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H.B. 251
This document includes House Committee Amendments incorporated into the bill on Mon,
Jan 28, 2008 at 1:36 PM by jeyring. -->
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SALES AND USE TAX REVISIONS
2
2008 GENERAL SESSION
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STATE OF UTAH
4
Chief Sponsor: John Dougall
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Senate Sponsor:
Wayne L. Niederhauser
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7
LONG TITLE
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General Description:
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This bill amends the Sales and Use Tax Act.
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Highlighted Provisions:
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This bill:
12
. repeals certain dates relating to the taxation of food and food ingredients;
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. modifies a sales and use tax exemption relating to sales of aircraft manufactured in
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the state;
14a
H. . modifies the sales and use tax exemption to which public transit districts and their
14b
subcontractors are entitled; .H
15
. modifies requirements for calculating the use tax for purposes of a sales and use tax
16
return filed quarterly;
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. clarifies that a county, city, or town within a transit district may impose a sales and
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use tax of up to .25% to fund a public transportation system if within the county,
19
city, or town a sales and use tax is also imposed under Title 59, Chapter 12, Part 15,
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County Option Sales and Use Tax for Highways, Fixed Guideways, or Systems for
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Public Transit; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides an immediate effective date and provides for retrospective operation.
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Utah Code Sections Affected:
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AMENDS:
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59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
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59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
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295, and 329
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59-12-107, as last amended by Laws of Utah 2006, Chapter 253
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59-12-501, as last amended by Laws of Utah 2007, Chapters 202, 288, and 329
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-12-103
is amended to read:
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59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
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tax revenues.
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(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
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charged for the following transactions:
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(a) retail sales of tangible personal property made within the state;
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(b) amounts paid:
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(i) to a:
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(A) telephone service provider regardless of whether the telephone service provider is
45
municipally or privately owned; or
46
(B) telegraph corporation:
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(I) as defined in Section
54-2-1
; and
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(II) regardless of whether the telegraph corporation is municipally or privately owned;
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and
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(ii) for:
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(A) telephone service, other than mobile telecommunications service, that originates
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and terminates within the boundaries of this state;
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(B) mobile telecommunications service that originates and terminates within the
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boundaries of one state only to the extent permitted by the Mobile Telecommunications
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Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
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(C) telegraph service;
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(c) sales of the following for commercial use:
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(i) gas;
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(ii) electricity;
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(iii) heat;
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(iv) coal;
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(v) fuel oil; or
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(vi) other fuels;
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(d) sales of the following for residential use:
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(i) gas;
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(ii) electricity;
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(iii) heat;
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(iv) coal;
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(v) fuel oil; or
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(vi) other fuels;
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(e) sales of prepared food;
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(f) except as provided in Section
59-12-104
, amounts paid or charged as admission or
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user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
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exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
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fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
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television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
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driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
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tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
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horseback rides, sports activities, or any other amusement, entertainment, recreation,
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exhibition, cultural, or athletic activity;
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(g) amounts paid or charged for services for repairs or renovations of tangible personal
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property, unless Section
59-12-104
provides for an exemption from sales and use tax for:
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(i) the tangible personal property; and
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(ii) parts used in the repairs or renovations of the tangible personal property described
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in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
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of that tangible personal property;
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(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for
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assisted cleaning or washing of tangible personal property;
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(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
90
accommodations and services that are regularly rented for less than 30 consecutive days;
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(j) amounts paid or charged for laundry or dry cleaning services;
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(k) amounts paid or charged for leases or rentals of tangible personal property if within
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this state the tangible personal property is:
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(i) stored;
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(ii) used; or
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(iii) otherwise consumed;
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(l) amounts paid or charged for tangible personal property if within this state the
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tangible personal property is:
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(i) stored;
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(ii) used; or
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(iii) consumed; and
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(m) amounts paid or charged for prepaid telephone calling cards.
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(2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
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is imposed on a transaction described in Subsection (1) equal to the sum of:
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(i) a state tax imposed on the transaction at a tax rate of 4.65%; and
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(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
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transaction under this chapter other than this part.
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(b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
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on a transaction described in Subsection (1)(d) equal to the sum of:
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(i) a state tax imposed on the transaction at a tax rate of 2%; and
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(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
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transaction under this chapter other than this part.
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(c) Except as provided in Subsection (2)(d) or (e), [beginning on January 1, 2007,] a
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state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
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equal to the sum of:
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(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
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a tax rate of 1.75%; and
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(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
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amounts paid or charged for food and food ingredients under this chapter other than this part.
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(d) Except as provided in Subsection (2)(e), if a seller collects a tax in accordance with
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Subsection
59-12-107
(1)(b) on a transaction described in Subsection (1), a state tax and a local
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tax is imposed on the transaction equal to the sum of:
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(i) a state tax imposed on the transaction at a tax rate of:
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(A) 4.65% for a transaction other than a transaction described in Subsection
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(2)(d)(i)(B) or (2)(d)(i)(C);
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(B) 2% for a transaction described in Subsection (1)(d); or
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(C) [beginning on January 1, 2007,] 1.75% on the amounts paid or charged for food
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and food ingredients; and
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(ii) a local tax imposed on the transaction at a tax rate equal to the sum of the following
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tax rates:
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(A) the tax rate authorized by Section
59-12-204
, but only if all of the counties, cities,
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and towns in the state impose the tax authorized by Section
59-12-204
; and
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(B) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
134
state impose the tax authorized by Section
59-12-1102
.
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(e) (i) A state tax and a local tax is imposed on an entire bundled transaction as
136
provided in this Subsection (2)(e) if the bundled transaction is attributable to food and food
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ingredients and tangible personal property other than food and food ingredients.
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(ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
139
seller other than a seller that collects a tax in accordance with Subsection
59-12-107
(1)(b),
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beginning on January 1, 2007, a state tax and a local tax is imposed on the entire bundled
141
transaction equal to the sum of:
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(A) a state tax imposed on the entire bundled transaction at the tax rate described in
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Subsection (2)(a)(i); and
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(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
145
described in Subsection (2)(a)(ii).
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(iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
147
a seller in accordance with Subsection
59-12-107
(1)(b), beginning on January 1, 2007, a state
148
tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
149
(A) a state tax imposed on the entire bundled transaction at the tax rate described in
150
Subsection (2)(d)(i)(A); and
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(B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
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of the following tax rates:
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(I) the tax rate authorized by Section
59-12-204
, but only if all of the counties, cities,
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and towns in the state impose the tax authorized by Section
59-12-204
; and
155
(II) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
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state impose the tax authorized by Section
59-12-1102
.
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(f) Subject to Subsections (2)(g) and (h), a tax rate repeal or tax rate change for a tax
158
rate imposed under the following shall take effect on the first day of a calendar quarter:
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(i) Subsection (2)(a)(i);
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(ii) Subsection (2)(b)(i);
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(iii) Subsection (2)(c)(i);
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(iv) Subsection (2)(d)(i);
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(v) Subsection (2)(e)(ii)(A); or
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(vi) Subsection (2)(e)(iii)(A).
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(g) (i) For a transaction described in Subsection (2)(g)(iii), a tax rate increase shall take
166
effect on the first day of the first billing period that begins after the effective date of the tax rate
167
increase if the billing period for the transaction begins before the effective date of a tax rate
168
increase imposed under:
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(A) Subsection (2)(a)(i);
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(B) Subsection (2)(b)(i);
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(C) Subsection (2)(c)(i);
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(D) Subsection (2)(d)(i);
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(E) Subsection (2)(e)(ii)(A); or
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(F) Subsection (2)(e)(iii)(A).
