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S.B. 154

             1     

SALES AND USE TAXATION OF WATER

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Scott K. Jenkins

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to the sales and use taxation of water.
             10      Highlighted Provisions:
             11          This bill:
             12          .    creates and amends definitions;
             13          .    modifies a sales and use tax exemption for water;
             14          .    adds potable delivered water to the state and local sales and use tax base;
             15          .    allocates state revenues collected from the sales and use tax on potable delivered
             16      water to the Water Resources Conservation and Development Fund;
             17          .    modifies the funding sources for the Water Resources Conservation and
             18      Development Fund to include the sales and use tax allocations; and
             19          .    makes technical and conforming changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides an effective date.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             27      255, 312, 405, and 410


             28          59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
             29      312, 405, 410, and 424
             30          59-12-103 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             31      207, 212, 254, and 255
             32          59-12-103 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 207,
             33      212, 254, 255, and 424
             34          59-12-104, as last amended by Laws of Utah 2012, Chapters 255, 399, 405, and 410
             35          59-12-1201, as last amended by Laws of Utah 2012, Chapter 121
             36          73-10-25, as last amended by Laws of Utah 1991, First Special Session, Chapter 4
             37          73-10-31, as enacted by Laws of Utah 1996, Chapter 199
             38     
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 59-12-102 (Superseded 07/01/14) is amended to read:
             41           59-12-102 (Superseded 07/01/14). Definitions.
             42          As used in this chapter:
             43          (1) "800 service" means a telecommunications service that:
             44          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             45          (b) is typically marketed:
             46          (i) under the name 800 toll-free calling;
             47          (ii) under the name 855 toll-free calling;
             48          (iii) under the name 866 toll-free calling;
             49          (iv) under the name 877 toll-free calling;
             50          (v) under the name 888 toll-free calling; or
             51          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             52      Federal Communications Commission.
             53          (2) (a) "900 service" means an inbound toll telecommunications service that:
             54          (i) a subscriber purchases;
             55          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             56      the subscriber's:
             57          (A) prerecorded announcement; or
             58          (B) live service; and


             59          (iii) is typically marketed:
             60          (A) under the name 900 service; or
             61          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             62      Communications Commission.
             63          (b) "900 service" does not include a charge for:
             64          (i) a collection service a seller of a telecommunications service provides to a
             65      subscriber; or
             66          (ii) the following a subscriber sells to the subscriber's customer:
             67          (A) a product; or
             68          (B) a service.
             69          (3) (a) "Admission or user fees" includes season passes.
             70          (b) "Admission or user fees" does not include annual membership dues to private
             71      organizations.
             72          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             73      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             74      Agreement after November 12, 2002.
             75          (5) "Agreement combined tax rate" means the sum of the tax rates:
             76          (a) listed under Subsection (6); and
             77          (b) that are imposed within a local taxing jurisdiction.
             78          (6) "Agreement sales and use tax" means a tax imposed under:
             79          (a) Subsection 59-12-103 (2)(a)(i)(A);
             80          (b) Subsection 59-12-103 (2)(b)(i);
             81          (c) Subsection 59-12-103 (2)(c)(i);
             82          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             83          (e) Section 59-12-204 ;
             84          (f) Section 59-12-401 ;
             85          (g) Section 59-12-402 ;
             86          (h) Section 59-12-703 ;
             87          (i) Section 59-12-802 ;
             88          (j) Section 59-12-804 ;
             89          (k) Section 59-12-1102 ;


             90          (l) Section 59-12-1302 ;
             91          (m) Section 59-12-1402 ;
             92          (n) Section 59-12-1802 ;
             93          (o) Section 59-12-2003 ;
             94          (p) Section 59-12-2103 ;
             95          (q) Section 59-12-2213 ;
             96          (r) Section 59-12-2214 ;
             97          (s) Section 59-12-2215 ;
             98          (t) Section 59-12-2216 ;
             99          (u) Section 59-12-2217 ; or
             100          (v) Section 59-12-2218 .
             101          (7) "Aircraft" is as defined in Section 72-10-102 .
             102          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             103          (a) except for:
             104          (i) an airline as defined in Section 59-2-102 ; or
             105          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             106      includes a corporation that is qualified to do business but is not otherwise doing business in the
             107      state, of an airline; and
             108          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             109      whether the business entity performs the following in this state:
             110          (i) check, diagnose, overhaul, and repair:
             111          (A) an onboard system of a fixed wing turbine powered aircraft; and
             112          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             113          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             114      engine;
             115          (iii) perform at least the following maintenance on a fixed wing turbine powered
             116      aircraft:
             117          (A) an inspection;
             118          (B) a repair, including a structural repair or modification;
             119          (C) changing landing gear; and
             120          (D) addressing issues related to an aging fixed wing turbine powered aircraft;


             121          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             122      completely apply new paint to the fixed wing turbine powered aircraft; and
             123          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             124      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             125      authority that certifies the fixed wing turbine powered aircraft.
             126          (9) "Alcoholic beverage" means a beverage that:
             127          (a) is suitable for human consumption; and
             128          (b) contains .5% or more alcohol by volume.
             129          (10) "Alternative energy" means:
             130          (a) biomass energy;
             131          (b) geothermal energy;
             132          (c) hydroelectric energy;
             133          (d) solar energy;
             134          (e) wind energy; or
             135          (f) energy that is derived from:
             136          (i) coal-to-liquids;
             137          (ii) nuclear fuel;
             138          (iii) oil-impregnated diatomaceous earth;
             139          (iv) oil sands;
             140          (v) oil shale; or
             141          (vi) petroleum coke.
             142          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             143      facility" means a facility that:
             144          (i) uses alternative energy to produce electricity; and
             145          (ii) has a production capacity of [2] two megawatts or greater.
             146          (b) A facility is an alternative energy electricity production facility regardless of
             147      whether the facility is:
             148          (i) connected to an electric grid; or
             149          (ii) located on the premises of an electricity consumer.
             150          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             151      provision of telecommunications service.


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


             183          (ii) other organic matter that is available on a renewable basis, including:
             184          (A) slash and brush from forests and woodlands;
             185          (B) animal waste;
             186          (C) methane produced:
             187          (I) at landfills; or
             188          (II) as a byproduct of the treatment of wastewater residuals;
             189          (D) aquatic plants; and
             190          (E) agricultural products.
             191          (b) "Biomass energy" does not include:
             192          (i) black liquor;
             193          (ii) treated woods; or
             194          (iii) biomass from municipal solid waste other than methane produced:
             195          (A) at landfills; or
             196          (B) as a byproduct of the treatment of wastewater residuals.
             197          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             198      property, products, or services if the tangible personal property, products, or services are:
             199          (i) distinct and identifiable; and
             200          (ii) sold for one nonitemized price.
             201          (b) "Bundled transaction" does not include:
             202          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             203      the basis of the selection by the purchaser of the items of tangible personal property included in
             204      the transaction;
             205          (ii) the sale of real property;
             206          (iii) the sale of services to real property;
             207          (iv) the retail sale of tangible personal property and a service if:
             208          (A) the tangible personal property:
             209          (I) is essential to the use of the service; and
             210          (II) is provided exclusively in connection with the service; and
             211          (B) the service is the true object of the transaction;
             212          (v) the retail sale of two services if:
             213          (A) one service is provided that is essential to the use or receipt of a second service;


             214          (B) the first service is provided exclusively in connection with the second service; and
             215          (C) the second service is the true object of the transaction;
             216          (vi) a transaction that includes tangible personal property or a product subject to
             217      taxation under this chapter and tangible personal property or a product that is not subject to
             218      taxation under this chapter if the:
             219          (A) seller's purchase price of the tangible personal property or product subject to
             220      taxation under this chapter is de minimis; or
             221          (B) seller's sales price of the tangible personal property or product subject to taxation
             222      under this chapter is de minimis; and
             223          (vii) the retail sale of tangible personal property that is not subject to taxation under
             224      this chapter and tangible personal property that is subject to taxation under this chapter if:
             225          (A) that retail sale includes:
             226          (I) food and food ingredients;
             227          (II) a drug;
             228          (III) durable medical equipment;
             229          (IV) mobility enhancing equipment;
             230          (V) an over-the-counter drug;
             231          (VI) a prosthetic device; or
             232          (VII) a medical supply; and
             233          (B) subject to Subsection (18)(f):
             234          (I) the seller's purchase price of the tangible personal property subject to taxation under
             235      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             236          (II) the seller's sales price of the tangible personal property subject to taxation under
             237      this chapter is 50% or less of the seller's total sales price of that retail sale.
             238          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             239      service that is distinct and identifiable does not include:
             240          (A) packaging that:
             241          (I) accompanies the sale of the tangible personal property, product, or service; and
             242          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             243      service;
             244          (B) tangible personal property, a product, or a service provided free of charge with the


             245      purchase of another item of tangible personal property, a product, or a service; or
             246          (C) an item of tangible personal property, a product, or a service included in the
             247      definition of "purchase price."
             248          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             249      product, or a service is provided free of charge with the purchase of another item of tangible
             250      personal property, a product, or a service if the sales price of the purchased item of tangible
             251      personal property, product, or service does not vary depending on the inclusion of the tangible
             252      personal property, product, or service provided free of charge.
             253          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             254      does not include a price that is separately identified by tangible personal property, product, or
             255      service on the following, regardless of whether the following is in paper format or electronic
             256      format:
             257          (A) a binding sales document; or
             258          (B) another supporting sales-related document that is available to a purchaser.
             259          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             260      supporting sales-related document that is available to a purchaser includes:
             261          (A) a bill of sale;
             262          (B) a contract;
             263          (C) an invoice;
             264          (D) a lease agreement;
             265          (E) a periodic notice of rates and services;
             266          (F) a price list;
             267          (G) a rate card;
             268          (H) a receipt; or
             269          (I) a service agreement.
             270          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             271      property or a product subject to taxation under this chapter is de minimis if:
             272          (A) the seller's purchase price of the tangible personal property or product is 10% or
             273      less of the seller's total purchase price of the bundled transaction; or
             274          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             275      the seller's total sales price of the bundled transaction.


             276          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             277          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             278      purchase price or sales price of the tangible personal property or product subject to taxation
             279      under this chapter is de minimis; and
             280          (B) may not use a combination of the seller's purchase price and the seller's sales price
             281      to determine if the purchase price or sales price of the tangible personal property or product
             282      subject to taxation under this chapter is de minimis.
             283          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             284      contract to determine if the sales price of tangible personal property or a product is de minimis.
             285          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             286      the seller's purchase price and the seller's sales price to determine if tangible personal property
             287      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             288      price of that retail sale.
             289          (19) "Certified automated system" means software certified by the governing board of
             290      the agreement that:
             291          (a) calculates the agreement sales and use tax imposed within a local taxing
             292      jurisdiction:
             293          (i) on a transaction; and
             294          (ii) in the states that are members of the agreement;
             295          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             296      member of the agreement; and
             297          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             298          (20) "Certified service provider" means an agent certified:
             299          (a) by the governing board of the agreement; and
             300          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             301      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             302      own purchases.
             303          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             304      suitable for general use.
             305          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             306      commission shall make rules:


             307          (i) listing the items that constitute "clothing"; and
             308          (ii) that are consistent with the list of items that constitute "clothing" under the
             309      agreement.
             310          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             311          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             312      fuels that does not constitute industrial use under Subsection (51) or residential use under
             313      Subsection (101).
             314          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             315      transporting passengers, freight, merchandise, or other property for hire within this state.
             316          (b) (i) "Common carrier" does not include a person who, at the time the person is
             317      traveling to or from that person's place of employment, transports a passenger to or from the
             318      passenger's place of employment.
             319          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             320      Utah Administrative Rulemaking Act, the commission may make rules defining what
             321      constitutes a person's place of employment.
             322          (25) "Component part" includes:
             323          (a) poultry, dairy, and other livestock feed, and their components;
             324          (b) baling ties and twine used in the baling of hay and straw;
             325          (c) fuel used for providing temperature control of orchards and commercial
             326      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             327      off-highway type farm machinery; and
             328          (d) feed, seeds, and seedlings.
             329          (26) "Computer" means an electronic device that accepts information:
             330          (a) (i) in digital form; or
             331          (ii) in a form similar to digital form; and
             332          (b) manipulates that information for a result based on a sequence of instructions.
             333          (27) "Computer software" means a set of coded instructions designed to cause:
             334          (a) a computer to perform a task; or
             335          (b) automatic data processing equipment to perform a task.
             336          (28) "Computer software maintenance contract" means a contract that obligates a seller
             337      of computer software to provide a customer with:


             338          (a) future updates or upgrades to computer software;
             339          (b) support services with respect to computer software; or
             340          (c) a combination of Subsections (28)(a) and (b).
             341          (29) (a) "Conference bridging service" means an ancillary service that links two or
             342      more participants of an audio conference call or video conference call.
             343          (b) "Conference bridging service" may include providing a telephone number as part of
             344      the ancillary service described in Subsection (29)(a).
             345          (c) "Conference bridging service" does not include a telecommunications service used
             346      to reach the ancillary service described in Subsection (29)(a).
             347          (30) "Construction materials" means any tangible personal property that will be
             348      converted into real property.
             349          (31) "Delivered electronically" means delivered to a purchaser by means other than
             350      tangible storage media.
             351          (32) (a) "Delivery charge" means a charge:
             352          (i) by a seller of:
             353          (A) tangible personal property;
             354          (B) a product transferred electronically; or
             355          (C) services; and
             356          (ii) for preparation and delivery of the tangible personal property, product transferred
             357      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             358      purchaser.
             359          (b) "Delivery charge" includes a charge for the following:
             360          (i) transportation;
             361          (ii) shipping;
             362          (iii) postage;
             363          (iv) handling;
             364          (v) crating; or
             365          (vi) packing.
             366          (33) "Detailed telecommunications billing service" means an ancillary service of
             367      separately stating information pertaining to individual calls on a customer's billing statement.
             368          (34) "Dietary supplement" means a product, other than tobacco, that:


             369          (a) is intended to supplement the diet;
             370          (b) contains one or more of the following dietary ingredients:
             371          (i) a vitamin;
             372          (ii) a mineral;
             373          (iii) an herb or other botanical;
             374          (iv) an amino acid;
             375          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             376      dietary intake; or
             377          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             378      described in Subsections (34)(b)(i) through (v);
             379          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             380          (A) tablet form;
             381          (B) capsule form;
             382          (C) powder form;
             383          (D) softgel form;
             384          (E) gelcap form; or
             385          (F) liquid form; or
             386          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             387      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             388          (A) as conventional food; and
             389          (B) for use as a sole item of:
             390          (I) a meal; or
             391          (II) the diet; and
             392          (d) is required to be labeled as a dietary supplement:
             393          (i) identifiable by the "Supplemental Facts" box found on the label; and
             394          (ii) as required by 21 C.F.R. Sec. 101.36.
             395          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             396      mail or other delivery service:
             397          (i) to:
             398          (A) a mass audience; or
             399          (B) addressees on a mailing list provided:


             400          (I) by a purchaser of the mailing list; or
             401          (II) at the discretion of the purchaser of the mailing list; and
             402          (ii) if the cost of the printed material is not billed directly to the recipients.
             403          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             404      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             405          (c) "Direct mail" does not include multiple items of printed material delivered to a
             406      single address.
             407          (36) "Directory assistance" means an ancillary service of providing:
             408          (a) address information; or
             409          (b) telephone number information.
             410          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             411      or supplies that:
             412          (i) cannot withstand repeated use; and
             413          (ii) are purchased by, for, or on behalf of a person other than:
             414          (A) a health care facility as defined in Section 26-21-2 ;
             415          (B) a health care provider as defined in Section 78B-3-403 ;
             416          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             417          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             418          (b) "Disposable home medical equipment or supplies" does not include:
             419          (i) a drug;
             420          (ii) durable medical equipment;
             421          (iii) a hearing aid;
             422          (iv) a hearing aid accessory;
             423          (v) mobility enhancing equipment; or
             424          (vi) tangible personal property used to correct impaired vision, including:
             425          (A) eyeglasses; or
             426          (B) contact lenses.
             427          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             428      commission may by rule define what constitutes medical equipment or supplies.
             429          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             430      compound, substance, or preparation that is:


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


             462          (b) having:
             463          (i) electrical capabilities;
             464          (ii) digital capabilities;
             465          (iii) magnetic capabilities;
             466          (iv) wireless capabilities;
             467          (v) optical capabilities;
             468          (vi) electromagnetic capabilities; or
             469          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             470          (41) "Employee" is as defined in Section 59-10-401 .
             471          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             472          (a) rail for the use of public transit; or
             473          (b) a separate right-of-way for the use of public transit.
             474          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             475          (a) is powered by turbine engines;
             476          (b) operates on jet fuel; and
             477          (c) has wings that are permanently attached to the fuselage of the aircraft.
             478          (44) "Fixed wireless service" means a telecommunications service that provides radio
             479      communication between fixed points.
             480          (45) (a) "Food and food ingredients" means substances:
             481          (i) regardless of whether the substances are in:
             482          (A) liquid form;
             483          (B) concentrated form;
             484          (C) solid form;
             485          (D) frozen form;
             486          (E) dried form; or
             487          (F) dehydrated form; and
             488          (ii) that are:
             489          (A) sold for:
             490          (I) ingestion by humans; or
             491          (II) chewing by humans; and
             492          (B) consumed for the substance's:


             493          (I) taste; or
             494          (II) nutritional value.
             495          (b) "Food and food ingredients" includes an item described in Subsection [(86)]
             496      (87)(b)(iii).
             497          (c) "Food and food ingredients" does not include:
             498          (i) an alcoholic beverage;
             499          (ii) tobacco; or
             500          (iii) prepared food.
             501          (46) (a) "Fundraising sales" means sales:
             502          (i) (A) made by a school; or
             503          (B) made by a school student;
             504          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             505      materials, or provide transportation; and
             506          (iii) that are part of an officially sanctioned school activity.
             507          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             508      means a school activity:
             509          (i) that is conducted in accordance with a formal policy adopted by the school or school
             510      district governing the authorization and supervision of fundraising activities;
             511          (ii) that does not directly or indirectly compensate an individual teacher or other
             512      educational personnel by direct payment, commissions, or payment in kind; and
             513          (iii) the net or gross revenues from which are deposited in a dedicated account
             514      controlled by the school or school district.
             515          (47) "Geothermal energy" means energy contained in heat that continuously flows
             516      outward from the earth that is used as the sole source of energy to produce electricity.
             517          (48) "Governing board of the agreement" means the governing board of the agreement
             518      that is:
             519          (a) authorized to administer the agreement; and
             520          (b) established in accordance with the agreement.
             521          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             522          (i) the executive branch of the state, including all departments, institutions, boards,
             523      divisions, bureaus, offices, commissions, and committees;


             524          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             525      Office of the Court Administrator, and similar administrative units in the judicial branch;
             526          (iii) the legislative branch of the state, including the House of Representatives, the
             527      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             528      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             529      Analyst;
             530          (iv) the National Guard;
             531          (v) an independent entity as defined in Section 63E-1-102 ; or
             532          (vi) a political subdivision as defined in Section 17B-1-102 .
             533          (b) "Governmental entity" does not include the state systems of public and higher
             534      education, including:
             535          (i) a college campus of the Utah College of Applied Technology;
             536          (ii) a school;
             537          (iii) the State Board of Education;
             538          (iv) the State Board of Regents; or
             539          (v) an institution of higher education.
             540          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             541      electricity.
             542          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             543      other fuels:
             544          (a) in mining or extraction of minerals;
             545          (b) in agricultural operations to produce an agricultural product up to the time of
             546      harvest or placing the agricultural product into a storage facility, including:
             547          (i) commercial greenhouses;
             548          (ii) irrigation pumps;
             549          (iii) farm machinery;
             550          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             551      registered under Title 41, Chapter 1a, Part 2, Registration; and
             552          (v) other farming activities;
             553          (c) in manufacturing tangible personal property at an establishment described in SIC
             554      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal


             555      Executive Office of the President, Office of Management and Budget;
             556          (d) by a scrap recycler if:
             557          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             558      one or more of the following items into prepared grades of processed materials for use in new
             559      products:
             560          (A) iron;
             561          (B) steel;
             562          (C) nonferrous metal;
             563          (D) paper;
             564          (E) glass;
             565          (F) plastic;
             566          (G) textile; or
             567          (H) rubber; and
             568          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             569      nonrecycled materials; or
             570          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             571      cogeneration facility as defined in Section 54-2-1 .
             572          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             573      for installing:
             574          (i) tangible personal property; or
             575          (ii) a product transferred electronically.
             576          (b) "Installation charge" does not include a charge for:
             577          (i) repairs or renovations of:
             578          (A) tangible personal property; or
             579          (B) a product transferred electronically; or
             580          (ii) attaching tangible personal property or a product transferred electronically:
             581          (A) to other tangible personal property; and
             582          (B) as part of a manufacturing or fabrication process.
             583          (53) "Institution of higher education" means an institution of higher education listed in
             584      Section 53B-2-101 .
             585          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible


             586      personal property or a product transferred electronically for:
             587          (i) (A) a fixed term; or
             588          (B) an indeterminate term; and
             589          (ii) consideration.
             590          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             591      amount of consideration may be increased or decreased by reference to the amount realized
             592      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             593      Code.
             594          (c) "Lease" or "rental" does not include:
             595          (i) a transfer of possession or control of property under a security agreement or
             596      deferred payment plan that requires the transfer of title upon completion of the required
             597      payments;
             598          (ii) a transfer of possession or control of property under an agreement that requires the
             599      transfer of title:
             600          (A) upon completion of required payments; and
             601          (B) if the payment of an option price does not exceed the greater of:
             602          (I) $100; or
             603          (II) 1% of the total required payments; or
             604          (iii) providing tangible personal property along with an operator for a fixed period of
             605      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             606      designed.
             607          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             608      perform as designed if the operator's duties exceed the:
             609          (i) set-up of tangible personal property;
             610          (ii) maintenance of tangible personal property; or
             611          (iii) inspection of tangible personal property.
             612          (55) "Life science establishment" means an establishment in this state that is classified
             613      under the following NAICS codes of the 2007 North American Industry Classification System
             614      of the federal Executive Office of the President, Office of Management and Budget:
             615          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             616          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus


             617      Manufacturing; or
             618          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             619          (56) "Life science research and development facility" means a facility owned, leased,
             620      or rented by a life science establishment if research and development is performed in 51% or
             621      more of the total area of the facility.
             622          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             623      if the tangible storage media is not physically transferred to the purchaser.
             624          (58) "Local taxing jurisdiction" means a:
             625          (a) county that is authorized to impose an agreement sales and use tax;
             626          (b) city that is authorized to impose an agreement sales and use tax; or
             627          (c) town that is authorized to impose an agreement sales and use tax.
             628          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             629          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             630          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             631      Industrial Classification Manual of the federal Executive Office of the President, Office of
             632      Management and Budget;
             633          (b) a scrap recycler if:
             634          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             635      one or more of the following items into prepared grades of processed materials for use in new
             636      products:
             637          (A) iron;
             638          (B) steel;
             639          (C) nonferrous metal;
             640          (D) paper;
             641          (E) glass;
             642          (F) plastic;
             643          (G) textile; or
             644          (H) rubber; and
             645          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             646      nonrecycled materials; or
             647          (c) a cogeneration facility as defined in Section 54-2-1 .


             648          (61) "Member of the immediate family of the producer" means a person who is related
             649      to a producer described in Subsection 59-12-104 (20)(a) as a:
             650          (a) child or stepchild, regardless of whether the child or stepchild is:
             651          (i) an adopted child or adopted stepchild; or
             652          (ii) a foster child or foster stepchild;
             653          (b) grandchild or stepgrandchild;
             654          (c) grandparent or stepgrandparent;
             655          (d) nephew or stepnephew;
             656          (e) niece or stepniece;
             657          (f) parent or stepparent;
             658          (g) sibling or stepsibling;
             659          (h) spouse;
             660          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             661      or
             662          (j) person similar to a person described in Subsections (61)(a) through (i) as
             663      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             664      Administrative Rulemaking Act.
             665          (62) "Mobile home" is as defined in Section 15A-1-302 .
             666          (63) "Mobile telecommunications service" is as defined in the Mobile
             667      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             668          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             669      the technology used, if:
             670          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             671          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             672          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             673      described in Subsection (64)(a)(ii) are not fixed.
             674          (b) "Mobile wireless service" includes a telecommunications service that is provided
             675      by a commercial mobile radio service provider.
             676          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             677      commission may by rule define "commercial mobile radio service provider."
             678          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"


             679      means equipment that is:
             680          (i) primarily and customarily used to provide or increase the ability to move from one
             681      place to another;
             682          (ii) appropriate for use in a:
             683          (A) home; or
             684          (B) motor vehicle; and
             685          (iii) not generally used by persons with normal mobility.
             686          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             687      the equipment described in Subsection (65)(a).
             688          (c) Notwithstanding Subsection (65)(a), "mobility enhancing equipment" does not
             689      include:
             690          (i) a motor vehicle;
             691          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             692      vehicle manufacturer;
             693          (iii) durable medical equipment; or
             694          (iv) a prosthetic device.
             695          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             696      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             697      functions for agreement sales and use taxes other than the seller's obligation under Section
             698      59-12-124 to remit a tax on the seller's own purchases.
             699          (67) "Model 2 seller" means a seller registered under the agreement that:
             700          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             701      to perform the seller's sales tax functions for agreement sales and use taxes; and
             702          (b) notwithstanding Subsection (67)(a), retains responsibility for remitting all of the
             703      sales tax:
             704          (i) collected by the seller; and
             705          (ii) to the appropriate local taxing jurisdiction.
             706          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             707      the agreement that has:
             708          (i) sales in at least five states that are members of the agreement;
             709          (ii) total annual sales revenues of at least $500,000,000;


             710          (iii) a proprietary system that calculates the amount of tax:
             711          (A) for an agreement sales and use tax; and
             712          (B) due to each local taxing jurisdiction; and
             713          (iv) entered into a performance agreement with the governing board of the agreement.
             714          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             715      sellers using the same proprietary system.
             716          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             717      model 1 seller, model 2 seller, or model 3 seller.
             718          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             719          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             720          (72) "Oil sands" means impregnated bituminous sands that:
             721          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             722      other hydrocarbons, or otherwise treated;
             723          (b) yield mixtures of liquid hydrocarbon; and
             724          (c) require further processing other than mechanical blending before becoming finished
             725      petroleum products.
             726          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             727      material that yields petroleum upon heating and distillation.
             728          (74) "Optional computer software maintenance contract" means a computer software
             729      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             730      sale of computer software.
             731          (75) (a) "Other fuels" means products that burn independently to produce heat or
             732      energy.
             733          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             734      personal property.
             735          (76) (a) "Paging service" means a telecommunications service that provides
             736      transmission of a coded radio signal for the purpose of activating a specific pager.
             737          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             738      includes a transmission by message or sound.
             739          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             740          (78) "Pawn transaction" is as defined in Section 13-32a-102 .


             741          (79) (a) "Permanently attached to real property" means that for tangible personal
             742      property attached to real property:
             743          (i) the attachment of the tangible personal property to the real property:
             744          (A) is essential to the use of the tangible personal property; and
             745          (B) suggests that the tangible personal property will remain attached to the real
             746      property in the same place over the useful life of the tangible personal property; or
             747          (ii) if the tangible personal property is detached from the real property, the detachment
             748      would:
             749          (A) cause substantial damage to the tangible personal property; or
             750          (B) require substantial alteration or repair of the real property to which the tangible
             751      personal property is attached.
             752          (b) "Permanently attached to real property" includes:
             753          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             754          (A) essential to the operation of the tangible personal property; and
             755          (B) attached only to facilitate the operation of the tangible personal property;
             756          (ii) a temporary detachment of tangible personal property from real property for a
             757      repair or renovation if the repair or renovation is performed where the tangible personal
             758      property and real property are located; or
             759          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             760      Subsection (79)(c)(iii) or (iv).
             761          (c) "Permanently attached to real property" does not include:
             762          (i) the attachment of portable or movable tangible personal property to real property if
             763      that portable or movable tangible personal property is attached to real property only for:
             764          (A) convenience;
             765          (B) stability; or
             766          (C) for an obvious temporary purpose;
             767          (ii) the detachment of tangible personal property from real property except for the
             768      detachment described in Subsection (79)(b)(ii);
             769          (iii) an attachment of the following tangible personal property to real property if the
             770      attachment to real property is only through a line that supplies water, electricity, gas,
             771      telecommunications, cable, or supplies a similar item as determined by the commission by rule


             772      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             773          (A) a computer;
             774          (B) a telephone;
             775          (C) a television; or
             776          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             777      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             778      Administrative Rulemaking Act; or
             779          (iv) an item listed in Subsection [(117)] (119)(c).
             780          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             781      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             782      municipality, district, or other local governmental entity of the state, or any group or
             783      combination acting as a unit.
             784          (81) "Place of primary use":
             785          (a) for telecommunications service other than mobile telecommunications service,
             786      means the street address representative of where the customer's use of the telecommunications
             787      service primarily occurs, which shall be:
             788          (i) the residential street address of the customer; or
             789          (ii) the primary business street address of the customer; or
             790          (b) for mobile telecommunications service, is as defined in the Mobile
             791      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             792          (82) (a) "Postpaid calling service" means a telecommunications service a person
             793      obtains by making a payment on a call-by-call basis:
             794          (i) through the use of a:
             795          (A) bank card;
             796          (B) credit card;
             797          (C) debit card; or
             798          (D) travel card; or
             799          (ii) by a charge made to a telephone number that is not associated with the origination
             800      or termination of the telecommunications service.
             801          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             802      service, that would be a prepaid wireless calling service if the service were exclusively a


             803      telecommunications service.
             804          (83) "Postproduction" means an activity related to the finishing or duplication of a
             805      medium described in Subsection 59-12-104 (54)(a).
             806          (84) "Potable delivered water" means water that is:
             807          (a) suitable for human consumption; and
             808          (b) delivered through a pipe or similar conduit to the place of retail sale.
             809          [(84)] (85) "Prepaid calling service" means a telecommunications service:
             810          (a) that allows a purchaser access to telecommunications service that is exclusively
             811      telecommunications service;
             812          (b) that:
             813          (i) is paid for in advance; and
             814          (ii) enables the origination of a call using an:
             815          (A) access number; or
             816          (B) authorization code;
             817          (c) that is dialed:
             818          (i) manually; or
             819          (ii) electronically; and
             820          (d) sold in predetermined units or dollars that decline:
             821          (i) by a known amount; and
             822          (ii) with use.
             823          [(85)] (86) "Prepaid wireless calling service" means a telecommunications service:
             824          (a) that provides the right to utilize:
             825          (i) mobile wireless service; and
             826          (ii) other service that is not a telecommunications service, including:
             827          (A) the download of a product transferred electronically;
             828          (B) a content service; or
             829          (C) an ancillary service;
             830          (b) that:
             831          (i) is paid for in advance; and
             832          (ii) enables the origination of a call using an:
             833          (A) access number; or


             834          (B) authorization code;
             835          (c) that is dialed:
             836          (i) manually; or
             837          (ii) electronically; and
             838          (d) sold in predetermined units or dollars that decline:
             839          (i) by a known amount; and
             840          (ii) with use.
             841          [(86)] (87) (a) "Prepared food" means:
             842          (i) food:
             843          (A) sold in a heated state; or
             844          (B) heated by a seller;
             845          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             846      item; or
             847          (iii) except as provided in Subsection [(86)] (87)(c), food sold with an eating utensil
             848      provided by the seller, including a:
             849          (A) plate;
             850          (B) knife;
             851          (C) fork;
             852          (D) spoon;
             853          (E) glass;
             854          (F) cup;
             855          (G) napkin; or
             856          (H) straw.
             857          (b) "Prepared food" does not include:
             858          (i) food that a seller only:
             859          (A) cuts;
             860          (B) repackages; or
             861          (C) pasteurizes; or
             862          (ii) (A) the following:
             863          (I) raw egg;
             864          (II) raw fish;


