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[Bills Directory]
H.B. 2001 Enrolled
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SALES AND USE TAX EXEMPTION FOR
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AIRCRAFT PARTS AND EQUIPMENT
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2008 SECOND SPECIAL SESSION
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STATE OF UTAH
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Chief Sponsor: Brad L. Dee
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Senate Sponsor:
Mark B. Madsen
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LONG TITLE
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General Description:
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This bill amends the Sales and Use Tax Act relating to an exemption for aircraft parts
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and equipment.
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Highlighted Provisions:
13
This bill:
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. modifies a sales and use tax exemption for aircraft parts and equipment;
15
. provides that the exemption may be claimed by filing for a refund under certain
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circumstances; 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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This bill provides an immediate effective date.
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This bill has retrospective operation to July 1, 2008.
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Utah Code Sections Affected:
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AMENDS:
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59-12-104 (Superseded 01/01/09), as last amended by Laws of Utah 2008, Chapters 7,
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99, 174, 283, 320, and 382
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59-12-104 (Effective 01/01/09), as last amended by Laws of Utah 2008, Chapters 7,
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99, 174, 283, 320, 382, 384, and 389
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-12-104 (Superseded 01/01/09)
is amended to read:
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59-12-104 (Superseded 01/01/09). Exemptions.
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The following sales and uses are exempt from the taxes imposed by this chapter:
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(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
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under Chapter 13, Motor and Special Fuel Tax Act;
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(2) sales to the state, its institutions, and its political subdivisions; however, this
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exemption does not apply to sales of:
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(a) construction materials except:
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(i) construction materials purchased by or on behalf of institutions of the public
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education system as defined in Utah Constitution Article X, Section 2, provided the
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construction materials are clearly identified and segregated and installed or converted to real
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property which is owned by institutions of the public education system; and
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(ii) construction materials purchased by the state, its institutions, or its political
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subdivisions which are installed or converted to real property by employees of the state, its
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institutions, or its political subdivisions; or
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(b) tangible personal property in connection with the construction, operation,
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maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
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providing additional project capacity, as defined in Section 11-13-103;
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(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
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(i) the proceeds of each sale do not exceed $1; and
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(ii) the seller or operator of the vending machine reports an amount equal to 150% of
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the cost of the item described in Subsection (3)(b) as goods consumed; and
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(b) Subsection (3)(a) applies to:
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(i) food and food ingredients; or
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(ii) prepared food;
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(4) sales of the following to a commercial airline carrier for in-flight consumption:
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(a) food and food ingredients;
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(b) prepared food; or
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(c) services related to Subsection (4)(a) or (b);
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(5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
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and equipment:
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[(a)] (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the
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2002 North American Industry Classification System of the federal Executive Office of the
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President, Office of Management and Budget; and
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[(b)] (II) for:
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[(i)] (Aa) installation in an aircraft, including services relating to the installation of
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parts or equipment in the aircraft;
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[(ii)] (Bb) renovation of an aircraft; or
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[(iii)] (Cc) repair of an aircraft; or
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(B) for installation in an aircraft operated by a common carrier in interstate or foreign
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commerce; or
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(ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
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aircraft operated by a common carrier in interstate or foreign commerce; and
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(b) notwithstanding the time period of Subsection
59-12-110
(2) for filing for a refund,
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a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
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refund:
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(i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
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(ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
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(iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
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the sale prior to filing for the refund;
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(iv) for sales and use taxes paid under this chapter on the sale;
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(v) in accordance with Section
59-12-110
; and
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(vi) subject to any extension allowed for filing for a refund under Section
59-12-110
,
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if the person files for the refund on or before September 30, 2011;
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(6) sales of commercials, motion picture films, prerecorded audio program tapes or
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records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
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exhibitor, distributor, or commercial television or radio broadcaster;
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(7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
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property if the cleaning or washing of the tangible personal property is not assisted cleaning or
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washing of tangible personal property;
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(b) if a seller that sells at the same business location assisted cleaning or washing of
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tangible personal property and cleaning or washing of tangible personal property that is not
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assisted cleaning or washing of tangible personal property, the exemption described in
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Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
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or washing of the tangible personal property; and
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(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, the commission may make rules:
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(i) governing the circumstances under which sales are at the same business location;
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and
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(ii) establishing the procedures and requirements for a seller to separately account for
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sales of assisted cleaning or washing of tangible personal property;
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(8) sales made to or by religious or charitable institutions in the conduct of their
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regular religious or charitable functions and activities, if the requirements of Section
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59-12-104.1 are fulfilled;
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(9) sales of a vehicle of a type required to be registered under the motor vehicle laws
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of this state if the vehicle is:
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(a) not registered in this state; and
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(b) (i) not used in this state; or
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(ii) used in this state:
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(A) if the vehicle is not used to conduct business, for a time period that does not
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exceed the longer of:
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(I) 30 days in any calendar year; or
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(II) the time period necessary to transport the vehicle to the borders of this state; or
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(B) if the vehicle is used to conduct business, for the time period necessary to
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transport the vehicle to the borders of this state;
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(10) (a) amounts paid for an item described in Subsection (10)(b) if:
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(i) the item is intended for human use; and
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(ii) (A) a prescription was issued for the item; or
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(B) the item was purchased by a hospital or other medical facility; and
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(b) (i) Subsection (10)(a) applies to:
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(A) a drug;
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(B) a syringe; or
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(C) a stoma supply; and
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(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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the commission may by rule define the terms:
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(A) "syringe"; or
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(B) "stoma supply";
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(11) sales or use of property, materials, or services used in the construction of or
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incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127;
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(12) (a) sales of an item described in Subsection (12)(c) served by:
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(i) the following if the item described in Subsection (12)(c) is not available to the
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general public:
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(A) a church; or
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(B) a charitable institution;
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(ii) an institution of higher education if:
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(A) the item described in Subsection (12)(c) is not available to the general public; or
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(B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
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offered by the institution of higher education; or
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(b) sales of an item described in Subsection (12)(c) provided for a patient by:
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(i) a medical facility; or
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(ii) a nursing facility; and
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(c) Subsections (12)(a) and (b) apply to:
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(i) food and food ingredients;
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(ii) prepared food; or
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(iii) alcoholic beverages;
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(13) (a) except as provided in Subsection (13)(b), the sale of tangible personal
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property by a person:
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(i) regardless of the number of transactions involving the sale of that tangible personal
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property by that person; and
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(ii) not regularly engaged in the business of selling that type of tangible personal
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property;
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(b) this Subsection (13) does not apply if:
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(i) the sale is one of a series of sales of a character to indicate that the person is
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regularly engaged in the business of selling that type of tangible personal property;
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(ii) the person holds that person out as regularly engaged in the business of selling that
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type of tangible personal property;
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(iii) the person sells an item of tangible personal property that the person purchased as
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a sale that is exempt under Subsection (25); or
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(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
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this state in which case the tax is based upon:
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(A) the bill of sale or other written evidence of value of the vehicle or vessel being
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sold; or
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(B) in the absence of a bill of sale or other written evidence of value, the fair market
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value of the vehicle or vessel being sold at the time of the sale as determined by the
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commission; and
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(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission shall make rules establishing the circumstances under which:
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(i) a person is regularly engaged in the business of selling a type of tangible personal
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property;
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(ii) a sale of tangible personal property is one of a series of sales of a character to
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indicate that a person is regularly engaged in the business of selling that type of tangible
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personal property; or
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(iii) a person holds that person out as regularly engaged in the business of selling a
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type of tangible personal property;
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(14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
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July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
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facility, for the following:
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(i) machinery and equipment that:
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(A) is used:
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(I) for a manufacturing facility other than a manufacturing facility that is a scrap
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recycler described in Subsection 59-12-102(48)(b):
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(Aa) in the manufacturing process; and
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(Bb) to manufacture an item sold as tangible personal property; or
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(II) for a manufacturing facility that is a scrap recycler described in Subsection
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59-12-102(48)(b), to process an item sold as tangible personal property; and
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(B) has an economic life of three or more years; and
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(ii) normal operating repair or replacement parts that:
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(A) have an economic life of three or more years; and
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(B) are used:
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(I) for a manufacturing facility in the state other than a manufacturing facility that is a
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scrap recycler described in Subsection 59-12-102(48)(b), in the manufacturing process; or
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(II) for a manufacturing facility in the state that is a scrap recycler described in
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Subsection 59-12-102(48)(b), to process an item sold as tangible personal property;
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(b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
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manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
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for the following:
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(A) machinery and equipment that:
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(I) is used:
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(Aa) in the manufacturing process; and
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(Bb) to manufacture an item sold as tangible personal property; and
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(II) has an economic life of three or more years; and
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(B) normal operating repair or replacement parts that:
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(I) are used in the manufacturing process in a manufacturing facility in the state; and
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(II) have an economic life of three or more years; and
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(ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
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2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
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claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
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(A) for sales and use taxes paid under this chapter on the purchase or lease payment;
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and
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(B) in accordance with Section 59-12-110;
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(c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
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by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
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NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
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Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
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of the 2002 North American Industry Classification System of the federal Executive Office of
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the President, Office of Management and Budget:
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(i) machinery and equipment that:
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(A) are used in:
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(I) the production process, other than the production of real property; or
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(II) research and development; and
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(B) have an economic life of three or more years; and
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(ii) normal operating repair or replacement parts that:
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(A) have an economic life of three or more years; and
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(B) are used in:
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(I) the production process, other than the production of real property, in an
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establishment described in this Subsection (14)(c) in the state; or
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(II) research and development in an establishment described in this Subsection (14)(c)
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in the state;
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(d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, the commission:
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(i) shall by rule define the term "establishment"; and
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(ii) may by rule define what constitutes:
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(A) processing an item sold as tangible personal property;
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(B) the production process, other than the production of real property; or
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(C) research and development; and
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(e) on or before October 1, 2011, and every five years after October 1, 2011, the
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commission shall:
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(i) review the exemptions described in this Subsection (14) and make
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recommendations to the Revenue and Taxation Interim Committee concerning whether the
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exemptions should be continued, modified, or repealed; and
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(ii) include in its report:
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(A) the cost of the exemptions;
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(B) the purpose and effectiveness of the exemptions; and
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(C) the benefits of the exemptions to the state;
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(15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
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(i) tooling;
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(ii) special tooling;
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(iii) support equipment;
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(iv) special test equipment; or
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(v) parts used in the repairs or renovations of tooling or equipment described in
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Subsections (15)(a)(i) through (iv); and
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(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
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(i) the tooling, equipment, or parts are used or consumed exclusively in the
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performance of any aerospace or electronics industry contract with the United States
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government or any subcontract under that contract; and
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(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
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title to the tooling, equipment, or parts is vested in the United States government as evidenced
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by:
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(A) a government identification tag placed on the tooling, equipment, or parts; or
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(B) listing on a government-approved property record if placing a government
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identification tag on the tooling, equipment, or parts is impractical;
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(16) sales of newspapers or newspaper subscriptions;
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(17) (a) except as provided in Subsection (17)(b), tangible personal property traded in
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as full or part payment of the purchase price, except that for purposes of calculating sales or
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use tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only,
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and the tax is based upon:
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(i) the bill of sale or other written evidence of value of the vehicle being sold and the
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vehicle being traded in; or
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(ii) in the absence of a bill of sale or other written evidence of value, the then existing
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fair market value of the vehicle being sold and the vehicle being traded in, as determined by
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the commission; and
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(b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
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following items of tangible personal property traded in as full or part payment of the purchase
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price:
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(i) money;
