First Substitute H.B. 455

Representative Stephen E. Sandstrom proposes the following substitute bill:

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 . provides that a person is exempt from certain license plate fees if:
21 . the person is issued a support special group license plate;
22 . the State Tax Commission determines that the support special group license
23 plate is of a type that the State Tax Commission may not issue or renew; and
24 . the person is required to replace the support special group license plate with
25 another license plate;

26 . requires the State Tax Commission to report to the Revenue and Taxation Interim
27 Committee if the Internal Revenue Code:
28 . does not impose a federal estate tax; and
29 . does not establish a date for reinstating a federal estate tax;
30 . requires the Revenue and Taxation Interim Committee to prepare legislation to
31 repeal the state inheritance tax if the State Tax Commission reports that the Internal
32 Revenue Code:
33 . does not impose a federal estate tax; and
34 . does not establish a date for reinstating a federal estate tax;
35 . provides a state and local sales and use tax exemption relating to a privately owned
36 golf course;
37 . repeals a requirement that a tax rate decal be placed on a fuel pump;
38 . repeals the Illegal Drug Stamp Tax Act;
39 . repeals the Sexually Explicit Business and Escort Service Tax; and
40 . makes technical changes.
41 Monies Appropriated in this Bill:
42 None
43 Other Special Clauses:
44 This bill takes effect on July 1, 2008.
45 Utah Code Sections Affected:
46 AMENDS:
47 41-1a-422, as last amended by Laws of Utah 2007, Chapters 173, 179, and 325
48 41-1a-1211, as last amended by Laws of Utah 2007, Chapter 274
49 59-11-102, as last amended by Laws of Utah 2007, Chapter 306
50 59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
51 59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
52 295, and 329
53 63-38-9, as last amended by Laws of Utah 2007, Chapter 122
54 63-38a-104, as last amended by Laws of Utah 1994, Chapter 211
55 ENACTS:
56 59-11-116, Utah Code Annotated 1953

57 REPEALS:
58 59-13-104, as enacted by Laws of Utah 1998, Chapter 253
59 59-19-101, as enacted by Laws of Utah 1988, Chapter 246
60 59-19-102, as enacted by Laws of Utah 1988, Chapter 246
61 59-19-103, as enacted by Laws of Utah 1988, Chapter 246
62 59-19-104, as enacted by Laws of Utah 1988, Chapter 246
63 59-19-105, as last amended by Laws of Utah 1989, Chapter 242
64 59-19-106, as last amended by Laws of Utah 1989, Chapter 242
65 59-19-107, as enacted by Laws of Utah 1988, Chapter 246
66 59-27-101, as enacted by Laws of Utah 2004, Chapter 214
67 59-27-102, as enacted by Laws of Utah 2004, Chapter 214
68 59-27-103, as enacted by Laws of Utah 2004, Chapter 214
69 59-27-104, as enacted by Laws of Utah 2004, Chapter 214
70 59-27-105, as enacted by Laws of Utah 2004, Chapter 214
71 59-27-106, as enacted by Laws of Utah 2004, Chapter 214
72 59-27-107, as enacted by Laws of Utah 2004, Chapter 214
73 59-27-108, as enacted by Laws of Utah 2004, Chapter 214
74
75 Be it enacted by the Legislature of the state of Utah:
76 Section 1. Section 41-1a-422 is amended to read:
77 41-1a-422. Support special group license plates -- Contributor -- Voluntary
78 contribution collection procedures -- Circumstances under which commission may not
79 issue or renew -- Report to Transportation Interim Committee.
80 (1) As used in this section:
81 (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
82 has donated or in whose name at least $25 has been donated to:
83 (A) a scholastic scholarship fund of a single named institution;
84 (B) the Department of Veterans' Affairs for veterans' programs;
85 (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
86 Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
87 access, and management of wildlife habitat;

88 (D) the Department of Agriculture and Food for the benefit of conservation districts;
89 (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
90 (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with
91 the donation evenly divided between the two;
92 (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
93 council as specified by the contributor;
94 (H) No More Homeless Pets in Utah for distribution to organizations or individuals
95 that provide spay and neuter programs that subsidize the sterilization of domestic animals;
96 (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
97 development programs;
98 (J) the Utah Association of Public School Foundations to support public education; or
99 (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 to
100 assist people who have severe housing needs.
101 (ii) (A) For a veterans' special group license plate, "contributor" means a person who
102 has donated or in whose name at least a $25 donation at the time of application and $10 annual
103 donation thereafter has been made.
104 (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
105 person who:
106 (I) has donated or in whose name at least $30 has been donated at the time of
107 application and annually after the time of application; and
108 (II) is a member of a trade organization for real estate licensees that has more than
109 15,000 Utah members.
110 (b) "Institution" means a state institution of higher education as defined under Section
111 53B-3-102 or a private institution of higher education in the state accredited by a regional or
112 national accrediting agency recognized by the United States Department of Education.
113 (2) (a) An applicant for original or renewal collegiate special group license plates under
114 Subsection (1)(a)(i) must be a contributor to the institution named in the application and
115 present the original contribution verification form under Subsection (2)(b) or make a
116 contribution to the division at the time of application under Subsection (3).
117 (b) An institution with a support special group license plate shall issue to a contributor
118 a verification form designed by the commission containing:

119 (i) the name of the contributor;
120 (ii) the institution to which a donation was made;
121 (iii) the date of the donation; and
122 (iv) an attestation that the donation was for a scholastic scholarship.
123 (c) The state auditor may audit each institution to verify that the moneys collected by
124 the institutions from contributors are used for scholastic scholarships.
125 (d) After an applicant has been issued collegiate license plates or renewal decals, the
126 commission shall charge the institution whose plate was issued, a fee determined in accordance
127 with Section 63-38-3.2 for management and administrative expenses incurred in issuing and
128 renewing the collegiate license plates.
129 (e) If the contribution is made at the time of application, the contribution shall be
130 collected, treated, and deposited as provided under Subsection (3).
131 (3) (a) An applicant for original or renewal support special group license plates under
132 this section must be a contributor to the sponsoring organization associated with the license
133 plate.
134 (b) This contribution shall be:
135 (i) unless collected by the named institution under Subsection (2), collected by the
136 division;
137 (ii) considered a voluntary contribution for the funding of the activities specified under
138 this section and not a motor vehicle registration fee; and
139 (iii) deposited into the appropriate account less actual administrative costs associated
140 with issuing the license plates.
141 (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
142 registration or renewal of registration.
143 (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
144 the division when issuing original:
145 (i) snowmobile license plates; or
146 (ii) conservation license plates.
147 (4) Veterans' license plates shall display one of the symbols representing the Army,
148 Navy, Air Force, Marines, Coast Guard, or American Legion.
149 (5) (a) As used in this section:

150 (i) "Business day" means a day other than a Saturday, Sunday, or legal holiday.
151 (ii) "Type of support special group license plate" means a license plate issued with
152 respect to one entity listed in Subsection (1)(a)(i).
153 (b) Notwithstanding the other provisions of this section and subject to Subsections
154 (5)(c) and (d), beginning on the July 1 immediately following the last day of the three-year
155 period described in Subsection (5)(c)(i), the commission may not issue or renew a type of
156 support special group license plate under this section if the commission determines that, for
157 each month of the three-year period described in Subsection (5)(c)(i), there are 300 or fewer
158 vehicles registered under Part 2, Registration, that are allowed to display the type of support
159 special group license plate.
160 (c) (i) (A) Subject to Subsection (5)(c)(i)(B), the three-year period described in
161 Subsection (5)(b) is a three consecutive year time period that begins on the October 1
162 immediately following the last day of a calendar year in which on the last business day of each
163 month of that calendar year there are 300 or fewer vehicles registered under Part 2,
164 Registration, that are allowed to display a type of support special group license plate.
165 (B) For purposes of Subsection (5)(c)(i)(A), if a type of support special group license
166 plate is not in existence for a portion of a calendar year, that calendar year is not considered to
167 be a calendar year in which on the last business day of each month of that calendar year there
168 are 300 or fewer vehicles registered under Part 2, Registration, that are allowed to display a
169 type of support special group license plate.
170 (ii) For purposes of determining whether for each month of a three-year period there
171 are 300 or fewer vehicles registered under Part 2, Registration, that are allowed to display a
172 type of support special group license plate, the commission shall examine its motor vehicle
173 database on the last business day of each month to determine the number of vehicles that are
174 allowed to display a type of support special group license plate.
175 (d) If the commission determines that, for each month of the three-year period
176 described in Subsection (5)(c)(i), there are 300 or fewer vehicles registered under Part 2,
177 Registration, that are allowed to display a type of support special group license plate, the
178 commission shall report its intent to not issue or renew that type of support special group
179 license plate:
180 (i) to the Transportation Interim Committee; and