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(ii) For a transaction described in Subsection (2)(g)(iii), the repeal of a tax or a tax rate
176
decrease shall take effect on the first day of the last billing period that began before the
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effective date of the repeal of the tax or the tax rate decrease if the billing period for the
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transaction begins before the effective date of the repeal of the tax or the tax rate decrease
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imposed under:
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(A) Subsection (2)(a)(i);
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(B) Subsection (2)(b)(i);
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(C) Subsection (2)(c)(i);
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(D) Subsection (2)(d)(i);
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(E) Subsection (2)(e)(ii)(A); or
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(F) Subsection (2)(e)(iii)(A).
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(iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:
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(A) Subsection (1)(b);
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(B) Subsection (1)(c);
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(C) Subsection (1)(d);
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(D) Subsection (1)(e);
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(E) Subsection (1)(f);
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(F) Subsection (1)(g);
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(G) Subsection (1)(h);
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(H) Subsection (1)(i);
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(I) Subsection (1)(j); or
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(J) Subsection (1)(k).
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(h) (i) For a tax rate described in Subsection (2)(h)(ii), if a tax due on a catalogue sale
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is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
199
or change in a tax rate takes effect:
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(A) on the first day of a calendar quarter; and
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(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
202
(ii) Subsection (2)(h)(i) applies to the tax rates described in the following:
203
(A) Subsection (2)(a)(i);
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(B) Subsection (2)(b)(i);
205
(C) Subsection (2)(c)(i);
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(D) Subsection (2)(d)(i);
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(E) Subsection (2)(e)(ii)(A); or
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(F) Subsection (2)(e)(iii)(A).
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(iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
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the commission may by rule define the term "catalogue sale."
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(3) (a) Except as provided in Subsections (4) through (10), the following state taxes
212
shall be deposited into the General Fund:
213
(i) the tax imposed by Subsection (2)(a)(i);
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(ii) the tax imposed by Subsection (2)(b)(i);
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(iii) the tax imposed by Subsection (2)(c)(i);
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(iv) the tax imposed by Subsection (2) (d)(i);
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(v) the tax imposed by Subsection (2)(e)(ii)(A); and
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(vi) the tax imposed by Subsection (2)(e)(iii)(A).
219
(b) The following local taxes shall be distributed to a county, city, or town as provided
220
in this chapter:
221
(i) the tax imposed by Subsection (2)(a)(ii);
222
(ii) the tax imposed by Subsection (2)(b)(ii);
223
(iii) the tax imposed by Subsection (2)(c)(ii); and
224
(iv) the tax imposed by Subsection (2)(e)(ii)(B).
225
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
226
state shall receive the county's, city's, or town's proportionate share of the revenues generated
227
by the following local taxes as provided in Subsection (3)(c)(ii):
228
(A) the local tax described in Subsection (2)(d)(ii); and
229
(B) the local tax described in Subsection (2)(e)(iii)(B).
230
(ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
231
shall determine a county's, city's, or town's proportionate share of the revenues by:
232
(A) calculating an amount equal to the population of the unincorporated area of the
233
county, city, or town divided by the total population of the state; and
234
(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
235
amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
236
cities, and towns.
237
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
238
purposes of this section shall be derived from the most recent official census or census estimate
239
of the United States Census Bureau.
240
(B) If a needed population estimate is not available from the United States Census
241
Bureau, population figures shall be derived from the estimate from the Utah Population
242
Estimates Committee created by executive order of the governor.
243
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
244
2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
245
through (g):
246
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
247
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
248
(B) for the fiscal year; or
249
(ii) $17,500,000.
250
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
251
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
252
Department of Natural Resources to:
253
(A) implement the measures described in Subsections
63-34-14
(4)(a) through (d) to
254
protect sensitive plant and animal species; or
255
(B) award grants, up to the amount authorized by the Legislature in an appropriations
256
act, to political subdivisions of the state to implement the measures described in Subsections
257
63-34-14
(4)(a) through (d) to protect sensitive plant and animal species.
258
(ii) Money transferred to the Department of Natural Resources under Subsection
259
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
260
person to list or attempt to have listed a species as threatened or endangered under the
261
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
262
(iii) At the end of each fiscal year:
263
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
264
Conservation and Development Fund created in Section
73-10-24
;
265
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
266
Program Subaccount created in Section
73-10c-5
; and
267
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
268
Program Subaccount created in Section
73-10c-5
.
269
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
270
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
271
created in Section
4-18-6
.
272
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
273
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
274
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
275
water rights.
276
(ii) At the end of each fiscal year:
277
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
278
Conservation and Development Fund created in Section
73-10-24
;
279
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
280
Program Subaccount created in Section
73-10c-5
; and
281
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
282
Program Subaccount created in Section
73-10c-5
.
283
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
284
in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
285
Fund created in Section
73-10-24
for use by the Division of Water Resources.
286
(ii) In addition to the uses allowed of the Water Resources Conservation and
287
Development Fund under Section
73-10-24
, the Water Resources Conservation and
288
Development Fund may also be used to:
289
(A) conduct hydrologic and geotechnical investigations by the Division of Water
290
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
291
quantifying surface and ground water resources and describing the hydrologic systems of an
292
area in sufficient detail so as to enable local and state resource managers to plan for and
293
accommodate growth in water use without jeopardizing the resource;
294
(B) fund state required dam safety improvements; and
295
(C) protect the state's interest in interstate water compact allocations, including the
296
hiring of technical and legal staff.
297
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
298
in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
299
created in Section
73-10c-5
for use by the Water Quality Board to fund wastewater projects.
300
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
301
in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
302
created in Section
73-10c-5
for use by the Division of Drinking Water to:
303
(i) provide for the installation and repair of collection, treatment, storage, and
304
distribution facilities for any public water system, as defined in Section
19-4-102
;
305
(ii) develop underground sources of water, including springs and wells; and
306
(iii) develop surface water sources.
307
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
308
2006, the difference between the following amounts shall be expended as provided in this
309
Subsection (5), if that difference is greater than $1:
310
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
311
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
312
(ii) $17,500,000.
313
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
314
(A) transferred each fiscal year to the Department of Natural Resources as dedicated
315
credits; and
316
(B) expended by the Department of Natural Resources for watershed rehabilitation or
317
restoration.
318
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
319
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
320
created in Section
73-10-24
.
321
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
322
remaining difference described in Subsection (5)(a) shall be:
323
(A) transferred each fiscal year to the Division of Water Resources as dedicated
324
credits; and
325
(B) expended by the Division of Water Resources for cloud-seeding projects
326
authorized by Title 73, Chapter 15, Modification of Weather.
327
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
328
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
329
created in Section
73-10-24
.
330
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
331
remaining difference described in Subsection (5)(a) shall be deposited into the Water
332
Resources Conservation and Development Fund created in Section
73-10-24
for use by the
333
Division of Water Resources for:
334
(i) preconstruction costs:
335
(A) as defined in Subsection
73-26-103
(6) for projects authorized by Title 73, Chapter
336
26, Bear River Development Act; and
337
(B) as defined in Subsection
73-28-103
(8) for the Lake Powell Pipeline project
338
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
339
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
340
Chapter 26, Bear River Development Act;
341
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
342
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
343
(iv) other uses authorized under Sections
73-10-24
,
73-10-25.1
,
73-10-30
, and
344
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
345
(e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
346
Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
347
(f) After making the transfers required by Subsections (5)(b) and (c) and subject to
348
Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
349
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
350
incurred for employing additional technical staff for the administration of water rights.
351
(g) At the end of each fiscal year, any unexpended dedicated credits described in
352
Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
353
Fund created in Section
73-10-24
.
354
(6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
355
2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
356
tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
357
the Transportation Fund created by Section
72-2-102
.
358
(7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
359
beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
360
Highway Fund Restricted Account created in Section
72-2-118
a portion of the taxes listed
361
under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
362
transactions under Subsection (1).
