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S.B. 171 Enrolled

             1     

SALES AND USE TAX EXEMPTION FOR ELECTRONIC

             2     
FINANCIAL PAYMENT SERVICES

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Howard A. Stephenson

             6     
House Sponsor: Gregory H. Hughes

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill enacts a sales and use tax exemption for electronic financial payment services.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    enacts a sales and use tax exemption for electronic financial payment services; and
             15          .    makes technical and conforming changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          This bill provides effective dates.
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             23      255, 312, 405, and 410
             24          59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
             25      312, 405, 410, and 424
             26          59-12-104, as last amended by Laws of Utah 2012, Chapters 255, 399, 405, and 410
             27     
             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 59-12-102 (Superseded 07/01/14) is amended to read:


             30           59-12-102 (Superseded 07/01/14). Definitions.
             31          As used in this chapter:
             32          (1) "800 service" means a telecommunications service that:
             33          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             34          (b) is typically marketed:
             35          (i) under the name 800 toll-free calling;
             36          (ii) under the name 855 toll-free calling;
             37          (iii) under the name 866 toll-free calling;
             38          (iv) under the name 877 toll-free calling;
             39          (v) under the name 888 toll-free calling; or
             40          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             41      Federal Communications Commission.
             42          (2) (a) "900 service" means an inbound toll telecommunications service that:
             43          (i) a subscriber purchases;
             44          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             45      the subscriber's:
             46          (A) prerecorded announcement; or
             47          (B) live service; and
             48          (iii) is typically marketed:
             49          (A) under the name 900 service; or
             50          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             51      Communications Commission.
             52          (b) "900 service" does not include a charge for:
             53          (i) a collection service a seller of a telecommunications service provides to a
             54      subscriber; or
             55          (ii) the following a subscriber sells to the subscriber's customer:
             56          (A) a product; or
             57          (B) a service.


             58          (3) (a) "Admission or user fees" includes season passes.
             59          (b) "Admission or user fees" does not include annual membership dues to private
             60      organizations.
             61          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             62      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             63      Agreement after November 12, 2002.
             64          (5) "Agreement combined tax rate" means the sum of the tax rates:
             65          (a) listed under Subsection (6); and
             66          (b) that are imposed within a local taxing jurisdiction.
             67          (6) "Agreement sales and use tax" means a tax imposed under:
             68          (a) Subsection 59-12-103 (2)(a)(i)(A);
             69          (b) Subsection 59-12-103 (2)(b)(i);
             70          (c) Subsection 59-12-103 (2)(c)(i);
             71          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             72          (e) Section 59-12-204 ;
             73          (f) Section 59-12-401 ;
             74          (g) Section 59-12-402 ;
             75          (h) Section 59-12-703 ;
             76          (i) Section 59-12-802 ;
             77          (j) Section 59-12-804 ;
             78          (k) Section 59-12-1102 ;
             79          (l) Section 59-12-1302 ;
             80          (m) Section 59-12-1402 ;
             81          (n) Section 59-12-1802 ;
             82          (o) Section 59-12-2003 ;
             83          (p) Section 59-12-2103 ;
             84          (q) Section 59-12-2213 ;
             85          (r) Section 59-12-2214 ;


             86          (s) Section 59-12-2215 ;
             87          (t) Section 59-12-2216 ;
             88          (u) Section 59-12-2217 ; or
             89          (v) Section 59-12-2218 .
             90          (7) "Aircraft" is as defined in Section 72-10-102 .
             91          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             92          (a) except for:
             93          (i) an airline as defined in Section 59-2-102 ; or
             94          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             95      includes a corporation that is qualified to do business but is not otherwise doing business in the
             96      state, of an airline; and
             97          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             98      whether the business entity performs the following in this state:
             99          (i) check, diagnose, overhaul, and repair:
             100          (A) an onboard system of a fixed wing turbine powered aircraft; and
             101          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             102          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             103      engine;
             104          (iii) perform at least the following maintenance on a fixed wing turbine powered
             105      aircraft:
             106          (A) an inspection;
             107          (B) a repair, including a structural repair or modification;
             108          (C) changing landing gear; and
             109          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             110          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             111      completely apply new paint to the fixed wing turbine powered aircraft; and
             112          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             113      results in a change in the fixed wing turbine powered aircraft's certification requirements by the


             114      authority that certifies the fixed wing turbine powered aircraft.
             115          (9) "Alcoholic beverage" means a beverage that:
             116          (a) is suitable for human consumption; and
             117          (b) contains .5% or more alcohol by volume.
             118          (10) "Alternative energy" means:
             119          (a) biomass energy;
             120          (b) geothermal energy;
             121          (c) hydroelectric energy;
             122          (d) solar energy;
             123          (e) wind energy; or
             124          (f) energy that is derived from:
             125          (i) coal-to-liquids;
             126          (ii) nuclear fuel;
             127          (iii) oil-impregnated diatomaceous earth;
             128          (iv) oil sands;
             129          (v) oil shale; or
             130          (vi) petroleum coke.
             131          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             132      facility" means a facility that:
             133          (i) uses alternative energy to produce electricity; and
             134          (ii) has a production capacity of 2 megawatts or greater.
             135          (b) A facility is an alternative energy electricity production facility regardless of
             136      whether the facility is:
             137          (i) connected to an electric grid; or
             138          (ii) located on the premises of an electricity consumer.
             139          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             140      provision of telecommunications service.
             141          (b) "Ancillary service" includes:


             142          (i) a conference bridging service;
             143          (ii) a detailed communications billing service;
             144          (iii) directory assistance;
             145          (iv) a vertical service; or
             146          (v) a voice mail service.
             147          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             148          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             149      device that is started and stopped by an individual:
             150          (a) who is not the purchaser or renter of the right to use or operate the amusement
             151      device, skill device, or ride device; and
             152          (b) at the direction of the seller of the right to use the amusement device, skill device,
             153      or ride device.
             154          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             155      washing of tangible personal property if the cleaning or washing labor is primarily performed
             156      by an individual:
             157          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             158      property; and
             159          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             160      property.
             161          (16) "Authorized carrier" means:
             162          (a) in the case of vehicles operated over public highways, the holder of credentials
             163      indicating that the vehicle is or will be operated pursuant to both the International Registration
             164      Plan and the International Fuel Tax Agreement;
             165          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             166      certificate or air carrier's operating certificate; or
             167          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             168      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             169          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the


             170      following that is used as the primary source of energy to produce fuel or electricity:
             171          (i) material from a plant or tree; or
             172          (ii) other organic matter that is available on a renewable basis, including:
             173          (A) slash and brush from forests and woodlands;
             174          (B) animal waste;
             175          (C) methane produced:
             176          (I) at landfills; or
             177          (II) as a byproduct of the treatment of wastewater residuals;
             178          (D) aquatic plants; and
             179          (E) agricultural products.
             180          (b) "Biomass energy" does not include:
             181          (i) black liquor;
             182          (ii) treated woods; or
             183          (iii) biomass from municipal solid waste other than methane produced:
             184          (A) at landfills; or
             185          (B) as a byproduct of the treatment of wastewater residuals.
             186          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             187      property, products, or services if the tangible personal property, products, or services are:
             188          (i) distinct and identifiable; and
             189          (ii) sold for one nonitemized price.
             190          (b) "Bundled transaction" does not include:
             191          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             192      the basis of the selection by the purchaser of the items of tangible personal property included in
             193      the transaction;
             194          (ii) the sale of real property;
             195          (iii) the sale of services to real property;
             196          (iv) the retail sale of tangible personal property and a service if:
             197          (A) the tangible personal property:


             198          (I) is essential to the use of the service; and
             199          (II) is provided exclusively in connection with the service; and
             200          (B) the service is the true object of the transaction;
             201          (v) the retail sale of two services if:
             202          (A) one service is provided that is essential to the use or receipt of a second service;
             203          (B) the first service is provided exclusively in connection with the second service; and
             204          (C) the second service is the true object of the transaction;
             205          (vi) a transaction that includes tangible personal property or a product subject to
             206      taxation under this chapter and tangible personal property or a product that is not subject to
             207      taxation under this chapter if the:
             208          (A) seller's purchase price of the tangible personal property or product subject to
             209      taxation under this chapter is de minimis; or
             210          (B) seller's sales price of the tangible personal property or product subject to taxation
             211      under this chapter is de minimis; and
             212          (vii) the retail sale of tangible personal property that is not subject to taxation under
             213      this chapter and tangible personal property that is subject to taxation under this chapter if:
             214          (A) that retail sale includes:
             215          (I) food and food ingredients;
             216          (II) a drug;
             217          (III) durable medical equipment;
             218          (IV) mobility enhancing equipment;
             219          (V) an over-the-counter drug;
             220          (VI) a prosthetic device; or
             221          (VII) a medical supply; and
             222          (B) subject to Subsection (18)(f):
             223          (I) the seller's purchase price of the tangible personal property subject to taxation under
             224      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             225          (II) the seller's sales price of the tangible personal property subject to taxation under


             226      this chapter is 50% or less of the seller's total sales price of that retail sale.
             227          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             228      service that is distinct and identifiable does not include:
             229          (A) packaging that:
             230          (I) accompanies the sale of the tangible personal property, product, or service; and
             231          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             232      service;
             233          (B) tangible personal property, a product, or a service provided free of charge with the
             234      purchase of another item of tangible personal property, a product, or a service; or
             235          (C) an item of tangible personal property, a product, or a service included in the
             236      definition of "purchase price."
             237          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             238      product, or a service is provided free of charge with the purchase of another item of tangible
             239      personal property, a product, or a service if the sales price of the purchased item of tangible
             240      personal property, product, or service does not vary depending on the inclusion of the tangible
             241      personal property, product, or service provided free of charge.
             242          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             243      does not include a price that is separately identified by tangible personal property, product, or
             244      service on the following, regardless of whether the following is in paper format or electronic
             245      format:
             246          (A) a binding sales document; or
             247          (B) another supporting sales-related document that is available to a purchaser.
             248          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             249      supporting sales-related document that is available to a purchaser includes:
             250          (A) a bill of sale;
             251          (B) a contract;
             252          (C) an invoice;
             253          (D) a lease agreement;


             254          (E) a periodic notice of rates and services;
             255          (F) a price list;
             256          (G) a rate card;
             257          (H) a receipt; or
             258          (I) a service agreement.
             259          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             260      property or a product subject to taxation under this chapter is de minimis if:
             261          (A) the seller's purchase price of the tangible personal property or product is 10% or
             262      less of the seller's total purchase price of the bundled transaction; or
             263          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             264      the seller's total sales price of the bundled transaction.
             265          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             266          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             267      purchase price or sales price of the tangible personal property or product subject to taxation
             268      under this chapter is de minimis; and
             269          (B) may not use a combination of the seller's purchase price and the seller's sales price
             270      to determine if the purchase price or sales price of the tangible personal property or product
             271      subject to taxation under this chapter is de minimis.
             272          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             273      contract to determine if the sales price of tangible personal property or a product is de minimis.
             274          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             275      the seller's purchase price and the seller's sales price to determine if tangible personal property
             276      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             277      price of that retail sale.
             278          (19) "Certified automated system" means software certified by the governing board of
             279      the agreement that:
             280          (a) calculates the agreement sales and use tax imposed within a local taxing
             281      jurisdiction:


             282          (i) on a transaction; and
             283          (ii) in the states that are members of the agreement;
             284          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             285      member of the agreement; and
             286          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             287          (20) "Certified service provider" means an agent certified:
             288          (a) by the governing board of the agreement; and
             289          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             290      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             291      own purchases.
             292          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             293      suitable for general use.
             294          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             295      commission shall make rules:
             296          (i) listing the items that constitute "clothing"; and
             297          (ii) that are consistent with the list of items that constitute "clothing" under the
             298      agreement.
             299          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             300          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             301      fuels that does not constitute industrial use under Subsection [(51)] (52) or residential use
             302      under Subsection [(101)] (102).
             303          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             304      transporting passengers, freight, merchandise, or other property for hire within this state.
             305          (b) (i) "Common carrier" does not include a person who, at the time the person is
             306      traveling to or from that person's place of employment, transports a passenger to or from the
             307      passenger's place of employment.
             308          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             309      Utah Administrative Rulemaking Act, the commission may make rules defining what


             310      constitutes a person's place of employment.
             311          (25) "Component part" includes:
             312          (a) poultry, dairy, and other livestock feed, and their components;
             313          (b) baling ties and twine used in the baling of hay and straw;
             314          (c) fuel used for providing temperature control of orchards and commercial
             315      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             316      off-highway type farm machinery; and
             317          (d) feed, seeds, and seedlings.
             318          (26) "Computer" means an electronic device that accepts information:
             319          (a) (i) in digital form; or
             320          (ii) in a form similar to digital form; and
             321          (b) manipulates that information for a result based on a sequence of instructions.
             322          (27) "Computer software" means a set of coded instructions designed to cause:
             323          (a) a computer to perform a task; or
             324          (b) automatic data processing equipment to perform a task.
             325          (28) "Computer software maintenance contract" means a contract that obligates a seller
             326      of computer software to provide a customer with:
             327          (a) future updates or upgrades to computer software;
             328          (b) support services with respect to computer software; or
             329          (c) a combination of Subsections (28)(a) and (b).
             330          (29) (a) "Conference bridging service" means an ancillary service that links two or
             331      more participants of an audio conference call or video conference call.
             332          (b) "Conference bridging service" may include providing a telephone number as part of
             333      the ancillary service described in Subsection (29)(a).
             334          (c) "Conference bridging service" does not include a telecommunications service used
             335      to reach the ancillary service described in Subsection (29)(a).
             336          (30) "Construction materials" means any tangible personal property that will be
             337      converted into real property.


             338          (31) "Delivered electronically" means delivered to a purchaser by means other than
             339      tangible storage media.
             340          (32) (a) "Delivery charge" means a charge:
             341          (i) by a seller of:
             342          (A) tangible personal property;
             343          (B) a product transferred electronically; or
             344          (C) services; and
             345          (ii) for preparation and delivery of the tangible personal property, product transferred
             346      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             347      purchaser.
             348          (b) "Delivery charge" includes a charge for the following:
             349          (i) transportation;
             350          (ii) shipping;
             351          (iii) postage;
             352          (iv) handling;
             353          (v) crating; or
             354          (vi) packing.
             355          (33) "Detailed telecommunications billing service" means an ancillary service of
             356      separately stating information pertaining to individual calls on a customer's billing statement.
             357          (34) "Dietary supplement" means a product, other than tobacco, that:
             358          (a) is intended to supplement the diet;
             359          (b) contains one or more of the following dietary ingredients:
             360          (i) a vitamin;
             361          (ii) a mineral;
             362          (iii) an herb or other botanical;
             363          (iv) an amino acid;
             364          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             365      dietary intake; or


             366          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             367      described in Subsections (34)(b)(i) through (v);
             368          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             369          (A) tablet form;
             370          (B) capsule form;
             371          (C) powder form;
             372          (D) softgel form;
             373          (E) gelcap form; or
             374          (F) liquid form; or
             375          (ii) [notwithstanding Subsection (34)(c)(i),] if the product is not intended for ingestion
             376      in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             377          (A) as conventional food; and
             378          (B) for use as a sole item of:
             379          (I) a meal; or
             380          (II) the diet; and
             381          (d) is required to be labeled as a dietary supplement:
             382          (i) identifiable by the "Supplemental Facts" box found on the label; and
             383          (ii) as required by 21 C.F.R. Sec. 101.36.
             384          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             385      mail or other delivery service:
             386          (i) to:
             387          (A) a mass audience; or
             388          (B) addressees on a mailing list provided:
             389          (I) by a purchaser of the mailing list; or
             390          (II) at the discretion of the purchaser of the mailing list; and
             391          (ii) if the cost of the printed material is not billed directly to the recipients.
             392          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             393      purchaser to a seller of direct mail for inclusion in a package containing the printed material.


             394          (c) "Direct mail" does not include multiple items of printed material delivered to a
             395      single address.
             396          (36) "Directory assistance" means an ancillary service of providing:
             397          (a) address information; or
             398          (b) telephone number information.
             399          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             400      or supplies that:
             401          (i) cannot withstand repeated use; and
             402          (ii) are purchased by, for, or on behalf of a person other than:
             403          (A) a health care facility as defined in Section 26-21-2 ;
             404          (B) a health care provider as defined in Section 78B-3-403 ;
             405          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             406          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             407          (b) "Disposable home medical equipment or supplies" does not include:
             408          (i) a drug;
             409          (ii) durable medical equipment;
             410          (iii) a hearing aid;
             411          (iv) a hearing aid accessory;
             412          (v) mobility enhancing equipment; or
             413          (vi) tangible personal property used to correct impaired vision, including:
             414          (A) eyeglasses; or
             415          (B) contact lenses.
             416          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             417      commission may by rule define what constitutes medical equipment or supplies.
             418          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             419      compound, substance, or preparation that is:
             420          (i) recognized in:
             421          (A) the official United States Pharmacopoeia;


             422          (B) the official Homeopathic Pharmacopoeia of the United States;
             423          (C) the official National Formulary; or
             424          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             425          (ii) intended for use in the:
             426          (A) diagnosis of disease;
             427          (B) cure of disease;
             428          (C) mitigation of disease;
             429          (D) treatment of disease; or
             430          (E) prevention of disease; or
             431          (iii) intended to affect:
             432          (A) the structure of the body; or
             433          (B) any function of the body.
             434          (b) "Drug" does not include:
             435          (i) food and food ingredients;
             436          (ii) a dietary supplement;
             437          (iii) an alcoholic beverage; or
             438          (iv) a prosthetic device.
             439          (39) (a) [Except as provided in Subsection (39)(c), "durable] "Durable medical
             440      equipment" means equipment that:
             441          (i) can withstand repeated use;
             442          (ii) is primarily and customarily used to serve a medical purpose;
             443          (iii) generally is not useful to a person in the absence of illness or injury; and
             444          (iv) is not worn in or on the body.
             445          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             446      equipment described in Subsection (39)(a).
             447          (c) Notwithstanding Subsection (39)(a), "durable medical equipment" does not include
             448      mobility enhancing equipment.
             449          (40) "Electronic" means:


             450          (a) relating to technology; and
             451          (b) having:
             452          (i) electrical capabilities;
             453          (ii) digital capabilities;
             454          (iii) magnetic capabilities;
             455          (iv) wireless capabilities;
             456          (v) optical capabilities;
             457          (vi) electromagnetic capabilities; or
             458          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             459          (41) "Electronic financial payment service" means an establishment:
             460          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
             461      Clearinghouse Activities, of the 2012 North American Industry Classification System of the
             462      federal Executive Office of the President, Office of Management and Budget; and
             463          (b) that performs electronic financial payment services.
             464          [(41)] (42) "Employee" is as defined in Section 59-10-401 .
             465          [(42)] (43) "Fixed guideway" means a public transit facility that uses and occupies:
             466          (a) rail for the use of public transit; or
             467          (b) a separate right-of-way for the use of public transit.
             468          [(43)] (44) "Fixed wing turbine powered aircraft" means an aircraft that:
             469          (a) is powered by turbine engines;
             470          (b) operates on jet fuel; and
             471          (c) has wings that are permanently attached to the fuselage of the aircraft.
             472          [(44)] (45) "Fixed wireless service" means a telecommunications service that provides
             473      radio communication between fixed points.
             474          [(45)] (46) (a) "Food and food ingredients" means substances:
             475          (i) regardless of whether the substances are in:
             476          (A) liquid form;
             477          (B) concentrated form;


             478          (C) solid form;
             479          (D) frozen form;
             480          (E) dried form; or
             481          (F) dehydrated form; and
             482          (ii) that are:
             483          (A) sold for:
             484          (I) ingestion by humans; or
             485          (II) chewing by humans; and
             486          (B) consumed for the substance's:
             487          (I) taste; or
             488          (II) nutritional value.
             489          (b) "Food and food ingredients" includes an item described in Subsection [(86)]
             490      (87)(b)(iii).
             491          (c) "Food and food ingredients" does not include:
             492          (i) an alcoholic beverage;
             493          (ii) tobacco; or
             494          (iii) prepared food.
             495          [(46)] (47) (a) "Fundraising sales" means sales:
             496          (i) (A) made by a school; or
             497          (B) made by a school student;
             498          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             499      materials, or provide transportation; and
             500          (iii) that are part of an officially sanctioned school activity.
             501          (b) For purposes of Subsection [(46)] (47)(a)(iii), "officially sanctioned school activity"
             502      means a school activity:
             503          (i) that is conducted in accordance with a formal policy adopted by the school or school
             504      district governing the authorization and supervision of fundraising activities;
             505          (ii) that does not directly or indirectly compensate an individual teacher or other


             506      educational personnel by direct payment, commissions, or payment in kind; and
             507          (iii) the net or gross revenues from which are deposited in a dedicated account
             508      controlled by the school or school district.
             509          [(47)] (48) "Geothermal energy" means energy contained in heat that continuously
             510      flows outward from the earth that is used as the sole source of energy to produce electricity.
             511          [(48)] (49) "Governing board of the agreement" means the governing board of the
             512      agreement that is:
             513          (a) authorized to administer the agreement; and
             514          (b) established in accordance with the agreement.
             515          [(49)] (50) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
             516      means:
             517          (i) the executive branch of the state, including all departments, institutions, boards,
             518      divisions, bureaus, offices, commissions, and committees;
             519          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             520      Office of the Court Administrator, and similar administrative units in the judicial branch;
             521          (iii) the legislative branch of the state, including the House of Representatives, the
             522      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             523      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             524      Analyst;
             525          (iv) the National Guard;
             526          (v) an independent entity as defined in Section 63E-1-102 ; or
             527          (vi) a political subdivision as defined in Section 17B-1-102 .
             528          (b) "Governmental entity" does not include the state systems of public and higher
             529      education, including:
             530          (i) a college campus of the Utah College of Applied Technology;
             531          (ii) a school;
             532          (iii) the State Board of Education;
             533          (iv) the State Board of Regents; or


             534          (v) an institution of higher education.
             535          [(50)] (51) "Hydroelectric energy" means water used as the sole source of energy to
             536      produce electricity.
             537          [(51)] (52) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
             538      or other fuels:
             539          (a) in mining or extraction of minerals;
             540          (b) in agricultural operations to produce an agricultural product up to the time of
             541      harvest or placing the agricultural product into a storage facility, including:
             542          (i) commercial greenhouses;
             543          (ii) irrigation pumps;
             544          (iii) farm machinery;
             545          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             546      registered under Title 41, Chapter 1a, Part 2, Registration; and
             547          (v) other farming activities;
             548          (c) in manufacturing tangible personal property at an establishment described in SIC
             549      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             550      Executive Office of the President, Office of Management and Budget;
             551          (d) by a scrap recycler if:
             552          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             553      one or more of the following items into prepared grades of processed materials for use in new
             554      products:
             555          (A) iron;
             556          (B) steel;
             557          (C) nonferrous metal;
             558          (D) paper;
             559          (E) glass;
             560          (F) plastic;
             561          (G) textile; or


             562          (H) rubber; and
             563          (ii) the new products under Subsection [(51)] (52)(d)(i) would otherwise be made with
             564      nonrecycled materials; or
             565          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             566      cogeneration facility as defined in Section 54-2-1 .
             567          [(52)] (53) (a) Except as provided in Subsection [(52)] (53)(b), "installation charge"
             568      means a charge for installing:
             569          (i) tangible personal property; or
             570          (ii) a product transferred electronically.
             571          (b) "Installation charge" does not include a charge for:
             572          (i) repairs or renovations of:
             573          (A) tangible personal property; or
             574          (B) a product transferred electronically; or
             575          (ii) attaching tangible personal property or a product transferred electronically:
             576          (A) to other tangible personal property; and
             577          (B) as part of a manufacturing or fabrication process.
             578          [(53)] (54) "Institution of higher education" means an institution of higher education
             579      listed in Section 53B-2-101 .
             580          [(54)] (55) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             581      personal property or a product transferred electronically for:
             582          (i) (A) a fixed term; or
             583          (B) an indeterminate term; and
             584          (ii) consideration.
             585          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             586      amount of consideration may be increased or decreased by reference to the amount realized
             587      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             588      Code.
             589          (c) "Lease" or "rental" does not include:


             590          (i) a transfer of possession or control of property under a security agreement or
             591      deferred payment plan that requires the transfer of title upon completion of the required
             592      payments;
             593          (ii) a transfer of possession or control of property under an agreement that requires the
             594      transfer of title:
             595          (A) upon completion of required payments; and
             596          (B) if the payment of an option price does not exceed the greater of:
             597          (I) $100; or
             598          (II) 1% of the total required payments; or
             599          (iii) providing tangible personal property along with an operator for a fixed period of
             600      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             601      designed.
             602          (d) For purposes of Subsection [(54)] (55)(c)(iii), an operator is necessary for
             603      equipment to perform as designed if the operator's duties exceed the:
             604          (i) set-up of tangible personal property;
             605          (ii) maintenance of tangible personal property; or
             606          (iii) inspection of tangible personal property.
             607          [(55)] (56) "Life science establishment" means an establishment in this state that is
             608      classified under the following NAICS codes of the 2007 North American Industry
             609      Classification System of the federal Executive Office of the President, Office of Management
             610      and Budget:
             611          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             612          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             613      Manufacturing; or
             614          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             615          [(56)] (57) "Life science research and development facility" means a facility owned,
             616      leased, or rented by a life science establishment if research and development is performed in
             617      51% or more of the total area of the facility.


             618          [(57)] (58) "Load and leave" means delivery to a purchaser by use of a tangible storage
             619      media if the tangible storage media is not physically transferred to the purchaser.
             620          [(58)] (59) "Local taxing jurisdiction" means a:
             621          (a) county that is authorized to impose an agreement sales and use tax;
             622          (b) city that is authorized to impose an agreement sales and use tax; or
             623          (c) town that is authorized to impose an agreement sales and use tax.
             624          [(59)] (60) "Manufactured home" is as defined in Section 15A-1-302 .
             625          [(60)] (61) For purposes of Section 59-12-104 , "manufacturing facility" means:
             626          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             627      Industrial Classification Manual of the federal Executive Office of the President, Office of
             628      Management and Budget;
             629          (b) a scrap recycler if:
             630          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             631      one or more of the following items into prepared grades of processed materials for use in new
             632      products:
             633          (A) iron;
             634          (B) steel;
             635          (C) nonferrous metal;
             636          (D) paper;
             637          (E) glass;
             638          (F) plastic;
             639          (G) textile; or
             640          (H) rubber; and
             641          (ii) the new products under Subsection [(60)] (61)(b)(i) would otherwise be made with
             642      nonrecycled materials; or
             643          (c) a cogeneration facility as defined in Section 54-2-1 .
             644          [(61)] (62) "Member of the immediate family of the producer" means a person who is
             645      related to a producer described in Subsection 59-12-104 (20)(a) as a:


             646          (a) child or stepchild, regardless of whether the child or stepchild is:
             647          (i) an adopted child or adopted stepchild; or
             648          (ii) a foster child or foster stepchild;
             649          (b) grandchild or stepgrandchild;
             650          (c) grandparent or stepgrandparent;
             651          (d) nephew or stepnephew;
             652          (e) niece or stepniece;
             653          (f) parent or stepparent;
             654          (g) sibling or stepsibling;
             655          (h) spouse;
             656          (i) person who is the spouse of a person described in Subsections [(61)] (62)(a) through
             657      (g); or
             658          (j) person similar to a person described in Subsections [(61)] (62)(a) through (i) as
             659      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             660      Administrative Rulemaking Act.
             661          [(62)] (63) "Mobile home" is as defined in Section 15A-1-302 .
             662          [(63)] (64) "Mobile telecommunications service" is as defined in the Mobile
             663      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             664          [(64)] (65) (a) "Mobile wireless service" means a telecommunications service,
             665      regardless of the technology used, if:
             666          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             667          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             668          (iii) the origination point described in Subsection [(64)] (65)(a)(i) and the termination
             669      point described in Subsection [(64)] (65)(a)(ii) are not fixed.
             670          (b) "Mobile wireless service" includes a telecommunications service that is provided
             671      by a commercial mobile radio service provider.
             672          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             673      commission may by rule define "commercial mobile radio service provider."


             674          [(65)] (66) (a) Except as provided in Subsection [(65)] (66)(c), "mobility enhancing
             675      equipment" means equipment that is:
             676          (i) primarily and customarily used to provide or increase the ability to move from one
             677      place to another;
             678          (ii) appropriate for use in a:
             679          (A) home; or
             680          (B) motor vehicle; and
             681          (iii) not generally used by persons with normal mobility.
             682          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             683      the equipment described in Subsection [(65)] (66)(a).
             684          (c) [Notwithstanding Subsection (65) (66)(a), "mobility] "Mobility enhancing
             685      equipment" does not include:
             686          (i) a motor vehicle;
             687          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             688      vehicle manufacturer;
             689          (iii) durable medical equipment; or
             690          (iv) a prosthetic device.
             691          [(66)] (67) "Model 1 seller" means a seller registered under the agreement that has
             692      selected a certified service provider as the seller's agent to perform all of the seller's sales and
             693      use tax functions for agreement sales and use taxes other than the seller's obligation under
             694      Section 59-12-124 to remit a tax on the seller's own purchases.
             695          [(67)] (68) "Model 2 seller" means a seller registered under the agreement that:
             696          (a) except as provided in Subsection [(67)] (68)(b), has selected a certified automated
             697      system to perform the seller's sales tax functions for agreement sales and use taxes; and
             698          (b) [notwithstanding Subsection (67)(a),] retains responsibility for remitting all of the
             699      sales tax:
             700          (i) collected by the seller; and
             701          (ii) to the appropriate local taxing jurisdiction.


             702          [(68)] (69) (a) Subject to Subsection [(68)] (69)(b), "model 3 seller" means a seller
             703      registered under the agreement that has:
             704          (i) sales in at least five states that are members of the agreement;
             705          (ii) total annual sales revenues of at least $500,000,000;
             706          (iii) a proprietary system that calculates the amount of tax:
             707          (A) for an agreement sales and use tax; and
             708          (B) due to each local taxing jurisdiction; and
             709          (iv) entered into a performance agreement with the governing board of the agreement.
             710          (b) For purposes of Subsection [(68)] (69)(a), "model 3 seller" includes an affiliated
             711      group of sellers using the same proprietary system.
             712          [(69)] (70) "Model 4 seller" means a seller that is registered under the agreement and is
             713      not a model 1 seller, model 2 seller, or model 3 seller.
             714          [(70)] (71) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             715          [(71)] (72) "Motor vehicle" is as defined in Section 41-1a-102 .
             716          [(72)] (73) "Oil sands" means impregnated bituminous sands that:
             717          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             718      other hydrocarbons, or otherwise treated;
             719          (b) yield mixtures of liquid hydrocarbon; and
             720          (c) require further processing other than mechanical blending before becoming finished
             721      petroleum products.
             722          [(73)] (74) "Oil shale" means a group of fine black to dark brown shales containing
             723      kerogen material that yields petroleum upon heating and distillation.
             724          [(74)] (75) "Optional computer software maintenance contract" means a computer
             725      software maintenance contract that a customer is not obligated to purchase as a condition to the
             726      retail sale of computer software.
             727          [(75)] (76) (a) "Other fuels" means products that burn independently to produce heat or
             728      energy.
             729          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible


             730      personal property.
             731          [(76)] (77) (a) "Paging service" means a telecommunications service that provides
             732      transmission of a coded radio signal for the purpose of activating a specific pager.
             733          (b) For purposes of Subsection [(76)] (77)(a), the transmission of a coded radio signal
             734      includes a transmission by message or sound.
             735          [(77)] (78) "Pawnbroker" is as defined in Section 13-32a-102 .
             736          [(78)] (79) "Pawn transaction" is as defined in Section 13-32a-102 .
             737          [(79)] (80) (a) "Permanently attached to real property" means that for tangible personal
             738      property attached to real property:
             739          (i) the attachment of the tangible personal property to the real property:
             740          (A) is essential to the use of the tangible personal property; and
             741          (B) suggests that the tangible personal property will remain attached to the real
             742      property in the same place over the useful life of the tangible personal property; or
             743          (ii) if the tangible personal property is detached from the real property, the detachment
             744      would:
             745          (A) cause substantial damage to the tangible personal property; or
             746          (B) require substantial alteration or repair of the real property to which the tangible
             747      personal property is attached.
             748          (b) "Permanently attached to real property" includes:
             749          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             750          (A) essential to the operation of the tangible personal property; and
             751          (B) attached only to facilitate the operation of the tangible personal property;
             752          (ii) a temporary detachment of tangible personal property from real property for a
             753      repair or renovation if the repair or renovation is performed where the tangible personal
             754      property and real property are located; or
             755          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             756      Subsection [(79)] (80)(c)(iii) or (iv).
             757          (c) "Permanently attached to real property" does not include:


             758          (i) the attachment of portable or movable tangible personal property to real property if
             759      that portable or movable tangible personal property is attached to real property only for:
             760          (A) convenience;
             761          (B) stability; or
             762          (C) for an obvious temporary purpose;
             763          (ii) the detachment of tangible personal property from real property except for the
             764      detachment described in Subsection [(79)] (80)(b)(ii);
             765          (iii) an attachment of the following tangible personal property to real property if the
             766      attachment to real property is only through a line that supplies water, electricity, gas,
             767      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             768      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             769          (A) a computer;
             770          (B) a telephone;
             771          (C) a television; or
             772          (D) tangible personal property similar to Subsections [(79)] (80)(c)(iii)(A) through (C)
             773      as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             774      Administrative Rulemaking Act; or
             775          (iv) an item listed in Subsection [(117)] (119)(c).
             776          [(80)] (81) "Person" includes any individual, firm, partnership, joint venture,
             777      association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
             778      city, municipality, district, or other local governmental entity of the state, or any group or
             779      combination acting as a unit.
             780          [(81)] (82) "Place of primary use":
             781          (a) for telecommunications service other than mobile telecommunications service,
             782      means the street address representative of where the customer's use of the telecommunications
             783      service primarily occurs, which shall be:
             784          (i) the residential street address of the customer; or
             785          (ii) the primary business street address of the customer; or


