H.B. 455

1

AMENDMENTS RELATING TO CERTAIN TAXES
2 ADMINISTERED BY OR LICENSE PLATES ISSUED
3 BY THE STATE TAX COMMISSION
4 2008 GENERAL SESSION
5 STATE OF UTAH
6 Chief Sponsor: Stephen E. Sandstrom
7 Senate Sponsor: ____________
8
9 LONG TITLE
10 General Description:
11 This bill amends the Revenue and Taxation and Motor Vehicle titles and related
12 provisions.
13 Highlighted Provisions:
14 This bill:
15 . provides that under certain circumstances the State Tax Commission may not issue
16 or renew a type of support special group license plate;
17 . requires the State Tax Commission to report to the Transportation Interim
18 Committee under certain circumstances relating to issuing or renewing a type of
19 support special group license plate;
20 . requires the State Tax Commission to report to the Revenue and Taxation Interim
21 Committee if the Internal Revenue Code:
22 . does not impose a federal estate tax; and
23 . does not establish a date for reinstating a federal estate tax;
24 . requires the Revenue and Taxation Interim Committee to prepare legislation to
25 repeal the state inheritance tax if the State Tax Commission reports that the Internal
26 Revenue Code:
27 . does not impose a federal estate tax; and

28 . does not establish a date for reinstating a federal estate tax;
29 . provides a state and local sales and use tax exemption relating to a privately owned
30 golf course;
31 . repeals a requirement that a tax rate decal be placed on a fuel pump;
32 . repeals the Illegal Drug Stamp Tax Act; and
33 . makes technical changes.
34 Monies Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 This bill takes effect on July 1, 2008.
38 Utah Code Sections Affected:
39 AMENDS:
40 41-1a-422, as last amended by Laws of Utah 2007, Chapters 173, 179, and 325
41 59-11-102, as last amended by Laws of Utah 2007, Chapter 306
42 59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
43 59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
44 295, and 329
45 63-38-9, as last amended by Laws of Utah 2007, Chapter 122
46 63-38a-104, as last amended by Laws of Utah 1994, Chapter 211
47 ENACTS:
48 59-11-116, Utah Code Annotated 1953
49 REPEALS:
50 59-13-104, as enacted by Laws of Utah 1998, Chapter 253
51 59-19-101, as enacted by Laws of Utah 1988, Chapter 246
52 59-19-102, as enacted by Laws of Utah 1988, Chapter 246
53 59-19-103, as enacted by Laws of Utah 1988, Chapter 246
54 59-19-104, as enacted by Laws of Utah 1988, Chapter 246
55 59-19-105, as last amended by Laws of Utah 1989, Chapter 242
56 59-19-106, as last amended by Laws of Utah 1989, Chapter 242
57 59-19-107, as enacted by Laws of Utah 1988, Chapter 246
58

59 Be it enacted by the Legislature of the state of Utah:
60 Section 1. Section 41-1a-422 is amended to read:
61 41-1a-422. Support special group license plates -- Contributor -- Voluntary
62 contribution collection procedures -- Circumstances under which commission may not
63 issue or renew -- Report to Transportation Interim Committee.
64 (1) As used in this section:
65 (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
66 has donated or in whose name at least $25 has been donated to:
67 (A) a scholastic scholarship fund of a single named institution;
68 (B) the Department of Veterans' Affairs for veterans' programs;
69 (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
70 Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
71 access, and management of wildlife habitat;
72 (D) the Department of Agriculture and Food for the benefit of conservation districts;
73 (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
74 (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with
75 the donation evenly divided between the two;
76 (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
77 council as specified by the contributor;
78 (H) No More Homeless Pets in Utah for distribution to organizations or individuals
79 that provide spay and neuter programs that subsidize the sterilization of domestic animals;
80 (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
81 development programs;
82 (J) the Utah Association of Public School Foundations to support public education; or
83 (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 to
84 assist people who have severe housing needs.
85 (ii) (A) For a veterans' special group license plate, "contributor" means a person who
86 has donated or in whose name at least a $25 donation at the time of application and $10 annual
87 donation thereafter has been made.
88 (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
89 person who:

90 (I) has donated or in whose name at least $30 has been donated at the time of
91 application and annually after the time of application; and
92 (II) is a member of a trade organization for real estate licensees that has more than
93 15,000 Utah members.
94 (b) "Institution" means a state institution of higher education as defined under Section
95 53B-3-102 or a private institution of higher education in the state accredited by a regional or
96 national accrediting agency recognized by the United States Department of Education.
97 (2) (a) An applicant for original or renewal collegiate special group license plates under
98 Subsection (1)(a)(i) must be a contributor to the institution named in the application and
99 present the original contribution verification form under Subsection (2)(b) or make a
100 contribution to the division at the time of application under Subsection (3).
101 (b) An institution with a support special group license plate shall issue to a contributor
102 a verification form designed by the commission containing:
103 (i) the name of the contributor;
104 (ii) the institution to which a donation was made;
105 (iii) the date of the donation; and
106 (iv) an attestation that the donation was for a scholastic scholarship.
107 (c) The state auditor may audit each institution to verify that the moneys collected by
108 the institutions from contributors are used for scholastic scholarships.
109 (d) After an applicant has been issued collegiate license plates or renewal decals, the
110 commission shall charge the institution whose plate was issued, a fee determined in accordance
111 with Section 63-38-3.2 for management and administrative expenses incurred in issuing and
112 renewing the collegiate license plates.
113 (e) If the contribution is made at the time of application, the contribution shall be
114 collected, treated, and deposited as provided under Subsection (3).
115 (3) (a) An applicant for original or renewal support special group license plates under
116 this section must be a contributor to the sponsoring organization associated with the license
117 plate.
118 (b) This contribution shall be:
119 (i) unless collected by the named institution under Subsection (2), collected by the
120 division;

121 (ii) considered a voluntary contribution for the funding of the activities specified under
122 this section and not a motor vehicle registration fee; and
123 (iii) deposited into the appropriate account less actual administrative costs associated
124 with issuing the license plates.
125 (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
126 registration or renewal of registration.
127 (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
128 the division when issuing original:
129 (i) snowmobile license plates; or
130 (ii) conservation license plates.
131 (4) Veterans' license plates shall display one of the symbols representing the Army,
132 Navy, Air Force, Marines, Coast Guard, or American Legion.
133 (5) (a) As used in this section, "type of support special group license plate" means a
134 license plate issued with respect to one entity listed in Subsection (1)(a)(i).
135 (b) Notwithstanding the other provisions of this section and subject to Subsections
136 (5)(c) and (d), beginning on the July 1 immediately following the last day of the three-year
137 period described in Subsection (5)(c), the commission may not issue or renew a type of support
138 special group license plate under this section if the commission determines that, for each year
139 of the three-year period described in Subsection (5)(c), there are 300 or fewer vehicles
140 registered under Part 2, Registration, that are allowed to display the type of support special
141 group license plate.
142 (c) (i) Subject to Subsection (5)(c)(ii), the three-year period described in Subsection
143 (5)(b) is a three consecutive year time period that begins on the October 1 immediately
144 following the last day of a calendar year in which on each day of that calendar year there are
145 300 or fewer vehicles registered under Part 2, Registration, that are allowed to display a type of
146 support special group license plate.
147 (ii) For purposes of Subsection (5)(c)(i), if a type of support special group license plate
148 is not in existence for a portion of a calendar year, that calendar year is not considered to be a
149 calendar year in which on each day of that calendar year there are 300 or fewer vehicles
150 registered under Part 2, Registration, that are allowed to display a type of support special group
151 license plate.

152 (d) If the commission determines that, for each year of the three-year period described
153 in Subsection (5)(c), there are 300 or fewer vehicles registered under Part 2, Registration, that
154 are allowed to display a type of support special group license plate, the commission shall report
155 its intent to not issue or renew that type of support special group license plate:
156 (i) to the Transportation Interim Committee; and
157 (ii) on or before the November interim meeting immediately following the last day of
158 the three-year period described in Subsection (5)(c).
159 Section 2. Section 59-11-102 is amended to read:
160 59-11-102. Definitions.
161 As used in this chapter:
162 (1) "Decedent" means a deceased natural person.
163 (2) "Federal credit" means the maximum amount of the credit for estate death taxes
164 allowed by Section 2011 in respect to a decedent's taxable estate.
165 (3) "Federal estate tax" means a tax imposed:
166 (a) on the right to transfer property at the death of a person; and
167 (b) under the Internal Revenue Code.
168 [(3)] (4) "Gross estate" means "gross estate" as defined in Section 2031, Internal
169 Revenue Code.
170 [(4)] (5) "Nonresident" means a decedent who was domiciled outside of this state at the
171 time of death.
172 [(5)] (6) "Other state" means any state in the United States other than this state, the
173 District of Columbia, or any possession or territory of the United States.
174 [(6)] (7) "Person" includes any natural person, corporation, association, partnership,
175 joint venture, syndicate, estate, trust, or other entity under which business or other activities
176 may be conducted.
177 [(7)] (8) "Personal representative" means the executor, administrator, or trustee of a
178 decedent's estate, or, if there is no executor, administrator, or trustee appointed, qualified, and
179 acting within this state, then any person in actual or constructive possession of any property of
180 the decedent.
181 [(8)] (9) "Resident" means a decedent who was domiciled in this state at the time of
182 death.

