H.B. 206

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Mar 4, 2008 at 6:36 PM by rday. --> PLEASE NOTE:
THIS DOCUMENT INCLUDES BOTH THE BILL AND ALSO A TRANSMITTAL LETTER THAT CONTAINS PASSED AMENDMENTS BUT NOT INCORPORATED INTO THE BILL.

March 4, 2008


Mr. Speaker:

The Senate passed H.B. 206, TAX AMENDMENTS, by Representative W. Harper, with the following amendments:
1. Page 26, Lines 773 through 778 :

773 [(4)] (6) "Agreement sales and use tax" means a tax imposed under:
774 (a) Subsection 59-12-103 (2)(a)(i) (A) ;
775 (b) Subsection 59-12-103 (2)(b)(i);
776 (c) Subsection 59-12-103 (2)(c)(i);
777 [(d) Subsection 59-12-103 (2)(d)(i);]
778 [(e)] (d) Subsection 59-12-103 (2)[(e)(ii)] (d)(i)(A) (I) ;
2. Page 75, Lines 2316 through 2318 :

2316 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
2317 is imposed on a transaction described in Subsection (1) equal to the sum of:
2318 (i) a state tax imposed on the transaction at a tax rate equal to the sum of :
(A) 4.65%; and
(B) the tax rate the state imposes in accordance with Part 18, Additional State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional State Sales and Use Tax Act; and
3. Page 76, Line 2348 through Page 77, Line 2358 :

2348 [(e)] (d) (i) [A state tax and a local tax is imposed on an entire] For a bundled
2349 transaction [as provided in this Subsection (2)(e) if the bundled transaction] that is attributable
2350 to food and food ingredients and tangible personal property other than food and food
2351 ingredients[. (ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is
2352 collected by a seller other than a seller that collects a tax in accordance with Subsection
2353 59-12-107 (1)(b), beginning on January 1, 2007], a state tax and a local tax is imposed on the
2354 entire bundled transaction equal to the sum of:
2355 (A) a state tax imposed on the entire bundled transaction at equal to the sum of:

(I) the tax rate described in
2356 Subsection (2)(a)(i) (A) ; and
(II) the tax rate the state imposes in accordance with Part 18, Additional State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional State Sales and Use Tax Act; and
2357 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2358 described in Subsection (2)(a)(ii).
4. Page 78, Lines 2391 through 2397 :

2391 [(f)] (e) Subject to Subsections (2)[(g)] (f) and [(h)] (g), a tax rate repeal or tax rate
2392 change for a tax rate imposed under the following shall take effect on the first day of a calendar
2393 quarter:
2394 (i) Subsection (2)(a)(i) (A) ;
2395 (ii) Subsection (2)(b)(i);
2396 (iii) Subsection (2)(c)(i); or
2397 (iv) Subsection (2)(d)(i)(A) (I) [;].
5. Page 78, Lines 2400 through 2407 :

2400 [(g)] (f) (i) [For a transaction described in Subsection (2)(g)(iii), a] A tax rate increase
2401 shall take effect on the first day of the first billing period that begins after the effective date of
2402 the tax rate increase if the billing period for the transaction begins before the effective date of a
2403 tax rate increase imposed under:
2404 (A) Subsection (2)(a)(i) (A) ;
2405 (B) Subsection (2)(b)(i);
2406 (C) Subsection (2)(c)(i); or
2407 (D) Subsection (2)(d)(i)(A) (I) [;].
6. Page 78, Line 2410 through Page 79, Line 2418 :

2410 (ii) [For a transaction described in Subsection (2)(g)(iii), the] The repeal of a tax or a
2411 tax rate decrease shall take effect on the first day of the last billing period that began before the
2412 effective date of the repeal of the tax or the tax rate decrease if the billing period for the
2413 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
2414 imposed under:
2415 (A) Subsection (2)(a)(i) (A) ;
2416 (B) Subsection (2)(b)(i);

2417 (C) Subsection (2)(c)(i); or
2418 (D) Subsection (2)(d)(i)(A) (I) [;].

7. Page 79, Lines 2432 through 2441 :

2432 [(h)] (g) (i) For a tax rate described in Subsection (2)[(h)] (g)(ii), if a tax due on a
2433 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
2434 tax rate repeal or change in a tax rate takes effect:
2435 (A) on the first day of a calendar quarter; and
2436 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2437 (ii) Subsection (2)[(h)] (g)(i) applies to the tax rates described in the following:
2438 (A) Subsection (2)(a)(i) (A) ;
2439 (B) Subsection (2)(b)(i);
2440 (C) Subsection (2)(c)(i); or
2441 (D) Subsection (2)(d)(i)(A) (I) [;].
8. Page 80, Lines 2446 through 2451 :

2446 (3) (a) Except as provided in Subsections (4) through [(10)] (9), the following state
2447 taxes shall be deposited into the General Fund:
2448 (i) the tax imposed by Subsection (2)(a)(i) (A) ;
2449 (ii) the tax imposed by Subsection (2)(b)(i);
2450 (iii) the tax imposed by Subsection (2)(c)(i); or
2451 (iv) the tax imposed by Subsection (2)(d)(i)(A) (I) [;].
9. Page 85, Lines 2615 through 2625 :

2615 [(9)] (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
2616 Subsection (7)(a), and until Subsection [(9)] (8)(b) applies, for a fiscal year beginning on or
2617 after July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
2618 Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
2619 (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
2620 portion of the approximately 17% of sales and use tax revenues generated annually by the sales
2621 and use tax on vehicles and vehicle-related products:
2622 (i) the tax imposed by Subsection (2)(a)(i) (A) ;
2623 (ii) the tax imposed by Subsection (2)(b)(i);

2624 (iii) the tax imposed by Subsection (2)(c)(i); and
2625 (iv) the tax imposed by Subsection [(2)(e)(ii)(A)] (2)(d)(i)(A) (I) .
10. Page 85, Line 2626 through Page 86, Line 2638 :

2626 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
2627 Subsection (7)(b), when the highway general obligation bonds have been paid off and the
2628 highway projects completed that are intended to be paid from revenues deposited in the
2629 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
2630 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
2631 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
2632 listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
2633 which represents a portion of the approximately 17% of sales and use tax revenues generated
2634 annually by the sales and use tax on vehicles and vehicle-related products:
2635 (i) the tax imposed by Subsection (2)(a)(i) (A) ;
2636 (ii) the tax imposed by Subsection (2)(b)(i);
2637 (iii) the tax imposed by Subsection (2)(c)(i); and
2638 (iv) the tax imposed by Subsection [(2)(e)(ii)(A)] (2)(d)(i)(A) (I) .
11. Page 278, Lines 8601 through 8602 :

8601 (b) (i) [For a transaction described in Subsection (9)(b)(iii), if] If the billing period for
8602 the a transaction begins before the effective date of the enactment of the tax or tax rate increase
12. Page 278, Lines 8606 through 8607 :

8606 (ii) [For a transaction described in Subsection (9)(b)(iii), if] If the billing period for the a
8607 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
13. Page 279, Lines 8644 through 8645 :

8644 (e) (i) [For a transaction described in Subsection (9)(e)(iii), if] If the billing period for
8645 the a transaction begins before the effective date of the enactment of the tax or a tax rate increase
14. Page 280, Lines 8649 through 8650 :

8649 (ii) [For a transaction described in Subsection (9)(e)(iii), if] If the billing period for the a
8650 transaction begins before the effective date of the repeal of the tax or the tax rate decrease

and it is transmitted to the House for consideration.

Respectfully,



Annette B. Moore
Secretary of the Senate

16 hb0206.wpd 6:24 pm RLR/rday

This document includes House Committee Amendments incorporated into the bill on Mon, Feb 25, 2008 at 2:31 PM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Wed, Feb 27, 2008 at 11:49 AM by jeyring. --> 1 TAX AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 Senate Sponsor: Curtis S. Bramble
6
7 LONG TITLE
8 General Description:
9 This bill amends the Sales and Use Tax Act and related provisions.
10 Highlighted Provisions:
11 This bill:
12 . addresses definitions;
13 . addresses the administration, collection, and enforcement of taxes, fees, or charges
14 administered by the State Tax Commission;
15 . addresses the State Tax Commission authority to provide information contained in a
16 return, report, related schedule, or other document to the governing board of the
17 Streamlined Sales and Use Tax Agreement or certain other taxing officials;
18 . authorizes the state to become a party to the Streamlined Sales and Use Tax
19 Agreement and addresses the authority of the State Tax Commission relating to the
20 state becoming a party to the Streamlined Sales and Use Tax Agreement;
21 . addresses the appointment of delegates to the governing board of the Streamlined
22 Sales and Use Tax Agreement;
23 . addresses transactions that are subject to state and local sales and use taxation;
24 . addresses tax rates that apply to specified transactions;
25 . addresses the enactment, repeal, or change in the rate of state and local sales and use
26 taxes;
27 . repeals the distribution of certain local taxes collected by a remote seller to counties,

28 cities, and towns;
29 . repeals the requirement to deposit certain state sales and use tax revenues into the
30 Remote Sales Restricted Account;
31 . addresses state and local sales and use tax exemptions;
32 . addresses the Utah Tax Review Commission's requirement to study the state's sales
33 and use tax system;
34 . addresses provisions relating to an exemption certificate;
35 . addresses the collection and remittance of sales and use taxes by a seller that is
36 registered under the Streamlined Sales and Use Tax Agreement;
37 . addresses provisions relating to a direct payment permit;
38 . addresses the collection, remittance, and payment of taxes on direct mail;
39 . addresses certified service provider liability relating to state and local sales and use
40 taxes;
41 . addresses seller or certified service provider reliance on State Tax Commission
42 information or certain systems with respect to state and local sales and use taxes;
43 . addresses certified service provider or model 2 seller reliance on State Tax
44 Commission certified software with respect to state and local sales and use taxes;
45 . addresses a purchaser's relief from liability for a tax, penalty, or interest;
46 . addresses return filing requirements;
47 . addresses seller discounts;
48 . addresses overpayments of sales and use taxes;
49 . addresses amnesty for a seller;
50 . addresses a monetary allowance under the Streamlined Sales and Use Tax
51 Agreement;
52 . addresses the sourcing of sales and use transactions;
53 . addresses provisions relating to funding for 911 emergency telecommunications
54 service;
55 . addresses provisions relating to the emergency services telecommunications charge
56 to fund the Poison Control Center;
57 . addresses provisions relating to the emergency services telecommunications charge
58 to fund the statewide unified E-911 service;