181 (ii) on or before the November interim meeting immediately following the last day of
182 the three-year period described in Subsection (5)(c).
183 Section 2. Section 41-1a-1211 is amended to read:
184 41-1a-1211. License plate fees -- Application fees for issuance and renewal of
185 personalized and special group license plates -- Replacement fee for license plates --
186 Postage fees.
187 (1) (a) Except as provided in [Subsection] Subsections (11) and (12), a license plate
188 fee of $5 per set shall be paid to the division for the issuance of any new license plate under
189 Part 4, License Plates and Registration Indicia.
190 (b) The license plate fee shall be deposited as follows:
191 [(a)] (i) $4 as provided in Section 41-1a-1201 ; and
192 [(b)] (ii) $1 in the Transportation Fund.
193 (2) An applicant for original issuance of personalized license plates issued under
194 Section 41-1a-410 shall pay a $50 per set license plate application fee in addition to the fee
195 required in Subsection (1).
196 (3) Beginning July 1, 2003, a person who applies for a special group license plate shall
197 pay a $5 fee for the original set of license plates in addition to the fee required under
198 Subsection (1).
199 (4) An applicant for original issuance of personalized special group license plates shall
200 pay the license plate application fees required in Subsection (2) in addition to the license plate
201 fees and license plate application fees established under Subsections (1) and (3).
202 (5) An applicant for renewal of personalized license plates issued under Section
203 41-1a-410 shall pay a $10 per set application fee.
204 (6) (a) A fee of $5 shall be paid to the division for the replacement of any license plate
205 issued under Part 4, License Plates and Registration Indicia.
206 (b) The license plate fee shall be deposited as follows:
207 [(a)] (i) $4 as provided in Section 41-1a-1201 ; and
208 [(b)] (ii) $1 in the Transportation Fund.
209 (7) The division may charge a fee established under Section 63-38-3.2 to recover its
210 costs for the replacement of decals issued under Section 41-1a-418 .
211 (8) The division may charge a fee established under Section 63-38-3.2 to recover the

212 cost of issuing stickers under Section 41-1a-416 .
213 (9) In addition to any other fees required by this section, the division shall assess a fee
214 established under Section 63-38-3.2 to cover postage expenses if new or replacement license
215 plates are mailed to the applicant.
216 (10) The fees required under this section are separate from and in addition to
217 registration fees required under Section 41-1a-1206 .
218 (11) (a) An applicant for a license plate issued under Section 41-1a-407 is not subject
219 to the license plate fee under Subsection (1).
220 (b) An applicant for a Purple Heart special group license plate issued in accordance
221 with Section 41-1a-421 is exempt from the fees under Subsections (1), (3), and (7).
222 (12) A person is exempt from the fee under Subsection (1) or (6) if:
223 (a) the person is issued a support special group license plate in accordance with Section
224 41-1a-422 ;
225 (b) after the person is issued the support special group license plate, the commission
226 determines in accordance with Subsection 41-1a-422 (5) that the support special group license
227 plate described in Subsection (12)(a) is of a type of support special group license plate that the
228 commission may not issue or renew; and
229 (c) upon renewal or reissuance, the person is required to replace the support special
230 group license plate with a license plate that is not of the type of support special group license
231 plate that the commission may not issue or renew.
232 Section 3. Section 59-11-102 is amended to read:
233 59-11-102. Definitions.
234 As used in this chapter:
235 (1) "Decedent" means a deceased natural person.
236 (2) "Federal credit" means the maximum amount of the credit for estate death taxes
237 allowed by Section 2011 in respect to a decedent's taxable estate.
238 (3) "Federal estate tax" means a tax imposed:
239 (a) on the right to transfer property at the death of a person; and
240 (b) under the Internal Revenue Code.
241 [(3)] (4) "Gross estate" means "gross estate" as defined in Section 2031, Internal
242 Revenue Code.

243 [(4)] (5) "Nonresident" means a decedent who was domiciled outside of this state at the
244 time of death.
245 [(5)] (6) "Other state" means any state in the United States other than this state, the
246 District of Columbia, or any possession or territory of the United States.
247 [(6)] (7) "Person" includes any natural person, corporation, association, partnership,
248 joint venture, syndicate, estate, trust, or other entity under which business or other activities
249 may be conducted.
250 [(7)] (8) "Personal representative" means the executor, administrator, or trustee of a
251 decedent's estate, or, if there is no executor, administrator, or trustee appointed, qualified, and
252 acting within this state, then any person in actual or constructive possession of any property of
253 the decedent.
254 [(8)] (9) "Resident" means a decedent who was domiciled in this state at the time of
255 death.
256 [(9)] (10) "Section 2011" means "Section 2011," Internal Revenue Code.
257 [(10)] (11) "Taxable estate" means "taxable estate" as defined in Section 2051, Internal
258 Revenue Code.
259 [(11)] (12) "Transfer" means "transfer" as described in Section 2001, Internal Revenue
260 Code.
261 Section 4. Section 59-11-116 is enacted to read:
262 59-11-116. Commission report to Revenue and Taxation Interim Committee --
263 Revenue and Taxation Interim Committee requirement to draft legislation to repeal tax
264 under this chapter.
265 (1) Subject to Subsection (2), the commission shall report to the Revenue and Taxation
266 Interim Committee if:
267 (a) a federal estate tax is not imposed under the Internal Revenue Code; and
268 (b) a date for reinstating the imposition of a federal estate tax is not established in the
269 Internal Revenue Code.
270 (2) The commission shall make the report required by Subsection (1) at the first
271 Revenue and Taxation Interim Committee meeting after the date on which a federal estate tax
272 is not imposed under the Internal Revenue Code.
273 (3) If the commission makes the report described in Subsection (1) to the Revenue and

274 Taxation Interim Committee, the Revenue and Taxation Interim Committee shall prepare
275 legislation to repeal the tax under this chapter.
276 Section 5. Section 59-12-102 is amended to read:
277 59-12-102. Definitions.
278 As used in this chapter:
279 (1) (a) "Admission or user fees" includes season passes.
280 (b) "Admission or user fees" does not include annual membership dues to private
281 organizations.
282 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
283 Section 59-12-102.1 .
284 (3) "Agreement combined tax rate" means the sum of the tax rates:
285 (a) listed under Subsection (4); and
286 (b) that are imposed within a local taxing jurisdiction.
287 (4) "Agreement sales and use tax" means a tax imposed under:
288 (a) Subsection 59-12-103 (2)(a)(i);
289 (b) Subsection 59-12-103 (2)(b)(i);
290 (c) Subsection 59-12-103 (2)(c)(i);
291 (d) Subsection 59-12-103 (2)(d)(i);
292 (e) Subsection 59-12-103 (2)(e)(ii)(A);
293 (f) Subsection 59-12-103 (2)(e)(iii)(A);
294 (g) Section 59-12-204 ;
295 (h) Section 59-12-401 ;
296 (i) Section 59-12-402 ;
297 (j) Section 59-12-501 ;
298 (k) Section 59-12-502 ;
299 (l) Section 59-12-703 ;
300 (m) Section 59-12-802 ;
301 (n) Section 59-12-804 ;
302 (o) Section 59-12-1001 ;
303 (p) Section 59-12-1102 ;
304 (q) Section 59-12-1302 ;

305 (r) Section 59-12-1402 ;
306 (s) Section 59-12-1503 ; or
307 (t) Section 59-12-1703 .
308 (5) "Aircraft" is as defined in Section 72-10-102 .
309 (6) "Alcoholic beverage" means a beverage that:
310 (a) is suitable for human consumption; and
311 (b) contains .5% or more alcohol by volume.
312 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
313 (8) "Assisted amusement device" means an amusement device, skill device, or ride
314 device that is started and stopped by an individual:
315 (a) who is not the purchaser or renter of the right to use or operate the amusement
316 device, skill device, or ride device; and
317 (b) at the direction of the seller of the right to use the amusement device, skill device,
318 or ride device.
319 (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
320 washing of tangible personal property if the cleaning or washing labor is primarily performed
321 by an individual:
322 (a) who is not the purchaser of the cleaning or washing of the tangible personal
323 property; and
324 (b) at the direction of the seller of the cleaning or washing of the tangible personal
325 property.
326 (10) "Authorized carrier" means:
327 (a) in the case of vehicles operated over public highways, the holder of credentials
328 indicating that the vehicle is or will be operated pursuant to both the International Registration
329 Plan and the International Fuel Tax Agreement;
330 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
331 certificate or air carrier's operating certificate; or
332 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
333 stock, the holder of a certificate issued by the United States Surface Transportation Board.
334 (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
335 following that is used as the primary source of energy to produce fuel or electricity:

336 (i) material from a plant or tree; or
337 (ii) other organic matter that is available on a renewable basis, including:
338 (A) slash and brush from forests and woodlands;
339 (B) animal waste;
340 (C) methane produced:
341 (I) at landfills; or
342 (II) as a byproduct of the treatment of wastewater residuals;
343 (D) aquatic plants; and
344 (E) agricultural products.
345 (b) "Biomass energy" does not include:
346 (i) black liquor;
347 (ii) treated woods; or
348 (iii) biomass from municipal solid waste other than methane produced:
349 (A) at landfills; or
350 (B) as a byproduct of the treatment of wastewater residuals.
351 (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
352 property if:
353 (i) one or more of the items of tangible personal property is food and food ingredients;
354 and
355 (ii) the items of tangible personal property are:
356 (A) distinct and identifiable; and
357 (B) sold for one price that is not itemized.
358 (b) "Bundled transaction" does not include the sale of tangible personal property if the
359 sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
360 tangible personal property included in the transaction.
361 (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
362 and identifiable does not include:
363 (i) packaging that:
364 (A) accompanies the sale of the tangible personal property; and
365 (B) is incidental or immaterial to the sale of the tangible personal property;
366 (ii) tangible personal property provided free of charge with the purchase of another

