S.B. 30

1

LOCAL OPTION SALES AND USE TAXES
2 FOR TRANSPORTATION ACT
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne L. Niederhauser
6 House Sponsor: R. Curt Webb
7
8 LONG TITLE
9 Committee Note:
10 The Revenue and Taxation Interim Committee recommended this bill.
11 General Description:
12 This bill amends the Sales and Use Tax Act to address local option sales and use taxes
13 for transportation.
14 Highlighted Provisions:
15 This bill:
16 . enacts the Local Option Sales and Use Taxes for Transportation Act;
17 . defines terms;
18 . repeals certain local option sales and use taxes for transportation and enacts certain
19 local option sales and use taxes for transportation;
20 . addresses the authority to impose a local option sales and use tax for transportation;
21 . addresses the transactions that may be subject to taxation and the tax rates at which
22 those transactions may be subject to taxation;
23 . addresses the determination of the location of a transaction for sales and use tax
24 purposes;
25 . addresses the administration, collection, and enforcement of a local option sales and
26 use tax for transportation;
27 . addresses the transfer or transmission of revenues collected from a local option

28 sales and use tax for transportation;
29 . addresses the State Tax Commission's authority to retain a percentage of revenues
30 collected from a local option sales and use tax for transportation, the deposit of
31 those revenues into the Sales and Use Tax Administrative Fees Account, and the
32 expenditure of those revenues;
33 . addresses legislative body and voter approval requirements for a local option sales
34 and use tax for transportation;
35 . addresses the enactment, repeal, or change in the rate of a local option sales and use
36 tax for transportation;
37 . addresses a seller's or certified service provider's failure to collect a local option
38 sales and use tax for transportation if the seller or certified service provider relies on
39 certain State Tax Commission information;
40 . addresses a seller's or certified service provider's failure to collect a local option
41 sales and use tax for transportation if the seller or certified service provider relies on
42 certain software certified by the State Tax Commission;
43 . addresses the circumstances under which a purchaser is relieved from a penalty or is
44 not liable for a tax or interest;
45 . addresses the imposition of local option sales and use taxes for transportation
46 including the purposes for which revenues collected from the taxes may be
47 expended; and
48 . makes technical and conforming changes.
49 Monies Appropriated in this Bill:
50 None
51 Other Special Clauses:
52 This bill takes effect on July 1, 2010.
53 Utah Code Sections Affected:
54 AMENDS:
55 10-8-86, as last amended by Laws of Utah 1988, Chapter 213
56 17-50-322, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
57 17B-1-412, as renumbered and amended by Laws of Utah 2007, Chapter 329
58 59-12-102, as last amended by Laws of Utah 2009, Chapters 203 and 314

59 59-12-211, as enacted by Laws of Utah 2008, Chapter 384
60 59-12-602, as last amended by Laws of Utah 2008, Chapter 286
61 59-12-2003, as last amended by Laws of Utah 2009, Chapter 385
62 63B-11-501, as last amended by Laws of Utah 2003, Chapter 335
63 63B-11-502, as last amended by Laws of Utah 2008, Chapter 224
64 72-2-117.5, as last amended by Laws of Utah 2009, Chapters 244, 344, and 374
65 72-2-121, as last amended by Laws of Utah 2009, Chapter 275
66 72-2-121.1, as last amended by Laws of Utah 2007, Chapter 10
67 72-2-121.2, as last amended by Laws of Utah 2009, Chapter 244
68 72-10-215, as enacted by Laws of Utah 2008, Chapter 286
69 ENACTS:
70 59-12-2201, Utah Code Annotated 1953
71 59-12-2202, Utah Code Annotated 1953
72 59-12-2203, Utah Code Annotated 1953
73 59-12-2204, Utah Code Annotated 1953
74 59-12-2205, Utah Code Annotated 1953
75 59-12-2206, Utah Code Annotated 1953
76 59-12-2207, Utah Code Annotated 1953
77 59-12-2208, Utah Code Annotated 1953
78 59-12-2209, Utah Code Annotated 1953
79 59-12-2210, Utah Code Annotated 1953
80 59-12-2211, Utah Code Annotated 1953
81 59-12-2212, Utah Code Annotated 1953
82 59-12-2213, Utah Code Annotated 1953
83 59-12-2214, Utah Code Annotated 1953
84 59-12-2215, Utah Code Annotated 1953
85 59-12-2216, Utah Code Annotated 1953
86 59-12-2217, Utah Code Annotated 1953
87 RENUMBERS AND AMENDS:
88 59-12-2218, (Renumbered from 59-12-1903, as last amended by Laws of Utah 2009,
89 Chapter 244)

90 REPEALS:
91 59-12-501, as last amended by Laws of Utah 2008, Chapters 7 and 384
92 59-12-502, as last amended by Laws of Utah 2009, Chapter 244
93 59-12-503, as enacted by Laws of Utah 1997, Chapter 131
94 59-12-504, as last amended by Laws of Utah 2008, Chapters 382 and 384
95 59-12-506, as last amended by Laws of Utah 2009, Chapter 203
96 59-12-507, as enacted by Laws of Utah 2008, Chapter 384
97 59-12-508, as enacted by Laws of Utah 2008, Chapter 384
98 59-12-1001, as last amended by Laws of Utah 2009, Chapter 388
99 59-12-1002, as last amended by Laws of Utah 2008, Chapter 384
100 59-12-1004, as last amended by Laws of Utah 2009, Chapter 203
101 59-12-1005, as enacted by Laws of Utah 2008, Chapter 384
102 59-12-1006, as enacted by Laws of Utah 2008, Chapter 384
103 59-12-1501, as enacted by Laws of Utah 2003, Chapter 282
104 59-12-1502, as last amended by Laws of Utah 2007, Chapters 10 and 329
105 59-12-1503, as last amended by Laws of Utah 2008, Chapters 382 and 384
106 59-12-1505, as last amended by Laws of Utah 2009, Chapter 203
107 59-12-1506, as enacted by Laws of Utah 2008, Chapter 384
108 59-12-1507, as enacted by Laws of Utah 2008, Chapter 384
109 59-12-1701, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
110 59-12-1702, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
111 59-12-1703, as last amended by Laws of Utah 2008, Chapters 382 and 384
112 59-12-1704, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
113 59-12-1705, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
114 59-12-1706, as last amended by Laws of Utah 2009, Chapter 203
115 59-12-1707, as enacted by Laws of Utah 2008, Chapter 384
116 59-12-1708, as enacted by Laws of Utah 2008, Chapter 384
117 59-12-1901, as last amended by Laws of Utah 2009, Chapter 244
118 59-12-1902, as last amended by Laws of Utah 2009, Chapter 244
119 59-12-1904, as last amended by Laws of Utah 2009, Chapter 203
120 59-12-1905, as enacted by Laws of Utah 2008, Chapter 286

121 59-12-1906, as enacted by Laws of Utah 2008, Chapter 286
122
123 Be it enacted by the Legislature of the state of Utah:
124 Section 1. Section 10-8-86 is amended to read:
125 10-8-86. Organization, operation, maintenance, and funding of system for public
126 transit authorized.
127 (1) The governing body of any municipality may adopt a resolution allowing the
128 municipality to organize, operate, and maintain a [public transportation] system for public
129 transit within [such] the municipality and to impose a sales and a use tax to fund the system for
130 public transit as provided in Section [ 59-12-501 ] 59-12-2213 .
131 (2) The authority granted municipalities by this section to organize, operate, and
132 maintain a [public transportation] system for public transit is inapplicable to a municipality
133 located in or within five highway or roadway miles of the boundary of an existing transit
134 district, unless the existing transit district consents to the organization and operation of [such a]
135 the system for public transit by the municipality.
136 Section 2. Section 17-50-322 is amended to read:
137 17-50-322. County funding for a fixed guideway.
138 (1) For purposes of this section, "fixed guideway" means a public transit facility that
139 uses and occupies:
140 (a) rail for the use of public transit; or
141 (b) a separate right-of-way for the use of public transit.
142 (2) (a) Except as provided in Subsection (2)(b), a county legislative body may not levy
143 a property tax or expend revenues from uniform fees or any tax or fee imposed in lieu of a
144 property tax, to purchase, erect, repair, rebuild, maintain, or otherwise fund a fixed guideway.
145 (b) Subsection (2)(a) does not apply to a property tax levy imposed by a county for the
146 purpose of paying for bonds if:
147 (i) before January 1, 2007, the bonds were issued or approved by voters for issuance to
148 fund a fixed guideway; and
149 (ii) the county does not impose a sales and use tax authorized by Section [ 59-12-1703 ]
150 59-12-2217 .
151 Section 3. Section 17B-1-412 is amended to read:

152 17B-1-412. Protests -- Election.
153 (1) (a) An owner of private real property located within or a registered voter residing
154 within an area proposed to be annexed may protest an annexation by filing a written protest
155 with the board of trustees of the proposed annexing local district, except:
156 (i) as provided in Section 17B-1-413 ;
157 (ii) for an annexation under Section 17B-1-415 ; and
158 (iii) for an annexation proposed by a local district that receives sales and use tax funds
159 from the counties, cities, and towns within the local district that impose a sales and use tax
160 under Section [ 59-12-501 ] 59-12-2213 .
161 (b) A protest of a boundary adjustment is not governed by this section but is governed
162 by Section 17B-1-417 .
163 (2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of
164 the public hearing under Section 17B-1-409 .
165 (3) (a) Except as provided in Subsection (4), the local district shall hold an election on
166 the proposed annexation if:
167 (i) timely protests are filed by:
168 (A) the owners of private real property that:
169 (I) is located within the area proposed to be annexed;
170 (II) covers at least 10% of the total private land area within the entire area proposed to
171 be annexed and within each applicable area; and
172 (III) is equal in assessed value to at least 10% of the assessed value of all private real
173 property within the entire area proposed to be annexed and within each applicable area; or
174 (B) registered voters residing within the entire area proposed to be annexed and within
175 each applicable area equal in number to at least 10% of the number of votes cast within the
176 entire area proposed for annexation and within each applicable area, respectively, for the office
177 of governor at the last regular general election before the filing of the petition; or
178 (ii) the proposed annexing local district is one that receives sales and use tax funds
179 from the counties, cities, and towns within the local district that impose a sales and use tax
180 under Section [ 59-12-501 ] 59-12-2213 .
181 (b) (i) At each election held under Subsection (3)(a)(ii), the ballot question shall be
182 phrased to indicate that a voter's casting a vote for or against the annexation includes also a

183 vote for or against the imposition of the sales and use tax as provided in Section [ 59-12-501 ]
184 59-12-2213 .
185 (ii) Except as otherwise provided in this part, each election under Subsection (3)(a)
186 shall be governed by Title 20A, Election Code.
187 (c) If a majority of registered voters residing within the area proposed to be annexed
188 and voting on the proposal vote:
189 (i) in favor of annexation, the board of trustees shall, subject to Subsections
190 17B-1-414 (1)(b), (2), and (3), complete the annexation by adopting a resolution approving
191 annexation of the area; or
192 (ii) against annexation, the annexation process is terminated, the board may not adopt a
193 resolution approving annexation of the area, and the area proposed to be annexed may not for
194 two years be the subject of an effort under this part to annex to the same local district.
195 (4) If sufficient protests are filed under this section to require an election for a
196 proposed annexation to which the protest provisions of this section are applicable, a board of
197 trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and
198 terminating the annexation process without holding an election.
199 Section 4. Section 59-12-102 is amended to read:
200 59-12-102. Definitions.
201 As used in this chapter:
202 (1) "800 service" means a telecommunications service that:
203 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
204 (b) is typically marketed:
205 (i) under the name 800 toll-free calling;
206 (ii) under the name 855 toll-free calling;
207 (iii) under the name 866 toll-free calling;
208 (iv) under the name 877 toll-free calling;
209 (v) under the name 888 toll-free calling; or
210 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
211 Federal Communications Commission.
212 (2) (a) "900 service" means an inbound toll telecommunications service that:
213 (i) a subscriber purchases;

214 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
215 the subscriber's:
216 (A) prerecorded announcement; or
217 (B) live service; and
218 (iii) is typically marketed:
219 (A) under the name 900 service; or
220 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
221 Communications Commission.
222 (b) "900 service" does not include a charge for:
223 (i) a collection service a seller of a telecommunications service provides to a
224 subscriber; or
225 (ii) the following a subscriber sells to the subscriber's customer:
226 (A) a product; or
227 (B) a service.
228 (3) (a) "Admission or user fees" includes season passes.
229 (b) "Admission or user fees" does not include annual membership dues to private
230 organizations.
231 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
232 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
233 Agreement after November 12, 2002.
234 (5) "Agreement combined tax rate" means the sum of the tax rates:
235 (a) listed under Subsection (6); and
236 (b) that are imposed within a local taxing jurisdiction.
237 (6) "Agreement sales and use tax" means a tax imposed under:
238 (a) Subsection 59-12-103 (2)(a)(i)(A);
239 (b) Subsection 59-12-103 (2)(b)(i);
240 (c) Subsection 59-12-103 (2)(c)(i);
241 (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
242 (e) Section 59-12-204 ;
243 (f) Section 59-12-401 ;
244 (g) Section 59-12-402 ;

245 [(h) Section 59-12-501 ;]
246 [(i) Section 59-12-502 ;]
247 [(j)] (h) Section 59-12-703 ;
248 [(k)] (i) Section 59-12-802 ;
249 [(l)] (j) Section 59-12-804 ;
250 [(m) Section 59-12-1001 ;]
251 [(n)] (k) Section 59-12-1102 ;
252 [(o)] (l) Section 59-12-1302 ;
253 [(p)] (m) Section 59-12-1402 ;
254 [(q) Section 59-12-1503 ;]
255 [(r) Section 59-12-1703 ;]
256 [(s)] (n) Section 59-12-1802 ;
257 [(t) Section 59-12-1903 ;]
258 [(u)] (o) Section 59-12-2003 ; [or]
259 [(v)] (p) Section 59-12-2103 [.];
260 (q) Section 59-12-2213 ;
261 (r) Section 59-12-2214 ;
262 (s) Section 59-12-2215 ;
263 (t) Section 59-12-2216 ;
264 (u) Section 59-12-2217 ; or
265 (v) Section 59-12-2218 .
266 (7) "Aircraft" is as defined in Section 72-10-102 .
267 (8) "Alcoholic beverage" means a beverage that:
268 (a) is suitable for human consumption; and
269 (b) contains .5% or more alcohol by volume.
270 (9) (a) "Ancillary service" means a service associated with, or incidental to, the
271 provision of telecommunications service.
272 (b) "Ancillary service" includes:
273 (i) a conference bridging service;
274 (ii) a detailed communications billing service;
275 (iii) directory assistance;

276 (iv) a vertical service; or
277 (v) a voice mail service.
278 (10) "Area agency on aging" is as defined in Section 62A-3-101 .
279 (11) "Assisted amusement device" means an amusement device, skill device, or ride
280 device that is started and stopped by an individual:
281 (a) who is not the purchaser or renter of the right to use or operate the amusement
282 device, skill device, or ride device; and
283 (b) at the direction of the seller of the right to use the amusement device, skill device,
284 or ride device.
285 (12) "Assisted cleaning or washing of tangible personal property" means cleaning or
286 washing of tangible personal property if the cleaning or washing labor is primarily performed
287 by an individual:
288 (a) who is not the purchaser of the cleaning or washing of the tangible personal
289 property; and
290 (b) at the direction of the seller of the cleaning or washing of the tangible personal
291 property.
292 (13) "Authorized carrier" means:
293 (a) in the case of vehicles operated over public highways, the holder of credentials
294 indicating that the vehicle is or will be operated pursuant to both the International Registration
295 Plan and the International Fuel Tax Agreement;
296 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
297 certificate or air carrier's operating certificate; or
298 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
299 stock, the holder of a certificate issued by the United States Surface Transportation Board.
300 (14) (a) Except as provided in Subsection (14)(b), "biomass energy" means any of the
301 following that is used as the primary source of energy to produce fuel or electricity:
302 (i) material from a plant or tree; or
303 (ii) other organic matter that is available on a renewable basis, including:
304 (A) slash and brush from forests and woodlands;
305 (B) animal waste;
306 (C) methane produced:

307 (I) at landfills; or
308 (II) as a byproduct of the treatment of wastewater residuals;
309 (D) aquatic plants; and
310 (E) agricultural products.
311 (b) "Biomass energy" does not include:
312 (i) black liquor;
313 (ii) treated woods; or
314 (iii) biomass from municipal solid waste other than methane produced:
315 (A) at landfills; or
316 (B) as a byproduct of the treatment of wastewater residuals.
317 (15) (a) "Bundled transaction" means the sale of two or more items of tangible personal
318 property, products, or services if the tangible personal property, products, or services are:
319 (i) distinct and identifiable; and
320 (ii) sold for one nonitemized price.
321 (b) "Bundled transaction" does not include:
322 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
323 the basis of the selection by the purchaser of the items of tangible personal property included in
324 the transaction;
325 (ii) the sale of real property;
326 (iii) the sale of services to real property;
327 (iv) the retail sale of tangible personal property and a service if:
328 (A) the tangible personal property:
329 (I) is essential to the use of the service; and
330 (II) is provided exclusively in connection with the service; and
331 (B) the service is the true object of the transaction;
332 (v) the retail sale of two services if:
333 (A) one service is provided that is essential to the use or receipt of a second service;
334 (B) the first service is provided exclusively in connection with the second service; and
335 (C) the second service is the true object of the transaction;
336 (vi) a transaction that includes tangible personal property or a product subject to
337 taxation under this chapter and tangible personal property or a product that is not subject to