             786          (b) for mobile telecommunications service, is as defined in the Mobile
             787      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             788          [(82)] (83) (a) "Postpaid calling service" means a telecommunications service a person
             789      obtains by making a payment on a call-by-call basis:
             790          (i) through the use of a:
             791          (A) bank card;
             792          (B) credit card;
             793          (C) debit card; or
             794          (D) travel card; or
             795          (ii) by a charge made to a telephone number that is not associated with the origination
             796      or termination of the telecommunications service.
             797          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             798      service, that would be a prepaid wireless calling service if the service were exclusively a
             799      telecommunications service.
             800          [(83)] (84) "Postproduction" means an activity related to the finishing or duplication of
             801      a medium described in Subsection 59-12-104 (54)(a).
             802          [(84)] (85) "Prepaid calling service" means a telecommunications service:
             803          (a) that allows a purchaser access to telecommunications service that is exclusively
             804      telecommunications service;
             805          (b) that:
             806          (i) is paid for in advance; and
             807          (ii) enables the origination of a call using an:
             808          (A) access number; or
             809          (B) authorization code;
             810          (c) that is dialed:
             811          (i) manually; or
             812          (ii) electronically; and
             813          (d) sold in predetermined units or dollars that decline:


             814          (i) by a known amount; and
             815          (ii) with use.
             816          [(85)] (86) "Prepaid wireless calling service" means a telecommunications service:
             817          (a) that provides the right to utilize:
             818          (i) mobile wireless service; and
             819          (ii) other service that is not a telecommunications service, including:
             820          (A) the download of a product transferred electronically;
             821          (B) a content service; or
             822          (C) an ancillary service;
             823          (b) that:
             824          (i) is paid for in advance; and
             825          (ii) enables the origination of a call using an:
             826          (A) access number; or
             827          (B) authorization code;
             828          (c) that is dialed:
             829          (i) manually; or
             830          (ii) electronically; and
             831          (d) sold in predetermined units or dollars that decline:
             832          (i) by a known amount; and
             833          (ii) with use.
             834          [(86)] (87) (a) "Prepared food" means:
             835          (i) food:
             836          (A) sold in a heated state; or
             837          (B) heated by a seller;
             838          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             839      item; or
             840          (iii) except as provided in Subsection [(86)] (87)(c), food sold with an eating utensil
             841      provided by the seller, including a:


             842          (A) plate;
             843          (B) knife;
             844          (C) fork;
             845          (D) spoon;
             846          (E) glass;
             847          (F) cup;
             848          (G) napkin; or
             849          (H) straw.
             850          (b) "Prepared food" does not include:
             851          (i) food that a seller only:
             852          (A) cuts;
             853          (B) repackages; or
             854          (C) pasteurizes; or
             855          (ii) (A) the following:
             856          (I) raw egg;
             857          (II) raw fish;
             858          (III) raw meat;
             859          (IV) raw poultry; or
             860          (V) a food containing an item described in Subsections [(86)] (87)(b)(ii)(A)(I) through
             861      (IV); and
             862          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             863      Food and Drug Administration's Food Code that a consumer cook the items described in
             864      Subsection [(86)] (87)(b)(ii)(A) to prevent food borne illness; or
             865          (iii) the following if sold without eating utensils provided by the seller:
             866          (A) food and food ingredients sold by a seller if the seller's proper primary
             867      classification under the 2002 North American Industry Classification System of the federal
             868      Executive Office of the President, Office of Management and Budget, is manufacturing in
             869      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla


             870      Manufacturing;
             871          (B) food and food ingredients sold in an unheated state:
             872          (I) by weight or volume; and
             873          (II) as a single item; or
             874          (C) a bakery item, including:
             875          (I) a bagel;
             876          (II) a bar;
             877          (III) a biscuit;
             878          (IV) bread;
             879          (V) a bun;
             880          (VI) a cake;
             881          (VII) a cookie;
             882          (VIII) a croissant;
             883          (IX) a danish;
             884          (X) a donut;
             885          (XI) a muffin;
             886          (XII) a pastry;
             887          (XIII) a pie;
             888          (XIV) a roll;
             889          (XV) a tart;
             890          (XVI) a torte; or
             891          (XVII) a tortilla.
             892          (c) [Notwithstanding Subsection (86)(a)(iii), an] An eating utensil provided by the
             893      seller does not include the following used to transport the food:
             894          (i) a container; or
             895          (ii) packaging.
             896          [(87)] (88) "Prescription" means an order, formula, or recipe that is issued:
             897          (a) (i) orally;


             898          (ii) in writing;
             899          (iii) electronically; or
             900          (iv) by any other manner of transmission; and
             901          (b) by a licensed practitioner authorized by the laws of a state.
             902          [(88)] (89) (a) Except as provided in Subsection [(88)] (89)(b)(ii) or (iii), "prewritten
             903      computer software" means computer software that is not designed and developed:
             904          (i) by the author or other creator of the computer software; and
             905          (ii) to the specifications of a specific purchaser.
             906          (b) "Prewritten computer software" includes:
             907          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             908      software is not designed and developed:
             909          (A) by the author or other creator of the computer software; and
             910          (B) to the specifications of a specific purchaser;
             911          (ii) [notwithstanding Subsection (88)(a),] computer software designed and developed
             912      by the author or other creator of the computer software to the specifications of a specific
             913      purchaser if the computer software is sold to a person other than the purchaser; or
             914          (iii) [notwithstanding Subsection (88)(a) and] except as provided in Subsection [(88)]
             915      (89)(c), prewritten computer software or a prewritten portion of prewritten computer software:
             916          (A) that is modified or enhanced to any degree; and
             917          (B) if the modification or enhancement described in Subsection [(88)] (89)(b)(iii)(A) is
             918      designed and developed to the specifications of a specific purchaser.
             919          (c) [Notwithstanding Subsection (88)(b)(iii), "prewritten] "Prewritten computer
             920      software" does not include a modification or enhancement described in Subsection [(88)]
             921      (89)(b)(iii) if the charges for the modification or enhancement are:
             922          (i) reasonable; and
             923          (ii) separately stated on the invoice or other statement of price provided to the
             924      purchaser.
             925          [(89)] (90) (a) "Private communication service" means a telecommunications service:


             926          (i) that entitles a customer to exclusive or priority use of one or more communications
             927      channels between or among termination points; and
             928          (ii) regardless of the manner in which the one or more communications channels are
             929      connected.
             930          (b) "Private communications service" includes the following provided in connection
             931      with the use of one or more communications channels:
             932          (i) an extension line;
             933          (ii) a station;
             934          (iii) switching capacity; or
             935          (iv) another associated service that is provided in connection with the use of one or
             936      more communications channels as defined in Section 59-12-215 .
             937          [(90)] (91) (a) Except as provided in Subsection [(90)] (91)(b), "product transferred
             938      electronically" means a product transferred electronically that would be subject to a tax under
             939      this chapter if that product was transferred in a manner other than electronically.
             940          (b) "Product transferred electronically" does not include:
             941          (i) an ancillary service;
             942          (ii) computer software; or
             943          (iii) a telecommunications service.
             944          [(91)] (92) (a) "Prosthetic device" means a device that is worn on or in the body to:
             945          (i) artificially replace a missing portion of the body;
             946          (ii) prevent or correct a physical deformity or physical malfunction; or
             947          (iii) support a weak or deformed portion of the body.
             948          (b) "Prosthetic device" includes:
             949          (i) parts used in the repairs or renovation of a prosthetic device;
             950          (ii) replacement parts for a prosthetic device;
             951          (iii) a dental prosthesis; or
             952          (iv) a hearing aid.
             953          (c) "Prosthetic device" does not include:


             954          (i) corrective eyeglasses; or
             955          (ii) contact lenses.
             956          [(92)] (93) (a) "Protective equipment" means an item:
             957          (i) for human wear; and
             958          (ii) that is:
             959          (A) designed as protection:
             960          (I) to the wearer against injury or disease; or
             961          (II) against damage or injury of other persons or property; and
             962          (B) not suitable for general use.
             963          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             964      commission shall make rules:
             965          (i) listing the items that constitute "protective equipment"; and
             966          (ii) that are consistent with the list of items that constitute "protective equipment"
             967      under the agreement.
             968          [(93)] (94) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             969      written or printed matter, other than a photocopy:
             970          (i) regardless of:
             971          (A) characteristics;
             972          (B) copyright;
             973          (C) form;
             974          (D) format;
             975          (E) method of reproduction; or
             976          (F) source; and
             977          (ii) made available in printed or electronic format.
             978          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             979      commission may by rule define the term "photocopy."
             980          [(94)] (95) (a) "Purchase price" and "sales price" mean the total amount of
             981      consideration:


             982          (i) valued in money; and
             983          (ii) for which tangible personal property, a product transferred electronically, or
             984      services are:
             985          (A) sold;
             986          (B) leased; or
             987          (C) rented.
             988          (b) "Purchase price" and "sales price" include:
             989          (i) the seller's cost of the tangible personal property, a product transferred
             990      electronically, or services sold;
             991          (ii) expenses of the seller, including:
             992          (A) the cost of materials used;
             993          (B) a labor cost;
             994          (C) a service cost;
             995          (D) interest;
             996          (E) a loss;
             997          (F) the cost of transportation to the seller; or
             998          (G) a tax imposed on the seller;
             999          (iii) a charge by the seller for any service necessary to complete the sale; or
             1000          (iv) consideration a seller receives from a person other than the purchaser if:
             1001          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1002      and
             1003          (II) the consideration described in Subsection [(94)] (95)(b)(iv)(A)(I) is directly related
             1004      to a price reduction or discount on the sale;
             1005          (B) the seller has an obligation to pass the price reduction or discount through to the
             1006      purchaser;
             1007          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1008      the seller at the time of the sale to the purchaser; and
             1009          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the


             1010      seller to claim a price reduction or discount; and
             1011          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1012      coupon, or other documentation with the understanding that the person other than the seller
             1013      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1014          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1015      organization allowed a price reduction or discount, except that a preferred customer card that is
             1016      available to any patron of a seller does not constitute membership in a group or organization
             1017      allowed a price reduction or discount; or
             1018          (III) the price reduction or discount is identified as a third party price reduction or
             1019      discount on the:
             1020          (Aa) invoice the purchaser receives; or
             1021          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1022          (c) "Purchase price" and "sales price" do not include:
             1023          (i) a discount:
             1024          (A) in a form including:
             1025          (I) cash;
             1026          (II) term; or
             1027          (III) coupon;
             1028          (B) that is allowed by a seller;
             1029          (C) taken by a purchaser on a sale; and
             1030          (D) that is not reimbursed by a third party; or
             1031          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1032      provided to the purchaser:
             1033          (A) the following from credit extended on the sale of tangible personal property or
             1034      services:
             1035          (I) a carrying charge;
             1036          (II) a financing charge; or
             1037          (III) an interest charge;


             1038          (B) a delivery charge;
             1039          (C) an installation charge;
             1040          (D) a manufacturer rebate on a motor vehicle; or
             1041          (E) a tax or fee legally imposed directly on the consumer.
             1042          [(95)] (96) "Purchaser" means a person to whom:
             1043          (a) a sale of tangible personal property is made;
             1044          (b) a product is transferred electronically; or
             1045          (c) a service is furnished.
             1046          [(96)] (97) "Regularly rented" means:
             1047          (a) rented to a guest for value three or more times during a calendar year; or
             1048          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1049      value.
             1050          [(97)] (98) "Rental" is as defined in Subsection [(54)] (55).
             1051          [(98)] (99) (a) Except as provided in Subsection [(98)] (99)(b), "repairs or renovations
             1052      of tangible personal property" means:
             1053          (i) a repair or renovation of tangible personal property that is not permanently attached
             1054      to real property; or
             1055          (ii) attaching tangible personal property or a product transferred electronically to other
             1056      tangible personal property or detaching tangible personal property or a product transferred
             1057      electronically from other tangible personal property if:
             1058          (A) the other tangible personal property to which the tangible personal property or
             1059      product transferred electronically is attached or from which the tangible personal property or
             1060      product transferred electronically is detached is not permanently attached to real property; and
             1061          (B) the attachment of tangible personal property or a product transferred electronically
             1062      to other tangible personal property or detachment of tangible personal property or a product
             1063      transferred electronically from other tangible personal property is made in conjunction with a
             1064      repair or replacement of tangible personal property or a product transferred electronically.
             1065          (b) "Repairs or renovations of tangible personal property" does not include:


             1066          (i) attaching prewritten computer software to other tangible personal property if the
             1067      other tangible personal property to which the prewritten computer software is attached is not
             1068      permanently attached to real property; or
             1069          (ii) detaching prewritten computer software from other tangible personal property if the
             1070      other tangible personal property from which the prewritten computer software is detached is
             1071      not permanently attached to real property.
             1072          [(99)] (100) "Research and development" means the process of inquiry or
             1073      experimentation aimed at the discovery of facts, devices, technologies, or applications and the
             1074      process of preparing those devices, technologies, or applications for marketing.
             1075          [(100)] (101) (a) "Residential telecommunications services" means a
             1076      telecommunications service or an ancillary service that is provided to an individual for personal
             1077      use:
             1078          (i) at a residential address; or
             1079          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1080      service or ancillary service is provided to and paid for by the individual residing at the
             1081      institution rather than the institution.
             1082          (b) For purposes of Subsection [(100)] (101)(a)(i), a residential address includes an:
             1083          (i) apartment; or
             1084          (ii) other individual dwelling unit.
             1085          [(101)] (102) "Residential use" means the use in or around a home, apartment building,
             1086      sleeping quarters, and similar facilities or accommodations.
             1087          [(102)] (103) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             1088      other than:
             1089          (a) resale;
             1090          (b) sublease; or
             1091          (c) subrent.
             1092          [(103)] (104) (a) "Retailer" means any person engaged in a regularly organized
             1093      business in tangible personal property or any other taxable transaction under Subsection


             1094      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             1095          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1096      engaged in the business of selling to users or consumers within the state.
             1097          [(104)] (105) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1098      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1099      Subsection 59-12-103 (1), for consideration.
             1100          (b) "Sale" includes:
             1101          (i) installment and credit sales;
             1102          (ii) any closed transaction constituting a sale;
             1103          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1104      chapter;
             1105          (iv) any transaction if the possession of property is transferred but the seller retains the
             1106      title as security for the payment of the price; and
             1107          (v) any transaction under which right to possession, operation, or use of any article of
             1108      tangible personal property is granted under a lease or contract and the transfer of possession
             1109      would be taxable if an outright sale were made.
             1110          [(105)] (106) "Sale at retail" is as defined in Subsection [(102)] (103).
             1111          [(106)] (107) "Sale-leaseback transaction" means a transaction by which title to
             1112      tangible personal property or a product transferred electronically that is subject to a tax under
             1113      this chapter is transferred:
             1114          (a) by a purchaser-lessee;
             1115          (b) to a lessor;
             1116          (c) for consideration; and
             1117          (d) if:
             1118          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1119      of the tangible personal property or product transferred electronically;
             1120          (ii) the sale of the tangible personal property or product transferred electronically to the
             1121      lessor is intended as a form of financing:


             1122          (A) for the tangible personal property or product transferred electronically; and
             1123          (B) to the purchaser-lessee; and
             1124          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1125      is required to:
             1126          (A) capitalize the tangible personal property or product transferred electronically for
             1127      financial reporting purposes; and
             1128          (B) account for the lease payments as payments made under a financing arrangement.
             1129          [(107)] (108) "Sales price" is as defined in Subsection [(94)] (95).
             1130          [(108)] (109) (a) "Sales relating to schools" means the following sales by, amounts
             1131      paid to, or amounts charged by a school:
             1132          (i) sales that are directly related to the school's educational functions or activities
             1133      including:
             1134          (A) the sale of:
             1135          (I) textbooks;
             1136          (II) textbook fees;
             1137          (III) laboratory fees;
             1138          (IV) laboratory supplies; or
             1139          (V) safety equipment;
             1140          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1141      that:
             1142          (I) a student is specifically required to wear as a condition of participation in a
             1143      school-related event or school-related activity; and
             1144          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1145      place of ordinary clothing;
             1146          (C) sales of the following if the net or gross revenues generated by the sales are
             1147      deposited into a school district fund or school fund dedicated to school meals:
             1148          (I) food and food ingredients; or
             1149          (II) prepared food; or