59 . grants rulemaking authority to the State Tax Commission; and
60 . makes technical changes.
61 Monies Appropriated in this Bill:
62 None
63 Other Special Clauses:
64 This bill takes effect on January 1, 2009.
65 Utah Code Sections Affected:
66 AMENDS:
67 10-1-307, as last amended by Laws of Utah 2006, Chapters 253 and 352
68 10-1-402, as enacted by Laws of Utah 2003, Chapter 253
69 10-1-405, as last amended by Laws of Utah 2007, Chapters 9 and 250
70 10-1-407, as last amended by Laws of Utah 2004, Chapter 255
71 11-41-102, as last amended by Laws of Utah 2007, Chapter 9
72 53-10-605, as last amended by Laws of Utah 2007, Chapters 241 and 329
73 59-1-403, as last amended by Laws of Utah 2007, Chapter 250
74 59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
75 59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
76 59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
77 295, and 329
78 59-12-104.5, as last amended by Laws of Utah 2006, Chapters 182 and 346
79 59-12-105, as last amended by Laws of Utah 2006, Chapters 181, 182, and 253
80 59-12-106, as last amended by Laws of Utah 2006, Chapter 322
81 59-12-107, as last amended by Laws of Utah 2006, Chapter 253
82 59-12-107.1, as last amended by Laws of Utah 2006, Chapter 253
83 59-12-108, as last amended by Laws of Utah 2007, Chapter 9
84 59-12-110, as last amended by Laws of Utah 2006, Chapter 253
85 59-12-110.1, as last amended by Laws of Utah 2006, Chapter 253
86 59-12-205, as last amended by Laws of Utah 2007, Chapter 228
87 59-12-208.1, as last amended by Laws of Utah 2004, Chapter 255
88 59-12-210, as last amended by Laws of Utah 2006, Chapter 253
89 59-12-302, as last amended by Laws of Utah 2006, Chapter 253

90 59-12-354, as last amended by Laws of Utah 2006, Chapter 253
91 59-12-401, as last amended by Laws of Utah 2007, Chapter 288
92 59-12-402, as last amended by Laws of Utah 2007, Chapter 288
93 59-12-403, as last amended by Laws of Utah 2007, Chapter 288
94 59-12-501, as last amended by Laws of Utah 2007, Chapters 202, 288, and 329
95 59-12-502, as last amended by Laws of Utah 2007, Chapters 201, 202, 288, and 329
96 59-12-504, as last amended by Laws of Utah 2007, Chapter 288
97 59-12-603, as last amended by Laws of Utah 2007, Chapters 3, 9, and 219
98 59-12-703, as last amended by Laws of Utah 2007, Chapter 288
99 59-12-802, as last amended by Laws of Utah 2007, Chapter 288
100 59-12-804, as last amended by Laws of Utah 2007, Chapter 288
101 59-12-806, as last amended by Laws of Utah 2004, Chapter 255
102 59-12-1001, as last amended by Laws of Utah 2007, Chapters 288 and 329
103 59-12-1002, as last amended by Laws of Utah 2006, Chapter 253
104 59-12-1102, as last amended by Laws of Utah 2006, Chapter 253
105 59-12-1201, as last amended by Laws of Utah 2006, Chapters 135 and 253
106 59-12-1302, as last amended by Laws of Utah 2007, Chapter 288
107 59-12-1402, as last amended by Laws of Utah 2007, Chapter 288
108 59-12-1503, as last amended by Laws of Utah 2007, Chapters 10, 202, 288, and 329
109 59-12-1703, as last amended by Laws of Utah 2007, Chapters 201, 288, and 329
110 59-12-1802, as enacted by Laws of Utah 2007, Chapter 288
111 59-12-1803, as enacted by Laws of Utah 2007, Chapter 288
112 63-55-269, as enacted by Laws of Utah 2004, Chapter 313
113 69-2-5, as last amended by Laws of Utah 2007, Chapter 241
114 69-2-5.5, as last amended by Laws of Utah 2003, Chapter 253
115 69-2-5.6, as last amended by Laws of Utah 2007, Chapter 241
116 72-2-125, as enacted by Laws of Utah 2007, Chapter 206
117 ENACTS:
118 59-12-102.3, Utah Code Annotated 1953
119 59-12-123, Utah Code Annotated 1953
120 59-12-124, Utah Code Annotated 1953

121 59-12-125, Utah Code Annotated 1953
122 59-12-126, Utah Code Annotated 1953
123 59-12-127, Utah Code Annotated 1953
124 59-12-128, Utah Code Annotated 1953
125 59-12-129, Utah Code Annotated 1953
126 59-12-211, Utah Code Annotated 1953
127 59-12-212, Utah Code Annotated 1953
128 59-12-213, Utah Code Annotated 1953
129 59-12-214, Utah Code Annotated 1953
130 59-12-216, Utah Code Annotated 1953
131 59-12-217, Utah Code Annotated 1953
132 59-12-218, Utah Code Annotated 1953
133 59-12-304, Utah Code Annotated 1953
134 59-12-305, Utah Code Annotated 1953
135 59-12-306, Utah Code Annotated 1953
136 59-12-357, Utah Code Annotated 1953
137 59-12-358, Utah Code Annotated 1953
138 59-12-359, Utah Code Annotated 1953
139 59-12-406, Utah Code Annotated 1953
140 59-12-407, Utah Code Annotated 1953
141 59-12-408, Utah Code Annotated 1953
142 59-12-506, Utah Code Annotated 1953
143 59-12-507, Utah Code Annotated 1953
144 59-12-508, Utah Code Annotated 1953
145 59-12-605, Utah Code Annotated 1953
146 59-12-606, Utah Code Annotated 1953
147 59-12-607, Utah Code Annotated 1953
148 59-12-707, Utah Code Annotated 1953
149 59-12-708, Utah Code Annotated 1953
150 59-12-709, Utah Code Annotated 1953
151 59-12-808, Utah Code Annotated 1953

152 59-12-809, Utah Code Annotated 1953
153 59-12-810, Utah Code Annotated 1953
154 59-12-1004, Utah Code Annotated 1953
155 59-12-1005, Utah Code Annotated 1953
156 59-12-1006, Utah Code Annotated 1953
157 59-12-1104, Utah Code Annotated 1953
158 59-12-1105, Utah Code Annotated 1953
159 59-12-1106, Utah Code Annotated 1953
160 59-12-1202, Utah Code Annotated 1953
161 59-12-1203, Utah Code Annotated 1953
162 59-12-1204, Utah Code Annotated 1953
163 59-12-1304, Utah Code Annotated 1953
164 59-12-1305, Utah Code Annotated 1953
165 59-12-1306, Utah Code Annotated 1953
166 59-12-1405, Utah Code Annotated 1953
167 59-12-1406, Utah Code Annotated 1953
168 59-12-1407, Utah Code Annotated 1953
169 59-12-1505, Utah Code Annotated 1953
170 59-12-1506, Utah Code Annotated 1953
171 59-12-1507, Utah Code Annotated 1953
172 59-12-1706, Utah Code Annotated 1953
173 59-12-1707, Utah Code Annotated 1953
174 59-12-1708, Utah Code Annotated 1953
175 59-12-1804, Utah Code Annotated 1953
176 59-12-1805, Utah Code Annotated 1953
177 59-12-1806, Utah Code Annotated 1953
178 RENUMBERS AND AMENDS:
179 59-12-215, (Renumbered from 59-12-207.4, as last amended by Laws of Utah 2006,
180 Chapter 253)
181 REPEALS:
182 59-12-102.2, as enacted by Laws of Utah 2006, Chapter 253

183 59-12-207, as last amended by Laws of Utah 2006, Chapter 253
184
185 Be it enacted by the Legislature of the state of Utah:
186 Section 1. Section 10-1-307 is amended to read:
187 10-1-307. Collection of taxes by commission -- Distribution of revenues -- Charge
188 for services -- Collection of taxes by municipality.
189 (1) Except [for the direct payment provisions] as provided in Subsection (3), the
190 commission shall collect, enforce, and administer the municipal energy sales and use tax from
191 energy suppliers according to the procedures established in Title 59, Chapter 12, Part 1, Tax
192 Collection, except for [Section] Sections 59-12-107.1 and 59-12-123 .
193 (2) (a) Except as provided in Subsections 10-1-203 (3)(d), 10-1-305 (5), and
194 10-1-310 (2) and subject to Subsection (6), the commission shall pay a municipality the
195 difference between:
196 (i) the entire amount collected by the commission from the municipal energy sales and
197 use tax authorized by this part based on:
198 (A) the point of sale of the taxable energy if a taxable sale occurs in a municipality that
199 imposes a municipal energy sales and use tax as provided in this part; or
200 (B) the point of use of the taxable energy if the use occurs in a municipality that
201 imposes a municipal energy sales and use tax as provided in this part; and
202 (ii) the administration fee charged in accordance with Subsection (2)(c).
203 (b) In accordance with Subsection (2)(a), the commission shall transfer to the
204 municipality monthly by electronic transfer the revenues generated by the municipal energy
205 sales and use tax levied by the municipality and collected by the commission.
206 (c) (i) The commission shall charge a municipality imposing a municipal energy sales
207 and use tax a fee for administering the tax at the percentage provided in Section 59-12-206 ,
208 except that the commission may not charge a fee for taxes collected by a municipality under
209 Subsection (3).
210 (ii) The fee charged under Subsection (2)(c)(i) shall be:
211 (A) deposited in the Sales and Use Tax Administrative Fees Account; and
212 (B) used for sales tax administration as provided in Subsection 59-12-206 (2).
213 (3) An energy supplier shall pay the municipal energy sales and use tax revenues it