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(ii) electricity;
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(iii) water;
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(iv) gas; or
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(v) steam;
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(18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal
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property used or consumed primarily and directly in farming operations, regardless of whether
282
the tangible personal property:
283
(A) becomes part of real estate; or
284
(B) is installed by a:
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(I) farmer;
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(II) contractor; or
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(III) subcontractor; or
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(ii) sales of parts used in the repairs or renovations of tangible personal property if the
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tangible personal property is exempt under Subsection (18)(a)(i); and
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(b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
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tangible personal property are subject to the taxes imposed by this chapter:
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(i) (A) subject to Subsection (18)(b)(i)(B), the following tangible personal property if
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the tangible personal property is used in a manner that is incidental to farming:
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(I) machinery;
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(II) equipment;
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(III) materials; or
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(IV) supplies; and
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(B) tangible personal property that is considered to be used in a manner that is
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incidental to farming includes:
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(I) hand tools; or
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(II) maintenance and janitorial equipment and supplies;
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(ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property if the tangible
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personal property is used in an activity other than farming; and
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(B) tangible personal property that is considered to be used in an activity other than
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farming includes:
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(I) office equipment and supplies; or
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(II) equipment and supplies used in:
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(Aa) the sale or distribution of farm products;
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(Bb) research; or
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(Cc) transportation; or
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(iii) a vehicle required to be registered by the laws of this state during the period
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ending two years after the date of the vehicle's purchase;
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(19) sales of hay;
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(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
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garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
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garden, farm, or other agricultural produce is sold by:
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(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
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agricultural produce;
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(b) an employee of the producer described in Subsection (20)(a); or
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(c) a member of the immediate family of the producer described in Subsection (20)(a);
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(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
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under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
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(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
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nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
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wholesaler, or retailer for use in packaging tangible personal property to be sold by that
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manufacturer, processor, wholesaler, or retailer;
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(23) property stored in the state for resale;
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(24) (a) purchases of property if:
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(i) the property is:
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(A) purchased outside of this state;
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(B) brought into this state:
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(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
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(II) by a nonresident person who is not living or working in this state at the time of the
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purchase;
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(C) used for the personal use or enjoyment of the nonresident person described in
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Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
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(D) not used in conducting business in this state; and
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(ii) for:
339
(A) property other than the property described in Subsection (24)(a)(ii)(B), the first
340
use of the property for a purpose for which the property is designed occurs outside of this
341
state;
342
(B) a boat, the boat is registered outside of this state; or
343
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
344
outside of this state;
345
(b) the exemption provided for in Subsection (24)(a) does not apply to:
346
(i) a lease or rental of property; or
347
(ii) a sale of a vehicle exempt under Subsection (33); and
348
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
349
purposes of Subsection (24)(a), the commission may by rule define what constitutes the
350
following:
351
(i) conducting business in this state if that phrase has the same meaning in this
352
Subsection (24) as in Subsection (66);
353
(ii) the first use of property if that phrase has the same meaning in this Subsection (24)
354
as in Subsection (66); or
355
(iii) a purpose for which property is designed if that phrase has the same meaning in
356
this Subsection (24) as in Subsection (66);
357
(25) property purchased for resale in this state, in the regular course of business, either
358
in its original form or as an ingredient or component part of a manufactured or compounded
359
product;
360
(26) property upon which a sales or use tax was paid to some other state, or one of its
361
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
362
imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
363
the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
364
Act;
365
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
366
person for use in compounding a service taxable under the subsections;
367
(28) purchases made in accordance with the special supplemental nutrition program
368
for women, infants, and children established in 42 U.S.C. Sec. 1786;
369
(29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
370
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or
371
ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial
372
Classification Manual of the federal Executive Office of the President, Office of Management
373
and Budget;
374
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
375
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
376
(a) not registered in this state; and
377
(b) (i) not used in this state; or
378
(ii) used in this state:
379
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
380
time period that does not exceed the longer of:
381
(I) 30 days in any calendar year; or
382
(II) the time period necessary to transport the boat, boat trailer, or outboard motor to
383
the borders of this state; or
384
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
385
period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
386
state;
387
(31) sales of aircraft manufactured in Utah;
388
(32) amounts paid for the purchase of telephone service for purposes of providing
389
telephone service;
390
(33) sales, leases, or uses of the following:
391
(a) a vehicle by an authorized carrier; or
392
(b) tangible personal property that is installed on a vehicle:
393
(i) sold or leased to or used by an authorized carrier; and
394
(ii) before the vehicle is placed in service for the first time;
395
(34) (a) 45% of the sales price of any new manufactured home; and
396
(b) 100% of the sales price of any used manufactured home;
397
(35) sales relating to schools and fundraising sales;
398
(36) sales or rentals of durable medical equipment if:
399
(a) a person presents a prescription for the durable medical equipment; and
400
(b) the durable medical equipment is used for home use only;
401
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
402
Section 72-11-102; and
403
(b) the commission shall by rule determine the method for calculating sales exempt
404
under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
405
(38) sales to a ski resort of:
406
(a) snowmaking equipment;
407
(b) ski slope grooming equipment;
408
(c) passenger ropeways as defined in Section 72-11-102; or
409
(d) parts used in the repairs or renovations of equipment or passenger ropeways
410
described in Subsections (38)(a) through (c);
411
(39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial
412
use;
413
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
414
amusement, entertainment, or recreation an unassisted amusement device as defined in Section
415
59-12-102;
416
(b) if a seller that sells or rents at the same business location the right to use or operate
417
for amusement, entertainment, or recreation one or more unassisted amusement devices and
418
one or more assisted amusement devices, the exemption described in Subsection (40)(a)
419
applies if the seller separately accounts for the sales or rentals of the right to use or operate for
420
amusement, entertainment, or recreation for the assisted amusement devices; and
421
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
422
Utah Administrative Rulemaking Act, the commission may make rules:
423
(i) governing the circumstances under which sales are at the same business location;
424
and
425
(ii) establishing the procedures and requirements for a seller to separately account for
426
the sales or rentals of the right to use or operate for amusement, entertainment, or recreation
427
for assisted amusement devices;
428
(41) (a) sales of photocopies by:
429
(i) a governmental entity; or
430
(ii) an entity within the state system of public education, including:
431
(A) a school; or
432
(B) the State Board of Education; or
433
(b) sales of publications by a governmental entity;
434
(42) amounts paid for admission to an athletic event at an institution of higher
435
education that is subject to the provisions of Title IX of the Education Amendments of 1972,
436
20 U.S.C. Sec. 1681 et seq.;
437
(43) sales of telephone service charged to a prepaid telephone calling card;
438
(44) (a) sales of:
439
(i) hearing aids;
440
(ii) hearing aid accessories; or
441
(iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations
442
of hearing aids or hearing aid accessories; and
443
(b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii),
444
"parts" does not include batteries;
445
(45) (a) sales made to or by:
446
(i) an area agency on aging; or
447
(ii) a senior citizen center owned by a county, city, or town; or
448
(b) sales made by a senior citizen center that contracts with an area agency on aging;
449
(46) sales or leases of semiconductor fabricating, processing, research, or development
450
materials regardless of whether the semiconductor fabricating, processing, research, or
451
development materials:
452
(a) actually come into contact with a semiconductor; or
453
(b) ultimately become incorporated into real property;
454
(47) an amount paid by or charged to a purchaser for accommodations and services
455
described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
456
59-12-104.2;
457
(48) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
458
sports event registration certificate in accordance with Section 41-3-306 for the event period
459
specified on the temporary sports event registration certificate;
460
(49) sales or uses of electricity, if the sales or uses are:
461
(a) made under a tariff adopted by the Public Service Commission of Utah only for
462
purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
463
source, as designated in the tariff by the Public Service Commission of Utah; and
464
(b) for an amount of electricity that is:
465
(i) unrelated to the amount of electricity used by the person purchasing the electricity
466
under the tariff described in Subsection (49)(a); and
467
(ii) equivalent to the number of kilowatthours specified in the tariff described in
468
Subsection (49)(a) that may be purchased under the tariff described in Subsection (49)(a);
469
(50) sales or rentals of mobility enhancing equipment if a person presents a
470
prescription for the mobility enhancing equipment;
471
(51) sales of water in a:
472
(a) pipe;
473
(b) conduit;
474
(c) ditch; or
475
(d) reservoir;
476
(52) sales of currency or coinage that constitute legal tender of the United States or of