             1150          (D) transportation charges for official school activities; or
             1151          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1152      event or school-related activity.
             1153          (b) "Sales relating to schools" does not include:
             1154          (i) bookstore sales of items that are not educational materials or supplies;
             1155          (ii) except as provided in Subsection [(108)] (109)(a)(i)(B):
             1156          (A) clothing;
             1157          (B) clothing accessories or equipment;
             1158          (C) protective equipment; or
             1159          (D) sports or recreational equipment; or
             1160          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1161      event or school-related activity if the amounts paid or charged are passed through to a person:
             1162          (A) other than a:
             1163          (I) school;
             1164          (II) nonprofit organization authorized by a school board or a governing body of a
             1165      private school to organize and direct a competitive secondary school activity; or
             1166          (III) nonprofit association authorized by a school board or a governing body of a
             1167      private school to organize and direct a competitive secondary school activity; and
             1168          (B) that is required to collect sales and use taxes under this chapter.
             1169          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1170      commission may make rules defining the term "passed through."
             1171          [(109)] (110) For purposes of this section and Section 59-12-104 , "school":
             1172          (a) means:
             1173          (i) an elementary school or a secondary school that:
             1174          (A) is a:
             1175          (I) public school; or
             1176          (II) private school; and
             1177          (B) provides instruction for one or more grades kindergarten through 12; or


             1178          (ii) a public school district; and
             1179          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1180          [(110)] (111) "Seller" means a person that makes a sale, lease, or rental of:
             1181          (a) tangible personal property;
             1182          (b) a product transferred electronically; or
             1183          (c) a service.
             1184          [(111)] (112) (a) "Semiconductor fabricating, processing, research, or development
             1185      materials" means tangible personal property or a product transferred electronically if the
             1186      tangible personal property or product transferred electronically is:
             1187          (i) used primarily in the process of:
             1188          (A) (I) manufacturing a semiconductor;
             1189          (II) fabricating a semiconductor; or
             1190          (III) research or development of a:
             1191          (Aa) semiconductor; or
             1192          (Bb) semiconductor manufacturing process; or
             1193          (B) maintaining an environment suitable for a semiconductor; or
             1194          (ii) consumed primarily in the process of:
             1195          (A) (I) manufacturing a semiconductor;
             1196          (II) fabricating a semiconductor; or
             1197          (III) research or development of a:
             1198          (Aa) semiconductor; or
             1199          (Bb) semiconductor manufacturing process; or
             1200          (B) maintaining an environment suitable for a semiconductor.
             1201          (b) "Semiconductor fabricating, processing, research, or development materials"
             1202      includes:
             1203          (i) parts used in the repairs or renovations of tangible personal property or a product
             1204      transferred electronically described in Subsection [(111)] (112)(a); or
             1205          (ii) a chemical, catalyst, or other material used to:


             1206          (A) produce or induce in a semiconductor a:
             1207          (I) chemical change; or
             1208          (II) physical change;
             1209          (B) remove impurities from a semiconductor; or
             1210          (C) improve the marketable condition of a semiconductor.
             1211          [(112)] (113) "Senior citizen center" means a facility having the primary purpose of
             1212      providing services to the aged as defined in Section 62A-3-101 .
             1213          [(113)] (114) "Simplified electronic return" means the electronic return:
             1214          (a) described in Section 318(C) of the agreement; and
             1215          (b) approved by the governing board of the agreement.
             1216          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             1217      producing electricity.
             1218          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             1219          (i) designed for human use; and
             1220          (ii) that is:
             1221          (A) worn in conjunction with:
             1222          (I) an athletic activity; or
             1223          (II) a recreational activity; and
             1224          (B) not suitable for general use.
             1225          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1226      commission shall make rules:
             1227          (i) listing the items that constitute "sports or recreational equipment"; and
             1228          (ii) that are consistent with the list of items that constitute "sports or recreational
             1229      equipment" under the agreement.
             1230          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             1231          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             1232      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1233      except sale in the regular course of business.


             1234          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             1235      personal property" means personal property that:
             1236          (i) may be:
             1237          (A) seen;
             1238          (B) weighed;
             1239          (C) measured;
             1240          (D) felt; or
             1241          (E) touched; or
             1242          (ii) is in any manner perceptible to the senses.
             1243          (b) "Tangible personal property" includes:
             1244          (i) electricity;
             1245          (ii) water;
             1246          (iii) gas;
             1247          (iv) steam; or
             1248          (v) prewritten computer software, regardless of the manner in which the prewritten
             1249      computer software is transferred.
             1250          (c) "Tangible personal property" includes the following regardless of whether the item
             1251      is attached to real property:
             1252          (i) a dishwasher;
             1253          (ii) a dryer;
             1254          (iii) a freezer;
             1255          (iv) a microwave;
             1256          (v) a refrigerator;
             1257          (vi) a stove;
             1258          (vii) a washer; or
             1259          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             1260      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1261      Rulemaking Act.


             1262          (d) "Tangible personal property" does not include a product that is transferred
             1263      electronically.
             1264          (e) "Tangible personal property" does not include the following if attached to real
             1265      property, regardless of whether the attachment to real property is only through a line that
             1266      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1267      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1268      Rulemaking Act:
             1269          (i) a hot water heater;
             1270          (ii) a water filtration system; or
             1271          (iii) a water softener system.
             1272          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1273      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             1274      leased primarily to enable or facilitate one or more of the following to function:
             1275          (i) telecommunications switching or routing equipment, machinery, or software; or
             1276          (ii) telecommunications transmission equipment, machinery, or software.
             1277          (b) The following apply to Subsection [(119)] (120)(a):
             1278          (i) a pole;
             1279          (ii) software;
             1280          (iii) a supplementary power supply;
             1281          (iv) temperature or environmental equipment or machinery;
             1282          (v) test equipment;
             1283          (vi) a tower; or
             1284          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1285      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             1286      accordance with Subsection [(119)] (120)(c).
             1287          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1288      commission may by rule define what constitutes equipment, machinery, or software that
             1289      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).


             1290          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             1291      911 service" means equipment, machinery, or software that is required to comply with 47
             1292      C.F.R. Sec. 20.18.
             1293          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             1294      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1295      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1296      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1297      of the following:
             1298          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1299          (b) telecommunications switching or routing equipment, machinery, or software; or
             1300          (c) telecommunications transmission equipment, machinery, or software.
             1301          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             1302      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1303      point, or among or between points.
             1304          (b) "Telecommunications service" includes:
             1305          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1306      processing application is used to act:
             1307          (A) on the code, form, or protocol of the content;
             1308          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1309          (C) regardless of whether the service:
             1310          (I) is referred to as voice over Internet protocol service; or
             1311          (II) is classified by the Federal Communications Commission as enhanced or value
             1312      added;
             1313          (ii) an 800 service;
             1314          (iii) a 900 service;
             1315          (iv) a fixed wireless service;
             1316          (v) a mobile wireless service;
             1317          (vi) a postpaid calling service;


             1318          (vii) a prepaid calling service;
             1319          (viii) a prepaid wireless calling service; or
             1320          (ix) a private communications service.
             1321          (c) "Telecommunications service" does not include:
             1322          (i) advertising, including directory advertising;
             1323          (ii) an ancillary service;
             1324          (iii) a billing and collection service provided to a third party;
             1325          (iv) a data processing and information service if:
             1326          (A) the data processing and information service allows data to be:
             1327          (I) (Aa) acquired;
             1328          (Bb) generated;
             1329          (Cc) processed;
             1330          (Dd) retrieved; or
             1331          (Ee) stored; and
             1332          (II) delivered by an electronic transmission to a purchaser; and
             1333          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1334      or information;
             1335          (v) installation or maintenance of the following on a customer's premises:
             1336          (A) equipment; or
             1337          (B) wiring;
             1338          (vi) Internet access service;
             1339          (vii) a paging service;
             1340          (viii) a product transferred electronically, including:
             1341          (A) music;
             1342          (B) reading material;
             1343          (C) a ring tone;
             1344          (D) software; or
             1345          (E) video;


             1346          (ix) a radio and television audio and video programming service:
             1347          (A) regardless of the medium; and
             1348          (B) including:
             1349          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1350      programming service by a programming service provider;
             1351          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1352          (III) audio and video programming services delivered by a commercial mobile radio
             1353      service provider as defined in 47 C.F.R. Sec. 20.3;
             1354          (x) a value-added nonvoice data service; or
             1355          (xi) tangible personal property.
             1356          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             1357          (i) owns, controls, operates, or manages a telecommunications service; and
             1358          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             1359      with or resale to any person of the telecommunications service.
             1360          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             1361      provider whether or not the Public Service Commission of Utah regulates:
             1362          (i) that person; or
             1363          (ii) the telecommunications service that the person owns, controls, operates, or
             1364      manages.
             1365          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             1366      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             1367      leased primarily for switching or routing:
             1368          (i) an ancillary service;
             1369          (ii) data communications;
             1370          (iii) voice communications; or
             1371          (iv) telecommunications service.
             1372          (b) The following apply to Subsection [(124)] (125)(a):
             1373          (i) a bridge;


             1374          (ii) a computer;
             1375          (iii) a cross connect;
             1376          (iv) a modem;
             1377          (v) a multiplexer;
             1378          (vi) plug in circuitry;
             1379          (vii) a router;
             1380          (viii) software;
             1381          (ix) a switch; or
             1382          (x) equipment, machinery, or software that functions similarly to an item listed in
             1383      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             1384      accordance with Subsection [(124)] (125)(c).
             1385          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1386      commission may by rule define what constitutes equipment, machinery, or software that
             1387      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             1388          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             1389      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             1390      leased primarily for sending, receiving, or transporting:
             1391          (i) an ancillary service;
             1392          (ii) data communications;
             1393          (iii) voice communications; or
             1394          (iv) telecommunications service.
             1395          (b) The following apply to Subsection [(125)] (126)(a):
             1396          (i) an amplifier;
             1397          (ii) a cable;
             1398          (iii) a closure;
             1399          (iv) a conduit;
             1400          (v) a controller;
             1401          (vi) a duplexer;


             1402          (vii) a filter;
             1403          (viii) an input device;
             1404          (ix) an input/output device;
             1405          (x) an insulator;
             1406          (xi) microwave machinery or equipment;
             1407          (xii) an oscillator;
             1408          (xiii) an output device;
             1409          (xiv) a pedestal;
             1410          (xv) a power converter;
             1411          (xvi) a power supply;
             1412          (xvii) a radio channel;
             1413          (xviii) a radio receiver;
             1414          (xix) a radio transmitter;
             1415          (xx) a repeater;
             1416          (xxi) software;
             1417          (xxii) a terminal;
             1418          (xxiii) a timing unit;
             1419          (xxiv) a transformer;
             1420          (xxv) a wire; or
             1421          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1422      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             1423      accordance with Subsection [(125)] (126)(c).
             1424          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1425      commission may by rule define what constitutes equipment, machinery, or software that
             1426      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             1427          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             1428      printed material that is required for a course:
             1429          (i) offered by an institution of higher education; and


             1430          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1431          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1432          [(127)] (128) "Tobacco" means:
             1433          (a) a cigarette;
             1434          (b) a cigar;
             1435          (c) chewing tobacco;
             1436          (d) pipe tobacco; or
             1437          (e) any other item that contains tobacco.
             1438          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             1439      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1440      operate the amusement device, skill device, or ride device.
             1441          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             1442      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1443      incident to the ownership or the leasing of that tangible personal property, product transferred
             1444      electronically, or service.
             1445          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1446      property, a product transferred electronically, or a service in the regular course of business and
             1447      held for resale.
             1448          [(130)] (131) "Value-added nonvoice data service" means a service:
             1449          (a) that otherwise meets the definition of a telecommunications service except that a
             1450      computer processing application is used to act primarily for a purpose other than conveyance,
             1451      routing, or transmission; and
             1452          (b) with respect to which a computer processing application is used to act on data or
             1453      information:
             1454          (i) code;
             1455          (ii) content;
             1456          (iii) form; or
             1457          (iv) protocol.


             1458          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             1459      that are required to be titled, registered, or titled and registered:
             1460          (i) an aircraft as defined in Section 72-10-102 ;
             1461          (ii) a vehicle as defined in Section 41-1a-102 ;
             1462          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1463          (iv) a vessel as defined in Section 41-1a-102 .
             1464          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1465          (i) a vehicle described in Subsection [(131)] (132)(a); or
             1466          (ii) (A) a locomotive;
             1467          (B) a freight car;
             1468          (C) railroad work equipment; or
             1469          (D) other railroad rolling stock.
             1470          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             1471      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             1472          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             1473          (i) is offered in connection with one or more telecommunications services; and
             1474          (ii) offers an advanced calling feature that allows a customer to:
             1475          (A) identify a caller; and
             1476          (B) manage multiple calls and call connections.
             1477          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1478      conference bridging service.
             1479          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             1480      customer to receive, send, or store a recorded message.
             1481          (b) "Voice mail service" does not include a vertical service that a customer is required
             1482      to have in order to utilize a voice mail service.
             1483          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             1484      facility" means a facility that generates electricity:
             1485          (i) using as the primary source of energy waste materials that would be placed in a


             1486      landfill or refuse pit if it were not used to generate electricity, including:
             1487          (A) tires;
             1488          (B) waste coal;
             1489          (C) oil shale; or
             1490          (D) municipal solid waste; and
             1491          (ii) in amounts greater than actually required for the operation of the facility.
             1492          (b) "Waste energy facility" does not include a facility that incinerates:
             1493          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1494          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1495          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1496          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             1497      electricity.
             1498          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1499      geographic location by the United States Postal Service.
             1500          Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1501           59-12-102 (Effective 07/01/14). Definitions.
             1502          As used in this chapter:
             1503          (1) "800 service" means a telecommunications service that:
             1504          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1505          (b) is typically marketed:
             1506          (i) under the name 800 toll-free calling;
             1507          (ii) under the name 855 toll-free calling;
             1508          (iii) under the name 866 toll-free calling;
             1509          (iv) under the name 877 toll-free calling;
             1510          (v) under the name 888 toll-free calling; or
             1511          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1512      Federal Communications Commission.
             1513          (2) (a) "900 service" means an inbound toll telecommunications service that:


             1514          (i) a subscriber purchases;
             1515          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1516      the subscriber's:
             1517          (A) prerecorded announcement; or
             1518          (B) live service; and
             1519          (iii) is typically marketed:
             1520          (A) under the name 900 service; or
             1521          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1522      Communications Commission.
             1523          (b) "900 service" does not include a charge for:
             1524          (i) a collection service a seller of a telecommunications service provides to a
             1525      subscriber; or
             1526          (ii) the following a subscriber sells to the subscriber's customer:
             1527          (A) a product; or
             1528          (B) a service.
             1529          (3) (a) "Admission or user fees" includes season passes.
             1530          (b) "Admission or user fees" does not include annual membership dues to private
             1531      organizations.
             1532          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1533      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1534      Agreement after November 12, 2002.
             1535          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1536          (a) listed under Subsection (6); and
             1537          (b) that are imposed within a local taxing jurisdiction.
             1538          (6) "Agreement sales and use tax" means a tax imposed under:
             1539          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1540          (b) Subsection 59-12-103 (2)(b)(i);
             1541          (c) Subsection 59-12-103 (2)(c)(i);


             1542          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1543          (e) Section 59-12-204 ;
             1544          (f) Section 59-12-401 ;
             1545          (g) Section 59-12-402 ;
             1546          (h) Section 59-12-703 ;
             1547          (i) Section 59-12-802 ;
             1548          (j) Section 59-12-804 ;
             1549          (k) Section 59-12-1102 ;
             1550          (l) Section 59-12-1302 ;
             1551          (m) Section 59-12-1402 ;
             1552          (n) Section 59-12-1802 ;
             1553          (o) Section 59-12-2003 ;
             1554          (p) Section 59-12-2103 ;
             1555          (q) Section 59-12-2213 ;
             1556          (r) Section 59-12-2214 ;
             1557          (s) Section 59-12-2215 ;
             1558          (t) Section 59-12-2216 ;
             1559          (u) Section 59-12-2217 ; or
             1560          (v) Section 59-12-2218 .
             1561          (7) "Aircraft" is as defined in Section 72-10-102 .
             1562          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1563          (a) except for:
             1564          (i) an airline as defined in Section 59-2-102 ; or
             1565          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1566      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1567      state, of an airline; and
             1568          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1569      whether the business entity performs the following in this state:


             1570          (i) check, diagnose, overhaul, and repair:
             1571          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1572          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1573          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1574      engine;
             1575          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1576      aircraft:
             1577          (A) an inspection;
             1578          (B) a repair, including a structural repair or modification;
             1579          (C) changing landing gear; and
             1580          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1581          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1582      completely apply new paint to the fixed wing turbine powered aircraft; and
             1583          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1584      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1585      authority that certifies the fixed wing turbine powered aircraft.
             1586          (9) "Alcoholic beverage" means a beverage that:
             1587          (a) is suitable for human consumption; and
             1588          (b) contains .5% or more alcohol by volume.
             1589          (10) "Alternative energy" means:
             1590          (a) biomass energy;
             1591          (b) geothermal energy;
             1592          (c) hydroelectric energy;
             1593          (d) solar energy;
             1594          (e) wind energy; or
             1595          (f) energy that is derived from:
             1596          (i) coal-to-liquids;
             1597          (ii) nuclear fuel;