338 taxation under this chapter if the:
339 (A) seller's purchase price of the tangible personal property or product subject to
340 taxation under this chapter is de minimis; or
341 (B) seller's sales price of the tangible personal property or product subject to taxation
342 under this chapter is de minimis; and
343 (vii) the retail sale of tangible personal property that is not subject to taxation under
344 this chapter and tangible personal property that is subject to taxation under this chapter if:
345 (A) that retail sale includes:
346 (I) food and food ingredients;
347 (II) a drug;
348 (III) durable medical equipment;
349 (IV) mobility enhancing equipment;
350 (V) an over-the-counter drug;
351 (VI) a prosthetic device; or
352 (VII) a medical supply; and
353 (B) subject to Subsection (15)(f):
354 (I) the seller's purchase price of the tangible personal property subject to taxation under
355 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
356 (II) the seller's sales price of the tangible personal property subject to taxation under
357 this chapter is 50% or less of the seller's total sales price of that retail sale.
358 (c) (i) For purposes of Subsection (15)(a)(i), tangible personal property, a product, or a
359 service that is distinct and identifiable does not include:
360 (A) packaging that:
361 (I) accompanies the sale of the tangible personal property, product, or service; and
362 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
363 service;
364 (B) tangible personal property, a product, or a service provided free of charge with the
365 purchase of another item of tangible personal property, a product, or a service; or
366 (C) an item of tangible personal property, a product, or a service included in the
367 definition of "purchase price."
368 (ii) For purposes of Subsection (15)(c)(i)(B), an item of tangible personal property, a

369 product, or a service is provided free of charge with the purchase of another item of tangible
370 personal property, a product, or a service if the sales price of the purchased item of tangible
371 personal property, product, or service does not vary depending on the inclusion of the tangible
372 personal property, product, or service provided free of charge.
373 (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
374 does not include a price that is separately identified by product on the following, regardless of
375 whether the following is in paper format or electronic format:
376 (A) a binding sales document; or
377 (B) another supporting sales-related document that is available to a purchaser.
378 (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
379 supporting sales-related document that is available to a purchaser includes:
380 (A) a bill of sale;
381 (B) a contract;
382 (C) an invoice;
383 (D) a lease agreement;
384 (E) a periodic notice of rates and services;
385 (F) a price list;
386 (G) a rate card;
387 (H) a receipt; or
388 (I) a service agreement.
389 (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
390 property or a product subject to taxation under this chapter is de minimis if:
391 (A) the seller's purchase price of the tangible personal property or product is 10% or
392 less of the seller's total purchase price of the bundled transaction; or
393 (B) the seller's sales price of the tangible personal property or product is 10% or less of
394 the seller's total sales price of the bundled transaction.
395 (ii) For purposes of Subsection (15)(b)(vi), a seller:
396 (A) shall use the seller's purchase price or the seller's sales price to determine if the
397 purchase price or sales price of the tangible personal property or product subject to taxation
398 under this chapter is de minimis; and
399 (B) may not use a combination of the seller's purchase price and the seller's sales price

400 to determine if the purchase price or sales price of the tangible personal property or product
401 subject to taxation under this chapter is de minimis.
402 (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
403 contract to determine if the sales price of tangible personal property or a product is de minimis.
404 (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
405 the seller's purchase price and the seller's sales price to determine if tangible personal property
406 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
407 price of that retail sale.
408 (16) "Certified automated system" means software certified by the governing board of
409 the agreement that:
410 (a) calculates the agreement sales and use tax imposed within a local taxing
411 jurisdiction:
412 (i) on a transaction; and
413 (ii) in the states that are members of the agreement;
414 (b) determines the amount of agreement sales and use tax to remit to a state that is a
415 member of the agreement; and
416 (c) maintains a record of the transaction described in Subsection (16)(a)(i).
417 (17) "Certified service provider" means an agent certified:
418 (a) by the governing board of the agreement; and
419 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
420 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
421 own purchases.
422 (18) (a) Subject to Subsection (18)(b), "clothing" means all human wearing apparel
423 suitable for general use.
424 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
425 commission shall make rules:
426 (i) listing the items that constitute "clothing"; and
427 (ii) that are consistent with the list of items that constitute "clothing" under the
428 agreement.
429 (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
430 (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other

431 fuels that does not constitute industrial use under Subsection (46) or residential use under
432 Subsection (91).
433 (21) (a) "Common carrier" means a person engaged in or transacting the business of
434 transporting passengers, freight, merchandise, or other property for hire within this state.
435 (b) (i) "Common carrier" does not include a person who, at the time the person is
436 traveling to or from that person's place of employment, transports a passenger to or from the
437 passenger's place of employment.
438 (ii) For purposes of Subsection (21)(b)(i), in accordance with Title 63G, Chapter 3,
439 Utah Administrative Rulemaking Act, the commission may make rules defining what
440 constitutes a person's place of employment.
441 (22) "Component part" includes:
442 (a) poultry, dairy, and other livestock feed, and their components;
443 (b) baling ties and twine used in the baling of hay and straw;
444 (c) fuel used for providing temperature control of orchards and commercial
445 greenhouses doing a majority of their business in wholesale sales, and for providing power for
446 off-highway type farm machinery; and
447 (d) feed, seeds, and seedlings.
448 (23) "Computer" means an electronic device that accepts information:
449 (a) (i) in digital form; or
450 (ii) in a form similar to digital form; and
451 (b) manipulates that information for a result based on a sequence of instructions.
452 (24) "Computer software" means a set of coded instructions designed to cause:
453 (a) a computer to perform a task; or
454 (b) automatic data processing equipment to perform a task.
455 (25) (a) "Conference bridging service" means an ancillary service that links two or
456 more participants of an audio conference call or video conference call.
457 (b) "Conference bridging service" includes providing a telephone number as part of the
458 ancillary service described in Subsection (25)(a).
459 (c) "Conference bridging service" does not include a telecommunications service used
460 to reach the ancillary service described in Subsection (25)(a).
461 (26) "Construction materials" means any tangible personal property that will be

462 converted into real property.
463 (27) "Delivered electronically" means delivered to a purchaser by means other than
464 tangible storage media.
465 (28) (a) "Delivery charge" means a charge:
466 (i) by a seller of:
467 (A) tangible personal property;
468 (B) a product transferred electronically; or
469 (C) services; and
470 (ii) for preparation and delivery of the tangible personal property, product transferred
471 electronically, or services described in Subsection (28)(a)(i) to a location designated by the
472 purchaser.
473 (b) "Delivery charge" includes a charge for the following:
474 (i) transportation;
475 (ii) shipping;
476 (iii) postage;
477 (iv) handling;
478 (v) crating; or
479 (vi) packing.
480 (29) "Detailed telecommunications billing service" means an ancillary service of
481 separately stating information pertaining to individual calls on a customer's billing statement.
482 (30) "Dietary supplement" means a product, other than tobacco, that:
483 (a) is intended to supplement the diet;
484 (b) contains one or more of the following dietary ingredients:
485 (i) a vitamin;
486 (ii) a mineral;
487 (iii) an herb or other botanical;
488 (iv) an amino acid;
489 (v) a dietary substance for use by humans to supplement the diet by increasing the total
490 dietary intake; or
491 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
492 described in Subsections (30)(b)(i) through (v);

493 (c) (i) except as provided in Subsection (30)(c)(ii), is intended for ingestion in:
494 (A) tablet form;
495 (B) capsule form;
496 (C) powder form;
497 (D) softgel form;
498 (E) gelcap form; or
499 (F) liquid form; or
500 (ii) notwithstanding Subsection (30)(c)(i), if the product is not intended for ingestion in
501 a form described in Subsections (30)(c)(i)(A) through (F), is not represented:
502 (A) as conventional food; and
503 (B) for use as a sole item of:
504 (I) a meal; or
505 (II) the diet; and
506 (d) is required to be labeled as a dietary supplement:
507 (i) identifiable by the "Supplemental Facts" box found on the label; and
508 (ii) as required by 21 C.F.R. Sec. 101.36.
509 (31) (a) "Direct mail" means printed material delivered or distributed by United States
510 mail or other delivery service:
511 (i) to:
512 (A) a mass audience; or
513 (B) addressees on a mailing list provided:
514 (I) by a purchaser of the mailing list; or
515 (II) at the discretion of the purchaser of the mailing list; and
516 (ii) if the cost of the printed material is not billed directly to the recipients.
517 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
518 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
519 (c) "Direct mail" does not include multiple items of printed material delivered to a
520 single address.
521 (32) "Directory assistance" means an ancillary service of providing:
522 (a) address information; or
523 (b) telephone number information.