363
(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
364
have been paid off and the highway projects completed that are intended to be paid from
365
revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
366
Executive Appropriations Committee under Subsection
72-2-118
(6)(d), the Division of
367
Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
368
72-2-124
a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
369
by a 1/64% tax rate on the taxable transactions under Subsection (1).
370
(8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
371
year 2004-05, the commission shall each year on or before the September 30 immediately
372
following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
373
into the Remote Sales Restricted Account created in Section
59-12-103.2
if that difference is
374
greater than $0.
375
(b) The difference described in Subsection (8)(a) is equal to the difference between:
376
(i) the total amount of the revenues the commission received from sellers collecting the
377
taxes described in Subsections (2)(d)(i) and (2)(e)(iii)(A) for the fiscal year immediately
378
preceding the September 30 described in Subsection (8)(a); and
379
(ii) $7,279,673.
380
(9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
381
Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after
382
July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
383
Restricted Account created by Section
72-2-118
a portion of the taxes listed under Subsection
384
(3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
385
portion of the approximately 17% of sales and use tax revenues generated annually by the sales
386
and use tax on vehicles and vehicle-related products:
387
(i) the tax imposed by Subsection (2)(a)(i);
388
(ii) the tax imposed by Subsection (2)(b)(i);
389
(iii) the tax imposed by Subsection (2)(c)(i); and
390
(iv) the tax imposed by Subsection (2)(e)(ii)(A).
391
(b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
392
Subsection (7)(b), when the highway general obligation bonds have been paid off and the
393
highway projects completed that are intended to be paid from revenues deposited in the
394
Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
395
Committee under Subsection
72-2-118
(6)(d), the Division of Finance shall deposit into the
396
Transportation Investment Fund of 2005 created by Section
72-2-124
a portion of the taxes
397
listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
398
which represents a portion of the approximately 17% of sales and use tax revenues generated
399
annually by the sales and use tax on vehicles and vehicle-related products:
400
(i) the tax imposed by Subsection (2)(a)(i);
401
(ii) the tax imposed by Subsection (2)(b)(i);
402
(iii) the tax imposed by Subsection (2)(c)(i); and
403
(iv) the tax imposed by Subsection (2)(e)(ii)(A).
404
(10) (a) Notwithstanding Subsection (3)(a) and until Subsection (10)(b) applies, the
405
Division of Finance shall annually deposit $90,000,000 of the revenues generated by the taxes
406
listed under Subsection (3)(a) into the Critical Highway Needs Fund created by Section
407
72-2-125
.
408
(b) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
409
Subsections (7) and (9), when the general obligation bonds authorized by Section
63B-16-101
410
have been paid off and the highway projects completed that are included in the prioritized
411
project list under Subsection
72-2-125
(4) as determined in accordance with Subsection
412
72-2-125
(6), the Division of Finance shall annually deposit $90,000,000 of the revenues
413
generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
414
of 2005 created by Section
72-2-124
.
415
Section 2.
Section
59-12-104
is amended to read:
416
59-12-104. Exemptions.
417
The following sales and uses are exempt from the taxes imposed by this chapter:
418
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
419
under Chapter 13, Motor and Special Fuel Tax Act;
420
(2) sales to the state, its institutions, and its political subdivisions; however, this
421
exemption does not apply to sales of:
422
(a) construction materials except:
423
(i) construction materials purchased by or on behalf of institutions of the public
424
education system as defined in Utah Constitution Article X, Section 2, provided the
425
construction materials are clearly identified and segregated and installed or converted to real
426
property which is owned by institutions of the public education system; and
427
(ii) construction materials purchased by the state, its institutions, or its political
428
subdivisions which are installed or converted to real property by employees of the state, its
429
institutions, or its political subdivisions; or
430
(b) tangible personal property in connection with the construction, operation,
431
maintenance, repair, or replacement of a project, as defined in Section
11-13-103
, or facilities
432
providing additional project capacity, as defined in Section
11-13-103
;
433
(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
434
(i) the proceeds of each sale do not exceed $1; and
435
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
436
the cost of the item described in Subsection (3)(b) as goods consumed; and
437
(b) Subsection (3)(a) applies to:
438
(i) food and food ingredients; or
439
(ii) prepared food;
440
(4) sales of the following to a commercial airline carrier for in-flight consumption:
441
(a) food and food ingredients;
442
(b) prepared food; or
443
(c) services related to Subsection (4)(a) or (b);
444
(5) sales of parts and equipment for installation in aircraft operated by common carriers
445
in interstate or foreign commerce;
446
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
447
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
448
exhibitor, distributor, or commercial television or radio broadcaster;
449
(7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
450
property if the cleaning or washing of the tangible personal property is not assisted cleaning or
451
washing of tangible personal property;
452
(b) if a seller that sells at the same business location assisted cleaning or washing of
453
tangible personal property and cleaning or washing of tangible personal property that is not
454
assisted cleaning or washing of tangible personal property, the exemption described in
455
Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
456
or washing of the tangible personal property; and
457
(c) for purposes of Subsection (7)(b) and in accordance with Title 63, Chapter 46a,
458
Utah Administrative Rulemaking Act, the commission may make rules:
459
(i) governing the circumstances under which sales are at the same business location;
460
and
461
(ii) establishing the procedures and requirements for a seller to separately account for
462
sales of assisted cleaning or washing of tangible personal property;
463
(8) sales made to or by religious or charitable institutions in the conduct of their regular
464
religious or charitable functions and activities, if the requirements of Section
59-12-104.1
are
465
fulfilled;
466
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
467
this state if the vehicle is:
468
(a) not registered in this state; and
469
(b) (i) not used in this state; or
470
(ii) used in this state:
471
(A) if the vehicle is not used to conduct business, for a time period that does not
472
exceed the longer of:
473
(I) 30 days in any calendar year; or
474
(II) the time period necessary to transport the vehicle to the borders of this state; or
475
(B) if the vehicle is used to conduct business, for the time period necessary to transport
476
the vehicle to the borders of this state;
477
(10) (a) amounts paid for an item described in Subsection (10)(b) if:
478
(i) the item is intended for human use; and
479
(ii) (A) a prescription was issued for the item; or
480
(B) the item was purchased by a hospital or other medical facility; and
481
(b) (i) Subsection (10)(a) applies to:
482
(A) a drug;
483
(B) a syringe; or
484
(C) a stoma supply; and
485
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
486
commission may by rule define the terms:
487
(A) "syringe"; or
488
(B) "stoma supply";
489
(11) sales or use of property, materials, or services used in the construction of or
490
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
491
(12) (a) sales of an item described in Subsection (12)(c) served by:
492
(i) the following if the item described in Subsection (12)(c) is not available to the
493
general public:
494
(A) a church; or
495
(B) a charitable institution;
496
(ii) an institution of higher education if:
497
(A) the item described in Subsection (12)(c) is not available to the general public; or
498
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
499
offered by the institution of higher education; or
500
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
501
(i) a medical facility; or
502
(ii) a nursing facility; and
503
(c) Subsections (12)(a) and (b) apply to:
504
(i) food and food ingredients;
505
(ii) prepared food; or
506
(iii) alcoholic beverages;
507
(13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
508
by a person:
509
(i) regardless of the number of transactions involving the sale of that tangible personal
510
property by that person; and
511
(ii) not regularly engaged in the business of selling that type of tangible personal
512
property;
513
(b) this Subsection (13) does not apply if:
514
(i) the sale is one of a series of sales of a character to indicate that the person is
515
regularly engaged in the business of selling that type of tangible personal property;
516
(ii) the person holds that person out as regularly engaged in the business of selling that
517
type of tangible personal property;
518
(iii) the person sells an item of tangible personal property that the person purchased as
519
a sale that is exempt under Subsection (25); or
520
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
521
this state in which case the tax is based upon:
522
(A) the bill of sale or other written evidence of value of the vehicle or vessel being
523
sold; or
524