             1598          (iii) oil-impregnated diatomaceous earth;
             1599          (iv) oil sands;
             1600          (v) oil shale; or
             1601          (vi) petroleum coke.
             1602          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1603      facility" means a facility that:
             1604          (i) uses alternative energy to produce electricity; and
             1605          (ii) has a production capacity of 2 megawatts or greater.
             1606          (b) A facility is an alternative energy electricity production facility regardless of
             1607      whether the facility is:
             1608          (i) connected to an electric grid; or
             1609          (ii) located on the premises of an electricity consumer.
             1610          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1611      provision of telecommunications service.
             1612          (b) "Ancillary service" includes:
             1613          (i) a conference bridging service;
             1614          (ii) a detailed communications billing service;
             1615          (iii) directory assistance;
             1616          (iv) a vertical service; or
             1617          (v) a voice mail service.
             1618          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             1619          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1620      device that is started and stopped by an individual:
             1621          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1622      device, skill device, or ride device; and
             1623          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1624      or ride device.
             1625          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or


             1626      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1627      by an individual:
             1628          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1629      property; and
             1630          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1631      property.
             1632          (16) "Authorized carrier" means:
             1633          (a) in the case of vehicles operated over public highways, the holder of credentials
             1634      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1635      Plan and the International Fuel Tax Agreement;
             1636          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1637      certificate or air carrier's operating certificate; or
             1638          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1639      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1640          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1641      following that is used as the primary source of energy to produce fuel or electricity:
             1642          (i) material from a plant or tree; or
             1643          (ii) other organic matter that is available on a renewable basis, including:
             1644          (A) slash and brush from forests and woodlands;
             1645          (B) animal waste;
             1646          (C) methane produced:
             1647          (I) at landfills; or
             1648          (II) as a byproduct of the treatment of wastewater residuals;
             1649          (D) aquatic plants; and
             1650          (E) agricultural products.
             1651          (b) "Biomass energy" does not include:
             1652          (i) black liquor;
             1653          (ii) treated woods; or


             1654          (iii) biomass from municipal solid waste other than methane produced:
             1655          (A) at landfills; or
             1656          (B) as a byproduct of the treatment of wastewater residuals.
             1657          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1658      property, products, or services if the tangible personal property, products, or services are:
             1659          (i) distinct and identifiable; and
             1660          (ii) sold for one nonitemized price.
             1661          (b) "Bundled transaction" does not include:
             1662          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1663      the basis of the selection by the purchaser of the items of tangible personal property included in
             1664      the transaction;
             1665          (ii) the sale of real property;
             1666          (iii) the sale of services to real property;
             1667          (iv) the retail sale of tangible personal property and a service if:
             1668          (A) the tangible personal property:
             1669          (I) is essential to the use of the service; and
             1670          (II) is provided exclusively in connection with the service; and
             1671          (B) the service is the true object of the transaction;
             1672          (v) the retail sale of two services if:
             1673          (A) one service is provided that is essential to the use or receipt of a second service;
             1674          (B) the first service is provided exclusively in connection with the second service; and
             1675          (C) the second service is the true object of the transaction;
             1676          (vi) a transaction that includes tangible personal property or a product subject to
             1677      taxation under this chapter and tangible personal property or a product that is not subject to
             1678      taxation under this chapter if the:
             1679          (A) seller's purchase price of the tangible personal property or product subject to
             1680      taxation under this chapter is de minimis; or
             1681          (B) seller's sales price of the tangible personal property or product subject to taxation


             1682      under this chapter is de minimis; and
             1683          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1684      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1685          (A) that retail sale includes:
             1686          (I) food and food ingredients;
             1687          (II) a drug;
             1688          (III) durable medical equipment;
             1689          (IV) mobility enhancing equipment;
             1690          (V) an over-the-counter drug;
             1691          (VI) a prosthetic device; or
             1692          (VII) a medical supply; and
             1693          (B) subject to Subsection (18)(f):
             1694          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1695      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1696          (II) the seller's sales price of the tangible personal property subject to taxation under
             1697      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1698          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             1699      service that is distinct and identifiable does not include:
             1700          (A) packaging that:
             1701          (I) accompanies the sale of the tangible personal property, product, or service; and
             1702          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             1703      service;
             1704          (B) tangible personal property, a product, or a service provided free of charge with the
             1705      purchase of another item of tangible personal property, a product, or a service; or
             1706          (C) an item of tangible personal property, a product, or a service included in the
             1707      definition of "purchase price."
             1708          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             1709      product, or a service is provided free of charge with the purchase of another item of tangible


             1710      personal property, a product, or a service if the sales price of the purchased item of tangible
             1711      personal property, product, or service does not vary depending on the inclusion of the tangible
             1712      personal property, product, or service provided free of charge.
             1713          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             1714      does not include a price that is separately identified by tangible personal property, product, or
             1715      service on the following, regardless of whether the following is in paper format or electronic
             1716      format:
             1717          (A) a binding sales document; or
             1718          (B) another supporting sales-related document that is available to a purchaser.
             1719          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             1720      supporting sales-related document that is available to a purchaser includes:
             1721          (A) a bill of sale;
             1722          (B) a contract;
             1723          (C) an invoice;
             1724          (D) a lease agreement;
             1725          (E) a periodic notice of rates and services;
             1726          (F) a price list;
             1727          (G) a rate card;
             1728          (H) a receipt; or
             1729          (I) a service agreement.
             1730          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             1731      property or a product subject to taxation under this chapter is de minimis if:
             1732          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1733      less of the seller's total purchase price of the bundled transaction; or
             1734          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1735      the seller's total sales price of the bundled transaction.
             1736          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             1737          (A) shall use the seller's purchase price or the seller's sales price to determine if the


             1738      purchase price or sales price of the tangible personal property or product subject to taxation
             1739      under this chapter is de minimis; and
             1740          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1741      to determine if the purchase price or sales price of the tangible personal property or product
             1742      subject to taxation under this chapter is de minimis.
             1743          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             1744      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1745          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             1746      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1747      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             1748      price of that retail sale.
             1749          (19) "Certified automated system" means software certified by the governing board of
             1750      the agreement that:
             1751          (a) calculates the agreement sales and use tax imposed within a local taxing
             1752      jurisdiction:
             1753          (i) on a transaction; and
             1754          (ii) in the states that are members of the agreement;
             1755          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1756      member of the agreement; and
             1757          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             1758          (20) "Certified service provider" means an agent certified:
             1759          (a) by the governing board of the agreement; and
             1760          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1761      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             1762      own purchases.
             1763          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             1764      suitable for general use.
             1765          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             1766      commission shall make rules:
             1767          (i) listing the items that constitute "clothing"; and
             1768          (ii) that are consistent with the list of items that constitute "clothing" under the
             1769      agreement.
             1770          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1771          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1772      fuels that does not constitute industrial use under Subsection [(51)] (52) or residential use
             1773      under Subsection [(101)] (102).
             1774          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             1775      transporting passengers, freight, merchandise, or other property for hire within this state.
             1776          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1777      traveling to or from that person's place of employment, transports a passenger to or from the
             1778      passenger's place of employment.
             1779          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             1780      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1781      constitutes a person's place of employment.
             1782          (25) "Component part" includes:
             1783          (a) poultry, dairy, and other livestock feed, and their components;
             1784          (b) baling ties and twine used in the baling of hay and straw;
             1785          (c) fuel used for providing temperature control of orchards and commercial
             1786      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1787      off-highway type farm machinery; and
             1788          (d) feed, seeds, and seedlings.
             1789          (26) "Computer" means an electronic device that accepts information:
             1790          (a) (i) in digital form; or
             1791          (ii) in a form similar to digital form; and
             1792          (b) manipulates that information for a result based on a sequence of instructions.
             1793          (27) "Computer software" means a set of coded instructions designed to cause:


             1794          (a) a computer to perform a task; or
             1795          (b) automatic data processing equipment to perform a task.
             1796          (28) "Computer software maintenance contract" means a contract that obligates a seller
             1797      of computer software to provide a customer with:
             1798          (a) future updates or upgrades to computer software;
             1799          (b) support services with respect to computer software; or
             1800          (c) a combination of Subsections (28)(a) and (b).
             1801          (29) (a) "Conference bridging service" means an ancillary service that links two or
             1802      more participants of an audio conference call or video conference call.
             1803          (b) "Conference bridging service" may include providing a telephone number as part of
             1804      the ancillary service described in Subsection (29)(a).
             1805          (c) "Conference bridging service" does not include a telecommunications service used
             1806      to reach the ancillary service described in Subsection (29)(a).
             1807          (30) "Construction materials" means any tangible personal property that will be
             1808      converted into real property.
             1809          (31) "Delivered electronically" means delivered to a purchaser by means other than
             1810      tangible storage media.
             1811          (32) (a) "Delivery charge" means a charge:
             1812          (i) by a seller of:
             1813          (A) tangible personal property;
             1814          (B) a product transferred electronically; or
             1815          (C) services; and
             1816          (ii) for preparation and delivery of the tangible personal property, product transferred
             1817      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             1818      purchaser.
             1819          (b) "Delivery charge" includes a charge for the following:
             1820          (i) transportation;
             1821          (ii) shipping;


             1822          (iii) postage;
             1823          (iv) handling;
             1824          (v) crating; or
             1825          (vi) packing.
             1826          (33) "Detailed telecommunications billing service" means an ancillary service of
             1827      separately stating information pertaining to individual calls on a customer's billing statement.
             1828          (34) "Dietary supplement" means a product, other than tobacco, that:
             1829          (a) is intended to supplement the diet;
             1830          (b) contains one or more of the following dietary ingredients:
             1831          (i) a vitamin;
             1832          (ii) a mineral;
             1833          (iii) an herb or other botanical;
             1834          (iv) an amino acid;
             1835          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1836      dietary intake; or
             1837          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1838      described in Subsections (34)(b)(i) through (v);
             1839          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             1840          (A) tablet form;
             1841          (B) capsule form;
             1842          (C) powder form;
             1843          (D) softgel form;
             1844          (E) gelcap form; or
             1845          (F) liquid form; or
             1846          (ii) [notwithstanding Subsection (34)(c)(i),] if the product is not intended for ingestion
             1847      in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             1848          (A) as conventional food; and
             1849          (B) for use as a sole item of:


             1850          (I) a meal; or
             1851          (II) the diet; and
             1852          (d) is required to be labeled as a dietary supplement:
             1853          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1854          (ii) as required by 21 C.F.R. Sec. 101.36.
             1855          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             1856      mail or other delivery service:
             1857          (i) to:
             1858          (A) a mass audience; or
             1859          (B) addressees on a mailing list provided:
             1860          (I) by a purchaser of the mailing list; or
             1861          (II) at the discretion of the purchaser of the mailing list; and
             1862          (ii) if the cost of the printed material is not billed directly to the recipients.
             1863          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1864      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1865          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1866      single address.
             1867          (36) "Directory assistance" means an ancillary service of providing:
             1868          (a) address information; or
             1869          (b) telephone number information.
             1870          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             1871      or supplies that:
             1872          (i) cannot withstand repeated use; and
             1873          (ii) are purchased by, for, or on behalf of a person other than:
             1874          (A) a health care facility as defined in Section 26-21-2 ;
             1875          (B) a health care provider as defined in Section 78B-3-403 ;
             1876          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             1877          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).


             1878          (b) "Disposable home medical equipment or supplies" does not include:
             1879          (i) a drug;
             1880          (ii) durable medical equipment;
             1881          (iii) a hearing aid;
             1882          (iv) a hearing aid accessory;
             1883          (v) mobility enhancing equipment; or
             1884          (vi) tangible personal property used to correct impaired vision, including:
             1885          (A) eyeglasses; or
             1886          (B) contact lenses.
             1887          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1888      commission may by rule define what constitutes medical equipment or supplies.
             1889          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1890      compound, substance, or preparation that is:
             1891          (i) recognized in:
             1892          (A) the official United States Pharmacopoeia;
             1893          (B) the official Homeopathic Pharmacopoeia of the United States;
             1894          (C) the official National Formulary; or
             1895          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             1896          (ii) intended for use in the:
             1897          (A) diagnosis of disease;
             1898          (B) cure of disease;
             1899          (C) mitigation of disease;
             1900          (D) treatment of disease; or
             1901          (E) prevention of disease; or
             1902          (iii) intended to affect:
             1903          (A) the structure of the body; or
             1904          (B) any function of the body.
             1905          (b) "Drug" does not include:


             1906          (i) food and food ingredients;
             1907          (ii) a dietary supplement;
             1908          (iii) an alcoholic beverage; or
             1909          (iv) a prosthetic device.
             1910          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             1911      equipment that:
             1912          (i) can withstand repeated use;
             1913          (ii) is primarily and customarily used to serve a medical purpose;
             1914          (iii) generally is not useful to a person in the absence of illness or injury; and
             1915          (iv) is not worn in or on the body.
             1916          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1917      equipment described in Subsection (39)(a).
             1918          (c) [Notwithstanding Subsection (39)(a), "durable] "Durable medical equipment" does
             1919      not include mobility enhancing equipment.
             1920          (40) "Electronic" means:
             1921          (a) relating to technology; and
             1922          (b) having:
             1923          (i) electrical capabilities;
             1924          (ii) digital capabilities;
             1925          (iii) magnetic capabilities;
             1926          (iv) wireless capabilities;
             1927          (v) optical capabilities;
             1928          (vi) electromagnetic capabilities; or
             1929          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             1930          (41) "Electronic financial payment service" means an establishment:
             1931          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
             1932      Clearinghouse Activities, of the 2012 North American Industry Classification System of the
             1933      federal Executive Office of the President, Office of Management and Budget; and


             1934          (b) that performs electronic financial payment services.
             1935          [(41)] (42) "Employee" is as defined in Section 59-10-401 .
             1936          [(42)] (43) "Fixed guideway" means a public transit facility that uses and occupies:
             1937          (a) rail for the use of public transit; or
             1938          (b) a separate right-of-way for the use of public transit.
             1939          [(43)] (44) "Fixed wing turbine powered aircraft" means an aircraft that:
             1940          (a) is powered by turbine engines;
             1941          (b) operates on jet fuel; and
             1942          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1943          [(44)] (45) "Fixed wireless service" means a telecommunications service that provides
             1944      radio communication between fixed points.
             1945          [(45)] (46) (a) "Food and food ingredients" means substances:
             1946          (i) regardless of whether the substances are in:
             1947          (A) liquid form;
             1948          (B) concentrated form;
             1949          (C) solid form;
             1950          (D) frozen form;
             1951          (E) dried form; or
             1952          (F) dehydrated form; and
             1953          (ii) that are:
             1954          (A) sold for:
             1955          (I) ingestion by humans; or
             1956          (II) chewing by humans; and
             1957          (B) consumed for the substance's:
             1958          (I) taste; or
             1959          (II) nutritional value.
             1960          (b) "Food and food ingredients" includes an item described in Subsection [(86)]
             1961      (87)(b)(iii).


