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S.B. 270


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Senate 3rd Reading Amendments 2-28-2011 rd/rlr
This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Feb 25, 2011 at 3:33 PM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Feb 28, 2011 at 11:10 AM by rday. -->              1
    
MODIFICATIONS TO SALES AND USE TAX

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: David Clark

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill amends the Revenue and Taxation title to address the taxation of food and
             10      food ingredients and make related adjustments to revenue allocations.
             11      Highlighted Provisions:
             12          This bill:
             13          .    increases the state sales and use tax rate on food and food ingredients to the general
             14      state sales and use tax rate;
             14a      S.     .      reduces the general state sales and use tax rate; .S
             15          .    adjusts S. state .S sales and use S. tax .S allocations S. [ to the Centennial
             15a      Highway Fund Restricted
             16      Account
] for transportation purposes .S
;
             17          .    provides that food and food ingredients are taxable for purposes of certain local
             18      option sales and use taxes; and
             19          .    makes technical and conforming changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill takes effect on July 1, 2011.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          10-1-405, as last amended by Laws of Utah 2009, Chapter 212
             27          11-41-102, as last amended by Laws of Utah 2008, Chapters 286 and 384



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             28
         59-1-401, as last amended by Laws of Utah 2010, Chapter 233
             29          59-12-102, as last amended by Laws of Utah 2010, Chapters 88, 142, 234, and 263
             30          59-12-103, as last amended by Laws of Utah 2010, Chapter 412
             31          59-12-104.2, as last amended by Laws of Utah 2009, Chapter 203
             32          59-12-108, as last amended by Laws of Utah 2008, Chapters 286, 382, and 384
             33          59-12-401, as last amended by Laws of Utah 2010, Chapter 9
             34          59-12-402, as last amended by Laws of Utah 2010, Chapter 9
             35          59-12-703, as last amended by Laws of Utah 2008, Chapters 382 and 384
             36          59-12-802, as last amended by Laws of Utah 2008, Chapter 384
             37          59-12-804, as last amended by Laws of Utah 2008, Chapter 384
             38          59-12-1302, as last amended by Laws of Utah 2008, Chapters 382 and 384
             39          59-12-1402, as last amended by Laws of Utah 2008, Chapters 382 and 384
             40          59-12-2003, as last amended by Laws of Utah 2010, Chapter 263
             41          59-12-2103, as enacted by Laws of Utah 2008, Chapter 323
             42          59-12-2204, as enacted by Laws of Utah 2010, Chapter 263
             43     

             44      Be it enacted by the Legislature of the state of Utah:
             45          Section 1. Section 10-1-405 is amended to read:
             46           10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
             47      Rulemaking authority -- Charge for services.
             48          (1) Subject to the other provisions of this section, the commission shall collect,
             49      enforce, and administer any municipal telecommunications license tax imposed under this part
             50      pursuant to:
             51          (a) the same procedures used in the administration, collection, and enforcement of the
             52      state sales and use tax under:
             53          (i) Title 59, Chapter 1, General Taxation Policies; and
             54          (ii) Title 59, Chapter 12, Part 1, Tax Collection:
             55          (A) except for:
             56          (I) Subsection 59-12-103 (2)[(g)](f);
             57          (II) Section 59-12-104 ;
             58          (III) Section 59-12-104.1 ;



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             59
         (IV) Section 59-12-104.2 ;
             60          (V) Section 59-12-104.3 ;
             61          (VI) Section 59-12-107.1 ; and
             62          (VII) Section 59-12-123 ; and
             63          (B) except that for purposes of Section 59-1-1410 , the term "person" may include a
             64      customer from whom a municipal telecommunications license tax is recovered in accordance
             65      with Subsection 10-1-403 (2); and
             66          (b) a uniform interlocal agreement:
             67          (i) between:
             68          (A) the municipality that imposes the municipal telecommunications license tax; and
             69          (B) the commission;
             70          (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             71          (iii) that complies with Subsection (2)(a); and
             72          (iv) that is developed by rule in accordance with Subsection (2)(b).
             73          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             74      the commission shall:
             75          (i) transmit money collected under this part:
             76          (A) monthly; and
             77          (B) by electronic funds transfer by the commission to the municipality;
             78          (ii) conduct audits of the municipal telecommunications license tax;
             79          (iii) charge the municipality for the commission's services under this section in an
             80      amount:
             81          (A) sufficient to reimburse the commission for the cost to the commission in rendering
             82      the services; and
             83          (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
             84      license tax imposed by the ordinance of the municipality; and
             85          (iv) collect, enforce, and administer the municipal telecommunications license tax
             86      authorized under this part pursuant to the same procedures used in the administration,
             87      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             88          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             89      commission shall develop a uniform interlocal agreement that meets the requirements of this



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             90
     section.
             91          (3) The administrative fee charged under Subsection (2)(a) shall be:
             92          (a) deposited in the Sales and Use Tax Administrative Fees Account; and
             93          (b) used for administration of municipal telecommunications license taxes under this
             94      part.
             95          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
             96      telecommunications license tax under this part at a rate that exceeds 3.5%:
             97          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
             98      shall collect the municipal telecommunications license tax:
             99          (i) within the municipality;
             100          (ii) at a rate of 3.5%; and
             101          (iii) from a telecommunications provider required to pay the municipal
             102      telecommunications license tax on or after July 1, 2007; and
             103          (b) the commission shall collect a municipal telecommunications license tax within the
             104      municipality at the rate imposed by the municipality if:
             105          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
             106      telecommunications license tax under this part at a rate of up to 3.5%;
             107          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             108      the rate of the municipal telecommunications license tax; and
             109          (iii) a telecommunications provider is required to pay the municipal
             110      telecommunications license tax on or after the day on which the ordinance described in
             111      Subsection (4)(b)(ii) takes effect.
             112          Section 2. Section 11-41-102 is amended to read:
             113           11-41-102. Definitions.
             114          As used in this chapter:
             115          (1) "Agreement" means an oral or written agreement between a:
             116          (a) (i) county; or
             117          (ii) municipality; and
             118          (b) person.
             119          (2) "Municipality" means a:
             120          (a) city; or



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             121
         (b) town.
             122          (3) "Payment" includes:
             123          (a) a payment;
             124          (b) a rebate;
             125          (c) a refund; or
             126          (d) an amount similar to Subsections (3)(a) through (c).
             127          (4) "Regional retail business" means a:
             128          (a) retail business that occupies a floor area of more than 80,000 square feet;
             129          (b) dealer as defined in Section 41-1a-102 ;
             130          (c) retail shopping facility that has at least two anchor tenants if the total number of
             131      anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
             132      feet; or
             133          (d) grocery store that occupies a floor area of more than 30,000 square feet.
             134          (5) (a) "Sales and use tax" means a tax:
             135          (i) imposed on transactions within a:
             136          (A) county; or
             137          (B) municipality; and
             138          (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
             139      Sales and Use Tax Act.
             140          (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
             141      authorized under:
             142          (i) Subsection 59-12-103 (2)(a)(i);
             143          (ii) Subsection 59-12-103 (2)(b)(i);
             144          [(iii) Subsection 59-12-103 (2)(c)(i);]
             145          [(iv) Subsection 59-12-103 (2)(d)(i)(A);]
             146          [(v)] (iii) Section 59-12-301 ;
             147          [(vi)] (iv) Section 59-12-352 ;
             148          [(vii)] (v) Section 59-12-353 ;
             149          [(viii)] (vi) Section 59-12-603 ; or
             150          [(ix)] (vii) Section 59-12-1201 .
             151          (6) (a) "Sales and use tax incentive payment" means a payment of revenues:



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             152
         (i) to a person;
             153          (ii) by a:
             154          (A) county; or
             155          (B) municipality;
             156          (iii) to induce the person to locate or relocate a regional retail business within the:
             157          (A) county; or
             158          (B) municipality; and
             159          (iv) that are derived from a sales and use tax.
             160          (b) "Sales and use tax incentive payment" does not include funding for public
             161      infrastructure.
             162          Section 3. Section 59-1-401 is amended to read:
             163           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             164      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             165      interest.
             166          (1) As used in this section:
             167          (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
             168      commission:
             169          (i) has implemented the commission's GenTax system; and
             170          (ii) at least 30 days before implementing the commission's GenTax system as described
             171      in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
             172      stating:
             173          (A) the date the commission will implement the GenTax system with respect to the tax,
             174      fee, or charge; and
             175          (B) that, at the time the commission implements the GenTax system with respect to the
             176      tax, fee, or charge:
             177          (I) a person that files a return after the due date as described in Subsection (2)(a) is
             178      subject to the penalty described in Subsection (2)(c)(ii); and
             179          (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
             180      subject to the penalty described in Subsection (3)(b)(ii).
             181          (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
             182      charge, the later of:



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             183
         (i) the date on which the commission implements the commission's GenTax system
             184      with respect to the tax, fee, or charge; or
             185          (ii) 30 days after the date the commission provides the notice described in Subsection
             186      (1)(a)(ii) with respect to the tax, fee, or charge.
             187          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
             188          (A) a tax, fee, or charge the commission administers under:
             189          (I) this title;
             190          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             191          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             192          (IV) Section 19-6-410.5 ;
             193          (V) Section 19-6-714 ;
             194          (VI) Section 19-6-805 ;
             195          (VII) Section 34A-2-202 ;
             196          (VIII) Section 40-6-14 ;
             197          (IX) Section 69-2-5 ;
             198          (X) Section 69-2-5.5 ; or
             199          (XI) Section 69-2-5.6 ; or
             200          (B) another amount that by statute is subject to a penalty imposed under this section.
             201          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             202          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;
             203          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
             204          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309 ;
             205          (D) Chapter 3, Tax Equivalent Property Act; or
             206          (E) Chapter 4, Privilege Tax.
             207          (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
             208      tax, fee, or charge.
             209          (2) (a) The due date for filing a return is:
             210          (i) if the person filing the return is not allowed by law an extension of time for filing
             211      the return, the day on which the return is due as provided by law; or
             212          (ii) if the person filing the return is allowed by law an extension of time for filing the
             213      return, the earlier of:



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             214
         (A) the date the person files the return; or
             215          (B) the last day of that extension of time as allowed by law.
             216          (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
             217      return after the due date described in Subsection (2)(a).
             218          (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
             219          (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
             220      tax, fee, or charge:
             221          (A) $20; or
             222          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             223          (ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
             224      fee, or charge, beginning on the activation date for the tax, fee, or charge:
             225          (A) $20; or
             226          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
             227      filed no later than five days after the due date described in Subsection (2)(a);
             228          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
             229      more than five days after the due date but no later than 15 days after the due date described in
             230      Subsection (2)(a); or
             231          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
             232      filed more than 15 days after the due date described in Subsection (2)(a).
             233          (d) This Subsection (2) does not apply to:
             234          (i) an amended return; or
             235          (ii) a return with no tax due.
             236          (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
             237          (i) the person files a return on or before the due date for filing a return described in
             238      Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
             239      date;
             240          (ii) the person:
             241          (A) is subject to a penalty under Subsection (2)(b); and
             242          (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
             243      due date for filing a return described in Subsection (2)(a);
             244          (iii) (A) the person is subject to a penalty under Subsection (2)(b); and



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             245
         (B) the commission estimates an amount of tax due for that person in accordance with
             246      Subsection 59-1-1406 (2);
             247          (iv) the person:
             248          (A) is mailed a notice of deficiency; and
             249          (B) within a 30-day period after the day on which the notice of deficiency described in
             250      Subsection (3)(a)(iv)(A) is mailed:
             251          (I) does not file a petition for redetermination or a request for agency action; and
             252          (II) fails to pay the tax, fee, or charge due on a return;
             253          (v) (A) the commission:
             254          (I) issues an order constituting final agency action resulting from a timely filed petition
             255      for redetermination or a timely filed request for agency action; or
             256          (II) is considered to have denied a request for reconsideration under Subsection
             257      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             258      request for agency action; and
             259          (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
             260      after the date the commission:
             261          (I) issues the order constituting final agency action described in Subsection
             262      (3)(a)(v)(A)(I); or
             263          (II) is considered to have denied the request for reconsideration described in
             264      Subsection (3)(a)(v)(A)(II); or
             265          (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
             266      of a final judicial decision resulting from a timely filed petition for judicial review.
             267          (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
             268          (i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             269      respect to an unactivated tax, fee, or charge:
             270          (A) $20; or
             271          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             272          (ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             273      respect to an activated tax, fee, or charge, beginning on the activation date:
             274          (A) $20; or
             275          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated



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             276
     tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
             277      return described in Subsection (2)(a);
             278          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
             279      fee, or charge due on the return is paid more than five days after the due date for filing a return
             280      described in Subsection (2)(a) but no later than 15 days after that due date; or
             281          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
             282      tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
             283      return described in Subsection (2)(a).
             284          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
             285      quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 , there
             286      shall be added a penalty in an amount determined by applying the interest rate provided under
             287      Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
             288      of the underpayment.
             289          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             290      excess of the required installment over the amount, if any, of the installment paid on or before
             291      the due date for the installment.
             292          (ii) The period of the underpayment shall run from the due date for the installment to
             293      whichever of the following dates is the earlier:
             294          (A) the original due date of the tax return, without extensions, for the taxable year; or
             295          (B) with respect to any portion of the underpayment, the date on which that portion is
             296      paid.
             297          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             298      against unpaid required installments in the order in which the installments are required to be
             299      paid.
             300          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             301      person allowed by law an extension of time for filing a corporate franchise or income tax return
             302      under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
             303      under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
             304      Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
             305      including the extension of time, the person fails to pay:
             306          (i) for a person filing a corporate franchise or income tax return under Chapter 7,



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             307
     Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b); or
             308          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             309      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             310          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             311      extension of time for filing the return is an amount equal to 2% of the tax due on the return,
             312      unpaid as of the day on which the return is due as provided by law.
             313          (6) If a person does not file a return within an extension of time allowed by Section
             314      59-7-505 or 59-10-516 , the person:
             315          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             316          (b) is subject to a penalty in an amount equal to the sum of:
             317          (i) a late file penalty in an amount equal to the greater of:
             318          (A) $20; or
             319          (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
             320      provided by law, not including the extension of time; and
             321          (ii) a late pay penalty in an amount equal to the greater of:
             322          (A) $20; or
             323          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
             324      due as provided by law, not including the extension of time.
             325          (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
             326      in this Subsection (7)(a).
             327          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
             328      fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
             329      is due to negligence.
             330          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
             331      tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
             332      underpayment.
             333          (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
             334      the penalty is the greater of $500 per period or 50% of the entire underpayment.
             335          (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
             336      charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
             337          (b) If the commission determines that a person is liable for a penalty imposed under



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             338
     Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
             339      penalty.
             340          (i) The notice of proposed penalty shall:
             341          (A) set forth the basis of the assessment; and
             342          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             343          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             344      penalty is proposed may:
             345          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             346      or
             347          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             348          (iii) A person against whom a penalty is proposed in accordance with this Subsection
             349      (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
             350      the commission.
             351          (iv) (A) If the commission determines that a person is liable for a penalty under this
             352      Subsection (7), the commission shall assess the penalty and give notice and demand for
             353      payment.
             354          (B) The commission shall mail the notice and demand for payment described in
             355      Subsection (7)(b)(iv)(A):
             356          (I) to the person's last-known address; and
             357          (II) in accordance with Section 59-1-1404 .
             358          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             359      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             360          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             361      determining that:
             362          (A) the seller meets one or more of the criteria described in Subsection
             363      59-12-107 (1)(a); and
             364          (B) the commission or a county, city, or town may require the seller to collect a tax
             365      under Subsections 59-12-103 (2)(a) through [(d)] (c); or
             366          (ii) the commission issues a final unappealable administrative order determining that:
             367          (A) the seller meets one or more of the criteria described in Subsection
             368      59-12-107 (1)(a); and



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             369
         (B) the commission or a county, city, or town may require the seller to collect a tax
             370      under Subsections 59-12-103 (2)(a) through [(d)] (c).
             371          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             372      subject to the penalty under Subsection (7)(a)(ii) if:
             373          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             374      determining that:
             375          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             376      and
             377          (II) the commission or a county, city, or town may require the seller to collect a tax
             378      under Subsections 59-12-103 (2)(a) through [(d)] (c); or
             379          (B) the commission issues a final unappealable administrative order determining that:
             380          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             381      and
             382          (II) the commission or a county, city, or town may require the seller to collect a tax
             383      under Subsections 59-12-103 (2)(a) through [(d)] (c); and
             384          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             385      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             386      establishment of new law.
             387          (8) The penalty for failure to file an information return, information report, or a
             388      complete supporting schedule is $50 for each information return, information report, or
             389      supporting schedule up to a maximum of $1,000.
             390          (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
             391      or impede administration of a law relating to a tax, fee, or charge and files a purported return
             392      that fails to contain information from which the correctness of reported tax, fee, or charge
             393      liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
             394      substantially incorrect, the penalty is $500.
             395          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             396      Subsection 59-12-108 (1)(a):
             397          (i) is subject to a penalty described in Subsection (2); and
             398          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             399      allowable under Subsection 59-12-108 (2).



