Fifth Substitute S.B. 245

Representative David Clark proposes the following substitute bill:

1 FUNDING RELATING TO AIRPORTS, HIGHWAYS,
2 AND PUBLIC TRANSIT
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Curtis S. Bramble
6 House Sponsor: David Clark
7
8 LONG TITLE
9 General Description:
10 This bill amends the Motor Vehicles Code, the Sales and Use Tax Act, and the
11 Transportation Code relating to the local option highway construction and
12 transportation corridor preservation fee, a local sales and use tax to fund tourism,
13 recreation, cultural, convention, and airport facilities, a local sales and use tax to fund
14 certain airport, highway, or public transit projects or services, a state sales and use tax,
15 and financing of certain fixed guideways with certain airport revenue.
16 Highlighted Provisions:
17 This bill:
18 . addresses an audit relating to the local sales and use tax to fund tourism, recreation,
19 cultural, convention, and airport facilities;
20 . reallocates a portion of the revenue received from the local option highway
21 construction and transportation corridor preservation fee imposed in a county of the
22 first class from the County of the First Class State Highway Projects Fund to the
23 legislative body of a city of the first class located within a county of the first class
24 that has an international airport within its boundaries;
25 . repeals a purpose statement;

26 . provides a part title;
27 . defines terms;
28 . provides that a county legislative body may expend certain local sales and use tax
29 revenues for an airport facility in addition to other purposes allowed by statute;
30 . addresses provisions relating to ordinances and bonding for purposes of the local
31 sales and use tax to fund tourism, recreation, cultural, convention, and airport
32 facilities;
33 . authorizes a county of the second class to impose a local option sales and use tax to
34 fund certain airport, highway, or public transit projects or services;
35 . addresses the procedures and requirements for imposing the local option sales and
36 use tax to fund certain airport, highway, or public transit projects or services,
37 including providing that the sales and use tax is an agreement sales and use tax;
38 . imposes a state sales and use tax under certain circumstances;
39 . addresses the procedures and requirements for imposing the state sales and use tax,
40 including providing that:
41 . the sales and use tax is an agreement sales and use tax; and
42 . the revenues are distributed to certain public transit districts;
43 . modifies the sources of funding for the Local Transportation Corridor Preservation
44 Fund;
45 . creates a special revenue fund known as the County of the Second Class State
46 Highway Projects Fund, including:
47 . addressing funding of the fund; and
48 . addressing the purposes for which fund monies may be expended;
49 . provides that an airport operator may not use airport revenue to contribute to
50 constructing, equipping, maintaining, or operating a fixed guideway; and
51 . makes technical changes.
52 Monies Appropriated in this Bill:
53 None
54 Other Special Clauses:
55 This bill provides effective dates.
56 This bill coordinates with H.B. 206, Tax Amendments, to make substantive and

57 technical amendments, including enacting Sections 59-12-1904, 59-12-1905, 59-12-1906,
58 59-12-2005, 59-12-2006, and 59-12-2007.
59 Utah Code Sections Affected:
60 AMENDS:
61 11-41-102, as last amended by Laws of Utah 2007, Chapter 9
62 17-31-5.5, as last amended by Laws of Utah 2007, Chapter 3
63 41-1a-1222, as last amended by Laws of Utah 2007, Chapters 201 and 274
64 59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
65 59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
66 59-12-104.2, as last amended by Laws of Utah 2003, Chapter 312
67 59-12-108, as last amended by Laws of Utah 2007, Chapter 9
68 59-12-602, as last amended by Laws of Utah 1995, Chapter 248
69 59-12-603, as last amended by Laws of Utah 2007, Chapters 3, 9, and 219
70 72-2-117.5, as last amended by Laws of Utah 2007, Chapters 181 and 201
71 72-2-121, as last amended by Laws of Utah 2007, Chapter 201
72 72-10-102, as last amended by Laws of Utah 2003, Chapter 183
73 ENACTS:
74 59-12-601.1, Utah Code Annotated 1953
75 59-12-1901, Utah Code Annotated 1953
76 59-12-1902, Utah Code Annotated 1953
77 59-12-1903, Utah Code Annotated 1953
78 59-12-2001, Utah Code Annotated 1953
79 59-12-2002, Utah Code Annotated 1953
80 59-12-2003, Utah Code Annotated 1953
81 59-12-2004, Utah Code Annotated 1953
82 72-2-121.2, Utah Code Annotated 1953
83 72-10-215, Utah Code Annotated 1953
84 REPEALS:
85 59-12-601, as last amended by Laws of Utah 1991, Chapter 265
86
87 Be it enacted by the Legislature of the state of Utah:

88 Section 1. Section 11-41-102 is amended to read:
89 11-41-102. Definitions.
90 As used in this chapter:
91 (1) "Agreement" means an oral or written agreement between a:
92 (a) (i) county; or
93 (ii) municipality; and
94 (b) person.
95 (2) "Municipality" means a:
96 (a) city; or
97 (b) town.
98 (3) "Payment" includes:
99 (a) a payment;
100 (b) a rebate;
101 (c) a refund; or
102 (d) an amount similar to Subsections (3)(a) through (c).
103 (4) "Regional retail business" means a:
104 (a) retail business that occupies a floor area of more than 80,000 square feet;
105 (b) dealer as defined in Section 41-1a-102 ;
106 (c) retail shopping facility that has at least two anchor tenants if the total number of
107 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
108 feet; or
109 (d) grocery store that occupies a floor area of more than 30,000 square feet.
110 (5) (a) "Sales and use tax" means a tax:
111 (i) imposed on transactions within a:
112 (A) county; or
113 (B) municipality; and
114 (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
115 Sales and Use Tax Act.
116 (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
117 authorized under:
118 (i) Subsection 59-12-103 (2)(a)(i);

119 (ii) Subsection 59-12-103 (2)(b)(i);
120 (iii) Subsection 59-12-103 (2)(c)(i);
121 (iv) Subsection 59-12-103 (2)(d)(i)(A);
122 (v) Subsection 59-12-103 (2)(e)(ii)(A);
123 (vi) Subsection 59-12-103 (2)(e)(iii)(A);
124 (vii) Section 59-12-301 ;
125 (viii) Section 59-12-352 ;
126 (ix) Section 59-12-353 ;
127 (x) Section 59-12-603 ; or
128 (xi) Section 59-12-1201 .
129 (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
130 (i) to a person;
131 (ii) by a:
132 (A) county; or
133 (B) municipality;
134 (iii) to induce the person to locate or relocate a regional retail business within the:
135 (A) county; or
136 (B) municipality; and
137 (iv) that are derived from a sales and use tax.
138 (b) "Sales and use tax incentive payment" does not include funding for public
139 infrastructure.
140 Section 2. Section 17-31-5.5 is amended to read:
141 17-31-5.5. Independent audit -- Report to county legislative body -- Content.
142 (1) The legislative body of each county imposing the transient room tax provided for in
143 Section 59-12-301 shall annually engage an independent auditor to perform an audit to verify
144 that transient room tax funds are used only as authorized by this chapter and to report the
145 findings of the audit to the county legislative body.
146 (2) Subsection (1) applies to the tourism, recreation, cultural, [and] convention, and
147 airport facilities tax provided for in Section 59-12-603 , except that the audit verification
148 required under this Subsection (2) shall be for the uses authorized under Section 59-12-603 .
149 (3) The report required under Subsection (1) shall include a breakdown of expenditures

150 into the following categories:
151 (a) for the transient room tax, identification of expenditures for:
152 (i) establishing and promoting:
153 (A) recreation;
154 (B) tourism;
155 (C) film production; and
156 (D) conventions;
157 (ii) acquiring, leasing, constructing, furnishing, or operating:
158 (A) convention meeting rooms;
159 (B) exhibit halls;
160 (C) visitor information centers;
161 (D) museums; and
162 (E) related facilities;
163 (iii) acquiring or leasing land required for or related to the purposes listed in
164 Subsection (3)(a)(ii);
165 (iv) mitigation costs as identified in Subsection 17-31-2 (1)(d); and
166 (v) making the annual payment of principal, interest, premiums, and necessary reserves
167 for any or the aggregate of bonds issued to pay for costs referred to in Subsections
168 17-31-2 (2)(c) and (3)(a); and
169 (b) for the tourism, recreation, cultural, [and] convention, and airport facilities tax,
170 identification of expenditures for:
171 (i) financing tourism promotion, which means an activity to develop, encourage,
172 solicit, or market tourism that attracts transient guests to the county, including planning,
173 product development, and advertising;
174 (ii) the development, operation, and maintenance of the following facilities as defined
175 in Section 59-12-602 :
176 (A) [tourist facilities] an airport facility;
177 (B) [recreation facilities] a convention facility;
178 (C) a cultural [facilities; and] facility;
179 (D) [convention facilities] a recreation facility; and
180 (E) a tourist facility; and

181 (iii) a pledge as security for evidences of indebtedness under Subsection 59-12-603 (3).
182 (4) A county legislative body shall provide a copy of a report it receives under this
183 section to:
184 (a) the Governor's Office of Economic Development;
185 (b) its tourism tax advisory board; and
186 (c) the Office of the Legislative Fiscal Analyst.
187 Section 3. Section 41-1a-1222 is amended to read:
188 41-1a-1222. Local option highway construction and transportation corridor
189 preservation fee -- Exemptions -- Deposit -- County ordinance -- Notice.
190 (1) (a) (i) A county legislative body may impose a local option highway construction
191 and transportation corridor preservation fee of up to $10 on each motor vehicle registration
192 within the county.
193 (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
194 (b) If imposed under Subsection (1)(a), at the time application is made for registration
195 or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
196 option highway construction and transportation corridor preservation fee established by the
197 county legislative body.
198 (c) The following are exempt from the fee required under Subsection (1)(a):
199 (i) a motor vehicle that is exempt from the registration fee under Section 41-1a-1209 or
200 Subsection 41-1a-419 (3);
201 (ii) a commercial vehicle with an apportioned registration under Section 41-1a-301 ;
202 and
203 (iii) a motor vehicle with a Purple Heart special group license plate issued in
204 accordance with Section 41-1a-421 .
205 (2) (a) Except as provided in Subsection (2)(b), the revenue generated under this
206 section shall be:
207 (i) deposited in the Local Transportation Corridor Preservation Fund created in Section
208 72-2-117.5 ;
209 (ii) credited to the county from which it is generated; and
210 (iii) used and distributed in accordance with Section 72-2-117.5 .
211 (b) [Seventy percent of the] The revenue generated by a fee imposed under this section

212 in a county of the first class shall be[:] deposited or transferred as follows:
213 (i) 50% of the revenue shall be:
214 [(i)] (A) deposited in the County of the First Class State Highway Projects Fund
215 created in Section 72-2-121 ; and
216 [(ii)] (B) used in accordance with Section 72-2-121 [.];
217 (ii) 20% of the revenue shall be:
218 (A) transferred to the legislative body of a city of the first class:
219 (I) located in a county of the first class; and
220 (II) that has:
221 (Aa) an international airport within its boundaries; and
222 (Bb) a United States customs office on the premises of the international airport
223 described in Subsection (2)(b)(ii)(A)(II)(Aa); and
224 (B) used by the city described in Subsection (2)(b)(ii)(A) for highway construction,
225 reconstruction, or maintenance projects; and
226 (iii) 30% of the revenue shall be deposited, credited, and used as provided in
227 Subsection (2)(a).
228 (3) To impose or change the amount of a fee under this section, the county legislative
229 body shall pass an ordinance:
230 (a) approving the fee;
231 (b) setting the amount of the fee; and
232 (c) providing an effective date for the fee as provided in Subsection (4).
233 (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
234 the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
235 meeting the requirements of Subsection (4)(b) from the county prior to April 1.
236 (b) The notice described in Subsection (4)(a) shall:
237 (i) state that the county will enact, change, or repeal a fee under this part;
238 (ii) include a copy of the ordinance imposing the fee; and
239 (iii) if the county enacts or changes the fee under this section, state the amount of the
240 fee.
241 Section 4. Section 59-12-102 is amended to read:
242 59-12-102. Definitions.

243 As used in this chapter:
244 (1) (a) "Admission or user fees" includes season passes.
245 (b) "Admission or user fees" does not include annual membership dues to private
246 organizations.
247 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
248 Section 59-12-102.1 .
249 (3) "Agreement combined tax rate" means the sum of the tax rates:
250 (a) listed under Subsection (4); and
251 (b) that are imposed within a local taxing jurisdiction.
252 (4) "Agreement sales and use tax" means a tax imposed under:
253 (a) Subsection 59-12-103 (2)(a)(i)(A);
254 (b) Subsection 59-12-103 (2)(b)(i);
255 (c) Subsection 59-12-103 (2)(c)(i);
256 (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
257 (e) Subsection 59-12-103 (2)(e)(ii)(A)(I);
258 (f) Subsection 59-12-103 (2)(e)(iii)(A)(I);
259 (g) Section 59-12-204 ;
260 (h) Section 59-12-401 ;
261 (i) Section 59-12-402 ;
262 (j) Section 59-12-501 ;
263 (k) Section 59-12-502 ;
264 (l) Section 59-12-703 ;
265 (m) Section 59-12-802 ;
266 (n) Section 59-12-804 ;
267 (o) Section 59-12-1001 ;
268 (p) Section 59-12-1102 ;
269 (q) Section 59-12-1302 ;
270 (r) Section 59-12-1402 ;
271 (s) Section 59-12-1503 ; [or]
272 (t) Section 59-12-1703 [.];
273 (u) Section 59-12-1903 ; or

274 (v) Section 59-12-2003 .
275 (5) "Aircraft" is as defined in Section 72-10-102 .
276 (6) "Alcoholic beverage" means a beverage that:
277 (a) is suitable for human consumption; and
278 (b) contains .5% or more alcohol by volume.
279 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
280 (8) "Assisted amusement device" means an amusement device, skill device, or ride
281 device that is started and stopped by an individual:
282 (a) who is not the purchaser or renter of the right to use or operate the amusement
283 device, skill device, or ride device; and
284 (b) at the direction of the seller of the right to use the amusement device, skill device,
285 or ride device.
286 (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
287 washing of tangible personal property if the cleaning or washing labor is primarily performed
288 by an individual:
289 (a) who is not the purchaser of the cleaning or washing of the tangible personal
290 property; and
291 (b) at the direction of the seller of the cleaning or washing of the tangible personal
292 property.
293 (10) "Authorized carrier" means:
294 (a) in the case of vehicles operated over public highways, the holder of credentials
295 indicating that the vehicle is or will be operated pursuant to both the International Registration
296 Plan and the International Fuel Tax Agreement;
297 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
298 certificate or air carrier's operating certificate; or
299 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
300 stock, the holder of a certificate issued by the United States Surface Transportation Board.
301 (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
302 following that is used as the primary source of energy to produce fuel or electricity:
303 (i) material from a plant or tree; or
304 (ii) other organic matter that is available on a renewable basis, including:

305 (A) slash and brush from forests and woodlands;
306 (B) animal waste;
307 (C) methane produced:
308 (I) at landfills; or
309 (II) as a byproduct of the treatment of wastewater residuals;
310 (D) aquatic plants; and
311 (E) agricultural products.
312 (b) "Biomass energy" does not include:
313 (i) black liquor;
314 (ii) treated woods; or
315 (iii) biomass from municipal solid waste other than methane produced:
316 (A) at landfills; or
317 (B) as a byproduct of the treatment of wastewater residuals.
318 (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
319 property if:
320 (i) one or more of the items of tangible personal property is food and food ingredients;
321 and
322 (ii) the items of tangible personal property are:
323 (A) distinct and identifiable; and
324 (B) sold for one price that is not itemized.
325 (b) "Bundled transaction" does not include the sale of tangible personal property if the
326 sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
327 tangible personal property included in the transaction.
328 (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
329 and identifiable does not include:
330 (i) packaging that:
331 (A) accompanies the sale of the tangible personal property; and
332 (B) is incidental or immaterial to the sale of the tangible personal property;
333 (ii) tangible personal property provided free of charge with the purchase of another
334 item of tangible personal property; or
335 (iii) an item of tangible personal property included in the definition of "purchase

336 price."
337 (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
338 provided free of charge with the purchase of another item of tangible personal property if the
339 sales price of the purchased item of tangible personal property does not vary depending on the
340 inclusion of the tangible personal property provided free of charge.
341 (13) "Certified automated system" means software certified by the governing board of
342 the agreement in accordance with Section 59-12-102.1 that:
343 (a) calculates the agreement sales and use tax imposed within a local taxing
344 jurisdiction:
345 (i) on a transaction; and
346 (ii) in the states that are members of the agreement;
347 (b) determines the amount of agreement sales and use tax to remit to a state that is a
348 member of the agreement; and
349 (c) maintains a record of the transaction described in Subsection (13)(a)(i).
350 (14) "Certified service provider" means an agent certified:
351 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
352 and
353 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
354 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
355 own purchases.
356 (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
357 suitable for general use.
358 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
359 commission shall make rules:
360 (i) listing the items that constitute "clothing"; and
361 (ii) that are consistent with the list of items that constitute "clothing" under the
362 agreement.
363 (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
364 (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
365 fuels that does not constitute industrial use under Subsection (42) or residential use under
366 Subsection (80).

