S.B. 47
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7 LONG TITLE
8 General Description:
9 This bill modifies the Emergency Management Act regarding out-of-state businesses
10 that provide recovery services in the state during a declared disaster or emergency.
11 Highlighted Provisions:
12 This bill:
13 . provides that an out-of-state business that enters the state during a declared disaster
14 or emergency to conduct work related to the disaster or emergency is exempt from:
15 . licensing or registration requirements as provided;
16 . income taxation related to an out-of-state employee as provided; and
17 . sales and use taxation of a transaction during a disaster period;
18 . provides that any out-of-state business or out-of-state employee that remains in the
19 state after the disaster period is subject to the state's normal standards for
20 establishing presence or residency, or doing business in the state; and
21 . requires any out-of-state business that enters the state for disaster- or
22 emergency-related work to provide the Division of Occupational and Professional
23 Licensing a statement about the purpose of its business in the state, upon request.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill provides an effective date.
28 This bill provides retrospective operation for a taxable year beginning on or after
29 January 1, 2014.
30 Utah Code Sections Affected:
31 AMENDS:
32 59-7-102 , as last amended by Laws of Utah 2012, Chapter 369
33 59-10-104 , as last amended by Laws of Utah 2008, Chapter 389
34 59-10-403 , as renumbered and amended by Laws of Utah 1987, Chapter 2
35 59-12-104 , as last amended by Laws of Utah 2013, Chapters 82, 223, 229, 234, and 441
36 ENACTS:
37 53-2a-1201 , Utah Code Annotated 1953
38 53-2a-1202 , Utah Code Annotated 1953
39 53-2a-1203 , Utah Code Annotated 1953
40 53-2a-1204 , Utah Code Annotated 1953
41 53-2a-1205 , Utah Code Annotated 1953
42
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 53-2a-1201 is enacted to read:
45
46 53-2a-1201. Title.
47 This part is known as the "Facilitating Business Rapid Response to State Declared
48 Disasters Act."
49 Section 2. Section 53-2a-1202 is enacted to read:
50 53-2a-1202. Definitions.
51 As used in this part:
52 (1) "Declared state disaster or emergency" means a declared disaster as defined in
53 Section 53-2a-602 .
54 (2) "Disaster- or emergency-related work" means repairing, renovating, installing,
55 building, rendering services, or other business activities that relate to infrastructure that has
56 been damaged, impaired, or destroyed by a declared state disaster or emergency.
57 (3) "Disaster period" means a period that begins within 10 days after the first day of a
58 declared disaster or emergency and that extends for a period of 60 calendar days after the end
59 of the declared disaster or emergency period.
60 (4) "Infrastructure" means property and equipment owned or used by communications
61 networks, electric generation systems, transmission and distribution systems, gas distribution
62 systems, water pipelines, public roads and bridges, and related support facilities that serve
63 multiple customers or citizens, including real and personal property, such as buildings, offices,
64 power and communication lines and poles, pipes, structures, and equipment.
65 (5) "Out-of-state business" means a business entity that:
66 (a) has no presence in the state and conducts no business in the state, and whose
67 services are requested by a registered business or by a state or local government for purposes of
68 performing disaster- or emergency-related work in the state; and
69 (b) has no registration or tax filings or presence sufficient to require the collection of a
70 tax in the state prior to the declared state disaster or emergency.
71 (6) "Out-of-state employee" means an employee who does not work in the state, except
72 for disaster- or emergency-related work during the disaster period.
73 (7) "Registered business" means a business entity that is currently registered to do
74 business in the state prior to the declared state disaster or emergency.
75 Section 3. Section 53-2a-1203 is enacted to read:
76 53-2a-1203. Business and employee status during disaster period.
77 (1) Notwithstanding any other provision, an out-of-state business that conducts
78 operations within the state for purposes of performing work or services related to a declared
79 state disaster or emergency during the disaster period:
80 (a) is not considered to have established a level of presence that would require that
81 business or its out-of-state employees to be subject to any state licensing or registration
82 requirements, including:
83 (i) unemployment insurance;
84 (ii) state or local occupational licensing fees;
85 (iii) public service commission regulation; or
86 (iv) state or local licensing or regulatory requirements; and
87 (b) is exempt from the registration requirements under Title 16, Corporations, Title 42,
88 Names, and Title 48, Partnership.
89 (2) (a) Income taxation related to an out-of-state employee or an out-of-state business
90 is as provided in:
91 (i) Title 59, Chapter 7, Corporate Franchise and Income Taxes; and
92 (ii) Title 59, Chapter 10, Individual Income Tax Act.
93 (b) Sales and use taxation of a transaction during a disaster period is as provided in
94 Title 59, Chapter 12, Sales and Use Tax Act.
95 Section 4. Section 53-2a-1204 is enacted to read:
96 53-2a-1204. Business or employee activity after disaster period.
97 Any out-of-state business or out-of-state employee that remains in the state after the
98 disaster period will become subject to the state's normal standards for establishing presence or
99 residency, or doing business in the state.
100 Section 5. Section 53-2a-1205 is enacted to read:
101 53-2a-1205. Administration -- Notification and procedures.
102 (1) Any out-of-state business that enters the state shall, upon request, provide to the
103 Division of Occupational and Professional Licensing a statement that it is in the state for
104 purposes of responding to the disaster or emergency, which statement shall include the
105 business's:
106 (a) name;
107 (b) state of domicile;
108 (c) principal business address;
109 (d) federal tax identification number;
110 (e) date of entry; and
111 (f) contact information.
112 (2) A registered business in the state shall, upon request, provide the information
113 required in Subsection (1) for any affiliate that enters the state and that is an out-of-state
114 business, including contact information for the business that is registered in the state.
115 (3) An out-of-state business or an out-of-state employee that remains in the state after
116 the disaster period shall complete state and local registration, licensing, and filing requirements
117 that establish the requisite business presence or residency in the state.
118 (4) The Division of Occupational and Professional Licensing shall:
119 (a) make rules necessary to implement Subsection (3);
120 (b) develop and provide forms or online processes; and
121 (c) maintain and make available an annual report of any designations made pursuant to
122 this section.
123 Section 6. Section 59-7-102 is amended to read:
124 59-7-102. Exemptions.
125 (1) Except as provided in this section, the following are exempt from a tax under this
126 chapter:
127 (a) an organization exempt under Section 501, Internal Revenue Code;
128 (b) an organization exempt under Section 528, Internal Revenue Code;
129 (c) an insurance company that is otherwise taxed on the insurance company's premiums
130 under Chapter 9, Taxation of Admitted Insurers;
131 (d) a local building authority as defined in Section 17D-2-102 ;
132 (e) a farmers' cooperative; or
133 (f) a public agency, as defined in Section 11-13-103 , with respect to or as a result of an
134 ownership interest in:
135 (i) a project, as defined in Section 11-13-103 ; or
136 (ii) facilities providing additional project capacity, as defined in Section 11-13-103 .
137 (2) A corporation is exempt from a tax under this chapter:
138 (a) if the corporation is an out-of-state business as defined in Section 53-2a-1202 ; and
139 (b) for income earned:
140 (i) during a disaster period as defined Section 53-2a-1202 ; and
141 (ii) for the purpose of responding to a declared state disaster or emergency as defined
142 in Section 53-2a-1202 .
143 [
144 Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax
145 Act, a person not otherwise subject to the tax imposed by this chapter or Chapter 8 is not
146 subject to a tax imposed by Section 59-7-104 , 59-7-201 , 59-7-701 , or 59-8-104 , because of:
147 (a) that person's ownership of tangible personal property located at the premises of a
148 printer's facility in this state with which the person has contracted for printing; or
149 (b) the activities of the person's employees or agents who are:
150 (i) located solely at the premises of a printer's facility; and
151 (ii) performing services:
152 (A) related to:
153 (I) quality control;
154 (II) distribution; or
155 (III) printing services; and
156 (B) performed by the printer's facility in this state with which the person has contracted
157 for printing.
158 [
159 cooperative, or public agency exempt from this chapter under Subsection (1) is subject to Part
160 8, Unrelated Business Income, to the extent provided in Part 8.
161 [
162 organization described in Subsection (1)(b) is taxable for federal tax purposes under Section
163 528, Internal Revenue Code, the organization's income is also taxable under this chapter.
164 Section 7. Section 59-10-104 is amended to read:
165 59-10-104. Tax basis -- Tax rate -- Exemptions.
166 (1) For taxable years beginning on or after January 1, 2008, a tax is imposed on the
167 state taxable income of a resident individual as provided in this section.
168 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
169 product of:
170 (a) the resident individual's state taxable income for that taxable year; and
171 (b) 5%.
172 (3) This section does not apply to a resident individual exempt from taxation under
173 Section 59-10-104.1 .
174 (4) A resident individual, including a pass-through entity taxpayer, is exempt from a
175 tax under this chapter for income earned or passed through:
176 (a) from an out-of-state business as defined in Section 53-2a-1202 ;
177 (b) during a disaster period as defined in Section 53-2a-1202 ; and
178 (c) as a result of the out-of-state business responding to a declared state disaster or
179 emergency as defined in Section 53-2a-1202 .
180 Section 8. Section 59-10-403 is amended to read:
181 59-10-403. Circumstances under which an employer is not required to deduct
182 and withhold a tax.
183 (1) Notwithstanding any other provision of this chapter, an employer is not required to
184 deduct and withhold any tax under this chapter upon a payment of wages to an employee:
185 (a) if there is in effect with respect to [
186 certificate [
187
188 [
189 employee's immediately preceding taxable year; and
190 [
191 (ii) expects that the employee will not incur liability for a tax imposed under this
192 chapter for [
193 (b) if the employer:
194 (i) is an out-of-state business as defined in Section 53-2a-1202 ; and
195 (ii) pays the wages:
196 (A) during a disaster period as defined in Section 53-2a-1202 ; and
197 (B) as compensation for services performed in response to a declared state disaster or
198 emergency as defined in Section 53-2a-1202 .
199 (2) [
200 Administrative Rulemaking Act, the commission shall provide for the coordination of [
201
202 Section 9. Section 59-12-104 is amended to read:
203 59-12-104. Exemptions.