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             400
         (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             401      required by Subsection 59-12-108 (1)(a)(ii)(B):
             402          (i) is subject to a penalty described in Subsection (2); and
             403          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             404      allowable under Subsection 59-12-108 (2).
             405          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
             406          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             407      following documents:
             408          (A) a return;
             409          (B) an affidavit;
             410          (C) a claim; or
             411          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             412          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
             413      will be used in connection with any material matter administered by the commission; and
             414          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             415      with any material matter administered by the commission, would result in an understatement of
             416      another person's liability for a tax, fee, or charge.
             417          (b) The following acts apply to Subsection (11)(a)(i):
             418          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             419          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             420          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             421          (iv) advising in the preparation or presentation of any portion of a document described
             422      in Subsection (11)(a)(i);
             423          (v) aiding in the preparation or presentation of any portion of a document described in
             424      Subsection (11)(a)(i);
             425          (vi) assisting in the preparation or presentation of any portion of a document described
             426      in Subsection (11)(a)(i); or
             427          (vii) counseling in the preparation or presentation of any portion of a document
             428      described in Subsection (11)(a)(i).
             429          (c) For purposes of Subsection (11)(a), the penalty:
             430          (i) shall be imposed by the commission;



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             431
         (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             432      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             433          (iii) is in addition to any other penalty provided by law.
             434          (d) The commission may seek a court order to enjoin a person from engaging in
             435      conduct that is subject to a penalty under this Subsection (11).
             436          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             437      commission may make rules prescribing the documents that are similar to Subsections
             438      (11)(a)(i)(A) through (C).
             439          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             440      provided in Subsections (12)(b) through (e).
             441          (b) (i) A person who is required by this title or any laws the commission administers or
             442      regulates to register with or obtain a license or permit from the commission, who operates
             443      without having registered or secured a license or permit, or who operates when the registration,
             444      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             445          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             446      penalty may not:
             447          (A) be less than $500; or
             448          (B) exceed $1,000.
             449          (c) (i) A person who, with intent to evade a tax, fee, or charge or requirement of this
             450      title or any lawful requirement of the commission, fails to make, render, sign, or verify a return
             451      or to supply information within the time required by law, or who makes, renders, signs, or
             452      verifies a false or fraudulent return or statement, or who supplies false or fraudulent
             453      information, is guilty of a third degree felony.
             454          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             455      penalty may not:
             456          (A) be less than $1,000; or
             457          (B) exceed $5,000.
             458          (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
             459      charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
             460      guilty of a second degree felony.
             461          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the



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             462
     penalty may not:
             463          (A) be less than $1,500; or
             464          (B) exceed $25,000.
             465          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             466          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             467      documents:
             468          (I) a return;
             469          (II) an affidavit;
             470          (III) a claim; or
             471          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             472          (B) subject to Subsection (12)(e)(iii), with knowledge that [the] a document described
             473      in Subsection (12)(e)(i)(A):
             474          (I) is false or fraudulent as to any material matter; and
             475          (II) could be used in connection with any material matter administered by the
             476      commission.
             477          (ii) The following acts apply to Subsection (12)(e)(i):
             478          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             479          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             480          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             481          (D) advising in the preparation or presentation of any portion of a document described
             482      in Subsection (12)(e)(i)(A);
             483          (E) aiding in the preparation or presentation of any portion of a document described in
             484      Subsection (12)(e)(i)(A);
             485          (F) assisting in the preparation or presentation of any portion of a document described
             486      in Subsection (12)(e)(i)(A); or
             487          (G) counseling in the preparation or presentation of any portion of a document
             488      described in Subsection (12)(e)(i)(A).
             489          (iii) This Subsection (12)(e) applies:
             490          (A) regardless of whether the person for which the document described in Subsection
             491      (12)(e)(i)(A) is prepared or presented:
             492          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or



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             493
         (II) consented to the falsity of [the] a document described in Subsection (12)(e)(i)(A);
             494      and
             495          (B) in addition to any other penalty provided by law.
             496          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             497      penalty may not:
             498          (A) be less than $1,500; or
             499          (B) exceed $25,000.
             500          (v) The commission may seek a court order to enjoin a person from engaging in
             501      conduct that is subject to a penalty under this Subsection (12)(e).
             502          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             503      the commission may make rules prescribing the documents that are similar to Subsections
             504      (12)(e)(i)(A)(I) through (III).
             505          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             506      the later of six years:
             507          (i) from the date the tax should have been remitted; or
             508          (ii) after the day on which the person commits the criminal offense.
             509          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             510      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             511      this part.
             512          Section 4. Section 59-12-102 is amended to read:
             513           59-12-102. Definitions.
             514          As used in this chapter:
             515          (1) "800 service" means a telecommunications service that:
             516          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             517          (b) is typically marketed:
             518          (i) under the name 800 toll-free calling;
             519          (ii) under the name 855 toll-free calling;
             520          (iii) under the name 866 toll-free calling;
             521          (iv) under the name 877 toll-free calling;
             522          (v) under the name 888 toll-free calling; or
             523          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the



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             524
     Federal Communications Commission.
             525          (2) (a) "900 service" means an inbound toll telecommunications service that:
             526          (i) a subscriber purchases;
             527          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             528      the subscriber's:
             529          (A) prerecorded announcement; or
             530          (B) live service; and
             531          (iii) is typically marketed:
             532          (A) under the name 900 service; or
             533          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             534      Communications Commission.
             535          (b) "900 service" does not include a charge for:
             536          (i) a collection service a seller of a telecommunications service provides to a
             537      subscriber; or
             538          (ii) the following a subscriber sells to the subscriber's customer:
             539          (A) a product; or
             540          (B) a service.
             541          (3) (a) "Admission or user fees" includes season passes.
             542          (b) "Admission or user fees" does not include annual membership dues to private
             543      organizations.
             544          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             545      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             546      Agreement after November 12, 2002.
             547          (5) "Agreement combined tax rate" means the sum of the tax rates:
             548          (a) listed under Subsection (6); and
             549          (b) that are imposed within a local taxing jurisdiction.
             550          (6) "Agreement sales and use tax" means a tax imposed under:
             551          (a) Subsection 59-12-103 (2)(a)(i)(A);
             552          (b) Subsection 59-12-103 (2)(b)(i);
             553          [(c) Subsection 59-12-103 (2)(c)(i);]
             554          [(d) Subsection 59-12-103 (2)(d)(i)(A)(I);]



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             555
         [(e)] (c) Section 59-12-204 ;
             556          [(f)] (d) Section 59-12-401 ;
             557          [(g)] (e) Section 59-12-402 ;
             558          [(h)] (f) Section 59-12-703 ;
             559          [(i)] (g) Section 59-12-802 ;
             560          [(j)] (h) Section 59-12-804 ;
             561          [(k)] (i) Section 59-12-1102 ;
             562          [(l)] (j) Section 59-12-1302 ;
             563          [(m)] (k) Section 59-12-1402 ;
             564          [(n)] (l) Section 59-12-1802 ;
             565          [(o)] (m) Section 59-12-2003 ;
             566          [(p)] (n) Section 59-12-2103 ;
             567          [(q)] (o) Section 59-12-2213 ;
             568          [(r)] (p) Section 59-12-2214 ;
             569          [(s)] (q) Section 59-12-2215 ;
             570          [(t)] (r) Section 59-12-2216 ;
             571          [(u)] (s) Section 59-12-2217 ; or
             572          [(v)] (t) Section 59-12-2218 .
             573          (7) "Aircraft" is as defined in Section 72-10-102 .
             574          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             575          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             576      in Subsection 59-12-107 (1)(f) of an airline; and
             577          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             578      whether the business entity performs the following in this state:
             579          (i) check, diagnose, overhaul, and repair:
             580          (A) an onboard system of a fixed wing turbine powered aircraft; and
             581          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             582          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             583      engine;
             584          (iii) perform at least the following maintenance on a fixed wing turbine powered
             585      aircraft:



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             586
         (A) an inspection;
             587          (B) a repair, including a structural repair or modification;
             588          (C) changing landing gear; and
             589          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             590          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             591      completely apply new paint to the fixed wing turbine powered aircraft; and
             592          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             593      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             594      authority that certifies the fixed wing turbine powered aircraft.
             595          (9) "Alcoholic beverage" means a beverage that:
             596          (a) is suitable for human consumption; and
             597          (b) contains .5% or more alcohol by volume.
             598          (10) (a) "Ancillary service" means a service associated with, or incidental to, the
             599      provision of telecommunications service.
             600          (b) "Ancillary service" includes:
             601          (i) a conference bridging service;
             602          (ii) a detailed communications billing service;
             603          (iii) directory assistance;
             604          (iv) a vertical service; or
             605          (v) a voice mail service.
             606          (11) "Area agency on aging" is as defined in Section 62A-3-101 .
             607          (12) "Assisted amusement device" means an amusement device, skill device, or ride
             608      device that is started and stopped by an individual:
             609          (a) who is not the purchaser or renter of the right to use or operate the amusement
             610      device, skill device, or ride device; and
             611          (b) at the direction of the seller of the right to use the amusement device, skill device,
             612      or ride device.
             613          (13) "Assisted cleaning or washing of tangible personal property" means cleaning or
             614      washing of tangible personal property if the cleaning or washing labor is primarily performed
             615      by an individual:
             616          (a) who is not the purchaser of the cleaning or washing of the tangible personal



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             617
     property; and
             618          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             619      property.
             620          (14) "Authorized carrier" means:
             621          (a) in the case of vehicles operated over public highways, the holder of credentials
             622      indicating that the vehicle is or will be operated pursuant to both the International Registration
             623      Plan and the International Fuel Tax Agreement;
             624          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             625      certificate or air carrier's operating certificate; or
             626          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             627      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             628          (15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of the
             629      following that is used as the primary source of energy to produce fuel or electricity:
             630          (i) material from a plant or tree; or
             631          (ii) other organic matter that is available on a renewable basis, including:
             632          (A) slash and brush from forests and woodlands;
             633          (B) animal waste;
             634          (C) methane produced:
             635          (I) at landfills; or
             636          (II) as a byproduct of the treatment of wastewater residuals;
             637          (D) aquatic plants; and
             638          (E) agricultural products.
             639          (b) "Biomass energy" does not include:
             640          (i) black liquor;
             641          (ii) treated woods; or
             642          (iii) biomass from municipal solid waste other than methane produced:
             643          (A) at landfills; or
             644          (B) as a byproduct of the treatment of wastewater residuals.
             645          (16) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             646      property, products, or services if the tangible personal property, products, or services are:
             647          (i) distinct and identifiable; and



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             648
         (ii) sold for one nonitemized price.
             649          (b) "Bundled transaction" does not include:
             650          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             651      the basis of the selection by the purchaser of the items of tangible personal property included in
             652      the transaction;
             653          (ii) the sale of real property;
             654          (iii) the sale of services to real property;
             655          (iv) the retail sale of tangible personal property and a service if:
             656          (A) the tangible personal property:
             657          (I) is essential to the use of the service; and
             658          (II) is provided exclusively in connection with the service; and
             659          (B) the service is the true object of the transaction;
             660          (v) the retail sale of two services if:
             661          (A) one service is provided that is essential to the use or receipt of a second service;
             662          (B) the first service is provided exclusively in connection with the second service; and
             663          (C) the second service is the true object of the transaction;
             664          (vi) a transaction that includes tangible personal property or a product subject to
             665      taxation under this chapter and tangible personal property or a product that is not subject to
             666      taxation under this chapter if the:
             667          (A) seller's purchase price of the tangible personal property or product subject to
             668      taxation under this chapter is de minimis; or
             669          (B) seller's sales price of the tangible personal property or product subject to taxation
             670      under this chapter is de minimis; and
             671          (vii) the retail sale of tangible personal property that is not subject to taxation under
             672      this chapter and tangible personal property that is subject to taxation under this chapter if:
             673          (A) that retail sale includes:
             674          (I) food and food ingredients;
             675          (II) a drug;
             676          (III) durable medical equipment;
             677          (IV) mobility enhancing equipment;
             678          (V) an over-the-counter drug;



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             679
         (VI) a prosthetic device; or
             680          (VII) a medical supply; and
             681          (B) subject to Subsection (16)(f):
             682          (I) the seller's purchase price of the tangible personal property subject to taxation under
             683      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             684          (II) the seller's sales price of the tangible personal property subject to taxation under
             685      this chapter is 50% or less of the seller's total sales price of that retail sale.
             686          (c) (i) For purposes of Subsection (16)(a)(i), tangible personal property, a product, or a
             687      service that is distinct and identifiable does not include:
             688          (A) packaging that:
             689          (I) accompanies the sale of the tangible personal property, product, or service; and
             690          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             691      service;
             692          (B) tangible personal property, a product, or a service provided free of charge with the
             693      purchase of another item of tangible personal property, a product, or a service; or
             694          (C) an item of tangible personal property, a product, or a service included in the
             695      definition of "purchase price."
             696          (ii) For purposes of Subsection (16)(c)(i)(B), an item of tangible personal property, a
             697      product, or a service is provided free of charge with the purchase of another item of tangible
             698      personal property, a product, or a service if the sales price of the purchased item of tangible
             699      personal property, product, or service does not vary depending on the inclusion of the tangible
             700      personal property, product, or service provided free of charge.
             701          (d) (i) For purposes of Subsection (16)(a)(ii), property sold for one nonitemized price
             702      does not include a price that is separately identified by tangible personal property, product, or
             703      service on the following, regardless of whether the following is in paper format or electronic
             704      format:
             705          (A) a binding sales document; or
             706          (B) another supporting sales-related document that is available to a purchaser.
             707          (ii) For purposes of Subsection (16)(d)(i), a binding sales document or another
             708      supporting sales-related document that is available to a purchaser includes:
             709          (A) a bill of sale;



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             710
         (B) a contract;
             711          (C) an invoice;
             712          (D) a lease agreement;
             713          (E) a periodic notice of rates and services;
             714          (F) a price list;
             715          (G) a rate card;
             716          (H) a receipt; or
             717          (I) a service agreement.
             718          (e) (i) For purposes of Subsection (16)(b)(vi), the sales price of tangible personal
             719      property or a product subject to taxation under this chapter is de minimis if:
             720          (A) the seller's purchase price of the tangible personal property or product is 10% or
             721      less of the seller's total purchase price of the bundled transaction; or
             722          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             723      the seller's total sales price of the bundled transaction.
             724          (ii) For purposes of Subsection (16)(b)(vi), a seller:
             725          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             726      purchase price or sales price of the tangible personal property or product subject to taxation
             727      under this chapter is de minimis; and
             728          (B) may not use a combination of the seller's purchase price and the seller's sales price
             729      to determine if the purchase price or sales price of the tangible personal property or product
             730      subject to taxation under this chapter is de minimis.
             731          (iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a service
             732      contract to determine if the sales price of tangible personal property or a product is de minimis.
             733          (f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of
             734      the seller's purchase price and the seller's sales price to determine if tangible personal property
             735      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             736      price of that retail sale.
             737          (17) "Certified automated system" means software certified by the governing board of
             738      the agreement that:
             739          (a) calculates the agreement sales and use tax imposed within a local taxing
             740      jurisdiction:



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             741
         (i) on a transaction; and
             742          (ii) in the states that are members of the agreement;
             743          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             744      member of the agreement; and
             745          (c) maintains a record of the transaction described in Subsection (17)(a)(i).
             746          (18) "Certified service provider" means an agent certified:
             747          (a) by the governing board of the agreement; and
             748          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             749      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             750      own purchases.
             751          (19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparel
             752      suitable for general use.
             753          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             754      commission shall make rules:
             755          (i) listing the items that constitute "clothing"; and
             756          (ii) that are consistent with the list of items that constitute "clothing" under the
             757      agreement.
             758          (20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             759          (21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             760      fuels that does not constitute industrial use under Subsection (48) or residential use under
             761      Subsection (94).
             762          (22) (a) "Common carrier" means a person engaged in or transacting the business of
             763      transporting passengers, freight, merchandise, or other property for hire within this state.
             764          (b) (i) "Common carrier" does not include a person who, at the time the person is
             765      traveling to or from that person's place of employment, transports a passenger to or from the
             766      passenger's place of employment.
             767          (ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3,
             768      Utah Administrative Rulemaking Act, the commission may make rules defining what
             769      constitutes a person's place of employment.
             770          (23) "Component part" includes:
             771          (a) poultry, dairy, and other livestock feed, and their components;



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             772
         (b) baling ties and twine used in the baling of hay and straw;
             773          (c) fuel used for providing temperature control of orchards and commercial
             774      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             775      off-highway type farm machinery; and
             776          (d) feed, seeds, and seedlings.
             777          (24) "Computer" means an electronic device that accepts information:
             778          (a) (i) in digital form; or
             779          (ii) in a form similar to digital form; and
             780          (b) manipulates that information for a result based on a sequence of instructions.
             781          (25) "Computer software" means a set of coded instructions designed to cause:
             782          (a) a computer to perform a task; or
             783          (b) automatic data processing equipment to perform a task.
             784          (26) (a) "Conference bridging service" means an ancillary service that links two or
             785      more participants of an audio conference call or video conference call.
             786          (b) "Conference bridging service" includes providing a telephone number as part of the
             787      ancillary service described in Subsection (26)(a).
             788          (c) "Conference bridging service" does not include a telecommunications service used
             789      to reach the ancillary service described in Subsection (26)(a).
             790          (27) "Construction materials" means any tangible personal property that will be
             791      converted into real property.
             792          (28) "Delivered electronically" means delivered to a purchaser by means other than
             793      tangible storage media.
             794          (29) (a) "Delivery charge" means a charge:
             795          (i) by a seller of:
             796          (A) tangible personal property;
             797          (B) a product transferred electronically; or
             798          (C) services; and
             799          (ii) for preparation and delivery of the tangible personal property, product transferred
             800      electronically, or services described in Subsection (29)(a)(i) to a location designated by the
             801      purchaser.
             802          (b) "Delivery charge" includes a charge for the following:



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             803
         (i) transportation;
             804          (ii) shipping;
             805          (iii) postage;
             806          (iv) handling;
             807          (v) crating; or
             808          (vi) packing.
             809          (30) "Detailed telecommunications billing service" means an ancillary service of
             810      separately stating information pertaining to individual calls on a customer's billing statement.
             811          (31) "Dietary supplement" means a product, other than tobacco, that:
             812          (a) is intended to supplement the diet;
             813          (b) contains one or more of the following dietary ingredients:
             814          (i) a vitamin;
             815          (ii) a mineral;
             816          (iii) an herb or other botanical;
             817          (iv) an amino acid;
             818          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             819      dietary intake; or
             820          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             821      described in Subsections (31)(b)(i) through (v);
             822          (c) (i) except as provided in Subsection (31)(c)(ii), is intended for ingestion in:
             823          (A) tablet form;
             824          (B) capsule form;
             825          (C) powder form;
             826          (D) softgel form;
             827          (E) gelcap form; or
             828          (F) liquid form; or
             829          (ii) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in
             830      a form described in Subsections (31)(c)(i)(A) through (F), is not represented:
             831          (A) as conventional food; and
             832          (B) for use as a sole item of:
             833          (I) a meal; or



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             834
         (II) the diet; and
             835          (d) is required to be labeled as a dietary supplement:
             836          (i) identifiable by the "Supplemental Facts" box found on the label; and
             837          (ii) as required by 21 C.F.R. Sec. 101.36.
             838          (32) (a) "Direct mail" means printed material delivered or distributed by United States
             839      mail or other delivery service:
             840          (i) to:
             841          (A) a mass audience; or
             842          (B) addressees on a mailing list provided:
             843          (I) by a purchaser of the mailing list; or
             844          (II) at the discretion of the purchaser of the mailing list; and
             845          (ii) if the cost of the printed material is not billed directly to the recipients.
             846          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             847      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             848          (c) "Direct mail" does not include multiple items of printed material delivered to a
             849      single address.
             850          (33) "Directory assistance" means an ancillary service of providing:
             851          (a) address information; or
             852          (b) telephone number information.
             853          (34) (a) "Disposable home medical equipment or supplies" means medical equipment
             854      or supplies that:
             855          (i) cannot withstand repeated use; and
             856          (ii) are purchased by, for, or on behalf of a person other than:
             857          (A) a health care facility as defined in Section 26-21-2 ;
             858          (B) a health care provider as defined in Section 78B-3-403 ;
             859          (C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
             860          (D) a person similar to a person described in Subsections (34)(a)(ii)(A) through (C).
             861          (b) "Disposable home medical equipment or supplies" does not include:
             862          (i) a drug;
             863          (ii) durable medical equipment;
             864          (iii) a hearing aid;