             1962          (c) "Food and food ingredients" does not include:
             1963          (i) an alcoholic beverage;
             1964          (ii) tobacco; or
             1965          (iii) prepared food.
             1966          [(46)] (47) (a) "Fundraising sales" means sales:
             1967          (i) (A) made by a school; or
             1968          (B) made by a school student;
             1969          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1970      materials, or provide transportation; and
             1971          (iii) that are part of an officially sanctioned school activity.
             1972          (b) For purposes of Subsection [(46)] (47)(a)(iii), "officially sanctioned school activity"
             1973      means a school activity:
             1974          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1975      district governing the authorization and supervision of fundraising activities;
             1976          (ii) that does not directly or indirectly compensate an individual teacher or other
             1977      educational personnel by direct payment, commissions, or payment in kind; and
             1978          (iii) the net or gross revenues from which are deposited in a dedicated account
             1979      controlled by the school or school district.
             1980          [(47)] (48) "Geothermal energy" means energy contained in heat that continuously
             1981      flows outward from the earth that is used as the sole source of energy to produce electricity.
             1982          [(48)] (49) "Governing board of the agreement" means the governing board of the
             1983      agreement that is:
             1984          (a) authorized to administer the agreement; and
             1985          (b) established in accordance with the agreement.
             1986          [(49)] (50) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
             1987      means:
             1988          (i) the executive branch of the state, including all departments, institutions, boards,
             1989      divisions, bureaus, offices, commissions, and committees;


             1990          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             1991      Office of the Court Administrator, and similar administrative units in the judicial branch;
             1992          (iii) the legislative branch of the state, including the House of Representatives, the
             1993      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             1994      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             1995      Analyst;
             1996          (iv) the National Guard;
             1997          (v) an independent entity as defined in Section 63E-1-102 ; or
             1998          (vi) a political subdivision as defined in Section 17B-1-102 .
             1999          (b) "Governmental entity" does not include the state systems of public and higher
             2000      education, including:
             2001          (i) a college campus of the Utah College of Applied Technology;
             2002          (ii) a school;
             2003          (iii) the State Board of Education;
             2004          (iv) the State Board of Regents; or
             2005          (v) an institution of higher education.
             2006          [(50)] (51) "Hydroelectric energy" means water used as the sole source of energy to
             2007      produce electricity.
             2008          [(51)] (52) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
             2009      or other fuels:
             2010          (a) in mining or extraction of minerals;
             2011          (b) in agricultural operations to produce an agricultural product up to the time of
             2012      harvest or placing the agricultural product into a storage facility, including:
             2013          (i) commercial greenhouses;
             2014          (ii) irrigation pumps;
             2015          (iii) farm machinery;
             2016          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             2017      registered under Title 41, Chapter 1a, Part 2, Registration; and


             2018          (v) other farming activities;
             2019          (c) in manufacturing tangible personal property at an establishment described in SIC
             2020      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2021      Executive Office of the President, Office of Management and Budget;
             2022          (d) by a scrap recycler if:
             2023          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2024      one or more of the following items into prepared grades of processed materials for use in new
             2025      products:
             2026          (A) iron;
             2027          (B) steel;
             2028          (C) nonferrous metal;
             2029          (D) paper;
             2030          (E) glass;
             2031          (F) plastic;
             2032          (G) textile; or
             2033          (H) rubber; and
             2034          (ii) the new products under Subsection [(51)] (52)(d)(i) would otherwise be made with
             2035      nonrecycled materials; or
             2036          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2037      cogeneration facility as defined in Section 54-2-1 .
             2038          [(52)] (53) (a) Except as provided in Subsection [(52)] (53)(b), "installation charge"
             2039      means a charge for installing:
             2040          (i) tangible personal property; or
             2041          (ii) a product transferred electronically.
             2042          (b) "Installation charge" does not include a charge for:
             2043          (i) repairs or renovations of:
             2044          (A) tangible personal property; or
             2045          (B) a product transferred electronically; or


             2046          (ii) attaching tangible personal property or a product transferred electronically:
             2047          (A) to other tangible personal property; and
             2048          (B) as part of a manufacturing or fabrication process.
             2049          [(53)] (54) "Institution of higher education" means an institution of higher education
             2050      listed in Section 53B-2-101 .
             2051          [(54)] (55) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2052      personal property or a product transferred electronically for:
             2053          (i) (A) a fixed term; or
             2054          (B) an indeterminate term; and
             2055          (ii) consideration.
             2056          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2057      amount of consideration may be increased or decreased by reference to the amount realized
             2058      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2059      Code.
             2060          (c) "Lease" or "rental" does not include:
             2061          (i) a transfer of possession or control of property under a security agreement or
             2062      deferred payment plan that requires the transfer of title upon completion of the required
             2063      payments;
             2064          (ii) a transfer of possession or control of property under an agreement that requires the
             2065      transfer of title:
             2066          (A) upon completion of required payments; and
             2067          (B) if the payment of an option price does not exceed the greater of:
             2068          (I) $100; or
             2069          (II) 1% of the total required payments; or
             2070          (iii) providing tangible personal property along with an operator for a fixed period of
             2071      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2072      designed.
             2073          (d) For purposes of Subsection [(54)] (55)(c)(iii), an operator is necessary for


             2074      equipment to perform as designed if the operator's duties exceed the:
             2075          (i) set-up of tangible personal property;
             2076          (ii) maintenance of tangible personal property; or
             2077          (iii) inspection of tangible personal property.
             2078          [(55)] (56) "Life science establishment" means an establishment in this state that is
             2079      classified under the following NAICS codes of the 2007 North American Industry
             2080      Classification System of the federal Executive Office of the President, Office of Management
             2081      and Budget:
             2082          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2083          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2084      Manufacturing; or
             2085          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2086          [(56)] (57) "Life science research and development facility" means a facility owned,
             2087      leased, or rented by a life science establishment if research and development is performed in
             2088      51% or more of the total area of the facility.
             2089          [(57)] (58) "Load and leave" means delivery to a purchaser by use of a tangible storage
             2090      media if the tangible storage media is not physically transferred to the purchaser.
             2091          [(58)] (59) "Local taxing jurisdiction" means a:
             2092          (a) county that is authorized to impose an agreement sales and use tax;
             2093          (b) city that is authorized to impose an agreement sales and use tax; or
             2094          (c) town that is authorized to impose an agreement sales and use tax.
             2095          [(59)] (60) "Manufactured home" is as defined in Section 15A-1-302 .
             2096          [(60)] (61) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2097          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2098      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2099      Management and Budget;
             2100          (b) a scrap recycler if:
             2101          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process


             2102      one or more of the following items into prepared grades of processed materials for use in new
             2103      products:
             2104          (A) iron;
             2105          (B) steel;
             2106          (C) nonferrous metal;
             2107          (D) paper;
             2108          (E) glass;
             2109          (F) plastic;
             2110          (G) textile; or
             2111          (H) rubber; and
             2112          (ii) the new products under Subsection [(60)] (61)(b)(i) would otherwise be made with
             2113      nonrecycled materials; or
             2114          (c) a cogeneration facility as defined in Section 54-2-1 .
             2115          [(61)] (62) "Member of the immediate family of the producer" means a person who is
             2116      related to a producer described in Subsection 59-12-104 (20)(a) as a:
             2117          (a) child or stepchild, regardless of whether the child or stepchild is:
             2118          (i) an adopted child or adopted stepchild; or
             2119          (ii) a foster child or foster stepchild;
             2120          (b) grandchild or stepgrandchild;
             2121          (c) grandparent or stepgrandparent;
             2122          (d) nephew or stepnephew;
             2123          (e) niece or stepniece;
             2124          (f) parent or stepparent;
             2125          (g) sibling or stepsibling;
             2126          (h) spouse;
             2127          (i) person who is the spouse of a person described in Subsections [(61)] (62)(a) through
             2128      (g); or
             2129          (j) person similar to a person described in Subsections [(61)] (62)(a) through (i) as


             2130      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2131      Administrative Rulemaking Act.
             2132          [(62)] (63) "Mobile home" is as defined in Section 15A-1-302 .
             2133          [(63)] (64) "Mobile telecommunications service" is as defined in the Mobile
             2134      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2135          [(64)] (65) (a) "Mobile wireless service" means a telecommunications service,
             2136      regardless of the technology used, if:
             2137          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2138          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2139          (iii) the origination point described in Subsection [(64)] (65)(a)(i) and the termination
             2140      point described in Subsection [(64)] (65)(a)(ii) are not fixed.
             2141          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2142      by a commercial mobile radio service provider.
             2143          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2144      commission may by rule define "commercial mobile radio service provider."
             2145          [(65)] (66) (a) Except as provided in Subsection [(65)] (66)(c), "mobility enhancing
             2146      equipment" means equipment that is:
             2147          (i) primarily and customarily used to provide or increase the ability to move from one
             2148      place to another;
             2149          (ii) appropriate for use in a:
             2150          (A) home; or
             2151          (B) motor vehicle; and
             2152          (iii) not generally used by persons with normal mobility.
             2153          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2154      the equipment described in Subsection [(65)] (66)(a).
             2155          (c) [Notwithstanding Subsection (65)(a), "mobility] "Mobility enhancing equipment"
             2156      does not include:
             2157          (i) a motor vehicle;


             2158          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2159      vehicle manufacturer;
             2160          (iii) durable medical equipment; or
             2161          (iv) a prosthetic device.
             2162          [(66)] (67) "Model 1 seller" means a seller registered under the agreement that has
             2163      selected a certified service provider as the seller's agent to perform all of the seller's sales and
             2164      use tax functions for agreement sales and use taxes other than the seller's obligation under
             2165      Section 59-12-124 to remit a tax on the seller's own purchases.
             2166          [(67)] (68) "Model 2 seller" means a seller registered under the agreement that:
             2167          (a) except as provided in Subsection [(67)] (68)(b), has selected a certified automated
             2168      system to perform the seller's sales tax functions for agreement sales and use taxes; and
             2169          (b) [notwithstanding Subsection (67)(a),] retains responsibility for remitting all of the
             2170      sales tax:
             2171          (i) collected by the seller; and
             2172          (ii) to the appropriate local taxing jurisdiction.
             2173          [(68)] (69) (a) Subject to Subsection [(68)] (69)(b), "model 3 seller" means a seller
             2174      registered under the agreement that has:
             2175          (i) sales in at least five states that are members of the agreement;
             2176          (ii) total annual sales revenues of at least $500,000,000;
             2177          (iii) a proprietary system that calculates the amount of tax:
             2178          (A) for an agreement sales and use tax; and
             2179          (B) due to each local taxing jurisdiction; and
             2180          (iv) entered into a performance agreement with the governing board of the agreement.
             2181          (b) For purposes of Subsection [(68)] (69)(a), "model 3 seller" includes an affiliated
             2182      group of sellers using the same proprietary system.
             2183          [(69)] (70) "Model 4 seller" means a seller that is registered under the agreement and is
             2184      not a model 1 seller, model 2 seller, or model 3 seller.
             2185          [(70)] (71) "Modular home" means a modular unit as defined in Section 15A-1-302 .


             2186          [(71)] (72) "Motor vehicle" is as defined in Section 41-1a-102 .
             2187          [(72)] (73) "Oil sands" means impregnated bituminous sands that:
             2188          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2189      other hydrocarbons, or otherwise treated;
             2190          (b) yield mixtures of liquid hydrocarbon; and
             2191          (c) require further processing other than mechanical blending before becoming finished
             2192      petroleum products.
             2193          [(73)] (74) "Oil shale" means a group of fine black to dark brown shales containing
             2194      kerogen material that yields petroleum upon heating and distillation.
             2195          [(74)] (75) "Optional computer software maintenance contract" means a computer
             2196      software maintenance contract that a customer is not obligated to purchase as a condition to the
             2197      retail sale of computer software.
             2198          [(75)] (76) (a) "Other fuels" means products that burn independently to produce heat or
             2199      energy.
             2200          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2201      personal property.
             2202          [(76)] (77) (a) "Paging service" means a telecommunications service that provides
             2203      transmission of a coded radio signal for the purpose of activating a specific pager.
             2204          (b) For purposes of Subsection [(76)] (77)(a), the transmission of a coded radio signal
             2205      includes a transmission by message or sound.
             2206          [(77)] (78) "Pawnbroker" is as defined in Section 13-32a-102 .
             2207          [(78)] (79) "Pawn transaction" is as defined in Section 13-32a-102 .
             2208          [(79)] (80) (a) "Permanently attached to real property" means that for tangible personal
             2209      property attached to real property:
             2210          (i) the attachment of the tangible personal property to the real property:
             2211          (A) is essential to the use of the tangible personal property; and
             2212          (B) suggests that the tangible personal property will remain attached to the real
             2213      property in the same place over the useful life of the tangible personal property; or


             2214          (ii) if the tangible personal property is detached from the real property, the detachment
             2215      would:
             2216          (A) cause substantial damage to the tangible personal property; or
             2217          (B) require substantial alteration or repair of the real property to which the tangible
             2218      personal property is attached.
             2219          (b) "Permanently attached to real property" includes:
             2220          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2221          (A) essential to the operation of the tangible personal property; and
             2222          (B) attached only to facilitate the operation of the tangible personal property;
             2223          (ii) a temporary detachment of tangible personal property from real property for a
             2224      repair or renovation if the repair or renovation is performed where the tangible personal
             2225      property and real property are located; or
             2226          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2227      Subsection [(79)] (80)(c)(iii) or (iv).
             2228          (c) "Permanently attached to real property" does not include:
             2229          (i) the attachment of portable or movable tangible personal property to real property if
             2230      that portable or movable tangible personal property is attached to real property only for:
             2231          (A) convenience;
             2232          (B) stability; or
             2233          (C) for an obvious temporary purpose;
             2234          (ii) the detachment of tangible personal property from real property except for the
             2235      detachment described in Subsection [(79)] (80)(b)(ii);
             2236          (iii) an attachment of the following tangible personal property to real property if the
             2237      attachment to real property is only through a line that supplies water, electricity, gas,
             2238      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2239      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2240          (A) a computer;
             2241          (B) a telephone;


             2242          (C) a television; or
             2243          (D) tangible personal property similar to Subsections [(79)] (80)(c)(iii)(A) through (C)
             2244      as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2245      Administrative Rulemaking Act; or
             2246          (iv) an item listed in Subsection [(117)] (119)(c).
             2247          [(80)] (81) "Person" includes any individual, firm, partnership, joint venture,
             2248      association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
             2249      city, municipality, district, or other local governmental entity of the state, or any group or
             2250      combination acting as a unit.
             2251          [(81)] (82) "Place of primary use":
             2252          (a) for telecommunications service other than mobile telecommunications service,
             2253      means the street address representative of where the customer's use of the telecommunications
             2254      service primarily occurs, which shall be:
             2255          (i) the residential street address of the customer; or
             2256          (ii) the primary business street address of the customer; or
             2257          (b) for mobile telecommunications service, is as defined in the Mobile
             2258      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2259          [(82)] (83) (a) "Postpaid calling service" means a telecommunications service a person
             2260      obtains by making a payment on a call-by-call basis:
             2261          (i) through the use of a:
             2262          (A) bank card;
             2263          (B) credit card;
             2264          (C) debit card; or
             2265          (D) travel card; or
             2266          (ii) by a charge made to a telephone number that is not associated with the origination
             2267      or termination of the telecommunications service.
             2268          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2269      service, that would be a prepaid wireless calling service if the service were exclusively a


             2270      telecommunications service.
             2271          [(83)] (84) "Postproduction" means an activity related to the finishing or duplication of
             2272      a medium described in Subsection 59-12-104 (54)(a).
             2273          [(84)] (85) "Prepaid calling service" means a telecommunications service:
             2274          (a) that allows a purchaser access to telecommunications service that is exclusively
             2275      telecommunications service;
             2276          (b) that:
             2277          (i) is paid for in advance; and
             2278          (ii) enables the origination of a call using an:
             2279          (A) access number; or
             2280          (B) authorization code;
             2281          (c) that is dialed:
             2282          (i) manually; or
             2283          (ii) electronically; and
             2284          (d) sold in predetermined units or dollars that decline:
             2285          (i) by a known amount; and
             2286          (ii) with use.
             2287          [(85)] (86) "Prepaid wireless calling service" means a telecommunications service:
             2288          (a) that provides the right to utilize:
             2289          (i) mobile wireless service; and
             2290          (ii) other service that is not a telecommunications service, including:
             2291          (A) the download of a product transferred electronically;
             2292          (B) a content service; or
             2293          (C) an ancillary service;
             2294          (b) that:
             2295          (i) is paid for in advance; and
             2296          (ii) enables the origination of a call using an:
             2297          (A) access number; or


             2298          (B) authorization code;
             2299          (c) that is dialed:
             2300          (i) manually; or
             2301          (ii) electronically; and
             2302          (d) sold in predetermined units or dollars that decline:
             2303          (i) by a known amount; and
             2304          (ii) with use.
             2305          [(86)] (87) (a) "Prepared food" means:
             2306          (i) food:
             2307          (A) sold in a heated state; or
             2308          (B) heated by a seller;
             2309          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2310      item; or
             2311          (iii) except as provided in Subsection [(86)] (87)(c), food sold with an eating utensil
             2312      provided by the seller, including a:
             2313          (A) plate;
             2314          (B) knife;
             2315          (C) fork;
             2316          (D) spoon;
             2317          (E) glass;
             2318          (F) cup;
             2319          (G) napkin; or
             2320          (H) straw.
             2321          (b) "Prepared food" does not include:
             2322          (i) food that a seller only:
             2323          (A) cuts;
             2324          (B) repackages; or
             2325          (C) pasteurizes; or


             2326          (ii) (A) the following:
             2327          (I) raw egg;
             2328          (II) raw fish;
             2329          (III) raw meat;
             2330          (IV) raw poultry; or
             2331          (V) a food containing an item described in Subsections [(86)] (87)(b)(ii)(A)(I) through
             2332      (IV); and
             2333          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2334      Food and Drug Administration's Food Code that a consumer cook the items described in
             2335      Subsection [(86)] (87)(b)(ii)(A) to prevent food borne illness; or
             2336          (iii) the following if sold without eating utensils provided by the seller:
             2337          (A) food and food ingredients sold by a seller if the seller's proper primary
             2338      classification under the 2002 North American Industry Classification System of the federal
             2339      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2340      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2341      Manufacturing;
             2342          (B) food and food ingredients sold in an unheated state:
             2343          (I) by weight or volume; and
             2344          (II) as a single item; or
             2345          (C) a bakery item, including:
             2346          (I) a bagel;
             2347          (II) a bar;
             2348          (III) a biscuit;
             2349          (IV) bread;
             2350          (V) a bun;
             2351          (VI) a cake;
             2352          (VII) a cookie;
             2353          (VIII) a croissant;