214 collects from its customers under this part directly to each municipality in which the energy
215 supplier has sales of taxable energy if:
216 (a) the municipality is the energy supplier; or
217 (b) (i) the energy supplier estimates that the municipal energy sales and use tax
218 collected annually by the energy supplier from its Utah customers equals $1,000,000 or more;
219 and
220 (ii) the energy supplier collects the tax imposed by this part.
221 (4) An energy supplier paying a tax under this part directly to a municipality may retain
222 the percentage of the tax authorized under Subsection 59-12-108 (2) for the energy supplier's
223 costs of collecting and remitting the tax.
224 (5) An energy supplier paying the tax under this part directly to a municipality shall file
225 an information return with the commission, at least annually, on a form prescribed by the
226 commission.
227 (6) (a) As used in this Subsection (6):
228 (i) "2005 base amount" means, for a municipality that imposes a municipal energy
229 sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to
230 the municipality for fiscal year 2005.
231 (ii) "2006 base amount" means, for a municipality that imposes a municipal energy
232 sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to
233 the municipality for fiscal year 2006, reduced by the 2006 rebate amount.
234 (iii) "2006 rebate amount" means, for a municipality that imposes a municipal energy
235 sales and use tax, the difference between:
236 (A) the natural gas portion of municipal energy sales and use tax proceeds paid to the
237 municipality for fiscal year 2006; and
238 (B) the 2005 base amount, plus:
239 (I) 10% of the 2005 base amount; and
240 (II) the natural gas portion of municipal energy sales and use tax proceeds paid to the
241 municipality for fiscal year 2006 attributable to an increase in the rate of the municipal energy
242 sales and use tax implemented by the municipality during fiscal year 2006.
243 (iv) "2007 rebate amount" means, for a municipality that imposes a municipal energy
244 sales and use tax, the difference between:

245 (A) the natural gas portion of municipal energy sales and use tax proceeds paid to the
246 municipality for fiscal year 2007; and
247 (B) the 2006 base amount, plus:
248 (I) 10% of the 2006 base amount; and
249 (II) the natural gas portion of municipal energy sales and use tax proceeds paid to the
250 municipality for fiscal year 2007 attributable to an increase in the rate of the municipal energy
251 sales and use tax implemented by the municipality during fiscal year 2007.
252 (v) "Fiscal year 2005" means the period beginning July 1, 2004 and ending June 30,
253 2005.
254 (vi) "Fiscal year 2006" means the period beginning July 1, 2005 and ending June 30,
255 2006.
256 (vii) "Fiscal year 2007" means the period beginning July 1, 2006 and ending June 30,
257 2007.
258 (viii) "Gas supplier" means an energy supplier that supplies natural gas.
259 (ix) "Natural gas portion" means the amount of municipal energy sales and use tax
260 proceeds attributable to sales and uses of natural gas.
261 (b) (i) In December 2006, each gas supplier shall reduce the natural gas portion of
262 municipal energy sales and use gas proceeds to be paid to a municipality by the 2006 rebate
263 amount.
264 (ii) If the 2006 rebate amount exceeds the amount of the natural gas portion of
265 municipal energy sales and use tax proceeds for December 2006, the gas supplier shall reduce
266 the natural gas portion of municipal energy sales and use tax proceeds to be paid to a
267 municipality each month thereafter until the 2006 rebate amount is exhausted.
268 (iii) For December 2006 and for each month thereafter that the gas supplier is required
269 under Subsection (6)(b)(ii) to reduce the natural gas portion of municipal energy sales and use
270 tax proceeds to be paid to a municipality:
271 (A) each municipality imposing a municipal energy sales and use tax shall provide the
272 gas supplier with the amount by which its municipal energy sales and use tax rate applicable to
273 the sales and uses of natural gas would need to be reduced in order to reduce the natural gas
274 portion of municipal energy sales and use tax proceeds by the same amount as the reduction to
275 the municipality; and

276 (B) each gas supplier shall reduce the municipal energy sales and use tax rate
277 applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by
278 the municipality.
279 (c) (i) In December 2007, each gas supplier shall reduce the natural gas portion of
280 municipal energy sales and use tax proceeds to be paid to a municipality by the 2007 rebate
281 amount.
282 (ii) If the 2007 rebate amount exceeds the amount of the natural gas portion of
283 municipal energy sales and use tax proceeds for December 2007, the gas supplier shall reduce
284 the natural gas portion of municipal energy sales and use tax proceeds to be paid to a
285 municipality each month thereafter until the 2007 rebate amount is exhausted.
286 (iii) For December 2007 and for each month thereafter that the gas supplier is required
287 under Subsection (6)(c)(ii) to reduce the natural gas portion of municipal energy sales and use
288 tax proceeds to be paid to a municipality:
289 (A) each municipality imposing a municipal energy sales and use tax shall provide the
290 gas supplier with the amount by which its municipal energy sales and use tax rate applicable to
291 the sales and uses of natural gas would need to be reduced in order to reduce the natural gas
292 portion of municipal energy sales and use tax proceeds by the same amount as the reduction to
293 the municipality; and
294 (B) each gas supplier shall reduce the municipal energy sales and use tax rate
295 applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by
296 the municipality.
297 (d) Nothing in this Subsection (6) may be construed to require a reduction under
298 Subsection (6)(b) or (c) if the rebate amount is zero or negative.
299 Section 2. Section 10-1-402 is amended to read:
300 10-1-402. Definitions.
301 As used in this part:
302 (1) "Commission" means the State Tax Commission.
303 (2) (a) Subject to Subsections (2)(b) and (c), "customer" means the person who is
304 obligated under a contract with a telecommunications provider to pay for telecommunications
305 service received under the contract.
306 (b) For purposes of this section and Section 10-1-407 , "customer" means:

307 (i) the person who is obligated under a contract with a telecommunications provider to
308 pay for telecommunications service received under the contract; or
309 (ii) if the end user is not the person described in Subsection (2)(b)(i), the end user of
310 telecommunications service.
311 (c) "Customer" does not include a reseller:
312 (i) of telecommunications service; or
313 (ii) for mobile telecommunications service, of a serving carrier under an agreement to
314 serve the customer outside the telecommunications provider's licensed service area.
315 (3) (a) "End user" means the person who uses a telecommunications service.
316 (b) For purposes of telecommunications service provided to a person who is not an
317 individual, "end user" means the individual who uses the telecommunications service on behalf
318 of the person who is provided the telecommunications service.
319 (4) (a) "Gross receipts from telecommunications service" means the revenue that a
320 telecommunications provider receives for telecommunications service rendered except for
321 amounts collected or paid as:
322 [(a)] (i) a tax, fee, or charge:
323 [(i)] (A) imposed by a governmental entity;
324 [(ii)] (B) separately identified as a tax, fee, or charge in the transaction with the
325 customer for the telecommunications service; and
326 [(iii)] (C) imposed only on a telecommunications provider;
327 [(b)] (ii) sales and use taxes collected by the telecommunications provider from a
328 customer under Title 59, Chapter 12, Sales and Use Tax Act; or
329 [(c)] (iii) interest, a fee, or a charge that is charged by a telecommunications provider
330 on a customer for failure to pay for telecommunications service when payment is due.
331 (b) "Gross receipts from telecommunications service" includes a charge necessary to
332 complete a sale of a telecommunications service.
333 (5) "Mobile telecommunications service" is as defined in the Mobile
334 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
335 (6) "Municipality" means a city or town.
336 (7) "Place of primary use":
337 (a) for telecommunications service other than mobile telecommunications service,

338 means the street address representative of where the customer's use of the telecommunications
339 service primarily occurs, which shall be:
340 (i) the residential street address of the customer; or
341 (ii) the primary business street address of the customer; or
342 (b) for mobile telecommunications service, is as defined in the Mobile
343 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
344 (8) Notwithstanding where a call is billed or paid, "service address" means:
345 (a) if the location described in this Subsection (8)(a) is known, the location of the
346 telecommunications equipment:
347 (i) to which a call is charged; and
348 (ii) from which the call originates or terminates;
349 (b) if the location described in Subsection (8)(a) is not known but the location
350 described in this Subsection (8)(b) is known, the location of the origination point of the signal
351 of the telecommunications service first identified by:
352 (i) the telecommunications system of the telecommunications provider; or
353 (ii) if the system used to transport the signal is not a system of the telecommunications
354 provider, information received by the telecommunications provider from its service provider;
355 or
356 (c) if the locations described in Subsection (8)(a) or (b) are not known, the location of a
357 customer's place of primary use.
358 (9) (a) Subject to Subsections (9)(b) and (9)(c), "telecommunications provider" means
359 a person that:
360 (i) owns, controls, operates, or manages a telecommunications service; or
361 (ii) engages in an activity described in Subsection (9)(a)(i) for the shared use with or
362 resale to any person of the telecommunications service.
363 (b) A person described in Subsection (9)(a) is a telecommunications provider whether
364 or not the Public Service Commission of Utah regulates:
365 (i) that person; or
366 (ii) the telecommunications service that the person owns, controls, operates, or
367 manages.
368 (c) "Telecommunications provider" does not include an aggregator as defined in