477
a foreign nation;
478
(53) (a) sales of an item described in Subsection (53)(b) if the item:
479
(i) does not constitute legal tender of any nation; and
480
(ii) has a gold, silver, or platinum content of 80% or more; and
481
(b) Subsection (53)(a) applies to a gold, silver, or platinum:
482
(i) ingot;
483
(ii) bar;
484
(iii) medallion; or
485
(iv) decorative coin;
486
(54) amounts paid on a sale-leaseback transaction;
487
(55) sales of a prosthetic device:
488
(a) for use on or in a human; and
489
(b) (i) for which a prescription is required; or
490
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
491
(56) (a) except as provided in Subsection (56)(b), purchases, leases, or rentals of
492
machinery or equipment by an establishment described in Subsection (56)(c) if the machinery
493
or equipment is primarily used in the production or postproduction of the following media for
494
commercial distribution:
495
(i) a motion picture;
496
(ii) a television program;
497
(iii) a movie made for television;
498
(iv) a music video;
499
(v) a commercial;
500
(vi) a documentary; or
501
(vii) a medium similar to Subsections (56)(a)(i) through (vi) as determined by the
502
commission by administrative rule made in accordance with Subsection (56)(d); or
503
(b) notwithstanding Subsection (56)(a), purchases, leases, or rentals of machinery or
504
equipment by an establishment described in Subsection (56)(c) that is used for the production
505
or postproduction of the following are subject to the taxes imposed by this chapter:
506
(i) a live musical performance;
507
(ii) a live news program; or
508
(iii) a live sporting event;
509
(c) the following establishments listed in the 1997 North American Industry
510
Classification System of the federal Executive Office of the President, Office of Management
511
and Budget, apply to Subsections (56)(a) and (b):
512
(i) NAICS Code 512110; or
513
(ii) NAICS Code 51219; and
514
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
515
the commission may by rule:
516
(i) prescribe what constitutes a medium similar to Subsections (56)(a)(i) through (vi);
517
or
518
(ii) define:
519
(A) "commercial distribution";
520
(B) "live musical performance";
521
(C) "live news program"; or
522
(D) "live sporting event";
523
(57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but
524
on or before June 30, 2009, of machinery or equipment that:
525
(i) is leased or purchased for or by a facility that:
526
(A) is a renewable energy production facility;
527
(B) is located in the state; and
528
(C) (I) becomes operational on or after July 1, 2004; or
529
(II) has its generation capacity increased by one or more megawatts on or after July 1,
530
2004 as a result of the use of the machinery or equipment;
531
(ii) has an economic life of five or more years; and
532
(iii) is used to make the facility or the increase in capacity of the facility described in
533
Subsection (57)(a)(i) operational up to the point of interconnection with an existing
534
transmission grid including:
535
(A) a wind turbine;
536
(B) generating equipment;
537
(C) a control and monitoring system;
538
(D) a power line;
539
(E) substation equipment;
540
(F) lighting;
541
(G) fencing;
542
(H) pipes; or
543
(I) other equipment used for locating a power line or pole; and
544
(b) this Subsection (57) does not apply to:
545
(i) machinery or equipment used in construction of:
546
(A) a new renewable energy production facility; or
547
(B) the increase in the capacity of a renewable energy production facility;
548
(ii) contracted services required for construction and routine maintenance activities;
549
and
550
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
551
of the facility described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or
552
acquired after:
553
(A) the renewable energy production facility described in Subsection (57)(a)(i) is
554
operational as described in Subsection (57)(a)(iii); or
555
(B) the increased capacity described in Subsection (57)(a)(i) is operational as
556
described in Subsection (57)(a)(iii);
557
(58) (a) leases of seven or more years or purchases made on or after July 1, 2004 but
558
on or before June 30, 2009, of machinery or equipment that:
559
(i) is leased or purchased for or by a facility that:
560
(A) is a waste energy production facility;
561
(B) is located in the state; and
562
(C) (I) becomes operational on or after July 1, 2004; or
563
(II) has its generation capacity increased by one or more megawatts on or after July 1,
564
2004 as a result of the use of the machinery or equipment;
565
(ii) has an economic life of five or more years; and
566
(iii) is used to make the facility or the increase in capacity of the facility described in
567
Subsection (58)(a)(i) operational up to the point of interconnection with an existing
568
transmission grid including:
569
(A) generating equipment;
570
(B) a control and monitoring system;
571
(C) a power line;
572
(D) substation equipment;
573
(E) lighting;
574
(F) fencing;
575
(G) pipes; or
576
(H) other equipment used for locating a power line or pole; and
577
(b) this Subsection (58) does not apply to:
578
(i) machinery or equipment used in construction of:
579
(A) a new waste energy facility; or
580
(B) the increase in the capacity of a waste energy facility;
581
(ii) contracted services required for construction and routine maintenance activities;
582
and
583
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
584
described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
585
(A) the waste energy facility described in Subsection (58)(a)(i) is operational as
586
described in Subsection (58)(a)(iii); or
587
(B) the increased capacity described in Subsection (58)(a)(i) is operational as
588
described in Subsection (58)(a)(iii);
589
(59) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
590
or before June 30, 2009, of machinery or equipment that:
591
(i) is leased or purchased for or by a facility that:
592
(A) is located in the state;
593
(B) produces fuel from biomass energy including:
594
(I) methanol; or
595
(II) ethanol; and
596
(C) (I) becomes operational on or after July 1, 2004; or
597
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004
598
as a result of the installation of the machinery or equipment;
599
(ii) has an economic life of five or more years; and
600
(iii) is installed on the facility described in Subsection (59)(a)(i);
601
(b) this Subsection (59) does not apply to:
602
(i) machinery or equipment used in construction of:
603
(A) a new facility described in Subsection (59)(a)(i); or
604
(B) the increase in capacity of the facility described in Subsection (59)(a)(i); or
605
(ii) contracted services required for construction and routine maintenance activities;
606
and
607
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
608
described in Subsection (59)(a)(i)(C)(II), machinery or equipment used or acquired after:
609
(A) the facility described in Subsection (59)(a)(i) is operational; or
610
(B) the increased capacity described in Subsection (59)(a)(i) is operational;
611
(60) amounts paid to a purchaser as a rebate from the manufacturer of a new vehicle
612
for purchasing the new vehicle;
613
(61) (a) subject to Subsection (61)(b) or (c), sales of tangible personal property to a
614
person within this state if that tangible personal property is subsequently shipped outside the
615
state and incorporated pursuant to contract into and becomes a part of real property located
616
outside of this state;
617
(b) the exemption under Subsection (61)(a) is not allowed to the extent that the other
618
state or political entity to which the tangible personal property is shipped imposes a sales, use,
619
gross receipts, or other similar transaction excise tax on the transaction against which the other
620
state or political entity allows a credit for sales and use taxes imposed by this chapter; and
621
(c) notwithstanding the time period of Subsection 59-12-110(2)(b) for filing for a
622
refund, a person may claim the exemption allowed by this Subsection (61) for a sale by filing
623
for a refund:
624
(i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
625
(ii) as if this Subsection (61) as in effect on July 1, 2008, were in effect on the day on
626
which the sale is made;
627
(iii) if the person did not claim the exemption allowed by this Subsection (61) for the
628
sale prior to filing for the refund;
629
(iv) for sales and use taxes paid under this chapter on the sale;
630
(v) in accordance with Section 59-12-110; and
631
(vi) subject to any extension allowed for filing for a refund under Section 59-12-110,
632
if the person files for the refund on or before June 30, 2011;
633
(62) purchases:
634
(a) of one or more of the following items in printed or electronic format:
635
(i) a list containing information that includes one or more:
636
(A) names; or
637
(B) addresses; or
638
(ii) a database containing information that includes one or more:
639
(A) names; or
640
(B) addresses; and
641
(b) used to send direct mail;
642
(63) redemptions or repurchases of property by a person if that property was:
643
(a) delivered to a pawnbroker as part of a pawn transaction; and
644
(b) redeemed or repurchased within the time period established in a written agreement
645
between the person and the pawnbroker for redeeming or repurchasing the property;
646
(64) (a) purchases or leases of an item described in Subsection (64)(b) if the item:
647
(i) is purchased or leased by, or on behalf of, a telephone service provider; and
648
(ii) has a useful economic life of one or more years; and
649
(b) the following apply to Subsection (64)(a):
650
(i) telecommunications enabling or facilitating equipment, machinery, or software;
651
(ii) telecommunications equipment, machinery, or software required for 911 service;
652
(iii) telecommunications maintenance or repair equipment, machinery, or software;
653
(iv) telecommunications switching or routing equipment, machinery, or software; or
654
(v) telecommunications transmission equipment, machinery, or software;
655
(65) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of
656
tangible personal property used in the research and development of coal-to-liquids, oil shale,
657
or tar sands technology; and
658
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
659
the commission may, for purposes of Subsection (65)(a), make rules defining what constitutes
660
tangible personal property used in the research and development of coal-to-liquids, oil shale,
661
and tar sands technology;
662
(66) (a) purchases of property if:
663
(i) the property is:
664
(A) purchased outside of this state;
665
(B) brought into this state at any time after the purchase described in Subsection
666
(66)(a)(i)(A); and
667
(C) used in conducting business in this state; and
668
(ii) for:
669
(A) property other than the property described in Subsection (66)(a)(ii)(B), the first
670
use of the property for a purpose for which the property is designed occurs outside of this
671
state; or
672
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
673
outside of this state;
674
(b) the exemption provided for in Subsection (66)(a) does not apply to:
675
(i) a lease or rental of property; or
676
(ii) a sale of a vehicle exempt under Subsection (33); and
677
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
678
purposes of Subsection (66)(a), the commission may by rule define what constitutes the
679
following:
680
(i) conducting business in this state if that phrase has the same meaning in this
681
Subsection (66) as in Subsection (24);
682
(ii) the first use of property if that phrase has the same meaning in this Subsection (66)
683
as in Subsection (24); or
684
(iii) a purpose for which property is designed if that phrase has the same meaning in
685
this Subsection (66) as in Subsection (24);
686
(67) sales of disposable home medical equipment or supplies if:
687
(a) a person presents a prescription for the disposable home medical equipment or
688
supplies;
689
(b) the disposable home medical equipment or supplies are used exclusively by the
690
person to whom the prescription described in Subsection (67)(a) is issued; and
691
(c) the disposable home medical equipment and supplies are listed as eligible for
692
payment under:
693
(i) Title XVIII, federal Social Security Act; or
694
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
695
(68) sales:
696
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
697
District Act; or
698
(b) of tangible personal property to a subcontractor of a public transit district, if the
699
tangible personal property is:
700
(i) clearly identified; and
701
(ii) installed or converted to real property owned by the public transit district;
702
(69) sales of construction materials:
703
(a) purchased on or after July 1, 2010;
704
(b) purchased by, on behalf of, or for the benefit of an international airport:
705
(i) located within a county of the first class; and
706
(ii) that has a United States customs office on its premises; and
707
(c) if the construction materials are:
708
(i) clearly identified;
709
(ii) segregated; and
710
(iii) installed or converted to real property:
711
(A) owned or operated by the international airport described in Subsection (69)(b);
712
and
713
(B) located at the international airport described in Subsection (69)(b); and
714
(70) sales of construction materials:
715
(a) purchased on or after July 1, 2008;
716
(b) purchased by, on behalf of, or for the benefit of a new airport:
717
(i) located within a county of the second class; and
718
(ii) that is owned or operated by a city in which an airline as defined in Section
719
59-2-102 is headquartered; and
720
(c) if the construction materials are:
721
(i) clearly identified;
722
(ii) segregated; and
723
(iii) installed or converted to real property:
724
(A) owned or operated by the new airport described in Subsection (70)(b);
725
(B) located at the new airport described in Subsection (70)(b); and
726
(C) as part of the construction of the new airport described in Subsection (70)(b).
727
Section 2.
Section
59-12-104 (Effective 01/01/09)
is amended to read:
728
59-12-104 (Effective 01/01/09). Exemptions.