             865          (III) raw meat;
             866          (IV) raw poultry; or
             867          (V) a food containing an item described in Subsections [(86)] (87)(b)(ii)(A)(I) through
             868      (IV); and
             869          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             870      Food and Drug Administration's Food Code that a consumer cook the items described in
             871      Subsection [(86)] (87)(b)(ii)(A) to prevent food borne illness; or
             872          (iii) the following if sold without eating utensils provided by the seller:
             873          (A) food and food ingredients sold by a seller if the seller's proper primary
             874      classification under the 2002 North American Industry Classification System of the federal
             875      Executive Office of the President, Office of Management and Budget, is manufacturing in
             876      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             877      Manufacturing;
             878          (B) food and food ingredients sold in an unheated state:
             879          (I) by weight or volume; and
             880          (II) as a single item; or
             881          (C) a bakery item, including:
             882          (I) a bagel;
             883          (II) a bar;
             884          (III) a biscuit;
             885          (IV) bread;
             886          (V) a bun;
             887          (VI) a cake;
             888          (VII) a cookie;
             889          (VIII) a croissant;
             890          (IX) a danish;
             891          (X) a donut;
             892          (XI) a muffin;
             893          (XII) a pastry;
             894          (XIII) a pie;
             895          (XIV) a roll;


             896          (XV) a tart;
             897          (XVI) a torte; or
             898          (XVII) a tortilla.
             899          (c) Notwithstanding Subsection [(86)] (87)(a)(iii), an eating utensil provided by the
             900      seller does not include the following used to transport the food:
             901          (i) a container; or
             902          (ii) packaging.
             903          [(87)] (88) "Prescription" means an order, formula, or recipe that is issued:
             904          (a) (i) orally;
             905          (ii) in writing;
             906          (iii) electronically; or
             907          (iv) by any other manner of transmission; and
             908          (b) by a licensed practitioner authorized by the laws of a state.
             909          [(88)] (89) (a) Except as provided in Subsection [(88)] (89)(b)(ii) or (iii), "prewritten
             910      computer software" means computer software that is not designed and developed:
             911          (i) by the author or other creator of the computer software; and
             912          (ii) to the specifications of a specific purchaser.
             913          (b) "Prewritten computer software" includes:
             914          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             915      software is not designed and developed:
             916          (A) by the author or other creator of the computer software; and
             917          (B) to the specifications of a specific purchaser;
             918          (ii) notwithstanding Subsection [(88)] (89)(a), computer software designed and
             919      developed by the author or other creator of the computer software to the specifications of a
             920      specific purchaser if the computer software is sold to a person other than the purchaser; or
             921          (iii) notwithstanding Subsection [(88)] (89)(a) and except as provided in Subsection
             922      [(88)] (89)(c), prewritten computer software or a prewritten portion of prewritten computer
             923      software:
             924          (A) that is modified or enhanced to any degree; and
             925          (B) if the modification or enhancement described in Subsection [(88)] (89)(b)(iii)(A) is
             926      designed and developed to the specifications of a specific purchaser.


             927          (c) Notwithstanding Subsection [(88)] (89)(b)(iii), "prewritten computer software"
             928      does not include a modification or enhancement described in Subsection [(88)] (89)(b)(iii) if
             929      the charges for the modification or enhancement are:
             930          (i) reasonable; and
             931          (ii) separately stated on the invoice or other statement of price provided to the
             932      purchaser.
             933          [(89)] (90) (a) "Private communication service" means a telecommunications service:
             934          (i) that entitles a customer to exclusive or priority use of one or more communications
             935      channels between or among termination points; and
             936          (ii) regardless of the manner in which the one or more communications channels are
             937      connected.
             938          (b) "Private communications service" includes the following provided in connection
             939      with the use of one or more communications channels:
             940          (i) an extension line;
             941          (ii) a station;
             942          (iii) switching capacity; or
             943          (iv) another associated service that is provided in connection with the use of one or
             944      more communications channels as defined in Section 59-12-215 .
             945          [(90)] (91) (a) Except as provided in Subsection [(90)] (91)(b), "product transferred
             946      electronically" means a product transferred electronically that would be subject to a tax under
             947      this chapter if that product was transferred in a manner other than electronically.
             948          (b) "Product transferred electronically" does not include:
             949          (i) an ancillary service;
             950          (ii) computer software; or
             951          (iii) a telecommunications service.
             952          [(91)] (92) (a) "Prosthetic device" means a device that is worn on or in the body to:
             953          (i) artificially replace a missing portion of the body;
             954          (ii) prevent or correct a physical deformity or physical malfunction; or
             955          (iii) support a weak or deformed portion of the body.
             956          (b) "Prosthetic device" includes:
             957          (i) parts used in the repairs or renovation of a prosthetic device;


             958          (ii) replacement parts for a prosthetic device;
             959          (iii) a dental prosthesis; or
             960          (iv) a hearing aid.
             961          (c) "Prosthetic device" does not include:
             962          (i) corrective eyeglasses; or
             963          (ii) contact lenses.
             964          [(92)] (93) (a) "Protective equipment" means an item:
             965          (i) for human wear; and
             966          (ii) that is:
             967          (A) designed as protection:
             968          (I) to the wearer against injury or disease; or
             969          (II) against damage or injury of other persons or property; and
             970          (B) not suitable for general use.
             971          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             972      commission shall make rules:
             973          (i) listing the items that constitute "protective equipment"; and
             974          (ii) that are consistent with the list of items that constitute "protective equipment"
             975      under the agreement.
             976          [(93)] (94) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             977      written or printed matter, other than a photocopy:
             978          (i) regardless of:
             979          (A) characteristics;
             980          (B) copyright;
             981          (C) form;
             982          (D) format;
             983          (E) method of reproduction; or
             984          (F) source; and
             985          (ii) made available in printed or electronic format.
             986          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             987      commission may by rule define the term "photocopy."
             988          [(94)] (95) (a) "Purchase price" and "sales price" mean the total amount of


             989      consideration:
             990          (i) valued in money; and
             991          (ii) for which tangible personal property, a product transferred electronically, or
             992      services are:
             993          (A) sold;
             994          (B) leased; or
             995          (C) rented.
             996          (b) "Purchase price" and "sales price" include:
             997          (i) the seller's cost of the tangible personal property, a product transferred
             998      electronically, or services sold;
             999          (ii) expenses of the seller, including:
             1000          (A) the cost of materials used;
             1001          (B) a labor cost;
             1002          (C) a service cost;
             1003          (D) interest;
             1004          (E) a loss;
             1005          (F) the cost of transportation to the seller; or
             1006          (G) a tax imposed on the seller;
             1007          (iii) a charge by the seller for any service necessary to complete the sale; or
             1008          (iv) consideration a seller receives from a person other than the purchaser if:
             1009          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1010      and
             1011          (II) the consideration described in Subsection [(94)] (95)(b)(iv)(A)(I) is directly related
             1012      to a price reduction or discount on the sale;
             1013          (B) the seller has an obligation to pass the price reduction or discount through to the
             1014      purchaser;
             1015          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1016      the seller at the time of the sale to the purchaser; and
             1017          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1018      seller to claim a price reduction or discount; and
             1019          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,


             1020      coupon, or other documentation with the understanding that the person other than the seller
             1021      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1022          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1023      organization allowed a price reduction or discount, except that a preferred customer card that is
             1024      available to any patron of a seller does not constitute membership in a group or organization
             1025      allowed a price reduction or discount; or
             1026          (III) the price reduction or discount is identified as a third party price reduction or
             1027      discount on the:
             1028          (Aa) invoice the purchaser receives; or
             1029          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1030          (c) "Purchase price" and "sales price" do not include:
             1031          (i) a discount:
             1032          (A) in a form including:
             1033          (I) cash;
             1034          (II) term; or
             1035          (III) coupon;
             1036          (B) that is allowed by a seller;
             1037          (C) taken by a purchaser on a sale; and
             1038          (D) that is not reimbursed by a third party; or
             1039          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1040      provided to the purchaser:
             1041          (A) the following from credit extended on the sale of tangible personal property or
             1042      services:
             1043          (I) a carrying charge;
             1044          (II) a financing charge; or
             1045          (III) an interest charge;
             1046          (B) a delivery charge;
             1047          (C) an installation charge;
             1048          (D) a manufacturer rebate on a motor vehicle; or
             1049          (E) a tax or fee legally imposed directly on the consumer.
             1050          [(95)] (96) "Purchaser" means a person to whom:


             1051          (a) a sale of tangible personal property is made;
             1052          (b) a product is transferred electronically; or
             1053          (c) a service is furnished.
             1054          [(96)] (97) "Regularly rented" means:
             1055          (a) rented to a guest for value three or more times during a calendar year; or
             1056          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1057      value.
             1058          [(97)] (98) "Rental" is as defined in Subsection (54).
             1059          [(98)] (99) (a) Except as provided in Subsection [(98)] (99)(b), "repairs or renovations
             1060      of tangible personal property" means:
             1061          (i) a repair or renovation of tangible personal property that is not permanently attached
             1062      to real property; or
             1063          (ii) attaching tangible personal property or a product transferred electronically to other
             1064      tangible personal property or detaching tangible personal property or a product transferred
             1065      electronically from other tangible personal property if:
             1066          (A) the other tangible personal property to which the tangible personal property or
             1067      product transferred electronically is attached or from which the tangible personal property or
             1068      product transferred electronically is detached is not permanently attached to real property; and
             1069          (B) the attachment of tangible personal property or a product transferred electronically
             1070      to other tangible personal property or detachment of tangible personal property or a product
             1071      transferred electronically from other tangible personal property is made in conjunction with a
             1072      repair or replacement of tangible personal property or a product transferred electronically.
             1073          (b) "Repairs or renovations of tangible personal property" does not include:
             1074          (i) attaching prewritten computer software to other tangible personal property if the
             1075      other tangible personal property to which the prewritten computer software is attached is not
             1076      permanently attached to real property; or
             1077          (ii) detaching prewritten computer software from other tangible personal property if the
             1078      other tangible personal property from which the prewritten computer software is detached is
             1079      not permanently attached to real property.
             1080          [(99)] (100) "Research and development" means the process of inquiry or
             1081      experimentation aimed at the discovery of facts, devices, technologies, or applications and the


             1082      process of preparing those devices, technologies, or applications for marketing.
             1083          [(100)] (101) (a) "Residential telecommunications services" means a
             1084      telecommunications service or an ancillary service that is provided to an individual for personal
             1085      use:
             1086          (i) at a residential address; or
             1087          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1088      service or ancillary service is provided to and paid for by the individual residing at the
             1089      institution rather than the institution.
             1090          (b) For purposes of Subsection [(100)] (101)(a)(i), a residential address includes an:
             1091          (i) apartment; or
             1092          (ii) other individual dwelling unit.
             1093          [(101)] (102) "Residential use" means the use in or around a home, apartment building,
             1094      sleeping quarters, and similar facilities or accommodations.
             1095          [(102)] (103) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             1096      other than:
             1097          (a) resale;
             1098          (b) sublease; or
             1099          (c) subrent.
             1100          [(103)] (104) (a) "Retailer" means any person engaged in a regularly organized
             1101      business in tangible personal property or any other taxable transaction under Subsection
             1102      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             1103          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1104      engaged in the business of selling to users or consumers within the state.
             1105          [(104)] (105) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1106      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1107      Subsection 59-12-103 (1), for consideration.
             1108          (b) "Sale" includes:
             1109          (i) installment and credit sales;
             1110          (ii) any closed transaction constituting a sale;
             1111          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1112      chapter;


             1113          (iv) any transaction if the possession of property is transferred but the seller retains the
             1114      title as security for the payment of the price; and
             1115          (v) any transaction under which right to possession, operation, or use of any article of
             1116      tangible personal property is granted under a lease or contract and the transfer of possession
             1117      would be taxable if an outright sale were made.
             1118          [(105)] (106) "Sale at retail" is as defined in Subsection [(102)] (103).
             1119          [(106)] (107) "Sale-leaseback transaction" means a transaction by which title to
             1120      tangible personal property or a product transferred electronically that is subject to a tax under
             1121      this chapter is transferred:
             1122          (a) by a purchaser-lessee;
             1123          (b) to a lessor;
             1124          (c) for consideration; and
             1125          (d) if:
             1126          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1127      of the tangible personal property or product transferred electronically;
             1128          (ii) the sale of the tangible personal property or product transferred electronically to the
             1129      lessor is intended as a form of financing:
             1130          (A) for the tangible personal property or product transferred electronically; and
             1131          (B) to the purchaser-lessee; and
             1132          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1133      is required to:
             1134          (A) capitalize the tangible personal property or product transferred electronically for
             1135      financial reporting purposes; and
             1136          (B) account for the lease payments as payments made under a financing arrangement.
             1137          [(107)] (108) "Sales price" is as defined in Subsection [(94)] (95).
             1138          [(108)] (109) (a) "Sales relating to schools" means the following sales by, amounts
             1139      paid to, or amounts charged by a school:
             1140          (i) sales that are directly related to the school's educational functions or activities
             1141      including:
             1142          (A) the sale of:
             1143          (I) textbooks;


             1144          (II) textbook fees;
             1145          (III) laboratory fees;
             1146          (IV) laboratory supplies; or
             1147          (V) safety equipment;
             1148          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1149      that:
             1150          (I) a student is specifically required to wear as a condition of participation in a
             1151      school-related event or school-related activity; and
             1152          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1153      place of ordinary clothing;
             1154          (C) sales of the following if the net or gross revenues generated by the sales are
             1155      deposited into a school district fund or school fund dedicated to school meals:
             1156          (I) food and food ingredients; or
             1157          (II) prepared food; or
             1158          (D) transportation charges for official school activities; or
             1159          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1160      event or school-related activity.
             1161          (b) "Sales relating to schools" does not include:
             1162          (i) bookstore sales of items that are not educational materials or supplies;
             1163          (ii) except as provided in Subsection [(108)] (109)(a)(i)(B):
             1164          (A) clothing;
             1165          (B) clothing accessories or equipment;
             1166          (C) protective equipment; or
             1167          (D) sports or recreational equipment; or
             1168          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1169      event or school-related activity if the amounts paid or charged are passed through to a person:
             1170          (A) other than a:
             1171          (I) school;
             1172          (II) nonprofit organization authorized by a school board or a governing body of a
             1173      private school to organize and direct a competitive secondary school activity; or
             1174          (III) nonprofit association authorized by a school board or a governing body of a


             1175      private school to organize and direct a competitive secondary school activity; and
             1176          (B) that is required to collect sales and use taxes under this chapter.
             1177          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1178      commission may make rules defining the term "passed through."
             1179          [(109)] (110) For purposes of this section and Section 59-12-104 , "school":
             1180          (a) means:
             1181          (i) an elementary school or a secondary school that:
             1182          (A) is a:
             1183          (I) public school; or
             1184          (II) private school; and
             1185          (B) provides instruction for one or more grades kindergarten through 12; or
             1186          (ii) a public school district; and
             1187          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1188          [(110)] (111) "Seller" means a person that makes a sale, lease, or rental of:
             1189          (a) tangible personal property;
             1190          (b) a product transferred electronically; or
             1191          (c) a service.
             1192          [(111)] (112) (a) "Semiconductor fabricating, processing, research, or development
             1193      materials" means tangible personal property or a product transferred electronically if the
             1194      tangible personal property or product transferred electronically is:
             1195          (i) used primarily in the process of:
             1196          (A) (I) manufacturing a semiconductor;
             1197          (II) fabricating a semiconductor; or
             1198          (III) research or development of a:
             1199          (Aa) semiconductor; or
             1200          (Bb) semiconductor manufacturing process; or
             1201          (B) maintaining an environment suitable for a semiconductor; or
             1202          (ii) consumed primarily in the process of:
             1203          (A) (I) manufacturing a semiconductor;
             1204          (II) fabricating a semiconductor; or
             1205          (III) research or development of a:


             1206          (Aa) semiconductor; or
             1207          (Bb) semiconductor manufacturing process; or
             1208          (B) maintaining an environment suitable for a semiconductor.
             1209          (b) "Semiconductor fabricating, processing, research, or development materials"
             1210      includes:
             1211          (i) parts used in the repairs or renovations of tangible personal property or a product
             1212      transferred electronically described in Subsection [(111)] (112)(a); or
             1213          (ii) a chemical, catalyst, or other material used to:
             1214          (A) produce or induce in a semiconductor a:
             1215          (I) chemical change; or
             1216          (II) physical change;
             1217          (B) remove impurities from a semiconductor; or
             1218          (C) improve the marketable condition of a semiconductor.
             1219          [(112)] (113) "Senior citizen center" means a facility having the primary purpose of
             1220      providing services to the aged as defined in Section 62A-3-101 .
             1221          [(113)] (114) "Simplified electronic return" means the electronic return:
             1222          (a) described in Section 318(C) of the agreement; and
             1223          (b) approved by the governing board of the agreement.
             1224          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             1225      producing electricity.
             1226          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             1227          (i) designed for human use; and
             1228          (ii) that is:
             1229          (A) worn in conjunction with:
             1230          (I) an athletic activity; or
             1231          (II) a recreational activity; and
             1232          (B) not suitable for general use.
             1233          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1234      commission shall make rules:
             1235          (i) listing the items that constitute "sports or recreational equipment"; and
             1236          (ii) that are consistent with the list of items that constitute "sports or recreational


             1237      equipment" under the agreement.
             1238          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             1239          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             1240      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1241      except sale in the regular course of business.
             1242          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             1243      personal property" means personal property that:
             1244          (i) may be:
             1245          (A) seen;
             1246          (B) weighed;
             1247          (C) measured;
             1248          (D) felt; or
             1249          (E) touched; or
             1250          (ii) is in any manner perceptible to the senses.
             1251          (b) "Tangible personal property" includes:
             1252          (i) electricity;
             1253          (ii) water;
             1254          (iii) gas;
             1255          (iv) steam; or
             1256          (v) prewritten computer software, regardless of the manner in which the prewritten
             1257      computer software is transferred.
             1258          (c) "Tangible personal property" includes the following regardless of whether the item
             1259      is attached to real property:
             1260          (i) a dishwasher;
             1261          (ii) a dryer;
             1262          (iii) a freezer;
             1263          (iv) a microwave;
             1264          (v) a refrigerator;
             1265          (vi) a stove;
             1266          (vii) a washer; or
             1267          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by


             1268      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1269      Rulemaking Act.
             1270          (d) "Tangible personal property" does not include a product that is transferred
             1271      electronically.
             1272          (e) "Tangible personal property" does not include the following if attached to real
             1273      property, regardless of whether the attachment to real property is only through a line that
             1274      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1275      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1276      Rulemaking Act:
             1277          (i) a hot water heater;
             1278          (ii) a water filtration system; or
             1279          (iii) a water softener system.
             1280          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1281      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             1282      leased primarily to enable or facilitate one or more of the following to function:
             1283          (i) telecommunications switching or routing equipment, machinery, or software; or
             1284          (ii) telecommunications transmission equipment, machinery, or software.
             1285          (b) The following apply to Subsection [(119)] (120)(a):
             1286          (i) a pole;
             1287          (ii) software;
             1288          (iii) a supplementary power supply;
             1289          (iv) temperature or environmental equipment or machinery;
             1290          (v) test equipment;
             1291          (vi) a tower; or
             1292          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1293      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             1294      accordance with Subsection [(119)] (120)(c).
             1295          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1296      commission may by rule define what constitutes equipment, machinery, or software that
             1297      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             1298          [(120)] (121) "Telecommunications equipment, machinery, or software required for


             1299      911 service" means equipment, machinery, or software that is required to comply with 47
             1300      C.F.R. Sec. 20.18.
             1301          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             1302      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1303      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1304      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1305      of the following:
             1306          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1307          (b) telecommunications switching or routing equipment, machinery, or software; or
             1308          (c) telecommunications transmission equipment, machinery, or software.
             1309          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             1310      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1311      point, or among or between points.
             1312          (b) "Telecommunications service" includes:
             1313          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1314      processing application is used to act:
             1315          (A) on the code, form, or protocol of the content;
             1316          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1317          (C) regardless of whether the service:
             1318          (I) is referred to as voice over Internet protocol service; or
             1319          (II) is classified by the Federal Communications Commission as enhanced or value
             1320      added;
             1321          (ii) an 800 service;
             1322          (iii) a 900 service;
             1323          (iv) a fixed wireless service;
             1324          (v) a mobile wireless service;
             1325          (vi) a postpaid calling service;
             1326          (vii) a prepaid calling service;
             1327          (viii) a prepaid wireless calling service; or
             1328          (ix) a private communications service.
             1329          (c) "Telecommunications service" does not include:


             1330          (i) advertising, including directory advertising;
             1331          (ii) an ancillary service;
             1332          (iii) a billing and collection service provided to a third party;
             1333          (iv) a data processing and information service if:
             1334          (A) the data processing and information service allows data to be:
             1335          (I) (Aa) acquired;
             1336          (Bb) generated;
             1337          (Cc) processed;
             1338          (Dd) retrieved; or
             1339          (Ee) stored; and
             1340          (II) delivered by an electronic transmission to a purchaser; and
             1341          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1342      or information;
             1343          (v) installation or maintenance of the following on a customer's premises:
             1344          (A) equipment; or
             1345          (B) wiring;
             1346          (vi) Internet access service;
             1347          (vii) a paging service;
             1348          (viii) a product transferred electronically, including:
             1349          (A) music;
             1350          (B) reading material;
             1351          (C) a ring tone;
             1352          (D) software; or
             1353          (E) video;
             1354          (ix) a radio and television audio and video programming service:
             1355          (A) regardless of the medium; and
             1356          (B) including:
             1357          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1358      programming service by a programming service provider;
             1359          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1360          (III) audio and video programming services delivered by a commercial mobile radio


             1361      service provider as defined in 47 C.F.R. Sec. 20.3;
             1362          (x) a value-added nonvoice data service; or
             1363          (xi) tangible personal property.
             1364          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             1365          (i) owns, controls, operates, or manages a telecommunications service; and
             1366          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             1367      with or resale to any person of the telecommunications service.
             1368          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             1369      provider whether or not the Public Service Commission of Utah regulates:
             1370          (i) that person; or
             1371          (ii) the telecommunications service that the person owns, controls, operates, or
             1372      manages.
             1373          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             1374      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             1375      leased primarily for switching or routing:
             1376          (i) an ancillary service;
             1377          (ii) data communications;
             1378          (iii) voice communications; or
             1379          (iv) telecommunications service.
             1380          (b) The following apply to Subsection [(124)] (125)(a):
             1381          (i) a bridge;
             1382          (ii) a computer;
             1383          (iii) a cross connect;
             1384          (iv) a modem;
             1385          (v) a multiplexer;
             1386          (vi) plug in circuitry;
             1387          (vii) a router;
             1388          (viii) software;
             1389          (ix) a switch; or
             1390          (x) equipment, machinery, or software that functions similarly to an item listed in
             1391      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in


             1392      accordance with Subsection [(124)] (125)(c).
             1393          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1394      commission may by rule define what constitutes equipment, machinery, or software that
             1395      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             1396          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             1397      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             1398      leased primarily for sending, receiving, or transporting:
             1399          (i) an ancillary service;
             1400          (ii) data communications;
             1401          (iii) voice communications; or
             1402          (iv) telecommunications service.
             1403          (b) The following apply to Subsection [(125)] (126)(a):
             1404          (i) an amplifier;
             1405          (ii) a cable;
             1406          (iii) a closure;
             1407          (iv) a conduit;
             1408          (v) a controller;
             1409          (vi) a duplexer;
             1410          (vii) a filter;
             1411          (viii) an input device;
             1412          (ix) an input/output device;
             1413          (x) an insulator;
             1414          (xi) microwave machinery or equipment;
             1415          (xii) an oscillator;
             1416          (xiii) an output device;
             1417          (xiv) a pedestal;
             1418          (xv) a power converter;
             1419          (xvi) a power supply;
             1420          (xvii) a radio channel;
             1421          (xviii) a radio receiver;
             1422          (xix) a radio transmitter;


             1423          (xx) a repeater;
             1424          (xxi) software;
             1425          (xxii) a terminal;
             1426          (xxiii) a timing unit;
             1427          (xxiv) a transformer;
             1428          (xxv) a wire; or
             1429          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1430      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             1431      accordance with Subsection [(125)] (126)(c).
             1432          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1433      commission may by rule define what constitutes equipment, machinery, or software that
             1434      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             1435          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             1436      printed material that is required for a course:
             1437          (i) offered by an institution of higher education; and
             1438          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1439          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1440          [(127)] (128) "Tobacco" means:
             1441          (a) a cigarette;
             1442          (b) a cigar;
             1443          (c) chewing tobacco;
             1444          (d) pipe tobacco; or
             1445          (e) any other item that contains tobacco.
             1446          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             1447      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1448      operate the amusement device, skill device, or ride device.
             1449          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             1450      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1451      incident to the ownership or the leasing of that tangible personal property, product transferred
             1452      electronically, or service.
             1453          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal


             1454      property, a product transferred electronically, or a service in the regular course of business and
             1455      held for resale.
             1456          [(130)] (131) "Value-added nonvoice data service" means a service:
             1457          (a) that otherwise meets the definition of a telecommunications service except that a
             1458      computer processing application is used to act primarily for a purpose other than conveyance,
             1459      routing, or transmission; and
             1460          (b) with respect to which a computer processing application is used to act on data or
             1461      information:
             1462          (i) code;
             1463          (ii) content;
             1464          (iii) form; or
             1465          (iv) protocol.
             1466          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             1467      that are required to be titled, registered, or titled and registered:
             1468          (i) an aircraft as defined in Section 72-10-102 ;
             1469          (ii) a vehicle as defined in Section 41-1a-102 ;
             1470          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1471          (iv) a vessel as defined in Section 41-1a-102 .
             1472          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1473          (i) a vehicle described in Subsection [(131)] (132)(a); or
             1474          (ii) (A) a locomotive;
             1475          (B) a freight car;
             1476          (C) railroad work equipment; or
             1477          (D) other railroad rolling stock.
             1478          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             1479      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             1480          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             1481          (i) is offered in connection with one or more telecommunications services; and
             1482          (ii) offers an advanced calling feature that allows a customer to:
             1483          (A) identify a caller; and
             1484          (B) manage multiple calls and call connections.


             1485          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1486      conference bridging service.
             1487          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             1488      customer to receive, send, or store a recorded message.
             1489          (b) "Voice mail service" does not include a vertical service that a customer is required
             1490      to have in order to utilize a voice mail service.
             1491          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             1492      facility" means a facility that generates electricity:
             1493          (i) using as the primary source of energy waste materials that would be placed in a
             1494      landfill or refuse pit if it were not used to generate electricity, including:
             1495          (A) tires;
             1496          (B) waste coal;
             1497          (C) oil shale; or
             1498          (D) municipal solid waste; and
             1499          (ii) in amounts greater than actually required for the operation of the facility.
             1500          (b) "Waste energy facility" does not include a facility that incinerates:
             1501          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1502          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1503          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1504          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             1505      electricity.
             1506          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1507      geographic location by the United States Postal Service.
             1508          Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1509           59-12-102 (Effective 07/01/14). Definitions.
             1510          As used in this chapter:
             1511          (1) "800 service" means a telecommunications service that:
             1512          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1513          (b) is typically marketed:
             1514          (i) under the name 800 toll-free calling;
             1515          (ii) under the name 855 toll-free calling;


             1516          (iii) under the name 866 toll-free calling;
             1517          (iv) under the name 877 toll-free calling;
             1518          (v) under the name 888 toll-free calling; or
             1519          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1520      Federal Communications Commission.
             1521          (2) (a) "900 service" means an inbound toll telecommunications service that:
             1522          (i) a subscriber purchases;
             1523          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1524      the subscriber's:
             1525          (A) prerecorded announcement; or
             1526          (B) live service; and
             1527          (iii) is typically marketed:
             1528          (A) under the name 900 service; or
             1529          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1530      Communications Commission.
             1531          (b) "900 service" does not include a charge for:
             1532          (i) a collection service a seller of a telecommunications service provides to a
             1533      subscriber; or
             1534          (ii) the following a subscriber sells to the subscriber's customer:
             1535          (A) a product; or
             1536          (B) a service.
             1537          (3) (a) "Admission or user fees" includes season passes.
             1538          (b) "Admission or user fees" does not include annual membership dues to private
             1539      organizations.
             1540          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1541      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1542      Agreement after November 12, 2002.
             1543          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1544          (a) listed under Subsection (6); and
             1545          (b) that are imposed within a local taxing jurisdiction.
             1546          (6) "Agreement sales and use tax" means a tax imposed under:


             1547          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1548          (b) Subsection 59-12-103 (2)(b)(i);
             1549          (c) Subsection 59-12-103 (2)(c)(i);
             1550          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1551          (e) Section 59-12-204 ;
             1552          (f) Section 59-12-401 ;
             1553          (g) Section 59-12-402 ;
             1554          (h) Section 59-12-703 ;
             1555          (i) Section 59-12-802 ;
             1556          (j) Section 59-12-804 ;
             1557          (k) Section 59-12-1102 ;
             1558          (l) Section 59-12-1302 ;
             1559          (m) Section 59-12-1402 ;
             1560          (n) Section 59-12-1802 ;
             1561          (o) Section 59-12-2003 ;
             1562          (p) Section 59-12-2103 ;
             1563          (q) Section 59-12-2213 ;
             1564          (r) Section 59-12-2214 ;
             1565          (s) Section 59-12-2215 ;
             1566          (t) Section 59-12-2216 ;
             1567          (u) Section 59-12-2217 ; or
             1568          (v) Section 59-12-2218 .
             1569          (7) "Aircraft" is as defined in Section 72-10-102 .
             1570          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1571          (a) except for:
             1572          (i) an airline as defined in Section 59-2-102 ; or
             1573          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1574      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1575      state, of an airline; and
             1576          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1577      whether the business entity performs the following in this state:


             1578          (i) check, diagnose, overhaul, and repair:
             1579          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1580          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1581          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1582      engine;
             1583          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1584      aircraft:
             1585          (A) an inspection;
             1586          (B) a repair, including a structural repair or modification;
             1587          (C) changing landing gear; and
             1588          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1589          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1590      completely apply new paint to the fixed wing turbine powered aircraft; and
             1591          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1592      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1593      authority that certifies the fixed wing turbine powered aircraft.
             1594          (9) "Alcoholic beverage" means a beverage that:
             1595          (a) is suitable for human consumption; and
             1596          (b) contains .5% or more alcohol by volume.
             1597          (10) "Alternative energy" means:
             1598          (a) biomass energy;
             1599          (b) geothermal energy;
             1600          (c) hydroelectric energy;
             1601          (d) solar energy;
             1602          (e) wind energy; or
             1603          (f) energy that is derived from:
             1604          (i) coal-to-liquids;
             1605          (ii) nuclear fuel;
             1606          (iii) oil-impregnated diatomaceous earth;
             1607          (iv) oil sands;
             1608          (v) oil shale; or


             1609          (vi) petroleum coke.
             1610          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1611      facility" means a facility that:
             1612          (i) uses alternative energy to produce electricity; and
             1613          (ii) has a production capacity of [2] two megawatts or greater.
             1614          (b) A facility is an alternative energy electricity production facility regardless of
             1615      whether the facility is:
             1616          (i) connected to an electric grid; or
             1617          (ii) located on the premises of an electricity consumer.
             1618          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1619      provision of telecommunications service.
             1620          (b) "Ancillary service" includes:
             1621          (i) a conference bridging service;
             1622          (ii) a detailed communications billing service;
             1623          (iii) directory assistance;
             1624          (iv) a vertical service; or
             1625          (v) a voice mail service.
             1626          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             1627          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1628      device that is started and stopped by an individual:
             1629          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1630      device, skill device, or ride device; and
             1631          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1632      or ride device.
             1633          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1634      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1635      by an individual:
             1636          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1637      property; and
             1638          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1639      property.