             2354          (IX) a danish;
             2355          (X) a donut;
             2356          (XI) a muffin;
             2357          (XII) a pastry;
             2358          (XIII) a pie;
             2359          (XIV) a roll;
             2360          (XV) a tart;
             2361          (XVI) a torte; or
             2362          (XVII) a tortilla.
             2363          (c) [Notwithstanding Subsection (86)(a)(iii), an] An eating utensil provided by the
             2364      seller does not include the following used to transport the food:
             2365          (i) a container; or
             2366          (ii) packaging.
             2367          [(87)] (88) "Prescription" means an order, formula, or recipe that is issued:
             2368          (a) (i) orally;
             2369          (ii) in writing;
             2370          (iii) electronically; or
             2371          (iv) by any other manner of transmission; and
             2372          (b) by a licensed practitioner authorized by the laws of a state.
             2373          [(88)] (89) (a) Except as provided in Subsection [(88)] (89)(b)(ii) or (iii), "prewritten
             2374      computer software" means computer software that is not designed and developed:
             2375          (i) by the author or other creator of the computer software; and
             2376          (ii) to the specifications of a specific purchaser.
             2377          (b) "Prewritten computer software" includes:
             2378          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2379      software is not designed and developed:
             2380          (A) by the author or other creator of the computer software; and
             2381          (B) to the specifications of a specific purchaser;


             2382          (ii) [notwithstanding Subsection (88)(a),] computer software designed and developed
             2383      by the author or other creator of the computer software to the specifications of a specific
             2384      purchaser if the computer software is sold to a person other than the purchaser; or
             2385          (iii) [notwithstanding Subsection (88)(a) and] except as provided in Subsection [(88)]
             2386      (89)(c), prewritten computer software or a prewritten portion of prewritten computer software:
             2387          (A) that is modified or enhanced to any degree; and
             2388          (B) if the modification or enhancement described in Subsection [(88)] (89)(b)(iii)(A) is
             2389      designed and developed to the specifications of a specific purchaser.
             2390          (c) [Notwithstanding Subsection (88)(b)(iii), "prewritten] "Prewritten computer
             2391      software" does not include a modification or enhancement described in Subsection [(88)]
             2392      (89)(b)(iii) if the charges for the modification or enhancement are:
             2393          (i) reasonable; and
             2394          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2395      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2396      demonstrated by:
             2397          (A) the books and records the seller keeps at the time of the transaction in the regular
             2398      course of business, including books and records the seller keeps at the time of the transaction in
             2399      the regular course of business for nontax purposes;
             2400          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2401          (C) the understanding of all of the parties to the transaction.
             2402          [(89)] (90) (a) "Private communication service" means a telecommunications service:
             2403          (i) that entitles a customer to exclusive or priority use of one or more communications
             2404      channels between or among termination points; and
             2405          (ii) regardless of the manner in which the one or more communications channels are
             2406      connected.
             2407          (b) "Private communications service" includes the following provided in connection
             2408      with the use of one or more communications channels:
             2409          (i) an extension line;


             2410          (ii) a station;
             2411          (iii) switching capacity; or
             2412          (iv) another associated service that is provided in connection with the use of one or
             2413      more communications channels as defined in Section 59-12-215 .
             2414          [(90)] (91) (a) Except as provided in Subsection [(90)] (91)(b), "product transferred
             2415      electronically" means a product transferred electronically that would be subject to a tax under
             2416      this chapter if that product was transferred in a manner other than electronically.
             2417          (b) "Product transferred electronically" does not include:
             2418          (i) an ancillary service;
             2419          (ii) computer software; or
             2420          (iii) a telecommunications service.
             2421          [(91)] (92) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2422          (i) artificially replace a missing portion of the body;
             2423          (ii) prevent or correct a physical deformity or physical malfunction; or
             2424          (iii) support a weak or deformed portion of the body.
             2425          (b) "Prosthetic device" includes:
             2426          (i) parts used in the repairs or renovation of a prosthetic device;
             2427          (ii) replacement parts for a prosthetic device;
             2428          (iii) a dental prosthesis; or
             2429          (iv) a hearing aid.
             2430          (c) "Prosthetic device" does not include:
             2431          (i) corrective eyeglasses; or
             2432          (ii) contact lenses.
             2433          [(92)] (93) (a) "Protective equipment" means an item:
             2434          (i) for human wear; and
             2435          (ii) that is:
             2436          (A) designed as protection:
             2437          (I) to the wearer against injury or disease; or


             2438          (II) against damage or injury of other persons or property; and
             2439          (B) not suitable for general use.
             2440          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2441      commission shall make rules:
             2442          (i) listing the items that constitute "protective equipment"; and
             2443          (ii) that are consistent with the list of items that constitute "protective equipment"
             2444      under the agreement.
             2445          [(93)] (94) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             2446      written or printed matter, other than a photocopy:
             2447          (i) regardless of:
             2448          (A) characteristics;
             2449          (B) copyright;
             2450          (C) form;
             2451          (D) format;
             2452          (E) method of reproduction; or
             2453          (F) source; and
             2454          (ii) made available in printed or electronic format.
             2455          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2456      commission may by rule define the term "photocopy."
             2457          [(94)] (95) (a) "Purchase price" and "sales price" mean the total amount of
             2458      consideration:
             2459          (i) valued in money; and
             2460          (ii) for which tangible personal property, a product transferred electronically, or
             2461      services are:
             2462          (A) sold;
             2463          (B) leased; or
             2464          (C) rented.
             2465          (b) "Purchase price" and "sales price" include:


             2466          (i) the seller's cost of the tangible personal property, a product transferred
             2467      electronically, or services sold;
             2468          (ii) expenses of the seller, including:
             2469          (A) the cost of materials used;
             2470          (B) a labor cost;
             2471          (C) a service cost;
             2472          (D) interest;
             2473          (E) a loss;
             2474          (F) the cost of transportation to the seller; or
             2475          (G) a tax imposed on the seller;
             2476          (iii) a charge by the seller for any service necessary to complete the sale; or
             2477          (iv) consideration a seller receives from a person other than the purchaser if:
             2478          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2479      and
             2480          (II) the consideration described in Subsection [(94)] (95)(b)(iv)(A)(I) is directly related
             2481      to a price reduction or discount on the sale;
             2482          (B) the seller has an obligation to pass the price reduction or discount through to the
             2483      purchaser;
             2484          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2485      the seller at the time of the sale to the purchaser; and
             2486          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2487      seller to claim a price reduction or discount; and
             2488          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2489      coupon, or other documentation with the understanding that the person other than the seller
             2490      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2491          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2492      organization allowed a price reduction or discount, except that a preferred customer card that is
             2493      available to any patron of a seller does not constitute membership in a group or organization


             2494      allowed a price reduction or discount; or
             2495          (III) the price reduction or discount is identified as a third party price reduction or
             2496      discount on the:
             2497          (Aa) invoice the purchaser receives; or
             2498          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2499          (c) "Purchase price" and "sales price" do not include:
             2500          (i) a discount:
             2501          (A) in a form including:
             2502          (I) cash;
             2503          (II) term; or
             2504          (III) coupon;
             2505          (B) that is allowed by a seller;
             2506          (C) taken by a purchaser on a sale; and
             2507          (D) that is not reimbursed by a third party; or
             2508          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2509      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2510      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2511      transaction in the regular course of business, including books and records the seller keeps at the
             2512      time of the transaction in the regular course of business for nontax purposes, by a
             2513      preponderance of the facts and circumstances at the time of the transaction, and by the
             2514      understanding of all of the parties to the transaction:
             2515          (A) the following from credit extended on the sale of tangible personal property or
             2516      services:
             2517          (I) a carrying charge;
             2518          (II) a financing charge; or
             2519          (III) an interest charge;
             2520          (B) a delivery charge;
             2521          (C) an installation charge;


             2522          (D) a manufacturer rebate on a motor vehicle; or
             2523          (E) a tax or fee legally imposed directly on the consumer.
             2524          [(95)] (96) "Purchaser" means a person to whom:
             2525          (a) a sale of tangible personal property is made;
             2526          (b) a product is transferred electronically; or
             2527          (c) a service is furnished.
             2528          [(96)] (97) "Regularly rented" means:
             2529          (a) rented to a guest for value three or more times during a calendar year; or
             2530          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2531      value.
             2532          [(97)] (98) "Rental" is as defined in Subsection [(54)] (55).
             2533          [(98)] (99) (a) Except as provided in Subsection [(98)] (99)(b), "repairs or renovations
             2534      of tangible personal property" means:
             2535          (i) a repair or renovation of tangible personal property that is not permanently attached
             2536      to real property; or
             2537          (ii) attaching tangible personal property or a product transferred electronically to other
             2538      tangible personal property or detaching tangible personal property or a product transferred
             2539      electronically from other tangible personal property if:
             2540          (A) the other tangible personal property to which the tangible personal property or
             2541      product transferred electronically is attached or from which the tangible personal property or
             2542      product transferred electronically is detached is not permanently attached to real property; and
             2543          (B) the attachment of tangible personal property or a product transferred electronically
             2544      to other tangible personal property or detachment of tangible personal property or a product
             2545      transferred electronically from other tangible personal property is made in conjunction with a
             2546      repair or replacement of tangible personal property or a product transferred electronically.
             2547          (b) "Repairs or renovations of tangible personal property" does not include:
             2548          (i) attaching prewritten computer software to other tangible personal property if the
             2549      other tangible personal property to which the prewritten computer software is attached is not


             2550      permanently attached to real property; or
             2551          (ii) detaching prewritten computer software from other tangible personal property if the
             2552      other tangible personal property from which the prewritten computer software is detached is
             2553      not permanently attached to real property.
             2554          [(99)] (100) "Research and development" means the process of inquiry or
             2555      experimentation aimed at the discovery of facts, devices, technologies, or applications and the
             2556      process of preparing those devices, technologies, or applications for marketing.
             2557          [(100)] (101) (a) "Residential telecommunications services" means a
             2558      telecommunications service or an ancillary service that is provided to an individual for personal
             2559      use:
             2560          (i) at a residential address; or
             2561          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2562      service or ancillary service is provided to and paid for by the individual residing at the
             2563      institution rather than the institution.
             2564          (b) For purposes of Subsection [(100)] (101)(a)(i), a residential address includes an:
             2565          (i) apartment; or
             2566          (ii) other individual dwelling unit.
             2567          [(101)] (102) "Residential use" means the use in or around a home, apartment building,
             2568      sleeping quarters, and similar facilities or accommodations.
             2569          [(102)] (103) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             2570      other than:
             2571          (a) resale;
             2572          (b) sublease; or
             2573          (c) subrent.
             2574          [(103)] (104) (a) "Retailer" means any person engaged in a regularly organized
             2575      business in tangible personal property or any other taxable transaction under Subsection
             2576      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             2577          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly


             2578      engaged in the business of selling to users or consumers within the state.
             2579          [(104)] (105) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2580      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2581      Subsection 59-12-103 (1), for consideration.
             2582          (b) "Sale" includes:
             2583          (i) installment and credit sales;
             2584          (ii) any closed transaction constituting a sale;
             2585          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2586      chapter;
             2587          (iv) any transaction if the possession of property is transferred but the seller retains the
             2588      title as security for the payment of the price; and
             2589          (v) any transaction under which right to possession, operation, or use of any article of
             2590      tangible personal property is granted under a lease or contract and the transfer of possession
             2591      would be taxable if an outright sale were made.
             2592          [(105)] (106) "Sale at retail" is as defined in Subsection [(102)] (103).
             2593          [(106)] (107) "Sale-leaseback transaction" means a transaction by which title to
             2594      tangible personal property or a product transferred electronically that is subject to a tax under
             2595      this chapter is transferred:
             2596          (a) by a purchaser-lessee;
             2597          (b) to a lessor;
             2598          (c) for consideration; and
             2599          (d) if:
             2600          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2601      of the tangible personal property or product transferred electronically;
             2602          (ii) the sale of the tangible personal property or product transferred electronically to the
             2603      lessor is intended as a form of financing:
             2604          (A) for the tangible personal property or product transferred electronically; and
             2605          (B) to the purchaser-lessee; and


             2606          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2607      is required to:
             2608          (A) capitalize the tangible personal property or product transferred electronically for
             2609      financial reporting purposes; and
             2610          (B) account for the lease payments as payments made under a financing arrangement.
             2611          [(107)] (108) "Sales price" is as defined in Subsection [(94)] (95).
             2612          [(108)] (109) (a) "Sales relating to schools" means the following sales by, amounts
             2613      paid to, or amounts charged by a school:
             2614          (i) sales that are directly related to the school's educational functions or activities
             2615      including:
             2616          (A) the sale of:
             2617          (I) textbooks;
             2618          (II) textbook fees;
             2619          (III) laboratory fees;
             2620          (IV) laboratory supplies; or
             2621          (V) safety equipment;
             2622          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2623      that:
             2624          (I) a student is specifically required to wear as a condition of participation in a
             2625      school-related event or school-related activity; and
             2626          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2627      place of ordinary clothing;
             2628          (C) sales of the following if the net or gross revenues generated by the sales are
             2629      deposited into a school district fund or school fund dedicated to school meals:
             2630          (I) food and food ingredients; or
             2631          (II) prepared food; or
             2632          (D) transportation charges for official school activities; or
             2633          (ii) amounts paid to or amounts charged by a school for admission to a school-related


             2634      event or school-related activity.
             2635          (b) "Sales relating to schools" does not include:
             2636          (i) bookstore sales of items that are not educational materials or supplies;
             2637          (ii) except as provided in Subsection [(108)] (109)(a)(i)(B):
             2638          (A) clothing;
             2639          (B) clothing accessories or equipment;
             2640          (C) protective equipment; or
             2641          (D) sports or recreational equipment; or
             2642          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2643      event or school-related activity if the amounts paid or charged are passed through to a person:
             2644          (A) other than a:
             2645          (I) school;
             2646          (II) nonprofit organization authorized by a school board or a governing body of a
             2647      private school to organize and direct a competitive secondary school activity; or
             2648          (III) nonprofit association authorized by a school board or a governing body of a
             2649      private school to organize and direct a competitive secondary school activity; and
             2650          (B) that is required to collect sales and use taxes under this chapter.
             2651          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2652      commission may make rules defining the term "passed through."
             2653          [(109)] (110) For purposes of this section and Section 59-12-104 , "school":
             2654          (a) means:
             2655          (i) an elementary school or a secondary school that:
             2656          (A) is a:
             2657          (I) public school; or
             2658          (II) private school; and
             2659          (B) provides instruction for one or more grades kindergarten through 12; or
             2660          (ii) a public school district; and
             2661          (b) includes the Electronic High School as defined in Section 53A-15-1002 .


             2662          [(110)] (111) "Seller" means a person that makes a sale, lease, or rental of:
             2663          (a) tangible personal property;
             2664          (b) a product transferred electronically; or
             2665          (c) a service.
             2666          [(111)] (112) (a) "Semiconductor fabricating, processing, research, or development
             2667      materials" means tangible personal property or a product transferred electronically if the
             2668      tangible personal property or product transferred electronically is:
             2669          (i) used primarily in the process of:
             2670          (A) (I) manufacturing a semiconductor;
             2671          (II) fabricating a semiconductor; or
             2672          (III) research or development of a:
             2673          (Aa) semiconductor; or
             2674          (Bb) semiconductor manufacturing process; or
             2675          (B) maintaining an environment suitable for a semiconductor; or
             2676          (ii) consumed primarily in the process of:
             2677          (A) (I) manufacturing a semiconductor;
             2678          (II) fabricating a semiconductor; or
             2679          (III) research or development of a:
             2680          (Aa) semiconductor; or
             2681          (Bb) semiconductor manufacturing process; or
             2682          (B) maintaining an environment suitable for a semiconductor.
             2683          (b) "Semiconductor fabricating, processing, research, or development materials"
             2684      includes:
             2685          (i) parts used in the repairs or renovations of tangible personal property or a product
             2686      transferred electronically described in Subsection [(111)] (112)(a); or
             2687          (ii) a chemical, catalyst, or other material used to:
             2688          (A) produce or induce in a semiconductor a:
             2689          (I) chemical change; or


             2690          (II) physical change;
             2691          (B) remove impurities from a semiconductor; or
             2692          (C) improve the marketable condition of a semiconductor.
             2693          [(112)] (113) "Senior citizen center" means a facility having the primary purpose of
             2694      providing services to the aged as defined in Section 62A-3-101 .
             2695          [(113)] (114) "Simplified electronic return" means the electronic return:
             2696          (a) described in Section 318(C) of the agreement; and
             2697          (b) approved by the governing board of the agreement.
             2698          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             2699      producing electricity.
             2700          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             2701          (i) designed for human use; and
             2702          (ii) that is:
             2703          (A) worn in conjunction with:
             2704          (I) an athletic activity; or
             2705          (II) a recreational activity; and
             2706          (B) not suitable for general use.
             2707          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2708      commission shall make rules:
             2709          (i) listing the items that constitute "sports or recreational equipment"; and
             2710          (ii) that are consistent with the list of items that constitute "sports or recreational
             2711      equipment" under the agreement.
             2712          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             2713          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             2714      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             2715      except sale in the regular course of business.
             2716          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             2717      personal property" means personal property that:


             2718          (i) may be:
             2719          (A) seen;
             2720          (B) weighed;
             2721          (C) measured;
             2722          (D) felt; or
             2723          (E) touched; or
             2724          (ii) is in any manner perceptible to the senses.
             2725          (b) "Tangible personal property" includes:
             2726          (i) electricity;
             2727          (ii) water;
             2728          (iii) gas;
             2729          (iv) steam; or
             2730          (v) prewritten computer software, regardless of the manner in which the prewritten
             2731      computer software is transferred.
             2732          (c) "Tangible personal property" includes the following regardless of whether the item
             2733      is attached to real property:
             2734          (i) a dishwasher;
             2735          (ii) a dryer;
             2736          (iii) a freezer;
             2737          (iv) a microwave;
             2738          (v) a refrigerator;
             2739          (vi) a stove;
             2740          (vii) a washer; or
             2741          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             2742      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2743      Rulemaking Act.
             2744          (d) "Tangible personal property" does not include a product that is transferred
             2745      electronically.


