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Third Substitute S.B. 245
Senator Sheldon L. Killpack proposes the following substitute bill:
1
FUNDING RELATING TO AIRPORTS, HIGHWAYS,
2
AND PUBLIC TRANSIT
3
2008 GENERAL SESSION
4
STATE OF UTAH
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Chief Sponsor: Curtis S. Bramble
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House Sponsor:
David Clark
7
8
LONG TITLE
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General Description:
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This bill amends the Sales and Use Tax Act and the Transportation Code relating to a
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local sales and use tax to fund tourism, recreation, cultural, convention, and airport
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facilities, a local sales and use tax to fund certain airport, highway, or public transit
13
projects or services, and financing of certain fixed guideways with certain airport
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revenue.
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Highlighted Provisions:
16
This bill:
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. addresses an audit relating to the local sales and use tax to fund tourism, recreation,
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cultural, convention, and airport facilities;
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. repeals a purpose statement;
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. provides a part title;
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. defines terms;
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. provides that a county legislative body may expend certain local sales and use tax
23
revenues for an airport facility in addition to other purposes allowed by statute;
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. addresses provisions relating to ordinances and bonding for purposes of the local
25
sales and use tax to fund tourism, recreation, cultural, convention, and airport
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facilities;
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. authorizes a county of the second class to impose a local option sales and use tax to
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fund certain airport, highway, or public transit projects or services;
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. addresses the procedures and requirements for imposing the local option sales and
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use tax to fund certain airport, highway, or public transit projects or services,
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including providing that the sales and use tax is an agreement sales and use tax;
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. modifies the sources of funding for the Local Transportation Corridor Preservation
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Fund;
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. creates a special revenue fund known as the County of the Second Class State
35
Highway Projects Fund, including:
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. addressing funding of the fund; and
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. addressing the purposes for which fund monies may be expended;
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. provides that an airport operator may not use airport revenue to contribute to
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constructing, equipping, maintaining, or operating a fixed guideway; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
46
AMENDS:
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17-31-5.5, as last amended by Laws of Utah 2007, Chapter 3
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59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
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59-12-602, as last amended by Laws of Utah 1995, Chapter 248
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59-12-603, as last amended by Laws of Utah 2007, Chapters 3, 9, and 219
51
72-2-117.5, as last amended by Laws of Utah 2007, Chapters 181 and 201
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72-10-102, as last amended by Laws of Utah 2003, Chapter 183
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ENACTS:
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59-12-601.1, Utah Code Annotated 1953
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59-12-1901, Utah Code Annotated 1953
56
59-12-1902, Utah Code Annotated 1953
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59-12-1903, Utah Code Annotated 1953
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72-2-121.2, Utah Code Annotated 1953
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72-10-215, Utah Code Annotated 1953
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REPEALS:
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59-12-601, as last amended by Laws of Utah 1991, Chapter 265
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
17-31-5.5
is amended to read:
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17-31-5.5. Independent audit -- Report to county legislative body -- Content.
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(1) The legislative body of each county imposing the transient room tax provided for in
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Section
59-12-301
shall annually engage an independent auditor to perform an audit to verify
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that transient room tax funds are used only as authorized by this chapter and to report the
69
findings of the audit to the county legislative body.
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(2) Subsection (1) applies to the tourism, recreation, cultural, [and] convention, and
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airport facilities tax provided for in Section
59-12-603
, except that the audit verification
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required under this Subsection (2) shall be for the uses authorized under Section
59-12-603
.
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(3) The report required under Subsection (1) shall include a breakdown of expenditures
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into the following categories:
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(a) for the transient room tax, identification of expenditures for:
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(i) establishing and promoting:
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(A) recreation;
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(B) tourism;
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(C) film production; and
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(D) conventions;
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(ii) acquiring, leasing, constructing, furnishing, or operating:
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(A) convention meeting rooms;
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(B) exhibit halls;
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(C) visitor information centers;
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(D) museums; and
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(E) related facilities;
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(iii) acquiring or leasing land required for or related to the purposes listed in
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Subsection (3)(a)(ii);
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(iv) mitigation costs as identified in Subsection
17-31-2
(1)(d); and
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(v) making the annual payment of principal, interest, premiums, and necessary reserves
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for any or the aggregate of bonds issued to pay for costs referred to in Subsections
92
17-31-2
(2)(c) and (3)(a); and
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(b) for the tourism, recreation, cultural, [and] convention, and airport facilities tax,
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identification of expenditures for:
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(i) financing tourism promotion, which means an activity to develop, encourage,
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solicit, or market tourism that attracts transient guests to the county, including planning,
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product development, and advertising;
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(ii) the development, operation, and maintenance of the following facilities as defined
99
in Section
59-12-602
:
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(A) [tourist facilities] an airport facility;
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(B) [recreation facilities] a convention facility;
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(C) a cultural [facilities; and] facility;
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(D) [convention facilities] a recreation facility; and
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(E) a tourist facility; and
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(iii) a pledge as security for evidences of indebtedness under Subsection
59-12-603
(3).
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(4) A county legislative body shall provide a copy of a report it receives under this
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section to:
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(a) the Governor's Office of Economic Development;
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(b) its tourism tax advisory board; and
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(c) the Office of the Legislative Fiscal Analyst.
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Section 2.
Section
59-12-102
is amended to read:
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59-12-102. Definitions.
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As used in this chapter:
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(1) (a) "Admission or user fees" includes season passes.
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(b) "Admission or user fees" does not include annual membership dues to private
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organizations.
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(2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
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Section
59-12-102.1
.
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(3) "Agreement combined tax rate" means the sum of the tax rates:
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(a) listed under Subsection (4); and
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(b) that are imposed within a local taxing jurisdiction.
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(4) "Agreement sales and use tax" means a tax imposed under:
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(a) Subsection
59-12-103
(2)(a)(i);
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(b) Subsection
59-12-103
(2)(b)(i);
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(c) Subsection
59-12-103
(2)(c)(i);
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(d) Subsection
59-12-103
(2)(d)(i);
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(e) Subsection
59-12-103
(2)(e)(ii)(A);
128
(f) Subsection
59-12-103
(2)(e)(iii)(A);
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(g) Section
59-12-204
;
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(h) Section
59-12-401
;
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(i) Section
59-12-402
;
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(j) Section
59-12-501
;
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(k) Section
59-12-502
;
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(l) Section
59-12-703
;
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(m) Section
59-12-802
;
136
(n) Section
59-12-804
;
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(o) Section
59-12-1001
;
138
(p) Section
59-12-1102
;
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(q) Section
59-12-1302
;
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(r) Section
59-12-1402
;
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(s) Section
59-12-1503
; [or]
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(t) Section
59-12-1703
[.]; or
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(u) Section
59-12-1903
.
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(5) "Aircraft" is as defined in Section
72-10-102
.
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(6) "Alcoholic beverage" means a beverage that:
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(a) is suitable for human consumption; and
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(b) contains .5% or more alcohol by volume.
148
(7) "Area agency on aging" is as defined in Section
62A-3-101
.
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(8) "Assisted amusement device" means an amusement device, skill device, or ride
150
device that is started and stopped by an individual:
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(a) who is not the purchaser or renter of the right to use or operate the amusement
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device, skill device, or ride device; and
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(b) at the direction of the seller of the right to use the amusement device, skill device,
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or ride device.
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(9) "Assisted cleaning or washing of tangible personal property" means cleaning or
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washing of tangible personal property if the cleaning or washing labor is primarily performed
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by an individual:
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(a) who is not the purchaser of the cleaning or washing of the tangible personal
159
property; and
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(b) at the direction of the seller of the cleaning or washing of the tangible personal
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property.
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(10) "Authorized carrier" means:
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(a) in the case of vehicles operated over public highways, the holder of credentials
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indicating that the vehicle is or will be operated pursuant to both the International Registration
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Plan and the International Fuel Tax Agreement;
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(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
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certificate or air carrier's operating certificate; or
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(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
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stock, the holder of a certificate issued by the United States Surface Transportation Board.
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(11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
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following that is used as the primary source of energy to produce fuel or electricity:
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(i) material from a plant or tree; or
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(ii) other organic matter that is available on a renewable basis, including:
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(A) slash and brush from forests and woodlands;
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(B) animal waste;
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(C) methane produced:
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(I) at landfills; or
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(II) as a byproduct of the treatment of wastewater residuals;
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(D) aquatic plants; and
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(E) agricultural products.
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(b) "Biomass energy" does not include:
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(i) black liquor;
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(ii) treated woods; or
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(iii) biomass from municipal solid waste other than methane produced:
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(A) at landfills; or
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(B) as a byproduct of the treatment of wastewater residuals.
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(12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
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property if:
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(i) one or more of the items of tangible personal property is food and food ingredients;
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and
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(ii) the items of tangible personal property are:
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(A) distinct and identifiable; and
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(B) sold for one price that is not itemized.
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(b) "Bundled transaction" does not include the sale of tangible personal property if the
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sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
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tangible personal property included in the transaction.