524 (33) (a) "Disposable home medical equipment or supplies" means medical equipment
525 or supplies that:
526 (i) cannot withstand repeated use; and
527 (ii) are purchased by, for, or on behalf of a person other than:
528 (A) a health care facility as defined in Section 26-21-2 ;
529 (B) a health care provider as defined in Section 78B-3-403 ;
530 (C) an office of a health care provider described in Subsection (33)(a)(ii)(B); or
531 (D) a person similar to a person described in Subsections (33)(a)(ii)(A) through (C).
532 (b) "Disposable home medical equipment or supplies" does not include:
533 (i) a drug;
534 (ii) durable medical equipment;
535 (iii) a hearing aid;
536 (iv) a hearing aid accessory;
537 (v) mobility enhancing equipment; or
538 (vi) tangible personal property used to correct impaired vision, including:
539 (A) eyeglasses; or
540 (B) contact lenses.
541 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
542 commission may by rule define what constitutes medical equipment or supplies.
543 (34) (a) "Drug" means a compound, substance, or preparation, or a component of a
544 compound, substance, or preparation that is:
545 (i) recognized in:
546 (A) the official United States Pharmacopoeia;
547 (B) the official Homeopathic Pharmacopoeia of the United States;
548 (C) the official National Formulary; or
549 (D) a supplement to a publication listed in Subsections (34)(a)(i)(A) through (C);
550 (ii) intended for use in the:
551 (A) diagnosis of disease;
552 (B) cure of disease;
553 (C) mitigation of disease;
554 (D) treatment of disease; or

555 (E) prevention of disease; or
556 (iii) intended to affect:
557 (A) the structure of the body; or
558 (B) any function of the body.
559 (b) "Drug" does not include:
560 (i) food and food ingredients;
561 (ii) a dietary supplement;
562 (iii) an alcoholic beverage; or
563 (iv) a prosthetic device.
564 (35) (a) Except as provided in Subsection (35)(c), "durable medical equipment" means
565 equipment that:
566 (i) can withstand repeated use;
567 (ii) is primarily and customarily used to serve a medical purpose;
568 (iii) generally is not useful to a person in the absence of illness or injury; and
569 (iv) is not worn in or on the body.
570 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
571 equipment described in Subsection (35)(a).
572 (c) Notwithstanding Subsection (35)(a), "durable medical equipment" does not include
573 mobility enhancing equipment.
574 (36) "Electronic" means:
575 (a) relating to technology; and
576 (b) having:
577 (i) electrical capabilities;
578 (ii) digital capabilities;
579 (iii) magnetic capabilities;
580 (iv) wireless capabilities;
581 (v) optical capabilities;
582 (vi) electromagnetic capabilities; or
583 (vii) capabilities similar to Subsections (36)(b)(i) through (vi).
584 (37) "Employee" is as defined in Section 59-10-401 .
585 (38) "Fixed guideway" means a public transit facility that uses and occupies:

586 (a) rail for the use of public transit; or
587 (b) a separate right-of-way for the use of public transit.
588 (39) "Fixed wireless service" means a telecommunications service that provides radio
589 communication between fixed points.
590 (40) (a) "Food and food ingredients" means substances:
591 (i) regardless of whether the substances are in:
592 (A) liquid form;
593 (B) concentrated form;
594 (C) solid form;
595 (D) frozen form;
596 (E) dried form; or
597 (F) dehydrated form; and
598 (ii) that are:
599 (A) sold for:
600 (I) ingestion by humans; or
601 (II) chewing by humans; and
602 (B) consumed for the substance's:
603 (I) taste; or
604 (II) nutritional value.
605 (b) "Food and food ingredients" includes an item described in Subsection (75)(b)(iii).
606 (c) "Food and food ingredients" does not include:
607 (i) an alcoholic beverage;
608 (ii) tobacco; or
609 (iii) prepared food.
610 (41) (a) "Fundraising sales" means sales:
611 (i) (A) made by a school; or
612 (B) made by a school student;
613 (ii) that are for the purpose of raising funds for the school to purchase equipment,
614 materials, or provide transportation; and
615 (iii) that are part of an officially sanctioned school activity.
616 (b) For purposes of Subsection (41)(a)(iii), "officially sanctioned school activity"

617 means a school activity:
618 (i) that is conducted in accordance with a formal policy adopted by the school or school
619 district governing the authorization and supervision of fundraising activities;
620 (ii) that does not directly or indirectly compensate an individual teacher or other
621 educational personnel by direct payment, commissions, or payment in kind; and
622 (iii) the net or gross revenues from which are deposited in a dedicated account
623 controlled by the school or school district.
624 (42) "Geothermal energy" means energy contained in heat that continuously flows
625 outward from the earth that is used as the sole source of energy to produce electricity.
626 (43) "Governing board of the agreement" means the governing board of the agreement
627 that is:
628 (a) authorized to administer the agreement; and
629 (b) established in accordance with the agreement.
630 (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
631 (i) the executive branch of the state, including all departments, institutions, boards,
632 divisions, bureaus, offices, commissions, and committees;
633 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
634 Office of the Court Administrator, and similar administrative units in the judicial branch;
635 (iii) the legislative branch of the state, including the House of Representatives, the
636 Senate, the Legislative Printing Office, the Office of Legislative Research and General
637 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
638 Analyst;
639 (iv) the National Guard;
640 (v) an independent entity as defined in Section 63E-1-102 ; or
641 (vi) a political subdivision as defined in Section 17B-1-102 .
642 (b) "Governmental entity" does not include the state systems of public and higher
643 education, including:
644 (i) a college campus of the Utah College of Applied Technology;
645 (ii) a school;
646 (iii) the State Board of Education;
647 (iv) the State Board of Regents; or

648 (v) a state institution of higher education as defined in Section 53B-3-102 .
649 (45) "Hydroelectric energy" means water used as the sole source of energy to produce
650 electricity.
651 (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
652 other fuels:
653 (a) in mining or extraction of minerals;
654 (b) in agricultural operations to produce an agricultural product up to the time of
655 harvest or placing the agricultural product into a storage facility, including:
656 (i) commercial greenhouses;
657 (ii) irrigation pumps;
658 (iii) farm machinery;
659 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
660 registered under Title 41, Chapter 1a, Part 2, Registration; and
661 (v) other farming activities;
662 (c) in manufacturing tangible personal property at an establishment described in SIC
663 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
664 Executive Office of the President, Office of Management and Budget;
665 (d) by a scrap recycler if:
666 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
667 one or more of the following items into prepared grades of processed materials for use in new
668 products:
669 (A) iron;
670 (B) steel;
671 (C) nonferrous metal;
672 (D) paper;
673 (E) glass;
674 (F) plastic;
675 (G) textile; or
676 (H) rubber; and
677 (ii) the new products under Subsection (46)(d)(i) would otherwise be made with
678 nonrecycled materials; or

679 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
680 cogeneration facility as defined in Section 54-2-1 .
681 (47) (a) Except as provided in Subsection (47)(b), "installation charge" means a charge
682 for installing:
683 (i) tangible personal property; or
684 (ii) a product transferred electronically.
685 (b) "Installation charge" does not include a charge for repairs or renovations of:
686 (i) tangible personal property; or
687 (ii) a product transferred electronically.
688 (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
689 personal property or a product transferred electronically for:
690 (i) (A) a fixed term; or
691 (B) an indeterminate term; and
692 (ii) consideration.
693 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
694 amount of consideration may be increased or decreased by reference to the amount realized
695 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
696 Code.
697 (c) "Lease" or "rental" does not include:
698 (i) a transfer of possession or control of property under a security agreement or
699 deferred payment plan that requires the transfer of title upon completion of the required
700 payments;
701 (ii) a transfer of possession or control of property under an agreement that requires the
702 transfer of title:
703 (A) upon completion of required payments; and
704 (B) if the payment of an option price does not exceed the greater of:
705 (I) $100; or
706 (II) 1% of the total required payments; or
707 (iii) providing tangible personal property along with an operator for a fixed period of
708 time or an indeterminate period of time if the operator is necessary for equipment to perform as
709 designed.

710 (d) For purposes of Subsection (48)(c)(iii), an operator is necessary for equipment to
711 perform as designed if the operator's duties exceed the:
712 (i) set-up of tangible personal property;
713 (ii) maintenance of tangible personal property; or
714 (iii) inspection of tangible personal property.
715 (49) "Load and leave" means delivery to a purchaser by use of a tangible storage media
716 if the tangible storage media is not physically transferred to the purchaser.
717 (50) "Local taxing jurisdiction" means a:
718 (a) county that is authorized to impose an agreement sales and use tax;
719 (b) city that is authorized to impose an agreement sales and use tax; or
720 (c) town that is authorized to impose an agreement sales and use tax.
721 (51) "Manufactured home" is as defined in Section 58-56-3 .
722 (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
723 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
724 Industrial Classification Manual of the federal Executive Office of the President, Office of
725 Management and Budget;
726 (b) a scrap recycler if:
727 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
728 one or more of the following items into prepared grades of processed materials for use in new
729 products:
730 (A) iron;
731 (B) steel;
732 (C) nonferrous metal;
733 (D) paper;
734 (E) glass;
735 (F) plastic;
736 (G) textile; or
737 (H) rubber; and
738 (ii) the new products under Subsection (52)(b)(i) would otherwise be made with
739 nonrecycled materials; or
740 (c) a cogeneration facility as defined in Section 54-2-1 .