204 The following sales and uses are exempt from the taxes imposed by this chapter:
205 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
206 under Chapter 13, Motor and Special Fuel Tax Act;
207 (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
208 subdivisions; however, this exemption does not apply to sales of:
209 (a) construction materials except:
210 (i) construction materials purchased by or on behalf of institutions of the public
211 education system as defined in Utah Constitution Article X, Section 2, provided the
212 construction materials are clearly identified and segregated and installed or converted to real
213 property which is owned by institutions of the public education system; and
214 (ii) construction materials purchased by the state, its institutions, or its political
215 subdivisions which are installed or converted to real property by employees of the state, its
216 institutions, or its political subdivisions; or
217 (b) tangible personal property in connection with the construction, operation,
218 maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
219 providing additional project capacity, as defined in Section 11-13-103 ;
220 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
221 (i) the proceeds of each sale do not exceed $1; and
222 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
223 the cost of the item described in Subsection (3)(b) as goods consumed; and
224 (b) Subsection (3)(a) applies to:
225 (i) food and food ingredients; or
226 (ii) prepared food;
227 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
228 (i) alcoholic beverages;
229 (ii) food and food ingredients; or
230 (iii) prepared food;
231 (b) sales of tangible personal property or a product transferred electronically:
232 (i) to a passenger;
233 (ii) by a commercial airline carrier; and
234 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
235 (c) services related to Subsection (4)(a) or (b);
236 (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
237 and equipment:
238 (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
239 North American Industry Classification System of the federal Executive Office of the
240 President, Office of Management and Budget; and
241 (II) for:
242 (Aa) installation in an aircraft, including services relating to the installation of parts or
243 equipment in the aircraft;
244 (Bb) renovation of an aircraft; or
245 (Cc) repair of an aircraft; or
246 (B) for installation in an aircraft operated by a common carrier in interstate or foreign
247 commerce; or
248 (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
249 aircraft operated by a common carrier in interstate or foreign commerce; and
250 (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
251 a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
252 refund:
253 (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
254 (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
255 (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
256 the sale prior to filing for the refund;
257 (iv) for sales and use taxes paid under this chapter on the sale;
258 (v) in accordance with Section 59-1-1410 ; and
259 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
260 the person files for the refund on or before September 30, 2011;
261 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
262 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
263 exhibitor, distributor, or commercial television or radio broadcaster;
264 (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
265 property if the cleaning or washing of the tangible personal property is not assisted cleaning or
266 washing of tangible personal property;
267 (b) if a seller that sells at the same business location assisted cleaning or washing of
268 tangible personal property and cleaning or washing of tangible personal property that is not
269 assisted cleaning or washing of tangible personal property, the exemption described in
270 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
271 or washing of the tangible personal property; and
272 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
273 Utah Administrative Rulemaking Act, the commission may make rules:
274 (i) governing the circumstances under which sales are at the same business location;
275 and
276 (ii) establishing the procedures and requirements for a seller to separately account for
277 sales of assisted cleaning or washing of tangible personal property;
278 (8) sales made to or by religious or charitable institutions in the conduct of their regular
279 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
280 fulfilled;
281 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
282 this state if the vehicle is:
283 (a) not registered in this state; and
284 (b) (i) not used in this state; or
285 (ii) used in this state:
286 (A) if the vehicle is not used to conduct business, for a time period that does not
287 exceed the longer of:
288 (I) 30 days in any calendar year; or
289 (II) the time period necessary to transport the vehicle to the borders of this state; or
290 (B) if the vehicle is used to conduct business, for the time period necessary to transport
291 the vehicle to the borders of this state;
292 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
293 (i) the item is intended for human use; and
294 (ii) (A) a prescription was issued for the item; or
295 (B) the item was purchased by a hospital or other medical facility; and
296 (b) (i) Subsection (10)(a) applies to:
297 (A) a drug;
298 (B) a syringe; or
299 (C) a stoma supply; and
300 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
301 commission may by rule define the terms:
302 (A) "syringe"; or
303 (B) "stoma supply";
304 (11) sales or use of property, materials, or services used in the construction of or
305 incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
306 (12) (a) sales of an item described in Subsection (12)(c) served by:
307 (i) the following if the item described in Subsection (12)(c) is not available to the
308 general public:
309 (A) a church; or
310 (B) a charitable institution;
311 (ii) an institution of higher education if:
312 (A) the item described in Subsection (12)(c) is not available to the general public; or
313 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
314 offered by the institution of higher education; or
315 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
316 (i) a medical facility; or
317 (ii) a nursing facility; and
318 (c) Subsections (12)(a) and (b) apply to:
319 (i) food and food ingredients;
320 (ii) prepared food; or
321 (iii) alcoholic beverages;
322 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
323 or a product transferred electronically by a person:
324 (i) regardless of the number of transactions involving the sale of that tangible personal
325 property or product transferred electronically by that person; and
326 (ii) not regularly engaged in the business of selling that type of tangible personal
327 property or product transferred electronically;
328 (b) this Subsection (13) does not apply if:
329 (i) the sale is one of a series of sales of a character to indicate that the person is
330 regularly engaged in the business of selling that type of tangible personal property or product
331 transferred electronically;
332 (ii) the person holds that person out as regularly engaged in the business of selling that
333 type of tangible personal property or product transferred electronically;
334 (iii) the person sells an item of tangible personal property or product transferred
335 electronically that the person purchased as a sale that is exempt under Subsection (25); or
336 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
337 this state in which case the tax is based upon:
338 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
339 sold; or