             2746          (e) "Tangible personal property" does not include the following if attached to real
             2747      property, regardless of whether the attachment to real property is only through a line that
             2748      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2749      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2750      Rulemaking Act:
             2751          (i) a hot water heater;
             2752          (ii) a water filtration system; or
             2753          (iii) a water softener system.
             2754          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             2755      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             2756      leased primarily to enable or facilitate one or more of the following to function:
             2757          (i) telecommunications switching or routing equipment, machinery, or software; or
             2758          (ii) telecommunications transmission equipment, machinery, or software.
             2759          (b) The following apply to Subsection [(119)] (120)(a):
             2760          (i) a pole;
             2761          (ii) software;
             2762          (iii) a supplementary power supply;
             2763          (iv) temperature or environmental equipment or machinery;
             2764          (v) test equipment;
             2765          (vi) a tower; or
             2766          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2767      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             2768      accordance with Subsection [(119)] (120)(c).
             2769          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2770      commission may by rule define what constitutes equipment, machinery, or software that
             2771      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             2772          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             2773      911 service" means equipment, machinery, or software that is required to comply with 47


             2774      C.F.R. Sec. 20.18.
             2775          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             2776      software" means equipment, machinery, or software purchased or leased primarily to maintain
             2777      or repair one or more of the following, regardless of whether the equipment, machinery, or
             2778      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             2779      of the following:
             2780          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2781          (b) telecommunications switching or routing equipment, machinery, or software; or
             2782          (c) telecommunications transmission equipment, machinery, or software.
             2783          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             2784      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             2785      point, or among or between points.
             2786          (b) "Telecommunications service" includes:
             2787          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2788      processing application is used to act:
             2789          (A) on the code, form, or protocol of the content;
             2790          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2791          (C) regardless of whether the service:
             2792          (I) is referred to as voice over Internet protocol service; or
             2793          (II) is classified by the Federal Communications Commission as enhanced or value
             2794      added;
             2795          (ii) an 800 service;
             2796          (iii) a 900 service;
             2797          (iv) a fixed wireless service;
             2798          (v) a mobile wireless service;
             2799          (vi) a postpaid calling service;
             2800          (vii) a prepaid calling service;
             2801          (viii) a prepaid wireless calling service; or


             2802          (ix) a private communications service.
             2803          (c) "Telecommunications service" does not include:
             2804          (i) advertising, including directory advertising;
             2805          (ii) an ancillary service;
             2806          (iii) a billing and collection service provided to a third party;
             2807          (iv) a data processing and information service if:
             2808          (A) the data processing and information service allows data to be:
             2809          (I) (Aa) acquired;
             2810          (Bb) generated;
             2811          (Cc) processed;
             2812          (Dd) retrieved; or
             2813          (Ee) stored; and
             2814          (II) delivered by an electronic transmission to a purchaser; and
             2815          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2816      or information;
             2817          (v) installation or maintenance of the following on a customer's premises:
             2818          (A) equipment; or
             2819          (B) wiring;
             2820          (vi) Internet access service;
             2821          (vii) a paging service;
             2822          (viii) a product transferred electronically, including:
             2823          (A) music;
             2824          (B) reading material;
             2825          (C) a ring tone;
             2826          (D) software; or
             2827          (E) video;
             2828          (ix) a radio and television audio and video programming service:
             2829          (A) regardless of the medium; and


             2830          (B) including:
             2831          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2832      programming service by a programming service provider;
             2833          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2834          (III) audio and video programming services delivered by a commercial mobile radio
             2835      service provider as defined in 47 C.F.R. Sec. 20.3;
             2836          (x) a value-added nonvoice data service; or
             2837          (xi) tangible personal property.
             2838          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             2839          (i) owns, controls, operates, or manages a telecommunications service; and
             2840          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             2841      with or resale to any person of the telecommunications service.
             2842          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             2843      provider whether or not the Public Service Commission of Utah regulates:
             2844          (i) that person; or
             2845          (ii) the telecommunications service that the person owns, controls, operates, or
             2846      manages.
             2847          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             2848      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             2849      leased primarily for switching or routing:
             2850          (i) an ancillary service;
             2851          (ii) data communications;
             2852          (iii) voice communications; or
             2853          (iv) telecommunications service.
             2854          (b) The following apply to Subsection [(124)] (125)(a):
             2855          (i) a bridge;
             2856          (ii) a computer;
             2857          (iii) a cross connect;


             2858          (iv) a modem;
             2859          (v) a multiplexer;
             2860          (vi) plug in circuitry;
             2861          (vii) a router;
             2862          (viii) software;
             2863          (ix) a switch; or
             2864          (x) equipment, machinery, or software that functions similarly to an item listed in
             2865      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             2866      accordance with Subsection [(124)] (125)(c).
             2867          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2868      commission may by rule define what constitutes equipment, machinery, or software that
             2869      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             2870          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             2871      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             2872      leased primarily for sending, receiving, or transporting:
             2873          (i) an ancillary service;
             2874          (ii) data communications;
             2875          (iii) voice communications; or
             2876          (iv) telecommunications service.
             2877          (b) The following apply to Subsection [(125)] (126)(a):
             2878          (i) an amplifier;
             2879          (ii) a cable;
             2880          (iii) a closure;
             2881          (iv) a conduit;
             2882          (v) a controller;
             2883          (vi) a duplexer;
             2884          (vii) a filter;
             2885          (viii) an input device;


             2886          (ix) an input/output device;
             2887          (x) an insulator;
             2888          (xi) microwave machinery or equipment;
             2889          (xii) an oscillator;
             2890          (xiii) an output device;
             2891          (xiv) a pedestal;
             2892          (xv) a power converter;
             2893          (xvi) a power supply;
             2894          (xvii) a radio channel;
             2895          (xviii) a radio receiver;
             2896          (xix) a radio transmitter;
             2897          (xx) a repeater;
             2898          (xxi) software;
             2899          (xxii) a terminal;
             2900          (xxiii) a timing unit;
             2901          (xxiv) a transformer;
             2902          (xxv) a wire; or
             2903          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2904      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             2905      accordance with Subsection [(125)] (126)(c).
             2906          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2907      commission may by rule define what constitutes equipment, machinery, or software that
             2908      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             2909          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             2910      printed material that is required for a course:
             2911          (i) offered by an institution of higher education; and
             2912          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2913          (b) "Textbook for a higher education course" includes a textbook in electronic format.


             2914          [(127)] (128) "Tobacco" means:
             2915          (a) a cigarette;
             2916          (b) a cigar;
             2917          (c) chewing tobacco;
             2918          (d) pipe tobacco; or
             2919          (e) any other item that contains tobacco.
             2920          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             2921      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             2922      operate the amusement device, skill device, or ride device.
             2923          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             2924      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2925      incident to the ownership or the leasing of that tangible personal property, product transferred
             2926      electronically, or service.
             2927          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             2928      property, a product transferred electronically, or a service in the regular course of business and
             2929      held for resale.
             2930          [(130)] (131) "Value-added nonvoice data service" means a service:
             2931          (a) that otherwise meets the definition of a telecommunications service except that a
             2932      computer processing application is used to act primarily for a purpose other than conveyance,
             2933      routing, or transmission; and
             2934          (b) with respect to which a computer processing application is used to act on data or
             2935      information:
             2936          (i) code;
             2937          (ii) content;
             2938          (iii) form; or
             2939          (iv) protocol.
             2940          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             2941      that are required to be titled, registered, or titled and registered:


             2942          (i) an aircraft as defined in Section 72-10-102 ;
             2943          (ii) a vehicle as defined in Section 41-1a-102 ;
             2944          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2945          (iv) a vessel as defined in Section 41-1a-102 .
             2946          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             2947          (i) a vehicle described in Subsection [(131)] (132)(a); or
             2948          (ii) (A) a locomotive;
             2949          (B) a freight car;
             2950          (C) railroad work equipment; or
             2951          (D) other railroad rolling stock.
             2952          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             2953      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             2954          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             2955          (i) is offered in connection with one or more telecommunications services; and
             2956          (ii) offers an advanced calling feature that allows a customer to:
             2957          (A) identify a caller; and
             2958          (B) manage multiple calls and call connections.
             2959          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2960      conference bridging service.
             2961          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             2962      customer to receive, send, or store a recorded message.
             2963          (b) "Voice mail service" does not include a vertical service that a customer is required
             2964      to have in order to utilize a voice mail service.
             2965          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             2966      facility" means a facility that generates electricity:
             2967          (i) using as the primary source of energy waste materials that would be placed in a
             2968      landfill or refuse pit if it were not used to generate electricity, including:
             2969          (A) tires;


             2970          (B) waste coal;
             2971          (C) oil shale; or
             2972          (D) municipal solid waste; and
             2973          (ii) in amounts greater than actually required for the operation of the facility.
             2974          (b) "Waste energy facility" does not include a facility that incinerates:
             2975          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             2976          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2977          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2978          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             2979      electricity.
             2980          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             2981      geographic location by the United States Postal Service.
             2982          Section 3. Section 59-12-104 is amended to read:
             2983           59-12-104. Exemptions.
             2984          The following sales and uses are exempt from the taxes imposed by this chapter:
             2985          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             2986      under Chapter 13, Motor and Special Fuel Tax Act;
             2987          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             2988      subdivisions; however, this exemption does not apply to sales of:
             2989          (a) construction materials except:
             2990          (i) construction materials purchased by or on behalf of institutions of the public
             2991      education system as defined in Utah Constitution Article X, Section 2, provided the
             2992      construction materials are clearly identified and segregated and installed or converted to real
             2993      property which is owned by institutions of the public education system; and
             2994          (ii) construction materials purchased by the state, its institutions, or its political
             2995      subdivisions which are installed or converted to real property by employees of the state, its
             2996      institutions, or its political subdivisions; or
             2997          (b) tangible personal property in connection with the construction, operation,


             2998      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             2999      providing additional project capacity, as defined in Section 11-13-103 ;
             3000          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             3001          (i) the proceeds of each sale do not exceed $1; and
             3002          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             3003      the cost of the item described in Subsection (3)(b) as goods consumed; and
             3004          (b) Subsection (3)(a) applies to:
             3005          (i) food and food ingredients; or
             3006          (ii) prepared food;
             3007          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             3008          (i) alcoholic beverages;
             3009          (ii) food and food ingredients; or
             3010          (iii) prepared food;
             3011          (b) sales of tangible personal property or a product transferred electronically:
             3012          (i) to a passenger;
             3013          (ii) by a commercial airline carrier; and
             3014          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             3015          (c) services related to Subsection (4)(a) or (b);
             3016          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             3017      and equipment:
             3018          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             3019      North American Industry Classification System of the federal Executive Office of the
             3020      President, Office of Management and Budget; and
             3021          (II) for:
             3022          (Aa) installation in an aircraft, including services relating to the installation of parts or
             3023      equipment in the aircraft;
             3024          (Bb) renovation of an aircraft; or
             3025          (Cc) repair of an aircraft; or


             3026          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             3027      commerce; or
             3028          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             3029      aircraft operated by a common carrier in interstate or foreign commerce; and
             3030          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             3031      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             3032      refund:
             3033          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             3034          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             3035          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             3036      the sale prior to filing for the refund;
             3037          (iv) for sales and use taxes paid under this chapter on the sale;
             3038          (v) in accordance with Section 59-1-1410 ; and
             3039          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             3040      the person files for the refund on or before September 30, 2011;
             3041          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             3042      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             3043      exhibitor, distributor, or commercial television or radio broadcaster;
             3044          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             3045      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             3046      washing of tangible personal property;
             3047          (b) if a seller that sells at the same business location assisted cleaning or washing of
             3048      tangible personal property and cleaning or washing of tangible personal property that is not
             3049      assisted cleaning or washing of tangible personal property, the exemption described in
             3050      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             3051      or washing of the tangible personal property; and
             3052          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             3053      Utah Administrative Rulemaking Act, the commission may make rules:


             3054          (i) governing the circumstances under which sales are at the same business location;
             3055      and
             3056          (ii) establishing the procedures and requirements for a seller to separately account for
             3057      sales of assisted cleaning or washing of tangible personal property;
             3058          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             3059      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             3060      fulfilled;
             3061          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             3062      this state if the vehicle is:
             3063          (a) not registered in this state; and
             3064          (b) (i) not used in this state; or
             3065          (ii) used in this state:
             3066          (A) if the vehicle is not used to conduct business, for a time period that does not
             3067      exceed the longer of:
             3068          (I) 30 days in any calendar year; or
             3069          (II) the time period necessary to transport the vehicle to the borders of this state; or
             3070          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             3071      the vehicle to the borders of this state;
             3072          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             3073          (i) the item is intended for human use; and
             3074          (ii) (A) a prescription was issued for the item; or
             3075          (B) the item was purchased by a hospital or other medical facility; and
             3076          (b) (i) Subsection (10)(a) applies to:
             3077          (A) a drug;
             3078          (B) a syringe; or
             3079          (C) a stoma supply; and
             3080          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3081      commission may by rule define the terms:


             3082          (A) "syringe"; or
             3083          (B) "stoma supply";
             3084          (11) sales or use of property, materials, or services used in the construction of or
             3085      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             3086          (12) (a) sales of an item described in Subsection (12)(c) served by:
             3087          (i) the following if the item described in Subsection (12)(c) is not available to the
             3088      general public:
             3089          (A) a church; or
             3090          (B) a charitable institution;
             3091          (ii) an institution of higher education if:
             3092          (A) the item described in Subsection (12)(c) is not available to the general public; or
             3093          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             3094      offered by the institution of higher education; or
             3095          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             3096          (i) a medical facility; or
             3097          (ii) a nursing facility; and
             3098          (c) Subsections (12)(a) and (b) apply to:
             3099          (i) food and food ingredients;
             3100          (ii) prepared food; or
             3101          (iii) alcoholic beverages;
             3102          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             3103      or a product transferred electronically by a person:
             3104          (i) regardless of the number of transactions involving the sale of that tangible personal
             3105      property or product transferred electronically by that person; and
             3106          (ii) not regularly engaged in the business of selling that type of tangible personal
             3107      property or product transferred electronically;
             3108          (b) this Subsection (13) does not apply if:
             3109          (i) the sale is one of a series of sales of a character to indicate that the person is


             3110      regularly engaged in the business of selling that type of tangible personal property or product
             3111      transferred electronically;
             3112          (ii) the person holds that person out as regularly engaged in the business of selling that
             3113      type of tangible personal property or product transferred electronically;
             3114          (iii) the person sells an item of tangible personal property or product transferred
             3115      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             3116          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             3117      this state in which case the tax is based upon:
             3118          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             3119      sold; or
             3120          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             3121      value of the vehicle or vessel being sold at the time of the sale as determined by the
             3122      commission; and
             3123          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3124      commission shall make rules establishing the circumstances under which:
             3125          (i) a person is regularly engaged in the business of selling a type of tangible personal
             3126      property or product transferred electronically;
             3127          (ii) a sale of tangible personal property or a product transferred electronically is one of
             3128      a series of sales of a character to indicate that a person is regularly engaged in the business of
             3129      selling that type of tangible personal property or product transferred electronically; or
             3130          (iii) a person holds that person out as regularly engaged in the business of selling a type
             3131      of tangible personal property or product transferred electronically;
             3132          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             3133      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             3134      facility, of the following:
             3135          (i) machinery and equipment that:
             3136          (A) are used:
             3137          (I) for a manufacturing facility except for a manufacturing facility that is a scrap


             3138      recycler described in Subsection 59-12-102 (60)(b):
             3139          (Aa) in the manufacturing process;
             3140          (Bb) to manufacture an item sold as tangible personal property; and
             3141          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             3142      (14)(a)(i)(A)(I) in the state; or
             3143          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             3144      59-12-102 (60)(b):
             3145          (Aa) to process an item sold as tangible personal property; and
             3146          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             3147      (14)(a)(i)(A)(II) in the state; and
             3148          (B) have an economic life of three or more years; and
             3149          (ii) normal operating repair or replacement parts that:
             3150          (A) have an economic life of three or more years; and
             3151          (B) are used:
             3152          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             3153      recycler described in Subsection 59-12-102 (60)(b):
             3154          (Aa) in the manufacturing process; and
             3155          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             3156      state; or
             3157          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             3158      59-12-102 (60)(b):
             3159          (Aa) to process an item sold as tangible personal property; and
             3160          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             3161      state;
             3162          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             3163      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             3164      of the following:
             3165          (i) machinery and equipment that:


             3166          (A) are used:
             3167          (I) in the manufacturing process;
             3168          (II) to manufacture an item sold as tangible personal property; and