367 item of tangible personal property; or
368 (iii) an item of tangible personal property included in the definition of "purchase
369 price."
370 (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
371 provided free of charge with the purchase of another item of tangible personal property if the
372 sales price of the purchased item of tangible personal property does not vary depending on the
373 inclusion of the tangible personal property provided free of charge.
374 (13) "Certified automated system" means software certified by the governing board of
375 the agreement in accordance with Section 59-12-102.1 that:
376 (a) calculates the agreement sales and use tax imposed within a local taxing
377 jurisdiction:
378 (i) on a transaction; and
379 (ii) in the states that are members of the agreement;
380 (b) determines the amount of agreement sales and use tax to remit to a state that is a
381 member of the agreement; and
382 (c) maintains a record of the transaction described in Subsection (13)(a)(i).
383 (14) "Certified service provider" means an agent certified:
384 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
385 and
386 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
387 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
388 own purchases.
389 (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
390 suitable for general use.
391 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
392 commission shall make rules:
393 (i) listing the items that constitute "clothing"; and
394 (ii) that are consistent with the list of items that constitute "clothing" under the
395 agreement.
396 (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
397 (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other

398 fuels that does not constitute industrial use under Subsection (42) or residential use under
399 Subsection (80).
400 (18) (a) "Common carrier" means a person engaged in or transacting the business of
401 transporting passengers, freight, merchandise, or other property for hire within this state.
402 (b) (i) "Common carrier" does not include a person who, at the time the person is
403 traveling to or from that person's place of employment, transports a passenger to or from the
404 passenger's place of employment.
405 (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
406 Utah Administrative Rulemaking Act, the commission may make rules defining what
407 constitutes a person's place of employment.
408 (19) "Component part" includes:
409 (a) poultry, dairy, and other livestock feed, and their components;
410 (b) baling ties and twine used in the baling of hay and straw;
411 (c) fuel used for providing temperature control of orchards and commercial
412 greenhouses doing a majority of their business in wholesale sales, and for providing power for
413 off-highway type farm machinery; and
414 (d) feed, seeds, and seedlings.
415 (20) "Computer" means an electronic device that accepts information:
416 (a) (i) in digital form; or
417 (ii) in a form similar to digital form; and
418 (b) manipulates that information for a result based on a sequence of instructions.
419 (21) "Computer software" means a set of coded instructions designed to cause:
420 (a) a computer to perform a task; or
421 (b) automatic data processing equipment to perform a task.
422 (22) "Construction materials" means any tangible personal property that will be
423 converted into real property.
424 (23) "Delivered electronically" means delivered to a purchaser by means other than
425 tangible storage media.
426 (24) (a) "Delivery charge" means a charge:
427 (i) by a seller of:
428 (A) tangible personal property; or

429 (B) services; and
430 (ii) for preparation and delivery of the tangible personal property or services described
431 in Subsection (24)(a)(i) to a location designated by the purchaser.
432 (b) "Delivery charge" includes a charge for the following:
433 (i) transportation;
434 (ii) shipping;
435 (iii) postage;
436 (iv) handling;
437 (v) crating; or
438 (vi) packing.
439 (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
440 (i) a bridge;
441 (ii) a crown if that crown covers at least 75% of a tooth structure;
442 (iii) a denture;
443 (iv) an implant;
444 (v) an orthodontic device designed to:
445 (A) retain the position or spacing of teeth; and
446 (B) replace a missing tooth;
447 (vi) a partial denture; or
448 (vii) a device similar to Subsections (25)(a)(i) through (vi).
449 (b) "Dental prosthesis" does not include an appliance or device, other than a device
450 described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
451 apply force to the teeth and their supporting structures to:
452 (i) produce changes in their relationship to each other; and
453 (ii) control their growth and development.
454 (26) "Dietary supplement" means a product, other than tobacco, that:
455 (a) is intended to supplement the diet;
456 (b) contains one or more of the following dietary ingredients:
457 (i) a vitamin;
458 (ii) a mineral;
459 (iii) an herb or other botanical;

460 (iv) an amino acid;
461 (v) a dietary substance for use by humans to supplement the diet by increasing the total
462 dietary intake; or
463 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
464 described in Subsections (26)(b)(i) through (v);
465 (c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
466 (A) tablet form;
467 (B) capsule form;
468 (C) powder form;
469 (D) softgel form;
470 (E) gelcap form; or
471 (F) liquid form; or
472 (ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
473 a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
474 (A) as conventional food; and
475 (B) for use as a sole item of:
476 (I) a meal; or
477 (II) the diet; and
478 (d) is required to be labeled as a dietary supplement:
479 (i) identifiable by the "Supplemental Facts" box found on the label; and
480 (ii) as required by 21 C.F.R. Sec. 101.36.
481 (27) (a) "Direct mail" means printed material delivered or distributed by United States
482 mail or other delivery service:
483 (i) to:
484 (A) a mass audience; or
485 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
486 (ii) if the cost of the printed material is not billed directly to the recipients.
487 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
488 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
489 (c) "Direct mail" does not include multiple items of printed material delivered to a
490 single address.

491 (28) (a) "Disposable home medical equipment or supplies" means medical equipment
492 or supplies that:
493 (i) cannot withstand repeated use; and
494 (ii) are purchased by, for, or on behalf of a person other than:
495 (A) a health care facility as defined in Section 26-21-2 ;
496 (B) a health care provider as defined in Section 78-14-3 ;
497 (C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
498 (D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
499 (b) "Disposable home medical equipment or supplies" does not include:
500 (i) a drug;
501 (ii) durable medical equipment;
502 (iii) a hearing aid;
503 (iv) a hearing aid accessory;
504 (v) mobility enhancing equipment; or
505 (vi) tangible personal property used to correct impaired vision, including:
506 (A) eyeglasses; or
507 (B) contact lenses.
508 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
509 commission may by rule define what constitutes medical equipment or supplies.
510 (29) (a) "Drug" means a compound, substance, or preparation, or a component of a
511 compound, substance, or preparation that is:
512 (i) recognized in:
513 (A) the official United States Pharmacopoeia;
514 (B) the official Homeopathic Pharmacopoeia of the United States;
515 (C) the official National Formulary; or
516 (D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
517 (ii) intended for use in the:
518 (A) diagnosis of disease;
519 (B) cure of disease;
520 (C) mitigation of disease;
521 (D) treatment of disease; or

522 (E) prevention of disease; or
523 (iii) intended to affect:
524 (A) the structure of the body; or
525 (B) any function of the body.
526 (b) "Drug" does not include:
527 (i) food and food ingredients;
528 (ii) a dietary supplement;
529 (iii) an alcoholic beverage; or
530 (iv) a prosthetic device.
531 (30) (a) Except as provided in Subsection (30)(c), "durable medical equipment" means
532 equipment that:
533 (i) can withstand repeated use;
534 (ii) is primarily and customarily used to serve a medical purpose;
535 (iii) generally is not useful to a person in the absence of illness or injury; and
536 (iv) is not worn in or on the body.
537 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
538 equipment described in Subsection (30)(a).
539 (c) Notwithstanding Subsection (30)(a), "durable medical equipment" does not include
540 mobility enhancing equipment.
541 (31) "Electronic" means:
542 (a) relating to technology; and
543 (b) having:
544 (i) electrical capabilities;
545 (ii) digital capabilities;
546 (iii) magnetic capabilities;
547 (iv) wireless capabilities;
548 (v) optical capabilities;
549 (vi) electromagnetic capabilities; or
550 (vii) capabilities similar to Subsections (31)(b)(i) through (vi).
551 (32) "Employee" is as defined in Section 59-10-401 .
552 (33) "Fixed guideway" means a public transit facility that uses and occupies:

553 (a) rail for the use of public transit; or
554 (b) a separate right-of-way for the use of public transit.
555 (34) (a) "Food and food ingredients" means substances:
556 (i) regardless of whether the substances are in:
557 (A) liquid form;
558 (B) concentrated form;
559 (C) solid form;
560 (D) frozen form;
561 (E) dried form; or
562 (F) dehydrated form; and
563 (ii) that are:
564 (A) sold for:
565 (I) ingestion by humans; or
566 (II) chewing by humans; and
567 (B) consumed for the substance's:
568 (I) taste; or
569 (II) nutritional value.
570 (b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).
571 (c) "Food and food ingredients" does not include:
572 (i) an alcoholic beverage;
573 (ii) tobacco; or
574 (iii) prepared food.
575 (35) (a) "Fundraising sales" means sales:
576 (i) (A) made by a school; or
577 (B) made by a school student;
578 (ii) that are for the purpose of raising funds for the school to purchase equipment,
579 materials, or provide transportation; and
580 (iii) that are part of an officially sanctioned school activity.
581 (b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity"
582 means a school activity:
583 (i) that is conducted in accordance with a formal policy adopted by the school or school

