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S.B. 154
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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26 59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters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30 59-12-103 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters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
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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 Section 59-12-102 (Superseded 07/01/14) is amended to read:
41 59-12-102 (Superseded 07/01/14).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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
900 seller does not include the following used to transport the food:
901 (i) a container; or
902 (ii) packaging.
903 [
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 [
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 [
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 [
922 [
923 software:
924 (A) that is modified or enhanced to any degree; and
925 (B) if the modification or enhancement described in Subsection [
926 designed and developed to the specifications of a specific purchaser.
927 (c) Notwithstanding Subsection [
928 does not include a modification or enhancement described in Subsection [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
1059 [
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 [
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 [
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 [
1091 (i) apartment; or
1092 (ii) other individual dwelling unit.
1093 [
1094 sleeping quarters, and similar facilities or accommodations.
1095 [
1096 other than:
1097 (a) resale;
1098 (b) sublease; or
1099 (c) subrent.
1100 [
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 [
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 [
1119 [
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 [
1138 [
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 [
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 [
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 [
1189 (a) tangible personal property;
1190 (b) a product transferred electronically; or
1191 (c) a service.
1192 [
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 [
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 [
1220 providing services to the aged as defined in Section 62A-3-101 .
1221 [
1222 (a) described in Section 318(C) of the agreement; and
1223 (b) approved by the governing board of the agreement.
1224 [
1225 producing electricity.
1226 [
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 [
1239 [
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 [
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 [
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 [
1281 or software" means an item listed in Subsection [
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 [
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 [
1294 accordance with Subsection [
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 [
1298 [
1299 911 service" means equipment, machinery, or software that is required to comply with 47
1300 C.F.R. Sec. 20.18.
1301 [
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 [
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 [
1365 (i) owns, controls, operates, or manages a telecommunications service; and
1366 (ii) engages in an activity described in Subsection [
1367 with or resale to any person of the telecommunications service.
1368 (b) A person described in Subsection [
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 [
1374 software" means an item listed in Subsection [
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 [
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 [
1392 accordance with Subsection [
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 [
1396 [
1397 software" means an item listed in Subsection [
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 [
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 [
1431 accordance with Subsection [
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 [
1435 [
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 [
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 [
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 [
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 [
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 [
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 [
1474 (ii) (A) a locomotive;
1475 (B) a freight car;
1476 (C) railroad work equipment; or
1477 (D) other railroad rolling stock.
1478 [
1479 selling, or exchanging a vehicle as defined in Subsection [
1480 [
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 [
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 [
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 [
1504 [
1505 electricity.
1506 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
2368 seller does not include the following used to transport the food:
2369 (i) a container; or
2370 (ii) packaging.
2371 [
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 [
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 [
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 [
2390 [
2391 software:
2392 (A) that is modified or enhanced to any degree; and
2393 (B) if the modification or enhancement described in Subsection [
2394 designed and developed to the specifications of a specific purchaser.
2395 (c) Notwithstanding Subsection [
2396 does not include a modification or enhancement described in Subsection [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
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 [
2538 [
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 [
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 [
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 [
2570 (i) apartment; or
2571 (ii) other individual dwelling unit.
2572 [
2573 sleeping quarters, and similar facilities or accommodations.
2574 [
2575 other than:
2576 (a) resale;
2577 (b) sublease; or
2578 (c) subrent.
2579 [
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 [
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 [
2598 [
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 [
2617 [
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 [
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 [
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 [
2668 (a) tangible personal property;
2669 (b) a product transferred electronically; or
2670 (c) a service.
2671 [
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 [
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 [
2699 providing services to the aged as defined in Section 62A-3-101 .
2700 [
2701 (a) described in Section 318(C) of the agreement; and
2702 (b) approved by the governing board of the agreement.
2703 [
2704 producing electricity.
2705 [
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 [
2718 [
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 [
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 [
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 [
2760 or software" means an item listed in Subsection [
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 [
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 [
2773 accordance with Subsection [
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 [
2777 [
2778 911 service" means equipment, machinery, or software that is required to comply with 47
2779 C.F.R. Sec. 20.18.
2780 [
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 [
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 [
2844 (i) owns, controls, operates, or manages a telecommunications service; and
2845 (ii) engages in an activity described in Subsection [
2846 with or resale to any person of the telecommunications service.
2847 (b) A person described in Subsection [
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 [
2853 software" means an item listed in Subsection [
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 [
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 [
2871 accordance with Subsection [
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 [
2875 [
2876 software" means an item listed in Subsection [
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 [
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 [
2910 accordance with Subsection [
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 [
2914 [
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 [
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 [
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 [
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 [
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 [
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 [
2953 (ii) (A) a locomotive;
2954 (B) a freight car;
2955 (C) railroad work equipment; or
2956 (D) other railroad rolling stock.
2957 [
2958 selling, or exchanging a vehicle as defined in Subsection [
2959 [
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 [
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 [
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 [
2983 [
2984 electricity.
2985 [
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; [
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[
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 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
3186 Conservation and Development Fund created in Section 73-10-24 ;
3187 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan