(a) a sale of tangible personal property is made; or
742
(b) a service is furnished.
743
(70) "Regularly rented" means:
744
(a) rented to a guest for value three or more times during a calendar year; or
745
(b) advertised or held out to the public as a place that is regularly rented to guests for
746
value.
747
(71) "Renewable energy" means:
748
(a) biomass energy;
749
(b) hydroelectric energy;
750
(c) geothermal energy;
751
(d) solar energy; or
752
(e) wind energy.
753
(72) (a) "Renewable energy production facility" means a facility that:
754
(i) uses renewable energy to produce electricity; and
755
(ii) has a production capacity of 20 kilowatts or greater.
756
(b) A facility is a renewable energy production facility regardless of whether the
757
facility is:
758
(i) connected to an electric grid; or
759
(ii) located on the premises of an electricity consumer.
760
(73) "Rental" is as defined in Subsection (41).
761
(74) "Repairs or renovations of tangible personal property" means:
762
(a) a repair or renovation of tangible personal property that is not permanently attached
763
to real property; or
764
(b) attaching tangible personal property to other tangible personal property if the other
765
tangible personal property to which the tangible personal property is attached is not
766
permanently attached to real property.
767
(75) "Research and development" means the process of inquiry or experimentation
768
aimed at the discovery of facts, devices, technologies, or applications and the process of
769
preparing those devices, technologies, or applications for marketing.
770
(76) "Residential use" means the use in or around a home, apartment building, sleeping
771
quarters, and similar facilities or accommodations.
Text Box
- 26 -
772
(77) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
773
than:
774
(a) resale;
775
(b) sublease; or
776
(c) subrent.
777
(78) (a) "Retailer" means any person engaged in a regularly organized business in
778
tangible personal property or any other taxable transaction under Subsection
59-12-103
(1), and
779
who is selling to the user or consumer and not for resale.
780
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
781
engaged in the business of selling to users or consumers within the state.
782
(79) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
783
otherwise, in any manner, of tangible personal property or any other taxable transaction under
784
Subsection
59-12-103
(1), for consideration.
785
(b) "Sale" includes:
786
(i) installment and credit sales;
787
(ii) any closed transaction constituting a sale;
788
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
789
chapter;
790
(iv) any transaction if the possession of property is transferred but the seller retains the
791
title as security for the payment of the price; and
792
(v) any transaction under which right to possession, operation, or use of any article of
793
tangible personal property is granted under a lease or contract and the transfer of possession
794
would be taxable if an outright sale were made.
795
(80) "Sale at retail" is as defined in Subsection (77).
796
(81) "Sale-leaseback transaction" means a transaction by which title to tangible
797
personal property that is subject to a tax under this chapter is transferred:
798
(a) by a purchaser-lessee;
799
(b) to a lessor;
800
(c) for consideration; and
801
(d) if:
802
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
Text Box
- 27 -
803
of the tangible personal property;
804
(ii) the sale of the tangible personal property to the lessor is intended as a form of
805
financing:
806
(A) for the property; and
807
(B) to the purchaser-lessee; and
808
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee
809
is required to:
810
(A) capitalize the property for financial reporting purposes; and
811
(B) account for the lease payments as payments made under a financing arrangement.
812
(82) "Sales price" is as defined in Subsection (68).
813
(83) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
814
amounts charged by a school:
815
(i) sales that are directly related to the school's educational functions or activities
816
including:
817
(A) the sale of:
818
(I) textbooks;
819
(II) textbook fees;
820
(III) laboratory fees;
821
(IV) laboratory supplies; or
822
(V) safety equipment;
823
(B) the sale of a uniform, protective equipment, or sports or recreational equipment
824
that:
825
(I) a student is specifically required to wear as a condition of participation in a
826
school-related event or school-related activity; and
827
(II) is not readily adaptable to general or continued usage to the extent that it takes the
828
place of ordinary clothing;
829
(C) sales of the following if the net or gross revenues generated by the sales are
830
deposited into a school district fund or school fund dedicated to school meals:
831
(I) food and food ingredients; or
832
(II) prepared food; or
833
(D) transportation charges for official school activities; or
Text Box
- 28 -
834
(ii) amounts paid to or amounts charged by a school for admission to a school-related
835
event or school-related activity.
836
(b) "Sales relating to schools" does not include:
837
(i) bookstore sales of items that are not educational materials or supplies;
838
(ii) except as provided in Subsection (83)(a)(i)(B):
839
(A) clothing;
840
(B) clothing accessories or equipment;
841
(C) protective equipment; or
842
(D) sports or recreational equipment; or
843
(iii) amounts paid to or amounts charged by a school for admission to a school-related
844
event or school-related activity if the amounts paid or charged are passed through to a person:
845
(A) other than a:
846
(I) school;
847
(II) nonprofit organization authorized by a school board or a governing body of a
848
private school to organize and direct a competitive secondary school activity; or
849
(III) nonprofit association authorized by a school board or a governing body of a
850
private school to organize and direct a competitive secondary school activity; and
851
(B) that is required to collect sales and use taxes under this chapter.
852
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
853
commission may make rules defining the term "passed through."
854
(84) For purposes of this section and Section
59-12-104
, "school" means:
855
(a) an elementary school or a secondary school that:
856
(i) is a:
857
(A) public school; or
858
(B) private school; and
859
(ii) provides instruction for one or more grades kindergarten through 12; or
860
(b) a public school district.
861
(85) "Seller" means a person that makes a sale, lease, or rental of:
862
(a) tangible personal property; or
863
(b) a service.
864
(86) (a) "Semiconductor fabricating, processing, research, or development materials"
Text Box
- 29 -
865
means tangible personal property:
866
(i) used primarily in the process of:
867
(A) (I) manufacturing a semiconductor;
868
(II) fabricating a semiconductor; or
869
(III) research or development of a:
870
(Aa) semiconductor; or
871
(Bb) semiconductor manufacturing process; or
872
(B) maintaining an environment suitable for a semiconductor; or
873
(ii) consumed primarily in the process of:
874
(A) (I) manufacturing a semiconductor;
875
(II) fabricating a semiconductor; or
876
(III) research or development of a:
877
(Aa) semiconductor; or
878
(Bb) semiconductor manufacturing process; or
879
(B) maintaining an environment suitable for a semiconductor.
880
(b) "Semiconductor fabricating, processing, research, or development materials"
881
includes:
882
(i) parts used in the repairs or renovations of tangible personal property described in
883
Subsection (86)(a); or
884
(ii) a chemical, catalyst, or other material used to:
885
(A) produce or induce in a semiconductor a:
886
(I) chemical change; or
887
(II) physical change;
888
(B) remove impurities from a semiconductor; or
889
(C) improve the marketable condition of a semiconductor.
890
(87) "Senior citizen center" means a facility having the primary purpose of providing
891
services to the aged as defined in Section
62A-3-101
.
892
(88) "Simplified electronic return" means the electronic return:
893
(a) described in Section 318(C) of the agreement; and
894
(b) approved by the governing board of the agreement.
895
(89) "Solar energy" means the sun used as the sole source of energy for producing
Text Box
- 30 -
896
electricity.
897
(90) (a) "Sports or recreational equipment" means an item:
898
(i) designed for human use; and
899
(ii) that is:
900
(A) worn in conjunction with:
901
(I) an athletic activity; or
902
(II) a recreational activity; and
903
(B) not suitable for general use.
904
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
905
commission shall make rules:
906
(i) listing the items that constitute "sports or recreational equipment"; and
907
(ii) that are consistent with the list of items that constitute "sports or recreational
908
equipment" under the agreement.
909
(91) "State" means the state of Utah, its departments, and agencies.
910
(92) "Storage" means any keeping or retention of tangible personal property or any
911
other taxable transaction under Subsection
59-12-103
(1), in this state for any purpose except
912
sale in the regular course of business.
913
(93) (a) "Tangible personal property" means personal property that:
914
(i) may be:
915
(A) seen;
916
(B) weighed;
917
(C) measured;
918
(D) felt; or
919
(E) touched; or
920
(ii) is in any manner perceptible to the senses.
921
(b) "Tangible personal property" includes:
922
(i) electricity;
923
(ii) water;
924
(iii) gas;
925
(iv) steam; or
926
(v) prewritten computer software.
Text Box
- 31 -
927
(94) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
928
and require further processing other than mechanical blending before becoming finished
929
petroleum products.
930
(95) (a) "Telecommunications enabling or facilitating equipment, machinery, or
931
software" means an item listed in Subsection (95)(b) if that item is purchased or leased
932
primarily to enable or facilitate one or more of the following to function:
933
(i) telecommunications switching or routing equipment, machinery, or software; or
934
(ii) telecommunications transmission equipment, machinery, or software.
935
(b) The following apply to Subsection (95)(a):
936
(i) a pole;
937
(ii) software;
938
(iii) a supplementary power supply;
939
(iv) temperature or environmental equipment or machinery;
940
(v) test equipment;
941
(vi) a tower; or
942
(vii) equipment, machinery, or software that functions similarly to an item listed in
943
Subsections (95)(b)(i) through (vi) as determined by the commission by rule made in
944
accordance with Subsection (95)(c).
945
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
946
commission may by rule define what constitutes equipment, machinery, or software that
947
functions similarly to an item listed in Subsections (95)(b)(i) through (vi).
948
(96) "Telecommunications equipment, machinery, or software required for 911
949
service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
950
Sec. 20.18.
951
(97) "Telecommunications maintenance or repair equipment, machinery, or software"
952
means equipment, machinery, or software purchased or leased primarily to maintain or repair
953
one or more of the following, regardless of whether the equipment, machinery, or software is
954
purchased or leased as a spare part or as an upgrade or modification to one or more of the
955
following:
956
(a) telecommunications enabling or facilitating equipment, machinery, or software;
957
(b) telecommunications switching or routing equipment, machinery, or software; or
Text Box
- 32 -
958
(c) telecommunications transmission equipment, machinery, or software.
959
(98) (a) "Telecommunications switching or routing equipment, machinery, or software"
960
means an item listed in Subsection (98)(b) if that item is purchased or leased primarily for
961
switching or routing:
962
(i) voice communications;
963
(ii) data communications; or
964
(iii) telephone service.
965
(b) The following apply to Subsection (98)(a):
966
(i) a bridge;
967
(ii) a computer;
968
(iii) a cross connect;
969
(iv) a modem;
970
(v) a multiplexer;
971
(vi) plug in circuitry;
972
(vii) a router;
973
(viii) software;
974
(ix) a switch; or
975
(x) equipment, machinery, or software that functions similarly to an item listed in
976
Subsections (98)(b)(i) through (ix) as determined by the commission by rule made in
977
accordance with Subsection (98)(c).
978
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
979
commission may by rule define what constitutes equipment, machinery, or software that
980
functions similarly to an item listed in Subsections (98)(b)(i) through (ix).
981
(99) (a) "Telecommunications transmission equipment, machinery, or software" means
982
an item listed in Subsection (99)(b) if that item is purchased or leased primarily for sending,
983
receiving, or transporting:
984
(i) voice communications;
985
(ii) data communications; or
986
(iii) telephone service.
987
(b) The following apply to Subsection (99)(a):
988
(i) an amplifier;
Text Box
- 33 -
989
(ii) a cable;
990
(iii) a closure;
991
(iv) a conduit;
992
(v) a controller;
993
(vi) a duplexer;
994
(vii) a filter;
995
(viii) an input device;
996
(ix) an input/output device;
997
(x) an insulator;
998
(xi) microwave machinery or equipment;
999
(xii) an oscillator;
1000
(xiii) an output device;
1001
(xiv) a pedestal;
1002
(xv) a power converter;
1003
(xvi) a power supply;
1004
(xvii) a radio channel;
1005
(xviii) a radio receiver;
1006
(xix) a radio transmitter;
1007
(xx) a repeater;
1008
(xxi) software;
1009
(xxii) a terminal;
1010
(xxiii) a timing unit;
1011
(xxiv) a transformer;
1012
(xxv) a wire; or
1013
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1014
Subsections (99)(b)(i) through (xxv) as determined by the commission by rule made in
1015
accordance with Subsection (99)(c).
1016
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1017
commission may by rule define what constitutes equipment, machinery, or software that
1018
functions similarly to an item listed in Subsections (99)(b)(i) through (xxv).
1019
(100) (a) "Telephone service" means a two-way transmission:
Text Box
- 34 -
1020
(i) by:
1021
(A) wire;
1022
(B) radio;
1023
(C) lightwave; or
1024
(D) other electromagnetic means; and
1025
(ii) of one or more of the following:
1026
(A) a sign;
1027
(B) a signal;
1028
(C) writing;
1029
(D) an image;
1030
(E) sound;
1031
(F) a message;
1032
(G) data; or
1033
(H) other information of any nature.
1034
(b) "Telephone service" includes:
1035
(i) mobile telecommunications service;
1036
(ii) private communications service; or
1037
(iii) automated digital telephone answering service.
1038
(c) "Telephone service" does not include a service or a transaction that a state or a
1039
political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1040
Tax Freedom Act, Pub. L. No. 105-277.
1041
(101) Notwithstanding where a call is billed or paid, "telephone service address"
1042
means:
1043
(a) if the location described in this Subsection (101)(a) is known, the location of the
1044
telephone service equipment:
1045
(i) to which a call is charged; and
1046
(ii) from which the call originates or terminates;
1047
(b) if the location described in Subsection (101)(a) is not known but the location
1048
described in this Subsection (101)(b) is known, the location of the origination point of the
1049
signal of the telephone service first identified by:
1050
(i) the telecommunications system of the seller; or
Text Box
- 35 -
1051
(ii) if the system used to transport the signal is not that of the seller, information
1052
received by the seller from its service provider; or
1053
(c) if the locations described in Subsection (101)(a) or (b) are not known, the location
1054
of a purchaser's primary place of use.
1055
(102) (a) "Telephone service provider" means a person that:
1056
(i) owns, controls, operates, or manages a telephone service; and
1057
(ii) engages in an activity described in Subsection (102)(a)(i) for the shared use with or
1058
resale to any person of the telephone service.
1059
(b) A person described in Subsection (102)(a) is a telephone service provider whether
1060
or not the Public Service Commission of Utah regulates:
1061
(i) that person; or
1062
(ii) the telephone service that the person owns, controls, operates, or manages.
1063
(103) "Tobacco" means:
1064
(a) a cigarette;
1065
(b) a cigar;
1066
(c) chewing tobacco;
1067
(d) pipe tobacco; or
1068
(e) any other item that contains tobacco.
1069
(104) "Unassisted amusement device" means an amusement device, skill device, or
1070
ride device that is started and stopped by the purchaser or renter of the right to use or operate
1071
the amusement device, skill device, or ride device.
1072
(105) (a) "Use" means the exercise of any right or power over tangible personal
1073
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that
1074
property, item, or service.
1075
(b) "Use" does not include the sale, display, demonstration, or trial of that property in
1076
the regular course of business and held for resale.
1077
(106) (a) Subject to Subsection (106)(b), "vehicle" means the following that are
1078
required to be titled, registered, or titled and registered:
1079
(i) an aircraft as defined in Section
72-10-102
;
1080
(ii) a vehicle as defined in Section
41-1a-102
;
1081
(iii) an off-highway vehicle as defined in Section
41-22-2
; or
Text Box
- 36 -
1082
(iv) a vessel as defined in Section
41-1a-102
.
1083
(b) For purposes of Subsection
59-12-104
(33) only, "vehicle" includes:
1084
(i) a vehicle described in Subsection (106)(a); or
1085
(ii) (A) a locomotive;
1086
(B) a freight car;
1087
(C) railroad work equipment; or
1088
(D) other railroad rolling stock.
1089
(107) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1090
exchanging a vehicle as defined in Subsection (106).
1091
(108) (a) Except as provided in Subsection (108)(b), "waste energy facility" means a
1092
facility that generates electricity:
1093
(i) using as the primary source of energy waste materials that would be placed in a
1094
landfill or refuse pit if it were not used to generate electricity, including:
1095
(A) tires;
1096
(B) waste coal; or
1097
(C) oil shale; and
1098
(ii) in amounts greater than actually required for the operation of the facility.
1099
(b) "Waste energy facility" does not include a facility that incinerates:
1100
(i) municipal solid waste;
1101
(ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1102
(iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1103
(109) "Watercraft" means a vessel as defined in Section
73-18-2
.
1104
(110) "Wind energy" means wind used as the sole source of energy to produce
1105
electricity.
1106
(111) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1107
location by the United States Postal Service.
1108
Section 2.
Section
59-12-104
is amended to read:
1109
59-12-104. Exemptions.
1110
The following sales and uses are exempt from the taxes imposed by this chapter:
1111
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1112
under Chapter 13, Motor and Special Fuel Tax Act;
Text Box
- 37 -
1113
(2) sales to the state, its institutions, and its political subdivisions; however, this
1114
exemption does not apply to sales of:
1115
(a) construction materials except:
1116
(i) construction materials purchased by or on behalf of institutions of the public
1117
education system as defined in Utah Constitution Article X, Section 2, provided the
1118
construction materials are clearly identified and segregated and installed or converted to real
1119
property which is owned by institutions of the public education system; and
1120
(ii) construction materials purchased by the state, its institutions, or its political
1121
subdivisions which are installed or converted to real property by employees of the state, its
1122
institutions, or its political subdivisions; or
1123
(b) tangible personal property in connection with the construction, operation,
1124
maintenance, repair, or replacement of a project, as defined in Section
11-13-103
, or facilities
1125
providing additional project capacity, as defined in Section
11-13-103
;
1126
(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1127
(i) the proceeds of each sale do not exceed $1; and
1128
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
1129
the cost of the item described in Subsection (3)(b) as goods consumed; and
1130
(b) Subsection (3)(a) applies to:
1131
(i) food and food ingredients; or
1132
(ii) prepared food;
1133
(4) sales of the following to a commercial airline carrier for in-flight consumption:
1134
(a) food and food ingredients;
1135
(b) prepared food; or
1136
(c) services related to Subsection (4)(a) or (b);
1137
(5) sales of parts and equipment for installation in aircraft operated by common carriers
1138
in interstate or foreign commerce;
1139
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
1140
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1141
exhibitor, distributor, or commercial television or radio broadcaster;
1142
(7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
1143
property if the cleaning or washing of the tangible personal property is not assisted cleaning or
Text Box
- 38 -
1144
washing of tangible personal property;
1145
(b) if a seller that sells at the same business location assisted cleaning or washing of
1146
tangible personal property and cleaning or washing of tangible personal property that is not
1147
assisted cleaning or washing of tangible personal property, the exemption described in
1148
Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1149
or washing of the tangible personal property; and
1150
(c) for purposes of Subsection (7)(b) and in accordance with Title 63, Chapter 46a,
1151
Utah Administrative Rulemaking Act, the commission may make rules:
1152
(i) governing the circumstances under which sales are at the same business location;
1153
and
1154
(ii) establishing the procedures and requirements for a seller to separately account for
1155
sales of assisted cleaning or washing of tangible personal property;
1156
(8) sales made to or by religious or charitable institutions in the conduct of their regular
1157
religious or charitable functions and activities, if the requirements of Section
59-12-104.1
are
1158
fulfilled;
1159
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1160
this state if the vehicle is both not:
1161
(a) registered in this state; and
1162
(b) used in this state except as necessary to transport the vehicle to the borders of this
1163
state;
1164
(10) (a) amounts paid for an item described in Subsection (10)(b) if:
1165
(i) the item is intended for human use; and
1166
(ii) (A) a prescription was issued for the item; or
1167
(B) the item was purchased by a hospital or other medical facility; and
1168
(b) (i) Subsection (10)(a) applies to:
1169
(A) a drug;
1170
(B) a syringe; or
1171
(C) a stoma supply; and
1172
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1173
commission may by rule define the terms:
1174
(A) "syringe"; or
Text Box
- 39 -
1175
(B) "stoma supply";
1176
(11) sales or use of property, materials, or services used in the construction of or
1177
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
1178
(12) (a) sales of an item described in Subsection (12)(c) served by:
1179
(i) the following if the item described in Subsection (12)(c) is not available to the
1180
general public:
1181
(A) a church; or
1182
(B) a charitable institution;
1183
(ii) an institution of higher education if:
1184
(A) the item described in Subsection (12)(c) is not available to the general public; or
1185
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1186
offered by the institution of higher education; or
1187
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
1188
(i) a medical facility; or
1189
(ii) a nursing facility; and
1190
(c) Subsections (12)(a) and (b) apply to:
1191
(i) food and food ingredients;
1192
(ii) prepared food; or
1193
(iii) alcoholic beverages;
1194
(13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1195
by a person:
1196
(i) regardless of the number of transactions involving the sale of that tangible personal
1197
property by that person; and
1198
(ii) not regularly engaged in the business of selling that type of tangible personal
1199
property;
1200
(b) this Subsection (13) does not apply if:
1201
(i) the sale is one of a series of sales of a character to indicate that the person is
1202
regularly engaged in the business of selling that type of tangible personal property;
1203
(ii) the person holds that person out as regularly engaged in the business of selling that
1204
type of tangible personal property;
1205
(iii) the person sells an item of tangible personal property that the person purchased as
Text Box
- 40 -
1206
a sale that is exempt under Subsection (25); or
1207
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1208
this state in which case the tax is based upon:
1209
(A) the bill of sale or other written evidence of value of the vehicle or vessel being
1210
sold; or
1211
(B) in the absence of a bill of sale or other written evidence of value, the fair market
1212
value of the vehicle or vessel being sold at the time of the sale as determined by the
1213
commission; and
1214
(c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1215
commission shall make rules establishing the circumstances under which:
1216
(i) a person is regularly engaged in the business of selling a type of tangible personal
1217
property;
1218
(ii) a sale of tangible personal property is one of a series of sales of a character to
1219
indicate that a person is regularly engaged in the business of selling that type of tangible
1220
personal property; or
1221
(iii) a person holds that person out as regularly engaged in the business of selling a type
1222
of tangible personal property;
1223
(14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
1224
July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
1225
facility, for the following:
1226
(i) machinery and equipment that:
1227
(A) is used:
1228
(I) for a manufacturing facility other than a manufacturing facility that is a scrap
1229
recycler described in Subsection
59-12-102
(45)(b):
1230
(Aa) in the manufacturing process; and
1231
(Bb) to manufacture an item sold as tangible personal property; or
1232
(II) for a manufacturing facility that is a scrap recycler described in Subsection
1233
59-12-102
(45)(b), to process an item sold as tangible personal property; and
1234
(B) has an economic life of three or more years; and
1235
(ii) normal operating repair or replacement parts that:
1236
(A) have an economic life of three or more years; and
Text Box
- 41 -
Senate Committee Amendments 1-24-2007 rd/rlr
1237
(B) are used:
1238
(I) for a manufacturing facility in the state other than a manufacturing facility that is a
1239
scrap recycler described in Subsection
59-12-102
(45)(b), in the manufacturing process; or
1240
(II) for a manufacturing facility in the state that is a scrap recycler described in
1241
Subsection
59-12-102
(45)(b), to process an item sold as tangible personal property;
1242
(b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
1243
manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
1244
for the following:
1245
(A) machinery and equipment that:
1246
(I) is used:
1247
(Aa) in the manufacturing process; and
1248
(Bb) to manufacture an item sold as tangible personal property; and
1249
(II) has an economic life of three or more years; and
1250
(B) normal operating repair or replacement parts that:
1251
(I) are used in the manufacturing process in a manufacturing facility in the state; and
1252
(II) have an economic life of three or more years; and
1253
(ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
1254
2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
1255
claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
1256
(A) for sales and use taxes paid under this chapter on the purchase or lease payment;
1257
and
1258
(B) in accordance with Section
59-12-110
;
1259
(c) amounts paid or charged on or after July 1, 2010, for a purchase or lease by an
1260
establishment described in NAICS S. [
Sector 21, Mining
]
Subsector 212, Mining (except Oil and
1260a
Gas)
.S , or NAICS Code S.
213113, Support Activities for Coal Mining, 213114, Support
1260b
Activities for Metal Mining, 213115, Support Activities for Nonmetallic Minerals (except Fuels)
1260c
Mining,
.S 511210, Software
1261
Publishers, 5415, Computer Systems Design and Related Services, or 54171, Research and
1262
Development in the Physical, Engineering, and Life Sciences, of the 2002 North American
1263
Industry Classification System of the federal Executive Office of the President, Office of
1264
Management and Budget:
1265
(i) machinery and equipment that:
1266
(A) is used in:
1267
(I) the production process, other than the production of real property; or
Text Box
- 42 -
1268
(II) research and development; and
1269
(B) has an economic life of three or more years; and
1270
(ii) normal operating repair or replacement parts that:
1271
(A) have an economic life of three or more years; and
1272
(B) are used in:
1273
(I) the production process, other than the production of real property, in an
1274
establishment described in this Subsection (14)(c) in the state; or
1275
(II) research and development in an establishment described in this Subsection (14)(c)
1276
in the state;
1277
[(c)] (d) for purposes of this Subsection (14) and in accordance with Title 63, Chapter
1278
46a, Utah Administrative Rulemaking Act, the commission:
1279
(i) shall by rule define the term "establishment"; and
1280
(ii) may by rule define what constitutes:
1281
(A) processing an item sold as tangible personal property;
1282
(B) the production process, other than the production of real property; or
1283
(C) research and development; and
1284
[(d)] (e) on or before October 1, [1991] 2011, and every five years after October 1,
1285
[1991] 2011, the commission shall:
1286
(i) review the exemptions described in this Subsection (14) and make
1287
recommendations to the Revenue and Taxation Interim Committee concerning whether the
1288
exemptions should be continued, modified, or repealed; and
1289
(ii) include in its report:
1290
(A) the cost of the exemptions;
1291
(B) the purpose and effectiveness of the exemptions; and
1292
(C) the benefits of the exemptions to the state;
1293
(15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
1294
(i) tooling;
1295
(ii) special tooling;
1296
(iii) support equipment;
1297
(iv) special test equipment; or
1298
(v) parts used in the repairs or renovations of tooling or equipment described in
Text Box
- 43 -
1299
Subsections (15)(a)(i) through (iv); and
1300
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1301
(i) the tooling, equipment, or parts are used or consumed exclusively in the
1302
performance of any aerospace or electronics industry contract with the United States
1303
government or any subcontract under that contract; and
1304
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1305
title to the tooling, equipment, or parts is vested in the United States government as evidenced
1306
by:
1307
(A) a government identification tag placed on the tooling, equipment, or parts; or
1308
(B) listing on a government-approved property record if placing a government
1309
identification tag on the tooling, equipment, or parts is impractical;
1310
(16) sales of newspapers or newspaper subscriptions;
1311
(17) (a) except as provided in Subsection (17)(b), tangible personal property traded in
1312
as full or part payment of the purchase price, except that for purposes of calculating sales or use
1313
tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and
1314
the tax is based upon:
1315
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
1316
vehicle being traded in; or
1317
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
1318
fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
1319
commission; and
1320
(b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
1321
following items of tangible personal property traded in as full or part payment of the purchase
1322
price:
1323
(i) money;
1324
(ii) electricity;
1325
(iii) water;
1326
(iv) gas; or
1327
(v) steam;
1328
(18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
1329
used or consumed primarily and directly in farming operations, regardless of whether the
Text Box
- 44 -
1330
tangible personal property:
1331
(A) becomes part of real estate; or
1332
(B) is installed by a:
1333
(I) farmer;
1334
(II) contractor; or
1335
(III) subcontractor; or
1336
(ii) sales of parts used in the repairs or renovations of tangible personal property if the
1337
tangible personal property is exempt under Subsection (18)(a)(i); and
1338
(b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
1339
tangible personal property are subject to the taxes imposed by this chapter:
1340
(i) (A) subject to Subsection (18)(b)(i)(B), the following tangible personal property if
1341
the tangible personal property is used in a manner that is incidental to farming:
1342
(I) machinery;
1343
(II) equipment;
1344
(III) materials; or
1345
(IV) supplies; and
1346
(B) tangible personal property that is considered to be used in a manner that is
1347
incidental to farming includes:
1348
(I) hand tools; or
1349
(II) maintenance and janitorial equipment and supplies;
1350
(ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property if the tangible
1351
personal property is used in an activity other than farming; and
1352
(B) tangible personal property that is considered to be used in an activity other than
1353
farming includes:
1354
(I) office equipment and supplies; or
1355
(II) equipment and supplies used in:
1356
(Aa) the sale or distribution of farm products;
1357
(Bb) research; or
1358
(Cc) transportation; or
1359
(iii) a vehicle required to be registered by the laws of this state during the period ending
1360
two years after the date of the vehicle's purchase;
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1361
(19) sales of hay;
1362
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1363
garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1364
garden, farm, or other agricultural produce is sold by:
1365
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1366
agricultural produce;
1367
(b) an employee of the producer described in Subsection (20)(a); or
1368
(c) a member of the immediate family of the producer described in Subsection (20)(a);
1369
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1370
under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1371
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1372
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1373
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1374
manufacturer, processor, wholesaler, or retailer;
1375
(23) property stored in the state for resale;
1376
(24) property brought into the state by a nonresident for his or her own personal use or
1377
enjoyment while within the state, except property purchased for use in Utah by a nonresident
1378
living and working in Utah at the time of purchase;
1379
(25) property purchased for resale in this state, in the regular course of business, either
1380
in its original form or as an ingredient or component part of a manufactured or compounded
1381
product;
1382
(26) property upon which a sales or use tax was paid to some other state, or one of its
1383
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1384
imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1385
the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1386
Act;
1387
(27) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a
1388
person for use in compounding a service taxable under the subsections;
1389
(28) purchases made in accordance with the special supplemental nutrition program for
1390
women, infants, and children established in 42 U.S.C. Sec. 1786;
1391
(29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
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1392
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
1393
of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
1394
Manual of the federal Executive Office of the President, Office of Management and Budget;
1395
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1396
Boating Act, a boat trailer, or an outboard motor if the boat, trailer, or outboard motor is both
1397
not:
1398
(a) registered in this state; and
1399
(b) used in this state except as necessary to transport the boat, boat trailer, or outboard
1400
motor to the borders of this state;
1401
(31) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
1402
where a sales or use tax is not imposed, even if the title is passed in Utah;
1403
(32) amounts paid for the purchase of telephone service for purposes of providing
1404
telephone service;
1405
(33) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
1406
(34) (a) 45% of the sales price of any new manufactured home; and
1407
(b) 100% of the sales price of any used manufactured home;
1408
(35) sales relating to schools and fundraising sales;
1409
(36) sales or rentals of durable medical equipment if:
1410
(a) a person presents a prescription for the durable medical equipment; and
1411
(b) the durable medical equipment is used for home use only;
1412
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1413
Section
72-11-102
; and
1414
(b) the commission shall by rule determine the method for calculating sales exempt
1415
under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
1416
(38) sales to a ski resort of:
1417
(a) snowmaking equipment;
1418
(b) ski slope grooming equipment;
1419
(c) passenger ropeways as defined in Section
72-11-102
; or
1420
(d) parts used in the repairs or renovations of equipment or passenger ropeways
1421
described in Subsections (38)(a) through (c);
1422
(39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
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1423
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1424
amusement, entertainment, or recreation an unassisted amusement device as defined in Section
1425
59-12-102
;
1426
(b) if a seller that sells or rents at the same business location the right to use or operate
1427
for amusement, entertainment, or recreation one or more unassisted amusement devices and
1428
one or more assisted amusement devices, the exemption described in Subsection (40)(a)
1429
applies if the seller separately accounts for the sales or rentals of the right to use or operate for
1430
amusement, entertainment, or recreation for the assisted amusement devices; and
1431
(c) for purposes of Subsection (40)(b) and in accordance with Title 63, Chapter 46a,
1432
Utah Administrative Rulemaking Act, the commission may make rules:
1433
(i) governing the circumstances under which sales are at the same business location;
1434
and
1435
(ii) establishing the procedures and requirements for a seller to separately account for
1436
the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
1437
assisted amusement devices;
1438
(41) sales by the state or a political subdivision of the state, except state institutions of
1439
higher education as defined in Section
53B-3-102
, of:
1440
(a) photocopies; or
1441
(b) other copies of records held or maintained by the state or a political subdivision of
1442
the state;
1443
(42) amounts paid for admission to an athletic event at an institution of higher
1444
education that is subject to the provisions of Title IX of the Education Amendments of 1972,
1445
20 U.S.C. Sec. 1681 et seq.;
1446
(43) sales of telephone service charged to a prepaid telephone calling card;
1447
(44) (a) sales of:
1448
(i) hearing aids;
1449
(ii) hearing aid accessories; or
1450
(iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations
1451
of hearing aids or hearing aid accessories; and
1452
(b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii),
1453
"parts" does not include batteries;
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1454
(45) (a) sales made to or by:
1455
(i) an area agency on aging; or
1456
(ii) a senior citizen center owned by a county, city, or town; or
1457
(b) sales made by a senior citizen center that contracts with an area agency on aging;
1458
(46) sales or leases of semiconductor fabricating, processing, research, or development
1459
materials regardless of whether the semiconductor fabricating, processing, research, or
1460
development materials:
1461
(a) actually come into contact with a semiconductor; or
1462
(b) ultimately become incorporated into real property;
1463
(47) an amount paid by or charged to a purchaser for accommodations and services
1464
described in Subsection
59-12-103
(1)(i) to the extent the amount is exempt under Section
1465
59-12-104.2
;
1466
(48) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
1467
sports event registration certificate in accordance with Section
41-3-306
for the event period
1468
specified on the temporary sports event registration certificate;
1469
(49) sales or uses of electricity, if the sales or uses are:
1470
(a) made under a tariff adopted by the Public Service Commission of Utah only for
1471
purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
1472
source, as designated in the tariff by the Public Service Commission of Utah; and
1473
(b) for an amount of electricity that is:
1474
(i) unrelated to the amount of electricity used by the person purchasing the electricity
1475
under the tariff described in Subsection (49)(a); and
1476
(ii) equivalent to the number of kilowatthours specified in the tariff described in
1477
Subsection (49)(a) that may be purchased under the tariff described in Subsection (49)(a);
1478
(50) sales or rentals of mobility enhancing equipment if a person presents a
1479
prescription for the mobility enhancing equipment;
1480
(51) sales of water in a:
1481
(a) pipe;
1482
(b) conduit;
1483
(c) ditch; or
1484
(d) reservoir;
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1485
(52) sales of currency or coinage that constitute legal tender of the United States or of a