             1640          (16) "Authorized carrier" means:
             1641          (a) in the case of vehicles operated over public highways, the holder of credentials
             1642      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1643      Plan and the International Fuel Tax Agreement;
             1644          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1645      certificate or air carrier's operating certificate; or
             1646          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1647      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1648          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1649      following that is used as the primary source of energy to produce fuel or electricity:
             1650          (i) material from a plant or tree; or
             1651          (ii) other organic matter that is available on a renewable basis, including:
             1652          (A) slash and brush from forests and woodlands;
             1653          (B) animal waste;
             1654          (C) methane produced:
             1655          (I) at landfills; or
             1656          (II) as a byproduct of the treatment of wastewater residuals;
             1657          (D) aquatic plants; and
             1658          (E) agricultural products.
             1659          (b) "Biomass energy" does not include:
             1660          (i) black liquor;
             1661          (ii) treated woods; or
             1662          (iii) biomass from municipal solid waste other than methane produced:
             1663          (A) at landfills; or
             1664          (B) as a byproduct of the treatment of wastewater residuals.
             1665          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1666      property, products, or services if the tangible personal property, products, or services are:
             1667          (i) distinct and identifiable; and
             1668          (ii) sold for one nonitemized price.
             1669          (b) "Bundled transaction" does not include:
             1670          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on


             1671      the basis of the selection by the purchaser of the items of tangible personal property included in
             1672      the transaction;
             1673          (ii) the sale of real property;
             1674          (iii) the sale of services to real property;
             1675          (iv) the retail sale of tangible personal property and a service if:
             1676          (A) the tangible personal property:
             1677          (I) is essential to the use of the service; and
             1678          (II) is provided exclusively in connection with the service; and
             1679          (B) the service is the true object of the transaction;
             1680          (v) the retail sale of two services if:
             1681          (A) one service is provided that is essential to the use or receipt of a second service;
             1682          (B) the first service is provided exclusively in connection with the second service; and
             1683          (C) the second service is the true object of the transaction;
             1684          (vi) a transaction that includes tangible personal property or a product subject to
             1685      taxation under this chapter and tangible personal property or a product that is not subject to
             1686      taxation under this chapter if the:
             1687          (A) seller's purchase price of the tangible personal property or product subject to
             1688      taxation under this chapter is de minimis; or
             1689          (B) seller's sales price of the tangible personal property or product subject to taxation
             1690      under this chapter is de minimis; and
             1691          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1692      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1693          (A) that retail sale includes:
             1694          (I) food and food ingredients;
             1695          (II) a drug;
             1696          (III) durable medical equipment;
             1697          (IV) mobility enhancing equipment;
             1698          (V) an over-the-counter drug;
             1699          (VI) a prosthetic device; or
             1700          (VII) a medical supply; and
             1701          (B) subject to Subsection (18)(f):


             1702          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1703      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1704          (II) the seller's sales price of the tangible personal property subject to taxation under
             1705      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1706          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             1707      service that is distinct and identifiable does not include:
             1708          (A) packaging that:
             1709          (I) accompanies the sale of the tangible personal property, product, or service; and
             1710          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             1711      service;
             1712          (B) tangible personal property, a product, or a service provided free of charge with the
             1713      purchase of another item of tangible personal property, a product, or a service; or
             1714          (C) an item of tangible personal property, a product, or a service included in the
             1715      definition of "purchase price."
             1716          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             1717      product, or a service is provided free of charge with the purchase of another item of tangible
             1718      personal property, a product, or a service if the sales price of the purchased item of tangible
             1719      personal property, product, or service does not vary depending on the inclusion of the tangible
             1720      personal property, product, or service provided free of charge.
             1721          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             1722      does not include a price that is separately identified by tangible personal property, product, or
             1723      service on the following, regardless of whether the following is in paper format or electronic
             1724      format:
             1725          (A) a binding sales document; or
             1726          (B) another supporting sales-related document that is available to a purchaser.
             1727          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             1728      supporting sales-related document that is available to a purchaser includes:
             1729          (A) a bill of sale;
             1730          (B) a contract;
             1731          (C) an invoice;
             1732          (D) a lease agreement;


             1733          (E) a periodic notice of rates and services;
             1734          (F) a price list;
             1735          (G) a rate card;
             1736          (H) a receipt; or
             1737          (I) a service agreement.
             1738          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             1739      property or a product subject to taxation under this chapter is de minimis if:
             1740          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1741      less of the seller's total purchase price of the bundled transaction; or
             1742          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1743      the seller's total sales price of the bundled transaction.
             1744          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             1745          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             1746      purchase price or sales price of the tangible personal property or product subject to taxation
             1747      under this chapter is de minimis; and
             1748          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1749      to determine if the purchase price or sales price of the tangible personal property or product
             1750      subject to taxation under this chapter is de minimis.
             1751          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             1752      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1753          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             1754      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1755      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             1756      price of that retail sale.
             1757          (19) "Certified automated system" means software certified by the governing board of
             1758      the agreement that:
             1759          (a) calculates the agreement sales and use tax imposed within a local taxing
             1760      jurisdiction:
             1761          (i) on a transaction; and
             1762          (ii) in the states that are members of the agreement;
             1763          (b) determines the amount of agreement sales and use tax to remit to a state that is a


             1764      member of the agreement; and
             1765          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             1766          (20) "Certified service provider" means an agent certified:
             1767          (a) by the governing board of the agreement; and
             1768          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1769      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             1770      own purchases.
             1771          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             1772      suitable for general use.
             1773          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1774      commission shall make rules:
             1775          (i) listing the items that constitute "clothing"; and
             1776          (ii) that are consistent with the list of items that constitute "clothing" under the
             1777      agreement.
             1778          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1779          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1780      fuels that does not constitute industrial use under Subsection (51) or residential use under
             1781      Subsection (101).
             1782          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             1783      transporting passengers, freight, merchandise, or other property for hire within this state.
             1784          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1785      traveling to or from that person's place of employment, transports a passenger to or from the
             1786      passenger's place of employment.
             1787          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             1788      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1789      constitutes a person's place of employment.
             1790          (25) "Component part" includes:
             1791          (a) poultry, dairy, and other livestock feed, and their components;
             1792          (b) baling ties and twine used in the baling of hay and straw;
             1793          (c) fuel used for providing temperature control of orchards and commercial
             1794      greenhouses doing a majority of their business in wholesale sales, and for providing power for


             1795      off-highway type farm machinery; and
             1796          (d) feed, seeds, and seedlings.
             1797          (26) "Computer" means an electronic device that accepts information:
             1798          (a) (i) in digital form; or
             1799          (ii) in a form similar to digital form; and
             1800          (b) manipulates that information for a result based on a sequence of instructions.
             1801          (27) "Computer software" means a set of coded instructions designed to cause:
             1802          (a) a computer to perform a task; or
             1803          (b) automatic data processing equipment to perform a task.
             1804          (28) "Computer software maintenance contract" means a contract that obligates a seller
             1805      of computer software to provide a customer with:
             1806          (a) future updates or upgrades to computer software;
             1807          (b) support services with respect to computer software; or
             1808          (c) a combination of Subsections (28)(a) and (b).
             1809          (29) (a) "Conference bridging service" means an ancillary service that links two or
             1810      more participants of an audio conference call or video conference call.
             1811          (b) "Conference bridging service" may include providing a telephone number as part of
             1812      the ancillary service described in Subsection (29)(a).
             1813          (c) "Conference bridging service" does not include a telecommunications service used
             1814      to reach the ancillary service described in Subsection (29)(a).
             1815          (30) "Construction materials" means any tangible personal property that will be
             1816      converted into real property.
             1817          (31) "Delivered electronically" means delivered to a purchaser by means other than
             1818      tangible storage media.
             1819          (32) (a) "Delivery charge" means a charge:
             1820          (i) by a seller of:
             1821          (A) tangible personal property;
             1822          (B) a product transferred electronically; or
             1823          (C) services; and
             1824          (ii) for preparation and delivery of the tangible personal property, product transferred
             1825      electronically, or services described in Subsection (32)(a)(i) to a location designated by the


             1826      purchaser.
             1827          (b) "Delivery charge" includes a charge for the following:
             1828          (i) transportation;
             1829          (ii) shipping;
             1830          (iii) postage;
             1831          (iv) handling;
             1832          (v) crating; or
             1833          (vi) packing.
             1834          (33) "Detailed telecommunications billing service" means an ancillary service of
             1835      separately stating information pertaining to individual calls on a customer's billing statement.
             1836          (34) "Dietary supplement" means a product, other than tobacco, that:
             1837          (a) is intended to supplement the diet;
             1838          (b) contains one or more of the following dietary ingredients:
             1839          (i) a vitamin;
             1840          (ii) a mineral;
             1841          (iii) an herb or other botanical;
             1842          (iv) an amino acid;
             1843          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1844      dietary intake; or
             1845          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1846      described in Subsections (34)(b)(i) through (v);
             1847          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             1848          (A) tablet form;
             1849          (B) capsule form;
             1850          (C) powder form;
             1851          (D) softgel form;
             1852          (E) gelcap form; or
             1853          (F) liquid form; or
             1854          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             1855      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             1856          (A) as conventional food; and


             1857          (B) for use as a sole item of:
             1858          (I) a meal; or
             1859          (II) the diet; and
             1860          (d) is required to be labeled as a dietary supplement:
             1861          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1862          (ii) as required by 21 C.F.R. Sec. 101.36.
             1863          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             1864      mail or other delivery service:
             1865          (i) to:
             1866          (A) a mass audience; or
             1867          (B) addressees on a mailing list provided:
             1868          (I) by a purchaser of the mailing list; or
             1869          (II) at the discretion of the purchaser of the mailing list; and
             1870          (ii) if the cost of the printed material is not billed directly to the recipients.
             1871          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1872      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1873          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1874      single address.
             1875          (36) "Directory assistance" means an ancillary service of providing:
             1876          (a) address information; or
             1877          (b) telephone number information.
             1878          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             1879      or supplies that:
             1880          (i) cannot withstand repeated use; and
             1881          (ii) are purchased by, for, or on behalf of a person other than:
             1882          (A) a health care facility as defined in Section 26-21-2 ;
             1883          (B) a health care provider as defined in Section 78B-3-403 ;
             1884          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             1885          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             1886          (b) "Disposable home medical equipment or supplies" does not include:
             1887          (i) a drug;


             1888          (ii) durable medical equipment;
             1889          (iii) a hearing aid;
             1890          (iv) a hearing aid accessory;
             1891          (v) mobility enhancing equipment; or
             1892          (vi) tangible personal property used to correct impaired vision, including:
             1893          (A) eyeglasses; or
             1894          (B) contact lenses.
             1895          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1896      commission may by rule define what constitutes medical equipment or supplies.
             1897          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1898      compound, substance, or preparation that is:
             1899          (i) recognized in:
             1900          (A) the official United States Pharmacopoeia;
             1901          (B) the official Homeopathic Pharmacopoeia of the United States;
             1902          (C) the official National Formulary; or
             1903          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             1904          (ii) intended for use in the:
             1905          (A) diagnosis of disease;
             1906          (B) cure of disease;
             1907          (C) mitigation of disease;
             1908          (D) treatment of disease; or
             1909          (E) prevention of disease; or
             1910          (iii) intended to affect:
             1911          (A) the structure of the body; or
             1912          (B) any function of the body.
             1913          (b) "Drug" does not include:
             1914          (i) food and food ingredients;
             1915          (ii) a dietary supplement;
             1916          (iii) an alcoholic beverage; or
             1917          (iv) a prosthetic device.
             1918          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means


             1919      equipment that:
             1920          (i) can withstand repeated use;
             1921          (ii) is primarily and customarily used to serve a medical purpose;
             1922          (iii) generally is not useful to a person in the absence of illness or injury; and
             1923          (iv) is not worn in or on the body.
             1924          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1925      equipment described in Subsection (39)(a).
             1926          (c) Notwithstanding Subsection (39)(a), "durable medical equipment" does not include
             1927      mobility enhancing equipment.
             1928          (40) "Electronic" means:
             1929          (a) relating to technology; and
             1930          (b) having:
             1931          (i) electrical capabilities;
             1932          (ii) digital capabilities;
             1933          (iii) magnetic capabilities;
             1934          (iv) wireless capabilities;
             1935          (v) optical capabilities;
             1936          (vi) electromagnetic capabilities; or
             1937          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             1938          (41) "Employee" is as defined in Section 59-10-401 .
             1939          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             1940          (a) rail for the use of public transit; or
             1941          (b) a separate right-of-way for the use of public transit.
             1942          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             1943          (a) is powered by turbine engines;
             1944          (b) operates on jet fuel; and
             1945          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1946          (44) "Fixed wireless service" means a telecommunications service that provides radio
             1947      communication between fixed points.
             1948          (45) (a) "Food and food ingredients" means substances:
             1949          (i) regardless of whether the substances are in:


             1950          (A) liquid form;
             1951          (B) concentrated form;
             1952          (C) solid form;
             1953          (D) frozen form;
             1954          (E) dried form; or
             1955          (F) dehydrated form; and
             1956          (ii) that are:
             1957          (A) sold for:
             1958          (I) ingestion by humans; or
             1959          (II) chewing by humans; and
             1960          (B) consumed for the substance's:
             1961          (I) taste; or
             1962          (II) nutritional value.
             1963          (b) "Food and food ingredients" includes an item described in Subsection [(86)]
             1964      (87)(b)(iii).
             1965          (c) "Food and food ingredients" does not include:
             1966          (i) an alcoholic beverage;
             1967          (ii) tobacco; or
             1968          (iii) prepared food.
             1969          (46) (a) "Fundraising sales" means sales:
             1970          (i) (A) made by a school; or
             1971          (B) made by a school student;
             1972          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1973      materials, or provide transportation; and
             1974          (iii) that are part of an officially sanctioned school activity.
             1975          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             1976      means a school activity:
             1977          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1978      district governing the authorization and supervision of fundraising activities;
             1979          (ii) that does not directly or indirectly compensate an individual teacher or other
             1980      educational personnel by direct payment, commissions, or payment in kind; and


             1981          (iii) the net or gross revenues from which are deposited in a dedicated account
             1982      controlled by the school or school district.
             1983          (47) "Geothermal energy" means energy contained in heat that continuously flows
             1984      outward from the earth that is used as the sole source of energy to produce electricity.
             1985          (48) "Governing board of the agreement" means the governing board of the agreement
             1986      that is:
             1987          (a) authorized to administer the agreement; and
             1988          (b) established in accordance with the agreement.
             1989          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             1990          (i) the executive branch of the state, including all departments, institutions, boards,
             1991      divisions, bureaus, offices, commissions, and committees;
             1992          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             1993      Office of the Court Administrator, and similar administrative units in the judicial branch;
             1994          (iii) the legislative branch of the state, including the House of Representatives, the
             1995      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             1996      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             1997      Analyst;
             1998          (iv) the National Guard;
             1999          (v) an independent entity as defined in Section 63E-1-102 ; or
             2000          (vi) a political subdivision as defined in Section 17B-1-102 .
             2001          (b) "Governmental entity" does not include the state systems of public and higher
             2002      education, including:
             2003          (i) a college campus of the Utah College of Applied Technology;
             2004          (ii) a school;
             2005          (iii) the State Board of Education;
             2006          (iv) the State Board of Regents; or
             2007          (v) an institution of higher education.
             2008          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             2009      electricity.
             2010          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             2011      other fuels:


             2012          (a) in mining or extraction of minerals;
             2013          (b) in agricultural operations to produce an agricultural product up to the time of
             2014      harvest or placing the agricultural product into a storage facility, including:
             2015          (i) commercial greenhouses;
             2016          (ii) irrigation pumps;
             2017          (iii) farm machinery;
             2018          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             2019      registered under Title 41, Chapter 1a, Part 2, Registration; and
             2020          (v) other farming activities;
             2021          (c) in manufacturing tangible personal property at an establishment described in SIC
             2022      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2023      Executive Office of the President, Office of Management and Budget;
             2024          (d) by a scrap recycler if:
             2025          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2026      one or more of the following items into prepared grades of processed materials for use in new
             2027      products:
             2028          (A) iron;
             2029          (B) steel;
             2030          (C) nonferrous metal;
             2031          (D) paper;
             2032          (E) glass;
             2033          (F) plastic;
             2034          (G) textile; or
             2035          (H) rubber; and
             2036          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             2037      nonrecycled materials; or
             2038          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2039      cogeneration facility as defined in Section 54-2-1 .
             2040          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             2041      for installing:
             2042          (i) tangible personal property; or