367 (18) (a) "Common carrier" means a person engaged in or transacting the business of
368 transporting passengers, freight, merchandise, or other property for hire within this state.
369 (b) (i) "Common carrier" does not include a person who, at the time the person is
370 traveling to or from that person's place of employment, transports a passenger to or from the
371 passenger's place of employment.
372 (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
373 Utah Administrative Rulemaking Act, the commission may make rules defining what
374 constitutes a person's place of employment.
375 (19) "Component part" includes:
376 (a) poultry, dairy, and other livestock feed, and their components;
377 (b) baling ties and twine used in the baling of hay and straw;
378 (c) fuel used for providing temperature control of orchards and commercial
379 greenhouses doing a majority of their business in wholesale sales, and for providing power for
380 off-highway type farm machinery; and
381 (d) feed, seeds, and seedlings.
382 (20) "Computer" means an electronic device that accepts information:
383 (a) (i) in digital form; or
384 (ii) in a form similar to digital form; and
385 (b) manipulates that information for a result based on a sequence of instructions.
386 (21) "Computer software" means a set of coded instructions designed to cause:
387 (a) a computer to perform a task; or
388 (b) automatic data processing equipment to perform a task.
389 (22) "Construction materials" means any tangible personal property that will be
390 converted into real property.
391 (23) "Delivered electronically" means delivered to a purchaser by means other than
392 tangible storage media.
393 (24) (a) "Delivery charge" means a charge:
394 (i) by a seller of:
395 (A) tangible personal property; or
396 (B) services; and
397 (ii) for preparation and delivery of the tangible personal property or services described

398 in Subsection (24)(a)(i) to a location designated by the purchaser.
399 (b) "Delivery charge" includes a charge for the following:
400 (i) transportation;
401 (ii) shipping;
402 (iii) postage;
403 (iv) handling;
404 (v) crating; or
405 (vi) packing.
406 (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
407 (i) a bridge;
408 (ii) a crown if that crown covers at least 75% of a tooth structure;
409 (iii) a denture;
410 (iv) an implant;
411 (v) an orthodontic device designed to:
412 (A) retain the position or spacing of teeth; and
413 (B) replace a missing tooth;
414 (vi) a partial denture; or
415 (vii) a device similar to Subsections (25)(a)(i) through (vi).
416 (b) "Dental prosthesis" does not include an appliance or device, other than a device
417 described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
418 apply force to the teeth and their supporting structures to:
419 (i) produce changes in their relationship to each other; and
420 (ii) control their growth and development.
421 (26) "Dietary supplement" means a product, other than tobacco, that:
422 (a) is intended to supplement the diet;
423 (b) contains one or more of the following dietary ingredients:
424 (i) a vitamin;
425 (ii) a mineral;
426 (iii) an herb or other botanical;
427 (iv) an amino acid;
428 (v) a dietary substance for use by humans to supplement the diet by increasing the total

429 dietary intake; or
430 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
431 described in Subsections (26)(b)(i) through (v);
432 (c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
433 (A) tablet form;
434 (B) capsule form;
435 (C) powder form;
436 (D) softgel form;
437 (E) gelcap form; or
438 (F) liquid form; or
439 (ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
440 a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
441 (A) as conventional food; and
442 (B) for use as a sole item of:
443 (I) a meal; or
444 (II) the diet; and
445 (d) is required to be labeled as a dietary supplement:
446 (i) identifiable by the "Supplemental Facts" box found on the label; and
447 (ii) as required by 21 C.F.R. Sec. 101.36.
448 (27) (a) "Direct mail" means printed material delivered or distributed by United States
449 mail or other delivery service:
450 (i) to:
451 (A) a mass audience; or
452 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
453 (ii) if the cost of the printed material is not billed directly to the recipients.
454 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
455 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
456 (c) "Direct mail" does not include multiple items of printed material delivered to a
457 single address.
458 (28) (a) "Disposable home medical equipment or supplies" means medical equipment
459 or supplies that:

460 (i) cannot withstand repeated use; and
461 (ii) are purchased by, for, or on behalf of a person other than:
462 (A) a health care facility as defined in Section 26-21-2 ;
463 (B) a health care provider as defined in Section 78-14-3 ;
464 (C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
465 (D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
466 (b) "Disposable home medical equipment or supplies" does not include:
467 (i) a drug;
468 (ii) durable medical equipment;
469 (iii) a hearing aid;
470 (iv) a hearing aid accessory;
471 (v) mobility enhancing equipment; or
472 (vi) tangible personal property used to correct impaired vision, including:
473 (A) eyeglasses; or
474 (B) contact lenses.
475 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
476 commission may by rule define what constitutes medical equipment or supplies.
477 (29) (a) "Drug" means a compound, substance, or preparation, or a component of a
478 compound, substance, or preparation that is:
479 (i) recognized in:
480 (A) the official United States Pharmacopoeia;
481 (B) the official Homeopathic Pharmacopoeia of the United States;
482 (C) the official National Formulary; or
483 (D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
484 (ii) intended for use in the:
485 (A) diagnosis of disease;
486 (B) cure of disease;
487 (C) mitigation of disease;
488 (D) treatment of disease; or
489 (E) prevention of disease; or
490 (iii) intended to affect:

491 (A) the structure of the body; or
492 (B) any function of the body.
493 (b) "Drug" does not include:
494 (i) food and food ingredients;
495 (ii) a dietary supplement;
496 (iii) an alcoholic beverage; or
497 (iv) a prosthetic device.
498 (30) (a) Except as provided in Subsection (30)(c), "durable medical equipment" means
499 equipment that:
500 (i) can withstand repeated use;
501 (ii) is primarily and customarily used to serve a medical purpose;
502 (iii) generally is not useful to a person in the absence of illness or injury; and
503 (iv) is not worn in or on the body.
504 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
505 equipment described in Subsection (30)(a).
506 (c) Notwithstanding Subsection (30)(a), "durable medical equipment" does not include
507 mobility enhancing equipment.
508 (31) "Electronic" means:
509 (a) relating to technology; and
510 (b) having:
511 (i) electrical capabilities;
512 (ii) digital capabilities;
513 (iii) magnetic capabilities;
514 (iv) wireless capabilities;
515 (v) optical capabilities;
516 (vi) electromagnetic capabilities; or
517 (vii) capabilities similar to Subsections (31)(b)(i) through (vi).
518 (32) "Employee" is as defined in Section 59-10-401 .
519 (33) "Fixed guideway" means a public transit facility that uses and occupies:
520 (a) rail for the use of public transit; or
521 (b) a separate right-of-way for the use of public transit.

522 (34) (a) "Food and food ingredients" means substances:
523 (i) regardless of whether the substances are in:
524 (A) liquid form;
525 (B) concentrated form;
526 (C) solid form;
527 (D) frozen form;
528 (E) dried form; or
529 (F) dehydrated form; and
530 (ii) that are:
531 (A) sold for:
532 (I) ingestion by humans; or
533 (II) chewing by humans; and
534 (B) consumed for the substance's:
535 (I) taste; or
536 (II) nutritional value.
537 (b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).
538 (c) "Food and food ingredients" does not include:
539 (i) an alcoholic beverage;
540 (ii) tobacco; or
541 (iii) prepared food.
542 (35) (a) "Fundraising sales" means sales:
543 (i) (A) made by a school; or
544 (B) made by a school student;
545 (ii) that are for the purpose of raising funds for the school to purchase equipment,
546 materials, or provide transportation; and
547 (iii) that are part of an officially sanctioned school activity.
548 (b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity"
549 means a school activity:
550 (i) that is conducted in accordance with a formal policy adopted by the school or school
551 district governing the authorization and supervision of fundraising activities;
552 (ii) that does not directly or indirectly compensate an individual teacher or other

553 educational personnel by direct payment, commissions, or payment in kind; and
554 (iii) the net or gross revenues from which are deposited in a dedicated account
555 controlled by the school or school district.
556 (36) "Geothermal energy" means energy contained in heat that continuously flows
557 outward from the earth that is used as the sole source of energy to produce electricity.
558 (37) "Governing board of the agreement" means the governing board of the agreement
559 that is:
560 (a) authorized to administer the agreement; and
561 (b) established in accordance with the agreement.
562 (38) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
563 (i) the executive branch of the state, including all departments, institutions, boards,
564 divisions, bureaus, offices, commissions, and committees;
565 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
566 Office of the Court Administrator, and similar administrative units in the judicial branch;
567 (iii) the legislative branch of the state, including the House of Representatives, the
568 Senate, the Legislative Printing Office, the Office of Legislative Research and General
569 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
570 Analyst;
571 (iv) the National Guard;
572 (v) an independent entity as defined in Section 63E-1-102 ; or
573 (vi) a political subdivision as defined in Section 17B-1-102 .
574 (b) "Governmental entity" does not include the state systems of public and higher
575 education, including:
576 (i) a college campus of the Utah College of Applied Technology;
577 (ii) a school;
578 (iii) the State Board of Education;
579 (iv) the State Board of Regents; or
580 (v) a state institution of higher education as defined in Section 53B-3-102 .
581 (39) (a) "Hearing aid" means:
582 (i) an instrument or device having an electronic component that is designed to:
583 (A) (I) improve impaired human hearing; or