340 (B) in the absence of a bill of sale or other written evidence of value, the fair market
341 value of the vehicle or vessel being sold at the time of the sale as determined by the
342 commission; and
343 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
344 commission shall make rules establishing the circumstances under which:
345 (i) a person is regularly engaged in the business of selling a type of tangible personal
346 property or product transferred electronically;
347 (ii) a sale of tangible personal property or a product transferred electronically is one of
348 a series of sales of a character to indicate that a person is regularly engaged in the business of
349 selling that type of tangible personal property or product transferred electronically; or
350 (iii) a person holds that person out as regularly engaged in the business of selling a type
351 of tangible personal property or product transferred electronically;
352 (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
353 July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
354 facility, of the following:
355 (i) machinery and equipment that:
356 (A) are used:
357 (I) for a manufacturing facility except for a manufacturing facility that is a scrap
358 recycler described in Subsection 59-12-102 (64)(b):
359 (Aa) in the manufacturing process;
360 (Bb) to manufacture an item sold as tangible personal property; and
361 (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
362 (14)(a)(i)(A)(I) in the state; or
363 (II) for a manufacturing facility that is a scrap recycler described in Subsection
364 59-12-102 (64)(b):
365 (Aa) to process an item sold as tangible personal property; and
366 (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
367 (14)(a)(i)(A)(II) in the state; and
368 (B) have an economic life of three or more years; and
369 (ii) normal operating repair or replacement parts that:
370 (A) have an economic life of three or more years; and
371 (B) are used:
372 (I) for a manufacturing facility except for a manufacturing facility that is a scrap
373 recycler described in Subsection 59-12-102 (64)(b):
374 (Aa) in the manufacturing process; and
375 (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
376 state; or
377 (II) for a manufacturing facility that is a scrap recycler described in Subsection
378 59-12-102 (64)(b):
379 (Aa) to process an item sold as tangible personal property; and
380 (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
381 state;
382 (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
383 manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
384 of the following:
385 (i) machinery and equipment that:
386 (A) are used:
387 (I) in the manufacturing process;
388 (II) to manufacture an item sold as tangible personal property; and
389 (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
390 (14)(b) in the state; and
391 (B) have an economic life of three or more years; and
392 (ii) normal operating repair or replacement parts that:
393 (A) are used:
394 (I) in the manufacturing process; and
395 (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
396 (B) have an economic life of three or more years;
397 (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
398 by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
399 NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
400 Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
401 of the 2002 North American Industry Classification System of the federal Executive Office of
402 the President, Office of Management and Budget, of the following:
403 (i) machinery and equipment that:
404 (A) are used:
405 (I) (Aa) in the production process, other than the production of real property; or
406 (Bb) in research and development; and
407 (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
408 in the state; and
409 (B) have an economic life of three or more years; and
410 (ii) normal operating repair or replacement parts that:
411 (A) have an economic life of three or more years; and
412 (B) are used in:
413 (I) (Aa) the production process, except for the production of real property; and
414 (Bb) an establishment described in this Subsection (14)(c) in the state; or
415 (II) (Aa) research and development; and
416 (Bb) in an establishment described in this Subsection (14)(c) in the state;
417 (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
418 but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
419 Search Portals, of the 2002 North American Industry Classification System of the federal
420 Executive Office of the President, Office of Management and Budget, of the following:
421 (A) machinery and equipment that:
422 (I) are used in the operation of the web search portal;
423 (II) have an economic life of three or more years; and
424 (III) are used in a new or expanding establishment described in this Subsection (14)(d)
425 in the state; and
426 (B) normal operating repair or replacement parts that:
427 (I) are used in the operation of the web search portal;
428 (II) have an economic life of three or more years; and
429 (III) are used in a new or expanding establishment described in this Subsection (14)(d)
430 in the state; or
431 (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
432 an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
433 American Industry Classification System of the federal Executive Office of the President,
434 Office of Management and Budget, of the following:
435 (A) machinery and equipment that:
436 (I) are used in the operation of the web search portal; and
437 (II) have an economic life of three or more years; and
438 (B) normal operating repair or replacement parts that:
439 (I) are used in the operation of the web search portal; and
440 (II) have an economic life of three or more years;
441 (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
442 Utah Administrative Rulemaking Act, the commission:
443 (i) shall by rule define the term "establishment"; and
444 (ii) may by rule define what constitutes:
445 (A) processing an item sold as tangible personal property;
446 (B) the production process, except for the production of real property;
447 (C) research and development; or
448 (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
449 (f) on or before October 1, 2011, and every five years after October 1, 2011, the
450 commission shall:
451 (i) review the exemptions described in this Subsection (14) and make
452 recommendations to the Revenue and Taxation Interim Committee concerning whether the
453 exemptions should be continued, modified, or repealed; and
454 (ii) include in its report:
455 (A) an estimate of the cost of the exemptions;
456 (B) the purpose and effectiveness of the exemptions; and
457 (C) the benefits of the exemptions to the state;
458 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
459 (i) tooling;
460 (ii) special tooling;
461 (iii) support equipment;
462 (iv) special test equipment; or
463 (v) parts used in the repairs or renovations of tooling or equipment described in
464 Subsections (15)(a)(i) through (iv); and
465 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
466 (i) the tooling, equipment, or parts are used or consumed exclusively in the
467 performance of any aerospace or electronics industry contract with the United States
468 government or any subcontract under that contract; and
469 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
470 title to the tooling, equipment, or parts is vested in the United States government as evidenced
471 by:
472 (A) a government identification tag placed on the tooling, equipment, or parts; or
473 (B) listing on a government-approved property record if placing a government
474 identification tag on the tooling, equipment, or parts is impractical;
475 (16) sales of newspapers or newspaper subscriptions;
476 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