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             865
         (iv) a hearing aid accessory;
             866          (v) mobility enhancing equipment; or
             867          (vi) tangible personal property used to correct impaired vision, including:
             868          (A) eyeglasses; or
             869          (B) contact lenses.
             870          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             871      commission may by rule define what constitutes medical equipment or supplies.
             872          (35) (a) "Drug" means a compound, substance, or preparation, or a component of a
             873      compound, substance, or preparation that is:
             874          (i) recognized in:
             875          (A) the official United States Pharmacopoeia;
             876          (B) the official Homeopathic Pharmacopoeia of the United States;
             877          (C) the official National Formulary; or
             878          (D) a supplement to a publication listed in Subsections (35)(a)(i)(A) through (C);
             879          (ii) intended for use in the:
             880          (A) diagnosis of disease;
             881          (B) cure of disease;
             882          (C) mitigation of disease;
             883          (D) treatment of disease; or
             884          (E) prevention of disease; or
             885          (iii) intended to affect:
             886          (A) the structure of the body; or
             887          (B) any function of the body.
             888          (b) "Drug" does not include:
             889          (i) food and food ingredients;
             890          (ii) a dietary supplement;
             891          (iii) an alcoholic beverage; or
             892          (iv) a prosthetic device.
             893          (36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" means
             894      equipment that:
             895          (i) can withstand repeated use;



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             896
         (ii) is primarily and customarily used to serve a medical purpose;
             897          (iii) generally is not useful to a person in the absence of illness or injury; and
             898          (iv) is not worn in or on the body.
             899          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             900      equipment described in Subsection (36)(a).
             901          (c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not include
             902      mobility enhancing equipment.
             903          (37) "Electronic" means:
             904          (a) relating to technology; and
             905          (b) having:
             906          (i) electrical capabilities;
             907          (ii) digital capabilities;
             908          (iii) magnetic capabilities;
             909          (iv) wireless capabilities;
             910          (v) optical capabilities;
             911          (vi) electromagnetic capabilities; or
             912          (vii) capabilities similar to Subsections (37)(b)(i) through (vi).
             913          (38) "Employee" is as defined in Section 59-10-401 .
             914          (39) "Fixed guideway" means a public transit facility that uses and occupies:
             915          (a) rail for the use of public transit; or
             916          (b) a separate right-of-way for the use of public transit.
             917          (40) "Fixed wing turbine powered aircraft" means an aircraft that:
             918          (a) is powered by turbine engines;
             919          (b) operates on jet fuel; and
             920          (c) has wings that are permanently attached to the fuselage of the aircraft.
             921          (41) "Fixed wireless service" means a telecommunications service that provides radio
             922      communication between fixed points.
             923          (42) (a) "Food and food ingredients" means substances:
             924          (i) regardless of whether the substances are in:
             925          (A) liquid form;
             926          (B) concentrated form;



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             927
         (C) solid form;
             928          (D) frozen form;
             929          (E) dried form; or
             930          (F) dehydrated form; and
             931          (ii) that are:
             932          (A) sold for:
             933          (I) ingestion by humans; or
             934          (II) chewing by humans; and
             935          (B) consumed for the substance's:
             936          (I) taste; or
             937          (II) nutritional value.
             938          (b) "Food and food ingredients" includes an item described in Subsection (78)(b)(iii).
             939          (c) "Food and food ingredients" does not include:
             940          (i) an alcoholic beverage;
             941          (ii) tobacco; or
             942          (iii) prepared food.
             943          (43) (a) "Fundraising sales" means sales:
             944          (i) (A) made by a school; or
             945          (B) made by a school student;
             946          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             947      materials, or provide transportation; and
             948          (iii) that are part of an officially sanctioned school activity.
             949          (b) For purposes of Subsection (43)(a)(iii), "officially sanctioned school activity"
             950      means a school activity:
             951          (i) that is conducted in accordance with a formal policy adopted by the school or school
             952      district governing the authorization and supervision of fundraising activities;
             953          (ii) that does not directly or indirectly compensate an individual teacher or other
             954      educational personnel by direct payment, commissions, or payment in kind; and
             955          (iii) the net or gross revenues from which are deposited in a dedicated account
             956      controlled by the school or school district.
             957          (44) "Geothermal energy" means energy contained in heat that continuously flows



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             958
     outward from the earth that is used as the sole source of energy to produce electricity.
             959          (45) "Governing board of the agreement" means the governing board of the agreement
             960      that is:
             961          (a) authorized to administer the agreement; and
             962          (b) established in accordance with the agreement.
             963          (46) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             964          (i) the executive branch of the state, including all departments, institutions, boards,
             965      divisions, bureaus, offices, commissions, and committees;
             966          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             967      Office of the Court Administrator, and similar administrative units in the judicial branch;
             968          (iii) the legislative branch of the state, including the House of Representatives, the
             969      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             970      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             971      Analyst;
             972          (iv) the National Guard;
             973          (v) an independent entity as defined in Section 63E-1-102 ; or
             974          (vi) a political subdivision as defined in Section 17B-1-102 .
             975          (b) "Governmental entity" does not include the state systems of public and higher
             976      education, including:
             977          (i) a college campus of the Utah College of Applied Technology;
             978          (ii) a school;
             979          (iii) the State Board of Education;
             980          (iv) the State Board of Regents; or
             981          (v) a state institution of higher education as defined in Section 53B-3-102 .
             982          (47) "Hydroelectric energy" means water used as the sole source of energy to produce
             983      electricity.
             984          (48) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             985      other fuels:
             986          (a) in mining or extraction of minerals;
             987          (b) in agricultural operations to produce an agricultural product up to the time of
             988      harvest or placing the agricultural product into a storage facility, including:



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             989
         (i) commercial greenhouses;
             990          (ii) irrigation pumps;
             991          (iii) farm machinery;
             992          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             993      registered under Title 41, Chapter 1a, Part 2, Registration; and
             994          (v) other farming activities;
             995          (c) in manufacturing tangible personal property at an establishment described in SIC
             996      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             997      Executive Office of the President, Office of Management and Budget;
             998          (d) by a scrap recycler if:
             999          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1000      one or more of the following items into prepared grades of processed materials for use in new
             1001      products:
             1002          (A) iron;
             1003          (B) steel;
             1004          (C) nonferrous metal;
             1005          (D) paper;
             1006          (E) glass;
             1007          (F) plastic;
             1008          (G) textile; or
             1009          (H) rubber; and
             1010          (ii) the new products under Subsection (48)(d)(i) would otherwise be made with
             1011      nonrecycled materials; or
             1012          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             1013      cogeneration facility as defined in Section 54-2-1 .
             1014          (49) (a) Except as provided in Subsection (49)(b), "installation charge" means a charge
             1015      for installing:
             1016          (i) tangible personal property; or
             1017          (ii) a product transferred electronically.
             1018          (b) "Installation charge" does not include a charge for repairs or renovations of:
             1019          (i) tangible personal property; or



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             1020
         (ii) a product transferred electronically.
             1021          (50) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             1022      personal property or a product transferred electronically for:
             1023          (i) (A) a fixed term; or
             1024          (B) an indeterminate term; and
             1025          (ii) consideration.
             1026          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             1027      amount of consideration may be increased or decreased by reference to the amount realized
             1028      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             1029      Code.
             1030          (c) "Lease" or "rental" does not include:
             1031          (i) a transfer of possession or control of property under a security agreement or
             1032      deferred payment plan that requires the transfer of title upon completion of the required
             1033      payments;
             1034          (ii) a transfer of possession or control of property under an agreement that requires the
             1035      transfer of title:
             1036          (A) upon completion of required payments; and
             1037          (B) if the payment of an option price does not exceed the greater of:
             1038          (I) $100; or
             1039          (II) 1% of the total required payments; or
             1040          (iii) providing tangible personal property along with an operator for a fixed period of
             1041      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             1042      designed.
             1043          (d) For purposes of Subsection (50)(c)(iii), an operator is necessary for equipment to
             1044      perform as designed if the operator's duties exceed the:
             1045          (i) set-up of tangible personal property;
             1046          (ii) maintenance of tangible personal property; or
             1047          (iii) inspection of tangible personal property.
             1048          (51) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             1049      if the tangible storage media is not physically transferred to the purchaser.
             1050          (52) "Local taxing jurisdiction" means a:



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             1051
         (a) county that is authorized to impose an agreement sales and use tax;
             1052          (b) city that is authorized to impose an agreement sales and use tax; or
             1053          (c) town that is authorized to impose an agreement sales and use tax.
             1054          (53) "Manufactured home" is as defined in Section 58-56-3 .
             1055          (54) For purposes of Section 59-12-104 , "manufacturing facility" means:
             1056          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             1057      Industrial Classification Manual of the federal Executive Office of the President, Office of
             1058      Management and Budget;
             1059          (b) a scrap recycler if:
             1060          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1061      one or more of the following items into prepared grades of processed materials for use in new
             1062      products:
             1063          (A) iron;
             1064          (B) steel;
             1065          (C) nonferrous metal;
             1066          (D) paper;
             1067          (E) glass;
             1068          (F) plastic;
             1069          (G) textile; or
             1070          (H) rubber; and
             1071          (ii) the new products under Subsection (54)(b)(i) would otherwise be made with
             1072      nonrecycled materials; or
             1073          (c) a cogeneration facility as defined in Section 54-2-1 .
             1074          (55) "Member of the immediate family of the producer" means a person who is related
             1075      to a producer described in Subsection 59-12-104 (20)(a) as a:
             1076          (a) child or stepchild, regardless of whether the child or stepchild is:
             1077          (i) an adopted child or adopted stepchild; or
             1078          (ii) a foster child or foster stepchild;
             1079          (b) grandchild or stepgrandchild;
             1080          (c) grandparent or stepgrandparent;
             1081          (d) nephew or stepnephew;



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             1082
         (e) niece or stepniece;
             1083          (f) parent or stepparent;
             1084          (g) sibling or stepsibling;
             1085          (h) spouse;
             1086          (i) person who is the spouse of a person described in Subsections (55)(a) through (g);
             1087      or
             1088          (j) person similar to a person described in Subsections (55)(a) through (i) as
             1089      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1090      Administrative Rulemaking Act.
             1091          (56) "Mobile home" is as defined in Section 58-56-3 .
             1092          (57) "Mobile telecommunications service" is as defined in the Mobile
             1093      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1094          (58) (a) "Mobile wireless service" means a telecommunications service, regardless of
             1095      the technology used, if:
             1096          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             1097          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             1098          (iii) the origination point described in Subsection (58)(a)(i) and the termination point
             1099      described in Subsection (58)(a)(ii) are not fixed.
             1100          (b) "Mobile wireless service" includes a telecommunications service that is provided
             1101      by a commercial mobile radio service provider.
             1102          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1103      commission may by rule define "commercial mobile radio service provider."
             1104          (59) (a) Except as provided in Subsection (59)(c), "mobility enhancing equipment"
             1105      means equipment that is:
             1106          (i) primarily and customarily used to provide or increase the ability to move from one
             1107      place to another;
             1108          (ii) appropriate for use in a:
             1109          (A) home; or
             1110          (B) motor vehicle; and
             1111          (iii) not generally used by persons with normal mobility.
             1112          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of



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             1113
     the equipment described in Subsection (59)(a).
             1114          (c) Notwithstanding Subsection (59)(a), "mobility enhancing equipment" does not
             1115      include:
             1116          (i) a motor vehicle;
             1117          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1118      vehicle manufacturer;
             1119          (iii) durable medical equipment; or
             1120          (iv) a prosthetic device.
             1121          (60) "Model 1 seller" means a seller registered under the agreement that has selected a
             1122      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             1123      functions for agreement sales and use taxes other than the seller's obligation under Section
             1124      59-12-124 to remit a tax on the seller's own purchases.
             1125          (61) "Model 2 seller" means a seller registered under the agreement that:
             1126          (a) except as provided in Subsection (61)(b), has selected a certified automated system
             1127      to perform the seller's sales tax functions for agreement sales and use taxes; and
             1128          (b) notwithstanding Subsection (61)(a), retains responsibility for remitting all of the
             1129      sales tax:
             1130          (i) collected by the seller; and
             1131          (ii) to the appropriate local taxing jurisdiction.
             1132          (62) (a) Subject to Subsection (62)(b), "model 3 seller" means a seller registered under
             1133      the agreement that has:
             1134          (i) sales in at least five states that are members of the agreement;
             1135          (ii) total annual sales revenues of at least $500,000,000;
             1136          (iii) a proprietary system that calculates the amount of tax:
             1137          (A) for an agreement sales and use tax; and
             1138          (B) due to each local taxing jurisdiction; and
             1139          (iv) entered into a performance agreement with the governing board of the agreement.
             1140          (b) For purposes of Subsection (62)(a), "model 3 seller" includes an affiliated group of
             1141      sellers using the same proprietary system.
             1142          (63) "Model 4 seller" means a seller that is registered under the agreement and is not a
             1143      model 1 seller, model 2 seller, or model 3 seller.



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             1144
         (64) "Modular home" means a modular unit as defined in Section 58-56-3 .
             1145          (65) "Motor vehicle" is as defined in Section 41-1a-102 .
             1146          (66) "Oil shale" means a group of fine black to dark brown shales containing
             1147      bituminous material that yields petroleum upon distillation.
             1148          (67) (a) "Other fuels" means products that burn independently to produce heat or
             1149      energy.
             1150          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1151      personal property.
             1152          (68) (a) "Paging service" means a telecommunications service that provides
             1153      transmission of a coded radio signal for the purpose of activating a specific pager.
             1154          (b) For purposes of Subsection (68)(a), the transmission of a coded radio signal
             1155      includes a transmission by message or sound.
             1156          (69) "Pawnbroker" is as defined in Section 13-32a-102 .
             1157          (70) "Pawn transaction" is as defined in Section 13-32a-102 .
             1158          (71) (a) "Permanently attached to real property" means that for tangible personal
             1159      property attached to real property:
             1160          (i) the attachment of the tangible personal property to the real property:
             1161          (A) is essential to the use of the tangible personal property; and
             1162          (B) suggests that the tangible personal property will remain attached to the real
             1163      property in the same place over the useful life of the tangible personal property; or
             1164          (ii) if the tangible personal property is detached from the real property, the detachment
             1165      would:
             1166          (A) cause substantial damage to the tangible personal property; or
             1167          (B) require substantial alteration or repair of the real property to which the tangible
             1168      personal property is attached.
             1169          (b) "Permanently attached to real property" includes:
             1170          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             1171          (A) essential to the operation of the tangible personal property; and
             1172          (B) attached only to facilitate the operation of the tangible personal property;
             1173          (ii) a temporary detachment of tangible personal property from real property for a
             1174      repair or renovation if the repair or renovation is performed where the tangible personal



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             1175
     property and real property are located; or
             1176          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             1177      Subsection (71)(c)(iii) or (iv).
             1178          (c) "Permanently attached to real property" does not include:
             1179          (i) the attachment of portable or movable tangible personal property to real property if
             1180      that portable or movable tangible personal property is attached to real property only for:
             1181          (A) convenience;
             1182          (B) stability; or
             1183          (C) for an obvious temporary purpose;
             1184          (ii) the detachment of tangible personal property from real property except for the
             1185      detachment described in Subsection (71)(b)(ii);
             1186          (iii) an attachment of the following tangible personal property to real property if the
             1187      attachment to real property is only through a line that supplies water, electricity, gas,
             1188      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             1189      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             1190          (A) a computer;
             1191          (B) a telephone;
             1192          (C) a television; or
             1193          (D) tangible personal property similar to Subsections (71)(c)(iii)(A) through (C) as
             1194      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1195      Administrative Rulemaking Act; or
             1196          (iv) an item listed in Subsection (111)(c).
             1197          (72) "Person" includes any individual, firm, partnership, joint venture, association,
             1198      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             1199      municipality, district, or other local governmental entity of the state, or any group or
             1200      combination acting as a unit.
             1201          (73) "Place of primary use":
             1202          (a) for telecommunications service other than mobile telecommunications service,
             1203      means the street address representative of where the customer's use of the telecommunications
             1204      service primarily occurs, which shall be:
             1205          (i) the residential street address of the customer; or



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             1206
         (ii) the primary business street address of the customer; or
             1207          (b) for mobile telecommunications service, is as defined in the Mobile
             1208      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1209          (74) (a) "Postpaid calling service" means a telecommunications service a person
             1210      obtains by making a payment on a call-by-call basis:
             1211          (i) through the use of a:
             1212          (A) bank card;
             1213          (B) credit card;
             1214          (C) debit card; or
             1215          (D) travel card; or
             1216          (ii) by a charge made to a telephone number that is not associated with the origination
             1217      or termination of the telecommunications service.
             1218          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             1219      service, that would be a prepaid wireless calling service if the service were exclusively a
             1220      telecommunications service.
             1221          (75) "Postproduction" means an activity related to the finishing or duplication of a
             1222      medium described in Subsection 59-12-104 (54)(a).
             1223          (76) "Prepaid calling service" means a telecommunications service:
             1224          (a) that allows a purchaser access to telecommunications service that is exclusively
             1225      telecommunications service;
             1226          (b) that:
             1227          (i) is paid for in advance; and
             1228          (ii) enables the origination of a call using an:
             1229          (A) access number; or
             1230          (B) authorization code;
             1231          (c) that is dialed:
             1232          (i) manually; or
             1233          (ii) electronically; and
             1234          (d) sold in predetermined units or dollars that decline:
             1235          (i) by a known amount; and
             1236          (ii) with use.



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             1237
         (77) "Prepaid wireless calling service" means a telecommunications service:
             1238          (a) that provides the right to utilize:
             1239          (i) mobile wireless service; and
             1240          (ii) other service that is not a telecommunications service, including:
             1241          (A) the download of a product transferred electronically;
             1242          (B) a content service; or
             1243          (C) an ancillary service;
             1244          (b) that:
             1245          (i) is paid for in advance; and
             1246          (ii) enables the origination of a call using an:
             1247          (A) access number; or
             1248          (B) authorization code;
             1249          (c) that is dialed:
             1250          (i) manually; or
             1251          (ii) electronically; and
             1252          (d) sold in predetermined units or dollars that decline:
             1253          (i) by a known amount; and
             1254          (ii) with use.
             1255          (78) (a) "Prepared food" means:
             1256          (i) food:
             1257          (A) sold in a heated state; or
             1258          (B) heated by a seller;
             1259          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1260      item; or
             1261          (iii) except as provided in Subsection (78)(c), food sold with an eating utensil provided
             1262      by the seller, including a:
             1263          (A) plate;
             1264          (B) knife;
             1265          (C) fork;
             1266          (D) spoon;
             1267          (E) glass;



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             1268
         (F) cup;
             1269          (G) napkin; or
             1270          (H) straw.
             1271          (b) "Prepared food" does not include:
             1272          (i) food that a seller only:
             1273          (A) cuts;
             1274          (B) repackages; or
             1275          (C) pasteurizes; or
             1276          (ii) (A) the following:
             1277          (I) raw egg;
             1278          (II) raw fish;
             1279          (III) raw meat;
             1280          (IV) raw poultry; or
             1281          (V) a food containing an item described in Subsections (78)(b)(ii)(A)(I) through (IV);
             1282      and
             1283          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1284      Food and Drug Administration's Food Code that a consumer cook the items described in
             1285      Subsection (78)(b)(ii)(A) to prevent food borne illness; or
             1286          (iii) the following if sold without eating utensils provided by the seller:
             1287          (A) food and food ingredients sold by a seller if the seller's proper primary
             1288      classification under the 2002 North American Industry Classification System of the federal
             1289      Executive Office of the President, Office of Management and Budget, is manufacturing in
             1290      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             1291      Manufacturing;
             1292          (B) food and food ingredients sold in an unheated state:
             1293          (I) by weight or volume; and
             1294          (II) as a single item; or
             1295          (C) a bakery item, including:
             1296          (I) a bagel;
             1297          (II) a bar;
             1298          (III) a biscuit;



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             1299
         (IV) bread;
             1300          (V) a bun;
             1301          (VI) a cake;
             1302          (VII) a cookie;
             1303          (VIII) a croissant;
             1304          (IX) a danish;
             1305          (X) a donut;
             1306          (XI) a muffin;
             1307          (XII) a pastry;
             1308          (XIII) a pie;
             1309          (XIV) a roll;
             1310          (XV) a tart;
             1311          (XVI) a torte; or
             1312          (XVII) a tortilla.
             1313          (c) Notwithstanding Subsection (78)(a)(iii), an eating utensil provided by the seller
             1314      does not include the following used to transport the food:
             1315          (i) a container; or
             1316          (ii) packaging.
             1317          (79) "Prescription" means an order, formula, or recipe that is issued:
             1318          (a) (i) orally;
             1319          (ii) in writing;
             1320          (iii) electronically; or
             1321          (iv) by any other manner of transmission; and
             1322          (b) by a licensed practitioner authorized by the laws of a state.
             1323          (80) (a) Except as provided in Subsection (80)(b)(ii) or (iii), "prewritten computer
             1324      software" means computer software that is not designed and developed:
             1325          (i) by the author or other creator of the computer software; and
             1326          (ii) to the specifications of a specific purchaser.
             1327          (b) "Prewritten computer software" includes:
             1328          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1329      software is not designed and developed:



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             1330
         (A) by the author or other creator of the computer software; and
             1331          (B) to the specifications of a specific purchaser;
             1332          (ii) notwithstanding Subsection (80)(a), computer software designed and developed by
             1333      the author or other creator of the computer software to the specifications of a specific purchaser
             1334      if the computer software is sold to a person other than the purchaser; or
             1335          (iii) notwithstanding Subsection (80)(a) and except as provided in Subsection (80)(c),
             1336      prewritten computer software or a prewritten portion of prewritten computer software:
             1337          (A) that is modified or enhanced to any degree; and
             1338          (B) if the modification or enhancement described in Subsection (80)(b)(iii)(A) is
             1339      designed and developed to the specifications of a specific purchaser.
             1340          (c) Notwithstanding Subsection (80)(b)(iii), "prewritten computer software" does not
             1341      include a modification or enhancement described in Subsection (80)(b)(iii) if the charges for
             1342      the modification or enhancement are:
             1343          (i) reasonable; and
             1344          (ii) separately stated on the invoice or other statement of price provided to the
             1345      purchaser.
             1346          (81) (a) "Private communication service" means a telecommunications service:
             1347          (i) that entitles a customer to exclusive or priority use of one or more communications
             1348      channels between or among termination points; and
             1349          (ii) regardless of the manner in which the one or more communications channels are
             1350      connected.
             1351          (b) "Private communications service" includes the following provided in connection
             1352      with the use of one or more communications channels:
             1353          (i) an extension line;
             1354          (ii) a station;
             1355          (iii) switching capacity; or
             1356          (iv) another associated service that is provided in connection with the use of one or
             1357      more communications channels as defined in Section 59-12-215 .
             1358          (82) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1359          (i) artificially replace a missing portion of the body;
             1360          (ii) prevent or correct a physical deformity or physical malfunction; or



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             1361
         (iii) support a weak or deformed portion of the body.
             1362          (b) "Prosthetic device" includes:
             1363          (i) parts used in the repairs or renovation of a prosthetic device;
             1364          (ii) replacement parts for a prosthetic device;
             1365          (iii) a dental prosthesis; or
             1366          (iv) a hearing aid.
             1367          (c) "Prosthetic device" does not include:
             1368          (i) corrective eyeglasses; or
             1369          (ii) contact lenses.
             1370          (83) (a) "Protective equipment" means an item:
             1371          (i) for human wear; and
             1372          (ii) that is:
             1373          (A) designed as protection:
             1374          (I) to the wearer against injury or disease; or
             1375          (II) against damage or injury of other persons or property; and
             1376          (B) not suitable for general use.
             1377          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1378      commission shall make rules:
             1379          (i) listing the items that constitute "protective equipment"; and
             1380          (ii) that are consistent with the list of items that constitute "protective equipment"
             1381      under the agreement.
             1382          (84) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             1383      printed matter, other than a photocopy:
             1384          (i) regardless of:
             1385          (A) characteristics;
             1386          (B) copyright;
             1387          (C) form;
             1388          (D) format;
             1389          (E) method of reproduction; or
             1390          (F) source; and
             1391          (ii) made available in printed or electronic format.



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             1392
         (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1393      commission may by rule define the term "photocopy."
             1394          (85) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1395          (i) valued in money; and
             1396          (ii) for which tangible personal property, a product transferred electronically, or
             1397      services are:
             1398          (A) sold;
             1399          (B) leased; or
             1400          (C) rented.
             1401          (b) "Purchase price" and "sales price" include:
             1402          (i) the seller's cost of the tangible personal property, a product transferred
             1403      electronically, or services sold;
             1404          (ii) expenses of the seller, including:
             1405          (A) the cost of materials used;
             1406          (B) a labor cost;
             1407          (C) a service cost;
             1408          (D) interest;
             1409          (E) a loss;
             1410          (F) the cost of transportation to the seller; or
             1411          (G) a tax imposed on the seller;
             1412          (iii) a charge by the seller for any service necessary to complete the sale; or
             1413          (iv) consideration a seller receives from a person other than the purchaser if:
             1414          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1415      and
             1416          (II) the consideration described in Subsection (85)(b)(iv)(A)(I) is directly related to a
             1417      price reduction or discount on the sale;
             1418          (B) the seller has an obligation to pass the price reduction or discount through to the
             1419      purchaser;
             1420          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1421      the seller at the time of the sale to the purchaser; and
             1422          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the



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             1423
     seller to claim a price reduction or discount; and
             1424          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1425      coupon, or other documentation with the understanding that the person other than the seller
             1426      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1427          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1428      organization allowed a price reduction or discount, except that a preferred customer card that is
             1429      available to any patron of a seller does not constitute membership in a group or organization
             1430      allowed a price reduction or discount; or
             1431          (III) the price reduction or discount is identified as a third party price reduction or
             1432      discount on the:
             1433          (Aa) invoice the purchaser receives; or
             1434          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1435          (c) "Purchase price" and "sales price" do not include:
             1436          (i) a discount:
             1437          (A) in a form including:
             1438          (I) cash;
             1439          (II) term; or
             1440          (III) coupon;
             1441          (B) that is allowed by a seller;
             1442          (C) taken by a purchaser on a sale; and
             1443          (D) that is not reimbursed by a third party; or
             1444          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1445      provided to the purchaser:
             1446          (A) the following from credit extended on the sale of tangible personal property or
             1447      services:
             1448          (I) a carrying charge;
             1449          (II) a financing charge; or
             1450          (III) an interest charge;
             1451          (B) a delivery charge;
             1452          (C) an installation charge;
             1453          (D) a manufacturer rebate on a motor vehicle; or



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             1454
         (E) a tax or fee legally imposed directly on the consumer.
             1455          (86) "Purchaser" means a person to whom:
             1456          (a) a sale of tangible personal property is made;
             1457          (b) a product is transferred electronically; or
             1458          (c) a service is furnished.
             1459          (87) "Regularly rented" means:
             1460          (a) rented to a guest for value three or more times during a calendar year; or
             1461          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1462      value.
             1463          (88) "Renewable energy" means:
             1464          (a) biomass energy;
             1465          (b) hydroelectric energy;
             1466          (c) geothermal energy;
             1467          (d) solar energy; or
             1468          (e) wind energy.
             1469          (89) (a) "Renewable energy production facility" means a facility that:
             1470          (i) uses renewable energy to produce electricity; and
             1471          (ii) has a production capacity of 20 kilowatts or greater.
             1472          (b) A facility is a renewable energy production facility regardless of whether the
             1473      facility is:
             1474          (i) connected to an electric grid; or
             1475          (ii) located on the premises of an electricity consumer.
             1476          (90) "Rental" is as defined in Subsection (50).
             1477          (91) "Repairs or renovations of tangible personal property" means:
             1478          (a) a repair or renovation of tangible personal property that is not permanently attached
             1479      to real property; or
             1480          (b) attaching tangible personal property or a product that is transferred electronically to
             1481      other tangible personal property if the other tangible personal property to which the tangible
             1482      personal property or product that is transferred electronically is attached is not permanently
             1483      attached to real property.
             1484          (92) "Research and development" means the process of inquiry or experimentation



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             1485
     aimed at the discovery of facts, devices, technologies, or applications and the process of
             1486      preparing those devices, technologies, or applications for marketing.
             1487          (93) (a) "Residential telecommunications services" means a telecommunications
             1488      service or an ancillary service that is provided to an individual for personal use:
             1489          (i) at a residential address; or
             1490          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1491      service or ancillary service is provided to and paid for by the individual residing at the
             1492      institution rather than the institution.
             1493          (b) For purposes of Subsection (93)(a), a residential address includes an:
             1494          (i) apartment; or
             1495          (ii) other individual dwelling unit.
             1496          (94) "Residential use" means the use in or around a home, apartment building, sleeping
             1497      quarters, and similar facilities or accommodations.
             1498          (95) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1499      than:
             1500          (a) resale;
             1501          (b) sublease; or
             1502          (c) subrent.
             1503          (96) (a) "Retailer" means any person engaged in a regularly organized business in
             1504      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1505      who is selling to the user or consumer and not for resale.
             1506          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1507      engaged in the business of selling to users or consumers within the state.
             1508          (97) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1509      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1510      Subsection 59-12-103 (1), for consideration.
             1511          (b) "Sale" includes:
             1512          (i) installment and credit sales;
             1513          (ii) any closed transaction constituting a sale;
             1514          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1515      chapter;



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             1516
         (iv) any transaction if the possession of property is transferred but the seller retains the
             1517      title as security for the payment of the price; and
             1518          (v) any transaction under which right to possession, operation, or use of any article of
             1519      tangible personal property is granted under a lease or contract and the transfer of possession
             1520      would be taxable if an outright sale were made.
             1521          (98) "Sale at retail" is as defined in Subsection (95).
             1522          (99) "Sale-leaseback transaction" means a transaction by which title to tangible
             1523      personal property or a product transferred electronically that is subject to a tax under this
             1524      chapter is transferred:
             1525          (a) by a purchaser-lessee;
             1526          (b) to a lessor;
             1527          (c) for consideration; and
             1528          (d) if:
             1529          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1530      of the tangible personal property or product transferred electronically;
             1531          (ii) the sale of the tangible personal property or product transferred electronically to the
             1532      lessor is intended as a form of financing:
             1533          (A) for the tangible personal property or product transferred electronically; and
             1534          (B) to the purchaser-lessee; and
             1535          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1536      is required to:
             1537          (A) capitalize the tangible personal property or product transferred electronically for
             1538      financial reporting purposes; and
             1539          (B) account for the lease payments as payments made under a financing arrangement.
             1540          (100) "Sales price" is as defined in Subsection (85).
             1541          (101) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1542      amounts charged by a school:
             1543          (i) sales that are directly related to the school's educational functions or activities
             1544      including:
             1545          (A) the sale of:
             1546          (I) textbooks;



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             1547
         (II) textbook fees;
             1548          (III) laboratory fees;
             1549          (IV) laboratory supplies; or
             1550          (V) safety equipment;
             1551          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1552      that:
             1553          (I) a student is specifically required to wear as a condition of participation in a
             1554      school-related event or school-related activity; and
             1555          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1556      place of ordinary clothing;
             1557          (C) sales of the following if the net or gross revenues generated by the sales are
             1558      deposited into a school district fund or school fund dedicated to school meals:
             1559          (I) food and food ingredients; or
             1560          (II) prepared food; or
             1561          (D) transportation charges for official school activities; or
             1562          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1563      event or school-related activity.
             1564          (b) "Sales relating to schools" does not include:
             1565          (i) bookstore sales of items that are not educational materials or supplies;
             1566          (ii) except as provided in Subsection (101)(a)(i)(B):
             1567          (A) clothing;
             1568          (B) clothing accessories or equipment;
             1569          (C) protective equipment; or
             1570          (D) sports or recreational equipment; or
             1571          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1572      event or school-related activity if the amounts paid or charged are passed through to a person:
             1573          (A) other than a:
             1574          (I) school;
             1575          (II) nonprofit organization authorized by a school board or a governing body of a
             1576      private school to organize and direct a competitive secondary school activity; or
             1577          (III) nonprofit association authorized by a school board or a governing body of a



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             1578
     private school to organize and direct a competitive secondary school activity; and
             1579          (B) that is required to collect sales and use taxes under this chapter.
             1580          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1581      commission may make rules defining the term "passed through."
             1582          (102) For purposes of this section and Section 59-12-104 , "school":
             1583          (a) means:
             1584          (i) an elementary school or a secondary school that:
             1585          (A) is a:
             1586          (I) public school; or
             1587          (II) private school; and
             1588          (B) provides instruction for one or more grades kindergarten through 12; or
             1589          (ii) a public school district; and
             1590          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1591          (103) "Seller" means a person that makes a sale, lease, or rental of:
             1592          (a) tangible personal property;
             1593          (b) a product transferred electronically; or
             1594          (c) a service.
             1595          (104) (a) "Semiconductor fabricating, processing, research, or development materials"
             1596      means tangible personal property or a product transferred electronically if the tangible personal
             1597      property or product transferred electronically is:
             1598          (i) used primarily in the process of:
             1599          (A) (I) manufacturing a semiconductor;
             1600          (II) fabricating a semiconductor; or
             1601          (III) research or development of a:
             1602          (Aa) semiconductor; or
             1603          (Bb) semiconductor manufacturing process; or
             1604          (B) maintaining an environment suitable for a semiconductor; or
             1605          (ii) consumed primarily in the process of:
             1606          (A) (I) manufacturing a semiconductor;
             1607          (II) fabricating a semiconductor; or
             1608          (III) research or development of a:



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             1609
         (Aa) semiconductor; or
             1610          (Bb) semiconductor manufacturing process; or
             1611          (B) maintaining an environment suitable for a semiconductor.
             1612          (b) "Semiconductor fabricating, processing, research, or development materials"
             1613      includes:
             1614          (i) parts used in the repairs or renovations of tangible personal property or a product
             1615      transferred electronically described in Subsection (104)(a); or
             1616          (ii) a chemical, catalyst, or other material used to:
             1617          (A) produce or induce in a semiconductor a:
             1618          (I) chemical change; or
             1619          (II) physical change;
             1620          (B) remove impurities from a semiconductor; or
             1621          (C) improve the marketable condition of a semiconductor.
             1622          (105) "Senior citizen center" means a facility having the primary purpose of providing
             1623      services to the aged as defined in Section 62A-3-101 .
             1624          (106) "Simplified electronic return" means the electronic return:
             1625          (a) described in Section 318(C) of the agreement; and
             1626          (b) approved by the governing board of the agreement.
             1627          (107) "Solar energy" means the sun used as the sole source of energy for producing
             1628      electricity.
             1629          (108) (a) "Sports or recreational equipment" means an item:
             1630          (i) designed for human use; and
             1631          (ii) that is:
             1632          (A) worn in conjunction with:
             1633          (I) an athletic activity; or
             1634          (II) a recreational activity; and
             1635          (B) not suitable for general use.
             1636          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1637      commission shall make rules:
             1638          (i) listing the items that constitute "sports or recreational equipment"; and
             1639          (ii) that are consistent with the list of items that constitute "sports or recreational



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             1640
     equipment" under the agreement.
             1641          (109) "State" means the state of Utah, its departments, and agencies.
             1642          (110) "Storage" means any keeping or retention of tangible personal property or any
             1643      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1644      sale in the regular course of business.
             1645          (111) (a) Except as provided in Subsection (111)(d) or (e), "tangible personal property"
             1646      means personal property that:
             1647          (i) may be:
             1648          (A) seen;
             1649          (B) weighed;
             1650          (C) measured;
             1651          (D) felt; or
             1652          (E) touched; or
             1653          (ii) is in any manner perceptible to the senses.
             1654          (b) "Tangible personal property" includes:
             1655          (i) electricity;
             1656          (ii) water;
             1657          (iii) gas;
             1658          (iv) steam; or
             1659          (v) prewritten computer software.
             1660          (c) "Tangible personal property" includes the following regardless of whether the item
             1661      is attached to real property:
             1662          (i) a dishwasher;
             1663          (ii) a dryer;
             1664          (iii) a freezer;
             1665          (iv) a microwave;
             1666          (v) a refrigerator;
             1667          (vi) a stove;
             1668          (vii) a washer; or
             1669          (viii) an item similar to Subsections (111)(c)(i) through (vii) as determined by the
             1670      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative



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             1671
     Rulemaking Act.
             1672          (d) "Tangible personal property" does not include a product that is transferred
             1673      electronically.
             1674          (e) "Tangible personal property" does not include the following if attached to real
             1675      property, regardless of whether the attachment to real property is only through a line that
             1676      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1677      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1678      Rulemaking Act:
             1679          (i) a hot water heater;
             1680          (ii) a water filtration system; or
             1681          (iii) a water softener system.
             1682          (112) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1683      and require further processing other than mechanical blending before becoming finished
             1684      petroleum products.
             1685          (113) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1686      software" means an item listed in Subsection (113)(b) if that item is purchased or leased
             1687      primarily to enable or facilitate one or more of the following to function:
             1688          (i) telecommunications switching or routing equipment, machinery, or software; or
             1689          (ii) telecommunications transmission equipment, machinery, or software.
             1690          (b) The following apply to Subsection (113)(a):
             1691          (i) a pole;
             1692          (ii) software;
             1693          (iii) a supplementary power supply;
             1694          (iv) temperature or environmental equipment or machinery;
             1695          (v) test equipment;
             1696          (vi) a tower; or
             1697          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1698      Subsections (113)(b)(i) through (vi) as determined by the commission by rule made in
             1699      accordance with Subsection (113)(c).
             1700          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1701      commission may by rule define what constitutes equipment, machinery, or software that



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             1702
     functions similarly to an item listed in Subsections (113)(b)(i) through (vi).
             1703          (114) "Telecommunications equipment, machinery, or software required for 911
             1704      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1705      Sec. 20.18.
             1706          (115) "Telecommunications maintenance or repair equipment, machinery, or software"
             1707      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1708      one or more of the following, regardless of whether the equipment, machinery, or software is
             1709      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1710      following:
             1711          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1712          (b) telecommunications switching or routing equipment, machinery, or software; or
             1713          (c) telecommunications transmission equipment, machinery, or software.
             1714          (116) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1715      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1716      among or between points.
             1717          (b) "Telecommunications service" includes:
             1718          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1719      processing application is used to act:
             1720          (A) on the code, form, or protocol of the content;
             1721          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1722          (C) regardless of whether the service:
             1723          (I) is referred to as voice over Internet protocol service; or
             1724          (II) is classified by the Federal Communications Commission as enhanced or value
             1725      added;
             1726          (ii) an 800 service;
             1727          (iii) a 900 service;
             1728          (iv) a fixed wireless service;
             1729          (v) a mobile wireless service;
             1730          (vi) a postpaid calling service;
             1731          (vii) a prepaid calling service;
             1732          (viii) a prepaid wireless calling service; or



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             1733
         (ix) a private communications service.
             1734          (c) "Telecommunications service" does not include:
             1735          (i) advertising, including directory advertising;
             1736          (ii) an ancillary service;
             1737          (iii) a billing and collection service provided to a third party;
             1738          (iv) a data processing and information service if:
             1739          (A) the data processing and information service allows data to be:
             1740          (I) (Aa) acquired;
             1741          (Bb) generated;
             1742          (Cc) processed;
             1743          (Dd) retrieved; or
             1744          (Ee) stored; and
             1745          (II) delivered by an electronic transmission to a purchaser; and
             1746          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1747      or information;
             1748          (v) installation or maintenance of the following on a customer's premises:
             1749          (A) equipment; or
             1750          (B) wiring;
             1751          (vi) Internet access service;
             1752          (vii) a paging service;
             1753          (viii) a product transferred electronically, including:
             1754          (A) music;
             1755          (B) reading material;
             1756          (C) a ring tone;
             1757          (D) software; or
             1758          (E) video;
             1759          (ix) a radio and television audio and video programming service:
             1760          (A) regardless of the medium; and
             1761          (B) including:
             1762          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1763      programming service by a programming service provider;



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             1764
         (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1765          (III) audio and video programming services delivered by a commercial mobile radio
             1766      service provider as defined in 47 C.F.R. Sec. 20.3;
             1767          (x) a value-added nonvoice data service; or
             1768          (xi) tangible personal property.
             1769          (117) (a) "Telecommunications service provider" means a person that:
             1770          (i) owns, controls, operates, or manages a telecommunications service; and
             1771          (ii) engages in an activity described in Subsection (117)(a)(i) for the shared use with or
             1772      resale to any person of the telecommunications service.
             1773          (b) A person described in Subsection (117)(a) is a telecommunications service provider
             1774      whether or not the Public Service Commission of Utah regulates:
             1775          (i) that person; or
             1776          (ii) the telecommunications service that the person owns, controls, operates, or
             1777      manages.
             1778          (118) (a) "Telecommunications switching or routing equipment, machinery, or
             1779      software" means an item listed in Subsection (118)(b) if that item is purchased or leased
             1780      primarily for switching or routing:
             1781          (i) an ancillary service;
             1782          (ii) data communications;
             1783          (iii) voice communications; or
             1784          (iv) telecommunications service.
             1785          (b) The following apply to Subsection (118)(a):
             1786          (i) a bridge;
             1787          (ii) a computer;
             1788          (iii) a cross connect;
             1789          (iv) a modem;
             1790          (v) a multiplexer;
             1791          (vi) plug in circuitry;
             1792          (vii) a router;
             1793          (viii) software;
             1794          (ix) a switch; or



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             1795
         (x) equipment, machinery, or software that functions similarly to an item listed in
             1796      Subsections (118)(b)(i) through (ix) as determined by the commission by rule made in
             1797      accordance with Subsection (118)(c).
             1798          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1799      commission may by rule define what constitutes equipment, machinery, or software that
             1800      functions similarly to an item listed in Subsections (118)(b)(i) through (ix).
             1801          (119) (a) "Telecommunications transmission equipment, machinery, or software"
             1802      means an item listed in Subsection (119)(b) if that item is purchased or leased primarily for
             1803      sending, receiving, or transporting:
             1804          (i) an ancillary service;
             1805          (ii) data communications;
             1806          (iii) voice communications; or
             1807          (iv) telecommunications service.
             1808          (b) The following apply to Subsection (119)(a):
             1809          (i) an amplifier;
             1810          (ii) a cable;
             1811          (iii) a closure;
             1812          (iv) a conduit;
             1813          (v) a controller;
             1814          (vi) a duplexer;
             1815          (vii) a filter;
             1816          (viii) an input device;
             1817          (ix) an input/output device;
             1818          (x) an insulator;
             1819          (xi) microwave machinery or equipment;
             1820          (xii) an oscillator;
             1821          (xiii) an output device;
             1822          (xiv) a pedestal;
             1823          (xv) a power converter;
             1824          (xvi) a power supply;
             1825          (xvii) a radio channel;



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             1826
         (xviii) a radio receiver;
             1827          (xix) a radio transmitter;
             1828          (xx) a repeater;
             1829          (xxi) software;
             1830          (xxii) a terminal;
             1831          (xxiii) a timing unit;
             1832          (xxiv) a transformer;
             1833          (xxv) a wire; or
             1834          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1835      Subsections (119)(b)(i) through (xxv) as determined by the commission by rule made in
             1836      accordance with Subsection (119)(c).
             1837          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1838      commission may by rule define what constitutes equipment, machinery, or software that
             1839      functions similarly to an item listed in Subsections (119)(b)(i) through (xxv).
             1840          (120) "Tobacco" means:
             1841          (a) a cigarette;
             1842          (b) a cigar;
             1843          (c) chewing tobacco;
             1844          (d) pipe tobacco; or
             1845          (e) any other item that contains tobacco.
             1846          (121) "Unassisted amusement device" means an amusement device, skill device, or
             1847      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1848      the amusement device, skill device, or ride device.
             1849          (122) (a) "Use" means the exercise of any right or power over tangible personal
             1850      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1851      incident to the ownership or the leasing of that tangible personal property, product transferred
             1852      electronically, or service.
             1853          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1854      property, a product transferred electronically, or a service in the regular course of business and
             1855      held for resale.
             1856          (123) "Value-added nonvoice data service" means a service:



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             1857
         (a) that otherwise meets the definition of a telecommunications service except that a
             1858      computer processing application is used to act primarily for a purpose other than conveyance,
             1859      routing, or transmission; and
             1860          (b) with respect to which a computer processing application is used to act on data or
             1861      information:
             1862          (i) code;
             1863          (ii) content;
             1864          (iii) form; or
             1865          (iv) protocol.
             1866          (124) (a) Subject to Subsection (124)(b), "vehicle" means the following that are
             1867      required to be titled, registered, or titled and registered:
             1868          (i) an aircraft as defined in Section 72-10-102 ;
             1869          (ii) a vehicle as defined in Section 41-1a-102 ;
             1870          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1871          (iv) a vessel as defined in Section 41-1a-102 .
             1872          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1873          (i) a vehicle described in Subsection (124)(a); or
             1874          (ii) (A) a locomotive;
             1875          (B) a freight car;
             1876          (C) railroad work equipment; or
             1877          (D) other railroad rolling stock.
             1878          (125) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1879      exchanging a vehicle as defined in Subsection (124).
             1880          (126) (a) "Vertical service" means an ancillary service that:
             1881          (i) is offered in connection with one or more telecommunications services; and
             1882          (ii) offers an advanced calling feature that allows a customer to:
             1883          (A) identify a caller; and
             1884          (B) manage multiple calls and call connections.
             1885          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1886      conference bridging service.
             1887          (127) (a) "Voice mail service" means an ancillary service that enables a customer to



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             1888
     receive, send, or store a recorded message.
             1889          (b) "Voice mail service" does not include a vertical service that a customer is required
             1890      to have in order to utilize a voice mail service.
             1891          (128) (a) Except as provided in Subsection (128)(b), "waste energy facility" means a
             1892      facility that generates electricity:
             1893          (i) using as the primary source of energy waste materials that would be placed in a
             1894      landfill or refuse pit if it were not used to generate electricity, including:
             1895          (A) tires;
             1896          (B) waste coal; or
             1897          (C) oil shale; and
             1898          (ii) in amounts greater than actually required for the operation of the facility.
             1899          (b) "Waste energy facility" does not include a facility that incinerates:
             1900          (i) municipal solid waste;
             1901          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1902          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1903          (129) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1904          (130) "Wind energy" means wind used as the sole source of energy to produce
             1905      electricity.
             1906          (131) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1907      location by the United States Postal Service.
             1908          Section 5. Section 59-12-103 is amended to read:
             1909           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1910      tax revenues.
             1911          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1912      charged for the following transactions:
             1913          (a) retail sales of tangible personal property made within the state;
             1914          (b) amounts paid for:
             1915          (i) telecommunications service, other than mobile telecommunications service, that
             1916      originates and terminates within the boundaries of this state;
             1917          (ii) mobile telecommunications service that originates and terminates within the
             1918      boundaries of one state only to the extent permitted by the Mobile Telecommunications



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             1919
     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1920          (iii) an ancillary service associated with a:
             1921          (A) telecommunications service described in Subsection (1)(b)(i); or
             1922          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             1923          (c) sales of the following for commercial use:
             1924          (i) gas;
             1925          (ii) electricity;
             1926          (iii) heat;
             1927          (iv) coal;
             1928          (v) fuel oil; or
             1929          (vi) other fuels;
             1930          (d) sales of the following for residential use:
             1931          (i) gas;
             1932          (ii) electricity;
             1933          (iii) heat;
             1934          (iv) coal;
             1935          (v) fuel oil; or
             1936          (vi) other fuels;
             1937          (e) sales of prepared food;
             1938          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1939      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1940      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             1941      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1942      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             1943      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             1944      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1945      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             1946      exhibition, cultural, or athletic activity;
             1947          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1948      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1949          (i) the tangible personal property; and



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             1950
         (ii) parts used in the repairs or renovations of the tangible personal property described
             1951      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1952      of that tangible personal property;
             1953          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             1954      assisted cleaning or washing of tangible personal property;
             1955          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             1956      accommodations and services that are regularly rented for less than 30 consecutive days;
             1957          (j) amounts paid or charged for laundry or dry cleaning services;
             1958          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1959      this state the tangible personal property is:
             1960          (i) stored;
             1961          (ii) used; or
             1962          (iii) otherwise consumed;
             1963          (l) amounts paid or charged for tangible personal property if within this state the
             1964      tangible personal property is:
             1965          (i) stored;
             1966          (ii) used; or
             1967          (iii) consumed; and
             1968          (m) amounts paid or charged for a sale:
             1969          (i) (A) of a product that:
             1970          (I) is transferred electronically; and
             1971          (II) would be subject to a tax under this chapter if the product was transferred in a
             1972      manner other than electronically; or
             1973          (B) of a repair or renovation of a product that:
             1974          (I) is transferred electronically; and
             1975          (II) would be subject to a tax under this chapter if the product was transferred in a
             1976      manner other than electronically; and
             1977          (ii) regardless of whether the sale provides:
             1978          (A) a right of permanent use of the product; or
             1979          (B) a right to use the product that is less than a permanent use, including a right:
             1980          (I) for a definite or specified length of time; and



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             1981
         (II) that terminates upon the occurrence of a condition.
             1982          (2) (a) Except as provided in [Subsections (2)(b) through (e)] Subsection (2)(b) or (c),
             1983      a state tax and a local tax is imposed on a transaction described in Subsection (1) equal to the
             1984      sum of:
             1985          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1986          (A) [4.70%] S. [ 4.40% ] S. [ 4.38% ] 4.35% .S .S ; and
             1987          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             1988      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1989      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             1990      State Sales and Use Tax Act; and
             1991          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1992      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1993      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             1994      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1995          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1996      transaction under this chapter other than this part.
             1997          (b) Except as provided in Subsection (2)[(d) or (e)](c), a state tax and a local tax is
             1998      imposed on a transaction described in Subsection (1)(d) equal to the sum of:
             1999          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             2000          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2001      transaction under this chapter other than this part.
             2002          [(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is
             2003      imposed on amounts paid or charged for food and food ingredients equal to the sum of:]
             2004          [(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             2005      a tax rate of 1.75%; and]
             2006          [(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2007      amounts paid or charged for food and food ingredients under this chapter other than this part.]
             2008          [(d) (i) For a bundled transaction that is attributable to food and food ingredients and
             2009      tangible personal property other than food and food ingredients, a state tax and a local tax is
             2010      imposed on the entire bundled transaction equal to the sum of:]
             2011          [(A) a state tax imposed on the entire bundled transaction equal to the sum of:]



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             2012
         [(I) the tax rate described in Subsection (2)(a)(i)(A); and]
             2013          [(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             2014      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             2015      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             2016      Additional State Sales and Use Tax Act; and]
             2017          [(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             2018      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             2019      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             2020      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and]
             2021          [(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             2022      described in Subsection (2)(a)(ii).]
             2023          [(ii)] (c) (i) Subject to Subsection (2)[(d)(iii)](c)(ii), for a bundled transaction [other
             2024      than a bundled transaction described in Subsection (2)(d)(i)]:
             2025          (A) if the sales price of the bundled transaction is attributable to tangible personal
             2026      property, a product, or a service that is subject to taxation under this chapter and tangible
             2027      personal property, a product, or service that is not subject to taxation under this chapter, the
             2028      entire bundled transaction is subject to taxation under this chapter unless:
             2029          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             2030      personal property, product, or service that is not subject to taxation under this chapter from the
             2031      books and records the seller keeps in the seller's regular course of business; or
             2032          (II) state or federal law provides otherwise; or
             2033          (B) if the sales price of a bundled transaction is attributable to two or more items of
             2034      tangible personal property, products, or services that are subject to taxation under this chapter
             2035      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             2036      higher tax rate unless:
             2037          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             2038      personal property, product, or service that is subject to taxation under this chapter at the lower
             2039      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             2040          (II) state or federal law provides otherwise.
             2041          [(iii)] (ii) For purposes of Subsection (2)[(d)(ii)](c)(i), books and records that a seller
             2042      keeps in the seller's regular course of business includes books and records the seller keeps in



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             2043
     the regular course of business for nontax purposes.
             2044          [(e)] (d) Subject to Subsections (2)[(f) and (g)](e) and (f), a tax rate repeal or tax rate
             2045      change for a tax rate imposed under the following shall take effect on the first day of a calendar
             2046      quarter:
             2047          (i) Subsection (2)(a)(i)(A); or
             2048          (ii) Subsection (2)(b)(i)[;].
             2049          [(iii) Subsection (2)(c)(i); or]
             2050          [(iv) Subsection (2)(d)(i)(A)(I).]
             2051          [(f)] (e) (i) A tax rate increase shall take effect on the first day of the first billing period
             2052      that begins after the effective date of the tax rate increase if the billing period for the
             2053      transaction begins before the effective date of a tax rate increase imposed under:
             2054          (A) Subsection (2)(a)(i)(A); or
             2055          (B) Subsection (2)(b)(i)[;].
             2056          [(C) Subsection (2)(c)(i); or]
             2057          [(D) Subsection (2)(d)(i)(A)(I).]
             2058          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2059      billing period that began before the effective date of the repeal of the tax or the tax rate
             2060      decrease if the billing period for the transaction begins before the effective date of the repeal of
             2061      the tax or the tax rate decrease imposed under:
             2062          (A) Subsection (2)(a)(i)(A); or
             2063          (B) Subsection (2)(b)(i)[;].
             2064          [(C) Subsection (2)(c)(i); or]
             2065          [(D) Subsection (2)(d)(i)(A)(I).]
             2066          [(g)] (f) (i) For a tax rate described in Subsection (2)[(g)](f)(ii), if a tax due on a
             2067      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
             2068      tax rate repeal or change in a tax rate takes effect:
             2069          (A) on the first day of a calendar quarter; and
             2070          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             2071          (ii) Subsection (2)[(g)](f)(i) applies to the tax rates described in the following:
             2072          (A) Subsection (2)(a)(i)(A); or
             2073          (B) Subsection (2)(b)(i)[;].