369 Section 54-8b-2 .
370 (10) "Telecommunications service" means:
371 (a) [telephone] telecommunications service, as defined in Section 59-12-102 , other
372 than mobile telecommunications service, that originates and terminates within the boundaries
373 of this state; [and]
374 (b) mobile telecommunications service, as defined in Section 59-12-102 :
375 (i) that originates and terminates within the boundaries of one state; and
376 (ii) only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4
377 U.S.C. Sec. 116 et seq.; or
378 (c) an ancillary service as defined in Section 59-12-102 .
379 (11) (a) Except as provided in Subsection (11)(b), "telecommunications tax or fee"
380 means any of the following imposed by a municipality on a telecommunications provider:
381 (i) a tax;
382 (ii) a license;
383 (iii) a fee;
384 (iv) a license fee;
385 (v) a license tax;
386 (vi) a franchise fee; or
387 (vii) a charge similar to a tax, license, or fee described in Subsections (11)(a)(i)
388 through (vi).
389 (b) "Telecommunications tax or fee" does not include:
390 (i) the municipal telecommunications license tax authorized by this part; or
391 (ii) a tax, fee, or charge, including a tax imposed under Title 59, Revenue and
392 Taxation, that is imposed:
393 (A) on telecommunications providers; and
394 (B) on persons who are not telecommunications providers.
395 Section 3. Section 10-1-405 is amended to read:
396 10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
397 Rulemaking authority -- Charge for services.
398 (1) Subject to the other provisions of this section, the commission shall collect,
399 enforce, and administer any municipal telecommunications license tax imposed under this part

400 pursuant to:
401 (a) the same procedures used in the administration, collection, and enforcement of the
402 state sales and use tax under:
403 (i) Title 59, Chapter 1, General Taxation Policies; and
404 (ii) Title 59, Chapter 12, Part 1, Tax Collection:
405 (A) except for:
406 (I) Subsection 59-12-103 (2)[(h)] (g);
407 (II) Section 59-12-104 ;
408 (III) Section 59-12-104.1 ;
409 (IV) Section 59-12-104.2 ; [and]
410 (V) Section 59-12-104.3 ;
411 [(V)] (VI) Section 59-12-107.1 ; and
412 (VII) Section 59-12-123 ; and
413 (B) except that for purposes of Section 59-12-110 , the term "taxpayer" may include a
414 customer from whom a municipal telecommunications license tax is recovered in accordance
415 with Subsection 10-1-403 (2); and
416 (b) a uniform interlocal agreement:
417 (i) between:
418 (A) the municipality that imposes the municipal telecommunications license tax; and
419 (B) the commission;
420 (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
421 (iii) that complies with Subsection (2)(a); and
422 (iv) that is developed by rule in accordance with Subsection (2)(b).
423 (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
424 the commission shall:
425 (i) transmit monies collected under this part:
426 (A) monthly; and
427 (B) by electronic funds transfer by the commission to the municipality;
428 (ii) conduct audits of the municipal telecommunications license tax;
429 (iii) charge the municipality for the commission's services under this section in an
430 amount:

431 (A) sufficient to reimburse the commission for the cost to the commission in rendering
432 the services; and
433 (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
434 license tax imposed by the ordinance of the municipality; and
435 (iv) collect, enforce, and administer the municipal telecommunications license tax
436 authorized under this part pursuant to the same procedures used in the administration,
437 collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
438 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
439 commission shall develop a uniform interlocal agreement that meets the requirements of this
440 section.
441 (3) The administrative fee charged under Subsection (2)(a) shall be:
442 (a) deposited in the Sales and Use Tax Administrative Fees Account; and
443 (b) used for administration of municipal telecommunications license taxes under this
444 part.
445 (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
446 telecommunications license tax under this part at a rate that exceeds 3.5%:
447 (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
448 shall collect the municipal telecommunications license tax:
449 (i) within the municipality;
450 (ii) at a rate of 3.5%; and
451 (iii) from a telecommunications provider required to pay the municipal
452 telecommunications license tax on or after July 1, 2007; and
453 (b) the commission shall collect a municipal telecommunications license tax within the
454 municipality at the rate imposed by the municipality if:
455 (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
456 telecommunications license tax under this part at a rate of up to 3.5%;
457 (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
458 the rate of the municipal telecommunications license tax; and
459 (iii) a telecommunications provider is required to pay the municipal
460 telecommunications license tax on or after the day on which the ordinance described in
461 Subsection (4)(b)(ii) takes effect.

462 Section 4. Section 10-1-407 is amended to read:
463 10-1-407. Attributing the gross receipts from telecommunications service to a
464 municipality -- Rate impact.
465 (1) The gross receipts from a telecommunications service are attributed to a
466 municipality if the gross receipts are from a transaction for telecommunications service that is
467 located within the municipality:
468 (a) for purposes of sales and use taxes under Title 59, Chapter 12, Sales and Use Tax
469 Act; and
470 (b) determined in accordance with Section [ 59-12-207.4 ] 59-12-215 .
471 (2) (a) The rate imposed on the gross receipts for telecommunications service shall be
472 determined in accordance with Subsection (2)(b) if the location of a transaction for
473 telecommunications service is determined under Subsection (1) to be a municipality other than
474 the municipality in which is located:
475 (i) for telecommunications service other than mobile telecommunications service, the
476 customer's service address; or
477 (ii) for mobile telecommunications service, the customer's primary place of use.
478 (b) The rate imposed on the gross receipts for telecommunications service described in
479 Subsection (2)(a) shall be the lower of:
480 (i) the rate imposed by the taxing jurisdiction in which the transaction is located under
481 Subsection (1); or
482 (ii) the rate imposed by the municipality in which it is located:
483 (A) for telecommunications service other than mobile telecommunications service, the
484 customer's service address; or
485 (B) for mobile telecommunications service, the customer's primary place of use.
486 Section 5. Section 11-41-102 is amended to read:
487 11-41-102. Definitions.
488 As used in this chapter:
489 (1) "Agreement" means an oral or written agreement between a:
490 (a) (i) county; or
491 (ii) municipality; and
492 (b) person.

493 (2) "Municipality" means a:
494 (a) city; or
495 (b) town.
496 (3) "Payment" includes:
497 (a) a payment;
498 (b) a rebate;
499 (c) a refund; or
500 (d) an amount similar to Subsections (3)(a) through (c).
501 (4) "Regional retail business" means a:
502 (a) retail business that occupies a floor area of more than 80,000 square feet;
503 (b) dealer as defined in Section 41-1a-102 ;
504 (c) retail shopping facility that has at least two anchor tenants if the total number of
505 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
506 feet; or
507 (d) grocery store that occupies a floor area of more than 30,000 square feet.
508 (5) (a) "Sales and use tax" means a tax:
509 (i) imposed on transactions within a:
510 (A) county; or
511 (B) municipality; and
512 (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
513 Sales and Use Tax Act.
514 (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
515 authorized under:
516 (i) Subsection 59-12-103 (2)(a)(i);
517 (ii) Subsection 59-12-103 (2)(b)(i);
518 (iii) Subsection 59-12-103 (2)(c)(i);
519 (iv) Subsection 59-12-103 (2)(d)(i)(A);
520 [(v) Subsection 59-12-103 (2)(e)(ii)(A);]
521 [(vi) Subsection 59-12-103 (2)(e)(iii)(A);]
522 [(vii)] (v) Section 59-12-301 ;
523 [(viii)] (vi) Section 59-12-352 ;

524 [(ix)] (vii) Section 59-12-353 ;
525 [(x)] (viii) Section 59-12-603 ; or
526 [(xi)] (ix) Section 59-12-1201 .
527 (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
528 (i) to a person;
529 (ii) by a:
530 (A) county; or
531 (B) municipality;
532 (iii) to induce the person to locate or relocate a regional retail business within the:
533 (A) county; or
534 (B) municipality; and
535 (iv) that are derived from a sales and use tax.
536 (b) "Sales and use tax incentive payment" does not include funding for public
537 infrastructure.
538 Section 6. Section 53-10-605 is amended to read:
539 53-10-605. Use of money in fund -- Criteria -- Administration.
540 (1) Subject to an annual legislative appropriation from the fund to:
541 (a) the committee, the committee shall:
542 (i) authorize the use of the money in the fund, by grant to a local entity or state agency
543 in accordance with this Subsection (1) and Subsection (2);
544 (ii) grant to state agencies and local entities an amount not to exceed the per month fee
545 levied on [telephone services] telecommunications service under Section 69-2-5.6 for
546 installation, implementation, and maintenance of unified, statewide 911 emergency services
547 and technology; and
548 (iii) in addition to any money under Subsection (1)(a)(ii), grant to counties of the third
549 through sixth class the amount dedicated for rural assistance, which is at least 3 cents per
550 month levied on [telephone services] telecommunications service under Section 69-2-5.6 to:
551 (A) enhance the 911 emergency services with a focus on areas or counties that do not
552 have E-911 services; and
553 (B) where needed, assist the counties, in cooperation with private industry, with the
554 creation or integration of wireless systems and location technology in rural areas of the state;

555 (b) the committee, the committee shall:
556 (i) include reimbursement to a provider of radio communications service, as defined in
557 Section 69-2-2 , for costs as provided in Subsection (1)(b)(ii); and
558 (ii) an agreement to reimburse costs to a provider of radio communications services
559 must be a written agreement among the committee, the local public safety answering point and
560 the carrier; and
561 (c) the state's Automated Geographic Reference Center in the Division of Integrated
562 Technology of the Department of Technology Services, an amount equal to 1 cent per month
563 levied on [telephone services] telecommunications service under Section 69-2-5.6 shall be used
564 to enhance and upgrade statewide digital mapping standards.
565 (2) (a) Beginning July 1, 2007, the committee may not grant the money in the fund to a
566 local entity unless the local entity is in compliance with Phase I, wireless E-911 service.
567 (b) Beginning July 1, 2009, the committee may not grant money in the fund to a local
568 entity unless the local entity is in compliance with Phase II, wireless E-911 service.
569 (3) A local entity must deposit any money it receives from the committee into a special
570 emergency [telephone] telecommunications service fund in accordance with Subsection
571 69-2-5 (4).
572 (4) For purposes of this part, "local entity" means a county, city, town, local district,
573 special service district, or interlocal entity created under Title 11, Chapter 13, Interlocal
574 Cooperation Act.
575 Section 7. Section 59-1-403 is amended to read:
576 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
577 (1) (a) Any of the following may not divulge or make known in any manner any
578 information gained by that person from any return filed with the commission:
579 (i) a tax commissioner;
580 (ii) an agent, clerk, or other officer or employee of the commission; or
581 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
582 town.
583 (b) An official charged with the custody of a return filed with the commission is not
584 required to produce the return or evidence of anything contained in the return in any action or
585 proceeding in any court, except:

586 (i) in accordance with judicial order;
587 (ii) on behalf of the commission in any action or proceeding under:
588 (A) this title; or
589 (B) other law under which persons are required to file returns with the commission;
590 (iii) on behalf of the commission in any action or proceeding to which the commission
591 is a party; or
592 (iv) on behalf of any party to any action or proceeding under this title if the report or
593 facts shown by the return are directly involved in the action or proceeding.
594 (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
595 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
596 pertinent to the action or proceeding.
597 (2) This section does not prohibit:
598 (a) a person or that person's duly authorized representative from receiving a copy of
599 any return or report filed in connection with that person's own tax;
600 (b) the publication of statistics as long as the statistics are classified to prevent the
601 identification of particular reports or returns; and
602 (c) the inspection by the attorney general or other legal representative of the state of the
603 report or return of any taxpayer:
604 (i) who brings action to set aside or review a tax based on the report or return;
605 (ii) against whom an action or proceeding is contemplated or has been instituted under
606 this title; or
607 (iii) against whom the state has an unsatisfied money judgment.
608 (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
609 commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
610 Rulemaking Act, provide for a reciprocal exchange of information with:
611 (i) the United States Internal Revenue Service; or
612 (ii) the revenue service of any other state.
613 (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
614 corporate franchise tax, the commission may by rule, made in accordance with Title 63,
615 Chapter 46a, Utah Administrative Rulemaking Act, share information gathered from returns
616 and other written statements with the federal government, any other state, any of the political

617 subdivisions of another state, or any political subdivision of this state, except as limited by
618 Sections 59-12-209 and 59-12-210 , if the political subdivision, other state, or the federal
619 government grant substantially similar privileges to this state.
620 (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
621 corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
622 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
623 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
624 due.
625 (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
626 Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
627 requested by the executive secretary, any records, returns, or other information filed with the
628 commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
629 regarding the environmental assurance program participation fee.
630 (e) Notwithstanding Subsection (1), at the request of any person the commission shall
631 provide that person sales and purchase volume data reported to the commission on a report,
632 return, or other information filed with the commission under:
633 (i) Chapter 13, Part 2, Motor Fuel; or
634 (ii) Chapter 13, Part 4, Aviation Fuel.
635 (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
636 as defined in Section 59-22-202 , the commission shall report to the manufacturer:
637 (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
638 manufacturer and reported to the commission for the previous calendar year under Section
639 59-14-407 ; and
640 (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
641 manufacturer for which a tax refund was granted during the previous calendar year under
642 Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
643 (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
644 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
645 from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
646 (h) Notwithstanding Subsection (1), the commission may:
647 (i) provide to the Division of Consumer Protection within the Department of

648 Commerce and the attorney general data:
649 (A) reported to the commission under Section 59-14-212 ; or
650 (B) related to a violation under Section 59-14-211 ; and
651 (ii) upon request provide to any person data reported to the commission under
652 Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
653 (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
654 of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning
655 and Budget, provide to the committee or office the total amount of revenues collected by the
656 commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
657 specified by the committee or office.
658 (j) Notwithstanding Subsection (1), the commission shall at the request of the
659 Legislature provide to the Legislature the total amount of sales or uses exempt under
660 Subsection 59-12-104 (46) reported to the commission in accordance with Section 59-12-105 .
661 (k) Notwithstanding Subsection (1), the commission shall make the directory required
662 by Section 59-14-603 available for public inspection.
663 (l) Notwithstanding Subsection (1), the commission may share information with
664 federal, state, or local agencies as provided in Subsection 59-14-606 (3).
665 (m) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
666 Recovery Services within the Department of Human Services any relevant information
667 obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
668 who has become obligated to the Office of Recovery Services.
669 (ii) The information described in Subsection (3)(m)(i) may be provided by the Office
670 of Recovery Services to any other state's child support collection agency involved in enforcing
671 that support obligation.
672 (n) (i) Notwithstanding Subsection (1), upon request from the state court administrator,
673 the commission shall provide to the state court administrator, the name, address, telephone
674 number, county of residence, and Social Security number on resident returns filed under
675 Chapter 10, Individual Income Tax Act.
676 (ii) The state court administrator may use the information described in Subsection
677 (3)(n)(i) only as a source list for the master jury list described in Section 78-46-10 .
678 (o) Notwithstanding Subsection (1), the commission shall at the request of a

679 committee, commission, or task force of the Legislature provide to the committee, commission,
680 or task force of the Legislature any information relating to a tax imposed under Chapter 9,
681 Taxation of Admitted Insurers, relating to the study required by Section 59-9-101 .
682 (p) (i) As used in this Subsection (3)(p), "office" means the:
683 (A) Office of the Legislative Fiscal Analyst; or
684 (B) Office of Legislative Research and General Counsel.
685 (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(p)(iii),
686 the commission shall at the request of an office provide to the office all information:
687 (A) gained by the commission; and
688 (B) required to be attached to or included in returns filed with the commission.
689 (iii) (A) An office may not request and the commission may not provide to an office a
690 person's:
691 (I) address;
692 (II) name;
693 (III) Social Security number; or
694 (IV) taxpayer identification number.
695 (B) The commission shall in all instances protect the privacy of a person as required by
696 Subsection (3)(p)(iii)(A).
697 (iv) An office may provide information received from the commission in accordance
698 with this Subsection (3)(p) only:
699 (A) as:
700 (I) a fiscal estimate;
701 (II) fiscal note information; or
702 (III) statistical information; and
703 (B) if the information is classified to prevent the identification of a particular return.
704 (v) (A) A person may not request information from an office under Title 63, Chapter 2,
705 Government Records Access and Management Act, or this section, if that office received the
706 information from the commission in accordance with this Subsection (3)(p).
707 (B) An office may not provide to a person that requests information in accordance with
708 Subsection (3)(p)(v)(A) any information other than the information the office provides in
709 accordance with Subsection (3)(p)(iv).

710 (q) Notwithstanding Subsection (1), the commission may provide to the governing
711 board of the agreement or a taxing official of another state, the District of Columbia, the United
712 States, or a territory of the United States:
713 (i) the following relating to an agreement sales and use tax:
714 (A) information contained in a return filed with the commission;
715 (B) information contained in a report filed with the commission;
716 (C) a schedule related to Subsection (3)(q)(i)(A) or (B); or
717 (D) a document filed with the commission; or
718 (ii) a report of an audit or investigation made with respect to an agreement sales and
719 use tax.
720 (4) (a) Reports and returns shall be preserved for at least three years.
721 (b) After the three-year period provided in Subsection (4)(a) the commission may
722 destroy a report or return.
723 (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
724 (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
725 the person shall be dismissed from office and be disqualified from holding public office in this
726 state for a period of five years thereafter.
727 (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
728 accordance with Subsection (3)(p)(iii) or a person that requests information in accordance with
729 Subsection (3)(p)(v):
730 (i) is not guilty of a class A misdemeanor; and
731 (ii) is not subject to:
732 (A) dismissal from office in accordance with Subsection (5)(b); or
733 (B) disqualification from holding public office in accordance with Subsection (5)(b).
734 (6) Except as provided in Section 59-1-404 , this part does not apply to the property tax.
735 Section 8. Section 59-12-102 is amended to read:
736 59-12-102. Definitions.
737 As used in this chapter:
738 (1) "800 service" means a telecommunications service that:
739 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
740 (b) is typically marketed:

741 (i) under the name 800 toll-free calling;
742 (ii) under the name 855 toll-free calling;
743 (iii) under the name 866 toll-free calling;
744 (iv) under the name 877 toll-free calling;
745 (v) under the name 888 toll-free calling; or
746 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
747 Federal Communications Commission.
748 (2) (a) "900 service" means an inbound toll telecommunications service that:
749 (i) a subscriber purchases;
750 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
751 the subscriber's:
752 (A) prerecorded announcement; or
753 (B) live service; and
754 (iii) is typically marketed:
755 (A) under the name 900 service; or
756 (B) under a name similar to Subsection (2)(c)(iii)(A) as designated by the Federal
757 Communications Commission.
758 (b) "900 service" does not include a charge for:
759 (i) a collection service a seller of a telecommunications service provides to a
760 subscriber; or
761 (ii) the following a subscriber sells to the subscriber's customer:
762 (A) a product; or
763 (B) a service.
764 [(1)] (3) (a) "Admission or user fees" includes season passes.
765 (b) "Admission or user fees" does not include annual membership dues to private
766 organizations.
767 [(2)] (4) "Agreement" means the Streamlined Sales and Use Tax Agreement [described
768 in Section 59-12-102.1 ] adopted on November 12, 2002, including amendments made to the
769 Streamlined Sales and Use Tax Agreement after November 12, 2002.
770 [(3)] (5) "Agreement combined tax rate" means the sum of the tax rates:
771 (a) listed under Subsection [(4)] (6); and