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(c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
198
and identifiable does not include:
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(i) packaging that:
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(A) accompanies the sale of the tangible personal property; and
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(B) is incidental or immaterial to the sale of the tangible personal property;
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(ii) tangible personal property provided free of charge with the purchase of another
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item of tangible personal property; or
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(iii) an item of tangible personal property included in the definition of "purchase
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price."
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(d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
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provided free of charge with the purchase of another item of tangible personal property if the
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sales price of the purchased item of tangible personal property does not vary depending on the
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inclusion of the tangible personal property provided free of charge.
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(13) "Certified automated system" means software certified by the governing board of
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the agreement in accordance with Section
59-12-102.1
that:
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(a) calculates the agreement sales and use tax imposed within a local taxing
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jurisdiction:
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(i) on a transaction; and
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(ii) in the states that are members of the agreement;
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(b) determines the amount of agreement sales and use tax to remit to a state that is a
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member of the agreement; and
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(c) maintains a record of the transaction described in Subsection (13)(a)(i).
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(14) "Certified service provider" means an agent certified:
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(a) by the governing board of the agreement in accordance with Section
59-12-102.1
;
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and
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(b) to perform all of a seller's sales and use tax functions for an agreement sales and
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use tax other than the seller's obligation under Section
59-12-107.4
to remit a tax on the seller's
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own purchases.
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(15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
226
suitable for general use.
227
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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commission shall make rules:
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(i) listing the items that constitute "clothing"; and
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(ii) that are consistent with the list of items that constitute "clothing" under the
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agreement.
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(16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
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(17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
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fuels that does not constitute industrial use under Subsection (42) or residential use under
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Subsection (80).
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(18) (a) "Common carrier" means a person engaged in or transacting the business of
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transporting passengers, freight, merchandise, or other property for hire within this state.
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(b) (i) "Common carrier" does not include a person who, at the time the person is
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traveling to or from that person's place of employment, transports a passenger to or from the
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passenger's place of employment.
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(ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
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Utah Administrative Rulemaking Act, the commission may make rules defining what
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constitutes a person's place of employment.
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(19) "Component part" includes:
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(a) poultry, dairy, and other livestock feed, and their components;
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(b) baling ties and twine used in the baling of hay and straw;
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(c) fuel used for providing temperature control of orchards and commercial
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greenhouses doing a majority of their business in wholesale sales, and for providing power for
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off-highway type farm machinery; and
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(d) feed, seeds, and seedlings.
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(20) "Computer" means an electronic device that accepts information:
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(a) (i) in digital form; or
253
(ii) in a form similar to digital form; and
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(b) manipulates that information for a result based on a sequence of instructions.
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(21) "Computer software" means a set of coded instructions designed to cause:
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(a) a computer to perform a task; or
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(b) automatic data processing equipment to perform a task.
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(22) "Construction materials" means any tangible personal property that will be
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converted into real property.
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(23) "Delivered electronically" means delivered to a purchaser by means other than
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tangible storage media.
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(24) (a) "Delivery charge" means a charge:
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(i) by a seller of:
264
(A) tangible personal property; or
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(B) services; and
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(ii) for preparation and delivery of the tangible personal property or services described
267
in Subsection (24)(a)(i) to a location designated by the purchaser.
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(b) "Delivery charge" includes a charge for the following:
269
(i) transportation;
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(ii) shipping;
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(iii) postage;
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(iv) handling;
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(v) crating; or
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(vi) packing.
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(25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
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(i) a bridge;
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(ii) a crown if that crown covers at least 75% of a tooth structure;
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(iii) a denture;
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(iv) an implant;
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(v) an orthodontic device designed to:
281
(A) retain the position or spacing of teeth; and
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(B) replace a missing tooth;
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(vi) a partial denture; or
284
(vii) a device similar to Subsections (25)(a)(i) through (vi).
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(b) "Dental prosthesis" does not include an appliance or device, other than a device
286
described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
287
apply force to the teeth and their supporting structures to:
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(i) produce changes in their relationship to each other; and
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(ii) control their growth and development.
290
(26) "Dietary supplement" means a product, other than tobacco, that:
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(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
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(i) a vitamin;
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(ii) a mineral;
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(iii) an herb or other botanical;
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(iv) an amino acid;
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(v) a dietary substance for use by humans to supplement the diet by increasing the total
298
dietary intake; or
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(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
300
described in Subsections (26)(b)(i) through (v);
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(c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
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(A) tablet form;
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(B) capsule form;
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(C) powder form;
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(D) softgel form;
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(E) gelcap form; or
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(F) liquid form; or
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(ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
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a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
310
(A) as conventional food; and
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(B) for use as a sole item of:
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(I) a meal; or
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(II) the diet; and
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(d) is required to be labeled as a dietary supplement:
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(i) identifiable by the "Supplemental Facts" box found on the label; and
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(ii) as required by 21 C.F.R. Sec. 101.36.
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(27) (a) "Direct mail" means printed material delivered or distributed by United States
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mail or other delivery service:
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(i) to:
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(A) a mass audience; or
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(B) addressees on a mailing list provided by a purchaser of the mailing list; and
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(ii) if the cost of the printed material is not billed directly to the recipients.
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(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
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purchaser to a seller of direct mail for inclusion in a package containing the printed material.
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(c) "Direct mail" does not include multiple items of printed material delivered to a
326
single address.
327
(28) (a) "Disposable home medical equipment or supplies" means medical equipment
328
or supplies that:
329
(i) cannot withstand repeated use; and
330
(ii) are purchased by, for, or on behalf of a person other than:
331
(A) a health care facility as defined in Section
26-21-2
;
332
(B) a health care provider as defined in Section
78-14-3
;
333
(C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
334
(D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
335
(b) "Disposable home medical equipment or supplies" does not include:
336
(i) a drug;
337
(ii) durable medical equipment;
338
(iii) a hearing aid;
339
(iv) a hearing aid accessory;
340
(v) mobility enhancing equipment; or
341
(vi) tangible personal property used to correct impaired vision, including:
342
(A) eyeglasses; or
343
(B) contact lenses.
344
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
345
commission may by rule define what constitutes medical equipment or supplies.
346
(29) (a) "Drug" means a compound, substance, or preparation, or a component of a
347
compound, substance, or preparation that is:
348
(i) recognized in:
349
(A) the official United States Pharmacopoeia;
350
(B) the official Homeopathic Pharmacopoeia of the United States;
351
(C) the official National Formulary; or
352
(D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
353
(ii) intended for use in the:
354
(A) diagnosis of disease;
355
(B) cure of disease;
356
(C) mitigation of disease;
357
(D) treatment of disease; or
358
(E) prevention of disease; or
359
(iii) intended to affect:
360
(A) the structure of the body; or
361
(B) any function of the body.
362
(b) "Drug" does not include:
363
(i) food and food ingredients;
364
(ii) a dietary supplement;
365
(iii) an alcoholic beverage; or
366
(iv) a prosthetic device.
367
(30) (a) Except as provided in Subsection (30)(c), "durable medical equipment" means
368
equipment that:
369
(i) can withstand repeated use;
370
(ii) is primarily and customarily used to serve a medical purpose;
371
(iii) generally is not useful to a person in the absence of illness or injury; and
372
(iv) is not worn in or on the body.
373
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
374
equipment described in Subsection (30)(a).
375
(c) Notwithstanding Subsection (30)(a), "durable medical equipment" does not include
376
mobility enhancing equipment.
377
(31) "Electronic" means:
378
(a) relating to technology; and
379
(b) having:
380
(i) electrical capabilities;
381
(ii) digital capabilities;
382
(iii) magnetic capabilities;
383
(iv) wireless capabilities;
384
(v) optical capabilities;
385
(vi) electromagnetic capabilities; or
386
(vii) capabilities similar to Subsections (31)(b)(i) through (vi).
387
(32) "Employee" is as defined in Section
59-10-401
.
388
(33) "Fixed guideway" means a public transit facility that uses and occupies:
389
(a) rail for the use of public transit; or
390
(b) a separate right-of-way for the use of public transit.
391
(34) (a) "Food and food ingredients" means substances:
392
(i) regardless of whether the substances are in:
393
(A) liquid form;
394
(B) concentrated form;
395
(C) solid form;
396
(D) frozen form;
397
(E) dried form; or
398
(F) dehydrated form; and
399
(ii) that are:
400
(A) sold for:
401
(I) ingestion by humans; or
402
(II) chewing by humans; and
403
(B) consumed for the substance's:
404
(I) taste; or
405
(II) nutritional value.
406
(b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).
407
(c) "Food and food ingredients" does not include:
408
(i) an alcoholic beverage;
409
(ii) tobacco; or
410
(iii) prepared food.
411
(35) (a) "Fundraising sales" means sales:
412
(i) (A) made by a school; or
413
(B) made by a school student;
414
(ii) that are for the purpose of raising funds for the school to purchase equipment,
415
materials, or provide transportation; and
416
(iii) that are part of an officially sanctioned school activity.