(B) in the absence of a bill of sale or other written evidence of value, the fair market
525
value of the vehicle or vessel being sold at the time of the sale as determined by the
526
commission; and
527
(c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
528
commission shall make rules establishing the circumstances under which:
529
(i) a person is regularly engaged in the business of selling a type of tangible personal
530
property;
531
(ii) a sale of tangible personal property is one of a series of sales of a character to
532
indicate that a person is regularly engaged in the business of selling that type of tangible
533
personal property; or
534
(iii) a person holds that person out as regularly engaged in the business of selling a type
535
of tangible personal property;
536
(14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
537
July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
538
facility, for the following:
539
(i) machinery and equipment that:
540
(A) is used:
541
(I) for a manufacturing facility other than a manufacturing facility that is a scrap
542
recycler described in Subsection
59-12-102
(48)(b):
543
(Aa) in the manufacturing process; and
544
(Bb) to manufacture an item sold as tangible personal property; or
545
(II) for a manufacturing facility that is a scrap recycler described in Subsection
546
59-12-102
(48)(b), to process an item sold as tangible personal property; and
547
(B) has an economic life of three or more years; and
548
(ii) normal operating repair or replacement parts that:
549
(A) have an economic life of three or more years; and
550
(B) are used:
551
(I) for a manufacturing facility in the state other than a manufacturing facility that is a
552
scrap recycler described in Subsection
59-12-102
(48)(b), in the manufacturing process; or
553
(II) for a manufacturing facility in the state that is a scrap recycler described in
554
Subsection
59-12-102
(48)(b), to process an item sold as tangible personal property;
555
(b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
556
manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
557
for the following:
558
(A) machinery and equipment that:
559
(I) is used:
560
(Aa) in the manufacturing process; and
561
(Bb) to manufacture an item sold as tangible personal property; and
562
(II) has an economic life of three or more years; and
563
(B) normal operating repair or replacement parts that:
564
(I) are used in the manufacturing process in a manufacturing facility in the state; and
565
(II) have an economic life of three or more years; and
566
(ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
567
2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
568
claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
569
(A) for sales and use taxes paid under this chapter on the purchase or lease payment;
570
and
571
(B) in accordance with Section
59-12-110
;
572
(c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
573
by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
574
NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
575
Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
576
of the 2002 North American Industry Classification System of the federal Executive Office of
577
the President, Office of Management and Budget:
578
(i) machinery and equipment that:
579
(A) are used in:
580
(I) the production process, other than the production of real property; or
581
(II) research and development; and
582
(B) have an economic life of three or more years; and
583
(ii) normal operating repair or replacement parts that:
584
(A) have an economic life of three or more years; and
585
(B) are used in:
586
(I) the production process, other than the production of real property, in an
587
establishment described in this Subsection (14)(c) in the state; or
588
(II) research and development in an establishment described in this Subsection (14)(c)
589
in the state;
590
(d) for purposes of this Subsection (14) and in accordance with Title 63, Chapter 46a,
591
Utah Administrative Rulemaking Act, the commission:
592
(i) shall by rule define the term "establishment"; and
593
(ii) may by rule define what constitutes:
594
(A) processing an item sold as tangible personal property;
595
(B) the production process, other than the production of real property; or
596
(C) research and development; and
597
(e) on or before October 1, 2011, and every five years after October 1, 2011, the
598
commission shall:
599
(i) review the exemptions described in this Subsection (14) and make
600
recommendations to the Revenue and Taxation Interim Committee concerning whether the
601
exemptions should be continued, modified, or repealed; and
602
(ii) include in its report:
603
(A) the cost of the exemptions;
604
(B) the purpose and effectiveness of the exemptions; and
605
(C) the benefits of the exemptions to the state;
606
(15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
607
(i) tooling;
608
(ii) special tooling;
609
(iii) support equipment;
610
(iv) special test equipment; or
611
(v) parts used in the repairs or renovations of tooling or equipment described in
612
Subsections (15)(a)(i) through (iv); and
613
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
614
(i) the tooling, equipment, or parts are used or consumed exclusively in the
615
performance of any aerospace or electronics industry contract with the United States
616
government or any subcontract under that contract; and
617
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
618
title to the tooling, equipment, or parts is vested in the United States government as evidenced
619
by:
620
(A) a government identification tag placed on the tooling, equipment, or parts; or
621
(B) listing on a government-approved property record if placing a government
622
identification tag on the tooling, equipment, or parts is impractical;
623
(16) sales of newspapers or newspaper subscriptions;
624
(17) (a) except as provided in Subsection (17)(b), tangible personal property traded in
625
as full or part payment of the purchase price, except that for purposes of calculating sales or use
626
tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and
627
the tax is based upon:
628
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
629
vehicle being traded in; or
630
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
631
fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
632
commission; and
633
(b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
634
following items of tangible personal property traded in as full or part payment of the purchase
635
price:
636
(i) money;
637
(ii) electricity;
638
(iii) water;
639
(iv) gas; or
640
(v) steam;
641
(18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
642
used or consumed primarily and directly in farming operations, regardless of whether the
643
tangible personal property:
644
(A) becomes part of real estate; or
645
(B) is installed by a:
646
(I) farmer;
647
(II) contractor; or
648
(III) subcontractor; or
649
(ii) sales of parts used in the repairs or renovations of tangible personal property if the
650
tangible personal property is exempt under Subsection (18)(a)(i); and
651
(b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
652
tangible personal property are subject to the taxes imposed by this chapter:
653
(i) (A) subject to Subsection (18)(b)(i)(B), the following tangible personal property if
654
the tangible personal property is used in a manner that is incidental to farming:
655
(I) machinery;
656
(II) equipment;
657
(III) materials; or
658
(IV) supplies; and
659
(B) tangible personal property that is considered to be used in a manner that is
660
incidental to farming includes:
661
(I) hand tools; or
662
(II) maintenance and janitorial equipment and supplies;
663
(ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property if the tangible
664
personal property is used in an activity other than farming; and
665
(B) tangible personal property that is considered to be used in an activity other than
666
farming includes:
667
(I) office equipment and supplies; or
668
(II) equipment and supplies used in:
669
(Aa) the sale or distribution of farm products;
670
(Bb) research; or
671
(Cc) transportation; or
672
(iii) a vehicle required to be registered by the laws of this state during the period
673
ending two years after the date of the vehicle's purchase;
674
(19) sales of hay;
675
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
676
garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
677
garden, farm, or other agricultural produce is sold by:
678
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
679
agricultural produce;
680
(b) an employee of the producer described in Subsection (20)(a); or
681
(c) a member of the immediate family of the producer described in Subsection (20)(a);
682
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
683
under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
684
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
685
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
686
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
687
manufacturer, processor, wholesaler, or retailer;
688
(23) property stored in the state for resale;
689
(24) (a) purchases of property if:
690
(i) the property is:
691
(A) purchased outside of this state;
692
(B) brought into this state:
693
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
694
(II) by a nonresident person who is not living or working in this state at the time of the
695
purchase;
696
(C) used for the personal use or enjoyment of the nonresident person described in
697
Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
698
(D) not used in conducting business in this state; and
699
(ii) for:
700
(A) property other than the property described in Subsection (24)(a)(ii)(B), the first use
701
of the property for a purpose for which the property is designed occurs outside of this state;
702
(B) a boat, the boat is registered outside of this state; or
703
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
704
outside of this state;
705
(b) the exemption provided for in Subsection (24)(a) does not apply to:
706
(i) a lease or rental of property; or