772 (b) that are imposed within a local taxing jurisdiction.
773 [(4)] (6) "Agreement sales and use tax" means a tax imposed under:
774 (a) Subsection 59-12-103 (2)(a)(i);
775 (b) Subsection 59-12-103 (2)(b)(i);
776 (c) Subsection 59-12-103 (2)(c)(i);
777 [(d) Subsection 59-12-103 (2)(d)(i);]
778 [(e)] (d) Subsection 59-12-103 (2)[(e)(ii)] (d)(i)(A);
779 [(f) Subsection 59-12-103 (2)(e)(iii)(A);]
780 [(g)] (e) Section 59-12-204 ;
781 [(h)] (f) Section 59-12-401 ;
782 [(i)] (g) Section 59-12-402 ;
783 [(j)] (h) Section 59-12-501 ;
784 [(k)] (i) Section 59-12-502 ;
785 [(l)] (j) Section 59-12-703 ;
786 [(m)] (k) Section 59-12-802 ;
787 [(n)] (l) Section 59-12-804 ;
788 [(o)] (m) Section 59-12-1001 ;
789 [(p)] (n) Section 59-12-1102 ;
790 [(q)] (o) Section 59-12-1302 ;
791 [(r)] (p) Section 59-12-1402 ;
792 [(s)] (q) Section 59-12-1503 ; [or]
793 [(t)] (r) Section 59-12-1703 [.]; or
794 (s) Section 59-12-1802 .
795 [(5)] (7) "Aircraft" is as defined in Section 72-10-102 .
796 [(6)] (8) "Alcoholic beverage" means a beverage that:
797 (a) is suitable for human consumption; and
798 (b) contains .5% or more alcohol by volume.
799 (9) (a) "Ancillary service" means a service associated with, or incidental to, the
800 provision of telecommunications service.
801 (b) "Ancillary service" includes:
802 (i) a conference bridging service;

803 (ii) a detailed communications billing service;
804 (iii) directory assistance;
805 (iv) a vertical service; or
806 (v) a voice mail service.
807 [(7)] (10) "Area agency on aging" is as defined in Section 62A-3-101 .
808 [(8)] (11) "Assisted amusement device" means an amusement device, skill device, or
809 ride device that is started and stopped by an individual:
810 (a) who is not the purchaser or renter of the right to use or operate the amusement
811 device, skill device, or ride device; and
812 (b) at the direction of the seller of the right to use the amusement device, skill device,
813 or ride device.
814 [(9)] (12) "Assisted cleaning or washing of tangible personal property" means cleaning
815 or washing of tangible personal property if the cleaning or washing labor is primarily
816 performed by an individual:
817 (a) who is not the purchaser of the cleaning or washing of the tangible personal
818 property; and
819 (b) at the direction of the seller of the cleaning or washing of the tangible personal
820 property.
821 [(10)] (13) "Authorized carrier" means:
822 (a) in the case of vehicles operated over public highways, the holder of credentials
823 indicating that the vehicle is or will be operated pursuant to both the International Registration
824 Plan and the International Fuel Tax Agreement;
825 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
826 certificate or air carrier's operating certificate; or
827 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
828 stock, the holder of a certificate issued by the United States Surface Transportation Board.
829 [(11)] (14) (a) Except as provided in Subsection [(11)] (14)(b), "biomass energy"
830 means any of the following that is used as the primary source of energy to produce fuel or
831 electricity:
832 (i) material from a plant or tree; or
833 (ii) other organic matter that is available on a renewable basis, including:

834 (A) slash and brush from forests and woodlands;
835 (B) animal waste;
836 (C) methane produced:
837 (I) at landfills; or
838 (II) as a byproduct of the treatment of wastewater residuals;
839 (D) aquatic plants; and
840 (E) agricultural products.
841 (b) "Biomass energy" does not include:
842 (i) black liquor;
843 (ii) treated woods; or
844 (iii) biomass from municipal solid waste other than methane produced:
845 (A) at landfills; or
846 (B) as a byproduct of the treatment of wastewater residuals.
847 [(12)] (15) (a) "Bundled transaction" means the sale of two or more [items of tangible
848 personal property if: (i) one or more of the items of tangible personal property is food and food
849 ingredients; and (ii) the items of tangible personal property] items of tangible personal
850 property, products, or services if the tangible personal property, products, or services are:
851 [(A)] (i) distinct and identifiable; and
852 [(B)] (ii) sold for one nonitemized price [that is not itemized].
853 (b) "Bundled transaction" does not include:
854 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
855 the basis of the selection by the purchaser of the items of tangible personal property included in
856 the transaction[.];
857 (ii) the sale of real property;
858 (iii) the sale of services to real property;
859 (iv) the retail sale of tangible personal property and a service if:
860 (A) the tangible personal property:
861 (I) is essential to the use of the service; and
862 (II) is provided exclusively in connection with the service; and
863 (B) the service is the true object of the transaction;
864 (v) the retail sale of two services if:

865 (A) one service is provided that is essential to the use or receipt of a second service;
866 (B) the first service is provided exclusively in connection with the second service; and
867 (C) the second service is the true object of the transaction;
868 (vi) a transaction that includes tangible personal property or a product subject to
869 taxation under this chapter and tangible personal property or a product that is not subject to
870 taxation under this chapter if the:
871 (A) seller's purchase price of the tangible personal property or product subject to
872 taxation under this chapter is de minimis; or
873 (B) seller's sales price of the tangible personal property or product subject to taxation
874 under this chapter is de minimis; and
875 (vii) the retail sale of tangible personal property that is not subject to taxation under
876 this chapter and tangible personal property that is subject to taxation under this chapter if:
877 (A) that retail sale includes:
878 (I) food and food ingredients;
879 (II) a drug;
880 (III) durable medical equipment;
881 (IV) mobility enhancing equipment;
882 (V) an over-the-counter drug;
883 (VI) a prosthetic device; or
884 (VII) a medical supply; and
885 (B) subject to Subsection (15)(f):
886 (I) the seller's purchase price of the tangible personal property subject to taxation under
887 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
888 (II) the seller's sales price of the tangible personal property subject to taxation under
889 this chapter is 50% or less of the seller's total sales price of that retail sale.
890 (c) (i) For purposes of Subsection [(12)] (15)(a)[(ii)(A)] (i), tangible personal property,
891 a product, or H. a .H service that is distinct and identifiable does not include:
892 [(i)] (A) packaging that:
893 [(A)] (I) accompanies the sale of the tangible personal property, product, or service;
894 and
895 [(B)] (II) is incidental or immaterial to the sale of the tangible personal property,

896 product, or service;
897 [(ii)] (B) tangible personal property H. , a product, or a service .H provided free of
897a charge with the purchase of
898 another item of tangible personal property H. , a product, or a service .H ; or
899 [(iii)] (C) an item of tangible personal property, H. a .H product, or a service included
899a in the
900 definition of "purchase price."
901 [(d)] (ii) For purposes of Subsection [(12)] (15)(c)[(ii)](i)(B), an item of tangible
902 personal property H. , a product, or a service .H is provided free of charge with the purchase
902a of another item of tangible
903 personal property H. , a product, or a service .H if the sales price of the purchased item of
903a tangible personal property H. , product, or service .H does not
904 vary depending on the inclusion of the tangible personal property H. , product, or service .H
904a provided free of charge.
905 (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
906 does not include a price that is separately identified by product on the following, regardless of
907 whether the following is in paper format or electronic format:
908 (A) a binding sales document; or
909 (B) another supporting sales-related document that is available to a purchaser.
910 (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
911 supporting sales-related document that is available to a purchaser includes:
912 (A) a bill of sale;
913 (B) a contract;
914 (C) an invoice;
915 (D) a lease agreement;
916 (E) a periodic notice of rates and services;
917 (F) a price list;
918 (G) a rate card;
919 (H) a receipt; or
920 (I) a service agreement.
921 (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
922 property or a product subject to taxation under this chapter is de minimis if:
923 (A) the seller's purchase price of the tangible personal property or product is 10% or
924 less of the seller's total purchase price of the bundled transaction; or

925 (B) the seller's sales price of the tangible personal property or product is 10% or less of
926 the seller's total sales price of the bundled transaction.

927 (ii) For purposes of Subsection (15)(b)(vi), a seller:
928 (A) shall use the seller's purchase price or the seller's sales price to determine if the
929 purchase price or sales price of the tangible personal property or product subject to taxation
930 under this chapter is de minimis; and
931 (B) may not use a combination of the seller's purchase price and the seller's sales price
932 to determine if the purchase price or sales price of the tangible personal property or product
933 subject to taxation under this chapter is de minimis.
934 (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
935 contract to determine if the sales price of tangible personal property or a product is de minimis.
936 (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
937 the seller's purchase price and the seller's sales price to determine if tangible personal property
938 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
939 price of that retail sale.
940 [(13)] (16) "Certified automated system" means software certified by the governing
941 board of the agreement in accordance with Section 59-12-102.1 that:
942 (a) calculates the agreement sales and use tax imposed within a local taxing
943 jurisdiction:
944 (i) on a transaction; and
945 (ii) in the states that are members of the agreement;
946 (b) determines the amount of agreement sales and use tax to remit to a state that is a
947 member of the agreement; and
948 (c) maintains a record of the transaction described in Subsection [(13)] (16)(a)(i).
949 [(14)] (17) "Certified service provider" means an agent certified:
950 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
951 and
952 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
953 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
954 own purchases.
955 [(15)] (18) (a) Subject to Subsection [(15)] (18)(b), "clothing" means all human
956 wearing apparel suitable for general use.
957 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

958 commission shall make rules:
959 (i) listing the items that constitute "clothing"; and
960 (ii) that are consistent with the list of items that constitute "clothing" under the
961 agreement.
962 [(16)] (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic
963 fuel.
964 [(17)] (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
965 other fuels that does not constitute industrial use under Subsection [(42)] (46) or residential use
966 under Subsection [(80)] (91).
967 [(18)] (21) (a) "Common carrier" means a person engaged in or transacting the
968 business of transporting passengers, freight, merchandise, or other property for hire within this
969 state.
970 (b) (i) "Common carrier" does not include a person who, at the time the person is
971 traveling to or from that person's place of employment, transports a passenger to or from the
972 passenger's place of employment.
973 (ii) For purposes of Subsection [(18)] (21)(b)(i), in accordance with Title 63, Chapter
974 46a, Utah Administrative Rulemaking Act, the commission may make rules defining what
975 constitutes a person's place of employment.
976 [(19)] (22) "Component part" includes:
977 (a) poultry, dairy, and other livestock feed, and their components;
978 (b) baling ties and twine used in the baling of hay and straw;
979 (c) fuel used for providing temperature control of orchards and commercial
980 greenhouses doing a majority of their business in wholesale sales, and for providing power for
981 off-highway type farm machinery; and
982 (d) feed, seeds, and seedlings.
983 [(20)] (23) "Computer" means an electronic device that accepts information:
984 (a) (i) in digital form; or
985 (ii) in a form similar to digital form; and
986 (b) manipulates that information for a result based on a sequence of instructions.
987 [(21)] (24) "Computer software" means a set of coded instructions designed to cause:
988 (a) a computer to perform a task; or