741 (53) "Member of the immediate family of the producer" means a person who is related
742 to a producer described in Subsection 59-12-104 (20)(a) as a:
743 (a) child or stepchild, regardless of whether the child or stepchild is:
744 (i) an adopted child or adopted stepchild; or
745 (ii) a foster child or foster stepchild;
746 (b) grandchild or stepgrandchild;
747 (c) grandparent or stepgrandparent;
748 (d) nephew or stepnephew;
749 (e) niece or stepniece;
750 (f) parent or stepparent;
751 (g) sibling or stepsibling;
752 (h) spouse;
753 (i) person who is the spouse of a person described in Subsections (53)(a) through (g);
754 or
755 (j) person similar to a person described in Subsections (53)(a) through (i) as
756 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
757 Administrative Rulemaking Act.
758 (54) "Mobile home" is as defined in Section 58-56-3 .
759 (55) "Mobile telecommunications service" is as defined in the Mobile
760 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
761 (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
762 the technology used, if:
763 (i) the origination point of the conveyance, routing, or transmission is not fixed;
764 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
765 (iii) the origination point described in Subsection (56)(a)(i) and the termination point
766 described in Subsection (56)(a)(ii) are not fixed.
767 (b) "Mobile wireless service" includes a telecommunications service that is provided
768 by a commercial mobile radio service provider.
769 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
770 commission may by rule define "commercial mobile radio service provider."
771 (57) (a) Except as provided in Subsection (57)(c), "mobility enhancing equipment"

772 means equipment that is:
773 (i) primarily and customarily used to provide or increase the ability to move from one
774 place to another;
775 (ii) appropriate for use in a:
776 (A) home; or
777 (B) motor vehicle; and
778 (iii) not generally used by persons with normal mobility.
779 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
780 the equipment described in Subsection (57)(a).
781 (c) Notwithstanding Subsection (57)(a), "mobility enhancing equipment" does not
782 include:
783 (i) a motor vehicle;
784 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
785 vehicle manufacturer;
786 (iii) durable medical equipment; or
787 (iv) a prosthetic device.
788 (58) "Model 1 seller" means a seller that has selected a certified service provider as the
789 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
790 use taxes other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
791 own purchases.
792 (59) "Model 2 seller" means a seller that:
793 (a) except as provided in Subsection (59)(b), has selected a certified automated system
794 to perform the seller's sales tax functions for agreement sales and use taxes; and
795 (b) notwithstanding Subsection (59)(a), retains responsibility for remitting all of the
796 sales tax:
797 (i) collected by the seller; and
798 (ii) to the appropriate local taxing jurisdiction.
799 (60) (a) Subject to Subsection (60)(b), "model 3 seller" means a seller that has:
800 (i) sales in at least five states that are members of the agreement;
801 (ii) total annual sales revenues of at least $500,000,000;
802 (iii) a proprietary system that calculates the amount of tax:

803 (A) for an agreement sales and use tax; and
804 (B) due to each local taxing jurisdiction; and
805 (iv) entered into a performance agreement with the governing board of the agreement.
806 (b) For purposes of Subsection (60)(a), "model 3 seller" includes an affiliated group of
807 sellers using the same proprietary system.
808 (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
809 (62) "Motor vehicle" is as defined in Section 41-1a-102 .
810 (63) "Oil shale" means a group of fine black to dark brown shales containing
811 bituminous material that yields petroleum upon distillation.
812 (64) (a) "Other fuels" means products that burn independently to produce heat or
813 energy.
814 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
815 personal property.
816 (65) (a) "Paging service" means a telecommunications service that provides
817 transmission of a coded radio signal for the purpose of activating a specific pager.
818 (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
819 includes a transmission by message or sound.
820 (66) "Pawnbroker" is as defined in Section 13-32a-102 .
821 (67) "Pawn transaction" is as defined in Section 13-32a-102 .
822 (68) (a) "Permanently attached to real property" means that for tangible personal
823 property attached to real property:
824 (i) the attachment of the tangible personal property to the real property:
825 (A) is essential to the use of the tangible personal property; and
826 (B) suggests that the tangible personal property will remain attached to the real
827 property in the same place over the useful life of the tangible personal property; or
828 (ii) if the tangible personal property is detached from the real property, the detachment
829 would:
830 (A) cause substantial damage to the tangible personal property; or
831 (B) require substantial alteration or repair of the real property to which the tangible
832 personal property is attached.
833 (b) "Permanently attached to real property" includes:

834 (i) the attachment of an accessory to the tangible personal property if the accessory is:
835 (A) essential to the operation of the tangible personal property; and
836 (B) attached only to facilitate the operation of the tangible personal property;
837 (ii) a temporary detachment of tangible personal property from real property for a
838 repair or renovation if the repair or renovation is performed where the tangible personal
839 property and real property are located; or
840 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
841 Subsection (68)(c)(iii) or (iv).
842 (c) "Permanently attached to real property" does not include:
843 (i) the attachment of portable or movable tangible personal property to real property if
844 that portable or movable tangible personal property is attached to real property only for:
845 (A) convenience;
846 (B) stability; or
847 (C) for an obvious temporary purpose;
848 (ii) the detachment of tangible personal property from real property except for the
849 detachment described in Subsection (68)(b)(ii);
850 (iii) an attachment of the following tangible personal property to real property if the
851 attachment to real property is only through a line that supplies water, electricity, gas,
852 telecommunications, cable, or supplies a similar item as determined by the commission by rule
853 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
854 (A) a computer;
855 (B) a telephone;
856 (C) a television; or
857 (D) tangible personal property similar to Subsections (68)(c)(iii)(A) through (C) as
858 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
859 Administrative Rulemaking Act; or
860 (iv) an item listed in Subsection (108)(c).
861 (69) "Person" includes any individual, firm, partnership, joint venture, association,
862 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
863 municipality, district, or other local governmental entity of the state, or any group or
864 combination acting as a unit.

865 (70) "Place of primary use":
866 (a) for telecommunications service other than mobile telecommunications service,
867 means the street address representative of where the customer's use of the telecommunications
868 service primarily occurs, which shall be:
869 (i) the residential street address of the customer; or
870 (ii) the primary business street address of the customer; or
871 (b) for mobile telecommunications service, is as defined in the Mobile
872 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
873 (71) (a) "Postpaid calling service" means a telecommunications service a person
874 obtains by making a payment on a call-by-call basis:
875 (i) through the use of a:
876 (A) bank card;
877 (B) credit card;
878 (C) debit card; or
879 (D) travel card; or
880 (ii) by a charge made to a telephone number that is not associated with the origination
881 or termination of the telecommunications service.
882 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
883 service, that would be a prepaid wireless calling service if the service were exclusively a
884 telecommunications service.
885 (72) "Postproduction" means an activity related to the finishing or duplication of a
886 medium described in Subsection 59-12-104 (54)(a).
887 (73) "Prepaid calling service" means a telecommunications service:
888 (a) that allows a purchaser access to telecommunications service that is exclusively
889 telecommunications service;
890 (b) that:
891 (i) is paid for in advance; and
892 (ii) enables the origination of a call using an:
893 (A) access number; or
894 (B) authorization code;
895 (c) that is dialed:

896 (i) manually; or
897 (ii) electronically; and
898 (d) sold in predetermined units or dollars that decline:
899 (i) by a known amount; and
900 (ii) with use.
901 (74) "Prepaid wireless calling service" means a telecommunications service:
902 (a) that provides the right to utilize:
903 (i) mobile wireless service; and
904 (ii) other service that is not a telecommunications service, including:
905 (A) the download of a product transferred electronically;
906 (B) a content service; or
907 (C) an ancillary service;
908 (b) that:
909 (i) is paid for in advance; and
910 (ii) enables the origination of a call using an:
911 (A) access number; or
912 (B) authorization code;
913 (c) that is dialed:
914 (i) manually; or
915 (ii) electronically; and
916 (d) sold in predetermined units or dollars that decline:
917 (i) by a known amount; and
918 (ii) with use.
919 (75) (a) "Prepared food" means:
920 (i) food:
921 (A) sold in a heated state; or
922 (B) heated by a seller;
923 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
924 item; or
925 (iii) except as provided in Subsection (75)(c), food sold with an eating utensil provided
926 by the seller, including a:

927 (A) plate;
928 (B) knife;
929 (C) fork;
930 (D) spoon;
931 (E) glass;
932 (F) cup;
933 (G) napkin; or
934 (H) straw.
935 (b) "Prepared food" does not include:
936 (i) food that a seller only:
937 (A) cuts;
938 (B) repackages; or
939 (C) pasteurizes; or
940 (ii) (A) the following:
941 (I) raw egg;
942 (II) raw fish;
943 (III) raw meat;
944 (IV) raw poultry; or
945 (V) a food containing an item described in Subsections (75)(b)(ii)(A)(I) through (IV);
946 and
947 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
948 Food and Drug Administration's Food Code that a consumer cook the items described in
949 Subsection (75)(b)(ii)(A) to prevent food borne illness; or
950 (iii) the following if sold without eating utensils provided by the seller:
951 (A) food and food ingredients sold by a seller if the seller's proper primary
952 classification under the 2002 North American Industry Classification System of the federal
953 Executive Office of the President, Office of Management and Budget, is manufacturing in
954 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
955 Manufacturing;
956 (B) food and food ingredients sold in an unheated state:
957 (I) by weight or volume; and

958 (II) as a single item; or
959 (C) a bakery item, including:
960 (I) a bagel;
961 (II) a bar;
962 (III) a biscuit;
963 (IV) bread;
964 (V) a bun;
965 (VI) a cake;
966 (VII) a cookie;
967 (VIII) a croissant;
968 (IX) a danish;
969 (X) a donut;
970 (XI) a muffin;
971 (XII) a pastry;
972 (XIII) a pie;
973 (XIV) a roll;
974 (XV) a tart;
975 (XVI) a torte; or
976 (XVII) a tortilla.
977 (c) Notwithstanding Subsection (75)(a)(iii), an eating utensil provided by the seller
978 does not include the following used to transport the food:
979 (i) a container; or
980 (ii) packaging.
981 (76) "Prescription" means an order, formula, or recipe that is issued:
982 (a) (i) orally;
983 (ii) in writing;
984 (iii) electronically; or
985 (iv) by any other manner of transmission; and
986 (b) by a licensed practitioner authorized by the laws of a state.
987 (77) (a) Except as provided in Subsection (77)(b)(ii) or (iii), "prewritten computer
988 software" means computer software that is not designed and developed:

989 (i) by the author or other creator of the computer software; and
990 (ii) to the specifications of a specific purchaser.
991 (b) "Prewritten computer software" includes:
992 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
993 software is not designed and developed:
994 (A) by the author or other creator of the computer software; and
995 (B) to the specifications of a specific purchaser;
996 (ii) notwithstanding Subsection (77)(a), computer software designed and developed by
997 the author or other creator of the computer software to the specifications of a specific purchaser
998 if the computer software is sold to a person other than the purchaser; or
999 (iii) notwithstanding Subsection (77)(a) and except as provided in Subsection (77)(c),
1000 prewritten computer software or a prewritten portion of prewritten computer software:
1001 (A) that is modified or enhanced to any degree; and
1002 (B) if the modification or enhancement described in Subsection (77)(b)(iii)(A) is
1003 designed and developed to the specifications of a specific purchaser.
1004 (c) Notwithstanding Subsection (77)(b)(iii), "prewritten computer software" does not
1005 include a modification or enhancement described in Subsection (77)(b)(iii) if the charges for
1006 the modification or enhancement are:
1007 (i) reasonable; and
1008 (ii) separately stated on the invoice or other statement of price provided to the
1009 purchaser.
1010 (78) (a) "Private communication service" means a telecommunications service:
1011 (i) that entitles a customer to exclusive or priority use of one or more communications
1012 channels between or among termination points; and
1013 (ii) regardless of the manner in which the one or more communications channels are
1014 connected.
1015 (b) "Private communications service" includes the following provided in connection
1016 with the use of one or more communications channels:
1017 (i) an extension line;
1018 (ii) a station;
1019 (iii) switching capacity; or

1020 (iv) another associated service that is provided in connection with the use of one or
1021 more communications channels as defined in Section 59-12-215 .
1022 (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
1023 (i) artificially replace a missing portion of the body;
1024 (ii) prevent or correct a physical deformity or physical malfunction; or
1025 (iii) support a weak or deformed portion of the body.
1026 (b) "Prosthetic device" includes:
1027 (i) parts used in the repairs or renovation of a prosthetic device;
1028 (ii) replacement parts for a prosthetic device;
1029 (iii) a dental prosthesis; or
1030 (iv) a hearing aid.
1031 (c) "Prosthetic device" does not include:
1032 (i) corrective eyeglasses; or
1033 (ii) contact lenses.
1034 (80) (a) "Protective equipment" means an item:
1035 (i) for human wear; and
1036 (ii) that is:
1037 (A) designed as protection:
1038 (I) to the wearer against injury or disease; or
1039 (II) against damage or injury of other persons or property; and
1040 (B) not suitable for general use.
1041 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1042 commission shall make rules:
1043 (i) listing the items that constitute "protective equipment"; and
1044 (ii) that are consistent with the list of items that constitute "protective equipment"
1045 under the agreement.
1046 (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
1047 printed matter, other than a photocopy:
1048 (i) regardless of:
1049 (A) characteristics;
1050 (B) copyright;

1051 (C) form;
1052 (D) format;
1053 (E) method of reproduction; or
1054 (F) source; and
1055 (ii) made available in printed or electronic format.
1056 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1057 commission may by rule define the term "photocopy."
1058 (82) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1059 (i) valued in money; and
1060 (ii) for which tangible personal property, a product transferred electronically, or
1061 services are:
1062 (A) sold;
1063 (B) leased; or
1064 (C) rented.
1065 (b) "Purchase price" and "sales price" include:
1066 (i) the seller's cost of the tangible personal property, a product transferred
1067 electronically, or services sold;
1068 (ii) expenses of the seller, including:
1069 (A) the cost of materials used;
1070 (B) a labor cost;
1071 (C) a service cost;
1072 (D) interest;
1073 (E) a loss;
1074 (F) the cost of transportation to the seller; or
1075 (G) a tax imposed on the seller;
1076 (iii) a charge by the seller for any service necessary to complete the sale; or
1077 (iv) consideration a seller receives from a person other than the purchaser if:
1078 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1079 and
1080 (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
1081 price reduction or discount on the sale;

1082 (B) the seller has an obligation to pass the price reduction or discount through to the
1083 purchaser;
1084 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1085 the seller at the time of the sale to the purchaser; and
1086 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1087 seller to claim a price reduction or discount; and
1088 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1089 coupon, or other documentation with the understanding that the person other than the seller
1090 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1091 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1092 organization allowed a price reduction or discount, except that a preferred customer card that is
1093 available to any patron of a seller does not constitute membership in a group or organization
1094 allowed a price reduction or discount; or
1095 (III) the price reduction or discount is identified as a third party price reduction or
1096 discount on the:
1097 (Aa) invoice the purchaser receives; or
1098 (Bb) certificate, coupon, or other documentation the purchaser presents.
1099 (c) "Purchase price" and "sales price" do not include:
1100 (i) a discount:
1101 (A) in a form including:
1102 (I) cash;
1103 (II) term; or
1104 (III) coupon;
1105 (B) that is allowed by a seller;
1106 (C) taken by a purchaser on a sale; and
1107 (D) that is not reimbursed by a third party; or
1108 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1109 provided to the purchaser:
1110 (A) the following from credit extended on the sale of tangible personal property or
1111 services:
1112 (I) a carrying charge;

1113 (II) a financing charge; or
1114 (III) an interest charge;
1115 (B) a delivery charge;
1116 (C) an installation charge;
1117 (D) a manufacturer rebate on a motor vehicle; or
1118 (E) a tax or fee legally imposed directly on the consumer.
1119 (83) "Purchaser" means a person to whom:
1120 (a) a sale of tangible personal property is made;
1121 (b) a product is transferred electronically; or
1122 (c) a service is furnished.
1123 (84) "Regularly rented" means:
1124 (a) rented to a guest for value three or more times during a calendar year; or
1125 (b) advertised or held out to the public as a place that is regularly rented to guests for
1126 value.
1127 (85) "Renewable energy" means:
1128 (a) biomass energy;
1129 (b) hydroelectric energy;
1130 (c) geothermal energy;
1131 (d) solar energy; or
1132 (e) wind energy.
1133 (86) (a) "Renewable energy production facility" means a facility that:
1134 (i) uses renewable energy to produce electricity; and
1135 (ii) has a production capacity of 20 kilowatts or greater.
1136 (b) A facility is a renewable energy production facility regardless of whether the
1137 facility is:
1138 (i) connected to an electric grid; or
1139 (ii) located on the premises of an electricity consumer.
1140 (87) "Rental" is as defined in Subsection (48).
1141 (88) "Repairs or renovations of tangible personal property" means:
1142 (a) a repair or renovation of tangible personal property that is not permanently attached
1143 to real property; or

1144 (b) attaching tangible personal property or a product that is transferred electronically to
1145 other tangible personal property if the other tangible personal property to which the tangible
1146 personal property or product that is transferred electronically is attached is not permanently
1147 attached to real property.
1148 (89) "Research and development" means the process of inquiry or experimentation
1149 aimed at the discovery of facts, devices, technologies, or applications and the process of
1150 preparing those devices, technologies, or applications for marketing.
1151 (90) (a) "Residential telecommunications services" means a telecommunications
1152 service or an ancillary service that is provided to an individual for personal use:
1153 (i) at a residential address; or
1154 (ii) at an institution, including a nursing home or a school, if the telecommunications
1155 service or ancillary service is provided to and paid for by the individual residing at the
1156 institution rather than the institution.
1157 (b) For purposes of Subsection (90)(a), a residential address includes an:
1158 (i) apartment; or
1159 (ii) other individual dwelling unit.
1160 (91) "Residential use" means the use in or around a home, apartment building, sleeping
1161 quarters, and similar facilities or accommodations.
1162 (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1163 than:
1164 (a) resale;
1165 (b) sublease; or
1166 (c) subrent.
1167 (93) (a) "Retailer" means any person engaged in a regularly organized business in
1168 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
1169 who is selling to the user or consumer and not for resale.
1170 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1171 engaged in the business of selling to users or consumers within the state.
1172 (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1173 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1174 Subsection 59-12-103 (1), for consideration.