707
(ii) a sale of a vehicle exempt under Subsection (33); and
708
(c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
709
purposes of Subsection (24)(a), the commission may by rule define what constitutes the
710
following:
711
(i) conducting business in this state if that phrase has the same meaning in this
712
Subsection (24) as in Subsection (66);
713
(ii) the first use of property if that phrase has the same meaning in this Subsection (24)
714
as in Subsection (66); or
715
(iii) a purpose for which property is designed if that phrase has the same meaning in
716
this Subsection (24) as in Subsection (66);
717
(25) property purchased for resale in this state, in the regular course of business, either
718
in its original form or as an ingredient or component part of a manufactured or compounded
719
product;
720
(26) property upon which a sales or use tax was paid to some other state, or one of its
721
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
722
imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
723
the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
724
Act;
725
(27) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a
726
person for use in compounding a service taxable under the subsections;
727
(28) purchases made in accordance with the special supplemental nutrition program for
728
women, infants, and children established in 42 U.S.C. Sec. 1786;
729
(29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
730
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
731
of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
732
Manual of the federal Executive Office of the President, Office of Management and Budget;
733
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
734
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
735
(a) not registered in this state; and
736
(b) (i) not used in this state; or
737
(ii) used in this state:
738
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
739
time period that does not exceed the longer of:
740
(I) 30 days in any calendar year; or
741
(II) the time period necessary to transport the boat, boat trailer, or outboard motor to
742
the borders of this state; or
743
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
744
period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
745
state;
746
(31) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
747
where a sales or use tax is not imposed, [even] if the title is passed in Utah;
748
(32) amounts paid for the purchase of telephone service for purposes of providing
749
telephone service;
750
(33) sales, leases, or uses of the following:
751
(a) a vehicle by an authorized carrier; or
752
(b) tangible personal property that is installed on a vehicle:
753
(i) sold or leased to or used by an authorized carrier; and
754
(ii) before the vehicle is placed in service for the first time;
755
(34) (a) 45% of the sales price of any new manufactured home; and
756
(b) 100% of the sales price of any used manufactured home;
757
(35) sales relating to schools and fundraising sales;
758
(36) sales or rentals of durable medical equipment if:
759
(a) a person presents a prescription for the durable medical equipment; and
760
(b) the durable medical equipment is used for home use only;
761
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
762
Section
72-11-102
; and
763
(b) the commission shall by rule determine the method for calculating sales exempt
764
under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
765
(38) sales to a ski resort of:
766
(a) snowmaking equipment;
767
(b) ski slope grooming equipment;
768
(c) passenger ropeways as defined in Section
72-11-102
; or
769
(d) parts used in the repairs or renovations of equipment or passenger ropeways
770
described in Subsections (38)(a) through (c);
771
(39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
772
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
773
amusement, entertainment, or recreation an unassisted amusement device as defined in Section
774
59-12-102
;
775
(b) if a seller that sells or rents at the same business location the right to use or operate
776
for amusement, entertainment, or recreation one or more unassisted amusement devices and
777
one or more assisted amusement devices, the exemption described in Subsection (40)(a)
778
applies if the seller separately accounts for the sales or rentals of the right to use or operate for
779
amusement, entertainment, or recreation for the assisted amusement devices; and
780
(c) for purposes of Subsection (40)(b) and in accordance with Title 63, Chapter 46a,
781
Utah Administrative Rulemaking Act, the commission may make rules:
782
(i) governing the circumstances under which sales are at the same business location;
783
and
784
(ii) establishing the procedures and requirements for a seller to separately account for
785
the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
786
assisted amusement devices;
787
(41) (a) sales of photocopies by:
788
(i) a governmental entity; or
789
(ii) an entity within the state system of public education, including:
790
(A) a school; or
791
(B) the State Board of Education; or
792
(b) sales of publications by a governmental entity;
793
(42) amounts paid for admission to an athletic event at an institution of higher
794
education that is subject to the provisions of Title IX of the Education Amendments of 1972,
795
20 U.S.C. Sec. 1681 et seq.;
796
(43) sales of telephone service charged to a prepaid telephone calling card;
797
(44) (a) sales of:
798
(i) hearing aids;
799
(ii) hearing aid accessories; or
800
(iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations
801
of hearing aids or hearing aid accessories; and
802
(b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii),
803
"parts" does not include batteries;
804
(45) (a) sales made to or by:
805
(i) an area agency on aging; or
806
(ii) a senior citizen center owned by a county, city, or town; or
807
(b) sales made by a senior citizen center that contracts with an area agency on aging;
808
(46) sales or leases of semiconductor fabricating, processing, research, or development
809
materials regardless of whether the semiconductor fabricating, processing, research, or
810
development materials:
811
(a) actually come into contact with a semiconductor; or
812
(b) ultimately become incorporated into real property;
813
(47) an amount paid by or charged to a purchaser for accommodations and services
814
described in Subsection
59-12-103
(1)(i) to the extent the amount is exempt under Section
815
59-12-104.2
;
816
(48) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
817
sports event registration certificate in accordance with Section
41-3-306
for the event period
818
specified on the temporary sports event registration certificate;
819
(49) sales or uses of electricity, if the sales or uses are:
820
(a) made under a tariff adopted by the Public Service Commission of Utah only for
821
purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
822
source, as designated in the tariff by the Public Service Commission of Utah; and
823
(b) for an amount of electricity that is:
824
(i) unrelated to the amount of electricity used by the person purchasing the electricity
825
under the tariff described in Subsection (49)(a); and
826
(ii) equivalent to the number of kilowatthours specified in the tariff described in
827
Subsection (49)(a) that may be purchased under the tariff described in Subsection (49)(a);
828
(50) sales or rentals of mobility enhancing equipment if a person presents a
829
prescription for the mobility enhancing equipment;
830
(51) sales of water in a:
831
(a) pipe;
832
(b) conduit;
833
(c) ditch; or
834
(d) reservoir;
835
(52) sales of currency or coinage that constitute legal tender of the United States or of a
836
foreign nation;
837
(53) (a) sales of an item described in Subsection (53)(b) if the item:
838
(i) does not constitute legal tender of any nation; and
839
(ii) has a gold, silver, or platinum content of 80% or more; and
840
(b) Subsection (53)(a) applies to a gold, silver, or platinum:
841
(i) ingot;
842
(ii) bar;
843
(iii) medallion; or
844
(iv) decorative coin;
845
(54) amounts paid on a sale-leaseback transaction;
846
(55) sales of a prosthetic device:
847
(a) for use on or in a human;
848
(b) for which a prescription is issued; and
849
(c) to a person that presents a prescription for the prosthetic device;
850
(56) (a) except as provided in Subsection (56)(b), purchases, leases, or rentals of
851
machinery or equipment by an establishment described in Subsection (56)(c) if the machinery
852
or equipment is primarily used in the production or postproduction of the following media for
853
commercial distribution:
854
(i) a motion picture;
855
(ii) a television program;
856
(iii) a movie made for television;
857
(iv) a music video;
858
(v) a commercial;
859
(vi) a documentary; or
860
(vii) a medium similar to Subsections (56)(a)(i) through (vi) as determined by the
861
commission by administrative rule made in accordance with Subsection (56)(d); or
862
(b) notwithstanding Subsection (56)(a), purchases, leases, or rentals of machinery or
863
equipment by an establishment described in Subsection (56)(c) that is used for the production
864
or postproduction of the following are subject to the taxes imposed by this chapter:
865
(i) a live musical performance;
866
(ii) a live news program; or
867
(iii) a live sporting event;
868
(c) the following establishments listed in the 1997 North American Industry
869
Classification System of the federal Executive Office of the President, Office of Management
870
and Budget, apply to Subsections (56)(a) and (b):
871
(i) NAICS Code 512110; or
872
(ii) NAICS Code 51219; and
873
(d) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
874
commission may by rule:
875
(i) prescribe what constitutes a medium similar to Subsections (56)(a)(i) through (vi);
876
or
877
(ii) define:
878
(A) "commercial distribution";
879
(B) "live musical performance";
880
(C) "live news program"; or
881
(D) "live sporting event";
882
(57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
883
or before June 30, 2009, of machinery or equipment that:
884
(i) is leased or purchased for or by a facility that:
885
(A) is a renewable energy production facility;
886
(B) is located in the state; and
887
(C) (I) becomes operational on or after July 1, 2004; or
888
(II) has its generation capacity increased by one or more megawatts on or after July 1,
889
2004 as a result of the use of the machinery or equipment;
890
(ii) has an economic life of five or more years; and
891
(iii) is used to make the facility or the increase in capacity of the facility described in
892
Subsection (57)(a)(i) operational up to the point of interconnection with an existing
893
transmission grid including:
894
(A) a wind turbine;
895
(B) generating equipment;
896
(C) a control and monitoring system;
897
(D) a power line;
898
(E) substation equipment;
899
(F) lighting;
900
(G) fencing;
901
(H) pipes; or
902
(I) other equipment used for locating a power line or pole; and
903
(b) this Subsection (57) does not apply to:
904
(i) machinery or equipment used in construction of:
905
(A) a new renewable energy production facility; or
906
(B) the increase in the capacity of a renewable energy production facility;
907
(ii) contracted services required for construction and routine maintenance activities;
908
and
909
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
910
of the facility described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or
911
acquired after:
912
(A) the renewable energy production facility described in Subsection (57)(a)(i) is
913
operational as described in Subsection (57)(a)(iii); or
914
(B) the increased capacity described in Subsection (57)(a)(i) is operational as described
915
in Subsection (57)(a)(iii);
916
(58) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
917
or before June 30, 2009, of machinery or equipment that:
918
(i) is leased or purchased for or by a facility that:
919
(A) is a waste energy production facility;
920
(B) is located in the state; and
921
(C) (I) becomes operational on or after July 1, 2004; or
922
(II) has its generation capacity increased by one or more megawatts on or after July 1,
923
2004 as a result of the use of the machinery or equipment;
924
(ii) has an economic life of five or more years; and
925
(iii) is used to make the facility or the increase in capacity of the facility described in
926
Subsection (58)(a)(i) operational up to the point of interconnection with an existing
927
transmission grid including:
928
(A) generating equipment;
929
(B) a control and monitoring system;
930
(C) a power line;
931
(D) substation equipment;
932
(E) lighting;
933
(F) fencing;
934
(G) pipes; or
935
(H) other equipment used for locating a power line or pole; and
936
(b) this Subsection (58) does not apply to:
937
(i) machinery or equipment used in construction of:
938
(A) a new waste energy facility; or
939
(B) the increase in the capacity of a waste energy facility;
940
(ii) contracted services required for construction and routine maintenance activities;
941
and
942
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
943
described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
944
(A) the waste energy facility described in Subsection (58)(a)(i) is operational as
945
described in Subsection (58)(a)(iii); or
946
(B) the increased capacity described in Subsection (58)(a)(i) is operational as described
947
in Subsection (58)(a)(iii);
948
(59) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
949
or before June 30, 2009, of machinery or equipment that:
950
(i) is leased or purchased for or by a facility that:
951
(A) is located in the state;
952
(B) produces fuel from biomass energy including:
953
(I) methanol; or
954
(II) ethanol; and
955
(C) (I) becomes operational on or after July 1, 2004; or
956
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
957
a result of the installation of the machinery or equipment;
958
(ii) has an economic life of five or more years; and
959
(iii) is installed on the facility described in Subsection (59)(a)(i);
960
(b) this Subsection (59) does not apply to:
961
(i) machinery or equipment used in construction of:
962
(A) a new facility described in Subsection (59)(a)(i); or
963
(B) the increase in capacity of the facility described in Subsection (59)(a)(i); or
964
(ii) contracted services required for construction and routine maintenance activities;
965
and
966
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
967
described in Subsection (59)(a)(i)(C)(II), machinery or equipment used or acquired after:
968
(A) the facility described in Subsection (59)(a)(i) is operational; or
969
(B) the increased capacity described in Subsection (59)(a)(i) is operational;
970
(60) amounts paid to a purchaser as a rebate from the manufacturer of a new vehicle
971
for purchasing the new vehicle;
972
(61) (a) subject to Subsection (61)(b), sales of tangible personal property to persons
973
within this state that is subsequently shipped outside the state and incorporated pursuant to
974
contract into and becomes a part of real property located outside of this state, except to the
975
extent that the other state or political entity imposes a sales, use, gross receipts, or other similar
976
transaction excise tax on it against which the other state or political entity allows a credit for
977
taxes imposed by this chapter; and
978
(b) the exemption provided for in Subsection (61)(a):
979
(i) is allowed only if the exemption is applied:
980
(A) in calculating the purchase price of the tangible personal property; and
981
(B) to a written contract that is in effect on July 1, 2004; and
982
(ii) (A) does not apply beginning on the day on which the contract described in
983
Subsection (61)(b)(i):
984
(I) is substantially modified; or
985
(II) terminates; and
986
(B) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
987
the commission may by rule prescribe the circumstances under which a contract is substantially
988
modified;
989
(62) purchases:
990
(a) of one or more of the following items in printed or electronic format:
991
(i) a list containing information that includes one or more:
992
(A) names; or
993
(B) addresses; or
994
(ii) a database containing information that includes one or more:
995
(A) names; or
996
(B) addresses; and
997
(b) used to send direct mail;
998
(63) redemptions or repurchases of property by a person if that property was:
999
(a) delivered to a pawnbroker as part of a pawn transaction; and
1000
(b) redeemed or repurchased within the time period established in a written agreement
1001
between the person and the pawnbroker for redeeming or repurchasing the property;
1002
(64) (a) purchases or leases of an item described in Subsection (64)(b) if the item:
1003
(i) is purchased or leased by, or on behalf of, a telephone service provider; and
1004
(ii) has a useful economic life of one or more years; and
1005
(b) the following apply to Subsection (64)(a):
1006
(i) telecommunications enabling or facilitating equipment, machinery, or software;
1007
(ii) telecommunications equipment, machinery, or software required for 911 service;
1008
(iii) telecommunications maintenance or repair equipment, machinery, or software;
1009
(iv) telecommunications switching or routing equipment, machinery, or software; or
1010
(v) telecommunications transmission equipment, machinery, or software;
1011
(65) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
1012
personal property used in the research and development of coal-to-liquids, oil shale, or tar
1013
sands technology; and
1014
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1015
commission may, for purposes of Subsection (65)(a), make rules defining what constitutes
1016
tangible personal property used in the research and development of coal-to-liquids, oil shale,
1017
and tar sands technology;
1018
(66) (a) purchases of property if:
1019
(i) the property is:
1020
(A) purchased outside of this state;
1021
(B) brought into this state at any time after the purchase described in Subsection
1022
(66)(a)(i)(A); and
1023
(C) used in conducting business in this state; and
1024
(ii) for:
1025
(A) property other than the property described in Subsection (66)(a)(ii)(B), the first use
1026
of the property for a purpose for which the property is designed occurs outside of this state; or
1027
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1028
outside of this state;
1029
(b) the exemption provided for in Subsection (66)(a) does not apply to:
1030
(i) a lease or rental of property; or
1031
(ii) a sale of a vehicle exempt under Subsection (33); and
1032
(c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
1033
purposes of Subsection (66)(a), the commission may by rule define what constitutes the
1034
following:
1035
(i) conducting business in this state if that phrase has the same meaning in this
1036
Subsection (66) as in Subsection (24);
1037
(ii) the first use of property if that phrase has the same meaning in this Subsection (66)
1038
as in Subsection (24); or
1039
(iii) a purpose for which property is designed if that phrase has the same meaning in
1040
this Subsection (66) as in Subsection (24);
1041
(67) sales of disposable home medical equipment or supplies if:
1042
(a) a person presents a prescription for the disposable home medical equipment or
1043
supplies;
1044
(b) the disposable home medical equipment or supplies are used exclusively by the
1045
person to whom the prescription described in Subsection (67)(a) is issued; and
1046
(c) the disposable home medical equipment and supplies are listed as eligible for
1047
payment under:
1048
(i) Title XVIII, federal Social Security Act; or
1049
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
1050
and
1051
(68) sales H. :
1051a
(a) .H to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
1052
District Act H. [
,
] ; .H or
1052a
H. (b) of tangible personal property .H to a subcontractor of a public transit district,
1052b
H. [
including sales of construction
1053
materials that are to be
] if the tangible personal property is:
1053a
(i) clearly identified; and
1053b
(ii) .H installed or converted to real property owned by the public transit
1054
district.