729
The following sales and uses are exempt from the taxes imposed by this chapter:
730
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
731
under Chapter 13, Motor and Special Fuel Tax Act;
732
(2) sales to the state, its institutions, and its political subdivisions; however, this
733
exemption does not apply to sales of:
734
(a) construction materials except:
735
(i) construction materials purchased by or on behalf of institutions of the public
736
education system as defined in Utah Constitution Article X, Section 2, provided the
737
construction materials are clearly identified and segregated and installed or converted to real
738
property which is owned by institutions of the public education system; and
739
(ii) construction materials purchased by the state, its institutions, or its political
740
subdivisions which are installed or converted to real property by employees of the state, its
741
institutions, or its political subdivisions; or
742
(b) tangible personal property in connection with the construction, operation,
743
maintenance, repair, or replacement of a project, as defined in Section
11-13-103
, or facilities
744
providing additional project capacity, as defined in Section
11-13-103
;
745
(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
746
(i) the proceeds of each sale do not exceed $1; and
747
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
748
the cost of the item described in Subsection (3)(b) as goods consumed; and
749
(b) Subsection (3)(a) applies to:
750
(i) food and food ingredients; or
751
(ii) prepared food;
752
(4) sales of the following to a commercial airline carrier for in-flight consumption:
753
(a) food and food ingredients;
754
(b) prepared food; or
755
(c) services related to Subsection (4)(a) or (b);
756
(5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of
757
parts and equipment:
758
[(a)] (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the
759
2002 North American Industry Classification System of the federal Executive Office of the
760
President, Office of Management and Budget; and
761
[(b)] (II) for:
762
[(i)] (Aa) installation in an aircraft, including services relating to the installation of
763
parts or equipment in the aircraft;
764
[(ii)] (Bb) renovation of an aircraft; or
765
[(iii)] (Cc) repair of an aircraft; or
766
(B) for installation in an aircraft operated by a common carrier in interstate or foreign
767
commerce; or
768
(ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
769
aircraft operated by a common carrier in interstate or foreign commerce; and
770
(b) notwithstanding the time period of Subsection
59-12-110
(2) for filing for a refund,
771
a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
772
refund:
773
(i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
774
(ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
775
(iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
776
the sale prior to filing for the refund;
777
(iv) for sales and use taxes paid under this chapter on the sale;
778
(v) in accordance with Section
59-12-110
; and
779
(vi) subject to any extension allowed for filing for a refund under Section
59-12-110
,
780
if the person files for the refund on or before September 30, 2011;
781
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
782
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
783
exhibitor, distributor, or commercial television or radio broadcaster;
784
(7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
785
property if the cleaning or washing of the tangible personal property is not assisted cleaning or
786
washing of tangible personal property;
787
(b) if a seller that sells at the same business location assisted cleaning or washing of
788
tangible personal property and cleaning or washing of tangible personal property that is not
789
assisted cleaning or washing of tangible personal property, the exemption described in
790
Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
791
or washing of the tangible personal property; and
792
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
793
Utah Administrative Rulemaking Act, the commission may make rules:
794
(i) governing the circumstances under which sales are at the same business location;
795
and
796
(ii) establishing the procedures and requirements for a seller to separately account for
797
sales of assisted cleaning or washing of tangible personal property;
798
(8) sales made to or by religious or charitable institutions in the conduct of their
799
regular religious or charitable functions and activities, if the requirements of Section
800
59-12-104.1
are fulfilled;
801
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws
802
of this state if the vehicle is:
803
(a) not registered in this state; and
804
(b) (i) not used in this state; or
805
(ii) used in this state:
806
(A) if the vehicle is not used to conduct business, for a time period that does not
807
exceed the longer of:
808
(I) 30 days in any calendar year; or
809
(II) the time period necessary to transport the vehicle to the borders of this state; or
810
(B) if the vehicle is used to conduct business, for the time period necessary to
811
transport the vehicle to the borders of this state;
812
(10) (a) amounts paid for an item described in Subsection (10)(b) if:
813
(i) the item is intended for human use; and
814
(ii) (A) a prescription was issued for the item; or
815
(B) the item was purchased by a hospital or other medical facility; and
816
(b) (i) Subsection (10)(a) applies to:
817
(A) a drug;
818
(B) a syringe; or
819
(C) a stoma supply; and
820
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
821
the commission may by rule define the terms:
822
(A) "syringe"; or
823
(B) "stoma supply";
824
(11) sales or use of property, materials, or services used in the construction of or
825
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
826
(12) (a) sales of an item described in Subsection (12)(c) served by:
827
(i) the following if the item described in Subsection (12)(c) is not available to the
828
general public:
829
(A) a church; or
830
(B) a charitable institution;
831
(ii) an institution of higher education if:
832
(A) the item described in Subsection (12)(c) is not available to the general public; or
833
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
834
offered by the institution of higher education; or
835
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
836
(i) a medical facility; or
837
(ii) a nursing facility; and
838
(c) Subsections (12)(a) and (b) apply to:
839
(i) food and food ingredients;
840
(ii) prepared food; or
841
(iii) alcoholic beverages;
842
(13) (a) except as provided in Subsection (13)(b), the sale of tangible personal
843
property or a product transferred electronically by a person:
844
(i) regardless of the number of transactions involving the sale of that tangible personal
845
property or product transferred electronically by that person; and
846
(ii) not regularly engaged in the business of selling that type of tangible personal
847
property or product transferred electronically;
848
(b) this Subsection (13) does not apply if:
849
(i) the sale is one of a series of sales of a character to indicate that the person is
850
regularly engaged in the business of selling that type of tangible personal property or product
851
transferred electronically;
852
(ii) the person holds that person out as regularly engaged in the business of selling that
853
type of tangible personal property or product transferred electronically;
854
(iii) the person sells an item of tangible personal property or product transferred
855
electronically that the person purchased as a sale that is exempt under Subsection (25); or
856
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
857
this state in which case the tax is based upon:
858
(A) the bill of sale or other written evidence of value of the vehicle or vessel being
859
sold; or
860
(B) in the absence of a bill of sale or other written evidence of value, the fair market
861
value of the vehicle or vessel being sold at the time of the sale as determined by the
862
commission; and
863
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
864
commission shall make rules establishing the circumstances under which:
865
(i) a person is regularly engaged in the business of selling a type of tangible personal
866
property or product transferred electronically;
867
(ii) a sale of tangible personal property or a product transferred electronically is one of
868
a series of sales of a character to indicate that a person is regularly engaged in the business of
869
selling that type of tangible personal property or product transferred electronically; or
870
(iii) a person holds that person out as regularly engaged in the business of selling a
871
type of tangible personal property or product transferred electronically;
872
(14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
873
July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
874
facility, for the following:
875
(i) machinery and equipment that:
876
(A) is used:
877
(I) for a manufacturing facility other than a manufacturing facility that is a scrap
878
recycler described in Subsection
59-12-102
(52)(b):
879
(Aa) in the manufacturing process; and
880
(Bb) to manufacture an item sold as tangible personal property; or
881
(II) for a manufacturing facility that is a scrap recycler described in Subsection
882
59-12-102
(52)(b), to process an item sold as tangible personal property; and
883
(B) has an economic life of three or more years; and
884
(ii) normal operating repair or replacement parts that:
885
(A) have an economic life of three or more years; and
886
(B) are used:
887
(I) for a manufacturing facility in the state other than a manufacturing facility that is a
888
scrap recycler described in Subsection
59-12-102
(52)(b), in the manufacturing process; or
889
(II) for a manufacturing facility in the state that is a scrap recycler described in
890
Subsection
59-12-102
(52)(b), to process an item sold as tangible personal property;
891
(b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
892
manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
893
for the following:
894
(A) machinery and equipment that:
895
(I) is used:
896
(Aa) in the manufacturing process; and
897