477 product transferred electronically traded in as full or part payment of the purchase price, except
478 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
479 trade-ins are limited to other vehicles only, and the tax is based upon:
480 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
481 vehicle being traded in; or
482 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
483 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
484 commission; and
485 (b) Subsection (17)(a) does not apply to the following items of tangible personal
486 property or products transferred electronically traded in as full or part payment of the purchase
487 price:
488 (i) money;
489 (ii) electricity;
490 (iii) water;
491 (iv) gas; or
492 (v) steam;
493 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
494 or a product transferred electronically used or consumed primarily and directly in farming
495 operations, regardless of whether the tangible personal property or product transferred
496 electronically:
497 (A) becomes part of real estate; or
498 (B) is installed by a:
499 (I) farmer;
500 (II) contractor; or
501 (III) subcontractor; or
502 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
503 product transferred electronically if the tangible personal property or product transferred
504 electronically is exempt under Subsection (18)(a)(i); and
505 (b) amounts paid or charged for the following are subject to the taxes imposed by this
506 chapter:
507 (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
508 incidental to farming:
509 (I) machinery;
510 (II) equipment;
511 (III) materials; or
512 (IV) supplies; and
513 (B) tangible personal property that is considered to be used in a manner that is
514 incidental to farming includes:
515 (I) hand tools; or
516 (II) maintenance and janitorial equipment and supplies;
517 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
518 transferred electronically if the tangible personal property or product transferred electronically
519 is used in an activity other than farming; and
520 (B) tangible personal property or a product transferred electronically that is considered
521 to be used in an activity other than farming includes:
522 (I) office equipment and supplies; or
523 (II) equipment and supplies used in:
524 (Aa) the sale or distribution of farm products;
525 (Bb) research; or
526 (Cc) transportation; or
527 (iii) a vehicle required to be registered by the laws of this state during the period
528 ending two years after the date of the vehicle's purchase;
529 (19) sales of hay;
530 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
531 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
532 garden, farm, or other agricultural produce is sold by:
533 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
534 agricultural produce;
535 (b) an employee of the producer described in Subsection (20)(a); or
536 (c) a member of the immediate family of the producer described in Subsection (20)(a);
537 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
538 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
539 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
540 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
541 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
542 manufacturer, processor, wholesaler, or retailer;
543 (23) a product stored in the state for resale;
544 (24) (a) purchases of a product if:
545 (i) the product is:
546 (A) purchased outside of this state;
547 (B) brought into this state:
548 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
549 (II) by a nonresident person who is not living or working in this state at the time of the
550 purchase;
551 (C) used for the personal use or enjoyment of the nonresident person described in
552 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
553 (D) not used in conducting business in this state; and
554 (ii) for:
555 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
556 the product for a purpose for which the product is designed occurs outside of this state;
557 (B) a boat, the boat is registered outside of this state; or
558 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
559 outside of this state;
560 (b) the exemption provided for in Subsection (24)(a) does not apply to:
561 (i) a lease or rental of a product; or
562 (ii) a sale of a vehicle exempt under Subsection (33); and
563 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
564 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
565 following:
566 (i) conducting business in this state if that phrase has the same meaning in this
567 Subsection (24) as in Subsection (63);
568 (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
569 as in Subsection (63); or
570 (iii) a purpose for which a product is designed if that phrase has the same meaning in
571 this Subsection (24) as in Subsection (63);
572 (25) a product purchased for resale in this state, in the regular course of business, either
573 in its original form or as an ingredient or component part of a manufactured or compounded
574 product;
575 (26) a product upon which a sales or use tax was paid to some other state, or one of its
576 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
577 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
578 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
579 Act;
580 (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
581 person for use in compounding a service taxable under the subsections;
582 (28) purchases made in accordance with the special supplemental nutrition program for
583 women, infants, and children established in 42 U.S.C. Sec. 1786;
584 (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
585 refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
586 of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
587 Manual of the federal Executive Office of the President, Office of Management and Budget;
588 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
589 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
590 (a) not registered in this state; and
591 (b) (i) not used in this state; or
592 (ii) used in this state:
593 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
594 time period that does not exceed the longer of:
595 (I) 30 days in any calendar year; or
596 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
597 the borders of this state; or
598 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
599 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
600 state;
601 (31) sales of aircraft manufactured in Utah;
602 (32) amounts paid for the purchase of telecommunications service for purposes of
603 providing telecommunications service;
604 (33) sales, leases, or uses of the following:
605 (a) a vehicle by an authorized carrier; or
606 (b) tangible personal property that is installed on a vehicle:
607 (i) sold or leased to or used by an authorized carrier; and
608 (ii) before the vehicle is placed in service for the first time;
609 (34) (a) 45% of the sales price of any new manufactured home; and
610 (b) 100% of the sales price of any used manufactured home;
611 (35) sales relating to schools and fundraising sales;
612 (36) sales or rentals of durable medical equipment if:
613 (a) a person presents a prescription for the durable medical equipment; and
614 (b) the durable medical equipment is used for home use only;
615 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
616 Section 72-11-102 ; and
617 (b) the commission shall by rule determine the method for calculating sales exempt
618 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
619 (38) sales to a ski resort of:
620 (a) snowmaking equipment;
621 (b) ski slope grooming equipment;
622 (c) passenger ropeways as defined in Section 72-11-102 ; or
623 (d) parts used in the repairs or renovations of equipment or passenger ropeways
624 described in Subsections (38)(a) through (c);