989 (b) automatic data processing equipment to perform a task.
990 (25) (a) "Conference bridging service" means an ancillary service that links two or
991 more participants of an audio conference call or video conference call.
992 (b) "Conference bridging service" includes providing a telephone number as part of the
993 ancillary service described in Subsection (25)(a).
994 (c) "Conference bridging service" does not include a telecommunications service used
995 to reach the ancillary service described in Subsection (25)(a).
996 [(22)] (26) "Construction materials" means any tangible personal property that will be
997 converted into real property.
998 [(23)] (27) "Delivered electronically" means delivered to a purchaser by means other
999 than tangible storage media.
1000 [(24)] (28) (a) "Delivery charge" means a charge:
1001 (i) by a seller of:
1002 (A) tangible personal property; [or]
1003 (B) a product transferred electronically; or
1004 [(B)] (C) services; and
1005 (ii) for preparation and delivery of the tangible personal property, product transferred
1006 electronically, or services described in Subsection [(24)] (28)(a)(i) to a location designated by
1007 the purchaser.
1008 (b) "Delivery charge" includes a charge for the following:
1009 (i) transportation;
1010 (ii) shipping;
1011 (iii) postage;
1012 (iv) handling;
1013 (v) crating; or
1014 (vi) packing.
1015 [(25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:]
1016 [(i) a bridge;]
1017 [(ii) a crown if that crown covers at least 75% of a tooth structure;]
1018 [(iii) a denture;]
1019 [(iv) an implant;]

1020 [(v) an orthodontic device designed to:]
1021 [(A) retain the position or spacing of teeth; and]
1022 [(B) replace a missing tooth;]
1023 [(vi) a partial denture; or]
1024 [(vii) a device similar to Subsections (25)(a)(i) through (vi).]
1025 [(b) "Dental prosthesis" does not include an appliance or device, other than a device
1026 described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
1027 apply force to the teeth and their supporting structures to:]
1028 [(i) produce changes in their relationship to each other; and]
1029 [(ii) control their growth and development.]
1030 (29) "Detailed telecommunications billing service" means an ancillary service of
1031 separately stating information pertaining to individual calls on a customer's billing statement.
1032 [(26)] (30) "Dietary supplement" means a product, other than tobacco, that:
1033 (a) is intended to supplement the diet;
1034 (b) contains one or more of the following dietary ingredients:
1035 (i) a vitamin;
1036 (ii) a mineral;
1037 (iii) an herb or other botanical;
1038 (iv) an amino acid;
1039 (v) a dietary substance for use by humans to supplement the diet by increasing the total
1040 dietary intake; or
1041 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
1042 described in Subsections [(26)] (30)(b)(i) through (v);
1043 (c) (i) except as provided in Subsection [(26)] (30)(c)(ii), is intended for ingestion in:
1044 (A) tablet form;
1045 (B) capsule form;
1046 (C) powder form;
1047 (D) softgel form;
1048 (E) gelcap form; or
1049 (F) liquid form; or
1050 (ii) notwithstanding Subsection [(26)] (30)(c)(i), if the product is not intended for

1051 ingestion in a form described in Subsections [(26)] (30)(c)(i)(A) through (F), is not
1052 represented:
1053 (A) as conventional food; and
1054 (B) for use as a sole item of:
1055 (I) a meal; or
1056 (II) the diet; and
1057 (d) is required to be labeled as a dietary supplement:
1058 (i) identifiable by the "Supplemental Facts" box found on the label; and
1059 (ii) as required by 21 C.F.R. Sec. 101.36.
1060 [(27)] (31) (a) "Direct mail" means printed material delivered or distributed by United
1061 States mail or other delivery service:
1062 (i) to:
1063 (A) a mass audience; or
1064 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
1065 (ii) if the cost of the printed material is not billed directly to the recipients.
1066 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1067 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1068 (c) "Direct mail" does not include multiple items of printed material delivered to a
1069 single address.
1070 (32) "Directory assistance" means an ancillary service of providing:
1071 (a) address information; or
1072 (b) telephone number information.
1073 [(28)] (33) (a) "Disposable home medical equipment or supplies" means medical
1074 equipment or supplies that:
1075 (i) cannot withstand repeated use; and
1076 (ii) are purchased by, for, or on behalf of a person other than:
1077 (A) a health care facility as defined in Section 26-21-2 ;
1078 (B) a health care provider as defined in Section 78-14-3 ;
1079 (C) an office of a health care provider described in Subsection [(28)] (33)(a)(ii)(B); or
1080 (D) a person similar to a person described in Subsections [(28)] (33)(a)(ii)(A) through
1081 (C).

1082 (b) "Disposable home medical equipment or supplies" does not include:
1083 (i) a drug;
1084 (ii) durable medical equipment;
1085 (iii) a hearing aid;
1086 (iv) a hearing aid accessory;
1087 (v) mobility enhancing equipment; or
1088 (vi) tangible personal property used to correct impaired vision, including:
1089 (A) eyeglasses; or
1090 (B) contact lenses.
1091 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1092 commission may by rule define what constitutes medical equipment or supplies.
1093 [(29)] (34) (a) "Drug" means a compound, substance, or preparation, or a component of
1094 a compound, substance, or preparation that is:
1095 (i) recognized in:
1096 (A) the official United States Pharmacopoeia;
1097 (B) the official Homeopathic Pharmacopoeia of the United States;
1098 (C) the official National Formulary; or
1099 (D) a supplement to a publication listed in Subsections [(29)] (34)(a)(i)(A) through
1100 (C);
1101 (ii) intended for use in the:
1102 (A) diagnosis of disease;
1103 (B) cure of disease;
1104 (C) mitigation of disease;
1105 (D) treatment of disease; or
1106 (E) prevention of disease; or
1107 (iii) intended to affect:
1108 (A) the structure of the body; or
1109 (B) any function of the body.
1110 (b) "Drug" does not include:
1111 (i) food and food ingredients;
1112 (ii) a dietary supplement;

1113 (iii) an alcoholic beverage; or
1114 (iv) a prosthetic device.
1115 [(30)] (35) (a) Except as provided in Subsection [(30)] (35)(c), "durable medical
1116 equipment" means equipment that:
1117 (i) can withstand repeated use;
1118 (ii) is primarily and customarily used to serve a medical purpose;
1119 (iii) generally is not useful to a person in the absence of illness or injury; and
1120 (iv) is not worn in or on the body.
1121 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1122 equipment described in Subsection [(30)] (35)(a).
1123 (c) Notwithstanding Subsection [(30)] (35)(a), "durable medical equipment" does not
1124 include mobility enhancing equipment.
1125 [(31)] (36) "Electronic" means:
1126 (a) relating to technology; and
1127 (b) having:
1128 (i) electrical capabilities;
1129 (ii) digital capabilities;
1130 (iii) magnetic capabilities;
1131 (iv) wireless capabilities;
1132 (v) optical capabilities;
1133 (vi) electromagnetic capabilities; or
1134 (vii) capabilities similar to Subsections [(31)] (36)(b)(i) through (vi).
1135 [(32)] (37) "Employee" is as defined in Section 59-10-401 .
1136 [(33)] (38) "Fixed guideway" means a public transit facility that uses and occupies:
1137 (a) rail for the use of public transit; or
1138 (b) a separate right-of-way for the use of public transit.
1139 (39) "Fixed wireless service" means a telecommunications service that provides radio
1140 communication between fixed points.
1141 [(34)] (40) (a) "Food and food ingredients" means substances:
1142 (i) regardless of whether the substances are in:
1143 (A) liquid form;

1144 (B) concentrated form;
1145 (C) solid form;
1146 (D) frozen form;
1147 (E) dried form; or
1148 (F) dehydrated form; and
1149 (ii) that are:
1150 (A) sold for:
1151 (I) ingestion by humans; or
1152 (II) chewing by humans; and
1153 (B) consumed for the substance's:
1154 (I) taste; or
1155 (II) nutritional value.
1156 (b) "Food and food ingredients" includes an item described in Subsection [(66)]
1157 (75)(b)(iii).
1158 (c) "Food and food ingredients" does not include:
1159 (i) an alcoholic beverage;
1160 (ii) tobacco; or
1161 (iii) prepared food.
1162 [(35)] (41) (a) "Fundraising sales" means sales:
1163 (i) (A) made by a school; or
1164 (B) made by a school student;
1165 (ii) that are for the purpose of raising funds for the school to purchase equipment,
1166 materials, or provide transportation; and
1167 (iii) that are part of an officially sanctioned school activity.
1168 (b) For purposes of Subsection [(35)] (41)(a)(iii), "officially sanctioned school activity"
1169 means a school activity:
1170 (i) that is conducted in accordance with a formal policy adopted by the school or school
1171 district governing the authorization and supervision of fundraising activities;
1172 (ii) that does not directly or indirectly compensate an individual teacher or other
1173 educational personnel by direct payment, commissions, or payment in kind; and
1174 (iii) the net or gross revenues from which are deposited in a dedicated account