1175 (b) "Sale" includes:
1176 (i) installment and credit sales;
1177 (ii) any closed transaction constituting a sale;
1178 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1179 chapter;
1180 (iv) any transaction if the possession of property is transferred but the seller retains the
1181 title as security for the payment of the price; and
1182 (v) any transaction under which right to possession, operation, or use of any article of
1183 tangible personal property is granted under a lease or contract and the transfer of possession
1184 would be taxable if an outright sale were made.
1185 (95) "Sale at retail" is as defined in Subsection (92).
1186 (96) "Sale-leaseback transaction" means a transaction by which title to tangible
1187 personal property or a product transferred electronically that is subject to a tax under this
1188 chapter is transferred:
1189 (a) by a purchaser-lessee;
1190 (b) to a lessor;
1191 (c) for consideration; and
1192 (d) if:
1193 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1194 of the tangible personal property or product transferred electronically;
1195 (ii) the sale of the tangible personal property or product transferred electronically to the
1196 lessor is intended as a form of financing:
1197 (A) for the tangible personal property or product transferred electronically; and
1198 (B) to the purchaser-lessee; and
1199 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1200 is required to:
1201 (A) capitalize the tangible personal property or product transferred electronically for
1202 financial reporting purposes; and
1203 (B) account for the lease payments as payments made under a financing arrangement.
1204 (97) "Sales price" is as defined in Subsection (82).
1205 (98) (a) "Sales relating to schools" means the following sales by, amounts paid to, or

1206 amounts charged by a school:
1207 (i) sales that are directly related to the school's educational functions or activities
1208 including:
1209 (A) the sale of:
1210 (I) textbooks;
1211 (II) textbook fees;
1212 (III) laboratory fees;
1213 (IV) laboratory supplies; or
1214 (V) safety equipment;
1215 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1216 that:
1217 (I) a student is specifically required to wear as a condition of participation in a
1218 school-related event or school-related activity; and
1219 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1220 place of ordinary clothing;
1221 (C) sales of the following if the net or gross revenues generated by the sales are
1222 deposited into a school district fund or school fund dedicated to school meals:
1223 (I) food and food ingredients; or
1224 (II) prepared food; or
1225 (D) transportation charges for official school activities; or
1226 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1227 event or school-related activity.
1228 (b) "Sales relating to schools" does not include:
1229 (i) bookstore sales of items that are not educational materials or supplies;
1230 (ii) except as provided in Subsection (98)(a)(i)(B):
1231 (A) clothing;
1232 (B) clothing accessories or equipment;
1233 (C) protective equipment; or
1234 (D) sports or recreational equipment; or
1235 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1236 event or school-related activity if the amounts paid or charged are passed through to a person:

1237 (A) other than a:
1238 (I) school;
1239 (II) nonprofit organization authorized by a school board or a governing body of a
1240 private school to organize and direct a competitive secondary school activity; or
1241 (III) nonprofit association authorized by a school board or a governing body of a
1242 private school to organize and direct a competitive secondary school activity; and
1243 (B) that is required to collect sales and use taxes under this chapter.
1244 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1245 commission may make rules defining the term "passed through."
1246 (99) For purposes of this section and Section 59-12-104 , "school":
1247 (a) means:
1248 (i) an elementary school or a secondary school that:
1249 (A) is a:
1250 (I) public school; or
1251 (II) private school; and
1252 (B) provides instruction for one or more grades kindergarten through 12; or
1253 (ii) a public school district; and
1254 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1255 (100) "Seller" means a person that makes a sale, lease, or rental of:
1256 (a) tangible personal property;
1257 (b) a product transferred electronically; or
1258 (c) a service.
1259 (101) (a) "Semiconductor fabricating, processing, research, or development materials"
1260 means tangible personal property or a product transferred electronically if the tangible personal
1261 property or product transferred electronically is:
1262 (i) used primarily in the process of:
1263 (A) (I) manufacturing a semiconductor;
1264 (II) fabricating a semiconductor; or
1265 (III) research or development of a:
1266 (Aa) semiconductor; or
1267 (Bb) semiconductor manufacturing process; or

1268 (B) maintaining an environment suitable for a semiconductor; or
1269 (ii) consumed primarily in the process of:
1270 (A) (I) manufacturing a semiconductor;
1271 (II) fabricating a semiconductor; or
1272 (III) research or development of a:
1273 (Aa) semiconductor; or
1274 (Bb) semiconductor manufacturing process; or
1275 (B) maintaining an environment suitable for a semiconductor.
1276 (b) "Semiconductor fabricating, processing, research, or development materials"
1277 includes:
1278 (i) parts used in the repairs or renovations of tangible personal property or a product
1279 transferred electronically described in Subsection (101)(a); or
1280 (ii) a chemical, catalyst, or other material used to:
1281 (A) produce or induce in a semiconductor a:
1282 (I) chemical change; or
1283 (II) physical change;
1284 (B) remove impurities from a semiconductor; or
1285 (C) improve the marketable condition of a semiconductor.
1286 (102) "Senior citizen center" means a facility having the primary purpose of providing
1287 services to the aged as defined in Section 62A-3-101 .
1288 (103) "Simplified electronic return" means the electronic return:
1289 (a) described in Section 318(C) of the agreement; and
1290 (b) approved by the governing board of the agreement.
1291 (104) "Solar energy" means the sun used as the sole source of energy for producing
1292 electricity.
1293 (105) (a) "Sports or recreational equipment" means an item:
1294 (i) designed for human use; and
1295 (ii) that is:
1296 (A) worn in conjunction with:
1297 (I) an athletic activity; or
1298 (II) a recreational activity; and

1299 (B) not suitable for general use.
1300 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1301 commission shall make rules:
1302 (i) listing the items that constitute "sports or recreational equipment"; and
1303 (ii) that are consistent with the list of items that constitute "sports or recreational
1304 equipment" under the agreement.
1305 (106) "State" means the state of Utah, its departments, and agencies.
1306 (107) "Storage" means any keeping or retention of tangible personal property or any
1307 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
1308 sale in the regular course of business.
1309 (108) (a) Except as provided in Subsection (108) (d) or (e), "tangible personal
1310 property" means personal property that:
1311 (i) may be:
1312 (A) seen;
1313 (B) weighed;
1314 (C) measured;
1315 (D) felt; or
1316 (E) touched; or
1317 (ii) is in any manner perceptible to the senses.
1318 (b) "Tangible personal property" includes:
1319 (i) electricity;
1320 (ii) water;
1321 (iii) gas;
1322 (iv) steam; or
1323 (v) prewritten computer software.
1324 (c) "Tangible personal property" includes the following regardless of whether the item
1325 is attached to real property:
1326 (i) a dishwasher;
1327 (ii) a dryer;
1328 (iii) a freezer;
1329 (iv) a microwave;

1330 (v) a refrigerator;
1331 (vi) a stove;
1332 (vii) a washer; or
1333 (viii) an item similar to Subsections (108)(c)(i) through (vii) as determined by the
1334 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1335 Rulemaking Act.
1336 (d) "Tangible personal property" does not include a product that is transferred
1337 electronically.
1338 (e) "Tangible personal property" does not include the following if attached to real
1339 property, regardless of whether the attachment to real property is only through a line that
1340 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1341 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1342 Rulemaking Act:
1343 (i) a hot water heater;
1344 (ii) a water filtration system; or
1345 (iii) a water softener system.
1346 (109) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1347 and require further processing other than mechanical blending before becoming finished
1348 petroleum products.
1349 (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1350 software" means an item listed in Subsection (110)(b) if that item is purchased or leased
1351 primarily to enable or facilitate one or more of the following to function:
1352 (i) telecommunications switching or routing equipment, machinery, or software; or
1353 (ii) telecommunications transmission equipment, machinery, or software.
1354 (b) The following apply to Subsection (110)(a):
1355 (i) a pole;
1356 (ii) software;
1357 (iii) a supplementary power supply;
1358 (iv) temperature or environmental equipment or machinery;
1359 (v) test equipment;
1360 (vi) a tower; or

1361 (vii) equipment, machinery, or software that functions similarly to an item listed in
1362 Subsections (110)(b)(i) through (vi) as determined by the commission by rule made in
1363 accordance with Subsection (110)(c).
1364 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1365 commission may by rule define what constitutes equipment, machinery, or software that
1366 functions similarly to an item listed in Subsections (110)(b)(i) through (vi).
1367 (111) "Telecommunications equipment, machinery, or software required for 911
1368 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1369 Sec. 20.18.
1370 (112) "Telecommunications maintenance or repair equipment, machinery, or software"
1371 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1372 one or more of the following, regardless of whether the equipment, machinery, or software is
1373 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1374 following:
1375 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1376 (b) telecommunications switching or routing equipment, machinery, or software; or
1377 (c) telecommunications transmission equipment, machinery, or software.
1378 (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
1379 transmission of audio, data, video, voice, or any other information or signal to a point, or
1380 among or between points.
1381 (b) "Telecommunications service" includes:
1382 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1383 processing application is used to act:
1384 (A) on the code, form, or protocol of the content;
1385 (B) for the purpose of electronic conveyance, routing, or transmission; and
1386 (C) regardless of whether the service:
1387 (I) is referred to as voice over Internet protocol service; or
1388 (II) is classified by the Federal Communications Commission as enhanced or value
1389 added;
1390 (ii) an 800 service;
1391 (iii) a 900 service;

1392 (iv) a fixed wireless service;
1393 (v) a mobile wireless service;
1394 (vi) a postpaid calling service;
1395 (vii) a prepaid calling service;
1396 (viii) a prepaid wireless calling service; or
1397 (ix) a private communications service.
1398 (c) "Telecommunications service" does not include:
1399 (i) advertising, including directory advertising;
1400 (ii) an ancillary service;
1401 (iii) a billing and collection service provided to a third party;
1402 (iv) a data processing and information service if:
1403 (A) the data processing and information service allows data to be:
1404 (I) (Aa) acquired;
1405 (Bb) generated;
1406 (Cc) processed;
1407 (Dd) retrieved; or
1408 (Ee) stored; and
1409 (II) delivered by an electronic transmission to a purchaser; and
1410 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1411 or information;
1412 (v) installation or maintenance of the following on a customer's premises:
1413 (A) equipment; or
1414 (B) wiring;
1415 (vi) Internet access service;
1416 (vii) a paging service;
1417 (viii) a product transferred electronically, including:
1418 (A) music;
1419 (B) reading material;
1420 (C) a ring tone;
1421 (D) software; or
1422 (E) video;