1055
Section 3.
Section
59-12-107
is amended to read:
1056
59-12-107. Collection, remittance, and payment of tax by sellers or other persons
1057
-- Returns -- Direct payment by purchaser of vehicle -- Other liability for collection --
1058
Rulemaking authority -- Credits -- Treatment of bad debt -- Penalties.
1059
(1) (a) Except as provided in Subsection (1)(d) or Section
59-12-107.1
and subject to
1060
Subsection (1)(e), each seller shall pay or collect and remit the sales and use taxes imposed by
1061
this chapter if within this state the seller:
1062
(i) has or utilizes:
1063
(A) an office;
1064
(B) a distribution house;
1065
(C) a sales house;
1066
(D) a warehouse;
1067
(E) a service enterprise; or
1068
(F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
1069
(ii) maintains a stock of goods;
1070
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
1071
state, unless the seller's only activity in the state is:
1072
(A) advertising; or
1073
(B) solicitation by:
1074
(I) direct mail;
1075
(II) electronic mail;
1076
(III) the Internet;
1077
(IV) telephone; or
1078
(V) a means similar to Subsection (1)(a)(iii)(A) or (B);
1079
(iv) regularly engages in the delivery of property in the state other than by:
1080
(A) common carrier; or
1081
(B) United States mail; or
1082
(v) regularly engages in an activity directly related to the leasing or servicing of
1083
property located within the state.
1084
(b) A seller that does not meet one or more of the criteria provided for in Subsection
1085
(1)(a):
1086
(i) except as provided in Subsection (1)(b)(ii), may voluntarily:
1087
(A) collect a tax on a transaction described in Subsection
59-12-103
(1); and
1088
(B) remit the tax to the commission as provided in this part; or
1089
(ii) notwithstanding Subsection (1)(b)(i), shall collect a tax on a transaction described
1090
in Subsection
59-12-103
(1) if Section
59-12-103.1
requires the seller to collect the tax.
1091
(c) A person shall pay a use tax imposed by this chapter on a transaction described in
1092
Subsection
59-12-103
(1) if:
1093
(i) the seller did not collect a tax imposed by this chapter on the transaction; and
1094
(ii) the person:
1095
(A) stores the tangible personal property in the state;
1096
(B) uses the tangible personal property in the state; or
1097
(C) consumes the tangible personal property in the state.
1098
(d) The ownership of property that is located at the premises of a printer's facility with
1099
which the retailer has contracted for printing and that consists of the final printed product,
1100
property that becomes a part of the final printed product, or copy from which the printed
1101
product is produced, shall not result in the retailer being considered to have or maintain an
1102
office, distribution house, sales house, warehouse, service enterprise, or other place of
1103
business, or to maintain a stock of goods, within this state.
1104
(e) (i) As used in this Subsection (1)(e):
1105
(A) "affiliated group" is as defined in Section
59-7-101
, except that "affiliated group"
1106
includes a corporation that is qualified to do business but is not otherwise doing business in
1107
this state;
1108
(B) "common ownership" is as defined in Section
59-7-101
;
1109
(C) "related seller" means a seller that:
1110
(I) is not required to pay or collect and remit sales and use taxes under Subsection
1111
(1)(a) or Section
59-12-103.1
;
1112
(II) is:
1113
(Aa) related to a seller that is required to pay or collect and remit sales and use taxes
1114
under Subsection (1)(a) as part of an affiliated group or because of common ownership; or
1115
(Bb) a limited liability company owned by the parent corporation of an affiliated group
1116
if that parent corporation of the affiliated group is required to pay or collect and remit sales and
1117
use taxes under Subsection (1)(a); and
1118
(III) does not voluntarily collect and remit a tax under Subsection (1)(b)(i).
1119
(ii) A seller is not required to pay or collect and remit sales and use taxes under
1120
Subsection (1)(a):
1121
(A) if the seller is a related seller;
1122
(B) if the seller to which the related seller is related does not engage in any of the
1123
following activities on behalf of the related seller:
1124
(I) advertising;
1125
(II) marketing;
1126
(III) sales; or
1127
(IV) other services; and
1128
(C) if the seller to which the related seller is related accepts the return of an item sold
1129
by the related seller, the seller to which the related seller is related accepts the return of that
1130
item:
1131
(I) sold by a seller that is not a related seller; and
1132
(II) on the same terms as the return of an item sold by that seller to which the related
1133
seller is related.
1134
(2) (a) Except as provided in Section
59-12-107.1
, a tax under this chapter shall be
1135
collected from a purchaser.
1136
(b) A seller may not collect as tax an amount, without regard to fractional parts of one
1137
cent, in excess of the tax computed at the rates prescribed by this chapter.
1138
(c) (i) Each seller shall:
1139
(A) give the purchaser a receipt for the tax collected; or
1140
(B) bill the tax as a separate item and declare the name of this state and the seller's
1141
sales and use tax license number on the invoice for the sale.
1142
(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
1143
and relieves the purchaser of the liability for reporting the tax to the commission as a
1144
consumer.
1145
(d) A seller is not required to maintain a separate account for the tax collected, but is
1146
considered to be a person charged with receipt, safekeeping, and transfer of public moneys.
1147
(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
1148
benefit of the state and for payment to the commission in the manner and at the time provided
1149
for in this chapter.
1150
(f) If any seller, during any reporting period, collects as a tax an amount in excess of
1151
the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
1152
shall remit to the commission the full amount of the tax imposed under this chapter, plus any
1153
excess.
1154
(g) If the accounting methods regularly employed by the seller in the transaction of the
1155
seller's business are such that reports of sales made during a calendar month or quarterly period
1156
will impose unnecessary hardships, the commission may accept reports at intervals that will, in
1157
the commission's opinion, better suit the convenience of the taxpayer or seller and will not
1158
jeopardize collection of the tax.
1159
(3) (a) Except as provided in Subsection (4) and Section
59-12-108
, the sales or use tax
1160
imposed by this chapter is due and payable to the commission quarterly on or before the last
1161
day of the month next succeeding each calendar quarterly period.
1162
(b) (i) Each seller shall, on or before the last day of the month next succeeding each
1163
calendar quarterly period, file with the commission a return for the preceding quarterly period.
1164
(ii) The seller shall remit with the return under Subsection (3)(b)(i) the amount of the
1165
tax required under this chapter to be collected or paid for the period covered by the return.
1166
(c) Each return shall contain information and be in a form the commission prescribes
1167
by rule.
1168
(d) The sales tax as computed in the return shall be based upon the total nonexempt
1169
sales made during the period, including both cash and charge sales.
1170
(e) The use tax as computed in the return shall be based upon the total amount of [sales
1171
and] purchases for storage, use, or other consumption in this state made during the period,
1172
including both by cash and by charge.
1173
(f) (i) Subject to Subsection (3)(f)(ii) and in accordance with Title 63, Chapter 46a,
1174
Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
1175
returns and paying the taxes.
1176
(ii) An extension under Subsection (3)(f)(i) may not be for more than 90 days.
1177
(g) The commission may require returns and payment of the tax to be made for other
1178
than quarterly periods if the commission considers it necessary in order to ensure the payment
1179
of the tax imposed by this chapter.
1180
(4) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
1181
purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
1182
titling or registration under the laws of this state.
1183
(b) The commission shall collect the tax described in Subsection (4)(a) when the
1184
vehicle is titled or registered.
1185
(5) If any sale of tangible personal property or any other taxable transaction under
1186
Subsection
59-12-103
(1), is made by a wholesaler to a retailer, the wholesaler is not
1187
responsible for the collection or payment of the tax imposed on the sale and the retailer is
1188
responsible for the collection or payment of the tax imposed on the sale if:
1189
(a) the retailer represents that the personal property is purchased by the retailer for
1190
resale; and
1191
(b) the personal property is not subsequently resold.
1192
(6) If any sale of property or service subject to the tax is made to a person prepaying
1193
sales or use tax in accordance with Title 63, Chapter 51, Resource Development, or to a
1194
contractor or subcontractor of that person, the person to whom such payment or consideration
1195
is payable is not responsible for the collection or payment of the sales or use tax and the person
1196
prepaying the sales or use tax is responsible for the collection or payment of the sales or use tax
1197
if the person prepaying the sales or use tax represents that the amount prepaid as sales or use
1198
tax has not been fully credited against sales or use tax due and payable under the rules
1199
promulgated by the commission.
1200
(7) (a) For purposes of this Subsection (7):
1201
(i) Except as provided in Subsection (7)(a)(ii), "bad debt" is as defined in Section 166,
1202
Internal Revenue Code.
1203
(ii) Notwithstanding Subsection (7)(a)(i), "bad debt" does not include:
1204
(A) an amount included in the purchase price of tangible personal property or a service
1205
that is:
1206
(I) not a transaction described in Subsection
59-12-103
(1); or
1207
(II) exempt under Section
59-12-104
;
1208
(B) a financing charge;
1209
(C) interest;
1210
(D) a tax imposed under this chapter on the purchase price of tangible personal
1211
property or a service;
1212
(E) an uncollectible amount on tangible personal property that:
1213
(I) is subject to a tax under this chapter; and
1214
(II) remains in the possession of a seller until the full purchase price is paid;
1215
(F) an expense incurred in attempting to collect any debt; or
1216
(G) an amount that a seller does not collect on repossessed property.
1217
(b) A seller may deduct bad debt from the total amount from which a tax under this
1218
chapter is calculated on a return.
1219
(c) A seller may file a refund claim with the commission if:
1220
(i) the amount of bad debt for the time period described in Subsection (7)(e) exceeds
1221
the amount of the seller's sales that are subject to a tax under this chapter for that same time
1222
period; and
1223
(ii) as provided in Section
59-12-110
.
1224
(d) A bad debt deduction under this section may not include interest.
1225
(e) A bad debt may be deducted under this Subsection (7) on a return for the time
1226
period during which the bad debt:
1227
(i) is written off as uncollectible in the seller's books and records; and
1228
(ii) would be eligible for a bad debt deduction:
1229
(A) for federal income tax purposes; and
1230
(B) if the seller were required to file a federal income tax return.
1231
(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
1232
claims a refund under this Subsection (7), the seller shall report and remit a tax under this
1233
chapter:
1234
(i) on the portion of the bad debt the seller recovers; and
1235
(ii) on a return filed for the time period for which the portion of the bad debt is
1236
recovered.
1237
(g) For purposes of reporting a recovery of a portion of bad debt under Subsection
1238
(7)(f), a seller shall apply amounts received on the bad debt in the following order:
1239
(i) in a proportional amount:
1240
(A) to the purchase price of the tangible personal property or service; and
1241
(B) to the tax due under this chapter on the tangible personal property or service; and
1242
(ii) to:
1243
(A) interest charges;
1244
(B) service charges; and
1245
(C) other charges.
1246
(8) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
1247
amount of tax required by this chapter.
1248
(b) A violation of this section is punishable as provided in Section
59-1-401
.
1249
(c) Each person who fails to pay any tax to the state or any amount of tax required to be
1250
paid to the state, except amounts determined to be due by the commission under Sections
1251
59-12-110
and
59-12-111
, within the time required by this chapter, or who fails to file any
1252
return as required by this chapter, shall pay, in addition to the tax, penalties and interest as
1253
provided in Section
59-12-110
.
1254
(d) For purposes of prosecution under this section, each quarterly tax period in which a
1255
seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
1256
tax required to be remitted, constitutes a separate offense.
1257
Section 4.
Section
59-12-501
is amended to read:
1258
59-12-501. Public transit tax -- Base -- Rate -- Voter approval.
1259
(1) (a) (i) In addition to other sales and use taxes, any county, city, or town may impose
1260
a sales and use tax of up to:
1261
(A) [beginning on January 1, 1988, and ending on December 31, 2007] for a county,
1262
city, or town other than a county, city, or town described in Subsection (1)(a)(i)(B), .25% on
1263
the transactions described in Subsection
59-12-103
(1) located within the county, city, or town,
1264
to fund a public transportation system; or
1265
(B) beginning on January 1, 2008, [if within the boundaries of the] for a county, city, or
1266
town within which a tax is not imposed under Part 15, County Option Sales and Use Tax for
1267
Highways, Fixed Guideways, or Systems for Public Transit Act, .30% on the transactions
1268
described in Subsection
59-12-103
(1) located within the county, city, or town, to fund a public
1269
transportation system.
1270
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
1271
under this section on:
1272
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses
1273
are exempt from taxation under Section
59-12-104
;
1274
(B) amounts paid or charged by a seller that collects a tax under Subsection
1275
59-12-107
(1)(b); and
1276
(C) except as provided in Subsection (1)(c), amounts paid or charged for food and food
1277
ingredients.
1278
(b) For purposes of this Subsection (1), the location of a transaction shall be
1279
determined in accordance with Section
59-12-207
.
1280
(c) A county, city, or town imposing a tax under this section shall impose the tax on
1281
amounts paid or charged for food and food ingredients if:
1282
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
1283
food and food ingredients and tangible personal property other than food and food ingredients;
1284
and
1285
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
1286
accordance with Subsection
59-12-107
(1)(b).
1287
(d) Except as provided in Subsection (3) or (4), a county, city, or town may impose a
1288
tax under this section only if the governing body of the county, city, or town, by resolution,
1289
submits the proposal to all the qualified voters within the county, city, or town for approval at a
1290
general or special election conducted in the manner provided by statute.
1291
(2) (a) Notice of any such election shall be given by the county, city, or town governing
1292
body 15 days in advance in the manner prescribed by statute.
1293
(b) If a majority of the voters voting in such election approve the proposal, it shall
1294
become effective on the date provided by the county, city, or town governing body.
1295
(3) This section may not be construed to require an election in jurisdictions where
1296
voters have previously approved a public transit sales or use tax.
1297
(4) A county, city, or town is not subject to the voter approval requirements of this
1298
section if:
1299
(a) on December 31, 2007, the county, city, or town imposes a tax of .25% under this
1300
section; and
1301
(b) on or after January 1, 2008, subject to Subsection (1)(a)(i)(B), the county, city, or
1302
town increases the tax rate under this section to up to .30%.
1303
Section 5. Effective date -- Retrospective operation.
1304
If approved by two-thirds of all the members elected to each house, this bill:
1305
(1) takes effect upon approval by the governor, or the day following the constitutional
1306
time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in
1307
the case of a veto, the date of veto override; and
1308
(2) has retrospective operation to January 1, 2008.
Legislative Review Note
as of 12-7-07 12:44 PM