1175 controlled by the school or school district.
1176 [(36)] (42) "Geothermal energy" means energy contained in heat that continuously
1177 flows outward from the earth that is used as the sole source of energy to produce electricity.
1178 [(37)] (43) "Governing board of the agreement" means the governing board of the
1179 agreement that is:
1180 (a) authorized to administer the agreement; and
1181 (b) established in accordance with the agreement.
1182 [(38)] (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
1183 means:
1184 (i) the executive branch of the state, including all departments, institutions, boards,
1185 divisions, bureaus, offices, commissions, and committees;
1186 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
1187 Office of the Court Administrator, and similar administrative units in the judicial branch;
1188 (iii) the legislative branch of the state, including the House of Representatives, the
1189 Senate, the Legislative Printing Office, the Office of Legislative Research and General
1190 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
1191 Analyst;
1192 (iv) the National Guard;
1193 (v) an independent entity as defined in Section 63E-1-102 ; or
1194 (vi) a political subdivision as defined in Section 17B-1-102 .
1195 (b) "Governmental entity" does not include the state systems of public and higher
1196 education, including:
1197 (i) a college campus of the Utah College of Applied Technology;
1198 (ii) a school;
1199 (iii) the State Board of Education;
1200 (iv) the State Board of Regents; or
1201 (v) a state institution of higher education as defined in Section 53B-3-102 .
1202 [(39) (a) "Hearing aid" means:]
1203 [(i) an instrument or device having an electronic component that is designed to:]
1204 [(A) (I) improve impaired human hearing; or]
1205 [(II) correct impaired human hearing; and]

1206 [(B) (I) be worn in the human ear; or]
1207 [(II) affixed behind the human ear;]
1208 [(ii) an instrument or device that is surgically implanted into the cochlea; or]
1209 [(iii) a telephone amplifying device.]
1210 [(b) "Hearing aid" does not include:]
1211 [(i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or
1212 device having an electronic component that is designed to be worn on the body;]
1213 [(ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or
1214 system designed to be used by one individual, including:]
1215 [(A) a personal amplifying system;]
1216 [(B) a personal FM system;]
1217 [(C) a television listening system; or]
1218 [(D) a device or system similar to a device or system described in Subsections
1219 (39)(b)(ii)(A) through (C); or]
1220 [(iii) an assistive listening device or system designed to be used by more than one
1221 individual, including:]
1222 [(A) a device or system installed in:]
1223 [(I) an auditorium;]
1224 [(II) a church;]
1225 [(III) a conference room;]
1226 [(IV) a synagogue; or]
1227 [(V) a theater; or]
1228 [(B) a device or system similar to a device or system described in Subsections
1229 (39)(b)(iii)(A)(I) through (V).]
1230 [(40) (a) "Hearing aid accessory" means a hearing aid:]
1231 [(i) component;]
1232 [(ii) attachment; or]
1233 [(iii) accessory.]
1234 [(b) "Hearing aid accessory" includes:]
1235 [(i) a hearing aid neck loop;]
1236 [(ii) a hearing aid cord;]

1237 [(iii) a hearing aid ear mold;]
1238 [(iv) hearing aid tubing;]
1239 [(v) a hearing aid ear hook; or]
1240 [(vi) a hearing aid remote control.]
1241 [(c) "Hearing aid accessory" does not include:]
1242 [(i) a component, attachment, or accessory designed to be used only with an:]
1243 [(A) instrument or device described in Subsection (39)(b)(i); or]
1244 [(B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or]
1245 [(ii) a hearing aid battery.]
1246 [(41)] (45) "Hydroelectric energy" means water used as the sole source of energy to
1247 produce electricity.
1248 [(42)] (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
1249 or other fuels:
1250 (a) in mining or extraction of minerals;
1251 (b) in agricultural operations to produce an agricultural product up to the time of
1252 harvest or placing the agricultural product into a storage facility, including:
1253 (i) commercial greenhouses;
1254 (ii) irrigation pumps;
1255 (iii) farm machinery;
1256 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
1257 registered under Title 41, Chapter 1a, Part 2, Registration; and
1258 (v) other farming activities;
1259 (c) in manufacturing tangible personal property at an establishment described in SIC
1260 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
1261 Executive Office of the President, Office of Management and Budget;
1262 (d) by a scrap recycler if:
1263 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1264 one or more of the following items into prepared grades of processed materials for use in new
1265 products:
1266 (A) iron;
1267 (B) steel;

1268 (C) nonferrous metal;
1269 (D) paper;
1270 (E) glass;
1271 (F) plastic;
1272 (G) textile; or
1273 (H) rubber; and
1274 (ii) the new products under Subsection [(42)] (46)(d)(i) would otherwise be made with
1275 nonrecycled materials; or
1276 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
1277 cogeneration facility as defined in Section 54-2-1 .
1278 [(43)] (47) (a) Except as provided in Subsection [(43)] (47)(b), "installation charge"
1279 means a charge for installing:
1280 (i) tangible personal property; or
1281 (ii) a product transferred electronically.
1282 (b) [Notwithstanding Subsection (43)(a), "installation] "Installation charge" does not
1283 include a charge for repairs or renovations of:
1284 (i) tangible personal property; or
1285 (ii) a product transferred electronically.
1286 [(44)] (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
1287 personal property or a product transferred electronically for:
1288 (i) (A) a fixed term; or
1289 (B) an indeterminate term; and
1290 (ii) consideration.
1291 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
1292 amount of consideration may be increased or decreased by reference to the amount realized
1293 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1294 Code.
1295 (c) "Lease" or "rental" does not include:
1296 (i) a transfer of possession or control of property under a security agreement or
1297 deferred payment plan that requires the transfer of title upon completion of the required
1298 payments;

1299 (ii) a transfer of possession or control of property under an agreement that requires the
1300 transfer of title:
1301 (A) upon completion of required payments; and
1302 (B) if the payment of an option price does not exceed the greater of:
1303 (I) $100; or
1304 (II) 1% of the total required payments; or
1305 (iii) providing tangible personal property along with an operator for a fixed period of
1306 time or an indeterminate period of time if the operator is necessary for equipment to perform as
1307 designed.
1308 (d) For purposes of Subsection [(44)] (48)(c)(iii), an operator is necessary for
1309 equipment to perform as designed if the operator's duties exceed the:
1310 (i) set-up of tangible personal property;
1311 (ii) maintenance of tangible personal property; or
1312 (iii) inspection of tangible personal property.
1313 [(45)] (49) "Load and leave" means delivery to a purchaser by use of a tangible storage
1314 media if the tangible storage media is not physically transferred to the purchaser.
1315 [(46)] (50) "Local taxing jurisdiction" means a:
1316 (a) county that is authorized to impose an agreement sales and use tax;
1317 (b) city that is authorized to impose an agreement sales and use tax; or
1318 (c) town that is authorized to impose an agreement sales and use tax.
1319 [(47)] (51) "Manufactured home" is as defined in Section 58-56-3 .
1320 [(48)] (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
1321 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
1322 Industrial Classification Manual of the federal Executive Office of the President, Office of
1323 Management and Budget;
1324 (b) a scrap recycler if:
1325 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1326 one or more of the following items into prepared grades of processed materials for use in new
1327 products:
1328 (A) iron;
1329 (B) steel;

1330 (C) nonferrous metal;
1331 (D) paper;
1332 (E) glass;
1333 (F) plastic;
1334 (G) textile; or
1335 (H) rubber; and
1336 (ii) the new products under Subsection [(48)] (52)(b)(i) would otherwise be made with
1337 nonrecycled materials; or
1338 (c) a cogeneration facility as defined in Section 54-2-1 .
1339 [(49)] (53) "Member of the immediate family of the producer" means a person who is
1340 related to a producer described in Subsection 59-12-104 (20)(a) as a:
1341 (a) child or stepchild, regardless of whether the child or stepchild is:
1342 (i) an adopted child or adopted stepchild; or
1343 (ii) a foster child or foster stepchild;
1344 (b) grandchild or stepgrandchild;
1345 (c) grandparent or stepgrandparent;
1346 (d) nephew or stepnephew;
1347 (e) niece or stepniece;
1348 (f) parent or stepparent;
1349 (g) sibling or stepsibling;
1350 (h) spouse;
1351 (i) person who is the spouse of a person described in Subsections [(49)] (53)(a) through
1352 (g); or
1353 (j) person similar to a person described in Subsections [(49)] (53)(a) through (i) as
1354 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1355 Administrative Rulemaking Act.
1356 [(50)] (54) "Mobile home" is as defined in Section 58-56-3 .
1357 [(51)] (55) "Mobile telecommunications service" is as defined in the Mobile
1358 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1359 (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
1360 the technology used, if:

1361 (i) the origination point of the conveyance, routing, or transmission is H. not .H fixed;
1362 (ii) the termination point of the conveyance, routing, or transmission is H. not .H fixed;
1362a or
1363 (iii) the origination point described in Subsection (56)(a)(i) and the termination point
1364 described in Subsection (56)(a)(ii) are H. not .H fixed.
1365 (b) "Mobile wireless service" includes a telecommunications service that is provided
1366 by a commercial mobile radio service provider.
1367 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1368 commission may by rule define "commercial mobile radio service provider."
1369 [(52)] (57) (a) Except as provided in Subsection [(52)] (57)(c), "mobility enhancing
1370 equipment" means equipment that is:
1371 (i) primarily and customarily used to provide or increase the ability to move from one
1372 place to another;
1373 (ii) appropriate for use in a:
1374 (A) home; or
1375 (B) motor vehicle; and
1376 (iii) not generally used by persons with normal mobility.
1377 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1378 the equipment described in Subsection [(52)] (57)(a).
1379 (c) Notwithstanding Subsection [(52)] (57)(a), "mobility enhancing equipment" does
1380 not include:
1381 (i) a motor vehicle;
1382 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1383 vehicle manufacturer;
1384 (iii) durable medical equipment; or
1385 (iv) a prosthetic device.
1386 [(53)] (58) "Model 1 seller" means a seller that has selected a certified service provider
1387 as the seller's agent to perform all of the seller's sales and use tax functions for agreement sales
1388 and use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
1389 seller's own purchases.
1390 [(54)] (59) "Model 2 seller" means a seller that:
1391 (a) except as provided in Subsection [(54)] (59)(b), has selected a certified automated

1392 system to perform the seller's sales tax functions for agreement sales and use taxes; and
1393 (b) notwithstanding Subsection [(54)] (59)(a), retains responsibility for remitting all of
1394 the sales tax:
1395