1423 (ix) a radio and television audio and video programming service:
1424 (A) regardless of the medium; and
1425 (B) including:
1426 (I) furnishing conveyance, routing, or transmission of a television audio and video
1427 programming service by a programming service provider;
1428 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1429 (III) audio and video programming services delivered by a commercial mobile radio
1430 service provider as defined in 47 C.F.R. Sec. 20.3;
1431 (x) a value-added nonvoice data service; or
1432 (xi) tangible personal property.
1433 (114) (a) "Telecommunications service provider" means a person that:
1434 (i) owns, controls, operates, or manages a telecommunications service; and
1435 (ii) engages in an activity described in Subsection (114)(a)(i) for the shared use with or
1436 resale to any person of the telecommunications service.
1437 (b) A person described in Subsection (114)(a) is a telecommunications service provider
1438 whether or not the Public Service Commission of Utah regulates:
1439 (i) that person; or
1440 (ii) the telecommunications service that the person owns, controls, operates, or
1441 manages.
1442 (115) (a) "Telecommunications switching or routing equipment, machinery, or
1443 software" means an item listed in Subsection (115)(b) if that item is purchased or leased
1444 primarily for switching or routing:
1445 (i) an ancillary service;
1446 (ii) data communications;
1447 (iii) voice communications; or
1448 (iv) telecommunications service.
1449 (b) The following apply to Subsection (115)(a):
1450 (i) a bridge;
1451 (ii) a computer;
1452 (iii) a cross connect;
1453 (iv) a modem;

1454 (v) a multiplexer;
1455 (vi) plug in circuitry;
1456 (vii) a router;
1457 (viii) software;
1458 (ix) a switch; or
1459 (x) equipment, machinery, or software that functions similarly to an item listed in
1460 Subsections (115)(b)(i) through (ix) as determined by the commission by rule made in
1461 accordance with Subsection (115)(c).
1462 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1463 commission may by rule define what constitutes equipment, machinery, or software that
1464 functions similarly to an item listed in Subsections (115)(b)(i) through (ix).
1465 (116) (a) "Telecommunications transmission equipment, machinery, or software"
1466 means an item listed in Subsection (116)(b) if that item is purchased or leased primarily for
1467 sending, receiving, or transporting:
1468 (i) an ancillary service;
1469 (ii) data communications;
1470 (iii) voice communications; or
1471 (iv) telecommunications service.
1472 (b) The following apply to Subsection (116)(a):
1473 (i) an amplifier;
1474 (ii) a cable;
1475 (iii) a closure;
1476 (iv) a conduit;
1477 (v) a controller;
1478 (vi) a duplexer;
1479 (vii) a filter;
1480 (viii) an input device;
1481 (ix) an input/output device;
1482 (x) an insulator;
1483 (xi) microwave machinery or equipment;
1484 (xii) an oscillator;

1485 (xiii) an output device;
1486 (xiv) a pedestal;
1487 (xv) a power converter;
1488 (xvi) a power supply;
1489 (xvii) a radio channel;
1490 (xviii) a radio receiver;
1491 (xix) a radio transmitter;
1492 (xx) a repeater;
1493 (xxi) software;
1494 (xxii) a terminal;
1495 (xxiii) a timing unit;
1496 (xxiv) a transformer;
1497 (xxv) a wire; or
1498 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1499 Subsections (116)(b)(i) through (xxv) as determined by the commission by rule made in
1500 accordance with Subsection (116)(c).
1501 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1502 commission may by rule define what constitutes equipment, machinery, or software that
1503 functions similarly to an item listed in Subsections (116)(b)(i) through (xxv).
1504 (117) "Tobacco" means:
1505 (a) a cigarette;
1506 (b) a cigar;
1507 (c) chewing tobacco;
1508 (d) pipe tobacco; or
1509 (e) any other item that contains tobacco.
1510 (118) "Unassisted amusement device" means an amusement device, skill device, or
1511 ride device that is started and stopped by the purchaser or renter of the right to use or operate
1512 the amusement device, skill device, or ride device.
1513 (119) (a) "Use" means the exercise of any right or power over tangible personal
1514 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
1515 incident to the ownership or the leasing of that tangible personal property, product transferred

1516 electronically, or service.
1517 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1518 property, a product transferred electronically, or a service in the regular course of business and
1519 held for resale.
1520 (120) "Value-added nonvoice data service" means a service:
1521 (a) that otherwise meets the definition of a telecommunications service except that a
1522 computer processing application is used to act primarily for a purpose other than conveyance,
1523 routing, or transmission; and
1524 (b) with respect to which a computer processing application is used to act on data or
1525 information:
1526 (i) code;
1527 (ii) content;
1528 (iii) form; or
1529 (iv) protocol.
1530 (121) (a) Subject to Subsection (121)(b), "vehicle" means the following that are
1531 required to be titled, registered, or titled and registered:
1532 (i) an aircraft as defined in Section 72-10-102 ;
1533 (ii) a vehicle as defined in Section 41-1a-102 ;
1534 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1535 (iv) a vessel as defined in Section 41-1a-102 .
1536 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1537 (i) a vehicle described in Subsection (121)(a); or
1538 (ii) (A) a locomotive;
1539 (B) a freight car;
1540 (C) railroad work equipment; or
1541 (D) other railroad rolling stock.
1542 (122) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1543 exchanging a vehicle as defined in Subsection (121).
1544 (123) (a) "Vertical service" means an ancillary service that:
1545 (i) is offered in connection with one or more telecommunications services; and
1546 (ii) offers an advanced calling feature that allows a customer to:

1547 (A) identify a caller; and
1548 (B) manage multiple calls and call connections.
1549 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1550 conference bridging service.
1551 (124) (a) "Voice mail service" means an ancillary service that enables a customer to
1552 receive, send, or store a recorded message.
1553 (b) "Voice mail service" does not include a vertical service that a customer is required
1554 to have in order to utilize a voice mail service.
1555 (125) (a) Except as provided in Subsection (125)(b), "waste energy facility" means a
1556 facility that generates electricity:
1557 (i) using as the primary source of energy waste materials that would be placed in a
1558 landfill or refuse pit if it were not used to generate electricity, including:
1559 (A) tires;
1560 (B) waste coal; or
1561 (C) oil shale; and
1562 (ii) in amounts greater than actually required for the operation of the facility.
1563 (b) "Waste energy facility" does not include a facility that incinerates:
1564 (i) municipal solid waste;
1565 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1566 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1567 (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
1568 (127) "Wind energy" means wind used as the sole source of energy to produce
1569 electricity.
1570 (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1571 location by the United States Postal Service.
1572 Section 5. Section 59-12-211 is amended to read:
1573 59-12-211. Definitions -- Location of certain transactions -- Reports to
1574 commission -- Direct payment provision for a seller making certain purchases --
1575 Exceptions.
1576 (1) As used in this section:
1577 (a) (i) "Receipt" and "receive" mean:

1578 (A) taking possession of tangible personal property;
1579 (B) making first use of a service; or
1580 (C) for a product transferred electronically, the earlier of:
1581 (I) taking possession of the product transferred electronically; or
1582 (II) making first use of the product transferred electronically.
1583 (ii) "Receipt" and "receive" do not include possession by a shipping company on behalf
1584 of a purchaser.
1585 (b) "Transportation equipment" means:
1586 (i) a locomotive or rail car that is used to carry a person or property in interstate
1587 commerce;
1588 (ii) a truck or truck-tractor:
1589 (A) with a gross vehicle weight rating of 10,001 pounds or more;
1590 (B) registered under Section 41-1a-301 ; and
1591 (C) operated under the authority of a carrier authorized and certificated:
1592 (I) by the United States Department of Transportation or another federal authority; and
1593 (II) to engage in carrying a person or property in interstate commerce;
1594 (iii) a trailer, semitrailer, or passenger bus that is:
1595 (A) registered under Section 41-1a-301 ; and
1596 (B) operated under the authority of a carrier authorized and certificated:
1597 (I) by the United States Department of Transportation or another federal authority; and
1598 (II) to engage in carrying a person or property in interstate commerce;
1599 (iv) an aircraft that is operated by an air carrier authorized and certificated:
1600 (A) by the United States Department of Transportation or another federal or foreign
1601 authority; and
1602 (B) to engage in carrying a person or property in interstate commerce; or
1603 (v) a container designed for use on, or a component part attached or secured on, an
1604 item of equipment listed in[,] Subsections (1)(b)(i) through (iv).
1605 (2) Except as provided in Subsections (8) and (13), if tangible personal property, a
1606 product transferred electronically, or a service that is subject to taxation under this chapter is
1607 received by a purchaser at a business location of a seller, the location of the transaction is the
1608 business location of the seller.

1609 (3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
1610 and (13), if tangible personal property, a product transferred electronically, or a service that is
1611 subject to taxation under this chapter is not received by a purchaser at a business location of a
1612 seller, the location of the transaction is the location where the purchaser takes receipt of the
1613 tangible personal property or service.
1614 (4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),