584 district governing the authorization and supervision of fundraising activities;
585 (ii) that does not directly or indirectly compensate an individual teacher or other
586 educational personnel by direct payment, commissions, or payment in kind; and
587 (iii) the net or gross revenues from which are deposited in a dedicated account
588 controlled by the school or school district.
589 (36) "Geothermal energy" means energy contained in heat that continuously flows
590 outward from the earth that is used as the sole source of energy to produce electricity.
591 (37) "Governing board of the agreement" means the governing board of the agreement
592 that is:
593 (a) authorized to administer the agreement; and
594 (b) established in accordance with the agreement.
595 (38) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
596 (i) the executive branch of the state, including all departments, institutions, boards,
597 divisions, bureaus, offices, commissions, and committees;
598 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
599 Office of the Court Administrator, and similar administrative units in the judicial branch;
600 (iii) the legislative branch of the state, including the House of Representatives, the
601 Senate, the Legislative Printing Office, the Office of Legislative Research and General
602 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
603 Analyst;
604 (iv) the National Guard;
605 (v) an independent entity as defined in Section 63E-1-102 ; or
606 (vi) a political subdivision as defined in Section 17B-1-102 .
607 (b) "Governmental entity" does not include the state systems of public and higher
608 education, including:
609 (i) a college campus of the Utah College of Applied Technology;
610 (ii) a school;
611 (iii) the State Board of Education;
612 (iv) the State Board of Regents; or
613 (v) a state institution of higher education as defined in Section 53B-3-102 .
614 (39) (a) "Hearing aid" means:

615 (i) an instrument or device having an electronic component that is designed to:
616 (A) (I) improve impaired human hearing; or
617 (II) correct impaired human hearing; and
618 (B) (I) be worn in the human ear; or
619 (II) affixed behind the human ear;
620 (ii) an instrument or device that is surgically implanted into the cochlea; or
621 (iii) a telephone amplifying device.
622 (b) "Hearing aid" does not include:
623 (i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
624 having an electronic component that is designed to be worn on the body;
625 (ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
626 designed to be used by one individual, including:
627 (A) a personal amplifying system;
628 (B) a personal FM system;
629 (C) a television listening system; or
630 (D) a device or system similar to a device or system described in Subsections
631 (39)(b)(ii)(A) through (C); or
632 (iii) an assistive listening device or system designed to be used by more than one
633 individual, including:
634 (A) a device or system installed in:
635 (I) an auditorium;
636 (II) a church;
637 (III) a conference room;
638 (IV) a synagogue; or
639 (V) a theater; or
640 (B) a device or system similar to a device or system described in Subsections
641 (39)(b)(iii)(A)(I) through (V).
642 (40) (a) "Hearing aid accessory" means a hearing aid:
643 (i) component;
644 (ii) attachment; or
645 (iii) accessory.

646 (b) "Hearing aid accessory" includes:
647 (i) a hearing aid neck loop;
648 (ii) a hearing aid cord;
649 (iii) a hearing aid ear mold;
650 (iv) hearing aid tubing;
651 (v) a hearing aid ear hook; or
652 (vi) a hearing aid remote control.
653 (c) "Hearing aid accessory" does not include:
654 (i) a component, attachment, or accessory designed to be used only with an:
655 (A) instrument or device described in Subsection (39)(b)(i); or
656 (B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or
657 (ii) a hearing aid battery.
658 (41) "Hydroelectric energy" means water used as the sole source of energy to produce
659 electricity.
660 (42) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
661 other fuels:
662 (a) in mining or extraction of minerals;
663 (b) in agricultural operations to produce an agricultural product up to the time of
664 harvest or placing the agricultural product into a storage facility, including:
665 (i) commercial greenhouses;
666 (ii) irrigation pumps;
667 (iii) farm machinery;
668 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
669 registered under Title 41, Chapter 1a, Part 2, Registration; and
670 (v) other farming activities;
671 (c) in manufacturing tangible personal property at an establishment described in SIC
672 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
673 Executive Office of the President, Office of Management and Budget;
674 (d) by a scrap recycler if:
675 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
676 one or more of the following items into prepared grades of processed materials for use in new

677 products:
678 (A) iron;
679 (B) steel;
680 (C) nonferrous metal;
681 (D) paper;
682 (E) glass;
683 (F) plastic;
684 (G) textile; or
685 (H) rubber; and
686 (ii) the new products under Subsection (42)(d)(i) would otherwise be made with
687 nonrecycled materials; or
688 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
689 cogeneration facility as defined in Section 54-2-1 .
690 (43) (a) Except as provided in Subsection (43)(b), "installation charge" means a charge
691 for installing tangible personal property.
692 (b) Notwithstanding Subsection (43)(a), "installation charge" does not include a charge
693 for repairs or renovations of tangible personal property.
694 (44) (a) "Lease" or "rental" means a transfer of possession or control of tangible
695 personal property for:
696 (i) (A) a fixed term; or
697 (B) an indeterminate term; and
698 (ii) consideration.
699 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
700 amount of consideration may be increased or decreased by reference to the amount realized
701 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
702 Code.
703 (c) "Lease" or "rental" does not include:
704 (i) a transfer of possession or control of property under a security agreement or
705 deferred payment plan that requires the transfer of title upon completion of the required
706 payments;
707 (ii) a transfer of possession or control of property under an agreement that requires the

708 transfer of title:
709 (A) upon completion of required payments; and
710 (B) if the payment of an option price does not exceed the greater of:
711 (I) $100; or
712 (II) 1% of the total required payments; or
713 (iii) providing tangible personal property along with an operator for a fixed period of
714 time or an indeterminate period of time if the operator is necessary for equipment to perform as
715 designed.
716 (d) For purposes of Subsection (44)(c)(iii), an operator is necessary for equipment to
717 perform as designed if the operator's duties exceed the:
718 (i) set-up of tangible personal property;
719 (ii) maintenance of tangible personal property; or
720 (iii) inspection of tangible personal property.
721 (45) "Load and leave" means delivery to a purchaser by use of a tangible storage media
722 if the tangible storage media is not physically transferred to the purchaser.
723 (46) "Local taxing jurisdiction" means a:
724 (a) county that is authorized to impose an agreement sales and use tax;
725 (b) city that is authorized to impose an agreement sales and use tax; or
726 (c) town that is authorized to impose an agreement sales and use tax.
727 (47) "Manufactured home" is as defined in Section 58-56-3 .
728 (48) For purposes of Section 59-12-104 , "manufacturing facility" means:
729 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
730 Industrial Classification Manual of the federal Executive Office of the President, Office of
731 Management and Budget;
732 (b) a scrap recycler if:
733 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
734 one or more of the following items into prepared grades of processed materials for use in new
735 products:
736 (A) iron;
737 (B) steel;
738 (C) nonferrous metal;

739 (D) paper;
740 (E) glass;
741 (F) plastic;
742 (G) textile; or
743 (H) rubber; and
744 (ii) the new products under Subsection (48)(b)(i) would otherwise be made with
745 nonrecycled materials; or
746 (c) a cogeneration facility as defined in Section 54-2-1 .
747 (49) "Member of the immediate family of the producer" means a person who is related
748 to a producer described in Subsection 59-12-104 (20)(a) as a:
749 (a) child or stepchild, regardless of whether the child or stepchild is:
750 (i) an adopted child or adopted stepchild; or
751 (ii) a foster child or foster stepchild;
752 (b) grandchild or stepgrandchild;
753 (c) grandparent or stepgrandparent;
754 (d) nephew or stepnephew;
755 (e) niece or stepniece;
756 (f) parent or stepparent;
757 (g) sibling or stepsibling;
758 (h) spouse;
759 (i) person who is the spouse of a person described in Subsections (49)(a) through (g);
760 or
761 (j) person similar to a person described in Subsections (49)(a) through (i) as
762 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
763 Administrative Rulemaking Act.
764 (50) "Mobile home" is as defined in Section 58-56-3 .
765 (51) "Mobile telecommunications service" is as defined in the Mobile
766 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
767 (52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"
768 means equipment that is:
769 (i) primarily and customarily used to provide or increase the ability to move from one

770 place to another;
771 (ii) appropriate for use in a:
772 (A) home; or
773 (B) motor vehicle; and
774 (iii) not generally used by persons with normal mobility.
775 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
776 the equipment described in Subsection (52)(a).
777 (c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
778 include:
779 (i) a motor vehicle;
780 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
781 vehicle manufacturer;
782 (iii) durable medical equipment; or
783 (iv) a prosthetic device.
784 (53) "Model 1 seller" means a seller that has selected a certified service provider as the
785 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
786 use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
787 seller's own purchases.
788 (54) "Model 2 seller" means a seller that:
789 (a) except as provided in Subsection (54)(b), has selected a certified automated system
790 to perform the seller's sales tax functions for agreement sales and use taxes; and
791 (b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
792 sales tax:
793 (i) collected by the seller; and
794 (ii) to the appropriate local taxing jurisdiction.
795 (55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:
796 (i) sales in at least five states that are members of the agreement;
797 (ii) total annual sales revenues of at least $500,000,000;
798 (iii) a proprietary system that calculates the amount of tax:
799 (A) for an agreement sales and use tax; and
800 (B) due to each local taxing jurisdiction; and

801 (iv) entered into a performance agreement with the governing board of the agreement.
802 (b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of
803 sellers using the same proprietary system.
804 (56) "Modular home" means a modular unit as defined in Section 58-56-3 .
805 (57) "Motor vehicle" is as defined in Section 41-1a-102 .
806 (58) "Oil shale" means a group of fine black to dark brown shales containing
807 bituminous material that yields petroleum upon distillation.
808 (59) (a) "Other fuels" means products that burn independently to produce heat or
809 energy.
810 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
811 personal property.
812 (60) "Pawnbroker" is as defined in Section 13-32a-102 .
813 (61) "Pawn transaction" is as defined in Section 13-32a-102 .
814 (62) (a) "Permanently attached to real property" means that for tangible personal
815 property attached to real property:
816 (i) the attachment of the tangible personal property to the real property:
817 (A) is essential to the use of the tangible personal property; and
818 (B) suggests that the tangible personal property will remain attached to the real
819 property in the same place over the useful life of the tangible personal property; or
820 (ii) if the tangible personal property is detached from the real property, the detachment
821 would:
822 (A) cause substantial damage to the tangible personal property; or
823 (B) require substantial alteration or repair of the real property to which the tangible
824 personal property is attached.
825 (b) "Permanently attached to real property" includes:
826 (i) the attachment of an accessory to the tangible personal property if the accessory is:
827 (A) essential to the operation of the tangible personal property; and
828 (B) attached only to facilitate the operation of the tangible personal property;
829 (ii) a temporary detachment of tangible personal property from real property for a
830 repair or renovation if the repair or renovation is performed where the tangible personal
831 property and real property are located; or

832 (iii) an attachment of the following tangible personal property to real property,
833 regardless of whether the attachment to real property is only through a line that supplies water,
834 electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
835 rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
836 (A) property attached to oil, gas, or water pipelines, other than the property listed in
837 Subsection (62)(c)(iii);
838 (B) a hot water heater;
839 (C) a water softener system; or
840 (D) a water filtration system, other than a water filtration system manufactured as part
841 of a refrigerator.
842 (c) "Permanently attached to real property" does not include:
843 (i) the attachment of portable or movable tangible personal property to real property if
844 that portable or movable tangible personal property is attached to real property only for:
845 (A) convenience;
846 (B) stability; or
847 (C) for an obvious temporary purpose;
848 (ii) the detachment of tangible personal property from real property other than the
849 detachment described in Subsection (62)(b)(ii); or
850 (iii) an attachment of the following tangible personal property to real property if the
851 attachment to real property is only through a line that supplies water, electricity, gas, telephone,
852 cable, or supplies a similar item as determined by the commission by rule made in accordance
853 with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
854 (A) a refrigerator;
855 (B) a washer;
856 (C) a dryer;
857 (D) a stove;
858 (E) a television;
859 (F) a computer;
860 (G) a telephone; or
861 (H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
862 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah

863 Administrative Rulemaking Act.
864 (63) "Person" includes any individual, firm, partnership, joint venture, association,
865 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
866 municipality, district, or other local governmental entity of the state, or any group or
867 combination acting as a unit.
868 (64) "Place of primary use":
869 (a) for telephone service other than mobile telecommunications service, means the
870 street address representative of where the purchaser's use of the telephone service primarily
871 occurs, which shall be:
872 (i) the residential street address of the purchaser; or
873 (ii) the primary business street address of the purchaser; or
874 (b) for mobile telecommunications service, is as defined in the Mobile
875 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
876 (65) "Postproduction" means an activity related to the finishing or duplication of a
877 medium described in Subsection 59-12-104 (56)(a).
878 (66) (a) "Prepared food" means:
879 (i) food:
880 (A) sold in a heated state; or
881 (B) heated by a seller;
882 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
883 item; or
884 (iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
885 by the seller, including a:
886 (A) plate;
887 (B) knife;
888 (C) fork;
889 (D) spoon;
890 (E) glass;
891 (F) cup;
892 (G) napkin; or
893 (H) straw.

894 (b) "Prepared food" does not include:
895 (i) food that a seller only:
896 (A) cuts;
897 (B) repackages; or
898 (C) pasteurizes; or
899 (ii) (A) the following:
900 (I) raw egg;
901 (II) raw fish;
902 (III) raw meat;
903 (IV) raw poultry; or
904 (V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);
905 and
906 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
907 Food and Drug Administration's Food Code that a consumer cook the items described in
908 Subsection (66)(b)(ii)(A) to prevent food borne illness; or
909 (iii) the following if sold without eating utensils provided by the seller:
910 (A) food and food ingredients sold by a seller if the seller's proper primary
911 classification under the 2002 North American Industry Classification System of the federal
912 Executive Office of the President, Office of Management and Budget, is manufacturing in
913 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
914 Manufacturing;
915 (B) food and food ingredients sold in an unheated state:
916 (I) by weight or volume; and
917 (II) as a single item; or
918 (C) a bakery item, including:
919 (I) a bagel;
920 (II) a bar;
921 (III) a biscuit;
922 (IV) bread;
923 (V) a bun;
924 (VI) a cake;

925 (VII) a cookie;
926 (VIII) a croissant;
927 (IX) a danish;
928 (X) a donut;
929 (XI) a muffin;
930 (XII) a pastry;
931 (XIII) a pie;
932 (XIV) a roll;
933 (XV) a tart;
934 (XVI) a torte; or
935 (XVII) a tortilla.
936 (c) Notwithstanding Subsection (66)(a)(iii), an eating utensil provided by the seller
937 does not include the following used to transport the food:
938 (i) a container; or
939 (ii) packaging.
940 (67) "Prescription" means an order, formula, or recipe that is issued:
941 (a) (i) orally;
942 (ii) in writing;
943 (iii) electronically; or
944 (iv) by any other manner of transmission; and
945 (b) by a licensed practitioner authorized by the laws of a state.
946 (68) (a) Except as provided in Subsection (68)(b)(ii) or (iii), "prewritten computer
947 software" means computer software that is not designed and developed:
948 (i) by the author or other creator of the computer software; and
949 (ii) to the specifications of a specific purchaser.
950 (b) "Prewritten computer software" includes:
951 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
952 software is not designed and developed:
953 (A) by the author or other creator of the computer software; and
954 (B) to the specifications of a specific purchaser;
955 (ii) notwithstanding Subsection (68)(a), computer software designed and developed by

956 the author or other creator of the computer software to the specifications of a specific purchaser
957 if the computer software is sold to a person other than the purchaser; or
958 (iii) notwithstanding Subsection (68)(a) and except as provided in Subsection (68)(c),
959 prewritten computer software or a prewritten portion of prewritten computer software:
960 (A) that is modified or enhanced to any degree; and
961 (B) if the modification or enhancement described in Subsection (68)(b)(iii)(A) is
962 designed and developed to the specifications of a specific purchaser.
963 (c) Notwithstanding Subsection (68)(b)(iii), "prewritten computer software" does not
964 include a modification or enhancement described in Subsection (68)(b)(iii) if the charges for
965 the modification or enhancement are:
966 (i) reasonable; and
967 (ii) separately stated on the invoice or other statement of price provided to the
968 purchaser.
969 (69) (a) Subject to Subsections (69)(b) and (c), "privately owned golf course" means a
970 golf course that:
971 (i) is owned or operated by a business entity that is not a governmental entity as
972 defined in Section 59-2-511 ; and
973 (ii) may be used by the public for golfing or golfing practice.
974 (b) "Privately owned golf course" includes:
975 (i) a club house operated in conjunction with a golf course;
976 (ii) a driving range operated in conjunction with a golf course;
977 (iii) an irrigation system associated with a golf course;
978 (iv) landscaping associated with a golf course;
979 (v) a path associated with a golf course;
980 (vi) a patio associated with a golf course;
981 (vii) a pro shop operated in conjunction with a golf course; or
982 (viii) a restaurant operated in conjunction with a golf course.
983 (c) "Privately owned golf course" does not include a private golf course or private
984 country club that restricts the use of the private golf course or private country club or a facility
985 of the private golf course or private country club to:
986 (i) a member of the private golf course or private country club; or