584 (II) correct impaired human hearing; and
585 (B) (I) be worn in the human ear; or
586 (II) affixed behind the human ear;
587 (ii) an instrument or device that is surgically implanted into the cochlea; or
588 (iii) a telephone amplifying device.
589 (b) "Hearing aid" does not include:
590 (i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
591 having an electronic component that is designed to be worn on the body;
592 (ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
593 designed to be used by one individual, including:
594 (A) a personal amplifying system;
595 (B) a personal FM system;
596 (C) a television listening system; or
597 (D) a device or system similar to a device or system described in Subsections
598 (39)(b)(ii)(A) through (C); or
599 (iii) an assistive listening device or system designed to be used by more than one
600 individual, including:
601 (A) a device or system installed in:
602 (I) an auditorium;
603 (II) a church;
604 (III) a conference room;
605 (IV) a synagogue; or
606 (V) a theater; or
607 (B) a device or system similar to a device or system described in Subsections
608 (39)(b)(iii)(A)(I) through (V).
609 (40) (a) "Hearing aid accessory" means a hearing aid:
610 (i) component;
611 (ii) attachment; or
612 (iii) accessory.
613 (b) "Hearing aid accessory" includes:
614 (i) a hearing aid neck loop;

615 (ii) a hearing aid cord;
616 (iii) a hearing aid ear mold;
617 (iv) hearing aid tubing;
618 (v) a hearing aid ear hook; or
619 (vi) a hearing aid remote control.
620 (c) "Hearing aid accessory" does not include:
621 (i) a component, attachment, or accessory designed to be used only with an:
622 (A) instrument or device described in Subsection (39)(b)(i); or
623 (B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or
624 (ii) a hearing aid battery.
625 (41) "Hydroelectric energy" means water used as the sole source of energy to produce
626 electricity.
627 (42) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
628 other fuels:
629 (a) in mining or extraction of minerals;
630 (b) in agricultural operations to produce an agricultural product up to the time of
631 harvest or placing the agricultural product into a storage facility, including:
632 (i) commercial greenhouses;
633 (ii) irrigation pumps;
634 (iii) farm machinery;
635 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
636 registered under Title 41, Chapter 1a, Part 2, Registration; and
637 (v) other farming activities;
638 (c) in manufacturing tangible personal property at an establishment described in SIC
639 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
640 Executive Office of the President, Office of Management and Budget;
641 (d) by a scrap recycler if:
642 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
643 one or more of the following items into prepared grades of processed materials for use in new
644 products:
645 (A) iron;

646 (B) steel;
647 (C) nonferrous metal;
648 (D) paper;
649 (E) glass;
650 (F) plastic;
651 (G) textile; or
652 (H) rubber; and
653 (ii) the new products under Subsection (42)(d)(i) would otherwise be made with
654 nonrecycled materials; or
655 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
656 cogeneration facility as defined in Section 54-2-1 .
657 (43) (a) Except as provided in Subsection (43)(b), "installation charge" means a charge
658 for installing tangible personal property.
659 (b) Notwithstanding Subsection (43)(a), "installation charge" does not include a charge
660 for repairs or renovations of tangible personal property.
661 (44) (a) "Lease" or "rental" means a transfer of possession or control of tangible
662 personal property for:
663 (i) (A) a fixed term; or
664 (B) an indeterminate term; and
665 (ii) consideration.
666 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
667 amount of consideration may be increased or decreased by reference to the amount realized
668 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
669 Code.
670 (c) "Lease" or "rental" does not include:
671 (i) a transfer of possession or control of property under a security agreement or
672 deferred payment plan that requires the transfer of title upon completion of the required
673 payments;
674 (ii) a transfer of possession or control of property under an agreement that requires the
675 transfer of title:
676 (A) upon completion of required payments; and

677 (B) if the payment of an option price does not exceed the greater of:
678 (I) $100; or
679 (II) 1% of the total required payments; or
680 (iii) providing tangible personal property along with an operator for a fixed period of
681 time or an indeterminate period of time if the operator is necessary for equipment to perform as
682 designed.
683 (d) For purposes of Subsection (44)(c)(iii), an operator is necessary for equipment to
684 perform as designed if the operator's duties exceed the:
685 (i) set-up of tangible personal property;
686 (ii) maintenance of tangible personal property; or
687 (iii) inspection of tangible personal property.
688 (45) "Load and leave" means delivery to a purchaser by use of a tangible storage media
689 if the tangible storage media is not physically transferred to the purchaser.
690 (46) "Local taxing jurisdiction" means a:
691 (a) county that is authorized to impose an agreement sales and use tax;
692 (b) city that is authorized to impose an agreement sales and use tax; or
693 (c) town that is authorized to impose an agreement sales and use tax.
694 (47) "Manufactured home" is as defined in Section 58-56-3 .
695 (48) For purposes of Section 59-12-104 , "manufacturing facility" means:
696 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
697 Industrial Classification Manual of the federal Executive Office of the President, Office of
698 Management and Budget;
699 (b) a scrap recycler if:
700 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
701 one or more of the following items into prepared grades of processed materials for use in new
702 products:
703 (A) iron;
704 (B) steel;
705 (C) nonferrous metal;
706 (D) paper;
707 (E) glass;

708 (F) plastic;
709 (G) textile; or
710 (H) rubber; and
711 (ii) the new products under Subsection (48)(b)(i) would otherwise be made with
712 nonrecycled materials; or
713 (c) a cogeneration facility as defined in Section 54-2-1 .
714 (49) "Member of the immediate family of the producer" means a person who is related
715 to a producer described in Subsection 59-12-104 (20)(a) as a:
716 (a) child or stepchild, regardless of whether the child or stepchild is:
717 (i) an adopted child or adopted stepchild; or
718 (ii) a foster child or foster stepchild;
719 (b) grandchild or stepgrandchild;
720 (c) grandparent or stepgrandparent;
721 (d) nephew or stepnephew;
722 (e) niece or stepniece;
723 (f) parent or stepparent;
724 (g) sibling or stepsibling;
725 (h) spouse;
726 (i) person who is the spouse of a person described in Subsections (49)(a) through (g);
727 or
728 (j) person similar to a person described in Subsections (49)(a) through (i) as
729 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
730 Administrative Rulemaking Act.
731 (50) "Mobile home" is as defined in Section 58-56-3 .
732 (51) "Mobile telecommunications service" is as defined in the Mobile
733 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
734 (52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"
735 means equipment that is:
736 (i) primarily and customarily used to provide or increase the ability to move from one
737 place to another;
738 (ii) appropriate for use in a:

739 (A) home; or
740 (B) motor vehicle; and
741 (iii) not generally used by persons with normal mobility.
742 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
743 the equipment described in Subsection (52)(a).
744 (c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
745 include:
746 (i) a motor vehicle;
747 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
748 vehicle manufacturer;
749 (iii) durable medical equipment; or
750 (iv) a prosthetic device.
751 (53) "Model 1 seller" means a seller that has selected a certified service provider as the
752 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
753 use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
754 seller's own purchases.
755 (54) "Model 2 seller" means a seller that:
756 (a) except as provided in Subsection (54)(b), has selected a certified automated system
757 to perform the seller's sales tax functions for agreement sales and use taxes; and
758 (b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
759 sales tax:
760 (i) collected by the seller; and
761 (ii) to the appropriate local taxing jurisdiction.
762 (55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:
763 (i) sales in at least five states that are members of the agreement;
764 (ii) total annual sales revenues of at least $500,000,000;
765 (iii) a proprietary system that calculates the amount of tax:
766 (A) for an agreement sales and use tax; and
767 (B) due to each local taxing jurisdiction; and
768 (iv) entered into a performance agreement with the governing board of the agreement.
769 (b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of

770 sellers using the same proprietary system.
771 (56) "Modular home" means a modular unit as defined in Section 58-56-3 .
772 (57) "Motor vehicle" is as defined in Section 41-1a-102 .
773 (58) "Oil shale" means a group of fine black to dark brown shales containing
774 bituminous material that yields petroleum upon distillation.
775 (59) (a) "Other fuels" means products that burn independently to produce heat or
776 energy.
777 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
778 personal property.
779 (60) "Pawnbroker" is as defined in Section 13-32a-102 .
780 (61) "Pawn transaction" is as defined in Section 13-32a-102 .
781 (62) (a) "Permanently attached to real property" means that for tangible personal
782 property attached to real property:
783 (i) the attachment of the tangible personal property to the real property:
784 (A) is essential to the use of the tangible personal property; and
785 (B) suggests that the tangible personal property will remain attached to the real
786 property in the same place over the useful life of the tangible personal property; or
787 (ii) if the tangible personal property is detached from the real property, the detachment
788 would:
789 (A) cause substantial damage to the tangible personal property; or
790 (B) require substantial alteration or repair of the real property to which the tangible
791 personal property is attached.
792 (b) "Permanently attached to real property" includes:
793 (i) the attachment of an accessory to the tangible personal property if the accessory is:
794 (A) essential to the operation of the tangible personal property; and
795 (B) attached only to facilitate the operation of the tangible personal property;
796 (ii) a temporary detachment of tangible personal property from real property for a
797 repair or renovation if the repair or renovation is performed where the tangible personal
798 property and real property are located; or
799 (iii) an attachment of the following tangible personal property to real property,
800 regardless of whether the attachment to real property is only through a line that supplies water,

