Second 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 . provides a state and local sales and use tax exemption relating to a privately owned
27 golf course; and
28 . makes technical changes.
29 Monies Appropriated in this Bill:
30 None
31 Other Special Clauses:
32 This bill takes effect on July 1, 2008.
33 Utah Code Sections Affected:
34 AMENDS:
35 41-1a-422, as last amended by Laws of Utah 2007, Chapters 173, 179, and 325
36 41-1a-1211, as last amended by Laws of Utah 2007, Chapter 274
37 59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
38 59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
39 295, and 329
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 41-1a-422 is amended to read:
43 41-1a-422. Support special group license plates -- Contributor -- Voluntary
44 contribution collection procedures -- Circumstances under which commission may not
45 issue or renew -- Report to Transportation Interim Committee.
46 (1) As used in this section:
47 (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
48 has donated or in whose name at least $25 has been donated to:
49 (A) a scholastic scholarship fund of a single named institution;
50 (B) the Department of Veterans' Affairs for veterans' programs;
51 (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
52 Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
53 access, and management of wildlife habitat;
54 (D) the Department of Agriculture and Food for the benefit of conservation districts;
55 (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
56 (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with

57 the donation evenly divided between the two;
58 (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
59 council as specified by the contributor;
60 (H) No More Homeless Pets in Utah for distribution to organizations or individuals
61 that provide spay and neuter programs that subsidize the sterilization of domestic animals;
62 (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
63 development programs;
64 (J) the Utah Association of Public School Foundations to support public education; or
65 (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 to
66 assist people who have severe housing needs.
67 (ii) (A) For a veterans' special group license plate, "contributor" means a person who
68 has donated or in whose name at least a $25 donation at the time of application and $10 annual
69 donation thereafter has been made.
70 (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
71 person who:
72 (I) has donated or in whose name at least $30 has been donated at the time of
73 application and annually after the time of application; and
74 (II) is a member of a trade organization for real estate licensees that has more than
75 15,000 Utah members.
76 (b) "Institution" means a state institution of higher education as defined under Section
77 53B-3-102 or a private institution of higher education in the state accredited by a regional or
78 national accrediting agency recognized by the United States Department of Education.
79 (2) (a) An applicant for original or renewal collegiate special group license plates under
80 Subsection (1)(a)(i) must be a contributor to the institution named in the application and
81 present the original contribution verification form under Subsection (2)(b) or make a
82 contribution to the division at the time of application under Subsection (3).
83 (b) An institution with a support special group license plate shall issue to a contributor
84 a verification form designed by the commission containing:
85 (i) the name of the contributor;
86 (ii) the institution to which a donation was made;
87 (iii) the date of the donation; and

88 (iv) an attestation that the donation was for a scholastic scholarship.
89 (c) The state auditor may audit each institution to verify that the moneys collected by
90 the institutions from contributors are used for scholastic scholarships.
91 (d) After an applicant has been issued collegiate license plates or renewal decals, the
92 commission shall charge the institution whose plate was issued, a fee determined in accordance
93 with Section 63-38-3.2 for management and administrative expenses incurred in issuing and
94 renewing the collegiate license plates.
95 (e) If the contribution is made at the time of application, the contribution shall be
96 collected, treated, and deposited as provided under Subsection (3).
97 (3) (a) An applicant for original or renewal support special group license plates under
98 this section must be a contributor to the sponsoring organization associated with the license
99 plate.
100 (b) This contribution shall be:
101 (i) unless collected by the named institution under Subsection (2), collected by the
102 division;
103 (ii) considered a voluntary contribution for the funding of the activities specified under
104 this section and not a motor vehicle registration fee; and
105 (iii) deposited into the appropriate account less actual administrative costs associated
106 with issuing the license plates.
107 (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
108 registration or renewal of registration.
109 (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
110 the division when issuing original:
111 (i) snowmobile license plates; or
112 (ii) conservation license plates.
113 (4) Veterans' license plates shall display one of the symbols representing the Army,
114 Navy, Air Force, Marines, Coast Guard, or American Legion.
115 (5) (a) As used in this section:
116 (i) "Business day" means a day other than a Saturday, Sunday, or legal holiday.
117 (ii) "Type of support special group license plate" means a license plate issued with
118 respect to one entity listed in Subsection (1)(a)(i).