(Bb) to manufacture an item sold as tangible personal property; and
898
(II) has an economic life of three or more years; and
899
(B) normal operating repair or replacement parts that:
900
(I) are used in the manufacturing process in a manufacturing facility in the state; and
901
(II) have an economic life of three or more years; and
902
(ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
903
2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
904
claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
905
(A) for sales and use taxes paid under this chapter on the purchase or lease payment;
906
and
907
(B) in accordance with Section
59-12-110
;
908
(c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
909
by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
910
NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
911
Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
912
of the 2002 North American Industry Classification System of the federal Executive Office of
913
the President, Office of Management and Budget:
914
(i) machinery and equipment that:
915
(A) are used in:
916
(I) the production process, other than the production of real property; or
917
(II) research and development; and
918
(B) have an economic life of three or more years; and
919
(ii) normal operating repair or replacement parts that:
920
(A) have an economic life of three or more years; and
921
(B) are used in:
922
(I) the production process, other than the production of real property, in an
923
establishment described in this Subsection (14)(c) in the state; or
924
(II) research and development in an establishment described in this Subsection (14)(c)
925
in the state;
926
(d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
927
Utah Administrative Rulemaking Act, the commission:
928
(i) shall by rule define the term "establishment"; and
929
(ii) may by rule define what constitutes:
930
(A) processing an item sold as tangible personal property;
931
(B) the production process, other than the production of real property; or
932
(C) research and development; and
933
(e) on or before October 1, 2011, and every five years after October 1, 2011, the
934
commission shall:
935
(i) review the exemptions described in this Subsection (14) and make
936
recommendations to the Revenue and Taxation Interim Committee concerning whether the
937
exemptions should be continued, modified, or repealed; and
938
(ii) include in its report:
939
(A) the cost of the exemptions;
940
(B) the purpose and effectiveness of the exemptions; and
941
(C) the benefits of the exemptions to the state;
942
(15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
943
(i) tooling;
944
(ii) special tooling;
945
(iii) support equipment;
946
(iv) special test equipment; or
947
(v) parts used in the repairs or renovations of tooling or equipment described in
948
Subsections (15)(a)(i) through (iv); and
949
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
950
(i) the tooling, equipment, or parts are used or consumed exclusively in the
951
performance of any aerospace or electronics industry contract with the United States
952
government or any subcontract under that contract; and
953
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
954
title to the tooling, equipment, or parts is vested in the United States government as evidenced
955
by:
956
(A) a government identification tag placed on the tooling, equipment, or parts; or
957
(B) listing on a government-approved property record if placing a government
958
identification tag on the tooling, equipment, or parts is impractical;
959
(16) sales of newspapers or newspaper subscriptions;
960
(17) (a) except as provided in Subsection (17)(b), tangible personal property or a
961
product transferred electronically traded in as full or part payment of the purchase price,
962
except that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle
963
dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
964
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
965
vehicle being traded in; or
966
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
967
fair market value of the vehicle being sold and the vehicle being traded in, as determined by
968
the commission; and
969
(b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
970
following items of tangible personal property or products transferred electronically traded in as
971
full or part payment of the purchase price:
972
(i) money;
973
(ii) electricity;
974
(iii) water;
975
(iv) gas; or
976
(v) steam;
977
(18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal
978
property or a product transferred electronically used or consumed primarily and directly in
979
farming operations, regardless of whether the tangible personal property or product transferred
980
electronically:
981
(A) becomes part of real estate; or
982
(B) is installed by a:
983
(I) farmer;
984
(II) contractor; or
985
(III) subcontractor; or
986
(ii) sales of parts used in the repairs or renovations of tangible personal property or a
987
product transferred electronically if the tangible personal property or product transferred
988
electronically is exempt under Subsection (18)(a)(i); and
989
(b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
990
subject to the taxes imposed by this chapter:
991
(i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
992
incidental to farming:
993
(I) machinery;
994
(II) equipment;
995
(III) materials; or
996
(IV) supplies; and
997
(B) tangible personal property that is considered to be used in a manner that is
998
incidental to farming includes:
999
(I) hand tools; or
1000
(II) maintenance and janitorial equipment and supplies;
1001
(ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1002
transferred electronically if the tangible personal property or product transferred electronically
1003
is used in an activity other than farming; and
1004
(B) tangible personal property or a product transferred electronically that is considered
1005
to be used in an activity other than farming includes:
1006
(I) office equipment and supplies; or
1007
(II) equipment and supplies used in:
1008
(Aa) the sale or distribution of farm products;
1009
(Bb) research; or
1010
(Cc) transportation; or
1011
(iii) a vehicle required to be registered by the laws of this state during the period
1012
ending two years after the date of the vehicle's purchase;
1013
(19) sales of hay;
1014
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1015
garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1016
garden, farm, or other agricultural produce is sold by:
1017
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1018
agricultural produce;
1019
(b) an employee of the producer described in Subsection (20)(a); or
1020
(c) a member of the immediate family of the producer described in Subsection (20)(a);
1021
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1022
under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1023
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1024
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1025
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1026
manufacturer, processor, wholesaler, or retailer;
1027
(23) a product stored in the state for resale;
1028
(24) (a) purchases of a product if:
1029
(i) the product is:
1030
(A) purchased outside of this state;
1031
(B) brought into this state:
1032
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1033
(II) by a nonresident person who is not living or working in this state at the time of the
1034
purchase;
1035
(C) used for the personal use or enjoyment of the nonresident person described in
1036
Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
1037
(D) not used in conducting business in this state; and
1038
(ii) for:
1039
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
1040
the product for a purpose for which the product is designed occurs outside of this state;
1041
(B) a boat, the boat is registered outside of this state; or
1042
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1043
outside of this state;
1044
(b) the exemption provided for in Subsection (24)(a) does not apply to:
1045
(i) a lease or rental of a product; or
1046
(ii) a sale of a vehicle exempt under Subsection (33); and
1047
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1048
purposes of Subsection (24)(a), the commission may by rule define what constitutes the
1049
following:
1050
(i) conducting business in this state if that phrase has the same meaning in this
1051
Subsection (24) as in Subsection [(66)] (64);
1052
(ii) the first use of a product if that phrase has the same meaning in this Subsection
1053
(24) as in Subsection [(66)] (64); or
1054
(iii) a purpose for which a product is designed if that phrase has the same meaning in
1055
this Subsection (24) as in Subsection [(66)] (64);
1056
(25) a product purchased for resale in this state, in the regular course of business, either
1057
in its original form or as an ingredient or component part of a manufactured or compounded
1058
product;
1059
(26) a product upon which a sales or use tax was paid to some other state, or one of its
1060
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1061
imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1062
the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1063
Act;
1064
(27) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a
1065
person for use in compounding a service taxable under the subsections;
1066
(28) purchases made in accordance with the special supplemental nutrition program
1067
for women, infants, and children established in 42 U.S.C. Sec. 1786;
1068
(29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
1069
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or
1070
ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial
1071
Classification Manual of the federal Executive Office of the President, Office of Management
1072
and Budget;
1073
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1074
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
1075
(a) not registered in this state; and
1076
(b) (i) not used in this state; or
1077
(ii) used in this state:
1078
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
1079
time period that does not exceed the longer of:
1080
(I) 30 days in any calendar year; or
1081
(II) the time period necessary to transport the boat, boat trailer, or outboard motor to