625 (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
626 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
627 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
628 59-12-102 ;
629 (b) if a seller that sells or rents at the same business location the right to use or operate
630 for amusement, entertainment, or recreation one or more unassisted amusement devices and
631 one or more assisted amusement devices, the exemption described in Subsection (40)(a)
632 applies if the seller separately accounts for the sales or rentals of the right to use or operate for
633 amusement, entertainment, or recreation for the assisted amusement devices; and
634 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
635 Utah Administrative Rulemaking Act, the commission may make rules:
636 (i) governing the circumstances under which sales are at the same business location;
637 and
638 (ii) establishing the procedures and requirements for a seller to separately account for
639 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
640 assisted amusement devices;
641 (41) (a) sales of photocopies by:
642 (i) a governmental entity; or
643 (ii) an entity within the state system of public education, including:
644 (A) a school; or
645 (B) the State Board of Education; or
646 (b) sales of publications by a governmental entity;
647 (42) amounts paid for admission to an athletic event at an institution of higher
648 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
649 20 U.S.C. Sec. 1681 et seq.;
650 (43) (a) sales made to or by:
651 (i) an area agency on aging; or
652 (ii) a senior citizen center owned by a county, city, or town; or
653 (b) sales made by a senior citizen center that contracts with an area agency on aging;
654 (44) sales or leases of semiconductor fabricating, processing, research, or development
655 materials regardless of whether the semiconductor fabricating, processing, research, or
656 development materials:
657 (a) actually come into contact with a semiconductor; or
658 (b) ultimately become incorporated into real property;
659 (45) an amount paid by or charged to a purchaser for accommodations and services
660 described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
661 59-12-104.2 ;
662 (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
663 sports event registration certificate in accordance with Section 41-3-306 for the event period
664 specified on the temporary sports event registration certificate;
665 (47) (a) sales or uses of electricity, if the sales or uses are made under a tariff adopted
666 by the Public Service Commission of Utah only for purchase of electricity produced from a
667 new alternative energy source, as designated in the tariff by the Public Service Commission of
668 Utah; and
669 (b) the exemption under Subsection (47)(a) applies to the portion of the tariff rate a
670 customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under
671 the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
672 (48) sales or rentals of mobility enhancing equipment if a person presents a
673 prescription for the mobility enhancing equipment;
674 (49) sales of water in a:
675 (a) pipe;
676 (b) conduit;
677 (c) ditch; or
678 (d) reservoir;
679 (50) sales of currency or coins that constitute legal tender of a state, the United States,
680 or a foreign nation;
681 (51) (a) sales of an item described in Subsection (51)(b) if the item:
682 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
683 (ii) has a gold, silver, or platinum content of 50% or more; and
684 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
685 (i) ingot;
686 (ii) bar;
687 (iii) medallion; or
688 (iv) decorative coin;
689 (52) amounts paid on a sale-leaseback transaction;
690 (53) sales of a prosthetic device:
691 (a) for use on or in a human; and
692 (b) (i) for which a prescription is required; or
693 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
694 (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
695 machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
696 or equipment is primarily used in the production or postproduction of the following media for
697 commercial distribution:
698 (i) a motion picture;
699 (ii) a television program;
700 (iii) a movie made for television;
701 (iv) a music video;
702 (v) a commercial;
703 (vi) a documentary; or
704 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
705 commission by administrative rule made in accordance with Subsection (54)(d); or
706 (b) purchases, leases, or rentals of machinery or equipment by an establishment
707 described in Subsection (54)(c) that is used for the production or postproduction of the
708 following are subject to the taxes imposed by this chapter:
709 (i) a live musical performance;
710 (ii) a live news program; or
711 (iii) a live sporting event;
712 (c) the following establishments listed in the 1997 North American Industry
713 Classification System of the federal Executive Office of the President, Office of Management
714 and Budget, apply to Subsections (54)(a) and (b):
715 (i) NAICS Code 512110; or
716 (ii) NAICS Code 51219; and
717 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
718 commission may by rule:
719 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
720 or
721 (ii) define:
722 (A) "commercial distribution";
723 (B) "live musical performance";
724 (C) "live news program"; or
725 (D) "live sporting event";
726 (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
727 on or before June 30, 2027, of tangible personal property that:
728 (i) is leased or purchased for or by a facility that:
729 (A) is an alternative energy electricity production facility;
730 (B) is located in the state; and
731 (C) (I) becomes operational on or after July 1, 2004; or
732 (II) has its generation capacity increased by one or more megawatts on or after July 1,
733 2004, as a result of the use of the tangible personal property;
734 (ii) has an economic life of five or more years; and
735 (iii) is used to make the facility or the increase in capacity of the facility described in
736 Subsection (55)(a)(i) operational up to the point of interconnection with an existing
737 transmission grid including:
738 (A) a wind turbine;
739 (B) generating equipment;
740 (C) a control and monitoring system;
741 (D) a power line;
742 (E) substation equipment;
743 (F) lighting;
744 (G) fencing;
745 (H) pipes; or
746 (I) other equipment used for locating a power line or pole; and
747 (b) this Subsection (55) does not apply to:
748 (i) tangible personal property used in construction of:
749 (A) a new alternative energy electricity production facility; or
750 (B) the increase in the capacity of an alternative energy electricity production facility;
751 (ii) contracted services required for construction and routine maintenance activities;
752 and
753 (iii) unless the tangible personal property is used or acquired for an increase in capacity
754 of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
755 acquired after:
756 (A) the alternative energy electricity production facility described in Subsection
757 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
758 (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
759 in Subsection (55)(a)(iii);
760 (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
761 on or before June 30, 2027, of tangible personal property that:
762 (i) is leased or purchased for or by a facility that:
763 (A) is a waste energy production facility;
764 (B) is located in the state; and
765 (C) (I) becomes operational on or after July 1, 2004; or
766 (II) has its generation capacity increased by one or more megawatts on or after July 1,
767 2004, as a result of the use of the tangible personal property;
768 (ii) has an economic life of five or more years; and
769 (iii) is used to make the facility or the increase in capacity of the facility described in