417
(b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity"
418
means a school activity:
419
(i) that is conducted in accordance with a formal policy adopted by the school or school
420
district governing the authorization and supervision of fundraising activities;
421
(ii) that does not directly or indirectly compensate an individual teacher or other
422
educational personnel by direct payment, commissions, or payment in kind; and
423
(iii) the net or gross revenues from which are deposited in a dedicated account
424
controlled by the school or school district.
425
(36) "Geothermal energy" means energy contained in heat that continuously flows
426
outward from the earth that is used as the sole source of energy to produce electricity.
427
(37) "Governing board of the agreement" means the governing board of the agreement
428
that is:
429
(a) authorized to administer the agreement; and
430
(b) established in accordance with the agreement.
431
(38) (a) For purposes of Subsection
59-12-104
(41), "governmental entity" means:
432
(i) the executive branch of the state, including all departments, institutions, boards,
433
divisions, bureaus, offices, commissions, and committees;
434
(ii) the judicial branch of the state, including the courts, the Judicial Council, the
435
Office of the Court Administrator, and similar administrative units in the judicial branch;
436
(iii) the legislative branch of the state, including the House of Representatives, the
437
Senate, the Legislative Printing Office, the Office of Legislative Research and General
438
Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
439
Analyst;
440
(iv) the National Guard;
441
(v) an independent entity as defined in Section
63E-1-102
; or
442
(vi) a political subdivision as defined in Section
17B-1-102
.
443
(b) "Governmental entity" does not include the state systems of public and higher
444
education, including:
445
(i) a college campus of the Utah College of Applied Technology;
446
(ii) a school;
447
(iii) the State Board of Education;
448
(iv) the State Board of Regents; or
449
(v) a state institution of higher education as defined in Section
53B-3-102
.
450
(39) (a) "Hearing aid" means:
451
(i) an instrument or device having an electronic component that is designed to:
452
(A) (I) improve impaired human hearing; or
453
(II) correct impaired human hearing; and
454
(B) (I) be worn in the human ear; or
455
(II) affixed behind the human ear;
456
(ii) an instrument or device that is surgically implanted into the cochlea; or
457
(iii) a telephone amplifying device.
458
(b) "Hearing aid" does not include:
459
(i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
460
having an electronic component that is designed to be worn on the body;
461
(ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
462
designed to be used by one individual, including:
463
(A) a personal amplifying system;
464
(B) a personal FM system;
465
(C) a television listening system; or
466
(D) a device or system similar to a device or system described in Subsections
467
(39)(b)(ii)(A) through (C); or
468
(iii) an assistive listening device or system designed to be used by more than one
469
individual, including:
470
(A) a device or system installed in:
471
(I) an auditorium;
472
(II) a church;
473
(III) a conference room;
474
(IV) a synagogue; or
475
(V) a theater; or
476
(B) a device or system similar to a device or system described in Subsections
477
(39)(b)(iii)(A)(I) through (V).
478
(40) (a) "Hearing aid accessory" means a hearing aid:
479
(i) component;
480
(ii) attachment; or
481
(iii) accessory.
482
(b) "Hearing aid accessory" includes:
483
(i) a hearing aid neck loop;
484
(ii) a hearing aid cord;
485
(iii) a hearing aid ear mold;
486
(iv) hearing aid tubing;
487
(v) a hearing aid ear hook; or
488
(vi) a hearing aid remote control.
489
(c) "Hearing aid accessory" does not include:
490
(i) a component, attachment, or accessory designed to be used only with an:
491
(A) instrument or device described in Subsection (39)(b)(i); or
492
(B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or
493
(ii) a hearing aid battery.
494
(41) "Hydroelectric energy" means water used as the sole source of energy to produce
495
electricity.
496
(42) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
497
other fuels:
498
(a) in mining or extraction of minerals;
499
(b) in agricultural operations to produce an agricultural product up to the time of
500
harvest or placing the agricultural product into a storage facility, including:
501
(i) commercial greenhouses;
502
(ii) irrigation pumps;
503
(iii) farm machinery;
504
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
505
registered under Title 41, Chapter 1a, Part 2, Registration; and
506
(v) other farming activities;
507
(c) in manufacturing tangible personal property at an establishment described in SIC
508
Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
509
Executive Office of the President, Office of Management and Budget;
510
(d) by a scrap recycler if:
511
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
512
one or more of the following items into prepared grades of processed materials for use in new
513
products:
514
(A) iron;
515
(B) steel;
516
(C) nonferrous metal;
517
(D) paper;
518
(E) glass;
519
(F) plastic;
520
(G) textile; or
521
(H) rubber; and
522
(ii) the new products under Subsection (42)(d)(i) would otherwise be made with
523
nonrecycled materials; or
524
(e) in producing a form of energy or steam described in Subsection
54-2-1
(2)(a) by a
525
cogeneration facility as defined in Section
54-2-1
.
526
(43) (a) Except as provided in Subsection (43)(b), "installation charge" means a charge
527
for installing tangible personal property.
528
(b) Notwithstanding Subsection (43)(a), "installation charge" does not include a charge
529
for repairs or renovations of tangible personal property.
530
(44) (a) "Lease" or "rental" means a transfer of possession or control of tangible
531
personal property for:
532
(i) (A) a fixed term; or
533
(B) an indeterminate term; and
534
(ii) consideration.
535
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
536
amount of consideration may be increased or decreased by reference to the amount realized
537
upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
538
Code.
539
(c) "Lease" or "rental" does not include:
540
(i) a transfer of possession or control of property under a security agreement or
541
deferred payment plan that requires the transfer of title upon completion of the required
542
payments;
543
(ii) a transfer of possession or control of property under an agreement that requires the
544
transfer of title:
545
(A) upon completion of required payments; and
546
(B) if the payment of an option price does not exceed the greater of:
547
(I) $100; or
548
(II) 1% of the total required payments; or
549
(iii) providing tangible personal property along with an operator for a fixed period of
550
time or an indeterminate period of time if the operator is necessary for equipment to perform as
551
designed.
552
(d) For purposes of Subsection (44)(c)(iii), an operator is necessary for equipment to
553
perform as designed if the operator's duties exceed the:
554
(i) set-up of tangible personal property;
555
(ii) maintenance of tangible personal property; or
556
(iii) inspection of tangible personal property.
557
(45) "Load and leave" means delivery to a purchaser by use of a tangible storage media
558
if the tangible storage media is not physically transferred to the purchaser.
559
(46) "Local taxing jurisdiction" means a:
560
(a) county that is authorized to impose an agreement sales and use tax;
561
(b) city that is authorized to impose an agreement sales and use tax; or
562
(c) town that is authorized to impose an agreement sales and use tax.
563
(47) "Manufactured home" is as defined in Section
58-56-3
.
564
(48) For purposes of Section
59-12-104
, "manufacturing facility" means:
565
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
566
Industrial Classification Manual of the federal Executive Office of the President, Office of
567
Management and Budget;
568
(b) a scrap recycler if:
569
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
570
one or more of the following items into prepared grades of processed materials for use in new
571
products:
572
(A) iron;
573
(B) steel;
574
(C) nonferrous metal;
575
(D) paper;
576
(E) glass;
577
(F) plastic;
578
(G) textile; or
579
(H) rubber; and
580
(ii) the new products under Subsection (48)(b)(i) would otherwise be made with
581
nonrecycled materials; or
582
(c) a cogeneration facility as defined in Section
54-2-1
.
583
(49) "Member of the immediate family of the producer" means a person who is related
584
to a producer described in Subsection
59-12-104
(20)(a) as a:
585
(a) child or stepchild, regardless of whether the child or stepchild is:
586
(i) an adopted child or adopted stepchild; or
587
(ii) a foster child or foster stepchild;
588
(b) grandchild or stepgrandchild;
589
(c) grandparent or stepgrandparent;
590
(d) nephew or stepnephew;
591
(e) niece or stepniece;
592
(f) parent or stepparent;
593
(g) sibling or stepsibling;
594
(h) spouse;
595
(i) person who is the spouse of a person described in Subsections (49)(a) through (g);
596
or
597
(j) person similar to a person described in Subsections (49)(a) through (i) as
598
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
599
Administrative Rulemaking Act.
600
(50) "Mobile home" is as defined in Section
58-56-3
.
601
(51) "Mobile telecommunications service" is as defined in the Mobile
602
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
603
(52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"
604
means equipment that is:
605
(i) primarily and customarily used to provide or increase the ability to move from one
606
place to another;
607
(ii) appropriate for use in a:
608
(A) home; or
609
(B) motor vehicle; and
610
(iii) not generally used by persons with normal mobility.
611
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
612
the equipment described in Subsection (52)(a).
613
(c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
614
include:
615
(i) a motor vehicle;
616
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
617
vehicle manufacturer;
618
(iii) durable medical equipment; or
619
(iv) a prosthetic device.
620
(53) "Model 1 seller" means a seller that has selected a certified service provider as the
621
seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
622
use taxes other than the seller's obligation under Section
59-12-107.4
to remit a tax on the
623
seller's own purchases.