1082
the borders of this state; or
1083
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
1084
period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
1085
state;
1086
(31) sales of aircraft manufactured in Utah;
1087
(32) amounts paid for the purchase of telecommunications service for purposes of
1088
providing telecommunications service;
1089
(33) sales, leases, or uses of the following:
1090
(a) a vehicle by an authorized carrier; or
1091
(b) tangible personal property that is installed on a vehicle:
1092
(i) sold or leased to or used by an authorized carrier; and
1093
(ii) before the vehicle is placed in service for the first time;
1094
(34) (a) 45% of the sales price of any new manufactured home; and
1095
(b) 100% of the sales price of any used manufactured home;
1096
(35) sales relating to schools and fundraising sales;
1097
(36) sales or rentals of durable medical equipment if:
1098
(a) a person presents a prescription for the durable medical equipment; and
1099
(b) the durable medical equipment is used for home use only;
1100
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1101
Section
72-11-102
; and
1102
(b) the commission shall by rule determine the method for calculating sales exempt
1103
under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
1104
(38) sales to a ski resort of:
1105
(a) snowmaking equipment;
1106
(b) ski slope grooming equipment;
1107
(c) passenger ropeways as defined in Section
72-11-102
; or
1108
(d) parts used in the repairs or renovations of equipment or passenger ropeways
1109
described in Subsections (38)(a) through (c);
1110
(39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial
1111
use;
1112
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1113
amusement, entertainment, or recreation an unassisted amusement device as defined in Section
1114
59-12-102
;
1115
(b) if a seller that sells or rents at the same business location the right to use or operate
1116
for amusement, entertainment, or recreation one or more unassisted amusement devices and
1117
one or more assisted amusement devices, the exemption described in Subsection (40)(a)
1118
applies if the seller separately accounts for the sales or rentals of the right to use or operate for
1119
amusement, entertainment, or recreation for the assisted amusement devices; and
1120
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
1121
Utah Administrative Rulemaking Act, the commission may make rules:
1122
(i) governing the circumstances under which sales are at the same business location;
1123
and
1124
(ii) establishing the procedures and requirements for a seller to separately account for
1125
the sales or rentals of the right to use or operate for amusement, entertainment, or recreation
1126
for assisted amusement devices;
1127
(41) (a) sales of photocopies by:
1128
(i) a governmental entity; or
1129
(ii) an entity within the state system of public education, including:
1130
(A) a school; or
1131
(B) the State Board of Education; or
1132
(b) sales of publications by a governmental entity;
1133
(42) amounts paid for admission to an athletic event at an institution of higher
1134
education that is subject to the provisions of Title IX of the Education Amendments of 1972,
1135
20 U.S.C. Sec. 1681 et seq.;
1136
(43) sales of telecommunications service charged to a prepaid telephone calling card;
1137
(44) (a) sales made to or by:
1138
(i) an area agency on aging; or
1139
(ii) a senior citizen center owned by a county, city, or town; or
1140
(b) sales made by a senior citizen center that contracts with an area agency on aging;
1141
(45) sales or leases of semiconductor fabricating, processing, research, or development
1142
materials regardless of whether the semiconductor fabricating, processing, research, or
1143
development materials:
1144
(a) actually come into contact with a semiconductor; or
1145
(b) ultimately become incorporated into real property;
1146
(46) an amount paid by or charged to a purchaser for accommodations and services
1147
described in Subsection
59-12-103
(1)(i) to the extent the amount is exempt under Section
1148
59-12-104.2
;
1149
(47) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
1150
sports event registration certificate in accordance with Section
41-3-306
for the event period
1151
specified on the temporary sports event registration certificate;
1152
(48) sales or uses of electricity, if the sales or uses are:
1153
(a) made under a tariff adopted by the Public Service Commission of Utah only for
1154
purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
1155
source, as designated in the tariff by the Public Service Commission of Utah; and
1156
(b) for an amount of electricity that is:
1157
(i) unrelated to the amount of electricity used by the person purchasing the electricity
1158
under the tariff described in Subsection (48)(a); and
1159
(ii) equivalent to the number of kilowatthours specified in the tariff described in
1160
Subsection (48)(a) that may be purchased under the tariff described in Subsection (48)(a);
1161
(49) sales or rentals of mobility enhancing equipment if a person presents a
1162
prescription for the mobility enhancing equipment;
1163
(50) sales of water in a:
1164
(a) pipe;
1165
(b) conduit;
1166
(c) ditch; or
1167
(d) reservoir;
1168
(51) sales of currency or coinage that constitute legal tender of the United States or of
1169
a foreign nation;
1170
(52) (a) sales of an item described in Subsection (52)(b) if the item:
1171
(i) does not constitute legal tender of any nation; and
1172
(ii) has a gold, silver, or platinum content of 80% or more; and
1173
(b) Subsection (52)(a) applies to a gold, silver, or platinum:
1174
(i) ingot;
1175
(ii) bar;
1176
(iii) medallion; or
1177
(iv) decorative coin;
1178
(53) amounts paid on a sale-leaseback transaction;
1179
(54) sales of a prosthetic device:
1180
(a) for use on or in a human; and
1181
(b) (i) for which a prescription is required; or
1182
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
1183
(55) (a) except as provided in Subsection (55)(b), purchases, leases, or rentals of
1184
machinery or equipment by an establishment described in Subsection (55)(c) if the machinery
1185
or equipment is primarily used in the production or postproduction of the following media for
1186
commercial distribution:
1187
(i) a motion picture;
1188
(ii) a television program;
1189
(iii) a movie made for television;
1190
(iv) a music video;
1191
(v) a commercial;
1192
(vi) a documentary; or
1193
(vii) a medium similar to Subsections (55)(a)(i) through (vi) as determined by the
1194
commission by administrative rule made in accordance with Subsection (55)(d); or
1195
(b) notwithstanding Subsection (55)(a), purchases, leases, or rentals of machinery or
1196
equipment by an establishment described in Subsection (55)(c) that is used for the production
1197
or postproduction of the following are subject to the taxes imposed by this chapter:
1198
(i) a live musical performance;
1199
(ii) a live news program; or
1200
(iii) a live sporting event;
1201
(c) the following establishments listed in the 1997 North American Industry
1202
Classification System of the federal Executive Office of the President, Office of Management
1203
and Budget, apply to Subsections (55)(a) and (b):
1204
(i) NAICS Code 512110; or
1205
(ii) NAICS Code 51219; and
1206
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1207
the commission may by rule:
1208
(i) prescribe what constitutes a medium similar to Subsections (55)(a)(i) through (vi);
1209
or
1210
(ii) define:
1211
(A) "commercial distribution";
1212
(B) "live musical performance";
1213
(C) "live news program"; or
1214
(D) "live sporting event";
1215
(56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but
1216
on or before June 30, 2019, of machinery or equipment that:
1217
(i) is leased or purchased for or by a facility that:
1218
(A) is a renewable energy production facility;
1219
(B) is located in the state; and
1220
(C) (I) becomes operational on or after July 1, 2004; or
1221
(II) has its generation capacity increased by one or more megawatts on or after July 1,
1222
2004 as a result of the use of the machinery or equipment;
1223
(ii) has an economic life of five or more years; and
1224
(iii) is used to make the facility or the increase in capacity of the facility described in
1225
Subsection (56)(a)(i) operational up to the point of interconnection with an existing
1226
transmission grid including:
1227
(A) a wind turbine;
1228
(B) generating equipment;
1229
(C) a control and monitoring system;
1230
(D) a power line;
1231
(E) substation equipment;
1232
(F) lighting;
1233
(G) fencing;
1234
(H) pipes; or
1235
(I) other equipment used for locating a power line or pole; and
1236
(b) this Subsection (56) does not apply to:
1237
(i) machinery or equipment used in construction of:
1238
(A) a new renewable energy production facility; or
1239
(B) the increase in the capacity of a renewable energy production facility;
1240
(ii) contracted services required for construction and routine maintenance activities;
1241
and
1242
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
1243
of the facility described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or
1244
acquired after:
1245
(A) the renewable energy production facility described in Subsection (56)(a)(i) is
1246
operational as described in Subsection (56)(a)(iii); or
1247
(B) the increased capacity described in Subsection (56)(a)(i) is operational as
1248
described in Subsection (56)(a)(iii);
1249
(57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but
1250
on or before June 30, 2019, of machinery or equipment that:
1251
(i) is leased or purchased for or by a facility that:
1252
(A) is a waste energy production facility;
1253
(B) is located in the state; and
1254
(C) (I) becomes operational on or after July 1, 2004; or
1255
(II) has its generation capacity increased by one or more megawatts on or after July 1,
1256
2004 as a result of the use of the machinery or equipment;
1257
(ii) has an economic life of five or more years; and
1258
(iii) is used to make the facility or the increase in capacity of the facility described in
1259
Subsection (57)(a)(i) operational up to the point of interconnection with an existing
1260
transmission grid including:
1261