770 Subsection (56)(a)(i) operational up to the point of interconnection with an existing
771 transmission grid including:
772 (A) generating equipment;
773 (B) a control and monitoring system;
774 (C) a power line;
775 (D) substation equipment;
776 (E) lighting;
777 (F) fencing;
778 (G) pipes; or
779 (H) other equipment used for locating a power line or pole; and
780 (b) this Subsection (56) does not apply to:
781 (i) tangible personal property used in construction of:
782 (A) a new waste energy facility; or
783 (B) the increase in the capacity of a waste energy facility;
784 (ii) contracted services required for construction and routine maintenance activities;
785 and
786 (iii) unless the tangible personal property is used or acquired for an increase in capacity
787 described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
788 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
789 described in Subsection (56)(a)(iii); or
790 (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
791 in Subsection (56)(a)(iii);
792 (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
793 or before June 30, 2027, of tangible personal property that:
794 (i) is leased or purchased for or by a facility that:
795 (A) is located in the state;
796 (B) produces fuel from alternative energy, including:
797 (I) methanol; or
798 (II) ethanol; and
799 (C) (I) becomes operational on or after July 1, 2004; or
800 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
801 a result of the installation of the tangible personal property;
802 (ii) has an economic life of five or more years; and
803 (iii) is installed on the facility described in Subsection (57)(a)(i);
804 (b) this Subsection (57) does not apply to:
805 (i) tangible personal property used in construction of:
806 (A) a new facility described in Subsection (57)(a)(i); or
807 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
808 (ii) contracted services required for construction and routine maintenance activities;
809 and
810 (iii) unless the tangible personal property is used or acquired for an increase in capacity
811 described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
812 (A) the facility described in Subsection (57)(a)(i) is operational; or
813 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
814 (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
815 product transferred electronically to a person within this state if that tangible personal property
816 or product transferred electronically is subsequently shipped outside the state and incorporated
817 pursuant to contract into and becomes a part of real property located outside of this state;
818 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
819 state or political entity to which the tangible personal property is shipped imposes a sales, use,
820 gross receipts, or other similar transaction excise tax on the transaction against which the other
821 state or political entity allows a credit for sales and use taxes imposed by this chapter; and
822 (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
823 a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
824 refund:
825 (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
826 (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
827 which the sale is made;
828 (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
829 sale prior to filing for the refund;
830 (iv) for sales and use taxes paid under this chapter on the sale;
831 (v) in accordance with Section 59-1-1410 ; and
832 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
833 the person files for the refund on or before June 30, 2011;
834 (59) purchases:
835 (a) of one or more of the following items in printed or electronic format:
836 (i) a list containing information that includes one or more:
837 (A) names; or
838 (B) addresses; or
839 (ii) a database containing information that includes one or more:
840 (A) names; or
841 (B) addresses; and
842 (b) used to send direct mail;
843 (60) redemptions or repurchases of a product by a person if that product was:
844 (a) delivered to a pawnbroker as part of a pawn transaction; and
845 (b) redeemed or repurchased within the time period established in a written agreement
846 between the person and the pawnbroker for redeeming or repurchasing the product;
847 (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
848 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
849 and
850 (ii) has a useful economic life of one or more years; and
851 (b) the following apply to Subsection (61)(a):
852 (i) telecommunications enabling or facilitating equipment, machinery, or software;
853 (ii) telecommunications equipment, machinery, or software required for 911 service;
854 (iii) telecommunications maintenance or repair equipment, machinery, or software;
855 (iv) telecommunications switching or routing equipment, machinery, or software; or
856 (v) telecommunications transmission equipment, machinery, or software;
857 (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
858 personal property or a product transferred electronically that are used in the research and
859 development of alternative energy technology; and
860 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
861 commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
862 purchases of tangible personal property or a product transferred electronically that are used in
863 the research and development of alternative energy technology;
864 (63) (a) purchases of tangible personal property or a product transferred electronically
865 if:
866 (i) the tangible personal property or product transferred electronically is:
867 (A) purchased outside of this state;
868 (B) brought into this state at any time after the purchase described in Subsection
869 (63)(a)(i)(A); and
870 (C) used in conducting business in this state; and
871 (ii) for:
872 (A) tangible personal property or a product transferred electronically other than the
873 tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
874 for a purpose for which the property is designed occurs outside of this state; or
875 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
876 outside of this state;
877 (b) the exemption provided for in Subsection (63)(a) does not apply to:
878 (i) a lease or rental of tangible personal property or a product transferred electronically;
879 or
880 (ii) a sale of a vehicle exempt under Subsection (33); and
881 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
882 purposes of Subsection (63)(a), the commission may by rule define what constitutes the
883 following:
884 (i) conducting business in this state if that phrase has the same meaning in this
885 Subsection (63) as in Subsection (24);
886 (ii) the first use of tangible personal property or a product transferred electronically if
887 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
888 (iii) a purpose for which tangible personal property or a product transferred
889 electronically is designed if that phrase has the same meaning in this Subsection (63) as in
890 Subsection (24);
891 (64) sales of disposable home medical equipment or supplies if:
892 (a) a person presents a prescription for the disposable home medical equipment or
893 supplies;
894 (b) the disposable home medical equipment or supplies are used exclusively by the
895 person to whom the prescription described in Subsection (64)(a) is issued; and
896 (c) the disposable home medical equipment and supplies are listed as eligible for
897 payment under:
898 (i) Title XVIII, federal Social Security Act; or
899 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
900 (65) sales:
901 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
902 District Act; or
903 (b) of tangible personal property to a subcontractor of a public transit district, if the
904 tangible personal property is:
905 (i) clearly identified; and