1486
foreign nation;
1487
(53) (a) sales of an item described in Subsection (53)(b) if the item:
1488
(i) does not constitute legal tender of any nation; and
1489
(ii) has a gold, silver, or platinum content of 80% or more; and
1490
(b) Subsection (53)(a) applies to a gold, silver, or platinum:
1491
(i) ingot;
1492
(ii) bar;
1493
(iii) medallion; or
1494
(iv) decorative coin;
1495
(54) amounts paid on a sale-leaseback transaction;
1496
(55) sales of a prosthetic device:
1497
(a) for use on or in a human;
1498
(b) for which a prescription is issued; and
1499
(c) to a person that presents a prescription for the prosthetic device;
1500
(56) (a) except as provided in Subsection (56)(b), purchases, leases, or rentals of
1501
machinery or equipment by an establishment described in Subsection (56)(c) if the machinery
1502
or equipment is primarily used in the production or postproduction of the following media for
1503
commercial distribution:
1504
(i) a motion picture;
1505
(ii) a television program;
1506
(iii) a movie made for television;
1507
(iv) a music video;
1508
(v) a commercial;
1509
(vi) a documentary; or
1510
(vii) a medium similar to Subsections (56)(a)(i) through (vi) as determined by the
1511
commission by administrative rule made in accordance with Subsection (56)(d); or
1512
(b) notwithstanding Subsection (56)(a), purchases, leases, or rentals of machinery or
1513
equipment by an establishment described in Subsection (56)(c) that is used for the production
1514
or postproduction of the following are subject to the taxes imposed by this chapter:
1515
(i) a live musical performance;
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1516
(ii) a live news program; or
1517
(iii) a live sporting event;
1518
(c) the following establishments listed in the 1997 North American Industry
1519
Classification System of the federal Executive Office of the President, Office of Management
1520
and Budget, apply to Subsections (56)(a) and (b):
1521
(i) NAICS Code 512110; or
1522
(ii) NAICS Code 51219; and
1523
(d) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1524
commission may by rule:
1525
(i) prescribe what constitutes a medium similar to Subsections (56)(a)(i) through (vi);
1526
or
1527
(ii) define:
1528
(A) "commercial distribution";
1529
(B) "live musical performance";
1530
(C) "live news program"; or
1531
(D) "live sporting event";
1532
(57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
1533
or before June 30, 2009, of machinery or equipment that:
1534
(i) is leased or purchased for or by a facility that:
1535
(A) is a renewable energy production facility;
1536
(B) is located in the state; and
1537
(C) (I) becomes operational on or after July 1, 2004; or
1538
(II) has its generation capacity increased by one or more megawatts on or after July 1,
1539
2004 as a result of the use of the machinery or equipment;
1540
(ii) has an economic life of five or more years; and
1541
(iii) is used to make the facility or the increase in capacity of the facility described in
1542
Subsection (57)(a)(i) operational up to the point of interconnection with an existing
1543
transmission grid including:
1544
(A) a wind turbine;
1545
(B) generating equipment;
1546
(C) a control and monitoring system;
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1547
(D) a power line;
1548
(E) substation equipment;
1549
(F) lighting;
1550
(G) fencing;
1551
(H) pipes; or
1552
(I) other equipment used for locating a power line or pole; and
1553
(b) this Subsection (57) does not apply to:
1554
(i) machinery or equipment used in construction of:
1555
(A) a new renewable energy production facility; or
1556
(B) the increase in the capacity of a renewable energy production facility;
1557
(ii) contracted services required for construction and routine maintenance activities;
1558
and
1559
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
1560
of the facility described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or
1561
acquired after:
1562
(A) the renewable energy production facility described in Subsection (57)(a)(i) is
1563
operational as described in Subsection (57)(a)(iii); or
1564
(B) the increased capacity described in Subsection (57)(a)(i) is operational as described
1565
in Subsection (57)(a)(iii);
1566
(58) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
1567
or before June 30, 2009, of machinery or equipment that:
1568
(i) is leased or purchased for or by a facility that:
1569
(A) is a waste energy production facility;
1570
(B) is located in the state; and
1571
(C) (I) becomes operational on or after July 1, 2004; or
1572
(II) has its generation capacity increased by one or more megawatts on or after July 1,
1573
2004 as a result of the use of the machinery or equipment;
1574
(ii) has an economic life of five or more years; and
1575
(iii) is used to make the facility or the increase in capacity of the facility described in
1576
Subsection (58)(a)(i) operational up to the point of interconnection with an existing
1577
transmission grid including:
Text Box
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1578
(A) generating equipment;
1579
(B) a control and monitoring system;
1580
(C) a power line;
1581
(D) substation equipment;
1582
(E) lighting;
1583
(F) fencing;
1584
(G) pipes; or
1585
(H) other equipment used for locating a power line or pole; and
1586
(b) this Subsection (58) does not apply to:
1587
(i) machinery or equipment used in construction of:
1588
(A) a new waste energy facility; or
1589
(B) the increase in the capacity of a waste energy facility;
1590
(ii) contracted services required for construction and routine maintenance activities;
1591
and
1592
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
1593
described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
1594
(A) the waste energy facility described in Subsection (58)(a)(i) is operational as
1595
described in Subsection (58)(a)(iii); or
1596
(B) the increased capacity described in Subsection (58)(a)(i) is operational as described
1597
in Subsection (58)(a)(iii);
1598
(59) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
1599
or before June 30, 2009, of machinery or equipment that:
1600
(i) is leased or purchased for or by a facility that:
1601
(A) is located in the state;
1602
(B) produces fuel from biomass energy including:
1603
(I) methanol; or
1604
(II) ethanol; and
1605
(C) (I) becomes operational on or after July 1, 2004; or
1606
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
1607
a result of the installation of the machinery or equipment;
1608
(ii) has an economic life of five or more years; and
Text Box
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1609
(iii) is installed on the facility described in Subsection (59)(a)(i);
1610
(b) this Subsection (59) does not apply to:
1611
(i) machinery or equipment used in construction of:
1612
(A) a new facility described in Subsection (59)(a)(i); or
1613