119 (b) Notwithstanding the other provisions of this section and subject to Subsections
120 (5)(c) and (d), beginning on the July 1 immediately following the last day of the three-year
121 period described in Subsection (5)(c)(i), the commission may not issue or renew a type of
122 support special group license plate under this section if the commission determines that, for
123 each month of the three-year period described in Subsection (5)(c)(i), there are 300 or fewer
124 vehicles registered under Part 2, Registration, that are allowed to display the type of support
125 special group license plate.
126 (c) (i) (A) Subject to Subsection (5)(c)(i)(B), the three-year period described in
127 Subsection (5)(b) is a three consecutive year time period that begins on the October 1
128 immediately following the last day of a calendar year in which on the last business day of each
129 month of that calendar year there are 300 or fewer vehicles registered under Part 2,
130 Registration, that are allowed to display a type of support special group license plate.
131 (B) For purposes of Subsection (5)(c)(i)(A), if a type of support special group license
132 plate is not in existence for a portion of a calendar year, that calendar year is not considered to
133 be a calendar year in which on the last business day of each month of that calendar year there
134 are 300 or fewer vehicles registered under Part 2, Registration, that are allowed to display a
135 type of support special group license plate.
136 (ii) For purposes of determining whether for each month of a three-year period there
137 are 300 or fewer vehicles registered under Part 2, Registration, that are allowed to display a
138 type of support special group license plate, the commission shall examine its motor vehicle
139 database on the last business day of each month to determine the number of vehicles that are
140 allowed to display a type of support special group license plate.
141 (d) If the commission determines that, for each month of the three-year period
142 described in Subsection (5)(c)(i), there are 300 or fewer vehicles registered under Part 2,
143 Registration, that are allowed to display a type of support special group license plate, the
144 commission shall report its intent to not issue or renew that type of support special group
145 license plate:
146 (i) to the Transportation Interim Committee; and
147 (ii) on or before the November interim meeting immediately following the last day of
148 the three-year period described in Subsection (5)(c).
149 Section 2. Section 41-1a-1211 is amended to read:

150 41-1a-1211. License plate fees -- Application fees for issuance and renewal of
151 personalized and special group license plates -- Replacement fee for license plates --
152 Postage fees.
153 (1) (a) Except as provided in [Subsection] Subsections (11) and (12), a license plate fee
154 of $5 per set shall be paid to the division for the issuance of any new license plate under Part 4,
155 License Plates and Registration Indicia.
156 (b) The license plate fee shall be deposited as follows:
157 [(a)] (i) $4 as provided in Section 41-1a-1201 ; and
158 [(b)] (ii) $1 in the Transportation Fund.
159 (2) An applicant for original issuance of personalized license plates issued under
160 Section 41-1a-410 shall pay a $50 per set license plate application fee in addition to the fee
161 required in Subsection (1).
162 (3) Beginning July 1, 2003, a person who applies for a special group license plate shall
163 pay a $5 fee for the original set of license plates in addition to the fee required under
164 Subsection (1).
165 (4) An applicant for original issuance of personalized special group license plates shall
166 pay the license plate application fees required in Subsection (2) in addition to the license plate
167 fees and license plate application fees established under Subsections (1) and (3).
168 (5) An applicant for renewal of personalized license plates issued under Section
169 41-1a-410 shall pay a $10 per set application fee.
170 (6) (a) A fee of $5 shall be paid to the division for the replacement of any license plate
171 issued under Part 4, License Plates and Registration Indicia.
172 (b) The license plate fee shall be deposited as follows:
173 [(a)] (i) $4 as provided in Section 41-1a-1201 ; and
174 [(b)] (ii) $1 in the Transportation Fund.
175 (7) The division may charge a fee established under Section 63-38-3.2 to recover its
176 costs for the replacement of decals issued under Section 41-1a-418 .
177 (8) The division may charge a fee established under Section 63-38-3.2 to recover the
178 cost of issuing stickers under Section 41-1a-416 .
179 (9) In addition to any other fees required by this section, the division shall assess a fee
180 established under Section 63-38-3.2 to cover postage expenses if new or replacement license

181 plates are mailed to the applicant.
182 (10) The fees required under this section are separate from and in addition to
183 registration fees required under Section 41-1a-1206 .
184 (11) (a) An applicant for a license plate issued under Section 41-1a-407 is not subject
185 to the license plate fee under Subsection (1).
186 (b) An applicant for a Purple Heart special group license plate issued in accordance
187 with Section 41-1a-421 is exempt from the fees under Subsections (1), (3), and (7).
188 (12) A person is exempt from the fee under Subsection (1) or (6) if:
189 (a) the person is issued a support special group license plate in accordance with Section
190 41-1a-422 ;
191 (b) after the person is issued the support special group license plate, the commission
192 determines in accordance with Subsection 41-1a-422 (5) that the support special group license
193 plate described in Subsection (12)(a) is of a type of support special group license plate that the
194 commission may not issue or renew; and
195 (c) upon renewal or reissuance, the person is required to replace the support special
196 group license plate with a license plate that is not of the type of support special group license
197 plate that the commission may not issue or renew.
198 Section 3. Section 59-12-102 is amended to read:
199 59-12-102. Definitions.
200 As used in this chapter:
201 (1) (a) "Admission or user fees" includes season passes.
202 (b) "Admission or user fees" does not include annual membership dues to private
203 organizations.
204 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
205 Section 59-12-102.1 .
206 (3) "Agreement combined tax rate" means the sum of the tax rates:
207 (a) listed under Subsection (4); and
208 (b) that are imposed within a local taxing jurisdiction.
209 (4) "Agreement sales and use tax" means a tax imposed under:
210 (a) Subsection 59-12-103 (2)(a)(i);
211 (b) Subsection 59-12-103 (2)(b)(i);

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

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

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

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

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

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