624
(54) "Model 2 seller" means a seller that:
625
(a) except as provided in Subsection (54)(b), has selected a certified automated system
626
to perform the seller's sales tax functions for agreement sales and use taxes; and
627
(b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
628
sales tax:
629
(i) collected by the seller; and
630
(ii) to the appropriate local taxing jurisdiction.
631
(55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:
632
(i) sales in at least five states that are members of the agreement;
633
(ii) total annual sales revenues of at least $500,000,000;
634
(iii) a proprietary system that calculates the amount of tax:
635
(A) for an agreement sales and use tax; and
636
(B) due to each local taxing jurisdiction; and
637
(iv) entered into a performance agreement with the governing board of the agreement.
638
(b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of
639
sellers using the same proprietary system.
640
(56) "Modular home" means a modular unit as defined in Section
58-56-3
.
641
(57) "Motor vehicle" is as defined in Section
41-1a-102
.
642
(58) "Oil shale" means a group of fine black to dark brown shales containing
643
bituminous material that yields petroleum upon distillation.
644
(59) (a) "Other fuels" means products that burn independently to produce heat or
645
energy.
646
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
647
personal property.
648
(60) "Pawnbroker" is as defined in Section
13-32a-102
.
649
(61) "Pawn transaction" is as defined in Section
13-32a-102
.
650
(62) (a) "Permanently attached to real property" means that for tangible personal
651
property attached to real property:
652
(i) the attachment of the tangible personal property to the real property:
653
(A) is essential to the use of the tangible personal property; and
654
(B) suggests that the tangible personal property will remain attached to the real
655
property in the same place over the useful life of the tangible personal property; or
656
(ii) if the tangible personal property is detached from the real property, the detachment
657
would:
658
(A) cause substantial damage to the tangible personal property; or
659
(B) require substantial alteration or repair of the real property to which the tangible
660
personal property is attached.
661
(b) "Permanently attached to real property" includes:
662
(i) the attachment of an accessory to the tangible personal property if the accessory is:
663
(A) essential to the operation of the tangible personal property; and
664
(B) attached only to facilitate the operation of the tangible personal property;
665
(ii) a temporary detachment of tangible personal property from real property for a
666
repair or renovation if the repair or renovation is performed where the tangible personal
667
property and real property are located; or
668
(iii) an attachment of the following tangible personal property to real property,
669
regardless of whether the attachment to real property is only through a line that supplies water,
670
electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
671
rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
672
(A) property attached to oil, gas, or water pipelines, other than the property listed in
673
Subsection (62)(c)(iii);
674
(B) a hot water heater;
675
(C) a water softener system; or
676
(D) a water filtration system, other than a water filtration system manufactured as part
677
of a refrigerator.
678
(c) "Permanently attached to real property" does not include:
679
(i) the attachment of portable or movable tangible personal property to real property if
680
that portable or movable tangible personal property is attached to real property only for:
681
(A) convenience;
682
(B) stability; or
683
(C) for an obvious temporary purpose;
684
(ii) the detachment of tangible personal property from real property other than the
685
detachment described in Subsection (62)(b)(ii); or
686
(iii) an attachment of the following tangible personal property to real property if the
687
attachment to real property is only through a line that supplies water, electricity, gas, telephone,
688
cable, or supplies a similar item as determined by the commission by rule made in accordance
689
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
690
(A) a refrigerator;
691
(B) a washer;
692
(C) a dryer;
693
(D) a stove;
694
(E) a television;
695
(F) a computer;
696
(G) a telephone; or
697
(H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
698
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
699
Administrative Rulemaking Act.
700
(63) "Person" includes any individual, firm, partnership, joint venture, association,
701
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
702
municipality, district, or other local governmental entity of the state, or any group or
703
combination acting as a unit.
704
(64) "Place of primary use":
705
(a) for telephone service other than mobile telecommunications service, means the
706
street address representative of where the purchaser's use of the telephone service primarily
707
occurs, which shall be:
708
(i) the residential street address of the purchaser; or
709
(ii) the primary business street address of the purchaser; or
710
(b) for mobile telecommunications service, is as defined in the Mobile
711
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
712
(65) "Postproduction" means an activity related to the finishing or duplication of a
713
medium described in Subsection
59-12-104
(56)(a).
714
(66) (a) "Prepared food" means:
715
(i) food:
716
(A) sold in a heated state; or
717
(B) heated by a seller;
718
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
719
item; or
720
(iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
721
by the seller, including a:
722
(A) plate;
723
(B) knife;
724
(C) fork;
725
(D) spoon;
726
(E) glass;
727
(F) cup;
728
(G) napkin; or
729
(H) straw.
730
(b) "Prepared food" does not include:
731
(i) food that a seller only:
732
(A) cuts;
733
(B) repackages; or
734
(C) pasteurizes; or
735
(ii) (A) the following:
736
(I) raw egg;
737
(II) raw fish;
738
(III) raw meat;
739
(IV) raw poultry; or
740
(V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);
741
and
742
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
743
Food and Drug Administration's Food Code that a consumer cook the items described in
744
Subsection (66)(b)(ii)(A) to prevent food borne illness; or
745
(iii) the following if sold without eating utensils provided by the seller:
746
(A) food and food ingredients sold by a seller if the seller's proper primary
747
classification under the 2002 North American Industry Classification System of the federal
748
Executive Office of the President, Office of Management and Budget, is manufacturing in
749
Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
750
Manufacturing;
751
(B) food and food ingredients sold in an unheated state:
752
(I) by weight or volume; and
753
(II) as a single item; or
754
(C) a bakery item, including:
755
(I) a bagel;
756
(II) a bar;
757
(III) a biscuit;
758
(IV) bread;
759
(V) a bun;
760
(VI) a cake;
761
(VII) a cookie;
762
(VIII) a croissant;
763
(IX) a danish;
764
(X) a donut;
765
(XI) a muffin;
766
(XII) a pastry;
767
(XIII) a pie;
768
(XIV) a roll;
769
(XV) a tart;
770
(XVI) a torte; or
771
(XVII) a tortilla.
772
(c) Notwithstanding Subsection (66)(a)(iii), an eating utensil provided by the seller
773
does not include the following used to transport the food:
774
(i) a container; or
775
(ii) packaging.
776
(67) "Prescription" means an order, formula, or recipe that is issued:
777
(a) (i) orally;
778
(ii) in writing;
779
(iii) electronically; or
780
(iv) by any other manner of transmission; and
781
(b) by a licensed practitioner authorized by the laws of a state.
782
(68) (a) Except as provided in Subsection (68)(b)(ii) or (iii), "prewritten computer
783
software" means computer software that is not designed and developed:
784
(i) by the author or other creator of the computer software; and
785
(ii) to the specifications of a specific purchaser.
786
(b) "Prewritten computer software" includes:
787
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
788
software is not designed and developed:
789
(A) by the author or other creator of the computer software; and
790
(B) to the specifications of a specific purchaser;
791
(ii) notwithstanding Subsection (68)(a), computer software designed and developed by
792
the author or other creator of the computer software to the specifications of a specific purchaser
793
if the computer software is sold to a person other than the purchaser; or
794
(iii) notwithstanding Subsection (68)(a) and except as provided in Subsection (68)(c),
795
prewritten computer software or a prewritten portion of prewritten computer software:
796
(A) that is modified or enhanced to any degree; and
797
(B) if the modification or enhancement described in Subsection (68)(b)(iii)(A) is
798
designed and developed to the specifications of a specific purchaser.
799
(c) Notwithstanding Subsection (68)(b)(iii), "prewritten computer software" does not
800
include a modification or enhancement described in Subsection (68)(b)(iii) if the charges for
801
the modification or enhancement are:
802
(i) reasonable; and
803
(ii) separately stated on the invoice or other statement of price provided to the
804
purchaser.
805
(69) (a) "Prosthetic device" means a device that is worn on or in the body to:
806
(i) artificially replace a missing portion of the body;
807
(ii) prevent or correct a physical deformity or physical malfunction; or
808
(iii) support a weak or deformed portion of the body.
809
(b) "Prosthetic device" includes:
810
(i) parts used in the repairs or renovation of a prosthetic device;
811
(ii) replacement parts for a prosthetic device; or
812
(iii) a dental prosthesis.
813
(c) "Prosthetic device" does not include:
814
(i) corrective eyeglasses;
815
(ii) contact lenses; or
816
(iii) hearing aids.
817
(70) (a) "Protective equipment" means an item:
818
(i) for human wear; and
819
(ii) that is:
820
(A) designed as protection:
821
(I) to the wearer against injury or disease; or
822
(II) against damage or injury of other persons or property; and
823
(B) not suitable for general use.
824
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
825
commission shall make rules:
826
(i) listing the items that constitute "protective equipment"; and
827
(ii) that are consistent with the list of items that constitute "protective equipment"
828
under the agreement.
829
(71) (a) For purposes of Subsection
59-12-104
(41), "publication" means any written or
830
printed matter, other than a photocopy:
831
(i) regardless of:
832
(A) characteristics;
833
(B) copyright;
834
(C) form;
835
(D) format;
836
(E) method of reproduction; or
837
(F) source; and
838
(ii) made available in printed or electronic format.
839
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
840
commission may by rule define the term "photocopy."
841
(72) (a) "Purchase price" and "sales price" mean the total amount of consideration:
842
(i) valued in money; and
843
(ii) for which tangible personal property or services are:
844
(A) sold;
845
(B) leased; or
846
(C) rented.
847
(b) "Purchase price" and "sales price" include:
848
(i) the seller's cost of the tangible personal property or services sold;
849
(ii) expenses of the seller, including:
850
(A) the cost of materials used;
851
(B) a labor cost;
852
(C) a service cost;
853
(D) interest;
854
(E) a loss;
855
(F) the cost of transportation to the seller; or
856
(G) a tax imposed on the seller; or
857
(iii) a charge by the seller for any service necessary to complete the sale.
858
(c) "Purchase price" and "sales price" do not include:
859
(i) a discount:
860
(A) in a form including:
861
(I) cash;
862
(II) term; or
863
(III) coupon;
864
(B) that is allowed by a seller;
865
(C) taken by a purchaser on a sale; and
866
(D) that is not reimbursed by a third party; or
867
(ii) the following if separately stated on an invoice, bill of sale, or similar document
868
provided to the purchaser:
869
(A) the amount of a trade-in;
870
(B) the following from credit extended on the sale of tangible personal property or
871
services:
872
(I) interest charges;
873
(II) financing charges; or
874
(III) carrying charges;
875
(C) a tax or fee legally imposed directly on the consumer;
876
(D) a delivery charge; or
877
(E) an installation charge.
878
(73) "Purchaser" means a person to whom:
879
(a) a sale of tangible personal property is made; or
880
(b) a service is furnished.
881
(74) "Regularly rented" means:
882
(a) rented to a guest for value three or more times during a calendar year; or
883
(b) advertised or held out to the public as a place that is regularly rented to guests for
884
value.
885
(75) "Renewable energy" means:
886
(a) biomass energy;
887
(b) hydroelectric energy;
888
(c) geothermal energy;
889
(d) solar energy; or
890
(e) wind energy.
891
(76) (a) "Renewable energy production facility" means a facility that:
892
(i) uses renewable energy to produce electricity; and
893
(ii) has a production capacity of 20 kilowatts or greater.
894
(b) A facility is a renewable energy production facility regardless of whether the
895
facility is:
896
(i) connected to an electric grid; or
897
(ii) located on the premises of an electricity consumer.
898
(77) "Rental" is as defined in Subsection (44).
899
(78) "Repairs or renovations of tangible personal property" means:
900
(a) a repair or renovation of tangible personal property that is not permanently attached
901
to real property; or
902
(b) attaching tangible personal property to other tangible personal property if the other
903
tangible personal property to which the tangible personal property is attached is not
904
permanently attached to real property.
905
(79) "Research and development" means the process of inquiry or experimentation
906
aimed at the discovery of facts, devices, technologies, or applications and the process of
907
preparing those devices, technologies, or applications for marketing.
908
(80) "Residential use" means the use in or around a home, apartment building, sleeping
909
quarters, and similar facilities or accommodations.
910
(81) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
911
than:
912
(a) resale;
913
(b) sublease; or
914
(c) subrent.
915
(82) (a) "Retailer" means any person engaged in a regularly organized business in
916
tangible personal property or any other taxable transaction under Subsection
59-12-103
(1), and
917
who is selling to the user or consumer and not for resale.
918
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
919
engaged in the business of selling to users or consumers within the state.
920
(83) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
921
otherwise, in any manner, of tangible personal property or any other taxable transaction under
922
Subsection
59-12-103
(1), for consideration.
923
(b) "Sale" includes:
924
(i) installment and credit sales;
925
(ii) any closed transaction constituting a sale;
926
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
927
chapter;
928
(iv) any transaction if the possession of property is transferred but the seller retains the
929
title as security for the payment of the price; and
930
(v) any transaction under which right to possession, operation, or use of any article of
931
tangible personal property is granted under a lease or contract and the transfer of possession
932
would be taxable if an outright sale were made.
933
(84) "Sale at retail" is as defined in Subsection (81).
934
(85) "Sale-leaseback transaction" means a transaction by which title to tangible
935
personal property that is subject to a tax under this chapter is transferred:
936
(a) by a purchaser-lessee;
937
(b) to a lessor;
938
(c) for consideration; and
939
(d) if:
940
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
941
of the tangible personal property;
942
(ii) the sale of the tangible personal property to the lessor is intended as a form of
943
financing:
944
(A) for the property; and
945
(B) to the purchaser-lessee; and
946
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee
947
is required to:
948
(A) capitalize the property for financial reporting purposes; and
949
(B) account for the lease payments as payments made under a financing arrangement.
950
(86) "Sales price" is as defined in Subsection (72).
951
(87) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
952
amounts charged by a school:
953
(i) sales that are directly related to the school's educational functions or activities
954
including:
955
(A) the sale of:
956
(I) textbooks;
957
(II) textbook fees;
958
(III) laboratory fees;
959
(IV) laboratory supplies; or
960
(V) safety equipment;
961
(B) the sale of a uniform, protective equipment, or sports or recreational equipment
962
that:
963
(I) a student is specifically required to wear as a condition of participation in a
964
school-related event or school-related activity; and
965
(II) is not readily adaptable to general or continued usage to the extent that it takes the
966
place of ordinary clothing;
967
(C) sales of the following if the net or gross revenues generated by the sales are
968
deposited into a school district fund or school fund dedicated to school meals:
969
(I) food and food ingredients; or
970
(II) prepared food; or
971
(D) transportation charges for official school activities; or
972
(ii) amounts paid to or amounts charged by a school for admission to a school-related
973
event or school-related activity.
974
(b) "Sales relating to schools" does not include:
975
(i) bookstore sales of items that are not educational materials or supplies;
976
(ii) except as provided in Subsection (87)(a)(i)(B):
977
(A) clothing;
978
(B) clothing accessories or equipment;
979
(C) protective equipment; or
980
(D) sports or recreational equipment; or
981
(iii) amounts paid to or amounts charged by a school for admission to a school-related
982
event or school-related activity if the amounts paid or charged are passed through to a person:
983
(A) other than a:
984
(I) school;
985
(II) nonprofit organization authorized by a school board or a governing body of a
986
private school to organize and direct a competitive secondary school activity; or
987
(III) nonprofit association authorized by a school board or a governing body of a
988
private school to organize and direct a competitive secondary school activity; and
989
(B) that is required to collect sales and use taxes under this chapter.
990
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
991
commission may make rules defining the term "passed through."
992
(88) For purposes of this section and Section
59-12-104
, "school":
993
(a) means:
994
(i) an elementary school or a secondary school that:
995
(A) is a:
996
(I) public school; or
997
(II) private school; and
998
(B) provides instruction for one or more grades kindergarten through 12; or
999
(ii) a public school district; and
1000
(b) includes the Electronic High School as defined in Section
53A-15-1002
.
1001
(89) "Seller" means a person that makes a sale, lease, or rental of:
1002
(a) tangible personal property; or
1003
(b) a service.
1004
(90) (a) "Semiconductor fabricating, processing, research, or development materials"
1005
means tangible personal property:
1006
(i) used primarily in the process of:
1007
(A) (I) manufacturing a semiconductor;
1008
(II) fabricating a semiconductor; or
1009
(III) research or development of a:
1010
(Aa) semiconductor; or
1011
(Bb) semiconductor manufacturing process; or
1012
(B) maintaining an environment suitable for a semiconductor; or
1013
(ii) consumed primarily in the process of:
1014
(A) (I) manufacturing a semiconductor;
1015
(II) fabricating a semiconductor; or
1016
(III) research or development of a:
1017
(Aa) semiconductor; or
1018
(Bb) semiconductor manufacturing process; or
1019
(B) maintaining an environment suitable for a semiconductor.
1020
(b) "Semiconductor fabricating, processing, research, or development materials"
1021
includes:
1022
(i) parts used in the repairs or renovations of tangible personal property described in
1023
Subsection (90)(a); or
1024
(ii) a chemical, catalyst, or other material used to:
1025
(A) produce or induce in a semiconductor a:
1026
(I) chemical change; or
1027
(II) physical change;
1028
(B) remove impurities from a semiconductor; or
1029
(C) improve the marketable condition of a semiconductor.
1030
(91) "Senior citizen center" means a facility having the primary purpose of providing
1031
services to the aged as defined in Section
62A-3-101
.
1032
(92) "Simplified electronic return" means the electronic return:
1033
(a) described in Section 318(C) of the agreement; and
1034
(b) approved by the governing board of the agreement.
1035
(93) "Solar energy" means the sun used as the sole source of energy for producing
1036
electricity.