             2043          (ii) a product transferred electronically.
             2044          (b) "Installation charge" does not include a charge for:
             2045          (i) repairs or renovations of:
             2046          (A) tangible personal property; or
             2047          (B) a product transferred electronically; or
             2048          (ii) attaching tangible personal property or a product transferred electronically:
             2049          (A) to other tangible personal property; and
             2050          (B) as part of a manufacturing or fabrication process.
             2051          (53) "Institution of higher education" means an institution of higher education listed in
             2052      Section 53B-2-101 .
             2053          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2054      personal property or a product transferred electronically for:
             2055          (i) (A) a fixed term; or
             2056          (B) an indeterminate term; and
             2057          (ii) consideration.
             2058          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2059      amount of consideration may be increased or decreased by reference to the amount realized
             2060      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2061      Code.
             2062          (c) "Lease" or "rental" does not include:
             2063          (i) a transfer of possession or control of property under a security agreement or
             2064      deferred payment plan that requires the transfer of title upon completion of the required
             2065      payments;
             2066          (ii) a transfer of possession or control of property under an agreement that requires the
             2067      transfer of title:
             2068          (A) upon completion of required payments; and
             2069          (B) if the payment of an option price does not exceed the greater of:
             2070          (I) $100; or
             2071          (II) 1% of the total required payments; or
             2072          (iii) providing tangible personal property along with an operator for a fixed period of
             2073      time or an indeterminate period of time if the operator is necessary for equipment to perform as


             2074      designed.
             2075          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             2076      perform as designed if the operator's duties exceed the:
             2077          (i) set-up of tangible personal property;
             2078          (ii) maintenance of tangible personal property; or
             2079          (iii) inspection of tangible personal property.
             2080          (55) "Life science establishment" means an establishment in this state that is classified
             2081      under the following NAICS codes of the 2007 North American Industry Classification System
             2082      of the federal Executive Office of the President, Office of Management and Budget:
             2083          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2084          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2085      Manufacturing; or
             2086          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2087          (56) "Life science research and development facility" means a facility owned, leased,
             2088      or rented by a life science establishment if research and development is performed in 51% or
             2089      more of the total area of the facility.
             2090          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             2091      if the tangible storage media is not physically transferred to the purchaser.
             2092          (58) "Local taxing jurisdiction" means a:
             2093          (a) county that is authorized to impose an agreement sales and use tax;
             2094          (b) city that is authorized to impose an agreement sales and use tax; or
             2095          (c) town that is authorized to impose an agreement sales and use tax.
             2096          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             2097          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2098          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2099      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2100      Management and Budget;
             2101          (b) a scrap recycler if:
             2102          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2103      one or more of the following items into prepared grades of processed materials for use in new
             2104      products:


             2105          (A) iron;
             2106          (B) steel;
             2107          (C) nonferrous metal;
             2108          (D) paper;
             2109          (E) glass;
             2110          (F) plastic;
             2111          (G) textile; or
             2112          (H) rubber; and
             2113          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             2114      nonrecycled materials; or
             2115          (c) a cogeneration facility as defined in Section 54-2-1 .
             2116          (61) "Member of the immediate family of the producer" means a person who is related
             2117      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2118          (a) child or stepchild, regardless of whether the child or stepchild is:
             2119          (i) an adopted child or adopted stepchild; or
             2120          (ii) a foster child or foster stepchild;
             2121          (b) grandchild or stepgrandchild;
             2122          (c) grandparent or stepgrandparent;
             2123          (d) nephew or stepnephew;
             2124          (e) niece or stepniece;
             2125          (f) parent or stepparent;
             2126          (g) sibling or stepsibling;
             2127          (h) spouse;
             2128          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             2129      or
             2130          (j) person similar to a person described in Subsections (61)(a) through (i) as
             2131      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2132      Administrative Rulemaking Act.
             2133          (62) "Mobile home" is as defined in Section 15A-1-302 .
             2134          (63) "Mobile telecommunications service" is as defined in the Mobile
             2135      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.


             2136          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2137      the technology used, if:
             2138          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2139          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2140          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             2141      described in Subsection (64)(a)(ii) are not fixed.
             2142          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2143      by a commercial mobile radio service provider.
             2144          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2145      commission may by rule define "commercial mobile radio service provider."
             2146          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             2147      means equipment that is:
             2148          (i) primarily and customarily used to provide or increase the ability to move from one
             2149      place to another;
             2150          (ii) appropriate for use in a:
             2151          (A) home; or
             2152          (B) motor vehicle; and
             2153          (iii) not generally used by persons with normal mobility.
             2154          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2155      the equipment described in Subsection (65)(a).
             2156          (c) Notwithstanding Subsection (65)(a), "mobility enhancing equipment" does not
             2157      include:
             2158          (i) a motor vehicle;
             2159          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2160      vehicle manufacturer;
             2161          (iii) durable medical equipment; or
             2162          (iv) a prosthetic device.
             2163          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             2164      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2165      functions for agreement sales and use taxes other than the seller's obligation under Section
             2166      59-12-124 to remit a tax on the seller's own purchases.


             2167          (67) "Model 2 seller" means a seller registered under the agreement that:
             2168          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             2169      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2170          (b) notwithstanding Subsection (67)(a), retains responsibility for remitting all of the
             2171      sales tax:
             2172          (i) collected by the seller; and
             2173          (ii) to the appropriate local taxing jurisdiction.
             2174          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             2175      the agreement that has:
             2176          (i) sales in at least five states that are members of the agreement;
             2177          (ii) total annual sales revenues of at least $500,000,000;
             2178          (iii) a proprietary system that calculates the amount of tax:
             2179          (A) for an agreement sales and use tax; and
             2180          (B) due to each local taxing jurisdiction; and
             2181          (iv) entered into a performance agreement with the governing board of the agreement.
             2182          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             2183      sellers using the same proprietary system.
             2184          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2185      model 1 seller, model 2 seller, or model 3 seller.
             2186          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2187          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             2188          (72) "Oil sands" means impregnated bituminous sands that:
             2189          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2190      other hydrocarbons, or otherwise treated;
             2191          (b) yield mixtures of liquid hydrocarbon; and
             2192          (c) require further processing other than mechanical blending before becoming finished
             2193      petroleum products.
             2194          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             2195      material that yields petroleum upon heating and distillation.
             2196          (74) "Optional computer software maintenance contract" means a computer software
             2197      maintenance contract that a customer is not obligated to purchase as a condition to the retail


             2198      sale of computer software.
             2199          (75) (a) "Other fuels" means products that burn independently to produce heat or
             2200      energy.
             2201          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2202      personal property.
             2203          (76) (a) "Paging service" means a telecommunications service that provides
             2204      transmission of a coded radio signal for the purpose of activating a specific pager.
             2205          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             2206      includes a transmission by message or sound.
             2207          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             2208          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             2209          (79) (a) "Permanently attached to real property" means that for tangible personal
             2210      property attached to real property:
             2211          (i) the attachment of the tangible personal property to the real property:
             2212          (A) is essential to the use of the tangible personal property; and
             2213          (B) suggests that the tangible personal property will remain attached to the real
             2214      property in the same place over the useful life of the tangible personal property; or
             2215          (ii) if the tangible personal property is detached from the real property, the detachment
             2216      would:
             2217          (A) cause substantial damage to the tangible personal property; or
             2218          (B) require substantial alteration or repair of the real property to which the tangible
             2219      personal property is attached.
             2220          (b) "Permanently attached to real property" includes:
             2221          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2222          (A) essential to the operation of the tangible personal property; and
             2223          (B) attached only to facilitate the operation of the tangible personal property;
             2224          (ii) a temporary detachment of tangible personal property from real property for a
             2225      repair or renovation if the repair or renovation is performed where the tangible personal
             2226      property and real property are located; or
             2227          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2228      Subsection (79)(c)(iii) or (iv).


             2229          (c) "Permanently attached to real property" does not include:
             2230          (i) the attachment of portable or movable tangible personal property to real property if
             2231      that portable or movable tangible personal property is attached to real property only for:
             2232          (A) convenience;
             2233          (B) stability; or
             2234          (C) for an obvious temporary purpose;
             2235          (ii) the detachment of tangible personal property from real property except for the
             2236      detachment described in Subsection (79)(b)(ii);
             2237          (iii) an attachment of the following tangible personal property to real property if the
             2238      attachment to real property is only through a line that supplies water, electricity, gas,
             2239      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2240      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2241          (A) a computer;
             2242          (B) a telephone;
             2243          (C) a television; or
             2244          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             2245      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2246      Administrative Rulemaking Act; or
             2247          (iv) an item listed in Subsection [(117)] (119)(c).
             2248          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             2249      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2250      municipality, district, or other local governmental entity of the state, or any group or
             2251      combination acting as a unit.
             2252          (81) "Place of primary use":
             2253          (a) for telecommunications service other than mobile telecommunications service,
             2254      means the street address representative of where the customer's use of the telecommunications
             2255      service primarily occurs, which shall be:
             2256          (i) the residential street address of the customer; or
             2257          (ii) the primary business street address of the customer; or
             2258          (b) for mobile telecommunications service, is as defined in the Mobile
             2259      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.


             2260          (82) (a) "Postpaid calling service" means a telecommunications service a person
             2261      obtains by making a payment on a call-by-call basis:
             2262          (i) through the use of a:
             2263          (A) bank card;
             2264          (B) credit card;
             2265          (C) debit card; or
             2266          (D) travel card; or
             2267          (ii) by a charge made to a telephone number that is not associated with the origination
             2268      or termination of the telecommunications service.
             2269          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2270      service, that would be a prepaid wireless calling service if the service were exclusively a
             2271      telecommunications service.
             2272          (83) "Postproduction" means an activity related to the finishing or duplication of a
             2273      medium described in Subsection 59-12-104 (54)(a).
             2274          (84) "Potable delivered water" means water that is:
             2275          (a) suitable for human consumption; and
             2276          (b) delivered through a pipe or similar conduit to the place of retail sale.
             2277          [(84)] (85) "Prepaid calling service" means a telecommunications service:
             2278          (a) that allows a purchaser access to telecommunications service that is exclusively
             2279      telecommunications service;
             2280          (b) that:
             2281          (i) is paid for in advance; and
             2282          (ii) enables the origination of a call using an:
             2283          (A) access number; or
             2284          (B) authorization code;
             2285          (c) that is dialed:
             2286          (i) manually; or
             2287          (ii) electronically; and
             2288          (d) sold in predetermined units or dollars that decline:
             2289          (i) by a known amount; and
             2290          (ii) with use.


             2291          [(85)] (86) "Prepaid wireless calling service" means a telecommunications service:
             2292          (a) that provides the right to utilize:
             2293          (i) mobile wireless service; and
             2294          (ii) other service that is not a telecommunications service, including:
             2295          (A) the download of a product transferred electronically;
             2296          (B) a content service; or
             2297          (C) an ancillary service;
             2298          (b) that:
             2299          (i) is paid for in advance; and
             2300          (ii) enables the origination of a call using an:
             2301          (A) access number; or
             2302          (B) authorization code;
             2303          (c) that is dialed:
             2304          (i) manually; or
             2305          (ii) electronically; and
             2306          (d) sold in predetermined units or dollars that decline:
             2307          (i) by a known amount; and
             2308          (ii) with use.
             2309          [(86)] (87) (a) "Prepared food" means:
             2310          (i) food:
             2311          (A) sold in a heated state; or
             2312          (B) heated by a seller;
             2313          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2314      item; or
             2315          (iii) except as provided in Subsection [(86)] (87)(c), food sold with an eating utensil
             2316      provided by the seller, including a:
             2317          (A) plate;
             2318          (B) knife;
             2319          (C) fork;
             2320          (D) spoon;
             2321          (E) glass;


             2322          (F) cup;
             2323          (G) napkin; or
             2324          (H) straw.
             2325          (b) "Prepared food" does not include:
             2326          (i) food that a seller only:
             2327          (A) cuts;
             2328          (B) repackages; or
             2329          (C) pasteurizes; or
             2330          (ii) (A) the following:
             2331          (I) raw egg;
             2332          (II) raw fish;
             2333          (III) raw meat;
             2334          (IV) raw poultry; or
             2335          (V) a food containing an item described in Subsections [(86)] (87)(b)(ii)(A)(I) through
             2336      (IV); and
             2337          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2338      Food and Drug Administration's Food Code that a consumer cook the items described in
             2339      Subsection [(86)] (87)(b)(ii)(A) to prevent food borne illness; or
             2340          (iii) the following if sold without eating utensils provided by the seller:
             2341          (A) food and food ingredients sold by a seller if the seller's proper primary
             2342      classification under the 2002 North American Industry Classification System of the federal
             2343      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2344      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2345      Manufacturing;
             2346          (B) food and food ingredients sold in an unheated state:
             2347          (I) by weight or volume; and
             2348          (II) as a single item; or
             2349          (C) a bakery item, including:
             2350          (I) a bagel;
             2351          (II) a bar;
             2352          (III) a biscuit;


             2353          (IV) bread;
             2354          (V) a bun;
             2355          (VI) a cake;
             2356          (VII) a cookie;
             2357          (VIII) a croissant;
             2358          (IX) a danish;
             2359          (X) a donut;
             2360          (XI) a muffin;
             2361          (XII) a pastry;
             2362          (XIII) a pie;
             2363          (XIV) a roll;
             2364          (XV) a tart;
             2365          (XVI) a torte; or
             2366          (XVII) a tortilla.
             2367          (c) Notwithstanding Subsection [(86)] (87)(a)(iii), an eating utensil provided by the
             2368      seller does not include the following used to transport the food:
             2369          (i) a container; or
             2370          (ii) packaging.
             2371          [(87)] (88) "Prescription" means an order, formula, or recipe that is issued:
             2372          (a) (i) orally;
             2373          (ii) in writing;
             2374          (iii) electronically; or
             2375          (iv) by any other manner of transmission; and
             2376          (b) by a licensed practitioner authorized by the laws of a state.
             2377          [(88)] (89) (a) Except as provided in Subsection [(88)] (89)(b)(ii) or (iii), "prewritten
             2378      computer software" means computer software that is not designed and developed:
             2379          (i) by the author or other creator of the computer software; and
             2380          (ii) to the specifications of a specific purchaser.
             2381          (b) "Prewritten computer software" includes:
             2382          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2383      software is not designed and developed:


             2384          (A) by the author or other creator of the computer software; and
             2385          (B) to the specifications of a specific purchaser;
             2386          (ii) notwithstanding Subsection [(88)] (89)(a), computer software designed and
             2387      developed by the author or other creator of the computer software to the specifications of a
             2388      specific purchaser if the computer software is sold to a person other than the purchaser; or
             2389          (iii) notwithstanding Subsection [(88)] (89)(a) and except as provided in Subsection
             2390      [(88)] (89)(c), prewritten computer software or a prewritten portion of prewritten computer
             2391      software:
             2392          (A) that is modified or enhanced to any degree; and
             2393          (B) if the modification or enhancement described in Subsection [(88)] (89)(b)(iii)(A) is
             2394      designed and developed to the specifications of a specific purchaser.
             2395          (c) Notwithstanding Subsection [(88)] (89)(b)(iii), "prewritten computer software"
             2396      does not include a modification or enhancement described in Subsection [(88)] (89)(b)(iii) if
             2397      the charges for the modification or enhancement are:
             2398          (i) reasonable; and
             2399          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2400      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2401      demonstrated by:
             2402          (A) the books and records the seller keeps at the time of the transaction in the regular
             2403      course of business, including books and records the seller keeps at the time of the transaction in
             2404      the regular course of business for nontax purposes;
             2405          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2406          (C) the understanding of all of the parties to the transaction.
             2407          [(89)] (90) (a) "Private communication service" means a telecommunications service:
             2408          (i) that entitles a customer to exclusive or priority use of one or more communications
             2409      channels between or among termination points; and
             2410          (ii) regardless of the manner in which the one or more communications channels are
             2411      connected.
             2412          (b) "Private communications service" includes the following provided in connection
             2413      with the use of one or more communications channels:
             2414          (i) an extension line;