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             2074
         [(C) Subsection (2)(c)(i); or]
             2075          [(D) Subsection (2)(d)(i)(A)(I).]
             2076          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2077      the commission may by rule define the term "catalogue sale."
             2078          (3) (a) The following state taxes shall be deposited into the General Fund:
             2079          (i) the tax imposed by Subsection (2)(a)(i)(A); and
             2080          (ii) the tax imposed by Subsection (2)(b)(i)[;].
             2081          [(iii) the tax imposed by Subsection (2)(c)(i); or]
             2082          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             2083          (b) The following local taxes shall be distributed to a county, city, or town as provided
             2084      in this chapter:
             2085          (i) the tax imposed by Subsection (2)(a)(ii); and
             2086          (ii) the tax imposed by Subsection (2)(b)(ii)[;].
             2087          [(iii) the tax imposed by Subsection (2)(c)(ii); and]
             2088          [(iv) the tax imposed by Subsection (2)(d)(i)(B).]
             2089          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2090      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             2091      through (g):
             2092          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             2093          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             2094          (B) for the fiscal year; or
             2095          (ii) $17,500,000.
             2096          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             2097      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             2098      Department of Natural Resources to:
             2099          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             2100      protect sensitive plant and animal species; or
             2101          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             2102      act, to political subdivisions of the state to implement the measures described in Subsections
             2103      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             2104          (ii) Money transferred to the Department of Natural Resources under Subsection



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             2105
     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             2106      person to list or attempt to have listed a species as threatened or endangered under the
             2107      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             2108          (iii) At the end of each fiscal year:
             2109          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             2110      Conservation and Development Fund created in Section 73-10-24 ;
             2111          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             2112      Program Subaccount created in Section 73-10c-5 ; and
             2113          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             2114      Program Subaccount created in Section 73-10c-5 .
             2115          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             2116      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             2117      created in Section 4-18-6 .
             2118          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             2119      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             2120      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             2121      water rights.
             2122          (ii) At the end of each fiscal year:
             2123          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             2124      Conservation and Development Fund created in Section 73-10-24 ;
             2125          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             2126      Program Subaccount created in Section 73-10c-5 ; and
             2127          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             2128      Program Subaccount created in Section 73-10c-5 .
             2129          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             2130      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             2131      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             2132          (ii) In addition to the uses allowed of the Water Resources Conservation and
             2133      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             2134      Development Fund may also be used to:
             2135          (A) conduct hydrologic and geotechnical investigations by the Division of Water



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             2136
     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             2137      quantifying surface and ground water resources and describing the hydrologic systems of an
             2138      area in sufficient detail so as to enable local and state resource managers to plan for and
             2139      accommodate growth in water use without jeopardizing the resource;
             2140          (B) fund state required dam safety improvements; and
             2141          (C) protect the state's interest in interstate water compact allocations, including the
             2142      hiring of technical and legal staff.
             2143          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             2144      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             2145      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             2146          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             2147      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             2148      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             2149          (i) provide for the installation and repair of collection, treatment, storage, and
             2150      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             2151          (ii) develop underground sources of water, including springs and wells; and
             2152          (iii) develop surface water sources.
             2153          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2154      2006, the difference between the following amounts shall be expended as provided in this
             2155      Subsection (5), if that difference is greater than $1:
             2156          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             2157      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             2158          (ii) $17,500,000.
             2159          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             2160          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             2161      credits; and
             2162          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             2163      restoration.
             2164          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             2165      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             2166      created in Section 73-10-24 .



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             2167
         (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             2168      remaining difference described in Subsection (5)(a) shall be:
             2169          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             2170      credits; and
             2171          (B) expended by the Division of Water Resources for cloud-seeding projects
             2172      authorized by Title 73, Chapter 15, Modification of Weather.
             2173          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             2174      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             2175      created in Section 73-10-24 .
             2176          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             2177      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             2178      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             2179      Division of Water Resources for:
             2180          (i) preconstruction costs:
             2181          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             2182      26, Bear River Development Act; and
             2183          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             2184      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             2185          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             2186      Chapter 26, Bear River Development Act;
             2187          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             2188      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             2189          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             2190      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             2191          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             2192      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             2193          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             2194      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             2195      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             2196      incurred for employing additional technical staff for the administration of water rights.
             2197          (g) At the end of each fiscal year, any unexpended dedicated credits described in



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             2198
     Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             2199      Fund created in Section 73-10-24 .
             2200          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2201      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             2202      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             2203      the Transportation Fund created by Section 72-2-102 .
             2204          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             2205      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             2206      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             2207      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             2208      transactions under Subsection (1).
             2209          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             2210      have been paid off and the highway projects completed that are intended to be paid from
             2211      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             2212      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             2213      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             2214      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             2215      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             2216          [(8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             2217      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             2218      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             2219      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             2220      following taxes, which represents a portion of the approximately 17% of sales and use tax
             2221      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:]
             2222          [(i) the tax imposed by Subsection (2)(a)(i)(A);]
             2223          [(ii) the tax imposed by Subsection (2)(b)(i);]
             2224          [(iii) the tax imposed by Subsection (2)(c)(i); and]
             2225          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             2226          [(b)] (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             2227      Subsection (7)(a), and until Subsection (8)[(c)](b) applies, for a fiscal year beginning on or
             2228      after July 1, 2011, the Division of Finance shall deposit into the Centennial Highway Fund



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Senate 3rd Reading Amendments 2-28-2011 rd/rlr
             2229
     Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             2230      (3)(a) equal to [8.3%] S. [ 7.6% ] 8.3% .S of the revenues collected from the following taxes, which
             2231      represents a portion of the approximately 17% of sales and use tax revenues generated annually
             2232      by the sales and use tax on vehicles and vehicle-related products:
             2233          (i) the tax imposed by Subsection (2)(a)(i)(A); and
             2234          (ii) the tax imposed by Subsection (2)(b)(i)[;].
             2235          [(iii) the tax imposed by Subsection (2)(c)(i); and]
             2236          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             2237          [(c)] (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited
             2238      under Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             2239      highway projects completed that are intended to be paid from revenues deposited in the
             2240      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             2241      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             2242      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             2243      listed under Subsection (3)(a) equal to [8.3%] S. [ 7.6% ] 8.3% .S of the revenues collected from the
             2244      following taxes, which represents a portion of the approximately 17% of sales and use tax
             2245      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             2246          (i) the tax imposed by Subsection (2)(a)(i)(A); and
             2247          (ii) the tax imposed by Subsection (2)(b)(i)[;].
             2248          [(iii) the tax imposed by Subsection (2)(c)(i); and]
             2249          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             2250          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             2251      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             2252      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             2253          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             2254      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             2255      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             2256      Critical Highway Needs Fund created by Section 72-2-125 .
             2257          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             2258      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             2259      have been paid off and the highway projects completed that are included in the prioritized



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             2260
     project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             2261      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             2262      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             2263      of 2005 created by Section 72-2-124 .
             2264          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             2265      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             2266      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             2267          (11) (a) [(i)] Notwithstanding Subsection (3)(a), [except as provided in Subsection
             2268      (11)(a)(ii), and] until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             2269      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             2270      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2271      Subsection (1).
             2272          [(ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit
             2273      into the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged
             2274      for food and food ingredients, except for tax revenue generated by a bundled transaction
             2275      attributable to food and food ingredients and tangible personal property other than food and
             2276      food ingredients described in Subsection (2)(e).]
             2277          (b) [(i)] Notwithstanding Subsection (3)(a), [except as provided in Subsection
             2278      (11)(b)(ii),] and in addition to any amounts deposited under Subsections (7), (9), and (10),
             2279      when the general obligation bonds authorized by Section 63B-16-101 have been paid off and
             2280      the highway projects completed that are included in the prioritized project list under Subsection
             2281      72-2-125 (4) as determined in accordance with Subsection 72-2-125 (6), the Division of Finance
             2282      shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             2283      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2284      Subsection (1).
             2285          [(ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit
             2286      into the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             2287      charged for food and food ingredients, except for tax revenue generated by a bundled
             2288      transaction attributable to food and food ingredients and tangible personal property other than
             2289      food and food ingredients described in Subsection (2)(e).]
             2290          (12) [(a)] Notwithstanding Subsection (3)(a), [and except as provided in Subsection



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             2291
     (12)(b),] beginning on January 1, 2009, the Division of Finance shall deposit into the
             2292      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             2293      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             2294      chokepoints in construction management.
             2295          [(b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             2296      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             2297      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             2298      and food ingredients and tangible personal property other than food and food ingredients
             2299      described in Subsection (2)(e).]
             2300          Section 6. Section 59-12-104.2 is amended to read:
             2301           59-12-104.2. Exemption for accommodations and services taxed by the Navajo
             2302      Nation.
             2303          (1) As used in this section "tribal taxing area" means the geographical area that:
             2304          (a) is subject to the taxing authority of the Navajo Nation; and
             2305          (b) consists of:
             2306          (i) notwithstanding the issuance of a patent, all land:
             2307          (A) within the limits of an Indian reservation under the jurisdiction of the federal
             2308      government; and
             2309          (B) including any rights-of-way running through the reservation; and
             2310          (ii) all Indian allotments the Indian titles to which have not been extinguished,
             2311      including any rights-of-way running through an Indian allotment.
             2312          (2) (a) Beginning July 1, 2001, amounts paid by or charged to a purchaser for
             2313      accommodations and services described in Subsection 59-12-103 (1)(i) are exempt from the tax
             2314      imposed by Subsection 59-12-103 (2)(a)(i)(A) [or (2)(d)(i)(A)(I)] to the extent permitted under
             2315      Subsection (2)(b) if:
             2316          (i) the accommodations and services described in Subsection 59-12-103 (1)(i) are
             2317      provided within:
             2318          (A) the state; and
             2319          (B) a tribal taxing area;
             2320          (ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to
             2321      the purchaser for the accommodations and services described in Subsection 59-12-103 (1)(i);



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             2322
         (iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without
             2323      regard to whether or not the purchaser that pays or is charged for the accommodations and
             2324      services is an enrolled member of the Navajo Nation; and
             2325          (iv) the requirements of Subsection (4) are met.
             2326          (b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for
             2327      accommodations and services described in Subsection (2)(a) are subject to a tax imposed by
             2328      Subsection 59-12-103 (2)(a)(i)(A) [or (2)(d)(i)(A)(I)]:
             2329          (i) the seller shall collect and pay to the state the difference described in Subsection (3)
             2330      if that difference is greater than $0; and
             2331          (ii) a person may not require the state to provide a refund, a credit, or similar tax relief
             2332      if the difference described in Subsection (3) is equal to or less than $0.
             2333          (3) The difference described in Subsection (2)(b) is equal to the difference between:
             2334          (a) the amount of tax imposed by Subsection 59-12-103 (2)(a)(i)(A) [or (2)(d)(i)(A)(I)]
             2335      on the amounts paid by or charged to a purchaser for accommodations and services described
             2336      in Subsection 59-12-103 (1)(i); less
             2337          (b) the tax imposed and collected by the Navajo Nation on the amounts paid by or
             2338      charged to a purchaser for the accommodations and services described in Subsection
             2339      59-12-103 (1)(i).
             2340          (4) (a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax
             2341      imposed on amounts paid by or charged to a purchaser for accommodations and services
             2342      described in Subsection 59-12-103 (1)(i), any change in the amount of the exemption under
             2343      Subsection (2) as a result of the change in the tax rate is not effective until the first day of the
             2344      calendar quarter after a 90-day period beginning on the date the commission receives notice
             2345      meeting the requirements of Subsection (4)(b) from the Navajo Nation.
             2346          (b) The notice described in Subsection (4)(a) shall state:
             2347          (i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             2348      amounts paid by or charged to a purchaser for accommodations and services described in
             2349      Subsection 59-12-103 (1)(i);
             2350          (ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i);
             2351      and
             2352          (iii) the new rate of the tax described in Subsection (4)(b)(i).



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             2353
         (5) Beginning with the 2006 interim, the Revenue and Taxation Interim Committee:
             2354          (a) shall review the exemption provided for in this section one or more times every five
             2355      years;
             2356          (b) shall determine on or before the November interim meeting of the year in which the
             2357      Revenue and Taxation Interim Committee reviews the exemption provided for in this section
             2358      whether the exemption should be:
             2359          (i) continued;
             2360          (ii) modified; or
             2361          (iii) repealed; and
             2362          (c) may review any other issue related to the exemption provided for in this section as
             2363      determined by the Revenue and Taxation Interim Committee.
             2364          Section 7. Section 59-12-108 is amended to read:
             2365           59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
             2366      Certain amounts allocated to local taxing jurisdictions.
             2367          (1) (a) Notwithstanding Section 59-12-107 , a seller that has a tax liability under this
             2368      chapter of $50,000 or more for the previous calendar year shall:
             2369          (i) file a return with the commission:
             2370          (A) monthly on or before the last day of the month immediately following the month
             2371      for which the seller collects a tax under this chapter; and
             2372          (B) for the month for which the seller collects a tax under this chapter; and
             2373          (ii) except as provided in Subsection (1)(b), remit with the return required by
             2374      Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
             2375      fee, or charge described in Subsection (1)(c):
             2376          (A) if that seller's tax liability under this chapter for the previous calendar year is less
             2377      than $96,000, by any method permitted by the commission; or
             2378          (B) if that seller's tax liability under this chapter for the previous calendar year is
             2379      $96,000 or more, by electronic funds transfer.
             2380          (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
             2381      the amount the seller is required to remit to the commission for each tax, fee, or charge
             2382      described in Subsection (1)(c) if that seller:
             2383          (i) is required by Section 59-12-107 to file the return electronically; or



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             2384
         (ii) (A) is required to collect and remit a tax under Subsection 59-12-107 (1)(a); and
             2385          (B) files a simplified electronic return.
             2386          (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
             2387          (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             2388          (ii) a fee under Section 19-6-716 ;
             2389          (iii) a fee under Section 19-6-805 ;
             2390          (iv) a charge under Section 69-2-5 ;
             2391          (v) a charge under Section 69-2-5.5 ;
             2392          (vi) a charge under Section 69-2-5.6 ; or
             2393          (vii) a tax under this chapter.
             2394          (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
             2395      Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
             2396      for making same-day payments other than by electronic funds transfer if making payments by
             2397      electronic funds transfer fails.
             2398          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2399      commission shall establish by rule procedures and requirements for determining the amount a
             2400      seller is required to remit to the commission under this Subsection (1).
             2401          (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
             2402      seller described in Subsection (4) may retain each month the amount allowed by this
             2403      Subsection (2).
             2404          (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
             2405      each month 1.31% of any amounts the seller is required to remit to the commission:
             2406          (i) for a transaction described in Subsection 59-12-103 (1) that is subject to a state tax
             2407      and a local tax imposed in accordance with the following, for the month for which the seller is
             2408      filing a return in accordance with Subsection (1):
             2409          (A) Subsection 59-12-103 (2)(a); and
             2410          (B) Subsection 59-12-103 (2)(b); and
             2411          [(C) Subsection 59-12-103 (2)(d); and]
             2412          (ii) for an agreement sales and use tax.
             2413          [(c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             2414      retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described



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             2415
     in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed in
             2416      accordance with Subsection 59-12-103 (2)(c).]
             2417          [(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
             2418      equal to the sum of:]
             2419          [(A) 1.31% of any amounts the seller is required to remit to the commission for:]
             2420          [(I) the state tax and the local tax imposed in accordance with Subsection
             2421      59-12-103 (2)(c);]
             2422          [(II) the month for which the seller is filing a return in accordance with Subsection (1);
             2423      and]
             2424          [(III) an agreement sales and use tax; and]
             2425          [(B) 1.31% of the difference between:]
             2426          [(I) the amounts the seller would have been required to remit to the commission:]
             2427          [(Aa) in accordance with Subsection 59-12-103 (2)(a) if the transaction had been
             2428      subject to the state tax and the local tax imposed in accordance with Subsection
             2429      59-12-103 (2)(a);]
             2430          [(Bb) for the month for which the seller is filing a return in accordance with Subsection
             2431      (1); and]
             2432          [(Cc) for an agreement sales and use tax; and]
             2433          [(II) the amounts the seller is required to remit to the commission for:]
             2434          [(Aa) the state tax and the local tax imposed in accordance with Subsection
             2435      59-12-103 (2)(c);]
             2436          [(Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             2437      and]
             2438          [(Cc) an agreement sales and use tax.]
             2439          [(d)] (c) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             2440      retain each month 1% of any amounts the seller is required to remit to the commission:
             2441          (i) for the month for which the seller is filing a return in accordance with Subsection
             2442      (1); and
             2443          (ii) under:
             2444          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             2445          (B) Subsection 59-12-603 (1)(a)(i)(A); or



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             2446
         (C) Subsection 59-12-603 (1)(a)(i)(B).
             2447          (3) A state government entity that is required to remit taxes monthly in accordance
             2448      with Subsection (1) may not retain any amount under Subsection (2).
             2449          (4) A seller that has a tax liability under this chapter for the previous calendar year of
             2450      less than $50,000 may:
             2451          (a) voluntarily meet the requirements of Subsection (1); and
             2452          (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
             2453      amounts allowed by Subsection (2).
             2454          (5) Penalties for late payment shall be as provided in Section 59-1-401 .
             2455          (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
             2456      to the commission under this part, the commission shall each month calculate an amount equal
             2457      to the difference between:
             2458          (i) the total amount retained for that month by all sellers had the [percentages]
             2459      percentage listed under [Subsections] Subsection (2)(b) [and (2)(c)(ii)] been 1.5%; and
             2460          (ii) the total amount retained for that month by all sellers at the [percentages]
             2461      percentage listed under [Subsections] Subsection (2)(b) [and (2)(c)(ii)].
             2462          (b) The commission shall each month allocate the amount calculated under Subsection
             2463      (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
             2464      tax that the commission distributes to each county, city, and town for that month compared to
             2465      the total agreement sales and use tax that the commission distributes for that month to all
             2466      counties, cities, and towns.
             2467          (c) The amount the commission calculates under Subsection (6)(a) may not include an
             2468      amount collected from a tax that:
             2469          (i) the state imposes within a county, city, or town, including the unincorporated area
             2470      of a county; and
             2471          (ii) is not imposed within the entire state.
             2472          Section 8. Section 59-12-401 is amended to read:
             2473           59-12-401. Resort communities tax authority for cities, towns, and military
             2474      installation development authority -- Base -- Rate -- Collection fees.
             2475          (1) (a) In addition to other sales and use taxes, a city or town in which the transient
             2476      room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the



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             2477
     municipality's permanent census population may impose a sales and use tax of up to 1.1% on
             2478      the transactions described in Subsection 59-12-103 (1) located within the city or town.
             2479          (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
             2480      section on:
             2481          (i) the sale of:
             2482          (A) a motor vehicle;
             2483          (B) an aircraft;
             2484          (C) a watercraft;
             2485          (D) a modular home;
             2486          (E) a manufactured home; or
             2487          (F) a mobile home; or
             2488          (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2489      are exempt from taxation under Section 59-12-104 [; and].
             2490          [(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
             2491      food ingredients.]
             2492          (c) For purposes of this Subsection (1), the location of a transaction shall be
             2493      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2494          [(d) A city or town imposing a tax under this section shall impose the tax on amounts
             2495      paid or charged for food and food ingredients if the food and food ingredients are sold as part
             2496      of a bundled transaction attributable to food and food ingredients and tangible personal
             2497      property other than food and food ingredients.]
             2498          (2) (a) An amount equal to the total of any costs incurred by the state in connection
             2499      with the implementation of Subsection (1) which exceed, in any year, the revenues received by
             2500      the state from its collection fees received in connection with the implementation of Subsection
             2501      (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
             2502      provided for in Subsection (1).
             2503          (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
             2504      those cities and towns according to the amount of revenue the respective cities and towns
             2505      generate in that year through imposition of that tax.
             2506          (3) (a) Subject to 63H-1-203 , the military installation development authority created in
             2507      Section 63H-1-201 may impose a tax under this section on the transactions described in