801 electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
802 rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
803 (A) property attached to oil, gas, or water pipelines, other than the property listed in
804 Subsection (62)(c)(iii);
805 (B) a hot water heater;
806 (C) a water softener system; or
807 (D) a water filtration system, other than a water filtration system manufactured as part
808 of a refrigerator.
809 (c) "Permanently attached to real property" does not include:
810 (i) the attachment of portable or movable tangible personal property to real property if
811 that portable or movable tangible personal property is attached to real property only for:
812 (A) convenience;
813 (B) stability; or
814 (C) for an obvious temporary purpose;
815 (ii) the detachment of tangible personal property from real property other than the
816 detachment described in Subsection (62)(b)(ii); or
817 (iii) an attachment of the following tangible personal property to real property if the
818 attachment to real property is only through a line that supplies water, electricity, gas, telephone,
819 cable, or supplies a similar item as determined by the commission by rule made in accordance
820 with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
821 (A) a refrigerator;
822 (B) a washer;
823 (C) a dryer;
824 (D) a stove;
825 (E) a television;
826 (F) a computer;
827 (G) a telephone; or
828 (H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
829 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
830 Administrative Rulemaking Act.
831 (63) "Person" includes any individual, firm, partnership, joint venture, association,

832 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
833 municipality, district, or other local governmental entity of the state, or any group or
834 combination acting as a unit.
835 (64) "Place of primary use":
836 (a) for telephone service other than mobile telecommunications service, means the
837 street address representative of where the purchaser's use of the telephone service primarily
838 occurs, which shall be:
839 (i) the residential street address of the purchaser; or
840 (ii) the primary business street address of the purchaser; or
841 (b) for mobile telecommunications service, is as defined in the Mobile
842 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
843 (65) "Postproduction" means an activity related to the finishing or duplication of a
844 medium described in Subsection 59-12-104 (56)(a).
845 (66) (a) "Prepared food" means:
846 (i) food:
847 (A) sold in a heated state; or
848 (B) heated by a seller;
849 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
850 item; or
851 (iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
852 by the seller, including a:
853 (A) plate;
854 (B) knife;
855 (C) fork;
856 (D) spoon;
857 (E) glass;
858 (F) cup;
859 (G) napkin; or
860 (H) straw.
861 (b) "Prepared food" does not include:
862 (i) food that a seller only:

863 (A) cuts;
864 (B) repackages; or
865 (C) pasteurizes; or
866 (ii) (A) the following:
867 (I) raw egg;
868 (II) raw fish;
869 (III) raw meat;
870 (IV) raw poultry; or
871 (V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);
872 and
873 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
874 Food and Drug Administration's Food Code that a consumer cook the items described in
875 Subsection (66)(b)(ii)(A) to prevent food borne illness; or
876 (iii) the following if sold without eating utensils provided by the seller:
877 (A) food and food ingredients sold by a seller if the seller's proper primary
878 classification under the 2002 North American Industry Classification System of the federal
879 Executive Office of the President, Office of Management and Budget, is manufacturing in
880 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
881 Manufacturing;
882 (B) food and food ingredients sold in an unheated state:
883 (I) by weight or volume; and
884 (II) as a single item; or
885 (C) a bakery item, including:
886 (I) a bagel;
887 (II) a bar;
888 (III) a biscuit;
889 (IV) bread;
890 (V) a bun;
891 (VI) a cake;
892 (VII) a cookie;
893 (VIII) a croissant;

894 (IX) a danish;
895 (X) a donut;
896 (XI) a muffin;
897 (XII) a pastry;
898 (XIII) a pie;
899 (XIV) a roll;
900 (XV) a tart;
901 (XVI) a torte; or
902 (XVII) a tortilla.
903 (c) Notwithstanding Subsection (66)(a)(iii), an eating utensil provided by the seller
904 does not include the following used to transport the food:
905 (i) a container; or
906 (ii) packaging.
907 (67) "Prescription" means an order, formula, or recipe that is issued:
908 (a) (i) orally;
909 (ii) in writing;
910 (iii) electronically; or
911 (iv) by any other manner of transmission; and
912 (b) by a licensed practitioner authorized by the laws of a state.
913 (68) (a) Except as provided in Subsection (68)(b)(ii) or (iii), "prewritten computer
914 software" means computer software that is not designed and developed:
915 (i) by the author or other creator of the computer software; and
916 (ii) to the specifications of a specific purchaser.
917 (b) "Prewritten computer software" includes:
918 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
919 software is not designed and developed:
920 (A) by the author or other creator of the computer software; and
921 (B) to the specifications of a specific purchaser;
922 (ii) notwithstanding Subsection (68)(a), computer software designed and developed by
923 the author or other creator of the computer software to the specifications of a specific purchaser
924 if the computer software is sold to a person other than the purchaser; or

925 (iii) notwithstanding Subsection (68)(a) and except as provided in Subsection (68)(c),
926 prewritten computer software or a prewritten portion of prewritten computer software:
927 (A) that is modified or enhanced to any degree; and
928 (B) if the modification or enhancement described in Subsection (68)(b)(iii)(A) is
929 designed and developed to the specifications of a specific purchaser.
930 (c) Notwithstanding Subsection (68)(b)(iii), "prewritten computer software" does not
931 include a modification or enhancement described in Subsection (68)(b)(iii) if the charges for
932 the modification or enhancement are:
933 (i) reasonable; and
934 (ii) separately stated on the invoice or other statement of price provided to the
935 purchaser.
936 (69) (a) "Prosthetic device" means a device that is worn on or in the body to:
937 (i) artificially replace a missing portion of the body;
938 (ii) prevent or correct a physical deformity or physical malfunction; or
939 (iii) support a weak or deformed portion of the body.
940 (b) "Prosthetic device" includes:
941 (i) parts used in the repairs or renovation of a prosthetic device;
942 (ii) replacement parts for a prosthetic device; or
943 (iii) a dental prosthesis.
944 (c) "Prosthetic device" does not include:
945 (i) corrective eyeglasses;
946 (ii) contact lenses; or
947 (iii) hearing aids.
948 (70) (a) "Protective equipment" means an item:
949 (i) for human wear; and
950 (ii) that is:
951 (A) designed as protection:
952 (I) to the wearer against injury or disease; or
953 (II) against damage or injury of other persons or property; and
954 (B) not suitable for general use.
955 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

956 commission shall make rules:
957 (i) listing the items that constitute "protective equipment"; and
958 (ii) that are consistent with the list of items that constitute "protective equipment"
959 under the agreement.
960 (71) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
961 printed matter, other than a photocopy:
962 (i) regardless of:
963 (A) characteristics;
964 (B) copyright;
965 (C) form;
966 (D) format;
967 (E) method of reproduction; or
968 (F) source; and
969 (ii) made available in printed or electronic format.
970 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
971 commission may by rule define the term "photocopy."
972 (72) (a) "Purchase price" and "sales price" mean the total amount of consideration:
973 (i) valued in money; and
974 (ii) for which tangible personal property or services are:
975 (A) sold;
976 (B) leased; or
977 (C) rented.
978 (b) "Purchase price" and "sales price" include:
979 (i) the seller's cost of the tangible personal property or services sold;
980 (ii) expenses of the seller, including:
981 (A) the cost of materials used;
982 (B) a labor cost;
983 (C) a service cost;
984 (D) interest;
985 (E) a loss;
986 (F) the cost of transportation to the seller; or

987 (G) a tax imposed on the seller; or
988 (iii) a charge by the seller for any service necessary to complete the sale.
989 (c) "Purchase price" and "sales price" do not include:
990 (i) a discount:
991 (A) in a form including:
992 (I) cash;
993 (II) term; or
994 (III) coupon;
995 (B) that is allowed by a seller;
996 (C) taken by a purchaser on a sale; and
997 (D) that is not reimbursed by a third party; or
998 (ii) the following if separately stated on an invoice, bill of sale, or similar document
999 provided to the purchaser:
1000 (A) the amount of a trade-in;
1001 (B) the following from credit extended on the sale of tangible personal property or
1002 services:
1003 (I) interest charges;
1004 (II) financing charges; or
1005 (III) carrying charges;
1006 (C) a tax or fee legally imposed directly on the consumer;
1007 (D) a delivery charge; or
1008 (E) an installation charge.
1009 (73) "Purchaser" means a person to whom:
1010 (a) a sale of tangible personal property is made; or
1011 (b) a service is furnished.
1012 (74) "Regularly rented" means:
1013 (a) rented to a guest for value three or more times during a calendar year; or
1014 (b) advertised or held out to the public as a place that is regularly rented to guests for
1015 value.
1016 (75) "Renewable energy" means:
1017 (a) biomass energy;