(A) generating equipment;
1262
(B) a control and monitoring system;
1263
(C) a power line;
1264
(D) substation equipment;
1265
(E) lighting;
1266
(F) fencing;
1267
(G) pipes; or
1268
(H) other equipment used for locating a power line or pole; and
1269
(b) this Subsection (57) does not apply to:
1270
(i) machinery or equipment used in construction of:
1271
(A) a new waste energy facility; or
1272
(B) the increase in the capacity of a waste energy facility;
1273
(ii) contracted services required for construction and routine maintenance activities;
1274
and
1275
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
1276
described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
1277
(A) the waste energy facility described in Subsection (57)(a)(i) is operational as
1278
described in Subsection (57)(a)(iii); or
1279
(B) the increased capacity described in Subsection (57)(a)(i) is operational as
1280
described in Subsection (57)(a)(iii);
1281
(58) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
1282
or before June 30, 2019, of machinery or equipment that:
1283
(i) is leased or purchased for or by a facility that:
1284
(A) is located in the state;
1285
(B) produces fuel from biomass energy including:
1286
(I) methanol; or
1287
(II) ethanol; and
1288
(C) (I) becomes operational on or after July 1, 2004; or
1289
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004
1290
as a result of the installation of the machinery or equipment;
1291
(ii) has an economic life of five or more years; and
1292
(iii) is installed on the facility described in Subsection (58)(a)(i);
1293
(b) this Subsection (58) does not apply to:
1294
(i) machinery or equipment used in construction of:
1295
(A) a new facility described in Subsection (58)(a)(i); or
1296
(B) the increase in capacity of the facility described in Subsection (58)(a)(i); or
1297
(ii) contracted services required for construction and routine maintenance activities;
1298
and
1299
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
1300
described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
1301
(A) the facility described in Subsection (58)(a)(i) is operational; or
1302
(B) the increased capacity described in Subsection (58)(a)(i) is operational;
1303
(59) (a) subject to Subsection (59)(b) or (c), sales of tangible personal property or a
1304
product transferred electronically to a person within this state if that tangible personal property
1305
or product transferred electronically is subsequently shipped outside the state and incorporated
1306
pursuant to contract into and becomes a part of real property located outside of this state;
1307
(b) the exemption under Subsection (59)(a) is not allowed to the extent that the other
1308
state or political entity to which the tangible personal property is shipped imposes a sales, use,
1309
gross receipts, or other similar transaction excise tax on the transaction against which the other
1310
state or political entity allows a credit for sales and use taxes imposed by this chapter; and
1311
(c) notwithstanding the time period of Subsection
59-12-110
(2)(b) for filing for a
1312
refund, a person may claim the exemption allowed by this Subsection (59) for a sale by filing
1313
for a refund:
1314
(i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
1315
(ii) as if this Subsection (59) as in effect on July 1, 2008, were in effect on the day on
1316
which the sale is made;
1317
(iii) if the person did not claim the exemption allowed by this Subsection (59) for the
1318
sale prior to filing for the refund;
1319
(iv) for sales and use taxes paid under this chapter on the sale;
1320
(v) in accordance with Section
59-12-110
; and
1321
(vi) subject to any extension allowed for filing for a refund under Section
59-12-110
,
1322
if the person files for the refund on or before June 30, 2011;
1323
(60) purchases:
1324
(a) of one or more of the following items in printed or electronic format:
1325
(i) a list containing information that includes one or more:
1326
(A) names; or
1327
(B) addresses; or
1328
(ii) a database containing information that includes one or more:
1329
(A) names; or
1330
(B) addresses; and
1331
(b) used to send direct mail;
1332
(61) redemptions or repurchases of a product by a person if that product was:
1333
(a) delivered to a pawnbroker as part of a pawn transaction; and
1334
(b) redeemed or repurchased within the time period established in a written agreement
1335
between the person and the pawnbroker for redeeming or repurchasing the product;
1336
(62) (a) purchases or leases of an item described in Subsection (62)(b) if the item:
1337
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
1338
and
1339
(ii) has a useful economic life of one or more years; and
1340
(b) the following apply to Subsection (62)(a):
1341
(i) telecommunications enabling or facilitating equipment, machinery, or software;
1342
(ii) telecommunications equipment, machinery, or software required for 911 service;
1343
(iii) telecommunications maintenance or repair equipment, machinery, or software;
1344
(iv) telecommunications switching or routing equipment, machinery, or software; or
1345
(v) telecommunications transmission equipment, machinery, or software;
1346
(63) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of
1347
tangible personal property or a product transferred electronically that are used in the research
1348
and development of coal-to-liquids, oil shale, or tar sands technology; and
1349
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1350
the commission may, for purposes of Subsection (63)(a), make rules defining what constitutes
1351
purchases of tangible personal property or a product transferred electronically that are used in
1352
the research and development of coal-to-liquids, oil shale, and tar sands technology;
1353
(64) (a) purchases of tangible personal property or a product transferred electronically
1354
if:
1355
(i) the tangible personal property or product transferred electronically is:
1356
(A) purchased outside of this state;
1357
(B) brought into this state at any time after the purchase described in Subsection
1358
(64)(a)(i)(A); and
1359
(C) used in conducting business in this state; and
1360
(ii) for:
1361
(A) tangible personal property or a product transferred electronically other than the
1362
tangible personal property described in Subsection (64)(a)(ii)(B), the first use of the property
1363
for a purpose for which the property is designed occurs outside of this state; or
1364
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1365
outside of this state;
1366
(b) the exemption provided for in Subsection (64)(a) does not apply to:
1367
(i) a lease or rental of tangible personal property or a product transferred
1368
electronically; or
1369
(ii) a sale of a vehicle exempt under Subsection (33); and
1370
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1371
purposes of Subsection (64)(a), the commission may by rule define what constitutes the
1372
following:
1373
(i) conducting business in this state if that phrase has the same meaning in this
1374
Subsection (64) as in Subsection (24);
1375
(ii) the first use of tangible personal property or a product transferred electronically if
1376
that phrase has the same meaning in this Subsection (64) as in Subsection (24); or
1377
(iii) a purpose for which tangible personal property or a product transferred
1378
electronically is designed if that phrase has the same meaning in this Subsection (64) as in
1379
Subsection (24);
1380
(65) sales of disposable home medical equipment or supplies if:
1381
(a) a person presents a prescription for the disposable home medical equipment or
1382
supplies;
1383
(b) the disposable home medical equipment or supplies are used exclusively by the
1384
person to whom the prescription described in Subsection (65)(a) is issued; and
1385
(c) the disposable home medical equipment and supplies are listed as eligible for
1386
payment under:
1387
(i) Title XVIII, federal Social Security Act; or
1388
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
1389
(66) sales:
1390
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
1391
District Act; or
1392
(b) of tangible personal property to a subcontractor of a public transit district, if the
1393
tangible personal property is:
1394
(i) clearly identified; and
1395
(ii) installed or converted to real property owned by the public transit district;
1396
(67) sales of construction materials:
1397
(a) purchased on or after July 1, 2010;
1398
(b) purchased by, on behalf of, or for the benefit of an international airport:
1399
(i) located within a county of the first class; and
1400
(ii) that has a United States customs office on its premises; and
1401
(c) if the construction materials are:
1402
(i) clearly identified;
1403
(ii) segregated; and
1404
(iii) installed or converted to real property:
1405
(A) owned or operated by the international airport described in Subsection (67)(b);
1406
and
1407
(B) located at the international airport described in Subsection (67)(b);
1408
(68) sales of construction materials:
1409
(a) purchased on or after July 1, 2008;
1410
(b) purchased by, on behalf of, or for the benefit of a new airport:
1411
(i) located within a county of the second class; and
1412
(ii) that is owned or operated by a city in which an airline as defined in Section
1413
59-2-102
is headquartered; and
1414
(c) if the construction materials are:
1415
(i) clearly identified;
1416
(ii) segregated; and
1417
(iii) installed or converted to real property:
1418
(A) owned or operated by the new airport described in Subsection (68)(b);
1419
(B) located at the new airport described in Subsection (68)(b); and
1420
(C) as part of the construction of the new airport described in Subsection (68)(b); and
1421
(69) sales of fuel to a common carrier that is a railroad for use in a locomotive engine.
1422
Section 3. Effective date -- Retrospective operation.
1423
This bill:
1424
(1) if approved by two-thirds of all the members elected to each house, takes effect
1425
upon approval by the governor, or the day following the constitutional time limit of Utah
1426
Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
1427
the date of veto override; and
1428
(2) has retrospective operation to July 1, 2008.
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