183 [(9)] (10) "Section 2011" means "Section 2011," Internal Revenue Code.
184 [(10)] (11) "Taxable estate" means "taxable estate" as defined in Section 2051, Internal
185 Revenue Code.
186 [(11)] (12) "Transfer" means "transfer" as described in Section 2001, Internal Revenue
187 Code.
188 Section 3. Section 59-11-116 is enacted to read:
189 59-11-116. Commission report to Revenue and Taxation Interim Committee --
190 Revenue and Taxation Interim Committee requirement to draft legislation to repeal tax
191 under this chapter.
192 (1) Subject to Subsection (2), the commission shall report to the Revenue and Taxation
193 Interim Committee if:
194 (a) a federal estate tax is not imposed under the Internal Revenue Code; and
195 (b) a date for reinstating the imposition of a federal estate tax is not established in the
196 Internal Revenue Code.
197 (2) The commission shall make the report required by Subsection (1) at the first
198 Revenue and Taxation Interim Committee meeting after the date on which a federal estate tax
199 is not imposed under the Internal Revenue Code.
200 (3) If the commission makes the report described in Subsection (1) to the Revenue and
201 Taxation Interim Committee, the Revenue and Taxation Interim Committee shall prepare
202 legislation to repeal the tax under this chapter.
203 Section 4. Section 59-12-102 is amended to read:
204 59-12-102. Definitions.
205 As used in this chapter:
206 (1) (a) "Admission or user fees" includes season passes.
207 (b) "Admission or user fees" does not include annual membership dues to private
208 organizations.
209 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
210 Section 59-12-102.1 .
211 (3) "Agreement combined tax rate" means the sum of the tax rates:
212 (a) listed under Subsection (4); and
213 (b) that are imposed within a local taxing jurisdiction.

214 (4) "Agreement sales and use tax" means a tax imposed under:
215 (a) Subsection 59-12-103 (2)(a)(i);
216 (b) Subsection 59-12-103 (2)(b)(i);
217 (c) Subsection 59-12-103 (2)(c)(i);
218 (d) Subsection 59-12-103 (2)(d)(i);
219 (e) Subsection 59-12-103 (2)(e)(ii)(A);
220 (f) Subsection 59-12-103 (2)(e)(iii)(A);
221 (g) Section 59-12-204 ;
222 (h) Section 59-12-401 ;
223 (i) Section 59-12-402 ;
224 (j) Section 59-12-501 ;
225 (k) Section 59-12-502 ;
226 (l) Section 59-12-703 ;
227 (m) Section 59-12-802 ;
228 (n) Section 59-12-804 ;
229 (o) Section 59-12-1001 ;
230 (p) Section 59-12-1102 ;
231 (q) Section 59-12-1302 ;
232 (r) Section 59-12-1402 ;
233 (s) Section 59-12-1503 ; or
234 (t) Section 59-12-1703 .
235 (5) "Aircraft" is as defined in Section 72-10-102 .
236 (6) "Alcoholic beverage" means a beverage that:
237 (a) is suitable for human consumption; and
238 (b) contains .5% or more alcohol by volume.
239 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
240 (8) "Assisted amusement device" means an amusement device, skill device, or ride
241 device that is started and stopped by an individual:
242 (a) who is not the purchaser or renter of the right to use or operate the amusement
243 device, skill device, or ride device; and
244 (b) at the direction of the seller of the right to use the amusement device, skill device,

245 or ride device.
246 (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
247 washing of tangible personal property if the cleaning or washing labor is primarily performed
248 by an individual:
249 (a) who is not the purchaser of the cleaning or washing of the tangible personal
250 property; and
251 (b) at the direction of the seller of the cleaning or washing of the tangible personal
252 property.
253 (10) "Authorized carrier" means:
254 (a) in the case of vehicles operated over public highways, the holder of credentials
255 indicating that the vehicle is or will be operated pursuant to both the International Registration
256 Plan and the International Fuel Tax Agreement;
257 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
258 certificate or air carrier's operating certificate; or
259 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
260 stock, the holder of a certificate issued by the United States Surface Transportation Board.
261 (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
262 following that is used as the primary source of energy to produce fuel or electricity:
263 (i) material from a plant or tree; or
264 (ii) other organic matter that is available on a renewable basis, including:
265 (A) slash and brush from forests and woodlands;
266 (B) animal waste;
267 (C) methane produced:
268 (I) at landfills; or
269 (II) as a byproduct of the treatment of wastewater residuals;
270 (D) aquatic plants; and
271 (E) agricultural products.
272 (b) "Biomass energy" does not include:
273 (i) black liquor;
274 (ii) treated woods; or
275 (iii) biomass from municipal solid waste other than methane produced:

276 (A) at landfills; or
277 (B) as a byproduct of the treatment of wastewater residuals.
278 (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
279 property if:
280 (i) one or more of the items of tangible personal property is food and food ingredients;
281 and
282 (ii) the items of tangible personal property are:
283 (A) distinct and identifiable; and
284 (B) sold for one price that is not itemized.
285 (b) "Bundled transaction" does not include the sale of tangible personal property if the
286 sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
287 tangible personal property included in the transaction.
288 (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
289 and identifiable does not include:
290 (i) packaging that:
291 (A) accompanies the sale of the tangible personal property; and
292 (B) is incidental or immaterial to the sale of the tangible personal property;
293 (ii) tangible personal property provided free of charge with the purchase of another
294 item of tangible personal property; or
295 (iii) an item of tangible personal property included in the definition of "purchase
296 price."
297 (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
298 provided free of charge with the purchase of another item of tangible personal property if the
299 sales price of the purchased item of tangible personal property does not vary depending on the
300 inclusion of the tangible personal property provided free of charge.
301 (13) "Certified automated system" means software certified by the governing board of
302 the agreement in accordance with Section 59-12-102.1 that:
303 (a) calculates the agreement sales and use tax imposed within a local taxing
304 jurisdiction:
305 (i) on a transaction; and
306 (ii) in the states that are members of the agreement;

307 (b) determines the amount of agreement sales and use tax to remit to a state that is a
308 member of the agreement; and
309 (c) maintains a record of the transaction described in Subsection (13)(a)(i).
310 (14) "Certified service provider" means an agent certified:
311 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
312 and
313 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
314 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
315 own purchases.
316 (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
317 suitable for general use.
318 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
319 commission shall make rules:
320 (i) listing the items that constitute "clothing"; and
321 (ii) that are consistent with the list of items that constitute "clothing" under the
322 agreement.
323 (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
324 (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
325 fuels that does not constitute industrial use under Subsection (42) or residential use under
326 Subsection (80).
327 (18) (a) "Common carrier" means a person engaged in or transacting the business of
328 transporting passengers, freight, merchandise, or other property for hire within this state.
329 (b) (i) "Common carrier" does not include a person who, at the time the person is
330 traveling to or from that person's place of employment, transports a passenger to or from the
331 passenger's place of employment.
332 (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
333 Utah Administrative Rulemaking Act, the commission may make rules defining what
334 constitutes a person's place of employment.
335 (19) "Component part" includes:
336 (a) poultry, dairy, and other livestock feed, and their components;
337 (b) baling ties and twine used in the baling of hay and straw;

338 (c) fuel used for providing temperature control of orchards and commercial
339 greenhouses doing a majority of their business in wholesale sales, and for providing power for
340 off-highway type farm machinery; and
341 (d) feed, seeds, and seedlings.
342 (20) "Computer" means an electronic device that accepts information:
343 (a) (i) in digital form; or
344 (ii) in a form similar to digital form; and
345 (b) manipulates that information for a result based on a sequence of instructions.
346 (21) "Computer software" means a set of coded instructions designed to cause:
347 (a) a computer to perform a task; or
348 (b) automatic data processing equipment to perform a task.
349 (22) "Construction materials" means any tangible personal property that will be
350 converted into real property.
351 (23) "Delivered electronically" means delivered to a purchaser by means other than
352 tangible storage media.
353 (24) (a) "Delivery charge" means a charge:
354 (i) by a seller of:
355 (A) tangible personal property; or
356 (B) services; and
357 (ii) for preparation and delivery of the tangible personal property or services described
358 in Subsection (24)(a)(i) to a location designated by the purchaser.
359 (b) "Delivery charge" includes a charge for the following:
360 (i) transportation;
361 (ii) shipping;
362 (iii) postage;
363 (iv) handling;
364 (v) crating; or
365 (vi) packing.
366 (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
367 (i) a bridge;
368 (ii) a crown if that crown covers at least 75% of a tooth structure;

369 (iii) a denture;
370 (iv) an implant;
371 (v) an orthodontic device designed to:
372 (A) retain the position or spacing of teeth; and
373 (B) replace a missing tooth;
374 (vi) a partial denture; or
375 (vii) a device similar to Subsections (25)(a)(i) through (vi).
376 (b) "Dental prosthesis" does not include an appliance or device, other than a device
377 described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
378 apply force to the teeth and their supporting structures to:
379 (i) produce changes in their relationship to each other; and
380 (ii) control their growth and development.
381 (26) "Dietary supplement" means a product, other than tobacco, that:
382 (a) is intended to supplement the diet;
383 (b) contains one or more of the following dietary ingredients:
384 (i) a vitamin;
385 (ii) a mineral;
386 (iii) an herb or other botanical;
387 (iv) an amino acid;