1018 (b) hydroelectric energy;
1019 (c) geothermal energy;
1020 (d) solar energy; or
1021 (e) wind energy.
1022 (76) (a) "Renewable energy production facility" means a facility that:
1023 (i) uses renewable energy to produce electricity; and
1024 (ii) has a production capacity of 20 kilowatts or greater.
1025 (b) A facility is a renewable energy production facility regardless of whether the
1026 facility is:
1027 (i) connected to an electric grid; or
1028 (ii) located on the premises of an electricity consumer.
1029 (77) "Rental" is as defined in Subsection (44).
1030 (78) "Repairs or renovations of tangible personal property" means:
1031 (a) a repair or renovation of tangible personal property that is not permanently attached
1032 to real property; or
1033 (b) attaching tangible personal property to other tangible personal property if the other
1034 tangible personal property to which the tangible personal property is attached is not
1035 permanently attached to real property.
1036 (79) "Research and development" means the process of inquiry or experimentation
1037 aimed at the discovery of facts, devices, technologies, or applications and the process of
1038 preparing those devices, technologies, or applications for marketing.
1039 (80) "Residential use" means the use in or around a home, apartment building, sleeping
1040 quarters, and similar facilities or accommodations.
1041 (81) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1042 than:
1043 (a) resale;
1044 (b) sublease; or
1045 (c) subrent.
1046 (82) (a) "Retailer" means any person engaged in a regularly organized business in
1047 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
1048 who is selling to the user or consumer and not for resale.

1049 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1050 engaged in the business of selling to users or consumers within the state.
1051 (83) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1052 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1053 Subsection 59-12-103 (1), for consideration.
1054 (b) "Sale" includes:
1055 (i) installment and credit sales;
1056 (ii) any closed transaction constituting a sale;
1057 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1058 chapter;
1059 (iv) any transaction if the possession of property is transferred but the seller retains the
1060 title as security for the payment of the price; and
1061 (v) any transaction under which right to possession, operation, or use of any article of
1062 tangible personal property is granted under a lease or contract and the transfer of possession
1063 would be taxable if an outright sale were made.
1064 (84) "Sale at retail" is as defined in Subsection (81).
1065 (85) "Sale-leaseback transaction" means a transaction by which title to tangible
1066 personal property that is subject to a tax under this chapter is transferred:
1067 (a) by a purchaser-lessee;
1068 (b) to a lessor;
1069 (c) for consideration; and
1070 (d) if:
1071 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1072 of the tangible personal property;
1073 (ii) the sale of the tangible personal property to the lessor is intended as a form of
1074 financing:
1075 (A) for the property; and
1076 (B) to the purchaser-lessee; and
1077 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1078 is required to:
1079 (A) capitalize the property for financial reporting purposes; and

1080 (B) account for the lease payments as payments made under a financing arrangement.
1081 (86) "Sales price" is as defined in Subsection (72).
1082 (87) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1083 amounts charged by a school:
1084 (i) sales that are directly related to the school's educational functions or activities
1085 including:
1086 (A) the sale of:
1087 (I) textbooks;
1088 (II) textbook fees;
1089 (III) laboratory fees;
1090 (IV) laboratory supplies; or
1091 (V) safety equipment;
1092 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1093 that:
1094 (I) a student is specifically required to wear as a condition of participation in a
1095 school-related event or school-related activity; and
1096 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1097 place of ordinary clothing;
1098 (C) sales of the following if the net or gross revenues generated by the sales are
1099 deposited into a school district fund or school fund dedicated to school meals:
1100 (I) food and food ingredients; or
1101 (II) prepared food; or
1102 (D) transportation charges for official school activities; or
1103 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1104 event or school-related activity.
1105 (b) "Sales relating to schools" does not include:
1106 (i) bookstore sales of items that are not educational materials or supplies;
1107 (ii) except as provided in Subsection (87)(a)(i)(B):
1108 (A) clothing;
1109 (B) clothing accessories or equipment;
1110 (C) protective equipment; or

1111 (D) sports or recreational equipment; or
1112 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1113 event or school-related activity if the amounts paid or charged are passed through to a person:
1114 (A) other than a:
1115 (I) school;
1116 (II) nonprofit organization authorized by a school board or a governing body of a
1117 private school to organize and direct a competitive secondary school activity; or
1118 (III) nonprofit association authorized by a school board or a governing body of a
1119 private school to organize and direct a competitive secondary school activity; and
1120 (B) that is required to collect sales and use taxes under this chapter.
1121 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1122 commission may make rules defining the term "passed through."
1123 (88) For purposes of this section and Section 59-12-104 , "school":
1124 (a) means:
1125 (i) an elementary school or a secondary school that:
1126 (A) is a:
1127 (I) public school; or
1128 (II) private school; and
1129 (B) provides instruction for one or more grades kindergarten through 12; or
1130 (ii) a public school district; and
1131 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1132 (89) "Seller" means a person that makes a sale, lease, or rental of:
1133 (a) tangible personal property; or
1134 (b) a service.
1135 (90) (a) "Semiconductor fabricating, processing, research, or development materials"
1136 means tangible personal property:
1137 (i) used primarily in the process of:
1138 (A) (I) manufacturing a semiconductor;
1139 (II) fabricating a semiconductor; or
1140 (III) research or development of a:
1141 (Aa) semiconductor; or

1142 (Bb) semiconductor manufacturing process; or
1143 (B) maintaining an environment suitable for a semiconductor; or
1144 (ii) consumed primarily in the process of:
1145 (A) (I) manufacturing a semiconductor;
1146 (II) fabricating a semiconductor; or
1147 (III) research or development of a:
1148 (Aa) semiconductor; or
1149 (Bb) semiconductor manufacturing process; or
1150 (B) maintaining an environment suitable for a semiconductor.
1151 (b) "Semiconductor fabricating, processing, research, or development materials"
1152 includes:
1153 (i) parts used in the repairs or renovations of tangible personal property described in
1154 Subsection (90)(a); or
1155 (ii) a chemical, catalyst, or other material used to:
1156 (A) produce or induce in a semiconductor a:
1157 (I) chemical change; or
1158 (II) physical change;
1159 (B) remove impurities from a semiconductor; or
1160 (C) improve the marketable condition of a semiconductor.
1161 (91) "Senior citizen center" means a facility having the primary purpose of providing
1162 services to the aged as defined in Section 62A-3-101 .
1163 (92) "Simplified electronic return" means the electronic return:
1164 (a) described in Section 318(C) of the agreement; and
1165 (b) approved by the governing board of the agreement.
1166 (93) "Solar energy" means the sun used as the sole source of energy for producing
1167 electricity.
1168 (94) (a) "Sports or recreational equipment" means an item:
1169 (i) designed for human use; and
1170 (ii) that is:
1171 (A) worn in conjunction with:
1172 (I) an athletic activity; or

1173 (II) a recreational activity; and
1174 (B) not suitable for general use.
1175 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1176 commission shall make rules:
1177 (i) listing the items that constitute "sports or recreational equipment"; and
1178 (ii) that are consistent with the list of items that constitute "sports or recreational
1179 equipment" under the agreement.
1180 (95) "State" means the state of Utah, its departments, and agencies.
1181 (96) "Storage" means any keeping or retention of tangible personal property or any
1182 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
1183 sale in the regular course of business.
1184 (97) (a) "Tangible personal property" means personal property that:
1185 (i) may be:
1186 (A) seen;
1187 (B) weighed;
1188 (C) measured;
1189 (D) felt; or
1190 (E) touched; or
1191 (ii) is in any manner perceptible to the senses.
1192 (b) "Tangible personal property" includes:
1193 (i) electricity;
1194 (ii) water;
1195 (iii) gas;
1196 (iv) steam; or
1197 (v) prewritten computer software.
1198 (98) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1199 and require further processing other than mechanical blending before becoming finished
1200 petroleum products.
1201 (99) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1202 software" means an item listed in Subsection (99)(b) if that item is purchased or leased
1203 primarily to enable or facilitate one or more of the following to function:

1204 (i) telecommunications switching or routing equipment, machinery, or software; or
1205 (ii) telecommunications transmission equipment, machinery, or software.
1206 (b) The following apply to Subsection (99)(a):
1207 (i) a pole;
1208 (ii) software;
1209 (iii) a supplementary power supply;
1210 (iv) temperature or environmental equipment or machinery;
1211 (v) test equipment;
1212 (vi) a tower; or
1213 (vii) equipment, machinery, or software that functions similarly to an item listed in
1214 Subsections (99)(b)(i) through (vi) as determined by the commission by rule made in
1215 accordance with Subsection (99)(c).
1216 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1217 commission may by rule define what constitutes equipment, machinery, or software that
1218 functions similarly to an item listed in Subsections (99)(b)(i) through (vi).
1219 (100) "Telecommunications equipment, machinery, or software required for 911
1220 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1221 Sec. 20.18.
1222 (101) "Telecommunications maintenance or repair equipment, machinery, or software"
1223 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1224 one or more of the following, regardless of whether the equipment, machinery, or software is
1225 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1226 following:
1227 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1228 (b) telecommunications switching or routing equipment, machinery, or software; or
1229 (c) telecommunications transmission equipment, machinery, or software.
1230 (102) (a) "Telecommunications switching or routing equipment, machinery, or
1231 software" means an item listed in Subsection (102)(b) if that item is purchased or leased
1232 primarily for switching or routing:
1233 (i) voice communications;
1234 (ii) data communications; or

1235 (iii) telephone service.
1236 (b) The following apply to Subsection (102)(a):
1237 (i) a bridge;
1238 (ii) a computer;
1239 (iii) a cross connect;
1240 (iv) a modem;
1241 (v) a multiplexer;
1242 (vi) plug in circuitry;
1243 (vii) a router;
1244 (viii) software;
1245 (ix) a switch; or
1246 (x) equipment, machinery, or software that functions similarly to an item listed in
1247 Subsections (102)(b)(i) through (ix) as determined by the commission by rule made in
1248 accordance with Subsection (102)(c).
1249 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1250 commission may by rule define what constitutes equipment, machinery, or software that
1251 functions similarly to an item listed in Subsections (102)(b)(i) through (ix).
1252 (103) (a) "Telecommunications transmission equipment, machinery, or software"
1253 means an item listed in Subsection (103)(b) if that item is purchased or leased primarily for
1254 sending, receiving, or transporting:
1255 (i) voice communications;
1256 (ii) data communications; or
1257 (iii) telephone service.
1258 (b) The following apply to Subsection (103)(a):
1259 (i) an amplifier;
1260 (ii) a cable;
1261 (iii) a closure;
1262 (iv) a conduit;
1263 (v) a controller;
1264 (vi) a duplexer;
1265 (vii) a filter;

1266 (viii) an input device;
1267 (ix) an input/output device;
1268 (x) an insulator;
1269 (xi) microwave machinery or equipment;
1270 (xii) an oscillator;
1271 (xiii) an output device;
1272 (xiv) a pedestal;
1273 (xv) a power converter;
1274 (xvi) a power supply;
1275 (xvii) a radio channel;
1276 (xviii) a radio receiver;
1277 (xix) a radio transmitter;
1278 (xx) a repeater;
1279 (xxi) software;
1280 (xxii) a terminal;
1281 (xxiii) a timing unit;
1282 (xxiv) a transformer;
1283 (xxv) a wire; or
1284 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1285 Subsections (103)(b)(i) through (xxv) as determined by the commission by rule made in
1286 accordance with Subsection (103)(c).
1287 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1288 commission may by rule define what constitutes equipment, machinery, or software that
1289 functions similarly to an item listed in Subsections (103)(b)(i) through (xxv).
1290 (104) (a) "Telephone service" means a two-way transmission:
1291 (i) by:
1292 (A) wire;
1293 (B) radio;
1294 (C) lightwave; or
1295 (D) other electromagnetic means; and
1296 (ii) of one or more of the following:

1297 (A) a sign;
1298 (B) a signal;
1299 (C) writing;
1300 (D) an image;
1301 (E) sound;
1302 (F) a message;
1303 (G) data; or
1304 (H) other information of any nature.
1305 (b) "Telephone service" includes:
1306 (i) mobile telecommunications service;
1307 (ii) private communications service; or
1308 (iii) automated digital telephone answering service.
1309 (c) "Telephone service" does not include a service or a transaction that a state or a
1310 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1311 Tax Freedom Act, Pub. L. No. 105-277.
1312 (105) Notwithstanding where a call is billed or paid, "telephone service address"
1313 means:
1314 (a) if the location described in this Subsection (105)(a) is known, the location of the
1315 telephone service equipment:
1316 (i) to which a call is charged; and
1317 (ii) from which the call originates or terminates;
1318 (b) if the location described in Subsection (105)(a) is not known but the location
1319 described in this Subsection (105)(b) is known, the location of the origination point of the
1320 signal of the telephone service first identified by:
1321 (i) the telecommunications system of the seller; or
1322 (ii) if the system used to transport the signal is not that of the seller, information
1323 received by the seller from its service provider; or
1324 (c) if the locations described in Subsection (105)(a) or (b) are not known, the location
1325 of a purchaser's primary place of use.
1326 (106) (a) "Telephone service provider" means a person that:
1327 (i) owns, controls, operates, or manages a telephone service; and

1328 (ii) engages in an activity described in Subsection (106)(a)(i) for the shared use with or
1329 resale to any person of the telephone service.
1330 (b) A person described in Subsection (106)(a) is a telephone service provider whether
1331 or not the Public Service Commission of Utah regulates:
1332 (i) that person; or
1333 (ii) the telephone service that the person owns, controls, operates, or manages.
1334 (107) "Tobacco" means:
1335 (a) a cigarette;
1336 (b) a cigar;
1337 (c) chewing tobacco;
1338 (d) pipe tobacco; or
1339 (e) any other item that contains tobacco.
1340 (108) "Unassisted amusement device" means an amusement device, skill device, or
1341 ride device that is started and stopped by the purchaser or renter of the right to use or operate
1342 the amusement device, skill device, or ride device.
1343 (109) (a) "Use" means the exercise of any right or power over tangible personal
1344 property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
1345 property, item, or service.
1346 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
1347 the regular course of business and held for resale.
1348 (110) (a) Subject to Subsection (110)(b), "vehicle" means the following that are
1349 required to be titled, registered, or titled and registered:
1350 (i) an aircraft as defined in Section 72-10-102 ;
1351 (ii) a vehicle as defined in Section 41-1a-102 ;
1352 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1353 (iv) a vessel as defined in Section 41-1a-102 .
1354 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1355 (i) a vehicle described in Subsection (110)(a); or
1356 (ii) (A) a locomotive;
1357 (B) a freight car;
1358 (C) railroad work equipment; or

1359 (D) other railroad rolling stock.
1360 (111) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1361 exchanging a vehicle as defined in Subsection (110).
1362 (112) (a) Except as provided in Subsection (112)(b), "waste energy facility" means a
1363 facility that generates electricity:
1364 (i) using as the primary source of energy waste materials that would be placed in a
1365 landfill or refuse pit if it were not used to generate electricity, including:
1366 (A) tires;
1367 (B) waste coal; or
1368 (C) oil shale; and
1369 (ii) in amounts greater than actually required for the operation of the facility.
1370 (b) "Waste energy facility" does not include a facility that incinerates:
1371 (i) municipal solid waste;
1372 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1373 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1374 (113) "Watercraft" means a vessel as defined in Section 73-18-2 .
1375 (114) "Wind energy" means wind used as the sole source of energy to produce
1376 electricity.
1377 (115) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1378 location by the United States Postal Service.
1379 Section 5. Section 59-12-103 is amended to read:
1380 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1381 tax revenues.
1382 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
1383 charged for the following transactions:
1384 (a) retail sales of tangible personal property made within the state;
1385 (b) amounts paid:
1386 (i) to a:
1387 (A) telephone service provider regardless of whether the telephone service provider is
1388 municipally or privately owned; or
1389 (B) telegraph corporation:

1390 (I) as defined in Section 54-2-1 ; and
1391 (II) regardless of whether the telegraph corporation is municipally or privately owned;
1392 and
1393 (ii) for:
1394 (A) telephone service, other than mobile telecommunications service, that originates
1395 and terminates within the boundaries of this state;
1396 (B) mobile telecommunications service that originates and terminates within the
1397 boundaries of one state only to the extent permitted by the Mobile Telecommunications
1398 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1399 (C) telegraph service;
1400 (c) sales of the following for commercial use:
1401 (i) gas;
1402 (ii) electricity;
1403 (iii) heat;
1404 (iv) coal;
1405 (v) fuel oil; or
1406 (vi) other fuels;
1407 (d) sales of the following for residential use:
1408 (i) gas;
1409 (ii) electricity;
1410 (iii) heat;
1411 (iv) coal;
1412 (v) fuel oil; or
1413 (vi) other fuels;
1414 (e) sales of prepared food;
1415 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
1416 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1417 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1418 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1419 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1420 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,