1037
(94) (a) "Sports or recreational equipment" means an item:
1038
(i) designed for human use; and
1039
(ii) that is:
1040
(A) worn in conjunction with:
1041
(I) an athletic activity; or
1042
(II) a recreational activity; and
1043
(B) not suitable for general use.
1044
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1045
commission shall make rules:
1046
(i) listing the items that constitute "sports or recreational equipment"; and
1047
(ii) that are consistent with the list of items that constitute "sports or recreational
1048
equipment" under the agreement.
1049
(95) "State" means the state of Utah, its departments, and agencies.
1050
(96) "Storage" means any keeping or retention of tangible personal property or any
1051
other taxable transaction under Subsection
59-12-103
(1), in this state for any purpose except
1052
sale in the regular course of business.
1053
(97) (a) "Tangible personal property" means personal property that:
1054
(i) may be:
1055
(A) seen;
1056
(B) weighed;
1057
(C) measured;
1058
(D) felt; or
1059
(E) touched; or
1060
(ii) is in any manner perceptible to the senses.
1061
(b) "Tangible personal property" includes:
1062
(i) electricity;
1063
(ii) water;
1064
(iii) gas;
1065
(iv) steam; or
1066
(v) prewritten computer software.
1067
(98) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1068
and require further processing other than mechanical blending before becoming finished
1069
petroleum products.
1070
(99) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1071
software" means an item listed in Subsection (99)(b) if that item is purchased or leased
1072
primarily to enable or facilitate one or more of the following to function:
1073
(i) telecommunications switching or routing equipment, machinery, or software; or
1074
(ii) telecommunications transmission equipment, machinery, or software.
1075
(b) The following apply to Subsection (99)(a):
1076
(i) a pole;
1077
(ii) software;
1078
(iii) a supplementary power supply;
1079
(iv) temperature or environmental equipment or machinery;
1080
(v) test equipment;
1081
(vi) a tower; or
1082
(vii) equipment, machinery, or software that functions similarly to an item listed in
1083
Subsections (99)(b)(i) through (vi) as determined by the commission by rule made in
1084
accordance with Subsection (99)(c).
1085
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1086
commission may by rule define what constitutes equipment, machinery, or software that
1087
functions similarly to an item listed in Subsections (99)(b)(i) through (vi).
1088
(100) "Telecommunications equipment, machinery, or software required for 911
1089
service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1090
Sec. 20.18.
1091
(101) "Telecommunications maintenance or repair equipment, machinery, or software"
1092
means equipment, machinery, or software purchased or leased primarily to maintain or repair
1093
one or more of the following, regardless of whether the equipment, machinery, or software is
1094
purchased or leased as a spare part or as an upgrade or modification to one or more of the
1095
following:
1096
(a) telecommunications enabling or facilitating equipment, machinery, or software;
1097
(b) telecommunications switching or routing equipment, machinery, or software; or
1098
(c) telecommunications transmission equipment, machinery, or software.
1099
(102) (a) "Telecommunications switching or routing equipment, machinery, or
1100
software" means an item listed in Subsection (102)(b) if that item is purchased or leased
1101
primarily for switching or routing:
1102
(i) voice communications;
1103
(ii) data communications; or
1104
(iii) telephone service.
1105
(b) The following apply to Subsection (102)(a):
1106
(i) a bridge;
1107
(ii) a computer;
1108
(iii) a cross connect;
1109
(iv) a modem;
1110
(v) a multiplexer;
1111
(vi) plug in circuitry;
1112
(vii) a router;
1113
(viii) software;
1114
(ix) a switch; or
1115
(x) equipment, machinery, or software that functions similarly to an item listed in
1116
Subsections (102)(b)(i) through (ix) as determined by the commission by rule made in
1117
accordance with Subsection (102)(c).
1118
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1119
commission may by rule define what constitutes equipment, machinery, or software that
1120
functions similarly to an item listed in Subsections (102)(b)(i) through (ix).
1121
(103) (a) "Telecommunications transmission equipment, machinery, or software"
1122
means an item listed in Subsection (103)(b) if that item is purchased or leased primarily for
1123
sending, receiving, or transporting:
1124
(i) voice communications;
1125
(ii) data communications; or
1126
(iii) telephone service.
1127
(b) The following apply to Subsection (103)(a):
1128
(i) an amplifier;
1129
(ii) a cable;
1130
(iii) a closure;
1131
(iv) a conduit;
1132
(v) a controller;
1133
(vi) a duplexer;
1134
(vii) a filter;
1135
(viii) an input device;
1136
(ix) an input/output device;
1137
(x) an insulator;
1138
(xi) microwave machinery or equipment;
1139
(xii) an oscillator;
1140
(xiii) an output device;
1141
(xiv) a pedestal;
1142
(xv) a power converter;
1143
(xvi) a power supply;
1144
(xvii) a radio channel;
1145
(xviii) a radio receiver;
1146
(xix) a radio transmitter;
1147
(xx) a repeater;
1148
(xxi) software;
1149
(xxii) a terminal;
1150
(xxiii) a timing unit;
1151
(xxiv) a transformer;
1152
(xxv) a wire; or
1153
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1154
Subsections (103)(b)(i) through (xxv) as determined by the commission by rule made in
1155
accordance with Subsection (103)(c).
1156
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1157
commission may by rule define what constitutes equipment, machinery, or software that
1158
functions similarly to an item listed in Subsections (103)(b)(i) through (xxv).
1159
(104) (a) "Telephone service" means a two-way transmission:
1160
(i) by:
1161
(A) wire;
1162
(B) radio;
1163
(C) lightwave; or
1164
(D) other electromagnetic means; and
1165
(ii) of one or more of the following:
1166
(A) a sign;
1167
(B) a signal;
1168
(C) writing;
1169
(D) an image;
1170
(E) sound;
1171
(F) a message;
1172
(G) data; or
1173
(H) other information of any nature.
1174
(b) "Telephone service" includes:
1175
(i) mobile telecommunications service;
1176
(ii) private communications service; or
1177
(iii) automated digital telephone answering service.
1178
(c) "Telephone service" does not include a service or a transaction that a state or a
1179
political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1180
Tax Freedom Act, Pub. L. No. 105-277.
1181
(105) Notwithstanding where a call is billed or paid, "telephone service address"
1182
means:
1183
(a) if the location described in this Subsection (105)(a) is known, the location of the
1184
telephone service equipment:
1185
(i) to which a call is charged; and
1186
(ii) from which the call originates or terminates;
1187
(b) if the location described in Subsection (105)(a) is not known but the location
1188
described in this Subsection (105)(b) is known, the location of the origination point of the
1189
signal of the telephone service first identified by:
1190
(i) the telecommunications system of the seller; or
1191
(ii) if the system used to transport the signal is not that of the seller, information
1192
received by the seller from its service provider; or
1193
(c) if the locations described in Subsection (105)(a) or (b) are not known, the location
1194
of a purchaser's primary place of use.
1195
(106) (a) "Telephone service provider" means a person that:
1196
(i) owns, controls, operates, or manages a telephone service; and
1197
(ii) engages in an activity described in Subsection (106)(a)(i) for the shared use with or
1198
resale to any person of the telephone service.
1199
(b) A person described in Subsection (106)(a) is a telephone service provider whether
1200
or not the Public Service Commission of Utah regulates:
1201
(i) that person; or
1202
(ii) the telephone service that the person owns, controls, operates, or manages.
1203
(107) "Tobacco" means:
1204
(a) a cigarette;
1205
(b) a cigar;
1206
(c) chewing tobacco;
1207
(d) pipe tobacco; or
1208
(e) any other item that contains tobacco.
1209
(108) "Unassisted amusement device" means an amusement device, skill device, or
1210
ride device that is started and stopped by the purchaser or renter of the right to use or operate
1211
the amusement device, skill device, or ride device.
1212
(109) (a) "Use" means the exercise of any right or power over tangible personal
1213
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that
1214
property, item, or service.
1215
(b) "Use" does not include the sale, display, demonstration, or trial of that property in
1216
the regular course of business and held for resale.
1217
(110) (a) Subject to Subsection (110)(b), "vehicle" means the following that are
1218
required to be titled, registered, or titled and registered:
1219
(i) an aircraft as defined in Section
72-10-102
;
1220
(ii) a vehicle as defined in Section
41-1a-102
;
1221
(iii) an off-highway vehicle as defined in Section
41-22-2
; or
1222
(iv) a vessel as defined in Section
41-1a-102
.
1223
(b) For purposes of Subsection
59-12-104
(33) only, "vehicle" includes:
1224
(i) a vehicle described in Subsection (110)(a); or
1225
(ii) (A) a locomotive;
1226
(B) a freight car;
1227
(C) railroad work equipment; or
1228
(D) other railroad rolling stock.
1229
(111) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1230
exchanging a vehicle as defined in Subsection (110).
1231
(112) (a) Except as provided in Subsection (112)(b), "waste energy facility" means a
1232
facility that generates electricity:
1233
(i) using as the primary source of energy waste materials that would be placed in a
1234
landfill or refuse pit if it were not used to generate electricity, including:
1235
(A) tires;
1236
(B) waste coal; or
1237
(C) oil shale; and
1238
(ii) in amounts greater than actually required for the operation of the facility.
1239
(b) "Waste energy facility" does not include a facility that incinerates:
1240
(i) municipal solid waste;
1241
(ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1242
(iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1243
(113) "Watercraft" means a vessel as defined in Section
73-18-2
.
1244
(114) "Wind energy" means wind used as the sole source of energy to produce
1245
electricity.
1246
(115) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1247
location by the United States Postal Service.
1248
Section 3.
Section
59-12-601.1
is enacted to read:
1249
Part 6. Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act
1250
59-12-601.1. Title.
1251
This part is known as the "Tourism, Recreation, Cultural, Convention, and Airport
1252
Facilities Tax Act."
1253
Section 4.
Section
59-12-602
is amended to read:
1254
59-12-602. Definitions.
1255
As used in this part:
1256
(1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
1257
significance, as defined by the Transportation Commission by rule made in accordance with
1258
Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
1259
(b) "Airport facility" includes:
1260
(i) an appurtenance to an airport, including a fixed guideway as defined in Section
1261
59-12-1702
that provides transportation service to or from the airport;
1262
(ii) a control tower, including a radar system;
1263
(iii) a public area of an airport; or
1264
(iv) a terminal facility.
1265
[(1)] (2) "Convention facility" means any publicly owned or operated convention
1266
center, sports arena, or other facility at which conventions, conferences, and other gatherings
1267
are held and whose primary business or function is to host such conventions, conferences, and
1268
other gatherings.
1269
[(2)] (3) "Cultural facility" means any publicly owned or operated museum, theater, art
1270
center, music hall, or other cultural or arts facility.
1271
[(3)] (4) "Recreation facility" or "tourist facility" means any publicly owned or
1272
operated park, campground, marina, dock, golf course, water park, historic park, monument,
1273
planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
1274
[(4)] (5) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda
1275
fountain, or fast-food service where food is prepared for immediate consumption.
1276
(b) "Restaurant" does not include:
1277
(i) any retail establishment whose primary business or function is the sale of fuel or
1278
food items for off-premise, but not immediate, consumption; and
1279
(ii) a theater that sells food items, but not a dinner theater.
1280
Section 5.
Section
59-12-603
is amended to read:
1281
59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
1282
ordinance required -- Advisory board -- Administration -- Collection -- Distribution --
1283
Enactment or repeal of tax or tax rate change -- Effective date -- Notice requirements.
1284
(1) (a) In addition to any other taxes, a county legislative body may, as provided in this
1285
part, impose a tax as follows:
1286
(i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
1287
on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
1288
and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
1289
vehicle that is being repaired pursuant to a repair or an insurance agreement; and
1290
(B) beginning on or after January 1, 1999, a county legislative body of any county
1291
imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
1292
Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
1293
of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
1294
for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
1295
to a repair or an insurance agreement;
1296
(ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
1297
sales of the following that are sold by a restaurant:
1298
(A) prepared food; or
1299
(B) food and food ingredients; and
1300
(iii) a county legislative body of a county of the first class may impose a tax of not to
1301
exceed .5% on charges for the accommodations and services described in Subsection
1302
59-12-103
(1)(i).
1303
(b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
1304
17-31-5.5
.
1305
(2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
1306
for in Subsections (1)(a)(i) through (iii) may be used for [the purposes of]:
1307
(i) financing tourism promotion; and
1308
(ii) the development, operation, and maintenance of [tourist, recreation, cultural, and
1309
convention facilities as defined in Section
59-12-602
.]:
1310
(A) an airport facility;
1311
(B) a convention facility;
1312
(C) a cultural facility;
1313
(D) a recreation facility; or
1314
(E) a tourist facility.
1315
(b) A county of the first class shall expend at least $450,000 each year of the revenues
1316
from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
1317
marketing and ticketing system designed to:
1318
(i) promote tourism in ski areas within the county by persons that do not reside within
1319
the state; and
1320
(ii) combine the sale of:
1321
(A) ski lift tickets; and
1322
(B) accommodations and services described in Subsection
59-12-103
(1)(i).
1323
(3) A tax imposed under this part may be pledged as security for bonds, notes, or other
1324
evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
1325
Government Bonding Act, or a community development and renewal agency under Title 17C,
1326
Chapter 1, Part 5, Agency Bonds, to finance [tourism, recreation, cultural, and convention
1327
facilities.]:
1328
(a) an airport facility;
1329
(b) a convention facility;
1330
(c) a cultural facility;
1331
(d) a recreation facility; or
1332
(e) a tourist facility.
1333
(4) (a) In order to impose the tax under Subsection (1), each county legislative body
1334
shall [annually] adopt an ordinance imposing the tax.
1335
(b) The ordinance under Subsection (4)(a) shall include provisions substantially the
1336
same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
1337
those items and sales described in Subsection (1).
1338
(c) The name of the county as the taxing agency shall be substituted for that of the state
1339
where necessary, and an additional license is not required if one has been or is issued under
1340
Section
59-12-106
.
1341
(5) In order to maintain in effect its tax ordinance adopted under this part, each county
1342
legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
1343
Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
1344
amendments to Part 1, Tax Collection.
1345
(6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
1346
board in accordance with Section
17-31-8
, the county legislative body of the county of the first
1347
class shall create a tax advisory board in accordance with this Subsection (6).
1348
(b) The tax advisory board shall be composed of nine members appointed as follows:
1349
(i) four members shall be appointed by the county legislative body of the county of the
1350
first class as follows:
1351
(A) one member shall be a resident of the unincorporated area of the county;
1352
(B) two members shall be residents of the incorporated area of the county; and
1353
(C) one member shall be a resident of the unincorporated or incorporated area of the
1354
county; and
1355
(ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
1356
towns within the county of the first class appointed by an organization representing all mayors
1357
of cities and towns within the county of the first class.
1358
(c) Five members of the tax advisory board constitute a quorum.
1359
(d) The county legislative body of the county of the first class shall determine:
1360
(i) terms of the members of the tax advisory board;
1361
(ii) procedures and requirements for removing a member of the tax advisory board;
1362
(iii) voting requirements, except that action of the tax advisory board shall be by at
1363
least a majority vote of a quorum of the tax advisory board;
1364
(iv) chairs or other officers of the tax advisory board;
1365
(v) how meetings are to be called and the frequency of meetings; and
1366
(vi) the compensation, if any, of members of the tax advisory board.
1367
(e) The tax advisory board under this Subsection (6) shall advise the county legislative
1368
body of the county of the first class on the expenditure of revenues collected within the county
1369
of the first class from the taxes described in Subsection (1)(a).
1370
(7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
1371
shall be administered, collected, and enforced in accordance with:
1372
(A) the same procedures used to administer, collect, and enforce the tax under:
1373
(I) Part 1, Tax Collection; or
1374
(II) Part 2, Local Sales and Use Tax Act; and
1375
(B) Chapter 1, General Taxation Policies.
1376
(ii) A tax under this part is not subject to Section
59-12-107.1
or Subsections
1377
59-12-205
(2) through (7).
1378
(b) Except as provided in Subsection (7)(c):
1379
(i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
1380
commission shall distribute the revenues to the county imposing the tax; and
1381
(ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
1382
according to the distribution formula provided in Subsection (8).
1383
(c) The commission shall deduct from the distributions under Subsection (7)(b) an
1384
administrative charge for collecting the tax as provided in Section
59-12-206
.
1385
(8) The commission shall distribute the revenues generated by the tax under Subsection
1386
(1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
1387
following formula:
1388
(a) the commission shall distribute 70% of the revenues based on the percentages
1389
generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
1390
the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
1391
(b) the commission shall distribute 30% of the revenues based on the percentages
1392
generated by dividing the population of each county collecting a tax under Subsection
1393
(1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
1394
(9) (a) For purposes of this Subsection (9):
1395
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
1396
Annexation to County.
1397
(ii) "Annexing area" means an area that is annexed into a county.
1398
(b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
1399
enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
1400
change shall take effect:
1401
(A) on the first day of a calendar quarter; and
1402
(B) after a 90-day period beginning on the date the commission receives notice meeting
1403
the requirements of Subsection (9)(b)(ii) from the county.
1404
(ii) The notice described in Subsection (9)(b)(i)(B) shall state:
1405
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
1406
(B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
1407
(C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
1408
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
1409
(9)(b)(ii)(A), the rate of the tax.
1410
(c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
1411
(9)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
1412
first billing period:
1413
(A) that begins after the effective date of the enactment of the tax or the tax rate
1414
increase; and
1415
(B) if the billing period for the transaction begins before the effective date of the
1416
enactment of the tax or the tax rate increase imposed under Subsection (1).
1417
(ii) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
1418
(9)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1419
billing period:
1420
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1421
and
1422
(B) if the billing period for the transaction begins before the effective date of the repeal
1423
of the tax or the tax rate decrease imposed under Subsection (1).