987 (ii) a guest of a member described in Subsection (69)(c)(i).
988 [(69)] (70) (a) "Prosthetic device" means a device that is worn on or in the body to:
989 (i) artificially replace a missing portion of the body;
990 (ii) prevent or correct a physical deformity or physical malfunction; or
991 (iii) support a weak or deformed portion of the body.
992 (b) "Prosthetic device" includes:
993 (i) parts used in the repairs or renovation of a prosthetic device;
994 (ii) replacement parts for a prosthetic device; or
995 (iii) a dental prosthesis.
996 (c) "Prosthetic device" does not include:
997 (i) corrective eyeglasses;
998 (ii) contact lenses; or
999 (iii) hearing aids.
1000 [(70)] (71) (a) "Protective equipment" means an item:
1001 (i) for human wear; and
1002 (ii) that is:
1003 (A) designed as protection:
1004 (I) to the wearer against injury or disease; or
1005 (II) against damage or injury of other persons or property; and
1006 (B) not suitable for general use.
1007 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1008 commission shall make rules:
1009 (i) listing the items that constitute "protective equipment"; and
1010 (ii) that are consistent with the list of items that constitute "protective equipment"
1011 under the agreement.
1012 [(71)] (72) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
1013 written or printed matter, other than a photocopy:
1014 (i) regardless of:
1015 (A) characteristics;
1016 (B) copyright;
1017 (C) form;

1018 (D) format;
1019 (E) method of reproduction; or
1020 (F) source; and
1021 (ii) made available in printed or electronic format.
1022 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1023 commission may by rule define the term "photocopy."
1024 [(72)] (73) (a) "Purchase price" and "sales price" mean the total amount of
1025 consideration:
1026 (i) valued in money; and
1027 (ii) for which tangible personal property or services are:
1028 (A) sold;
1029 (B) leased; or
1030 (C) rented.
1031 (b) "Purchase price" and "sales price" include:
1032 (i) the seller's cost of the tangible personal property or services sold;
1033 (ii) expenses of the seller, including:
1034 (A) the cost of materials used;
1035 (B) a labor cost;
1036 (C) a service cost;
1037 (D) interest;
1038 (E) a loss;
1039 (F) the cost of transportation to the seller; or
1040 (G) a tax imposed on the seller; or
1041 (iii) a charge by the seller for any service necessary to complete the sale.
1042 (c) "Purchase price" and "sales price" do not include:
1043 (i) a discount:
1044 (A) in a form including:
1045 (I) cash;
1046 (II) term; or
1047 (III) coupon;
1048 (B) that is allowed by a seller;

1049 (C) taken by a purchaser on a sale; and
1050 (D) that is not reimbursed by a third party; or
1051 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1052 provided to the purchaser:
1053 (A) the amount of a trade-in;
1054 (B) the following from credit extended on the sale of tangible personal property or
1055 services:
1056 (I) interest charges;
1057 (II) financing charges; or
1058 (III) carrying charges;
1059 (C) a tax or fee legally imposed directly on the consumer;
1060 (D) a delivery charge; or
1061 (E) an installation charge.
1062 [(73)] (74) "Purchaser" means a person to whom:
1063 (a) a sale of tangible personal property is made; or
1064 (b) a service is furnished.
1065 [(74)] (75) "Regularly rented" means:
1066 (a) rented to a guest for value three or more times during a calendar year; or
1067 (b) advertised or held out to the public as a place that is regularly rented to guests for
1068 value.
1069 [(75)] (76) "Renewable energy" means:
1070 (a) biomass energy;
1071 (b) hydroelectric energy;
1072 (c) geothermal energy;
1073 (d) solar energy; or
1074 (e) wind energy.
1075 [(76)] (77) (a) "Renewable energy production facility" means a facility that:
1076 (i) uses renewable energy to produce electricity; and
1077 (ii) has a production capacity of 20 kilowatts or greater.
1078 (b) A facility is a renewable energy production facility regardless of whether the
1079 facility is:

1080 (i) connected to an electric grid; or
1081 (ii) located on the premises of an electricity consumer.
1082 [(77)] (78) "Rental" is as defined in Subsection (44).
1083 [(78)] (79) "Repairs or renovations of tangible personal property" means:
1084 (a) a repair or renovation of tangible personal property that is not permanently attached
1085 to real property; or
1086 (b) attaching tangible personal property to other tangible personal property if the other
1087 tangible personal property to which the tangible personal property is attached is not
1088 permanently attached to real property.
1089 [(79)] (80) "Research and development" means the process of inquiry or
1090 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1091 process of preparing those devices, technologies, or applications for marketing.
1092 [(80)] (81) "Residential use" means the use in or around a home, apartment building,
1093 sleeping quarters, and similar facilities or accommodations.
1094 [(81)] (82) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
1095 other than:
1096 (a) resale;
1097 (b) sublease; or
1098 (c) subrent.
1099 [(82)] (83) (a) "Retailer" means any person engaged in a regularly organized business
1100 in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
1101 and who is selling to the user or consumer and not for resale.
1102 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1103 engaged in the business of selling to users or consumers within the state.
1104 [(83)] (84) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1105 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1106 Subsection 59-12-103 (1), for consideration.
1107 (b) "Sale" includes:
1108 (i) installment and credit sales;
1109 (ii) any closed transaction constituting a sale;
1110 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this

1111 chapter;
1112 (iv) any transaction if the possession of property is transferred but the seller retains the
1113 title as security for the payment of the price; and
1114 (v) any transaction under which right to possession, operation, or use of any article of
1115 tangible personal property is granted under a lease or contract and the transfer of possession
1116 would be taxable if an outright sale were made.
1117 [(84)] (85) "Sale at retail" is as defined in Subsection [(81)] (82).
1118 [(85)] (86) "Sale-leaseback transaction" means a transaction by which title to tangible
1119 personal property that is subject to a tax under this chapter is transferred:
1120 (a) by a purchaser-lessee;
1121 (b) to a lessor;
1122 (c) for consideration; and
1123 (d) if:
1124 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1125 of the tangible personal property;
1126 (ii) the sale of the tangible personal property to the lessor is intended as a form of
1127 financing:
1128 (A) for the property; and
1129 (B) to the purchaser-lessee; and
1130 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1131 is required to:
1132 (A) capitalize the property for financial reporting purposes; and
1133 (B) account for the lease payments as payments made under a financing arrangement.
1134 [(86)] (87) "Sales price" is as defined in Subsection [(72)] (73).
1135 [(87)] (88) (a) "Sales relating to schools" means the following sales by, amounts paid
1136 to, or amounts charged by a school:
1137 (i) sales that are directly related to the school's educational functions or activities
1138 including:
1139 (A) the sale of:
1140 (I) textbooks;
1141 (II) textbook fees;

1142 (III) laboratory fees;
1143 (IV) laboratory supplies; or
1144 (V) safety equipment;
1145 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1146 that:
1147 (I) a student is specifically required to wear as a condition of participation in a
1148 school-related event or school-related activity; and
1149 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1150 place of ordinary clothing;
1151 (C) sales of the following if the net or gross revenues generated by the sales are
1152 deposited into a school district fund or school fund dedicated to school meals:
1153 (I) food and food ingredients; or
1154 (II) prepared food; or
1155 (D) transportation charges for official school activities; or
1156 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1157 event or school-related activity.
1158 (b) "Sales relating to schools" does not include:
1159 (i) bookstore sales of items that are not educational materials or supplies;
1160 (ii) except as provided in Subsection [(87)] (88)(a)(i)(B):
1161 (A) clothing;
1162 (B) clothing accessories or equipment;
1163 (C) protective equipment; or
1164 (D) sports or recreational equipment; or
1165 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1166 event or school-related activity if the amounts paid or charged are passed through to a person:
1167 (A) other than a:
1168 (I) school;
1169 (II) nonprofit organization authorized by a school board or a governing body of a
1170 private school to organize and direct a competitive secondary school activity; or
1171 (III) nonprofit association authorized by a school board or a governing body of a
1172 private school to organize and direct a competitive secondary school activity; and

1173 (B) that is required to collect sales and use taxes under this chapter.
1174 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1175 commission may make rules defining the term "passed through."
1176 [(88)] (89) For purposes of this section and Section 59-12-104 , "school":
1177 (a) means:
1178 (i) an elementary school or a secondary school that:
1179 (A) is a:
1180 (I) public school; or
1181 (II) private school; and
1182 (B) provides instruction for one or more grades kindergarten through 12; or
1183 (ii) a public school district; and
1184 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1185 [(89)] (90) "Seller" means a person that makes a sale, lease, or rental of:
1186 (a) tangible personal property; or
1187 (b) a service.
1188 [(90)] (91) (a) "Semiconductor fabricating, processing, research, or development
1189 materials" means tangible personal property:
1190 (i) used primarily in the process of:
1191 (A) (I) manufacturing a semiconductor;
1192 (II) fabricating a semiconductor; or
1193 (III) research or development of a:
1194 (Aa) semiconductor; or
1195 (Bb) semiconductor manufacturing process; or
1196 (B) maintaining an environment suitable for a semiconductor; or
1197 (ii) consumed primarily in the process of:
1198 (A) (I) manufacturing a semiconductor;
1199 (II) fabricating a semiconductor; or
1200 (III) research or development of a:
1201 (Aa) semiconductor; or
1202 (Bb) semiconductor manufacturing process; or
1203 (B) maintaining an environment suitable for a semiconductor.