             2415          (ii) a station;
             2416          (iii) switching capacity; or
             2417          (iv) another associated service that is provided in connection with the use of one or
             2418      more communications channels as defined in Section 59-12-215 .
             2419          [(90)] (91) (a) Except as provided in Subsection [(90)] (91)(b), "product transferred
             2420      electronically" means a product transferred electronically that would be subject to a tax under
             2421      this chapter if that product was transferred in a manner other than electronically.
             2422          (b) "Product transferred electronically" does not include:
             2423          (i) an ancillary service;
             2424          (ii) computer software; or
             2425          (iii) a telecommunications service.
             2426          [(91)] (92) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2427          (i) artificially replace a missing portion of the body;
             2428          (ii) prevent or correct a physical deformity or physical malfunction; or
             2429          (iii) support a weak or deformed portion of the body.
             2430          (b) "Prosthetic device" includes:
             2431          (i) parts used in the repairs or renovation of a prosthetic device;
             2432          (ii) replacement parts for a prosthetic device;
             2433          (iii) a dental prosthesis; or
             2434          (iv) a hearing aid.
             2435          (c) "Prosthetic device" does not include:
             2436          (i) corrective eyeglasses; or
             2437          (ii) contact lenses.
             2438          [(92)] (93) (a) "Protective equipment" means an item:
             2439          (i) for human wear; and
             2440          (ii) that is:
             2441          (A) designed as protection:
             2442          (I) to the wearer against injury or disease; or
             2443          (II) against damage or injury of other persons or property; and
             2444          (B) not suitable for general use.
             2445          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             2446      commission shall make rules:
             2447          (i) listing the items that constitute "protective equipment"; and
             2448          (ii) that are consistent with the list of items that constitute "protective equipment"
             2449      under the agreement.
             2450          [(93)] (94) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             2451      written or printed matter, other than a photocopy:
             2452          (i) regardless of:
             2453          (A) characteristics;
             2454          (B) copyright;
             2455          (C) form;
             2456          (D) format;
             2457          (E) method of reproduction; or
             2458          (F) source; and
             2459          (ii) made available in printed or electronic format.
             2460          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2461      commission may by rule define the term "photocopy."
             2462          [(94)] (95) (a) "Purchase price" and "sales price" mean the total amount of
             2463      consideration:
             2464          (i) valued in money; and
             2465          (ii) for which tangible personal property, a product transferred electronically, or
             2466      services are:
             2467          (A) sold;
             2468          (B) leased; or
             2469          (C) rented.
             2470          (b) "Purchase price" and "sales price" include:
             2471          (i) the seller's cost of the tangible personal property, a product transferred
             2472      electronically, or services sold;
             2473          (ii) expenses of the seller, including:
             2474          (A) the cost of materials used;
             2475          (B) a labor cost;
             2476          (C) a service cost;


             2477          (D) interest;
             2478          (E) a loss;
             2479          (F) the cost of transportation to the seller; or
             2480          (G) a tax imposed on the seller;
             2481          (iii) a charge by the seller for any service necessary to complete the sale; or
             2482          (iv) consideration a seller receives from a person other than the purchaser if:
             2483          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2484      and
             2485          (II) the consideration described in Subsection [(94)] (95)(b)(iv)(A)(I) is directly related
             2486      to a price reduction or discount on the sale;
             2487          (B) the seller has an obligation to pass the price reduction or discount through to the
             2488      purchaser;
             2489          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2490      the seller at the time of the sale to the purchaser; and
             2491          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2492      seller to claim a price reduction or discount; and
             2493          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2494      coupon, or other documentation with the understanding that the person other than the seller
             2495      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2496          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2497      organization allowed a price reduction or discount, except that a preferred customer card that is
             2498      available to any patron of a seller does not constitute membership in a group or organization
             2499      allowed a price reduction or discount; or
             2500          (III) the price reduction or discount is identified as a third party price reduction or
             2501      discount on the:
             2502          (Aa) invoice the purchaser receives; or
             2503          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2504          (c) "Purchase price" and "sales price" do not include:
             2505          (i) a discount:
             2506          (A) in a form including:
             2507          (I) cash;


             2508          (II) term; or
             2509          (III) coupon;
             2510          (B) that is allowed by a seller;
             2511          (C) taken by a purchaser on a sale; and
             2512          (D) that is not reimbursed by a third party; or
             2513          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2514      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2515      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2516      transaction in the regular course of business, including books and records the seller keeps at the
             2517      time of the transaction in the regular course of business for nontax purposes, by a
             2518      preponderance of the facts and circumstances at the time of the transaction, and by the
             2519      understanding of all of the parties to the transaction:
             2520          (A) the following from credit extended on the sale of tangible personal property or
             2521      services:
             2522          (I) a carrying charge;
             2523          (II) a financing charge; or
             2524          (III) an interest charge;
             2525          (B) a delivery charge;
             2526          (C) an installation charge;
             2527          (D) a manufacturer rebate on a motor vehicle; or
             2528          (E) a tax or fee legally imposed directly on the consumer.
             2529          [(95)] (96) "Purchaser" means a person to whom:
             2530          (a) a sale of tangible personal property is made;
             2531          (b) a product is transferred electronically; or
             2532          (c) a service is furnished.
             2533          [(96)] (97) "Regularly rented" means:
             2534          (a) rented to a guest for value three or more times during a calendar year; or
             2535          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2536      value.
             2537          [(97)] (98) "Rental" is as defined in Subsection (54).
             2538          [(98)] (99) (a) Except as provided in Subsection [(98)] (99)(b), "repairs or renovations


             2539      of tangible personal property" means:
             2540          (i) a repair or renovation of tangible personal property that is not permanently attached
             2541      to real property; or
             2542          (ii) attaching tangible personal property or a product transferred electronically to other
             2543      tangible personal property or detaching tangible personal property or a product transferred
             2544      electronically from other tangible personal property if:
             2545          (A) the other tangible personal property to which the tangible personal property or
             2546      product transferred electronically is attached or from which the tangible personal property or
             2547      product transferred electronically is detached is not permanently attached to real property; and
             2548          (B) the attachment of tangible personal property or a product transferred electronically
             2549      to other tangible personal property or detachment of tangible personal property or a product
             2550      transferred electronically from other tangible personal property is made in conjunction with a
             2551      repair or replacement of tangible personal property or a product transferred electronically.
             2552          (b) "Repairs or renovations of tangible personal property" does not include:
             2553          (i) attaching prewritten computer software to other tangible personal property if the
             2554      other tangible personal property to which the prewritten computer software is attached is not
             2555      permanently attached to real property; or
             2556          (ii) detaching prewritten computer software from other tangible personal property if the
             2557      other tangible personal property from which the prewritten computer software is detached is
             2558      not permanently attached to real property.
             2559          [(99)] (100) "Research and development" means the process of inquiry or
             2560      experimentation aimed at the discovery of facts, devices, technologies, or applications and the
             2561      process of preparing those devices, technologies, or applications for marketing.
             2562          [(100)] (101) (a) "Residential telecommunications services" means a
             2563      telecommunications service or an ancillary service that is provided to an individual for personal
             2564      use:
             2565          (i) at a residential address; or
             2566          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2567      service or ancillary service is provided to and paid for by the individual residing at the
             2568      institution rather than the institution.
             2569          (b) For purposes of Subsection [(100)] (101)(a)(i), a residential address includes an:


             2570          (i) apartment; or
             2571          (ii) other individual dwelling unit.
             2572          [(101)] (102) "Residential use" means the use in or around a home, apartment building,
             2573      sleeping quarters, and similar facilities or accommodations.
             2574          [(102)] (103) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             2575      other than:
             2576          (a) resale;
             2577          (b) sublease; or
             2578          (c) subrent.
             2579          [(103)] (104) (a) "Retailer" means any person engaged in a regularly organized
             2580      business in tangible personal property or any other taxable transaction under Subsection
             2581      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             2582          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2583      engaged in the business of selling to users or consumers within the state.
             2584          [(104)] (105) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2585      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2586      Subsection 59-12-103 (1), for consideration.
             2587          (b) "Sale" includes:
             2588          (i) installment and credit sales;
             2589          (ii) any closed transaction constituting a sale;
             2590          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2591      chapter;
             2592          (iv) any transaction if the possession of property is transferred but the seller retains the
             2593      title as security for the payment of the price; and
             2594          (v) any transaction under which right to possession, operation, or use of any article of
             2595      tangible personal property is granted under a lease or contract and the transfer of possession
             2596      would be taxable if an outright sale were made.
             2597          [(105)] (106) "Sale at retail" is as defined in Subsection [(102)] (103).
             2598          [(106)] (107) "Sale-leaseback transaction" means a transaction by which title to
             2599      tangible personal property or a product transferred electronically that is subject to a tax under
             2600      this chapter is transferred:


             2601          (a) by a purchaser-lessee;
             2602          (b) to a lessor;
             2603          (c) for consideration; and
             2604          (d) if:
             2605          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2606      of the tangible personal property or product transferred electronically;
             2607          (ii) the sale of the tangible personal property or product transferred electronically to the
             2608      lessor is intended as a form of financing:
             2609          (A) for the tangible personal property or product transferred electronically; and
             2610          (B) to the purchaser-lessee; and
             2611          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2612      is required to:
             2613          (A) capitalize the tangible personal property or product transferred electronically for
             2614      financial reporting purposes; and
             2615          (B) account for the lease payments as payments made under a financing arrangement.
             2616          [(107)] (108) "Sales price" is as defined in Subsection [(94)] (95).
             2617          [(108)] (109) (a) "Sales relating to schools" means the following sales by, amounts
             2618      paid to, or amounts charged by a school:
             2619          (i) sales that are directly related to the school's educational functions or activities
             2620      including:
             2621          (A) the sale of:
             2622          (I) textbooks;
             2623          (II) textbook fees;
             2624          (III) laboratory fees;
             2625          (IV) laboratory supplies; or
             2626          (V) safety equipment;
             2627          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2628      that:
             2629          (I) a student is specifically required to wear as a condition of participation in a
             2630      school-related event or school-related activity; and
             2631          (II) is not readily adaptable to general or continued usage to the extent that it takes the


             2632      place of ordinary clothing;
             2633          (C) sales of the following if the net or gross revenues generated by the sales are
             2634      deposited into a school district fund or school fund dedicated to school meals:
             2635          (I) food and food ingredients; or
             2636          (II) prepared food; or
             2637          (D) transportation charges for official school activities; or
             2638          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2639      event or school-related activity.
             2640          (b) "Sales relating to schools" does not include:
             2641          (i) bookstore sales of items that are not educational materials or supplies;
             2642          (ii) except as provided in Subsection [(108)] (109)(a)(i)(B):
             2643          (A) clothing;
             2644          (B) clothing accessories or equipment;
             2645          (C) protective equipment; or
             2646          (D) sports or recreational equipment; or
             2647          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2648      event or school-related activity if the amounts paid or charged are passed through to a person:
             2649          (A) other than a:
             2650          (I) school;
             2651          (II) nonprofit organization authorized by a school board or a governing body of a
             2652      private school to organize and direct a competitive secondary school activity; or
             2653          (III) nonprofit association authorized by a school board or a governing body of a
             2654      private school to organize and direct a competitive secondary school activity; and
             2655          (B) that is required to collect sales and use taxes under this chapter.
             2656          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2657      commission may make rules defining the term "passed through."
             2658          [(109)] (110) For purposes of this section and Section 59-12-104 , "school":
             2659          (a) means:
             2660          (i) an elementary school or a secondary school that:
             2661          (A) is a:
             2662          (I) public school; or


             2663          (II) private school; and
             2664          (B) provides instruction for one or more grades kindergarten through 12; or
             2665          (ii) a public school district; and
             2666          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2667          [(110)] (111) "Seller" means a person that makes a sale, lease, or rental of:
             2668          (a) tangible personal property;
             2669          (b) a product transferred electronically; or
             2670          (c) a service.
             2671          [(111)] (112) (a) "Semiconductor fabricating, processing, research, or development
             2672      materials" means tangible personal property or a product transferred electronically if the
             2673      tangible personal property or product transferred electronically is:
             2674          (i) used primarily in the process of:
             2675          (A) (I) manufacturing a semiconductor;
             2676          (II) fabricating a semiconductor; or
             2677          (III) research or development of a:
             2678          (Aa) semiconductor; or
             2679          (Bb) semiconductor manufacturing process; or
             2680          (B) maintaining an environment suitable for a semiconductor; or
             2681          (ii) consumed primarily in the process of:
             2682          (A) (I) manufacturing a semiconductor;
             2683          (II) fabricating a semiconductor; or
             2684          (III) research or development of a:
             2685          (Aa) semiconductor; or
             2686          (Bb) semiconductor manufacturing process; or
             2687          (B) maintaining an environment suitable for a semiconductor.
             2688          (b) "Semiconductor fabricating, processing, research, or development materials"
             2689      includes:
             2690          (i) parts used in the repairs or renovations of tangible personal property or a product
             2691      transferred electronically described in Subsection [(111)] (112)(a); or
             2692          (ii) a chemical, catalyst, or other material used to:
             2693          (A) produce or induce in a semiconductor a:


             2694          (I) chemical change; or
             2695          (II) physical change;
             2696          (B) remove impurities from a semiconductor; or
             2697          (C) improve the marketable condition of a semiconductor.
             2698          [(112)] (113) "Senior citizen center" means a facility having the primary purpose of
             2699      providing services to the aged as defined in Section 62A-3-101 .
             2700          [(113)] (114) "Simplified electronic return" means the electronic return:
             2701          (a) described in Section 318(C) of the agreement; and
             2702          (b) approved by the governing board of the agreement.
             2703          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             2704      producing electricity.
             2705          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             2706          (i) designed for human use; and
             2707          (ii) that is:
             2708          (A) worn in conjunction with:
             2709          (I) an athletic activity; or
             2710          (II) a recreational activity; and
             2711          (B) not suitable for general use.
             2712          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2713      commission shall make rules:
             2714          (i) listing the items that constitute "sports or recreational equipment"; and
             2715          (ii) that are consistent with the list of items that constitute "sports or recreational
             2716      equipment" under the agreement.
             2717          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             2718          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             2719      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             2720      except sale in the regular course of business.
             2721          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             2722      personal property" means personal property that:
             2723          (i) may be:
             2724          (A) seen;


             2725          (B) weighed;
             2726          (C) measured;
             2727          (D) felt; or
             2728          (E) touched; or
             2729          (ii) is in any manner perceptible to the senses.
             2730          (b) "Tangible personal property" includes:
             2731          (i) electricity;
             2732          (ii) water;
             2733          (iii) gas;
             2734          (iv) steam; or
             2735          (v) prewritten computer software, regardless of the manner in which the prewritten
             2736      computer software is transferred.
             2737          (c) "Tangible personal property" includes the following regardless of whether the item
             2738      is attached to real property:
             2739          (i) a dishwasher;
             2740          (ii) a dryer;
             2741          (iii) a freezer;
             2742          (iv) a microwave;
             2743          (v) a refrigerator;
             2744          (vi) a stove;
             2745          (vii) a washer; or
             2746          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             2747      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2748      Rulemaking Act.
             2749          (d) "Tangible personal property" does not include a product that is transferred
             2750      electronically.
             2751          (e) "Tangible personal property" does not include the following if attached to real
             2752      property, regardless of whether the attachment to real property is only through a line that
             2753      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2754      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2755      Rulemaking Act:


             2756          (i) a hot water heater;
             2757          (ii) a water filtration system; or
             2758          (iii) a water softener system.
             2759          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             2760      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             2761      leased primarily to enable or facilitate one or more of the following to function:
             2762          (i) telecommunications switching or routing equipment, machinery, or software; or
             2763          (ii) telecommunications transmission equipment, machinery, or software.
             2764          (b) The following apply to Subsection [(119)] (120)(a):
             2765          (i) a pole;
             2766          (ii) software;
             2767          (iii) a supplementary power supply;
             2768          (iv) temperature or environmental equipment or machinery;
             2769          (v) test equipment;
             2770          (vi) a tower; or
             2771          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2772      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             2773      accordance with Subsection [(119)] (120)(c).
             2774          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2775      commission may by rule define what constitutes equipment, machinery, or software that
             2776      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             2777          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             2778      911 service" means equipment, machinery, or software that is required to comply with 47
             2779      C.F.R. Sec. 20.18.
             2780          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             2781      software" means equipment, machinery, or software purchased or leased primarily to maintain
             2782      or repair one or more of the following, regardless of whether the equipment, machinery, or
             2783      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             2784      of the following:
             2785          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2786          (b) telecommunications switching or routing equipment, machinery, or software; or


             2787          (c) telecommunications transmission equipment, machinery, or software.
             2788          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             2789      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             2790      point, or among or between points.
             2791          (b) "Telecommunications service" includes:
             2792          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2793      processing application is used to act:
             2794          (A) on the code, form, or protocol of the content;
             2795          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2796          (C) regardless of whether the service:
             2797          (I) is referred to as voice over Internet protocol service; or
             2798          (II) is classified by the Federal Communications Commission as enhanced or value
             2799      added;
             2800          (ii) an 800 service;
             2801          (iii) a 900 service;
             2802          (iv) a fixed wireless service;
             2803          (v) a mobile wireless service;
             2804          (vi) a postpaid calling service;
             2805          (vii) a prepaid calling service;
             2806          (viii) a prepaid wireless calling service; or
             2807          (ix) a private communications service.
             2808          (c) "Telecommunications service" does not include:
             2809          (i) advertising, including directory advertising;
             2810          (ii) an ancillary service;
             2811          (iii) a billing and collection service provided to a third party;
             2812          (iv) a data processing and information service if:
             2813          (A) the data processing and information service allows data to be:
             2814          (I) (Aa) acquired;
             2815          (Bb) generated;
             2816          (Cc) processed;
             2817          (Dd) retrieved; or


             2818          (Ee) stored; and
             2819          (II) delivered by an electronic transmission to a purchaser; and
             2820          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2821      or information;
             2822          (v) installation or maintenance of the following on a customer's premises:
             2823          (A) equipment; or
             2824          (B) wiring;
             2825          (vi) Internet access service;
             2826          (vii) a paging service;
             2827          (viii) a product transferred electronically, including:
             2828          (A) music;
             2829          (B) reading material;
             2830          (C) a ring tone;
             2831          (D) software; or
             2832          (E) video;
             2833          (ix) a radio and television audio and video programming service:
             2834          (A) regardless of the medium; and
             2835          (B) including:
             2836          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2837      programming service by a programming service provider;
             2838          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2839          (III) audio and video programming services delivered by a commercial mobile radio
             2840      service provider as defined in 47 C.F.R. Sec. 20.3;
             2841          (x) a value-added nonvoice data service; or
             2842          (xi) tangible personal property.
             2843          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             2844          (i) owns, controls, operates, or manages a telecommunications service; and
             2845          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             2846      with or resale to any person of the telecommunications service.
             2847          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             2848      provider whether or not the Public Service Commission of Utah regulates:


             2849          (i) that person; or
             2850          (ii) the telecommunications service that the person owns, controls, operates, or
             2851      manages.
             2852          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             2853      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             2854      leased primarily for switching or routing:
             2855          (i) an ancillary service;
             2856          (ii) data communications;
             2857          (iii) voice communications; or
             2858          (iv) telecommunications service.
             2859          (b) The following apply to Subsection [(124)] (125)(a):
             2860          (i) a bridge;
             2861          (ii) a computer;
             2862          (iii) a cross connect;
             2863          (iv) a modem;
             2864          (v) a multiplexer;
             2865          (vi) plug in circuitry;
             2866          (vii) a router;
             2867          (viii) software;
             2868          (ix) a switch; or
             2869          (x) equipment, machinery, or software that functions similarly to an item listed in
             2870      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             2871      accordance with Subsection [(124)] (125)(c).
             2872          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2873      commission may by rule define what constitutes equipment, machinery, or software that
             2874      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             2875          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             2876      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             2877      leased primarily for sending, receiving, or transporting:
             2878          (i) an ancillary service;
             2879          (ii) data communications;


             2880          (iii) voice communications; or
             2881          (iv) telecommunications service.
             2882          (b) The following apply to Subsection [(125)] (126)(a):
             2883          (i) an amplifier;
             2884          (ii) a cable;
             2885          (iii) a closure;
             2886          (iv) a conduit;
             2887          (v) a controller;
             2888          (vi) a duplexer;
             2889          (vii) a filter;
             2890          (viii) an input device;
             2891          (ix) an input/output device;
             2892          (x) an insulator;
             2893          (xi) microwave machinery or equipment;
             2894          (xii) an oscillator;
             2895          (xiii) an output device;
             2896          (xiv) a pedestal;
             2897          (xv) a power converter;
             2898          (xvi) a power supply;
             2899          (xvii) a radio channel;
             2900          (xviii) a radio receiver;
             2901          (xix) a radio transmitter;
             2902          (xx) a repeater;
             2903          (xxi) software;
             2904          (xxii) a terminal;
             2905          (xxiii) a timing unit;
             2906          (xxiv) a transformer;
             2907          (xxv) a wire; or
             2908          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2909      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             2910      accordance with Subsection [(125)] (126)(c).


             2911          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2912      commission may by rule define what constitutes equipment, machinery, or software that
             2913      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             2914          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             2915      printed material that is required for a course:
             2916          (i) offered by an institution of higher education; and
             2917          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2918          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             2919          [(127)] (128) "Tobacco" means:
             2920          (a) a cigarette;
             2921          (b) a cigar;
             2922          (c) chewing tobacco;
             2923          (d) pipe tobacco; or
             2924          (e) any other item that contains tobacco.
             2925          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             2926      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             2927      operate the amusement device, skill device, or ride device.
             2928          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             2929      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2930      incident to the ownership or the leasing of that tangible personal property, product transferred
             2931      electronically, or service.
             2932          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             2933      property, a product transferred electronically, or a service in the regular course of business and
             2934      held for resale.
             2935          [(130)] (131) "Value-added nonvoice data service" means a service:
             2936          (a) that otherwise meets the definition of a telecommunications service except that a
             2937      computer processing application is used to act primarily for a purpose other than conveyance,
             2938      routing, or transmission; and
             2939          (b) with respect to which a computer processing application is used to act on data or
             2940      information:
             2941          (i) code;


             2942          (ii) content;
             2943          (iii) form; or
             2944          (iv) protocol.
             2945          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             2946      that are required to be titled, registered, or titled and registered:
             2947          (i) an aircraft as defined in Section 72-10-102 ;
             2948          (ii) a vehicle as defined in Section 41-1a-102 ;
             2949          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2950          (iv) a vessel as defined in Section 41-1a-102 .
             2951          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             2952          (i) a vehicle described in Subsection [(131)] (132)(a); or
             2953          (ii) (A) a locomotive;
             2954          (B) a freight car;
             2955          (C) railroad work equipment; or
             2956          (D) other railroad rolling stock.
             2957          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             2958      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             2959          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             2960          (i) is offered in connection with one or more telecommunications services; and
             2961          (ii) offers an advanced calling feature that allows a customer to:
             2962          (A) identify a caller; and
             2963          (B) manage multiple calls and call connections.
             2964          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2965      conference bridging service.
             2966          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             2967      customer to receive, send, or store a recorded message.
             2968          (b) "Voice mail service" does not include a vertical service that a customer is required
             2969      to have in order to utilize a voice mail service.
             2970          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             2971      facility" means a facility that generates electricity:
             2972          (i) using as the primary source of energy waste materials that would be placed in a


             2973      landfill or refuse pit if it were not used to generate electricity, including:
             2974          (A) tires;
             2975          (B) waste coal;
             2976          (C) oil shale; or
             2977          (D) municipal solid waste; and
             2978          (ii) in amounts greater than actually required for the operation of the facility.
             2979          (b) "Waste energy facility" does not include a facility that incinerates:
             2980          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             2981          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2982          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2983          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             2984      electricity.
             2985          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             2986      geographic location by the United States Postal Service.
             2987          Section 3. Section 59-12-103 (Superseded 07/01/14) is amended to read:
             2988           59-12-103 (Superseded 07/01/14). Sales and use tax base -- Rates -- Effective dates
             2989      -- Use of sales and use tax revenues.
             2990          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             2991      charged for the following transactions:
             2992          (a) retail sales of tangible personal property made within the state;
             2993          (b) amounts paid for:
             2994          (i) telecommunications service, other than mobile telecommunications service, that
             2995      originates and terminates within the boundaries of this state;
             2996          (ii) mobile telecommunications service that originates and terminates within the
             2997      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             2998      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             2999          (iii) an ancillary service associated with a:
             3000          (A) telecommunications service described in Subsection (1)(b)(i); or
             3001          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             3002          (c) sales of the following for commercial use:
             3003          (i) gas;


             3004          (ii) electricity;
             3005          (iii) heat;
             3006          (iv) coal;
             3007          (v) fuel oil; or
             3008          (vi) other fuels;
             3009          (d) sales of the following for residential use:
             3010          (i) gas;
             3011          (ii) electricity;
             3012          (iii) heat;
             3013          (iv) coal;
             3014          (v) fuel oil; or
             3015          (vi) other fuels;
             3016          (e) sales of prepared food;
             3017          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             3018      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             3019      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             3020      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             3021      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             3022      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             3023      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             3024      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             3025      exhibition, cultural, or athletic activity;
             3026          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             3027      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             3028          (i) the tangible personal property; and
             3029          (ii) parts used in the repairs or renovations of the tangible personal property described
             3030      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             3031      of that tangible personal property;
             3032          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             3033      assisted cleaning or washing of tangible personal property;
             3034          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court


             3035      accommodations and services that are regularly rented for less than 30 consecutive days;
             3036          (j) amounts paid or charged for laundry or dry cleaning services;
             3037          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             3038      this state the tangible personal property is:
             3039          (i) stored;
             3040          (ii) used; or
             3041          (iii) otherwise consumed;
             3042          (l) amounts paid or charged for tangible personal property if within this state the
             3043      tangible personal property is:
             3044          (i) stored;
             3045          (ii) used; or
             3046          (iii) consumed; [and]
             3047          (m) amounts paid or charged for a sale:
             3048          (i) (A) of a product transferred electronically; or
             3049          (B) of a repair or renovation of a product transferred electronically; and
             3050          (ii) regardless of whether the sale provides:
             3051          (A) a right of permanent use of the product; or
             3052          (B) a right to use the product that is less than a permanent use, including a right:
             3053          (I) for a definite or specified length of time; and
             3054          (II) that terminates upon the occurrence of a condition[.]; and
             3055          (n) amounts paid or charged for the retail sale of potable delivered water.
             3056          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             3057      is imposed on a transaction described in Subsection (1), including Subsection (1)(n), equal to
             3058      the sum of:
             3059          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             3060          (A) 4.70%; and
             3061          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             3062      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             3063      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             3064      State Sales and Use Tax Act; and
             3065          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales


             3066      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             3067      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             3068      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             3069          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3070      transaction under this chapter other than this part.
             3071          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             3072      on a transaction described in Subsection (1)(d) equal to the sum of:
             3073          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             3074          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3075      transaction under this chapter other than this part.
             3076          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             3077      on amounts paid or charged for food and food ingredients equal to the sum of:
             3078          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             3079      a tax rate of 1.75%; and
             3080          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3081      amounts paid or charged for food and food ingredients under this chapter other than this part.
             3082          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             3083      tangible personal property other than food and food ingredients, a state tax and a local tax is
             3084      imposed on the entire bundled transaction equal to the sum of:
             3085          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             3086          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             3087          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             3088      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             3089      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             3090      Additional State Sales and Use Tax Act; and
             3091          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             3092      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             3093      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             3094      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             3095          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             3096      described in Subsection (2)(a)(ii).


             3097          (ii) If an optional computer software maintenance contract is a bundled transaction that
             3098      consists of taxable and nontaxable products that are not separately itemized on an invoice or
             3099      similar billing document, the purchase of the optional computer software maintenance contract
             3100      is 40% taxable under this chapter and 60% nontaxable under this chapter.
             3101          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
             3102      transaction described in Subsection (2)(d)(i) or (ii):
             3103          (A) if the sales price of the bundled transaction is attributable to tangible personal
             3104      property, a product, or a service that is subject to taxation under this chapter and tangible
             3105      personal property, a product, or service that is not subject to taxation under this chapter, the
             3106      entire bundled transaction is subject to taxation under this chapter unless:
             3107          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             3108      personal property, product, or service that is not subject to taxation under this chapter from the
             3109      books and records the seller keeps in the seller's regular course of business; or
             3110          (II) state or federal law provides otherwise; or
             3111          (B) if the sales price of a bundled transaction is attributable to two or more items of
             3112      tangible personal property, products, or services that are subject to taxation under this chapter
             3113      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             3114      higher tax rate unless:
             3115          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             3116      personal property, product, or service that is subject to taxation under this chapter at the lower
             3117      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             3118          (II) state or federal law provides otherwise.
             3119          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
             3120      seller's regular course of business includes books and records the seller keeps in the regular
             3121      course of business for nontax purposes.
             3122          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             3123      rate imposed under the following shall take effect on the first day of a calendar quarter:
             3124          (i) Subsection (2)(a)(i)(A);
             3125          (ii) Subsection (2)(b)(i);
             3126          (iii) Subsection (2)(c)(i); or
             3127          (iv) Subsection (2)(d)(i)(A)(I).


             3128          (f) (i) A tax rate increase takes effect on the first day of the first billing period that
             3129      begins on or after the effective date of the tax rate increase if the billing period for the
             3130      transaction begins before the effective date of a tax rate increase imposed under:
             3131          (A) Subsection (2)(a)(i)(A);
             3132          (B) Subsection (2)(b)(i);
             3133          (C) Subsection (2)(c)(i); or
             3134          (D) Subsection (2)(d)(i)(A)(I).
             3135          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             3136      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             3137      or the tax rate decrease imposed under:
             3138          (A) Subsection (2)(a)(i)(A);
             3139          (B) Subsection (2)(b)(i);
             3140          (C) Subsection (2)(c)(i); or
             3141          (D) Subsection (2)(d)(i)(A)(I).
             3142          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             3143      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             3144      or change in a tax rate takes effect:
             3145          (A) on the first day of a calendar quarter; and
             3146          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             3147          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             3148          (A) Subsection (2)(a)(i)(A);
             3149          (B) Subsection (2)(b)(i);
             3150          (C) Subsection (2)(c)(i); or
             3151          (D) Subsection (2)(d)(i)(A)(I).
             3152          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             3153      the commission may by rule define the term "catalogue sale."
             3154          (3) (a) The following state taxes shall be deposited into the General Fund:
             3155          (i) the tax imposed by Subsection (2)(a)(i)(A);
             3156          (ii) the tax imposed by Subsection (2)(b)(i);
             3157          (iii) the tax imposed by Subsection (2)(c)(i); or
             3158          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).


             3159          (b) The following local taxes shall be distributed to a county, city, or town as provided
             3160      in this chapter:
             3161          (i) the tax imposed by Subsection (2)(a)(ii);
             3162          (ii) the tax imposed by Subsection (2)(b)(ii);
             3163          (iii) the tax imposed by Subsection (2)(c)(ii); and
             3164          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             3165          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             3166      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             3167      through (g):
             3168          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             3169          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             3170          (B) for the fiscal year; or
             3171          (ii) $17,500,000.
             3172          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             3173      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             3174      Department of Natural Resources to:
             3175          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             3176      protect sensitive plant and animal species; or
             3177          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             3178      act, to political subdivisions of the state to implement the measures described in Subsections
             3179      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             3180          (ii) Money transferred to the Department of Natural Resources under Subsection
             3181      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             3182      person to list or attempt to have listed a species as threatened or endangered under the
             3183      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             3184          (iii) At the end of each fiscal year:
             3185