1424
(iii) Subsections (9)(c)(i) and (ii) apply to transactions subject to a tax under:
1425
(A) Subsection
59-12-103
(1)(e);
1426
(B) Subsection
59-12-103
(1)(i); or
1427
(C) Subsection
59-12-103
(1)(k).
1428
(d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
1429
after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
1430
tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
1431
(A) on the first day of a calendar quarter; and
1432
(B) after a 90-day period beginning on the date the commission receives notice meeting
1433
the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
1434
(ii) The notice described in Subsection (9)(d)(i)(B) shall state:
1435
(A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
1436
repeal, or change in the rate of a tax under this part for the annexing area;
1437
(B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
1438
(C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
1439
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
1440
(9)(d)(ii)(A), the rate of the tax.
1441
(e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
1442
(9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
1443
first billing period:
1444
(A) that begins after the effective date of the enactment of the tax or the tax rate
1445
increase; and
1446
(B) if the billing period for the transaction begins before the effective date of the
1447
enactment of the tax or the tax rate increase imposed under Subsection (1).
1448
(ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
1449
(9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1450
billing period:
1451
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1452
and
1453
(B) if the billing period for the transaction begins before the effective date of the repeal
1454
of the tax or the tax rate decrease imposed under Subsection (1).
1455
(iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
1456
(A) Subsection
59-12-103
(1)(e);
1457
(B) Subsection
59-12-103
(1)(i); or
1458
(C) Subsection
59-12-103
(1)(k).
1459
Section 6.
Section
59-12-1901
is enacted to read:
1460
Part 19. County of the Second Class Airport, Highway, and Public Transit Sales and Use
1461
Tax Act
1462
59-12-1901. Title.
1463
This part is known as the "County of the Second Class Airport, Highway, and Public
1464
Transit Sales and Use Tax Act."
1465
Section 7.
Section
59-12-1902
is enacted to read:
1466
59-12-1902. Definitions.
1467
As used in this part:
1468
(1) "Airport facility" is as defined in Section
59-12-602
.
1469
(2) "Annexation" means an annexation to a county under Title 17, Chapter 2,
1470
Annexation to County.
1471
(3) "Annexing area" means an area that is annexed into a county.
1472
(4) "Fixed guideway" is as defined in Section
59-12-1702
.
1473
(5) "Local highway of regional significance" means a local highway that is a:
1474
(a) principal arterial highway as defined in Section
72-4-102.5
;
1475
(b) a minor arterial highway as defined in Section
72-4-102.5
;
1476
(c) a major collector highway as defined in Section
72-4-102.5
; or
1477
(d) a minor collector road as defined in Section
72-4-102.5
.
1478
(6) "Public transit" is as defined in Section
59-12-1502
.
1479
Section 8.
Section
59-12-1903
is enacted to read:
1480
59-12-1903. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
1481
from the tax -- Administration, collection, and enforcement of tax by commission --
1482
Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
1483
(1) (a) Subject to the other provisions of this section and except as provided in
1484
Subsection (2), beginning on January 1, 2009, a county legislative body of a county of the
1485
second class may impose a sales and use tax on the transactions:
1486
(i) described in Subsection
59-12-103
(1); and
1487
(ii) within the county, including the cities and towns within the county.
1488
(b) For purposes of Subsection (1)(a), a county legislative body may impose a tax at a
1489
rate of:
1490
(i) .10%, to be deposited as provided in Subsection (4)(c)(i) into the County of the
1491
Second Class State Highway Projects Fund created by Section
72-2-121.2
and expended as
1492
provided in Section
72-2-121.2
; or
1493
(ii) .25%, to be expended as follows:
1494
(A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
1495
Second Class State Highway Projects Fund created by Section
72-2-121.2
and expended as
1496
provided in Section
72-2-121.2
;
1497
(B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
1498
Transportation Corridor Preservation Fund created by Section
72-2-117.5
and expended and
1499
distributed in accordance with Section
72-2-117.5
; and
1500
(C) as determined by the county legislative body, .10% to be:
1501
(I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
1502
State Highway Projects Fund created by Section
72-2-121.2
and expended as provided in
1503
Section
72-2-121.2
;
1504
(II) expended for:
1505
(Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
1506
Highways Act;
1507
(Bb) a local highway of regional significance; or
1508
(Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
1509
(III) expended for a project or service relating to a system for public transit for the
1510
portion of the project or service that is performed within the county;
1511
(IV) expended for a project or service relating to a fixed guideway for the portion of
1512
the project or service that is performed within the county;
1513
(V) expended for a project or service relating to airport facility:
1514
(Aa) if that airport facility is part of the regional transportation plan of the area
1515
metropolitan planning organization if a metropolitan planning organization exists for the area;
1516
and
1517
(Bb) for the portion of the project or service that is performed within the county; or
1518
(VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
1519
(V).
1520
(c) If a county legislative body imposes a tax under this part, the county legislative
1521
body may not impose a tax under Part 17, County Option Sales and Use Tax for Transportation
1522
Act.
1523
(d) For purposes of this Subsection (1), the location of a transaction shall be
1524
determined in accordance with Section
59-12-207
.
1525
(2) (a) A county legislative body may not impose a tax under this part on:
1526
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
1527
are exempt from taxation under Section
59-12-104
;
1528
(ii) any amounts paid or charged by a seller that collects a tax under Subsection
1529
59-12-107
(1)(b); or
1530
(iii) except as provided in Subsection (2)(b), amounts paid or charged for food and
1531
food ingredients.
1532
(b) A county legislative body imposing a tax under this part shall impose the tax on
1533
amounts paid or charged for food and food ingredients if:
1534
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
1535
food and food ingredients and tangible personal property other than food and food ingredients;
1536
and
1537
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
1538
accordance with Subsection
59-12-107
(1)(b).
1539
(3) To impose a tax under this part, a county legislative body shall obtain approval
1540
from a majority of the members of the county legislative body.
1541
(4) (a) Except as provided in Subsection (4)(b) or (c) or Subsection (6), the
1542
commission shall transmit revenues collected within a county from a tax under this part that are
1543
required to be expended for a purpose described in Subsection (1)(b)(ii)(C):
1544
(i) to the county legislative body;
1545
(ii) monthly; and
1546
(iii) by electronic funds transfer.
1547
(b) Except as provided in Subsection (6), the commission shall transfer the revenues
1548
described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
1549
Chapter 2a, Part 8, Public Transit District Act, if the county legislative body:
1550
(i) provides written notice to the commission requesting the transfer; and
1551
(ii) designates the public transit district to which the county legislative body requests
1552
the commission to transfer the revenues described in Subsection (4)(a).
1553
(c) Except as provided in Subsection (6), the commission shall deposit revenues
1554
collected within a county from a tax under this part that:
1555
(i) are required to be expended for a purpose described in Subsection (1)(b)(i) or
1556
(1)(b)(ii)(A) into the County of the Second Class State Highway Projects Fund created by
1557
Section
72-2-121.2
;
1558
(ii) are required to be expended for a purpose described in Subsection (1)(B)(ii)(B) into
1559
the Local Transportation Corridor Preservation Fund created by Section
72-2-117.5
; or
1560
(iii) a county legislative body determines to expend for a purpose described in
1561
Subsection (1)(b)(ii)(C)(I) into the County of the Second Class State Highway Projects Fund
1562
created by Section
72-2-121.2
if the county legislative body provides written notice to the
1563
commission requesting the deposit.
1564
(5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
1565
collect, and enforce a tax under this part in accordance with:
1566
(i) the same procedures used to administer, collect, and enforce the tax under:
1567
(A) Part 1, Tax Collection; or
1568
(B) Part 2, Local Sales and Use Tax Act; and
1569
(ii) Chapter 1, General Taxation Policies.
1570
(b) A tax under this part is not subject to Subsections
59-12-205
(2) through (7).
1571
(6) (a) The commission may retain an amount of tax collected under this part of not to
1572
exceed the lesser of:
1573
(i) 1.5%; or
1574
(ii) an amount equal to the cost to the commission of administering this part.
1575
(b) Any amount the commission retains under Subsection (6)(a) shall be:
1576
(i) deposited into the Sales and Use Tax Administrative Fees Account; and
1577
(ii) used as provided in Subsection
59-12-206
(2).
1578
(7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
1579
a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
1580
repeal, or change shall take effect:
1581
(A) on the first day of a calendar quarter; and
1582
(B) after a 90-day period beginning on the date the commission receives notice meeting
1583
the requirements of Subsection (7)(a)(ii) from the county.
1584
(ii) The notice described in Subsection (7)(a)(i)(B) shall state:
1585
(A) that the county will enact, repeal, or change the rate of a tax under this part;
1586
(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
1587
(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
1588
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
1589
(7)(a)(ii)(A), the rate of the tax.
1590
(b) (i) For a transaction described in Subsection (7)(b)(iii), if the billing period for the
1591
transaction begins before the effective date of the enactment of the tax or the tax rate increase
1592
under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
1593
day of the first billing period that begins after the effective date of the enactment of the tax or
1594
the tax rate increase.