1204 (b) "Semiconductor fabricating, processing, research, or development materials"
1205 includes:
1206 (i) parts used in the repairs or renovations of tangible personal property described in
1207 Subsection [(90)] (91)(a); or
1208 (ii) a chemical, catalyst, or other material used to:
1209 (A) produce or induce in a semiconductor a:
1210 (I) chemical change; or
1211 (II) physical change;
1212 (B) remove impurities from a semiconductor; or
1213 (C) improve the marketable condition of a semiconductor.
1214 [(91)] (92) "Senior citizen center" means a facility having the primary purpose of
1215 providing services to the aged as defined in Section 62A-3-101 .
1216 [(92)] (93) "Simplified electronic return" means the electronic return:
1217 (a) described in Section 318(C) of the agreement; and
1218 (b) approved by the governing board of the agreement.
1219 [(93)] (94) "Solar energy" means the sun used as the sole source of energy for
1220 producing electricity.
1221 [(94)] (95) (a) "Sports or recreational equipment" means an item:
1222 (i) designed for human use; and
1223 (ii) that is:
1224 (A) worn in conjunction with:
1225 (I) an athletic activity; or
1226 (II) a recreational activity; and
1227 (B) not suitable for general use.
1228 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1229 commission shall make rules:
1230 (i) listing the items that constitute "sports or recreational equipment"; and
1231 (ii) that are consistent with the list of items that constitute "sports or recreational
1232 equipment" under the agreement.
1233 [(95)] (96) "State" means the state of Utah, its departments, and agencies.
1234 [(96)] (97) "Storage" means any keeping or retention of tangible personal property or

1235 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
1236 except sale in the regular course of business.
1237 [(97)] (98) (a) "Tangible personal property" means personal property that:
1238 (i) may be:
1239 (A) seen;
1240 (B) weighed;
1241 (C) measured;
1242 (D) felt; or
1243 (E) touched; or
1244 (ii) is in any manner perceptible to the senses.
1245 (b) "Tangible personal property" includes:
1246 (i) electricity;
1247 (ii) water;
1248 (iii) gas;
1249 (iv) steam; or
1250 (v) prewritten computer software.
1251 [(98)] (99) "Tar sands" means impregnated sands that yield mixtures of liquid
1252 hydrocarbon and require further processing other than mechanical blending before becoming
1253 finished petroleum products.
1254 [(99)] (100) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1255 software" means an item listed in Subsection [(99)] (100)(b) if that item is purchased or leased
1256 primarily to enable or facilitate one or more of the following to function:
1257 (i) telecommunications switching or routing equipment, machinery, or software; or
1258 (ii) telecommunications transmission equipment, machinery, or software.
1259 (b) The following apply to Subsection [(99)] (100)(a):
1260 (i) a pole;
1261 (ii) software;
1262 (iii) a supplementary power supply;
1263 (iv) temperature or environmental equipment or machinery;
1264 (v) test equipment;
1265 (vi) a tower; or

1266 (vii) equipment, machinery, or software that functions similarly to an item listed in
1267 Subsections [(99)] (100)(b)(i) through (vi) as determined by the commission by rule made in
1268 accordance with Subsection [(99)] (100)(c).
1269 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1270 commission may by rule define what constitutes equipment, machinery, or software that
1271 functions similarly to an item listed in Subsections [(99)] (100)(b)(i) through (vi).
1272 [(100)] (101) "Telecommunications equipment, machinery, or software required for
1273 911 service" means equipment, machinery, or software that is required to comply with 47
1274 C.F.R. Sec. 20.18.
1275 [(101)] (102) "Telecommunications maintenance or repair equipment, machinery, or
1276 software" means equipment, machinery, or software purchased or leased primarily to maintain
1277 or repair one or more of the following, regardless of whether the equipment, machinery, or
1278 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1279 of the following:
1280 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1281 (b) telecommunications switching or routing equipment, machinery, or software; or
1282 (c) telecommunications transmission equipment, machinery, or software.
1283 [(102)] (103) (a) "Telecommunications switching or routing equipment, machinery, or
1284 software" means an item listed in Subsection [(102)] (103)(b) if that item is purchased or
1285 leased primarily for switching or routing:
1286 (i) voice communications;
1287 (ii) data communications; or
1288 (iii) telephone service.
1289 (b) The following apply to Subsection [(102)] (103)(a):
1290 (i) a bridge;
1291 (ii) a computer;
1292 (iii) a cross connect;
1293 (iv) a modem;
1294 (v) a multiplexer;
1295 (vi) plug in circuitry;
1296 (vii) a router;

1297 (viii) software;
1298 (ix) a switch; or
1299 (x) equipment, machinery, or software that functions similarly to an item listed in
1300 Subsections [(102)] (103)(b)(i) through (ix) as determined by the commission by rule made in
1301 accordance with Subsection [(102)] (103)(c).
1302 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1303 commission may by rule define what constitutes equipment, machinery, or software that
1304 functions similarly to an item listed in Subsections [(102)] (103)(b)(i) through (ix).
1305 [(103)] (104) (a) "Telecommunications transmission equipment, machinery, or
1306 software" means an item listed in Subsection [(103)] (104)(b) if that item is purchased or
1307 leased primarily for sending, receiving, or transporting:
1308 (i) voice communications;
1309 (ii) data communications; or
1310 (iii) telephone service.
1311 (b) The following apply to Subsection [(103)] (104)(a):
1312 (i) an amplifier;
1313 (ii) a cable;
1314 (iii) a closure;
1315 (iv) a conduit;
1316 (v) a controller;
1317 (vi) a duplexer;
1318 (vii) a filter;
1319 (viii) an input device;
1320 (ix) an input/output device;
1321 (x) an insulator;
1322 (xi) microwave machinery or equipment;
1323 (xii) an oscillator;
1324 (xiii) an output device;
1325 (xiv) a pedestal;
1326 (xv) a power converter;
1327 (xvi) a power supply;

1328 (xvii) a radio channel;
1329 (xviii) a radio receiver;
1330 (xix) a radio transmitter;
1331 (xx) a repeater;
1332 (xxi) software;
1333 (xxii) a terminal;
1334 (xxiii) a timing unit;
1335 (xxiv) a transformer;
1336 (xxv) a wire; or
1337 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1338 Subsections [(103)] (104)(b)(i) through (xxv) as determined by the commission by rule made in
1339 accordance with Subsection [(103)] (104)(c).
1340 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1341 commission may by rule define what constitutes equipment, machinery, or software that
1342 functions similarly to an item listed in Subsections [(103)] (104)(b)(i) through (xxv).
1343 [(104)] (105) (a) "Telephone service" means a two-way transmission:
1344 (i) by:
1345 (A) wire;
1346 (B) radio;
1347 (C) lightwave; or
1348 (D) other electromagnetic means; and
1349 (ii) of one or more of the following:
1350 (A) a sign;
1351 (B) a signal;
1352 (C) writing;
1353 (D) an image;
1354 (E) sound;
1355 (F) a message;
1356 (G) data; or
1357 (H) other information of any nature.
1358 (b) "Telephone service" includes:

1359 (i) mobile telecommunications service;
1360 (ii) private communications service; or
1361 (iii) automated digital telephone answering service.
1362 (c) "Telephone service" does not include a service or a transaction that a state or a
1363 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1364 Tax Freedom Act, Pub. L. No. 105-277.
1365 [(105)] (106) Notwithstanding where a call is billed or paid, "telephone service
1366 address" means:
1367 (a) if the location described in this Subsection [(105)] (106)(a) is known, the location
1368 of the telephone service equipment:
1369 (i) to which a call is charged; and
1370 (ii) from which the call originates or terminates;
1371 (b) if the location described in Subsection [(105)] (106)(a) is not known but the
1372 location described in this Subsection [(105)] (106)(b) is known, the location of the origination
1373 point of the signal of the telephone service first identified by:
1374 (i) the telecommunications system of the seller; or
1375 (ii) if the system used to transport the signal is not that of the seller, information
1376 received by the seller from its service provider; or
1377 (c) if the locations described in Subsection [(105)] (106)(a) or (b) are not known, the
1378 location of a purchaser's primary place of use.
1379 [(106)] (107) (a) "Telephone service provider" means a person that:
1380 (i) owns, controls, operates, or manages a telephone service; and
1381 (ii) engages in an activity described in Subsection [(106)] (107)(a)(i) for the shared use
1382 with or resale to any person of the telephone service.
1383 (b) A person described in Subsection [(106)] (107)(a) is a telephone service provider
1384 whether or not the Public Service Commission of Utah regulates:
1385 (i) that person; or
1386 (ii) the telephone service that the person owns, controls, operates, or manages.
1387 [(107)] (108) "Tobacco" means:
1388 (a) a cigarette;
1389 (b) a cigar;

1390 (c) chewing tobacco;
1391 (d) pipe tobacco; or
1392 (e) any other item that contains tobacco.
1393 [(108)] (109) "Unassisted amusement device" means an amusement device, skill
1394 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1395 operate the amusement device, skill device, or ride device.
1396 [(109)] (110) (a) "Use" means the exercise of any right or power over tangible personal
1397 property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
1398 property, item, or service.
1399 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
1400 the regular course of business and held for resale.
1401 [(110)] (111) (a) Subject to Subsection [(110)] (111)(b), "vehicle" means the following
1402 that are required to be titled, registered, or titled and registered:
1403 (i) an aircraft as defined in Section 72-10-102 ;
1404 (ii) a vehicle as defined in Section 41-1a-102 ;
1405 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1406 (iv) a vessel as defined in Section 41-1a-102 .
1407 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1408 (i) a vehicle described in Subsection [(110)] (111)(a); or
1409 (ii) (A) a locomotive;
1410 (B) a freight car;
1411 (C) railroad work equipment; or
1412 (D) other railroad rolling stock.
1413 [(111)] (112) "Vehicle dealer" means a person engaged in the business of buying,
1414 selling, or exchanging a vehicle as defined in Subsection [(110)] (111).
1415 [(112)] (113) (a) Except as provided in Subsection [(112)] (113)(b), "waste energy
1416 facility" means a facility that generates electricity:
1417 (i) using as the primary source of energy waste materials that would be placed in a
1418 landfill or refuse pit if it were not used to generate electricity, including:
1419 (A) tires;
1420 (B) waste coal; or

1421 (C) oil shale; and
1422 (ii) in amounts greater than actually required for the operation of the facility.
1423 (b) "Waste energy facility" does not include a facility that incinerates:
1424 (i) municipal solid waste;
1425 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1426 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1427 [(113)] (114) "Watercraft" means a vessel as defined in Section 73-18-2 .
1428 [(114)] (115) "Wind energy" means wind used as the sole source of energy to produce
1429 electricity.
1430 [(115)] (116) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
1431 geographic location by the United States Postal Service.
1432 Section 6. Section 59-12-104 is amended to read:
1433 59-12-104. Exemptions.
1434 The following sales and uses are exempt from the taxes imposed by this chapter:
1435 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1436 under Chapter 13, Motor and Special Fuel Tax Act;
1437 (2) sales to the state, its institutions, and its political subdivisions; however, this
1438 exemption does not apply to sales of:
1439 (a) construction materials except:
1440 (i) construction materials purchased by or on behalf of institutions of the public
1441 education system as defined in Utah Constitution Article X, Section 2, provided the
1442 construction materials are clearly identified and segregated and installed or converted to real
1443 property which is owned by institutions of the public education system; and
1444 (ii) construction materials purchased by the state, its institutions, or its political
1445 subdivisions which are installed or converted to real property by employees of the state, its
1446 institutions, or its political subdivisions; or
1447 (b) tangible personal property in connection with the construction, operation,
1448 maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
1449 providing additional project capacity, as defined in Section 11-13-103 ;
1450 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1451 (i) the proceeds of each sale do not exceed $1; and

1452 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
1453 the cost of the item described in Subsection (3)(b) as goods consumed; and
1454 (b) Subsection (3)(a) applies to:
1455 (i) food and food ingredients; or
1456 (ii) prepared food;
1457 (4) sales of the following to a commercial airline carrier for in-flight consumption:
1458 (a) food and food ingredients;
1459 (b) prepared food; or
1460 (c) services related to Subsection (4)(a) or (b);
1461 (5) sales of parts and equipment for installation in aircraft operated by common carriers
1462 in interstate or foreign commerce;
1463 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
1464 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1465 exhibitor, distributor, or commercial television or radio broadcaster;
1466 (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
1467 property if the cleaning or washing of the tangible personal property is not assisted cleaning or
1468 washing of tangible personal property;
1469 (b) if a seller that sells at the same business location assisted cleaning or washing of
1470 tangible personal property and cleaning or washing of tangible personal property that is not
1471 assisted cleaning or washing of tangible personal property, the exemption described in
1472 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1473 or washing of the tangible personal property; and
1474 (c) for purposes of Subsection (7)(b) and in accordance with Title 63, Chapter 46a,
1475 Utah Administrative Rulemaking Act, the commission may make rules:
1476 (i) governing the circumstances under which sales are at the same business location;
1477 and
1478 (ii) establishing the procedures and requirements for a seller to separately account for
1479 sales of assisted cleaning or washing of tangible personal property;
1480 (8) sales made to or by religious or charitable institutions in the conduct of their regular
1481 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
1482 fulfilled;

1483 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1484 this state if the vehicle is:
1485 (a) not registered in this state; and
1486 (b) (i) not used in this state; or
1487 (ii) used in this state:
1488 (A) if the vehicle is not used to conduct business, for a time period that does not
1489 exceed the longer of:
1490 (I) 30 days in any calendar year; or
1491 (II) the time period necessary to transport the vehicle to the borders of this state; or
1492 (B) if the vehicle is used to conduct business, for the time period necessary to transport
1493 the vehicle to the borders of this state;
1494 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
1495 (i) the item is intended for human use; and
1496 (ii) (A) a prescription was issued for the item; or
1497 (B) the item was purchased by a hospital or other medical facility; and
1498 (b) (i) Subsection (10)(a) applies to:
1499 (A) a drug;
1500 (B) a syringe; or
1501 (C) a stoma supply; and
1502 (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1503 commission may by rule define the terms:
1504 (A) "syringe"; or
1505 (B) "stoma supply";
1506 (11) sales or use of property, materials, or services used in the construction of or
1507 incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
1508 (12) (a) sales of an item described in Subsection (12)(c) served by:
1509 (i) the following if the item described in Subsection (12)(c) is not available to the
1510 general public:
1511 (A) a church; or
1512 (B) a charitable institution;
1513 (ii) an institution of higher education if:

1514 (A) the item described in Subsection (12)(c) is not available to the general public; or
1515 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1516 offered by the institution of higher education; or
1517 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1518 (i) a medical facility; or
1519 (ii) a nursing facility; and
1520 (c) Subsections (12)(a) and (b) apply to:
1521 (i) food and food ingredients;
1522 (ii) prepared food; or
1523 (iii) alcoholic beverages;
1524 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1525 by a person:
1526 (i) regardless of the number of transactions involving the sale of that tangible personal
1527 property by that person; and
1528 (ii) not regularly engaged in the business of selling that type of tangible personal
1529 property;
1530 (b) this Subsection (13) does not apply if:
1531 (i) the sale is one of a series of sales of a character to indicate that the person is
1532 regularly engaged in the business of selling that type of tangible personal property;
1533 (ii) the person holds that person out as regularly engaged in the business of selling that
1534 type of tangible personal property;
1535 (iii) the person sells an item of tangible personal property that the person purchased as
1536 a sale that is exempt under Subsection (25); or
1537 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1538 this state in which case the tax is based upon:
1539 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
1540 sold; or
1541 (B) in the absence of a bill of sale or other written evidence of value, the fair market
1542 value of the vehicle or vessel being sold at the time of the sale as determined by the
1543 commission; and
1544 (c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

1545 commission shall make rules establishing the circumstances under which:
1546 (i) a person is regularly engaged in the business of selling a type of tangible personal
1547 property;
1548 (ii) a sale of tangible personal property is one of a series of sales of a character to
1549 indicate that a person is regularly engaged in the business of selling that type of tangible
1550 personal property; or
1551 (iii) a person holds that person out as regularly engaged in the business of selling a type
1552 of tangible personal property;
1553 (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
1554 July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
1555 facility, for the following:
1556 (i) machinery and equipment that:
1557 (A) is used:
1558 (I) for a manufacturing facility other than a manufacturing facility that is a scrap
1559 recycler described in Subsection 59-12-102 (48)(b):
1560 (Aa) in the manufacturing process; and
1561 (Bb) to manufacture an item sold as tangible personal property; or
1562 (II) for a manufacturing facility that is a scrap recycler described in Subsection
1563 59-12-102 (48)(b), to process an item sold as tangible personal property; and
1564 (B) has an economic life of three or more years; and
1565 (ii) normal operating repair or replacement parts that:
1566 (A) have an economic life of three or more years; and
1567 (B) are used:
1568 (I) for a manufacturing facility in the state other than a manufacturing facility that is a
1569 scrap recycler described in Subsection 59-12-102 (48)(b), in the manufacturing process; or
1570 (II) for a manufacturing facility in the state that is a scrap recycler described in
1571 Subsection 59-12-102 (48)(b), to process an item sold as tangible personal property;
1572 (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
1573 manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
1574 for the following:
1575 (A) machinery and equipment that:

1576 (I) is used:
1577 (Aa) in the manufacturing process; and
1578 (Bb) to manufacture an item sold as tangible personal property; and
1579 (II) has an economic life of three or more years; and
1580 (B) normal operating repair or replacement parts that:
1581 (I) are used in the manufacturing process in a manufacturing facility in the state; and
1582 (II) have an economic life of three or more years; and
1583 (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
1584 2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
1585 claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
1586 (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
1587 and
1588 (B) in accordance with Section 59-12-110 ;
1589 (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
1590 by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
1591 NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
1592 Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
1593 of the 2002 North American Industry Classification System of the federal Executive Office of
1594 the President, Office of Management and Budget:
1595 (i) machinery and equipment that:
1596 (A) are used in:
1597 (I) the production process, other than the pr