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             2508
     Subsection 59-12-103 (1) located within a project area described in a project area plan adopted
             2509      by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act,
             2510      as though the authority were a city or a town.
             2511          (b) For purposes of calculating the permanent census population within a project area,
             2512      the board as defined in Section 63H-1-102 shall:
             2513          (i) count the population;
             2514          (ii) adopt a resolution verifying the population number; and
             2515          (iii) provide the commission any information required in Section 59-12-405 .
             2516          Section 9. Section 59-12-402 is amended to read:
             2517           59-12-402. Additional resort communities sales and use tax -- Base -- Rate --
             2518      Collection fees -- Resolution and voter approval requirements -- Election requirements --
             2519      Notice requirements -- Ordinance requirements -- Prohibition of military installation
             2520      development authority.
             2521          (1) (a) Subject to Subsections (2) through (6), the governing body of a municipality in
             2522      which the transient room capacity as defined in Section 59-12-405 is greater than or equal to
             2523      66% of the municipality's permanent census population may, in addition to the sales tax
             2524      authorized under Section 59-12-401 , impose an additional resort communities sales tax in an
             2525      amount that is less than or equal to .5% on the transactions described in Subsection
             2526      59-12-103 (1) located within the municipality.
             2527          (b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
             2528      impose a tax under this section on:
             2529          (i) the sale of:
             2530          (A) a motor vehicle;
             2531          (B) an aircraft;
             2532          (C) a watercraft;
             2533          (D) a modular home;
             2534          (E) a manufactured home; or
             2535          (F) a mobile home; or
             2536          (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2537      are exempt from taxation under Section 59-12-104 [; and].
             2538          [(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and



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             2539
     food ingredients.]
             2540          (c) For purposes of this Subsection (1), the location of a transaction shall be
             2541      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2542          [(d) A municipality imposing a tax under this section shall impose the tax on amounts
             2543      paid or charged for food and food ingredients if the food and food ingredients are sold as part
             2544      of a bundled transaction attributable to food and food ingredients and tangible personal
             2545      property other than food and food ingredients.]
             2546          (2) (a) An amount equal to the total of any costs incurred by the state in connection
             2547      with the implementation of Subsection (1) which exceed, in any year, the revenues received by
             2548      the state from its collection fees received in connection with the implementation of Subsection
             2549      (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
             2550      provided for in Subsection (1).
             2551          (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
             2552      those cities and towns according to the amount of revenue the respective cities and towns
             2553      generate in that year through imposition of that tax.
             2554          (3) To impose an additional resort communities sales tax under this section, the
             2555      governing body of the municipality shall:
             2556          (a) pass a resolution approving the tax; and
             2557          (b) except as provided in Subsection (6), obtain voter approval for the tax as provided
             2558      in Subsection (4).
             2559          (4) To obtain voter approval for an additional resort communities sales tax under
             2560      Subsection (3)(b), a municipality shall:
             2561          (a) hold the additional resort communities sales tax election during:
             2562          (i) a regular general election; or
             2563          (ii) a municipal general election; and
             2564          (b) publish notice of the election:
             2565          (i) 15 days or more before the day on which the election is held; and
             2566          (ii) (A) in a newspaper of general circulation in the municipality; and
             2567          (B) as required in Section 45-1-101 .
             2568          (5) An ordinance approving an additional resort communities sales tax under this
             2569      section shall provide an effective date for the tax as provided in Section 59-12-403 .



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             2570
         (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the
             2571      voter approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
             2572      municipality imposed a license fee or tax on businesses based on gross receipts pursuant to
             2573      Section 10-1-203 .
             2574          (b) The exception from the voter approval requirements in Subsection (6)(a) does not
             2575      apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only
             2576      one class of businesses based on gross receipts pursuant to Section 10-1-203 .
             2577          (7) A military installation development authority authorized to impose a resort
             2578      communities tax under Section 59-12-401 may not impose an additional resort communities
             2579      sales tax under this section.
             2580          Section 10. Section 59-12-703 is amended to read:
             2581           59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses of
             2582      tax money -- Enactment or repeal of tax -- Effective date -- Notice requirements.
             2583          (1) (a) (i) A county legislative body may submit an opinion question to the residents of
             2584      that county, by majority vote of all members of the legislative body, so that each resident of the
             2585      county, except residents in municipalities that have already imposed a sales and use tax under
             2586      Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
             2587      Organizations or Facilities, has an opportunity to express the resident's opinion on the
             2588      imposition of a local sales and use tax of .1% on the transactions described in Subsection
             2589      59-12-103 (1) located within the county, to fund recreational and zoological facilities, botanical,
             2590      cultural, and zoological organizations, and rural radio stations, in that county.
             2591          (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
             2592      tax under this section on:
             2593          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2594      are exempt from taxation under Section 59-12-104 ; or
             2595          (B) sales and uses within municipalities that have already imposed a sales and use tax
             2596      under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
             2597      Zoological Organizations or Facilities[; and].
             2598          [(C) except as provided in Subsection (1)(c), amounts paid or charged for food and
             2599      food ingredients.]
             2600          (b) For purposes of this Subsection (1), the location of a transaction shall be



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             2601
     determined in accordance with Sections 59-12-211 through 59-12-215 .
             2602          [(c) A county legislative body imposing a tax under this section shall impose the tax on
             2603      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             2604      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             2605      property other than food and food ingredients.]
             2606          [(d)] (c) The election shall follow the procedures outlined in Title 11, Chapter 14,
             2607      Local Government Bonding Act.
             2608          (2) (a) If the county legislative body determines that a majority of the county's
             2609      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             2610      the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
             2611      majority vote of all members of the legislative body on the transactions:
             2612          (i) described in Subsection (1); and
             2613          (ii) within the county, including the cities and towns located in the county, except those
             2614      cities and towns that have already imposed a sales and use tax under Part 14, City or Town
             2615      Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
             2616      Facilities.
             2617          (b) A county legislative body may revise county ordinances to reflect statutory changes
             2618      to the distribution formula or eligible recipients of revenues generated from a tax imposed
             2619      under Subsection (2)(a):
             2620          (i) after the county legislative body submits an opinion question to residents of the
             2621      county in accordance with Subsection (1) giving them the opportunity to express their opinion
             2622      on the proposed revisions to county ordinances; and
             2623          (ii) if the county legislative body determines that a majority of those voting on the
             2624      opinion question have voted in favor of the revisions.
             2625          (3) The money generated from any tax imposed under Subsection (2) shall be used for
             2626      funding:
             2627          (a) recreational and zoological facilities located within the county or a city or town
             2628      located in the county, except a city or town that has already imposed a sales and use tax under
             2629      Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
             2630      Organizations or Facilities; and
             2631          (b) ongoing operating expenses of:



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             2632
         (i) recreational facilities described in Subsection (3)(a);
             2633          (ii) botanical, cultural, and zoological organizations within the county; and
             2634          (iii) rural radio stations within the county.
             2635          (4) (a) A tax authorized under this part shall be:
             2636          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             2637      accordance with:
             2638          (A) the same procedures used to administer, collect, and enforce the tax under:
             2639          (I) Part 1, Tax Collection; or
             2640          (II) Part 2, Local Sales and Use Tax Act; and
             2641          (B) Chapter 1, General Taxation Policies; and
             2642          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
             2643      period in accordance with this section.
             2644          (b) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
             2645      Subsections 59-12-205 (2) through (6).
             2646          (5) (a) For purposes of this Subsection (5):
             2647          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             2648      [Annexation to County] Part 2, County Annexation.
             2649          (ii) "Annexing area" means an area that is annexed into a county.
             2650          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             2651      county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             2652          (A) on the first day of a calendar quarter; and
             2653          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2654      the requirements of Subsection (5)(b)(ii) from the county.
             2655          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             2656          (A) that the county will enact or repeal a tax under this part;
             2657          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             2658          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             2659          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
             2660      tax.
             2661          (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
             2662          (A) that begins after the effective date of the enactment of the tax; and



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             2663
         (B) if the billing period for the transaction begins before the effective date of the
             2664      enactment of the tax under this section.
             2665          (ii) The repeal of a tax shall take effect on the first day of the last billing period:
             2666          (A) that began before the effective date of the repeal of the tax; and
             2667          (B) if the billing period for the transaction begins before the effective date of the repeal
             2668      of the tax imposed under this section.
             2669          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             2670      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             2671      Subsection (5)(b)(i) takes effect:
             2672          (A) on the first day of a calendar quarter; and
             2673          (B) beginning 60 days after the effective date of the enactment or repeal under
             2674      Subsection (5)(b)(i).
             2675          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2676      commission may by rule define the term "catalogue sale."
             2677          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             2678      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             2679      part for an annexing area, the enactment or repeal shall take effect:
             2680          (A) on the first day of a calendar quarter; and
             2681          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2682      the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
             2683          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             2684          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             2685      repeal of a tax under this part for the annexing area;
             2686          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             2687          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             2688          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             2689          (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
             2690          (A) that begins after the effective date of the enactment of the tax; and
             2691          (B) if the billing period for the transaction begins before the effective date of the
             2692      enactment of the tax under this section.
             2693          (ii) The repeal of a tax shall take effect on the first day of the last billing period:



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             2694
         (A) that began before the effective date of the repeal of the tax; and
             2695          (B) if the billing period for the transaction begins before the effective date of the repeal
             2696      of the tax imposed under this section.
             2697          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             2698      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             2699      Subsection (5)(e)(i) takes effect:
             2700          (A) on the first day of a calendar quarter; and
             2701          (B) beginning 60 days after the effective date of the enactment or repeal under
             2702      Subsection (5)(e)(i).
             2703          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2704      commission may by rule define the term "catalogue sale."
             2705          Section 11. Section 59-12-802 is amended to read:
             2706           59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
             2707      tax revenues -- Base -- Rate -- Administration, collection, and enforcement of tax.
             2708          (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
             2709      may impose a sales and use tax of up to 1%:
             2710          (i) on the transactions described in Subsection 59-12-103 (1) located within the county;
             2711      and
             2712          (ii) subject to Subsection (3), to fund:
             2713          (A) for a county of the third, fourth, or fifth class, rural county health care facilities in
             2714      that county; or
             2715          (B) for a county of the sixth class:
             2716          (I) emergency medical services in that county;
             2717          (II) federally qualified health centers in that county;
             2718          (III) freestanding urgent care centers in that county;
             2719          (IV) rural county health care facilities in that county;
             2720          (V) rural health clinics in that county; or
             2721          (VI) a combination of Subsections (1)(a)(ii)(B)(I) through (V).
             2722          (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
             2723      tax under this section on:
             2724          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses



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             2725
     are exempt from taxation under Section 59-12-104 ; or
             2726          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
             2727      a city that imposes a tax under Section 59-12-804 [; and].
             2728          [(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
             2729      food ingredients.]
             2730          (c) For purposes of this Subsection (1), the location of a transaction shall be
             2731      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2732          [(d) A county legislative body imposing a tax under this section shall impose the tax on
             2733      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             2734      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             2735      property other than food and food ingredients.]
             2736          (2) (a) Before imposing a tax under Subsection (1)(a), a county legislative body shall
             2737      obtain approval to impose the tax from a majority of the:
             2738          (i) members of the county's legislative body; and
             2739          (ii) county's registered voters voting on the imposition of the tax.
             2740          (b) The county legislative body shall conduct the election according to the procedures
             2741      and requirements of Title 11, Chapter 14, Local Government Bonding Act.
             2742          (3) (a) The money generated by a tax imposed under Subsection (1) by a county
             2743      legislative body of a county of the third, fourth, or fifth class may only be used for the
             2744      financing of:
             2745          (i) ongoing operating expenses of a rural county health care facility within that county;
             2746          (ii) the acquisition of land for a rural county health care facility within that county; or
             2747          (iii) the design, construction, equipping, or furnishing of a rural county health care
             2748      facility within that county.
             2749          (b) The money generated by a tax imposed under Subsection (1) by a county of the
             2750      sixth class may only be used for the financing of:
             2751          (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
             2752      (1)(a)(ii)(B) within that county;
             2753          (ii) the acquisition of land for a center, clinic, or facility described in Subsection
             2754      (1)(a)(ii)(B) within that county;
             2755          (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility



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             2756
     described in Subsection (1)(a)(ii)(B) within that county; or
             2757          (iv) the provision of rural emergency medical services within that county.
             2758          (4) (a) A tax under this section shall be:
             2759          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             2760      accordance with:
             2761          (A) the same procedures used to administer, collect, and enforce the tax under:
             2762          (I) Part 1, Tax Collection; or
             2763          (II) Part 2, Local Sales and Use Tax Act; and
             2764          (B) Chapter 1, General Taxation Policies; and
             2765          (ii) levied for a period of 10 years and may be reauthorized at the end of the [ten-year]
             2766      10-year period by the county legislative body as provided in Subsection (1).
             2767          (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
             2768      Subsections 59-12-205 (2) through (6).
             2769          (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
             2770      under this section for the cost of administering this tax.
             2771          Section 12. Section 59-12-804 is amended to read:
             2772           59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
             2773      collection, and enforcement of tax.
             2774          (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
             2775          (i) on the transactions described in Subsection 59-12-103 (1) located within the city;
             2776      and
             2777          (ii) to fund rural city hospitals in that city.
             2778          (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
             2779      under this section on[: (i)] the sales and uses described in Section 59-12-104 to the extent the
             2780      sales and uses are exempt from taxation under Section 59-12-104 [; and].
             2781          [(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and
             2782      food ingredients.]
             2783          (c) For purposes of this Subsection (1), the location of a transaction shall be
             2784      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2785          [(d) A city legislative body imposing a tax under this section shall impose the tax on
             2786      amounts paid or charged for food and food ingredients if the food and food ingredients are sold



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             2787
     as part of a bundled transaction attributable to food and food ingredients and tangible personal
             2788      property other than food and food ingredients.]
             2789          (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
             2790      obtain approval to impose the tax from a majority of the:
             2791          (i) members of the city legislative body; and
             2792          (ii) city's registered voters voting on the imposition of the tax.
             2793          (b) The city legislative body shall conduct the election according to the procedures and
             2794      requirements of Title 11, Chapter 14, Local Government Bonding Act.
             2795          (3) The money generated by a tax imposed under Subsection (1) may only be used for
             2796      the financing of:
             2797          (a) ongoing operating expenses of a rural city hospital;
             2798          (b) the acquisition of land for a rural city hospital; or
             2799          (c) the design, construction, equipping, or furnishing of a rural city hospital.
             2800          (4) (a) A tax under this section shall be:
             2801          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             2802      accordance with:
             2803          (A) the same procedures used to administer, collect, and enforce the tax under:
             2804          (I) Part 1, Tax Collection; or
             2805          (II) Part 2, Local Sales and Use Tax Act; and
             2806          (B) Chapter 1, General Taxation Policies; and
             2807          (ii) levied for a period of 10 years and may be reauthorized at the end of the [ten]
             2808      10-year period by the city legislative body as provided in Subsection (1).
             2809          (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
             2810      Subsections 59-12-205 (2) through (6).
             2811          (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
             2812      under this section for the cost of administering the tax.
             2813          Section 13. Section 59-12-1302 is amended to read:
             2814           59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
             2815      rate change -- Effective date -- Notice requirements.
             2816          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
             2817      tax as provided in this part in an amount that does not exceed 1%.



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             2818
         (2) A town may impose a tax as provided in this part if the town imposed a license fee
             2819      or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
             2820      1996.
             2821          (3) A town imposing a tax under this section shall:
             2822          (a) except as provided in Subsection (4), impose the tax on the transactions described
             2823      in Subsection 59-12-103 (1) located within the town; and
             2824          (b) provide an effective date for the tax as provided in Subsection (5).
             2825          (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
             2826      section on[: (i)] the sales and uses described in Section 59-12-104 to the extent the sales and
             2827      uses are exempt from taxation under Section 59-12-104 [; and].
             2828          [(ii) except as provided in Subsection (4)(c), amounts paid or charged for food and
             2829      food ingredients.]
             2830          (b) For purposes of this Subsection (4), the location of a transaction shall be
             2831      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2832          [(c) A town imposing a tax under this section shall impose the tax on amounts paid or
             2833      charged for food and food ingredients if the food and food ingredients are sold as part of a
             2834      bundled transaction attributable to food and food ingredients and tangible personal property
             2835      other than food and food ingredients.]
             2836          (5) (a) For purposes of this Subsection (5):
             2837          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
             2838      Annexation.
             2839          (ii) "Annexing area" means an area that is annexed into a town.
             2840          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             2841      town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             2842      or change shall take effect:
             2843          (A) on the first day of a calendar quarter; and
             2844          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2845      the requirements of Subsection (5)(b)(ii) from the town.
             2846          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             2847          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
             2848          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);



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             2849
         (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             2850          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             2851      (5)(b)(ii)(A), the rate of the tax.
             2852          (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
             2853      the first billing period:
             2854          (A) that begins after the effective date of the enactment of the tax or the tax rate
             2855      increase; and
             2856          (B) if the billing period for the transaction begins before the effective date of the
             2857      enactment of the tax or the tax rate increase imposed under Subsection (1).
             2858          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2859      billing period:
             2860          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             2861      and
             2862          (B) if the billing period for the transaction begins before the effective date of the repeal
             2863      of the tax or the tax rate decrease imposed under Subsection (1).
             2864          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             2865      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             2866      a tax described in Subsection (5)(b)(i) takes effect:
             2867          (A) on the first day of a calendar quarter; and
             2868          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2869      rate of the tax under Subsection (5)(b)(i).
             2870          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2871      commission may by rule define the term "catalogue sale."
             2872          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             2873      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             2874      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             2875      effect:
             2876          (A) on the first day of a calendar quarter; and
             2877          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2878      the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
             2879          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:



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             2880
         (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
             2881      repeal, or change in the rate of a tax under this part for the annexing area;
             2882          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             2883          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             2884          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             2885      (5)(e)(ii)(A), the rate of the tax.
             2886          (f) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
             2887      the first billing period:
             2888          (A) that begins after the effective date of the enactment of the tax or the tax rate
             2889      increase; and
             2890          (B) if the billing period for the transaction begins before the effective date of the
             2891      enactment of the tax or the tax rate increase imposed under Subsection (1).
             2892          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2893      billing period:
             2894          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             2895      and
             2896          (B) if the billing period for the transaction begins before the effective date of the repeal
             2897      of the tax or the tax rate decrease imposed under Subsection (1).
             2898          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             2899      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             2900      a tax described in Subsection (5)(e)(i) takes effect:
             2901          (A) on the first day of a calendar quarter; and
             2902          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2903      rate of the tax under Subsection (5)(e)(i).
             2904          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2905      commission may by rule define the term "catalogue sale."
             2906          (6) The commission shall:
             2907          (a) except as provided in Subsection (6)(c), distribute the revenues generated by the tax
             2908      under this section to the town imposing the tax;
             2909          (b) except as provided in Subsection (7), administer, collect, and enforce the tax
             2910      authorized under this section in accordance with:



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             2911
         (i) the same procedures used to administer, collect, and enforce the tax under:
             2912          (A) Part 1, Tax Collection; or
             2913          (B) Part 2, Local Sales and Use Tax Act; and
             2914          (ii) Chapter 1, General Taxation Policies; and
             2915          (c) deduct from the distribution under Subsection (6)(a) an administrative charge for
             2916      collecting the tax as provided in Section 59-12-206 .
             2917          (7) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
             2918      Subsections 59-12-205 (2) through (6).
             2919          Section 14. Section 59-12-1402 is amended to read:
             2920           59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses
             2921      of tax money -- Enactment or repeal of tax -- Effective date -- Notice requirements.
             2922          (1) (a) (i) Subject to Subsection (6), beginning on January 1, 2003, a city or town
             2923      legislative body subject to this part may submit an opinion question to the residents of that city
             2924      or town, by majority vote of all members of the legislative body, so that each resident of the
             2925      city or town has an opportunity to express the resident's opinion on the imposition of a local
             2926      sales and use tax of .1% on the transactions described in Subsection 59-12-103 (1) located
             2927      within the city or town, to fund recreational and zoological facilities and botanical, cultural,
             2928      and zoological organizations in that city or town.
             2929          (ii) Notwithstanding Subsection (1)(a)(i), a city or town legislative body may not
             2930      impose a tax under this section:
             2931          (A) if the county in which the city or town is located imposes a tax under Part 7,
             2932      County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
             2933      Facilities; or
             2934          (B) on the sales and uses described in Section 59-12-104 to the extent the sales and
             2935      uses are exempt from taxation under Section 59-12-104 [; and].
             2936          [(C) except as provided in Subsection (1)(c), on amounts paid or charged for food and
             2937      food ingredients.]
             2938          (b) For purposes of this Subsection (1), the location of a transaction shall be
             2939      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2940          [(c) A city or town legislative body imposing a tax under this section shall impose the
             2941      tax on amounts paid or charged for food and food ingredients if the food and food ingredients



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             2942
     are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             2943      personal property other than food and food ingredients.]
             2944          [(d)] (c) The election shall be held at a regular general election or a municipal general
             2945      election, as those terms are defined in Section 20A-1-102 , and shall follow the procedures
             2946      outlined in Title 11, Chapter 14, Local Government Bonding Act, except as provided in
             2947      Subsection (6).
             2948          (2) If the city or town legislative body determines that a majority of the city's or town's
             2949      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             2950      the tax as prescribed in Subsection (1)(a), the city or town legislative body may impose the tax
             2951      by a majority vote of all members of the legislative body.
             2952          (3) The money generated from any tax imposed under Subsection (2) shall be used for
             2953      financing:
             2954          (a) recreational and zoological facilities within the city or town or within the
             2955      geographic area of entities that are parties to an interlocal agreement, to which the city or town
             2956      is a party, providing for recreational or zoological facilities; and
             2957          (b) ongoing operating expenses of botanical, cultural, and zoological organizations
             2958      within the city or town or within the geographic area of entities that are parties to an interlocal
             2959      agreement, to which the city or town is a party, providing for the support of botanical, cultural,
             2960      or zoological organizations.
             2961          (4) (a) A tax authorized under this part shall be:
             2962          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             2963      accordance with:
             2964          (A) the same procedures used to administer, collect, and enforce the tax under:
             2965          (I) Part 1, Tax Collection; or
             2966          (II) Part 2, Local Sales and Use Tax Act; and
             2967          (B) Chapter 1, General Taxation Policies; and
             2968          (ii) (A) levied for a period of eight years; and
             2969          (B) may be reauthorized at the end of the eight-year period in accordance with this
             2970      section.
             2971          (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
             2972      Subsections 59-12-205 (2) through (6).



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             2973
         (5) (a) For purposes of this Subsection (5):
             2974          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             2975      4, Annexation.
             2976          (ii) "Annexing area" means an area that is annexed into a city or town.
             2977          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
             2978      or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             2979          (A) on the first day of a calendar quarter; and
             2980          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2981      the requirements of Subsection (5)(b)(ii) from the city or town.
             2982          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             2983          (A) that the city or town will enact or repeal a tax under this part;
             2984          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             2985          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             2986          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
             2987      the tax.
             2988          (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
             2989          (A) that begins after the effective date of the enactment of the tax; and
             2990          (B) if the billing period for the transaction begins before the effective date of the
             2991      enactment of the tax under this section.
             2992          (ii) The repeal of a tax shall take effect on the first day of the last billing period:
             2993          (A) that began before the effective date of the repeal of the tax; and
             2994          (B) if the billing period for the transaction begins before the effective date of the repeal
             2995      of the tax imposed under this section.
             2996          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             2997      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             2998      Subsection (5)(b)(i) takes effect:
             2999          (A) on the first day of a calendar quarter; and
             3000          (B) beginning 60 days after the effective date of the enactment or repeal under
             3001      Subsection (5)(b)(i).
             3002          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3003      commission may by rule define the term "catalogue sale."



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             3004
         (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             3005      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             3006      part for an annexing area, the enactment or repeal shall take effect:
             3007          (A) on the first day of a calendar quarter; and
             3008          (B) after a 90-day period beginning on the date the commission receives notice meeting
             3009      the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
             3010          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             3011          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             3012      repeal a tax under this part for the annexing area;
             3013          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             3014          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             3015          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             3016          (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
             3017          (A) that begins after the effective date of the enactment of the tax; and
             3018          (B) if the billing period for the transaction begins before the effective date of the
             3019      enactment of the tax under this section.
             3020          (ii) The repeal of a tax shall take effect on the first day of the last billing period:
             3021          (A) that began before the effective date of the repeal of the tax; and
             3022          (B) if the billing period for the transaction begins before the effective date of the repeal
             3023      of the tax imposed under this section.
             3024          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             3025      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             3026      Subsection (5)(e)(i) takes effect:
             3027          (A) on the first day of a calendar quarter; and
             3028          (B) beginning 60 days after the effective date of the enactment or repeal under
             3029      Subsection (5)(e)(i).
             3030          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3031      commission may by rule define the term "catalogue sale."
             3032          (6) (a) Before a city or town legislative body submits an opinion question to the
             3033      residents of the city or town under Subsection (1)(a)(i), the city or town legislative body shall:
             3034          (i) submit to the county legislative body in which the city or town is located a written



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             3035
     notice of the intent to submit the opinion question to the residents of the city or town; and
             3036          (ii) receive from the county legislative body:
             3037          (A) a written resolution passed by the county legislative body stating that the county
             3038      legislative body is not seeking to impose a tax under Part 7, County Option Funding for
             3039      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
             3040          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
             3041      opinion question submitted to the residents of the county under Part 7, County Option Funding
             3042      for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
             3043      or town legislative body to submit the opinion question to the residents of the city or town in
             3044      accordance with this part.
             3045          (b) (i) Within 60 days after the day the county legislative body receives from a city or
             3046      town legislative body described in Subsection (6)(a) the notice of the intent to submit an
             3047      opinion question to the residents of the city or town, the county legislative body shall provide
             3048      the city or town legislative body:
             3049          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
             3050          (B) written notice that the county legislative body will submit an opinion question to
             3051      the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
             3052      Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
             3053      that part.
             3054          (ii) If the county legislative body provides the city or town legislative body the written
             3055      notice that the county legislative body will submit an opinion question as provided in
             3056      Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
             3057      later than, from the date the county legislative body sends the written notice, the later of:
             3058          (A) a 12-month period;
             3059          (B) the next regular primary election; or
             3060          (C) the next regular general election.
             3061          (iii) Within 30 days of the date of the canvass of the election at which the opinion
             3062      question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
             3063      city or town legislative body described in Subsection (6)(a) written results of the opinion
             3064      question submitted by the county legislative body under Part 7, County Option Funding for
             3065      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:



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             3066
         (A) (I) the city or town legislative body may not impose a tax under this part because a
             3067      majority of the county's registered voters voted in favor of the county imposing the tax and the
             3068      county legislative body by a majority vote approved the imposition of the tax; or
             3069          (II) for at least 12 months from the date the written results are submitted to the city or
             3070      town legislative body, the city or town legislative body may not submit to the county legislative
             3071      body a written notice of the intent to submit an opinion question under this part because a
             3072      majority of the county's registered voters voted against the county imposing the tax and the
             3073      majority of the registered voters who are residents of the city or town described in Subsection
             3074      (6)(a) voted against the imposition of the county tax; or
             3075          (B) the city or town legislative body may submit the opinion question to the residents
             3076      of the city or town in accordance with this part because although a majority of the county's
             3077      registered voters voted against the county imposing the tax, the majority of the registered voters
             3078      who are residents of the city or town voted for the imposition of the county tax.
             3079          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
             3080      provide a city or town legislative body described in Subsection (6)(a) a written resolution
             3081      passed by the county legislative body stating that the county legislative body is not seeking to
             3082      impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
             3083      Zoological Organizations or Facilities, which permits the city or town legislative body to
             3084      submit under Subsection (1)(a)(i) an opinion question to the city's or town's residents.
             3085          Section 15. Section 59-12-2003 is amended to read:
             3086           59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
             3087      transit districts.
             3088          (1) Subject to the other provisions of this section and except as provided in Subsection
             3089      (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part on the
             3090      transactions described in Subsection 59-12-103 (1) within a city, town, or the unincorporated
             3091      area of a county of the first or second class if, on January 1, 2008, there is a public transit
             3092      district within any portion of that county of the first or second class.
             3093          (2) The state may not impose a tax under this part within a county of the first or second
             3094      class if within all of the cities, towns, and the unincorporated area of the county of the first or
             3095      second class there is imposed a sales and use tax of:
             3096          (a) .30% under Section 59-12-2213 ;



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             3097
         (b) .30% under Section 59-12-2215 ; or
             3098          (c) .30% under Section 59-12-2216 .
             3099          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
             3100      rate imposed within a city, town, or the unincorporated area of a county of the first or second
             3101      class is a percentage equal to the difference between:
             3102          (i) .30%; and
             3103          (ii) (A) for a city within the county of the first or second class, the highest tax rate
             3104      imposed within that city under:
             3105          (I) Section 59-12-2213 ;
             3106          (II) Section 59-12-2215 ; or
             3107          (III) Section 59-12-2216 ;
             3108          (B) for a town within the county of the first or second class, the highest tax rate
             3109      imposed within that town under:
             3110          (I) Section 59-12-2213 ;
             3111          (II) Section 59-12-2215 ; or
             3112          (III) Section 59-12-2216 ; or
             3113          (C) for the unincorporated area of the county of the first or second class, the highest tax
             3114      rate imposed within that unincorporated area under:
             3115          (I) Section 59-12-2213 ;
             3116          (II) Section 59-12-2215 ; or
             3117          (III) Section 59-12-2216 .
             3118          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
             3119      a county of the first or second class, the highest tax rate imposed under Section 59-12-2213 ,
             3120      59-12-2215 , or 59-12-2216 within that city, town, or unincorporated area of the county of the
             3121      first or second class is .30%, the state may not impose a tax under this part within that city,
             3122      town, or unincorporated area.
             3123          (4) [(a)] The state may not impose a tax under this part on[: (i)] the sales and uses
             3124      described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under
             3125      Section 59-12-104 [; or].
             3126          [(ii) except as provided in Subsection (4)(b), amounts paid or charged for food and
             3127      food ingredients.]



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             3128
         [(b) The state shall impose a tax under this part on amounts paid or charged for food
             3129      and food ingredients if the food and food ingredients are sold as part of a bundled transaction
             3130      attributable to food and ingredients and tangible personal property other than food and food
             3131      ingredients.]
             3132          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
             3133      accordance with Sections 59-12-211 through 59-12-215 .
             3134          (6) The commission shall distribute the revenues the state collects from the sales and
             3135      use tax under this part, after subtracting amounts a seller retains in accordance with Section
             3136      59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
             3137          (a) within which the state imposes a tax under this part; and
             3138          (b) in proportion to the revenues collected from the sales and use tax under this part
             3139      within each city, town, and unincorporated area within which the state imposes a tax under this
             3140      part.
             3141          Section 16. Section 59-12-2103 is amended to read:
             3142           59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             3143      from the tax -- Administration, collection, and enforcement of tax by commission --
             3144      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             3145          (1) (a) Subject to the other provisions of this section and except as provided in
             3146      Subsection (2), beginning on January 1, 2009, and ending on June 30, 2016, if a city or town
             3147      receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or
             3148      town would have received a tax revenue distribution of less than .75% of the taxable sales
             3149      within the boundaries of the city or town but for Subsection 59-12-205 (3)(a), the city or town
             3150      legislative body may impose a sales and use tax of up to .20% on the transactions:
             3151          (i) described in Subsection 59-12-103 (1); and
             3152          (ii) within the city or town.
             3153          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
             3154      expend the revenues collected from the tax for the same purposes for which the city or town
             3155      may expend the city's or town's general fund revenues.
             3156          (c) For purposes of this Subsection (1), the location of a transaction shall be
             3157      determined in accordance with Sections 59-12-211 through 59-12-215 .
             3158          (2) [(a)] A city or town legislative body may not impose a tax under this section on[:



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             3159
     (i)] the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             3160      exempt from taxation under Section 59-12-104 [; and].
             3161          [(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and
             3162      food ingredients.]
             3163          [(b) A city or town legislative body imposing a tax under this section shall impose the
             3164      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             3165      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             3166      personal property other than food and food ingredients.]
             3167          (3) To impose a tax under this part, a city or town legislative body shall obtain
             3168      approval from a majority of the members of the city or town legislative body.
             3169          (4) The commission shall transmit revenues collected within a city or town from a tax
             3170      under this part:
             3171          (a) to the city or town legislative body;
             3172          (b) monthly; and
             3173          (c) by electronic funds transfer.
             3174          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             3175      collect, and enforce a tax under this part in accordance with:
             3176          (i) the same procedures used to administer, collect, and enforce the tax under:
             3177          (A) Part 1, Tax Collection; or
             3178          (B) Part 2, Local Sales and Use Tax Act; and
             3179          (ii) Chapter 1, General Taxation Policies.
             3180          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             3181          (6) (a) The commission may retain an amount of tax collected under this part of not to
             3182      exceed the lesser of:
             3183          (i) 1.5%; or
             3184          (ii) an amount equal to the cost to the commission of administering this part.
             3185          (b) Any amount the commission retains under Subsection (6)(a) shall be:
             3186          (i) deposited into the Sales and Use Tax Administrative Fees Account; and
             3187          (ii) used as provided in Subsection 59-12-206 (2).
             3188          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             3189      a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,



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             3190
     repeal, or change shall take effect:
             3191          (A) on the first day of a calendar quarter; and
             3192          (B) after a 90-day period beginning on the date the commission receives notice meeting
             3193      the requirements of Subsection (7)(a)[(i)](ii) from the city or town.
             3194          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             3195          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
             3196      this part;
             3197          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             3198          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             3199          (D) if the city or town enacts the tax or changes the rate of the tax described in
             3200      Subsection (7)(a)(ii)(A), the rate of the tax.
             3201          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
             3202      the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall
             3203      take effect on the first day of the first billing period that begins after the effective date of the
             3204      enactment of the tax or the tax rate increase.
             3205          (ii) If the billing period for a transaction begins before the effective date of the repeal
             3206      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             3207      decrease shall take effect on the first day of the last billing period that began before the
             3208      effective date of the repeal of the tax or the tax rate decrease.
             3209          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             3210      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             3211      described in Subsection (7)(a)(i) takes effect:
             3212          (A) on the first day of a calendar quarter; and
             3213          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             3214      rate of the tax under Subsection (7)(a)(i).
             3215          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3216      commission may by rule define the term "catalogue sale."
             3217          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             3218      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             3219      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             3220      effect:



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             3221
         (A) on the first day of a calendar quarter; and
             3222          (B) after a 90-day period beginning on the date the commission receives notice meeting
             3223      the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
             3224          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             3225          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
             3226      enactment, repeal, or change in the rate of a tax under this part for the annexing area;
             3227          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             3228          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             3229          (D) if the city or town enacts the tax or changes the rate of the tax described in
             3230      Subsection (7)(d)(ii)(A), the rate of the tax.
             3231          (e) (i) If the billing period for a transaction begins before the effective date of the
             3232      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             3233      rate increase shall take effect on the first day of the first billing period that begins after the
             3234      effective date of the enactment of the tax or the tax rate increase.
             3235          (ii) If the billing period for a transaction begins before the effective date of the repeal
             3236      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             3237      decrease shall take effect on the first day of the last billing period that began before the
             3238      effective date of the repeal of the tax or the tax rate decrease.
             3239          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             3240      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             3241      described in Subsection (7)(d)(i) takes effect:
             3242          (A) on the first day of a calendar quarter; and
             3243          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
             3244      Subsection (7)(d)(i).
             3245          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3246      commission may by rule define the term "catalogue sale".
             3247          Section 17. Section 59-12-2204 is amended to read:
             3248           59-12-2204. Transactions that may not be subject to taxation under this part.
             3249          [(1)] A county, city, or town may not impose a sales and use tax under this part on[:
             3250      (a)] the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             3251      exempt from taxation under Section 59-12-104 [; and].



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             3252
         [(b) except as provided in Subsection (2), amounts paid or charged for food and food
             3253      ingredients.]
             3254          [(2) A county, city, or town imposing a sales and use tax under this part shall impose
             3255      the sales and use tax on amounts paid or charged for food and food ingredients if the food and
             3256      food ingredients are sold as part of a bundled transaction attributable to food and food
             3257      ingredients and tangible personal property other than food and food ingredients.]
             3258          Section 18. Effective date.
             3259          This bill takes effect on July 1, 2011.





Legislative Review Note
    as of 2-15-11 11:10 AM


Office of Legislative Research and General Counsel


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