906 (ii) installed or converted to real property owned by the public transit district;
907 (66) sales of construction materials:
908 (a) purchased on or after July 1, 2010;
909 (b) purchased by, on behalf of, or for the benefit of an international airport:
910 (i) located within a county of the first class; and
911 (ii) that has a United States customs office on its premises; and
912 (c) if the construction materials are:
913 (i) clearly identified;
914 (ii) segregated; and
915 (iii) installed or converted to real property:
916 (A) owned or operated by the international airport described in Subsection (66)(b); and
917 (B) located at the international airport described in Subsection (66)(b);
918 (67) sales of construction materials:
919 (a) purchased on or after July 1, 2008;
920 (b) purchased by, on behalf of, or for the benefit of a new airport:
921 (i) located within a county of the second class; and
922 (ii) that is owned or operated by a city in which an airline as defined in Section
923 59-2-102 is headquartered; and
924 (c) if the construction materials are:
925 (i) clearly identified;
926 (ii) segregated; and
927 (iii) installed or converted to real property:
928 (A) owned or operated by the new airport described in Subsection (67)(b);
929 (B) located at the new airport described in Subsection (67)(b); and
930 (C) as part of the construction of the new airport described in Subsection (67)(b);
931 (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
932 (69) purchases and sales described in Section 63H-4-111 ;
933 (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
934 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
935 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
936 lists a state or country other than this state as the location of registry of the fixed wing turbine
937 powered aircraft; or
938 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
939 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
940 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
941 lists a state or country other than this state as the location of registry of the fixed wing turbine
942 powered aircraft;
943 (71) subject to Section 59-12-104.4 , sales of a textbook for a higher education course:
944 (a) to a person admitted to an institution of higher education; and
945 (b) by a seller, other than a bookstore owned by an institution of higher education, if
946 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
947 textbook for a higher education course;
948 (72) a license fee or tax a municipality imposes in accordance with Subsection
949 10-1-203 (5) on a purchaser from a business for which the municipality provides an enhanced
950 level of municipal services;
951 (73) amounts paid or charged for construction materials used in the construction of a
952 new or expanding life science research and development facility in the state, if the construction
953 materials are:
954 (a) clearly identified;
955 (b) segregated; and
956 (c) installed or converted to real property;
957 (74) amounts paid or charged for:
958 (a) a purchase or lease of machinery and equipment that:
959 (i) are used in performing qualified research:
960 (A) as defined in Section 59-7-612 ;
961 (B) in the state; and
962 (C) with respect to which the purchaser pays or incurs a qualified research expense as
963 defined in Section 59-7-612 ; and
964 (ii) have an economic life of three or more years; and
965 (b) normal operating repair or replacement parts:
966 (i) for the machinery and equipment described in Subsection (74)(a); and
967 (ii) that have an economic life of three or more years;
968 (75) a sale or lease of tangible personal property used in the preparation of prepared
969 food if:
970 (a) for a sale:
971 (i) the ownership of the seller and the ownership of the purchaser are identical; and
972 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
973 tangible personal property prior to making the sale; or
974 (b) for a lease:
975 (i) the ownership of the lessor and the ownership of the lessee are identical; and
976 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
977 personal property prior to making the lease;
978 (76) (a) purchases of machinery or equipment if:
979 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
980 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
981 System of the federal Executive Office of the President, Office of Management and Budget;
982 (ii) the machinery or equipment:
983 (A) has an economic life of three or more years; and
984 (B) is used by one or more persons who pay admission or user fees described in
985 Subsection 59-12-103 (1)(f) to the purchaser of the machinery and equipment; and
986 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
987 (A) amounts paid or charged as admission or user fees described in Subsection
988 59-12-103 (1)(f); and
989 (B) subject to taxation under this chapter;
990 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
991 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
992 previous calendar quarter is:
993 (i) amounts paid or charged as admission or user fees described in Subsection
994 59-12-103 (1)(f); and
995 (ii) subject to taxation under this chapter; and
996 (c) on or before the November 2018 interim meeting, and every five years after the
997 November 2018 interim meeting, the commission shall review the exemption provided in this
998 Subsection (76) and report to the Revenue and Taxation Interim Committee on:
999 (i) the revenue lost to the state and local taxing jurisdictions as a result of the
1000 exemption;
1001 (ii) the purpose and effectiveness of the exemption; and
1002 (iii) whether the exemption benefits the state;
1003 (77) purchases of a short-term lodging consumable by a business that provides
1004 accommodations and services described in Subsection 59-12-103 (1)(i);
1005 (78) amounts paid or charged to access a database:
1006 (a) if the primary purpose for accessing the database is to view or retrieve information
1007 from the database; and
1008 (b) not including amounts paid or charged for a:
1009 (i) digital audiowork;
1010 (ii) digital audio-visual work; or
1011 (iii) digital book;
1012 (79) amounts paid or charged for a purchase or lease made by an electronic financial
1013 payment service, of:
1014 (a) machinery and equipment that:
1015 (i) are used in the operation of the electronic financial payment service; and
1016 (ii) have an economic life of three or more years; and
1017 (b) normal operating repair or replacement parts that:
1018 (i) are used in the operation of the electronic financial payment service; and
1019 (ii) have an economic life of three or more years; [
1020 (80) beginning on April 1, 2013, sales of a fuel cell as defined in Section 54-15-102 [
1021 and
1022 (81) amounts paid or charged for a purchase or lease of tangible personal property or a
1023 product transferred electronically if the tangible personal property or product transferred
1024 electronically:
1025 (a) is stored, used, or consumed in the state; and
1026 (b) is brought into the state from another state;
1027 (i) during a disaster period as defined in Section 53-2a-1202 :
1028 (ii) by an out-of-state business as defined in Section 53-2a-1202 ;
1029 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202 ; and
1030 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202 .
1031 Section 10. Effective date.
1032 (1) Except as provided in Subsection (2), this bill takes effect on May 13, 2014.
1033 (2) The actions affecting Section 59-12-104 take effect on July 1, 2014.
1034 Section 11. Retrospective operation.
1035 The actions affecting the following sections have retrospective operation for a taxable
1036 year beginning on or after January 1, 2014:
1037 (1) Section 59-7-102 ;
1038 (2) Section 59-10-104 ; and
1039 (3) Section 59-10-403 .
Legislative Review Note
as of 1-29-14 12:32 PM