1421 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1422 horseback rides, sports activities, or any other amusement, entertainment, recreation,
1423 exhibition, cultural, or athletic activity;
1424 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1425 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1426 (i) the tangible personal property; and
1427 (ii) parts used in the repairs or renovations of the tangible personal property described
1428 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
1429 of that tangible personal property;
1430 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
1431 assisted cleaning or washing of tangible personal property;
1432 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1433 accommodations and services that are regularly rented for less than 30 consecutive days;
1434 (j) amounts paid or charged for laundry or dry cleaning services;
1435 (k) amounts paid or charged for leases or rentals of tangible personal property if within
1436 this state the tangible personal property is:
1437 (i) stored;
1438 (ii) used; or
1439 (iii) otherwise consumed;
1440 (l) amounts paid or charged for tangible personal property if within this state the
1441 tangible personal property is:
1442 (i) stored;
1443 (ii) used; or
1444 (iii) consumed; and
1445 (m) amounts paid or charged for prepaid telephone calling cards.
1446 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
1447 is imposed on a transaction described in Subsection (1) equal to the sum of:
1448 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1449 (A) 4.65%; and
1450 (B) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1451 and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in

1452 a city, town, or the unincorporated area of a county in which the state imposes the tax under
1453 Part 20, Supplemental State Sales and Use Tax Act; and
1454 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1455 transaction under this chapter other than this part.
1456 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
1457 on a transaction described in Subsection (1)(d) equal to the sum of:
1458 (i) a state tax imposed on the transaction at a tax rate of 2%; and
1459 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1460 transaction under this chapter other than this part.
1461 (c) Except as provided in Subsection (2)(d) or (e), beginning on January 1, 2007, a
1462 state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
1463 equal to the sum of:
1464 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
1465 a tax rate of 1.75%; and
1466 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1467 amounts paid or charged for food and food ingredients under this chapter other than this part.
1468 (d) Except as provided in Subsection (2)(e), if a seller collects a tax in accordance with
1469 Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state tax and a local
1470 tax is imposed on the transaction equal to the sum of:
1471 (i) a state tax imposed on the transaction at a tax rate of:
1472 (A) the sum of:
1473 [(A)] (I) 4.65% for a transaction other than a transaction described in Subsection
1474 (2)(d)(i)(B) or (2)(d)(i)(C); and
1475 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1476 and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
1477 a city, town, or the unincorporated area of a county in which the state imposes the tax under
1478 Part 20, Supplemental State Sales and Use Tax Act;
1479 (B) 2% for a transaction described in Subsection (1)(d); or
1480 (C) beginning on January 1, 2007, 1.75% on the amounts paid or charged for food and
1481 food ingredients; and
1482 (ii) a local tax imposed on the transaction at a tax rate equal to the sum of the following

1483 tax rates:
1484 (A) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
1485 and towns in the state impose the tax authorized by Section 59-12-204 ; and
1486 (B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
1487 state impose the tax authorized by Section 59-12-1102 .
1488 (e) (i) A state tax and a local tax is imposed on an entire bundled transaction as
1489 provided in this Subsection (2)(e) if the bundled transaction is attributable to food and food
1490 ingredients and tangible personal property other than food and food ingredients.
1491 (ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
1492 seller other than a seller that collects a tax in accordance with Subsection 59-12-107 (1)(b),
1493 beginning on January 1, 2007, a state tax and a local tax is imposed on the entire bundled
1494 transaction equal to the sum of:
1495 (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
1496 (I) the tax rate described in Subsection (2)(a)(i)(A); and
1497 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1498 and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
1499 a city, town, or the unincorporated area of a county in which the state imposes the tax under
1500 Part 20, Supplemental State Sales and Use Tax Act; and
1501 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1502 described in Subsection (2)(a)(ii).
1503 (iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
1504 a seller in accordance with Subsection 59-12-107 (1)(b), beginning on January 1, 2007, a state
1505 tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
1506 (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
1507 (I) the tax rate described in Subsection (2)(d)(i)(A); and
1508 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1509 and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
1510 a city, town, or the unincorporated area of a county in which the state imposes the tax under
1511 Part 20, Supplemental State Sales and Use Tax Act; and
1512 (B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
1513 of the following tax rates:

1514 (I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
1515 and towns in the state impose the tax authorized by Section 59-12-204 ; and
1516 (II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
1517 state impose the tax authorized by Section 59-12-1102 .
1518 (f) Subject to Subsections (2)(g) and (h), a tax rate repeal or tax rate change for a tax
1519 rate imposed under the following shall take effect on the first day of a calendar quarter:
1520 (i) Subsection (2)(a)(i)(A);
1521 (ii) Subsection (2)(b)(i);
1522 (iii) Subsection (2)(c)(i);
1523 (iv) Subsection (2)(d)(i)(A)(I);
1524 (v) Subsection (2)(e)(ii)(A)(I); or
1525 (vi) Subsection (2)(e)(iii)(A)(I).
1526 (g) (i) For a transaction described in Subsection (2)(g)(iii), a tax rate increase shall take
1527 effect on the first day of the first billing period that begins after the effective date of the tax rate
1528 increase if the billing period for the transaction begins before the effective date of a tax rate
1529 increase imposed under:
1530 (A) Subsection (2)(a)(i)(A);
1531 (B) Subsection (2)(b)(i);
1532 (C) Subsection (2)(c)(i);
1533 (D) Subsection (2)(d)(i)(A)(I);
1534 (E) Subsection (2)(e)(ii)(A)(I); or
1535 (F) Subsection (2)(e)(iii)(A)(I).
1536 (ii) For a transaction described in Subsection (2)(g)(iii), the repeal of a tax or a tax rate
1537 decrease shall take effect on the first day of the last billing period that began before the
1538 effective date of the repeal of the tax or the tax rate decrease if the billing period for the
1539 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
1540 imposed under:
1541 (A) Subsection (2)(a)(i)(A);
1542 (B) Subsection (2)(b)(i);
1543 (C) Subsection (2)(c)(i);
1544 (D) Subsection (2)(d)(i)(A)(I);

1545 (E) Subsection (2)(e)(ii)(A)(I); or
1546 (F) Subsection (2)(e)(iii)(A)(I).
1547 (iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:
1548 (A) Subsection (1)(b);
1549 (B) Subsection (1)(c);
1550 (C) Subsection (1)(d);
1551 (D) Subsection (1)(e);
1552 (E) Subsection (1)(f);
1553 (F) Subsection (1)(g);
1554 (G) Subsection (1)(h);
1555 (H) Subsection (1)(i);
1556 (I) Subsection (1)(j); or
1557 (J) Subsection (1)(k).
1558 (h) (i) For a tax rate described in Subsection (2)(h)(ii), if a tax due on a catalogue sale
1559 is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
1560 or change in a tax rate takes effect:
1561 (A) on the first day of a calendar quarter; and
1562 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1563 (ii) Subsection (2)(h)(i) applies to the tax rates described in the following:
1564 (A) Subsection (2)(a)(i)(A);
1565 (B) Subsection (2)(b)(i);
1566 (C) Subsection (2)(c)(i);
1567 (D) Subsection (2)(d)(i)(A)(I);
1568 (E) Subsection (2)(e)(ii)(A)(I); or
1569 (F) Subsection (2)(e)(iii)(A)(I).
1570 (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1571 the commission may by rule define the term "catalogue sale."
1572 (3) (a) Except as provided in Subsections (4) through (10), the following state taxes
1573 shall be deposited into the General Fund:
1574 (i) the tax imposed by Subsection (2)(a)(i)(A);
1575 (ii) the tax imposed by Subsection (2)(b)(i);

1576 (iii) the tax imposed by Subsection (2)(c)(i);
1577 (iv) the tax imposed by Subsection (2) (d)(i)(A)(I);
1578 (v) the tax imposed by Subsection (2)(e)(ii)(A)(I); and
1579 (vi) the tax imposed by Subsection (2)(e)(iii)(A)(I).
1580 (b) The following local taxes shall be distributed to a county, city, or town as provided
1581 in this chapter:
1582 (i) the tax imposed by Subsection (2)(a)(ii);
1583 (ii) the tax imposed by Subsection (2)(b)(ii);
1584 (iii) the tax imposed by Subsection (2)(c)(ii); and
1585 (iv) the tax imposed by Subsection (2)(e)(ii)(B).
1586 (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
1587 state shall receive the county's, city's, or town's proportionate share of the revenues generated
1588 by the following local taxes as provided in Subsection (3)(c)(ii):
1589 (A) the local tax described in Subsection (2)(d)(ii); and
1590 (B) the local tax described in Subsection (2)(e)(iii)(B).
1591 (ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
1592 shall determine a county's, city's, or town's proportionate share of the revenues by:
1593 (A) calculating an amount equal to the population of the unincorporated area of the
1594 county, city, or town divided by the total population of the state; and
1595 (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
1596 amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
1597 cities, and towns.
1598 (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
1599 purposes of this section shall be derived from the most recent official census or census estimate
1600 of the United States Census Bureau.
1601 (B) If a needed population estimate is not available from the United States Census
1602 Bureau, population figures shall be derived from the estimate from the Utah Population
1603 Estimates Committee created by executive order of the governor.
1604 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1605 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
1606 through (g):

1607 (i) for taxes listed under Subsection (3)(a), the amount of ta