S.B. 67

             1     

AMENDMENTS TO PUBLIC UTILITIES TITLE

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Don L. Ipson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends Title 54, Public Utilities.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms and modifies definitions, including addressing entities that are not
             13      included in the definition of "electrical corporation" or "public utility";
             14          .    provides that a public utility is not required to furnish or provide bundled electric
             15      service under certain circumstances;
             16          .    provides procedures for certain customers to transfer service from a public utility to
             17      a non-utility energy supplier;
             18          .    addresses the applicability of certain provisions within the Public Utilities title; and
             19          .    makes technical and conforming changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides effective dates.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26           17B-2a-406 , as last amended by Laws of Utah 2009, Chapter 384
             27           54-2-1 , as last amended by Laws of Utah 2010, Chapters 302 and 390


             28           54-3-8 , as last amended by Laws of Utah 2010, Chapter 390
             29           54-4-2 , as last amended by Laws of Utah 2010, Chapter 390
             30           54-15-108 , as enacted by Laws of Utah 2010, Chapter 302
             31           59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2013, Chapters
             32      229, 234, 266, and 441
             33           59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2013, Chapters 229,
             34      234, 266, and 441
             35      ENACTS:
             36           54-3-1.1 , Utah Code Annotated 1953
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 17B-2a-406 is amended to read:
             40           17B-2a-406. Improvement districts providing electric service -- Public Service
             41      Commission jurisdiction -- Exceptions.
             42          (1) As used in this section:
             43          (a) "Commission" means the Public Service Commission of Utah established in
             44      Section 54-1-1 .
             45          (b) "Electric corporation" has the same meaning as "electrical corporation" defined in
             46      Section 54-2-1 .
             47          (c) "Electric improvement district" means an improvement district that provides
             48      electric service as authorized under Subsection 17B-2a-403 (1)(a)(iv).
             49          (d) "Stranded asset" means an asset that:
             50          (i) an electric corporation owns and operates;
             51          (ii) is designed to serve an area that is:
             52          (A) within the electric corporation's certificated service area before the area is removed
             53      from the certificated service area by commission order as provided in Subsection
             54      (3)(b)(i)(B)(II); and
             55          (B) within the boundary of an electric improvement district; and
             56          (iii) will not be useful to or used by the electric corporation after removal of the area
             57      from the electric corporation's certificated service area.
             58          (2) An electric improvement district is a public utility and subject to the jurisdiction of


             59      the commission.
             60          (3) (a) Except as provided in Subsection (3)(b), an electric improvement district:
             61          (i) may include only an area where:
             62          (A) no retail electricity has been provided to commercial, industrial, residential, and
             63      other users of electricity from an investor-owned utility within any part of an area certificated
             64      by the commission or an area adjacent to that area, municipal agency, or electric cooperative
             65      within the five years immediately preceding September 1, 1985; and
             66          (B) electric service is provided to at least one user of electricity within the electric
             67      service district as of September 1, 1985; and
             68          (ii) shall have filed an application for certification and received approval by the
             69      commission by September 1, 1986.
             70          (b) (i) An electric improvement district created after May 11, 2009 may provide
             71      electric service within the boundary of the improvement district if:
             72          (A) no part of the boundary of the electric improvement district is closer than 40 miles
             73      to an existing service line of an electric corporation;
             74          (B) (I) no part of the area within the boundary of the electric improvement district is
             75      within the certificated service area of an electric corporation; or
             76          (II) the area within the boundary of the electric improvement district that is also within
             77      the certificated service area of an electric corporation is removed from the electric corporation's
             78      certificated service area by commission order in a proceeding initiated by a petition filed by
             79      and at the discretion of the electric corporation; and
             80          (C) before January 1, 2010, the electric improvement district receives a certificate of
             81      public convenience and necessity from the commission authorizing the electric improvement
             82      district to provide electric service to the area within the boundary of the electric improvement
             83      district.
             84          (ii) An electric improvement district that provides electric service as provided in
             85      Subsection (3)(b)(i) shall pay an electric corporation an amount equal to the fair market value
             86      of each stranded asset of the electric corporation.
             87          (4) Nothing in this part may be construed to give the commission jurisdiction over:
             88          (a) an improvement district, other than an electric improvement district;
             89          (b) a municipality; or


             90          (c) an association of municipalities organized under Title 11, Chapter 13, Interlocal
             91      Cooperation Act.
             92          (5) Before an electric improvement district serves any customer, the electric
             93      improvement district shall obtain a certificate of public convenience and necessity from the
             94      commission.
             95          (6) (a) Section 54-7-12 does not apply to rate changes of an electric improvement
             96      district if:
             97          (i) the district is organized for the purpose of distributing electricity to customers
             98      within the boundary of the district on a not-for-profit basis;
             99          (ii) the schedule of new rates or other change that results in new rates has been
             100      approved by the board of trustees of the district;
             101          (iii) prior to the implementation of any rate increases, the district first holds a public
             102      meeting for all its customers to whom mailed notice of the meeting is sent at least 10 days prior
             103      to the meeting; and
             104          (iv) the district has filed the schedule of new rates or other change with the
             105      commission.
             106          (b) The commission shall make the district's schedule of new rates or other change
             107      available for public inspection.
             108          Section 2. Section 54-2-1 is amended to read:
             109           54-2-1. Definitions.
             110          As used in this title:
             111          (1) "Avoided costs" means the incremental costs to an electrical corporation of electric
             112      energy or capacity or both that, due to the purchase of electric energy or capacity or both from
             113      small power production or cogeneration facilities, the electrical corporation would not have to
             114      generate itself or purchase from another electrical corporation.
             115          (2) "Bundled electric service" means electricity, and the necessary transmission and
             116      distribution services, that a public utility provides as a package.
             117          [(2)] (3) "Cogeneration facility":
             118          (a) means a facility that produces:
             119          (i) electric energy; and
             120          (ii) steam or forms of useful energy, including heat, that are used for industrial,


             121      commercial, heating, or cooling purposes; and
             122          (b) is a qualifying cogeneration facility under federal law.
             123          [(3)] (4) "Commission" means the Public Service Commission of Utah.
             124          [(4)] (5) "Commissioner" means a member of the commission.
             125          [(5)] (6) (a) "Corporation" includes an association and a joint stock company having
             126      any powers or privileges not possessed by individuals or partnerships.
             127          (b) "Corporation" does not include towns, cities, counties, conservancy districts,
             128      improvement districts, or other governmental units created or organized under any general or
             129      special law of this state.
             130          [(6)] (7) "Distribution electrical cooperative" includes an electrical corporation that:
             131          (a) is a cooperative;
             132          (b) conducts a business that includes the retail distribution of electricity the cooperative
             133      purchases or generates for the cooperative's members; and
             134          (c) is required to allocate or distribute savings in excess of additions to reserves and
             135      surplus on the basis of patronage to the cooperative's:
             136          (i) members; or
             137          (ii) patrons.
             138          [(7)] (8) (a) "Electrical corporation" includes every corporation, cooperative
             139      association, and person, their lessees, trustees, and receivers, owning, controlling, operating, or
             140      managing any electric plant, or in any way furnishing electric power for public service or to its
             141      consumers or members for domestic, commercial, or industrial use, within this state[, except].
             142          (b) "Electrical corporation" does not include:
             143          (i) an independent energy [producers, and except] producer;
             144          (ii) where electricity is generated on or distributed by the producer solely for the
             145      producer's own use, or the use of the producer's tenants or affiliates, or for the use of members
             146      of an association of unit owners formed under Title 57, Chapter 8, Condominium Ownership
             147      Act, and not for sale to the public generally[, and except];
             148          (iii) where the electricity [generated] is consumed by an owner, lessor, or interest
             149      holder, or by an affiliate or tenant of an owner, lessor, or interest holder, [who] if that owner,
             150      lessor, interest holder, affiliate, or tenant has provided at least $25,000,000 in value, including
             151      credit support, relating to the electric plant furnishing [the] electricity [and whose consumption


             152      does not exceed its long-term entitlement in the plant under a long-term arrangement other than
             153      a power purchase agreement, except a power purchase agreement with an electrical
             154      corporation.] in this state; or
             155          (iv) a non-utility energy supplier that sells or provides electricity to an eligible
             156      customer that has transferred the eligible customer's service to the non-utility energy supplier in
             157      accordance with Section 54-3-1.1 .
             158          [(8)] (9) "Electric plant" includes all real estate, fixtures, and personal property owned,
             159      controlled, operated, or managed in connection with or to facilitate the production, generation,
             160      transmission, delivery, or furnishing of electricity for light, heat, or power, and all conduits,
             161      ducts, or other devices, materials, apparatus, or property for containing, holding, or carrying
             162      conductors used or to be used for the transmission of electricity for light, heat, or power.
             163          (10) "Eligible customer" includes a corporation, cooperative association, or person, or
             164      an affiliate, lessee, receiver, or trustee of a corporation, cooperative association, or person, if
             165      that corporation, cooperative association, person, affiliate, lessee, receiver, or trustee owns,
             166      controls, operates, or manages, in whole or in part, an electric generation plant that:
             167          (a) has a capacity of greater than 60 megawatts; and
             168          (b) provides service to the producer for the producer's own use or the use of a tenant or
             169      affiliate of the producer.
             170          [(9)] (11) "Gas corporation" includes every corporation and person, their lessees,
             171      trustees, and receivers, owning, controlling, operating, or managing any gas plant for public
             172      service within this state or for the selling or furnishing of natural gas to any consumer or
             173      consumers within the state for domestic, commercial, or industrial use, except in the situation
             174      that:
             175          (a) gas is made or produced on, and distributed by the maker or producer through,
             176      private property:
             177          (i) solely for the maker's or producer's own use or the use of the maker's or producer's
             178      tenants; and
             179          (ii) not for sale to others;
             180          (b) gas is compressed on private property solely for the owner's own use or the use of
             181      the owner's employees as a motor vehicle fuel; or
             182          (c) gas is compressed by a retailer of motor vehicle fuel on the retailer's property solely


             183      for sale as a motor vehicle fuel.
             184          [(10)] (12) "Gas plant" includes all real estate, fixtures, and personal property owned,
             185      controlled, operated, or managed in connection with or to facilitate the production, generation,
             186      transmission, delivery, or furnishing of gas, natural or manufactured, for light, heat, or power.
             187          [(11)] (13) "Heat corporation" includes every corporation and person, their lessees,
             188      trustees, and receivers, owning, controlling, operating, or managing any heating plant for public
             189      service within this state.
             190          [(12)] (14) (a) "Heating plant" includes all real estate, fixtures, machinery, appliances,
             191      and personal property controlled, operated, or managed in connection with or to facilitate the
             192      production, generation, transmission, delivery, or furnishing of artificial heat.
             193          (b) "Heating plant" does not include either small power production facilities or
             194      cogeneration facilities.
             195          [(13)] (15) "Independent energy producer" means every electrical corporation, person,
             196      corporation, or government entity, their lessees, trustees, or receivers, that own, operate,
             197      control, or manage an independent power production or cogeneration facility.
             198          [(14)] (16) "Independent power production facility" means a facility that:
             199          (a) produces electric energy solely by the use, as a primary energy source, of biomass,
             200      waste, a renewable resource, a geothermal resource, or any combination of the preceding
             201      sources; or
             202          (b) is a qualifying power production facility.
             203          (17) "Non-utility energy supplier" means a person who:
             204          (a) has received market-based rate authority from the Federal Energy Regulatory
             205      Commission in accordance with 16 U.S.C. Sec. 824d, 18 C.F.R. Part 35, Filing of Rate
             206      Schedules and Tariffs, or applicable Federal Energy Regulatory Commission orders; or
             207          (b) owns, leases, operates, or manages an electric generation plant that:
             208          (i) has a capacity of greater than 60 megawatts; and
             209          (ii) is hosted by an industrial facility that consumes the output of the electric plant, in
             210      whole or in part, for the industrial facility's use or the use of a tenant or affiliate of the
             211      industrial facility.
             212          [(15)] (18) "Private telecommunications system" includes all facilities for the
             213      transmission of signs, signals, writing, images, sounds, messages, data, or other information of


             214      any nature by wire, radio, lightwaves, or other electromagnetic means, excluding mobile radio
             215      facilities, that are owned, controlled, operated, or managed by a corporation or person,
             216      including their lessees, trustees, receivers, or trustees appointed by any court, for the use of that
             217      corporation or person and not for the shared use with or resale to any other corporation or
             218      person on a regular basis.
             219          [(16)] (19) (a) "Public utility" includes every railroad corporation, gas corporation,
             220      electrical corporation, distribution electrical cooperative, wholesale electrical cooperative,
             221      telephone corporation, telegraph corporation, water corporation, sewerage corporation, heat
             222      corporation, and independent energy producer not described in Subsection [(16)] (19)(d),
             223      where the service is performed for, or the commodity delivered to, the public generally, or in
             224      the case of a gas corporation or electrical corporation where the gas or electricity is sold or
             225      furnished to any member or consumers within the state for domestic, commercial, or industrial
             226      use.
             227          (b) (i) If any railroad corporation, gas corporation, electrical corporation, telephone
             228      corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation,
             229      or independent energy producer not described in Subsection [(16)] (19)(d), performs a service
             230      for or delivers a commodity to the public, it is considered to be a public utility, subject to the
             231      jurisdiction and regulation of the commission and this title.
             232          (ii) If a gas corporation, independent energy producer not described in Subsection
             233      [(16)] (19)(d), or electrical corporation sells or furnishes gas or electricity to any member or
             234      consumers within the state, for domestic, commercial, or industrial use, for which any
             235      compensation or payment is received, it is considered to be a public utility, subject to the
             236      jurisdiction and regulation of the commission and this title.
             237          (c) Any corporation or person not engaged in business exclusively as a public utility as
             238      defined in this section is governed by this title in respect only to the public utility owned,
             239      controlled, operated, or managed by the corporation or person, and not in respect to any other
             240      business or pursuit.
             241          (d) An independent energy producer is exempt from the jurisdiction and regulations of
             242      the commission with respect to an independent power production facility if it meets the
             243      requirements of Subsection [(16)] (19)(d)(i), (ii), (iii), or (iv), or any combination of these:
             244          (i) the commodity or service is produced or delivered, or both, by an independent


             245      energy producer solely for [the uses exempted in Subsection (7)] a use described in Subsections
             246      (8)(b)(ii) through (iv) or for the use of state-owned facilities;
             247          (ii) the commodity or service is sold by an independent energy producer solely to an
             248      electrical corporation or other wholesale purchaser;
             249          (iii) (A) the commodity or service produced or delivered by the independent energy
             250      producer is delivered to an entity that controls, is controlled by, or affiliated with the
             251      independent energy producer or to a user located on real property managed or controlled by the
             252      independent energy producer; and
             253          (B) the real property on which the service or commodity is used is contiguous to real
             254      property [which] that is owned or controlled by the independent energy producer[. Parcels of
             255      real property] or is separated [solely] only by a public [roads or easements for public roads
             256      shall be considered as contiguous for purposes of this Subsection (16)] road or an easement for
             257      a public road; or
             258          (iv) the independent energy producer:
             259          (A) supplies energy for direct consumption by a customer that is:
             260          (I) a county, municipality, city, town, other political subdivision, local district, special
             261      service district, state institution of higher education, school district, charter school, or any
             262      entity within the state system of public education; or
             263          (II) an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3)
             264      operated for religious, charitable, or educational purposes that is exempt from federal income
             265      tax and able to demonstrate its tax-exempt status;
             266          (B) supplies energy to the customer through use of a customer generation system, as
             267      defined in Section 54-15-102 , for use on the real property where the customer generation
             268      system is located;
             269          (C) supplies energy using a customer generation system designed to supply the lesser
             270      of:
             271          (I) no more than 90% of the average annual consumption of electricity by the customer
             272      at that site, based on an annualized billing period; or
             273          (II) the maximum size allowable under net metering provisions, defined in Section
             274      54-15-102 ;
             275          (D) notifies the customer before installing the customer generation system of:


             276          (I) all costs the customer is required to pay for the customer generation system,
             277      including any interconnection costs; and
             278          (II) the potential for future changes in amounts paid by the customer for energy
             279      received from the public utility and the possibility of changes to the customer fees or charges to
             280      the customer associated with net metering and generation;
             281          (E) enters into and performs in accordance with an interconnection agreement with a
             282      public utility providing retail electric service where the real property on which the customer
             283      generation system is located, with the rates, terms, and conditions of the retail service and
             284      interconnection agreement subject to approval by the governing authority of the public utility,
             285      as defined in Subsection 54-15-102 (8); and
             286          (F) installs the relevant customer generation system by December 31, 2015.
             287          (e) Any person or corporation defined as an electrical corporation or public utility
             288      under this section may continue to serve its existing customers subject to any order or future
             289      determination of the commission in reference to the right to serve those customers.
             290          (f) (i) "Public utility" does not include any person that is otherwise considered a public
             291      utility under this Subsection [(16)] (19) solely because of that person's ownership of an interest
             292      in an electric plant, cogeneration facility, or small power production facility in this state if all of
             293      the following conditions are met:
             294          (A) the ownership interest in the electric plant, cogeneration facility, or small power
             295      production facility is leased to:
             296          (I) a public utility, and that lease has been approved by the commission;
             297          (II) a person or government entity that is exempt from commission regulation as a
             298      public utility; or
             299          (III) a combination of Subsections [(16)] (19)(f)(i)(A)(I) and (II);
             300          (B) the lessor of the ownership interest identified in Subsection [(16)] (19)(f)(i)(A) is:
             301          (I) primarily engaged in a business other than the business of a public utility; or
             302          (II) a person whose total equity or beneficial ownership is held directly or indirectly by
             303      another person engaged in a business other than the business of a public utility; and
             304          (C) the rent reserved under the lease does not include any amount based on or
             305      determined by revenues or income of the lessee.
             306          (ii) Any person that is exempt from classification as a public utility under Subsection


             307      [(16)] (19)(f)(i) shall continue to be so exempt from classification following termination of the
             308      lessee's right to possession or use of the electric plant for so long as the former lessor does not
             309      operate the electric plant or sell electricity from the electric plant. If the former lessor operates
             310      the electric plant or sells electricity, the former lessor shall continue to be so exempt for a
             311      period of 90 days following termination, or for a longer period that is ordered by the
             312      commission. This period may not exceed one year. A change in rates that would otherwise
             313      require commission approval may not be effective during the 90-day or extended period
             314      without commission approval.
             315          (g) "Public utility" does not include any person that provides financing for, but has no
             316      ownership interest in an electric plant, small power production facility, or cogeneration facility.
             317      In the event of a foreclosure in which an ownership interest in an electric plant, small power
             318      production facility, or cogeneration facility is transferred to a third-party financer of an electric
             319      plant, small power production facility, or cogeneration facility, then that third-party financer is
             320      exempt from classification as a public utility for 90 days following the foreclosure, or for a
             321      longer period that is ordered by the commission. This period may not exceed one year.
             322          (h) (i) The distribution or transportation of natural gas for use as a motor vehicle fuel
             323      does not cause the distributor or transporter to be a "public utility," unless the commission,
             324      after notice and a public hearing, determines by rule that it is in the public interest to regulate
             325      the distributers or transporters, but the retail sale alone of compressed natural gas as a motor
             326      vehicle fuel may not cause the seller to be a "public utility."
             327          (ii) In determining whether it is in the public interest to regulate the distributors or
             328      transporters, the commission shall consider, among other things, the impact of the regulation
             329      on the availability and price of natural gas for use as a motor fuel.
             330          (i) "Public utility" does not include any corporation, cooperative association, or person,
             331      their affiliates, lessees, trustees, or receivers, owning, controlling, operating, or managing an
             332      electric plant or in any way furnishing electricity if the electricity is consumed by an owner,
             333      lessor, or interest holder, or by an affiliate or tenant of [an] the owner, lessor, or interest holder,
             334      [who] that has provided at least $25,000,000 in value, including credit support, relating to the
             335      electric plant furnishing [the] electricity [and whose consumption does not exceed its long-term
             336      entitlement in the plant under a long-term arrangement other than a power purchase agreement,
             337      except a power purchase agreement with an electrical corporation] in this state.


             338          (j) "Public utility" does not include a non-utility energy supplier that sells or provides
             339      electricity to an eligible customer that has transferred the eligible customer's service to the
             340      non-utility energy supplier in accordance with Section 54-3-1.1 .
             341          [(17)] (20) "Purchasing utility" means any electrical corporation that is required to
             342      purchase electricity from small power production or cogeneration facilities pursuant to the
             343      Public Utility Regulatory Policies Act, 16 U.S.C. Section 824a-3.
             344          [(18)] (21) "Qualifying power producer" means a corporation, cooperative association,
             345      or person, or the lessee, trustee, and receiver of the corporation, cooperative association, or
             346      person, who owns, controls, operates, or manages any qualifying power production facility or
             347      cogeneration facility.
             348          [(19)] (22) "Qualifying power production facility" means a facility that:
             349          (a) produces electrical energy solely by the use, as a primary energy source, of biomass,
             350      waste, a renewable resource, a geothermal resource, or any combination of the preceding
             351      sources;
             352          (b) has a power production capacity that, together with any other facilities located at
             353      the same site, is no greater than 80 megawatts; and
             354          (c) is a qualifying small power production facility under federal law.
             355          [(20)] (23) "Railroad" includes every commercial, interurban, and other railway, other
             356      than a street railway, and each branch or extension of a railway, by any power operated,
             357      together with all tracks, bridges, trestles, rights-of-way, subways, tunnels, stations, depots,
             358      union depots, yards, grounds, terminals, terminal facilities, structures, and equipment, and all
             359      other real estate, fixtures, and personal property of every kind used in connection with a
             360      railway owned, controlled, operated, or managed for public service in the transportation of
             361      persons or property.
             362          [(21)] (24) "Railroad corporation" includes every corporation and person, their lessees,
             363      trustees, and receivers, owning, controlling, operating, or managing any railroad for public
             364      service within this state.
             365          [(22)] (25) (a) "Sewerage corporation" includes every corporation and person, their
             366      lessees, trustees, and receivers, owning, controlling, operating, or managing any sewerage
             367      system for public service within this state.
             368          (b) "Sewerage corporation" does not include private sewerage companies engaged in


             369      disposing of sewage only for their stockholders, or towns, cities, counties, conservancy
             370      districts, improvement districts, or other governmental units created or organized under any
             371      general or special law of this state.
             372          [(23)] (26) "Telegraph corporation" includes every corporation and person, their
             373      lessees, trustees, and receivers, owning, controlling, operating, or managing any telegraph line
             374      for public service within this state.
             375          [(24)] (27) "Telegraph line" includes all conduits, ducts, poles, wires, cables,
             376      instruments, and appliances, and all other real estate, fixtures, and personal property owned,
             377      controlled, operated, or managed in connection with or to facilitate communication by
             378      telegraph, whether that communication be had with or without the use of transmission wires.
             379          [(25)] (28) (a) "Telephone corporation" means any corporation or person, and their
             380      lessees, trustee, receivers, or trustees appointed by any court, who owns, controls, operates,
             381      manages, or resells a public telecommunications service as defined in Section 54-8b-2 .
             382          (b) "Telephone corporation" does not mean a corporation, partnership, or firm
             383      providing:
             384          (i) intrastate telephone service offered by a provider of cellular, personal
             385      communication systems (PCS), or other commercial mobile radio service as defined in 47
             386      U.S.C. Sec. 332 that has been issued a covering license by the Federal Communications
             387      Commission;
             388          (ii) Internet service; or
             389          (iii) resold intrastate toll service.
             390          [(26)] (29) "Telephone line" includes all conduits, ducts, poles, wires, cables,
             391      instruments, and appliances, and all other real estate, fixtures, and personal property owned,
             392      controlled, operated, or managed in connection with or to facilitate communication by
             393      telephone whether that communication is had with or without the use of transmission wires.
             394          [(27)] (30) "Transportation of persons" includes every service in connection with or
             395      incidental to the safety, comfort, or convenience of the person transported, and the receipt,
             396      carriage, and delivery of that person and that person's baggage.
             397          [(28)] (31) "Transportation of property" includes every service in connection with or
             398      incidental to the transportation of property, including in particular its receipt, delivery,
             399      elevation, transfer, switching, carriage, ventilation, refrigeration, icing, dunnage, storage, and


             400      hauling, and the transmission of credit by express companies.
             401          [(29)] (32) "Water corporation" includes every corporation and person, their lessees,
             402      trustees, and receivers, owning, controlling, operating, or managing any water system for
             403      public service within this state. It does not include private irrigation companies engaged in
             404      distributing water only to their stockholders, or towns, cities, counties, water conservancy
             405      districts, improvement districts, or other governmental units created or organized under any
             406      general or special law of this state.
             407          [(30)] (33) (a) "Water system" includes all reservoirs, tunnels, shafts, dams, dikes,
             408      headgates, pipes, flumes, canals, structures, and appliances, and all other real estate, fixtures,
             409      and personal property owned, controlled, operated, or managed in connection with or to
             410      facilitate the diversion, development, storage, supply, distribution, sale, furnishing, carriage,
             411      appointment, apportionment, or measurement of water for power, fire protection, irrigation,
             412      reclamation, or manufacturing, or for municipal, domestic, or other beneficial use.
             413          (b) "Water system" does not include private irrigation companies engaged in
             414      distributing water only to their stockholders.
             415          [(31)] (34) "Wholesale electrical cooperative" includes every electrical corporation that
             416      is:
             417          (a) in the business of the wholesale distribution of electricity it has purchased or
             418      generated to its members and the public; and
             419          (b) required to distribute or allocate savings in excess of additions to reserves and
             420      surplus to members or patrons on the basis of patronage.
             421          Section 3. Section 54-3-1.1 is enacted to read:
             422          54-3-1.1. Bundled electric service -- Public utility duties -- Procedure to transfer
             423      service to a non-utility energy supplier.
             424          (1) Notwithstanding Section 54-3-1 and except as provided in Subsection (2), a public
             425      utility is not required to furnish or provide bundled electric service to an eligible customer if
             426      the eligible customer transfers service to a non-utility energy supplier in accordance with this
             427      section.
             428          (2) A public utility that is not required to furnish or provide bundled electric service to
             429      an eligible customer under Subsection (1) shall continue to provide transmission or distribution
             430      service to the eligible customer:


             431          (a) as necessary to facilitate the eligible customer to receive service from a non-utility
             432      energy supplier; and
             433          (b) in accordance with the tariffs, contracts, or both approved by the federal or state
             434      agency that has jurisdiction over the transmission or distribution service.
             435          (3) An eligible customer may initiate the transfer of service to a non-utility energy
             436      supplier by:
             437          (a) providing written notice to the public utility that furnishes or provides bundled
             438      electric service to the eligible customer:
             439          (i) stating the eligible customer's intent to receive service from a non-utility energy
             440      supplier; and
             441          (ii) at least 180 days before the date the eligible customer intends to transfer service to
             442      the non-utility energy supplier; and
             443          (b) filing a written application with the public utility's transmission provider, in
             444      accordance with the approved tariffs or contracts of the public utility's transmission provider,
             445      for:
             446          (i) the transfer or assignment of the rights to transmission or distribution service
             447      described in Subsection (7); or
             448          (ii) service otherwise necessary to facilitate the eligible customer to receive service
             449      from the non-utility energy supplier.
             450          (4) (a) No later than 14 days after the date a public utility receives the notice described
             451      in Subsection (3)(a) from an eligible customer, the public utility shall provide to the eligible
             452      customer an agreement for the public utility to perform a study on the costs of metering,
             453      communication, and other facilities or equipment necessary for the eligible customer to receive
             454      service from a non-utility energy supplier.
             455          (b) The agreement described in Subsection (4)(a) shall include:
             456          (i) a statement of the estimated cost of performing the study; and
             457          (ii) a provision requiring the eligible customer to reimburse the public utility for the
             458      actual, reasonable cost of performing the study.
             459          (c) An eligible customer may, no later than 14 days after the date the eligible customer
             460      receives the agreement described in Subsection (4)(a):
             461          (i) execute the agreement;


             462          (ii) return the agreement to the public utility; and
             463          (iii) pay the public utility the estimated cost of performing the study.
             464          (d) If an eligible customer fails to take an action described in Subsection (4)(c), the
             465      notice described in Subsection (3)(a) is considered to be withdrawn.
             466          (5) Unless the notice described in Subsection (3)(a) is considered to be withdrawn
             467      under Subsection (4)(d), no later than 60 days after the date a public utility receives the notice
             468      described in Subsection (3)(a) from an eligible customer, the public utility shall provide to the
             469      eligible customer:
             470          (a) the results of the study described in Subsection (4);
             471          (b) a statement of the estimated costs of the metering, communication, and other
             472      facilities or equipment necessary for the eligible customer to receive service from the
             473      non-utility energy supplier; and
             474          (c) an estimated date by which the public utility can complete the installation of the
             475      metering, communication, and other facilities or equipment necessary for the eligible customer
             476      to receive service from the non-utility energy supplier.
             477          (6) (a) No later than 14 days after the date an eligible customer receives the results of
             478      the study described in Subsection (4):
             479          (i) if the estimated cost the eligible customer pays in accordance with Subsection (4)(c)
             480      exceeds the actual, reasonable cost of performing the study, the public utility shall refund the
             481      excess to the eligible customer; or
             482          (ii) if the estimated cost the eligible customer pays in accordance with Subsection
             483      (4)(c) is less than the actual, reasonable cost of performing the study, the eligible customer
             484      shall pay to the public utility the difference between the estimated cost and the actual,
             485      reasonable cost of performing the study.
             486          (b) (i) The notice described in Subsection (3)(a) is considered to be withdrawn if the
             487      eligible customer notifies the public utility in writing within 14 days after the date the eligible
             488      customer receives the results of the study described in Subsection (4) that the notice is
             489      withdrawn.
             490          (ii) A customer is not relieved of the duty to pay the actual, reasonable cost of the study
             491      described in Subsection (4) if the customer provides the notice to withdraw described in
             492      Subsection (6)(b)(i).


             493          (7) Unless the notice described in Subsection (3)(a) is considered to be withdrawn
             494      under Subsection (4)(d) or (6)(b)(i), no later than 180 days after the date a public utility
             495      receives the notice described in Subsection (3)(a) from an eligible customer, the public utility
             496      shall transfer and assign to the eligible customer or the eligible customer's designee the rights
             497      to transmission or distribution service as necessary to facilitate the eligible customer to receive
             498      service from a non-utility energy supplier.
             499          (8) A public utility and an eligible customer may agree in writing to waive a time
             500      period described in Subsection (4), (5), (6), or (7) as necessary to facilitate the eligible
             501      customer to receive service from a non-utility energy supplier.
             502          (9) An eligible customer may elect to have one of the following install the facilities and
             503      equipment necessary for the eligible customer to receive service from a non-utility energy
             504      supplier:
             505          (a) the public utility;
             506          (b) the non-utility energy supplier; or
             507          (c) a third party contractor.
             508          (10) An eligible customer may commence service from a non-utility energy supplier if:
             509          (a) the eligible customer meets the requirements of Subsection (3);
             510          (b) the eligible customer enters into any necessary agreements for:
             511          (i) the public utility to provide transmission or distribution service; and
             512          (ii) the non-utility energy supplier to provide service;
             513          (c) the installation described in Subsection (9) is completed; and
             514          (d) the notice described in Subsection (3)(a) is not considered to be withdrawn under
             515      Subsection (4)(d) or (6)(b)(i).
             516          Section 4. Section 54-3-8 is amended to read:
             517           54-3-8. Preferences forbidden -- Power of commission to determine facts --
             518      Applicability of section.
             519          (1) Except as provided in Chapter 8b, Public Telecommunications Law, a public utility
             520      may not:
             521          (a) as to rates, charges, service, facilities or in any other respect, make or grant any
             522      preference or advantage to any person, or subject any person to any prejudice or disadvantage;
             523      and


             524          (b) establish or maintain any unreasonable difference as to rates, charges, service or
             525      facilities, or in any other respect, either as between localities or as between classes of service.
             526          (2) The commission shall have power to determine any question of fact arising under
             527      this section.
             528          (3) This section does not apply to, and the commission may not enforce this chapter
             529      concerning, a schedule, classification, rate, price, charge, fare, toll, rental, rule, service, facility,
             530      or contract of [a public utility or electrical corporation furnishing electricity,] an entity
             531      described in Subsection 54-2-1 (8)(b)(iii) or (iv), (17), or (19)(i) or (j), or if the electricity is
             532      consumed by an owner, lessor, or interest holder or by an affiliate or tenant of an owner, lessor,
             533      or interest holder, [who] if that owner, lessor, interest holder, affiliate, or tenant has provided at
             534      least $25,000,000 in value, including credit support, relating to [the] an electric plant
             535      [furnishing the electricity and whose consumption does not exceed its long-term entitlement in
             536      the plant under a long-term arrangement other than a power purchase agreement, except a
             537      power purchase agreement with an electrical corporation] in this state.
             538          Section 5. Section 54-4-2 is amended to read:
             539           54-4-2. Investigations -- Hearings and notice -- Findings -- Applicability of
             540      chapter.
             541          (1) (a) [Whenever the commission believes that in order] The commission may
             542      conduct an investigation if the commission determines an investigation:
             543          (i) is necessary to secure [a] compliance with [the provisions of] this title or with [the
             544      orders] an order of the commission[, or that it will be otherwise in the interest of the public, an
             545      investigation];
             546          (ii) is in the public interest; or
             547          (iii) should be made of any act or omission to act, or of anything accomplished or
             548      proposed, or of any schedule, classification, rate, price, charge, fare, toll, rental, rule,
             549      regulation, service, or facility of any public utility[, it shall investigate the same upon its own
             550      motion, and may fix].
             551          (b) If the commission conducts an investigation under Subsection (1)(a), the
             552      commission may:
             553          (i) establish a time and place for a hearing [thereof with];
             554          (ii) provide notice to the public utility concerning [which such investigation shall be


             555      made, and upon such hearing shall make such] the investigation; and
             556          (iii) make findings and orders [as shall be] that are just and reasonable with respect to
             557      [any such matter] the investigation.
             558          (2) This chapter does not apply to a schedule, classification, rate, price, charge, fare,
             559      toll, rental, rule, service, facility, or contract of [a public utility or electrical corporation
             560      furnishing electricity,] an entity described in Subsection 54-2-1 (8)(b)(iii) or (iv), (17), or (19)(i)
             561      or (j), or if the electricity is consumed by an owner, lessor, or interest holder or by an affiliate
             562      or tenant of an owner, lessor, or interest holder, [who] if that owner, lessor, interest holder,
             563      affiliate, or tenant has provided at least $25,000,000 in value, including credit support, relating
             564      to [the] an electric plant [furnishing the electricity and whose consumption does not exceed its
             565      long-term entitlement in the plant under a long-term arrangement other than a power purchase
             566      agreement, except a power purchase agreement with an electrical corporation] in this state.
             567          Section 6. Section 54-15-108 is amended to read:
             568           54-15-108. Damages and fines for connecting a customer generation system to
             569      more than one customer.
             570          If an independent energy producer defined in [Subsection 54-2-1 (13)] Section 54-2-1
             571      that is supplying energy to a customer [under] as described in Subsection
             572      54-2-1 [(16)](19)(d)(iv) violates the limitations set forth in Subsection
             573      54-2-1 [(16)](19)(d)(iv)(B), the commission may:
             574          (1) award damages to an electrical corporation for actual and consequential damages to
             575      the electrical corporation; and
             576          (2) assess a fine against the independent energy producer or person responsible for the
             577      violation.
             578          Section 7. Section 59-12-102 (Superseded 07/01/14) is amended to read:
             579           59-12-102 (Superseded 07/01/14). Definitions.
             580          As used in this chapter:
             581          (1) "800 service" means a telecommunications service that:
             582          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             583          (b) is typically marketed:
             584          (i) under the name 800 toll-free calling;
             585          (ii) under the name 855 toll-free calling;


             586          (iii) under the name 866 toll-free calling;
             587          (iv) under the name 877 toll-free calling;
             588          (v) under the name 888 toll-free calling; or
             589          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             590      Federal Communications Commission.
             591          (2) (a) "900 service" means an inbound toll telecommunications service that:
             592          (i) a subscriber purchases;
             593          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             594      the subscriber's:
             595          (A) prerecorded announcement; or
             596          (B) live service; and
             597          (iii) is typically marketed:
             598          (A) under the name 900 service; or
             599          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             600      Communications Commission.
             601          (b) "900 service" does not include a charge for:
             602          (i) a collection service a seller of a telecommunications service provides to a
             603      subscriber; or
             604          (ii) the following a subscriber sells to the subscriber's customer:
             605          (A) a product; or
             606          (B) a service.
             607          (3) (a) "Admission or user fees" includes season passes.
             608          (b) "Admission or user fees" does not include annual membership dues to private
             609      organizations.
             610          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             611      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             612      Agreement after November 12, 2002.
             613          (5) "Agreement combined tax rate" means the sum of the tax rates:
             614          (a) listed under Subsection (6); and
             615          (b) that are imposed within a local taxing jurisdiction.
             616          (6) "Agreement sales and use tax" means a tax imposed under:


             617          (a) Subsection 59-12-103 (2)(a)(i)(A);
             618          (b) Subsection 59-12-103 (2)(b)(i);
             619          (c) Subsection 59-12-103 (2)(c)(i);
             620          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             621          (e) Section 59-12-204 ;
             622          (f) Section 59-12-401 ;
             623          (g) Section 59-12-402 ;
             624          (h) Section 59-12-703 ;
             625          (i) Section 59-12-802 ;
             626          (j) Section 59-12-804 ;
             627          (k) Section 59-12-1102 ;
             628          (l) Section 59-12-1302 ;
             629          (m) Section 59-12-1402 ;
             630          (n) Section 59-12-1802 ;
             631          (o) Section 59-12-2003 ;
             632          (p) Section 59-12-2103 ;
             633          (q) Section 59-12-2213 ;
             634          (r) Section 59-12-2214 ;
             635          (s) Section 59-12-2215 ;
             636          (t) Section 59-12-2216 ;
             637          (u) Section 59-12-2217 ; or
             638          (v) Section 59-12-2218 .
             639          (7) "Aircraft" is as defined in Section 72-10-102 .
             640          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             641          (a) except for:
             642          (i) an airline as defined in Section 59-2-102 ; or
             643          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             644      includes a corporation that is qualified to do business but is not otherwise doing business in the
             645      state, of an airline; and
             646          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             647      whether the business entity performs the following in this state:


             648          (i) check, diagnose, overhaul, and repair:
             649          (A) an onboard system of a fixed wing turbine powered aircraft; and
             650          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             651          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             652      engine;
             653          (iii) perform at least the following maintenance on a fixed wing turbine powered
             654      aircraft:
             655          (A) an inspection;
             656          (B) a repair, including a structural repair or modification;
             657          (C) changing landing gear; and
             658          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             659          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             660      completely apply new paint to the fixed wing turbine powered aircraft; and
             661          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             662      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             663      authority that certifies the fixed wing turbine powered aircraft.
             664          (9) "Alcoholic beverage" means a beverage that:
             665          (a) is suitable for human consumption; and
             666          (b) contains 0.5% or more alcohol by volume.
             667          (10) "Alternative energy" means:
             668          (a) biomass energy;
             669          (b) geothermal energy;
             670          (c) hydroelectric energy;
             671          (d) solar energy;
             672          (e) wind energy; or
             673          (f) energy that is derived from:
             674          (i) coal-to-liquids;
             675          (ii) nuclear fuel;
             676          (iii) oil-impregnated diatomaceous earth;
             677          (iv) oil sands;
             678          (v) oil shale; or


             679          (vi) petroleum coke.
             680          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             681      facility" means a facility that:
             682          (i) uses alternative energy to produce electricity; and
             683          (ii) has a production capacity of two megawatts or greater.
             684          (b) A facility is an alternative energy electricity production facility regardless of
             685      whether the facility is:
             686          (i) connected to an electric grid; or
             687          (ii) located on the premises of an electricity consumer.
             688          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             689      provision of telecommunications service.
             690          (b) "Ancillary service" includes:
             691          (i) a conference bridging service;
             692          (ii) a detailed communications billing service;
             693          (iii) directory assistance;
             694          (iv) a vertical service; or
             695          (v) a voice mail service.
             696          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             697          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             698      device that is started and stopped by an individual:
             699          (a) who is not the purchaser or renter of the right to use or operate the amusement
             700      device, skill device, or ride device; and
             701          (b) at the direction of the seller of the right to use the amusement device, skill device,
             702      or ride device.
             703          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             704      washing of tangible personal property if the cleaning or washing labor is primarily performed
             705      by an individual:
             706          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             707      property; and
             708          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             709      property.


             710          (16) "Authorized carrier" means:
             711          (a) in the case of vehicles operated over public highways, the holder of credentials
             712      indicating that the vehicle is or will be operated pursuant to both the International Registration
             713      Plan and the International Fuel Tax Agreement;
             714          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             715      certificate or air carrier's operating certificate; or
             716          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             717      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             718          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             719      following that is used as the primary source of energy to produce fuel or electricity:
             720          (i) material from a plant or tree; or
             721          (ii) other organic matter that is available on a renewable basis, including:
             722          (A) slash and brush from forests and woodlands;
             723          (B) animal waste;
             724          (C) methane produced:
             725          (I) at landfills; or
             726          (II) as a byproduct of the treatment of wastewater residuals;
             727          (D) aquatic plants; and
             728          (E) agricultural products.
             729          (b) "Biomass energy" does not include:
             730          (i) black liquor;
             731          (ii) treated woods; or
             732          (iii) biomass from municipal solid waste other than methane produced:
             733          (A) at landfills; or
             734          (B) as a byproduct of the treatment of wastewater residuals.
             735          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             736      property, products, or services if the tangible personal property, products, or services are:
             737          (i) distinct and identifiable; and
             738          (ii) sold for one nonitemized price.
             739          (b) "Bundled transaction" does not include:
             740          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on


             741      the basis of the selection by the purchaser of the items of tangible personal property included in
             742      the transaction;
             743          (ii) the sale of real property;
             744          (iii) the sale of services to real property;
             745          (iv) the retail sale of tangible personal property and a service if:
             746          (A) the tangible personal property:
             747          (I) is essential to the use of the service; and
             748          (II) is provided exclusively in connection with the service; and
             749          (B) the service is the true object of the transaction;
             750          (v) the retail sale of two services if:
             751          (A) one service is provided that is essential to the use or receipt of a second service;
             752          (B) the first service is provided exclusively in connection with the second service; and
             753          (C) the second service is the true object of the transaction;
             754          (vi) a transaction that includes tangible personal property or a product subject to
             755      taxation under this chapter and tangible personal property or a product that is not subject to
             756      taxation under this chapter if the:
             757          (A) seller's purchase price of the tangible personal property or product subject to
             758      taxation under this chapter is de minimis; or
             759          (B) seller's sales price of the tangible personal property or product subject to taxation
             760      under this chapter is de minimis; and
             761          (vii) the retail sale of tangible personal property that is not subject to taxation under
             762      this chapter and tangible personal property that is subject to taxation under this chapter if:
             763          (A) that retail sale includes:
             764          (I) food and food ingredients;
             765          (II) a drug;
             766          (III) durable medical equipment;
             767          (IV) mobility enhancing equipment;
             768          (V) an over-the-counter drug;
             769          (VI) a prosthetic device; or
             770          (VII) a medical supply; and
             771          (B) subject to Subsection (18)(f):


             772          (I) the seller's purchase price of the tangible personal property subject to taxation under
             773      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             774          (II) the seller's sales price of the tangible personal property subject to taxation under
             775      this chapter is 50% or less of the seller's total sales price of that retail sale.
             776          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             777      service that is distinct and identifiable does not include:
             778          (A) packaging that:
             779          (I) accompanies the sale of the tangible personal property, product, or service; and
             780          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             781      service;
             782          (B) tangible personal property, a product, or a service provided free of charge with the
             783      purchase of another item of tangible personal property, a product, or a service; or
             784          (C) an item of tangible personal property, a product, or a service included in the
             785      definition of "purchase price."
             786          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             787      product, or a service is provided free of charge with the purchase of another item of tangible
             788      personal property, a product, or a service if the sales price of the purchased item of tangible
             789      personal property, product, or service does not vary depending on the inclusion of the tangible
             790      personal property, product, or service provided free of charge.
             791          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             792      does not include a price that is separately identified by tangible personal property, product, or
             793      service on the following, regardless of whether the following is in paper format or electronic
             794      format:
             795          (A) a binding sales document; or
             796          (B) another supporting sales-related document that is available to a purchaser.
             797          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             798      supporting sales-related document that is available to a purchaser includes:
             799          (A) a bill of sale;
             800          (B) a contract;
             801          (C) an invoice;
             802          (D) a lease agreement;


             803          (E) a periodic notice of rates and services;
             804          (F) a price list;
             805          (G) a rate card;
             806          (H) a receipt; or
             807          (I) a service agreement.
             808          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             809      property or a product subject to taxation under this chapter is de minimis if:
             810          (A) the seller's purchase price of the tangible personal property or product is 10% or
             811      less of the seller's total purchase price of the bundled transaction; or
             812          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             813      the seller's total sales price of the bundled transaction.
             814          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             815          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             816      purchase price or sales price of the tangible personal property or product subject to taxation
             817      under this chapter is de minimis; and
             818          (B) may not use a combination of the seller's purchase price and the seller's sales price
             819      to determine if the purchase price or sales price of the tangible personal property or product
             820      subject to taxation under this chapter is de minimis.
             821          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             822      contract to determine if the sales price of tangible personal property or a product is de minimis.
             823          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             824      the seller's purchase price and the seller's sales price to determine if tangible personal property
             825      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             826      price of that retail sale.
             827          (19) "Certified automated system" means software certified by the governing board of
             828      the agreement that:
             829          (a) calculates the agreement sales and use tax imposed within a local taxing
             830      jurisdiction:
             831          (i) on a transaction; and
             832          (ii) in the states that are members of the agreement;
             833          (b) determines the amount of agreement sales and use tax to remit to a state that is a


             834      member of the agreement; and
             835          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             836          (20) "Certified service provider" means an agent certified:
             837          (a) by the governing board of the agreement; and
             838          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             839      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             840      own purchases.
             841          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             842      suitable for general use.
             843          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             844      commission shall make rules:
             845          (i) listing the items that constitute "clothing"; and
             846          (ii) that are consistent with the list of items that constitute "clothing" under the
             847      agreement.
             848          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             849          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             850      fuels that does not constitute industrial use under Subsection (55) or residential use under
             851      Subsection (105).
             852          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             853      transporting passengers, freight, merchandise, or other property for hire within this state.
             854          (b) (i) "Common carrier" does not include a person who, at the time the person is
             855      traveling to or from that person's place of employment, transports a passenger to or from the
             856      passenger's place of employment.
             857          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             858      Utah Administrative Rulemaking Act, the commission may make rules defining what
             859      constitutes a person's place of employment.
             860          (25) "Component part" includes:
             861          (a) poultry, dairy, and other livestock feed, and their components;
             862          (b) baling ties and twine used in the baling of hay and straw;
             863          (c) fuel used for providing temperature control of orchards and commercial
             864      greenhouses doing a majority of their business in wholesale sales, and for providing power for


             865      off-highway type farm machinery; and
             866          (d) feed, seeds, and seedlings.
             867          (26) "Computer" means an electronic device that:
             868          (a) accepts information:
             869          [(a)] (i) in digital form; or
             870          (ii) in a form similar to digital form; and
             871          (b) manipulates that information for a result based on a sequence of instructions.
             872          (27) "Computer software" means a set of coded instructions designed to cause:
             873          (a) a computer to perform a task; or
             874          (b) automatic data processing equipment to perform a task.
             875          (28) "Computer software maintenance contract" means a contract that obligates a seller
             876      of computer software to provide a customer with:
             877          (a) future updates or upgrades to computer software;
             878          (b) support services with respect to computer software; or
             879          (c) a combination of Subsections (28)(a) and (b).
             880          (29) (a) "Conference bridging service" means an ancillary service that links two or
             881      more participants of an audio conference call or video conference call.
             882          (b) "Conference bridging service" may include providing a telephone number as part of
             883      the ancillary service described in Subsection (29)(a).
             884          (c) "Conference bridging service" does not include a telecommunications service used
             885      to reach the ancillary service described in Subsection (29)(a).
             886          (30) "Construction materials" means any tangible personal property that will be
             887      converted into real property.
             888          (31) "Delivered electronically" means delivered to a purchaser by means other than
             889      tangible storage media.
             890          (32) (a) "Delivery charge" means a charge:
             891          (i) by a seller of:
             892          (A) tangible personal property;
             893          (B) a product transferred electronically; or
             894          (C) services; and
             895          (ii) for preparation and delivery of the tangible personal property, product transferred


             896      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             897      purchaser.
             898          (b) "Delivery charge" includes a charge for the following:
             899          (i) transportation;
             900          (ii) shipping;
             901          (iii) postage;
             902          (iv) handling;
             903          (v) crating; or
             904          (vi) packing.
             905          (33) "Detailed telecommunications billing service" means an ancillary service of
             906      separately stating information pertaining to individual calls on a customer's billing statement.
             907          (34) "Dietary supplement" means a product, other than tobacco, that:
             908          (a) is intended to supplement the diet;
             909          (b) contains one or more of the following dietary ingredients:
             910          (i) a vitamin;
             911          (ii) a mineral;
             912          (iii) an herb or other botanical;
             913          (iv) an amino acid;
             914          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             915      dietary intake; or
             916          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             917      described in Subsections (34)(b)(i) through (v);
             918          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             919          (A) tablet form;
             920          (B) capsule form;
             921          (C) powder form;
             922          (D) softgel form;
             923          (E) gelcap form; or
             924          (F) liquid form; or
             925          (ii) if the product is not intended for ingestion in a form described in Subsections
             926      (34)(c)(i)(A) through (F), is not represented:


             927          (A) as conventional food; and
             928          (B) for use as a sole item of:
             929          (I) a meal; or
             930          (II) the diet; and
             931          (d) is required to be labeled as a dietary supplement:
             932          (i) identifiable by the "Supplemental Facts" box found on the label; and
             933          (ii) as required by 21 C.F.R. Sec. 101.36.
             934          (35) (a) "Digital audio work" means a work that results from the fixation of a series of
             935      musical, spoken, or other sounds.
             936          (b) "Digital audio work" includes a ringtone.
             937          (36) "Digital audio-visual work" means a series of related images which, when shown
             938      in succession, imparts an impression of motion, together with accompanying sounds, if any.
             939          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
             940      sense as a book.
             941          (38) (a) "Direct mail" means printed material delivered or distributed by United States
             942      mail or other delivery service:
             943          (i) to:
             944          (A) a mass audience; or
             945          (B) addressees on a mailing list provided:
             946          (I) by a purchaser of the mailing list; or
             947          (II) at the discretion of the purchaser of the mailing list; and
             948          (ii) if the cost of the printed material is not billed directly to the recipients.
             949          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             950      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             951          (c) "Direct mail" does not include multiple items of printed material delivered to a
             952      single address.
             953          (39) "Directory assistance" means an ancillary service of providing:
             954          (a) address information; or
             955          (b) telephone number information.
             956          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
             957      or supplies that:


             958          (i) cannot withstand repeated use; and
             959          (ii) are purchased by, for, or on behalf of a person other than:
             960          (A) a health care facility as defined in Section 26-21-2 ;
             961          (B) a health care provider as defined in Section 78B-3-403 ;
             962          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
             963          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
             964          (b) "Disposable home medical equipment or supplies" does not include:
             965          (i) a drug;
             966          (ii) durable medical equipment;
             967          (iii) a hearing aid;
             968          (iv) a hearing aid accessory;
             969          (v) mobility enhancing equipment; or
             970          (vi) tangible personal property used to correct impaired vision, including:
             971          (A) eyeglasses; or
             972          (B) contact lenses.
             973          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             974      commission may by rule define what constitutes medical equipment or supplies.
             975          (41) (a) "Drug" means a compound, substance, or preparation, or a component of a
             976      compound, substance, or preparation that is:
             977          (i) recognized in:
             978          (A) the official United States Pharmacopoeia;
             979          (B) the official Homeopathic Pharmacopoeia of the United States;
             980          (C) the official National Formulary; or
             981          (D) a supplement to a publication listed in Subsections (41)(a)(i)(A) through (C);
             982          (ii) intended for use in the:
             983          (A) diagnosis of disease;
             984          (B) cure of disease;
             985          (C) mitigation of disease;
             986          (D) treatment of disease; or
             987          (E) prevention of disease; or
             988          (iii) intended to affect:


             989          (A) the structure of the body; or
             990          (B) any function of the body.
             991          (b) "Drug" does not include:
             992          (i) food and food ingredients;
             993          (ii) a dietary supplement;
             994          (iii) an alcoholic beverage; or
             995          (iv) a prosthetic device.
             996          (42) (a) "Durable medical equipment" means equipment that:
             997          (i) can withstand repeated use;
             998          (ii) is primarily and customarily used to serve a medical purpose;
             999          (iii) generally is not useful to a person in the absence of illness or injury; and
             1000          (iv) is not worn in or on the body.
             1001          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1002      equipment described in Subsection (42)(a).
             1003          (c) Notwithstanding Subsection (42)(a), "durable medical equipment" does not include
             1004      mobility enhancing equipment.
             1005          (43) "Electronic" means:
             1006          (a) relating to technology; and
             1007          (b) having:
             1008          (i) electrical capabilities;
             1009          (ii) digital capabilities;
             1010          (iii) magnetic capabilities;
             1011          (iv) wireless capabilities;
             1012          (v) optical capabilities;
             1013          (vi) electromagnetic capabilities; or
             1014          (vii) capabilities similar to Subsections (43)(b)(i) through (vi).
             1015          (44) "Electronic financial payment service" means an establishment:
             1016          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
             1017      Clearinghouse Activities, of the 2012 North American Industry Classification System of the
             1018      federal Executive Office of the President, Office of Management and Budget; and
             1019          (b) that performs electronic financial payment services.


             1020          (45) "Employee" is as defined in Section 59-10-401 .
             1021          (46) "Fixed guideway" means a public transit facility that uses and occupies:
             1022          (a) rail for the use of public transit; or
             1023          (b) a separate right-of-way for the use of public transit.
             1024          (47) "Fixed wing turbine powered aircraft" means an aircraft that:
             1025          (a) is powered by turbine engines;
             1026          (b) operates on jet fuel; and
             1027          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1028          (48) "Fixed wireless service" means a telecommunications service that provides radio
             1029      communication between fixed points.
             1030          (49) (a) "Food and food ingredients" means substances:
             1031          (i) regardless of whether the substances are in:
             1032          (A) liquid form;
             1033          (B) concentrated form;
             1034          (C) solid form;
             1035          (D) frozen form;
             1036          (E) dried form; or
             1037          (F) dehydrated form; and
             1038          (ii) that are:
             1039          (A) sold for:
             1040          (I) ingestion by humans; or
             1041          (II) chewing by humans; and
             1042          (B) consumed for the substance's:
             1043          (I) taste; or
             1044          (II) nutritional value.
             1045          (b) "Food and food ingredients" includes an item described in Subsection (90)(b)(iii).
             1046          (c) "Food and food ingredients" does not include:
             1047          (i) an alcoholic beverage;
             1048          (ii) tobacco; or
             1049          (iii) prepared food.
             1050          (50) (a) "Fundraising sales" means sales:


             1051          (i) (A) made by a school; or
             1052          (B) made by a school student;
             1053          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1054      materials, or provide transportation; and
             1055          (iii) that are part of an officially sanctioned school activity.
             1056          (b) For purposes of Subsection (50)(a)(iii), "officially sanctioned school activity"
             1057      means a school activity:
             1058          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1059      district governing the authorization and supervision of fundraising activities;
             1060          (ii) that does not directly or indirectly compensate an individual teacher or other
             1061      educational personnel by direct payment, commissions, or payment in kind; and
             1062          (iii) the net or gross revenues from which are deposited in a dedicated account
             1063      controlled by the school or school district.
             1064          (51) "Geothermal energy" means energy contained in heat that continuously flows
             1065      outward from the earth that is used as the sole source of energy to produce electricity.
             1066          (52) "Governing board of the agreement" means the governing board of the agreement
             1067      that is:
             1068          (a) authorized to administer the agreement; and
             1069          (b) established in accordance with the agreement.
             1070          (53) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             1071          (i) the executive branch of the state, including all departments, institutions, boards,
             1072      divisions, bureaus, offices, commissions, and committees;
             1073          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             1074      Office of the Court Administrator, and similar administrative units in the judicial branch;
             1075          (iii) the legislative branch of the state, including the House of Representatives, the
             1076      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             1077      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             1078      Analyst;
             1079          (iv) the National Guard;
             1080          (v) an independent entity as defined in Section 63E-1-102 ; or
             1081          (vi) a political subdivision as defined in Section 17B-1-102 .


             1082          (b) "Governmental entity" does not include the state systems of public and higher
             1083      education, including:
             1084          (i) a college campus of the Utah College of Applied Technology;
             1085          (ii) a school;
             1086          (iii) the State Board of Education;
             1087          (iv) the State Board of Regents; or
             1088          (v) an institution of higher education.
             1089          (54) "Hydroelectric energy" means water used as the sole source of energy to produce
             1090      electricity.
             1091          (55) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             1092      other fuels:
             1093          (a) in mining or extraction of minerals;
             1094          (b) in agricultural operations to produce an agricultural product up to the time of
             1095      harvest or placing the agricultural product into a storage facility, including:
             1096          (i) commercial greenhouses;
             1097          (ii) irrigation pumps;
             1098          (iii) farm machinery;
             1099          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
             1100      under Title 41, Chapter 1a, Part 2, Registration; and
             1101          (v) other farming activities;
             1102          (c) in manufacturing tangible personal property at an establishment described in SIC
             1103      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             1104      Executive Office of the President, Office of Management and Budget;
             1105          (d) by a scrap recycler if:
             1106          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1107      one or more of the following items into prepared grades of processed materials for use in new
             1108      products:
             1109          (A) iron;
             1110          (B) steel;
             1111          (C) nonferrous metal;
             1112          (D) paper;


             1113          (E) glass;
             1114          (F) plastic;
             1115          (G) textile; or
             1116          (H) rubber; and
             1117          (ii) the new products under Subsection (55)(d)(i) would otherwise be made with
             1118      nonrecycled materials; or
             1119          (e) in producing a form of energy or steam described in Subsection 54-2-1 [(2)](3)(a) by
             1120      a cogeneration facility as defined in Section 54-2-1 .
             1121          (56) (a) Except as provided in Subsection (56)(b), "installation charge" means a charge
             1122      for installing:
             1123          (i) tangible personal property; or
             1124          (ii) a product transferred electronically.
             1125          (b) "Installation charge" does not include a charge for:
             1126          (i) repairs or renovations of:
             1127          (A) tangible personal property; or
             1128          (B) a product transferred electronically; or
             1129          (ii) attaching tangible personal property or a product transferred electronically:
             1130          (A) to other tangible personal property; and
             1131          (B) as part of a manufacturing or fabrication process.
             1132          (57) "Institution of higher education" means an institution of higher education listed in
             1133      Section 53B-2-101 .
             1134          (58) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             1135      personal property or a product transferred electronically for:
             1136          (i) (A) a fixed term; or
             1137          (B) an indeterminate term; and
             1138          (ii) consideration.
             1139          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             1140      amount of consideration may be increased or decreased by reference to the amount realized
             1141      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             1142      Code.
             1143          (c) "Lease" or "rental" does not include:


             1144          (i) a transfer of possession or control of property under a security agreement or
             1145      deferred payment plan that requires the transfer of title upon completion of the required
             1146      payments;
             1147          (ii) a transfer of possession or control of property under an agreement that requires the
             1148      transfer of title:
             1149          (A) upon completion of required payments; and
             1150          (B) if the payment of an option price does not exceed the greater of:
             1151          (I) $100; or
             1152          (II) 1% of the total required payments; or
             1153          (iii) providing tangible personal property along with an operator for a fixed period of
             1154      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             1155      designed.
             1156          (d) For purposes of Subsection (58)(c)(iii), an operator is necessary for equipment to
             1157      perform as designed if the operator's duties exceed the:
             1158          (i) set-up of tangible personal property;
             1159          (ii) maintenance of tangible personal property; or
             1160          (iii) inspection of tangible personal property.
             1161          (59) "Life science establishment" means an establishment in this state that is classified
             1162      under the following NAICS codes of the 2007 North American Industry Classification System
             1163      of the federal Executive Office of the President, Office of Management and Budget:
             1164          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             1165          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             1166      Manufacturing; or
             1167          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             1168          (60) "Life science research and development facility" means a facility owned, leased,
             1169      or rented by a life science establishment if research and development is performed in 51% or
             1170      more of the total area of the facility.
             1171          (61) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             1172      if the tangible storage media is not physically transferred to the purchaser.
             1173          (62) "Local taxing jurisdiction" means a:
             1174          (a) county that is authorized to impose an agreement sales and use tax;


             1175          (b) city that is authorized to impose an agreement sales and use tax; or
             1176          (c) town that is authorized to impose an agreement sales and use tax.
             1177          (63) "Manufactured home" is as defined in Section 15A-1-302 .
             1178          (64) For purposes of Section 59-12-104 , "manufacturing facility" means:
             1179          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             1180      Industrial Classification Manual of the federal Executive Office of the President, Office of
             1181      Management and Budget;
             1182          (b) a scrap recycler if:
             1183          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1184      one or more of the following items into prepared grades of processed materials for use in new
             1185      products:
             1186          (A) iron;
             1187          (B) steel;
             1188          (C) nonferrous metal;
             1189          (D) paper;
             1190          (E) glass;
             1191          (F) plastic;
             1192          (G) textile; or
             1193          (H) rubber; and
             1194          (ii) the new products under Subsection (64)(b)(i) would otherwise be made with
             1195      nonrecycled materials; or
             1196          (c) a cogeneration facility as defined in Section 54-2-1 .
             1197          (65) "Member of the immediate family of the producer" means a person who is related
             1198      to a producer described in Subsection 59-12-104 (20)(a) as a:
             1199          (a) child or stepchild, regardless of whether the child or stepchild is:
             1200          (i) an adopted child or adopted stepchild; or
             1201          (ii) a foster child or foster stepchild;
             1202          (b) grandchild or stepgrandchild;
             1203          (c) grandparent or stepgrandparent;
             1204          (d) nephew or stepnephew;
             1205          (e) niece or stepniece;


             1206          (f) parent or stepparent;
             1207          (g) sibling or stepsibling;
             1208          (h) spouse;
             1209          (i) person who is the spouse of a person described in Subsections (65)(a) through (g);
             1210      or
             1211          (j) person similar to a person described in Subsections (65)(a) through (i) as
             1212      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1213      Administrative Rulemaking Act.
             1214          (66) "Mobile home" is as defined in Section 15A-1-302 .
             1215          (67) "Mobile telecommunications service" is as defined in the Mobile
             1216      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1217          (68) (a) "Mobile wireless service" means a telecommunications service, regardless of
             1218      the technology used, if:
             1219          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             1220          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             1221          (iii) the origination point described in Subsection (68)(a)(i) and the termination point
             1222      described in Subsection (68)(a)(ii) are not fixed.
             1223          (b) "Mobile wireless service" includes a telecommunications service that is provided
             1224      by a commercial mobile radio service provider.
             1225          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1226      commission may by rule define "commercial mobile radio service provider."
             1227          (69) (a) Except as provided in Subsection (69)(c), "mobility enhancing equipment"
             1228      means equipment that is:
             1229          (i) primarily and customarily used to provide or increase the ability to move from one
             1230      place to another;
             1231          (ii) appropriate for use in a:
             1232          (A) home; or
             1233          (B) motor vehicle; and
             1234          (iii) not generally used by persons with normal mobility.
             1235          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             1236      the equipment described in Subsection (69)(a).


             1237          (c) "Mobility enhancing equipment" does not include:
             1238          (i) a motor vehicle;
             1239          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1240      vehicle manufacturer;
             1241          (iii) durable medical equipment; or
             1242          (iv) a prosthetic device.
             1243          (70) "Model 1 seller" means a seller registered under the agreement that has selected a
             1244      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             1245      functions for agreement sales and use taxes other than the seller's obligation under Section
             1246      59-12-124 to remit a tax on the seller's own purchases.
             1247          (71) "Model 2 seller" means a seller registered under the agreement that:
             1248          (a) except as provided in Subsection (71)(b), has selected a certified automated system
             1249      to perform the seller's sales tax functions for agreement sales and use taxes; and
             1250          (b) retains responsibility for remitting all of the sales tax:
             1251          (i) collected by the seller; and
             1252          (ii) to the appropriate local taxing jurisdiction.
             1253          (72) (a) Subject to Subsection (72)(b), "model 3 seller" means a seller registered under
             1254      the agreement that has:
             1255          (i) sales in at least five states that are members of the agreement;
             1256          (ii) total annual sales revenues of at least $500,000,000;
             1257          (iii) a proprietary system that calculates the amount of tax:
             1258          (A) for an agreement sales and use tax; and
             1259          (B) due to each local taxing jurisdiction; and
             1260          (iv) entered into a performance agreement with the governing board of the agreement.
             1261          (b) For purposes of Subsection (72)(a), "model 3 seller" includes an affiliated group of
             1262      sellers using the same proprietary system.
             1263          (73) "Model 4 seller" means a seller that is registered under the agreement and is not a
             1264      model 1 seller, model 2 seller, or model 3 seller.
             1265          (74) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             1266          (75) "Motor vehicle" is as defined in Section 41-1a-102 .
             1267          (76) "Oil sands" means impregnated bituminous sands that:


             1268          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             1269      other hydrocarbons, or otherwise treated;
             1270          (b) yield mixtures of liquid hydrocarbon; and
             1271          (c) require further processing other than mechanical blending before becoming finished
             1272      petroleum products.
             1273          (77) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             1274      material that yields petroleum upon heating and distillation.
             1275          (78) "Optional computer software maintenance contract" means a computer software
             1276      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             1277      sale of computer software.
             1278          (79) (a) "Other fuels" means products that burn independently to produce heat or
             1279      energy.
             1280          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1281      personal property.
             1282          (80) (a) "Paging service" means a telecommunications service that provides
             1283      transmission of a coded radio signal for the purpose of activating a specific pager.
             1284          (b) For purposes of Subsection (80)(a), the transmission of a coded radio signal
             1285      includes a transmission by message or sound.
             1286          (81) "Pawnbroker" is as defined in Section 13-32a-102 .
             1287          (82) "Pawn transaction" is as defined in Section 13-32a-102 .
             1288          (83) (a) "Permanently attached to real property" means that for tangible personal
             1289      property attached to real property:
             1290          (i) the attachment of the tangible personal property to the real property:
             1291          (A) is essential to the use of the tangible personal property; and
             1292          (B) suggests that the tangible personal property will remain attached to the real
             1293      property in the same place over the useful life of the tangible personal property; or
             1294          (ii) if the tangible personal property is detached from the real property, the detachment
             1295      would:
             1296          (A) cause substantial damage to the tangible personal property; or
             1297          (B) require substantial alteration or repair of the real property to which the tangible
             1298      personal property is attached.


             1299          (b) "Permanently attached to real property" includes:
             1300          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             1301          (A) essential to the operation of the tangible personal property; and
             1302          (B) attached only to facilitate the operation of the tangible personal property;
             1303          (ii) a temporary detachment of tangible personal property from real property for a
             1304      repair or renovation if the repair or renovation is performed where the tangible personal
             1305      property and real property are located; or
             1306          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             1307      Subsection (83)(c)(iii) or (iv).
             1308          (c) "Permanently attached to real property" does not include:
             1309          (i) the attachment of portable or movable tangible personal property to real property if
             1310      that portable or movable tangible personal property is attached to real property only for:
             1311          (A) convenience;
             1312          (B) stability; or
             1313          (C) for an obvious temporary purpose;
             1314          (ii) the detachment of tangible personal property from real property except for the
             1315      detachment described in Subsection (83)(b)(ii);
             1316          (iii) an attachment of the following tangible personal property to real property if the
             1317      attachment to real property is only through a line that supplies water, electricity, gas,
             1318      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             1319      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             1320          (A) a computer;
             1321          (B) a telephone;
             1322          (C) a television; or
             1323          (D) tangible personal property similar to Subsections (83)(c)(iii)(A) through (C) as
             1324      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1325      Administrative Rulemaking Act; or
             1326          (iv) an item listed in Subsection (123)(c).
             1327          (84) "Person" includes any individual, firm, partnership, joint venture, association,
             1328      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             1329      municipality, district, or other local governmental entity of the state, or any group or


             1330      combination acting as a unit.
             1331          (85) "Place of primary use":
             1332          (a) for telecommunications service other than mobile telecommunications service,
             1333      means the street address representative of where the customer's use of the telecommunications
             1334      service primarily occurs, which shall be:
             1335          (i) the residential street address of the customer; or
             1336          (ii) the primary business street address of the customer; or
             1337          (b) for mobile telecommunications service, is as defined in the Mobile
             1338      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1339          (86) (a) "Postpaid calling service" means a telecommunications service a person
             1340      obtains by making a payment on a call-by-call basis:
             1341          (i) through the use of a:
             1342          (A) bank card;
             1343          (B) credit card;
             1344          (C) debit card; or
             1345          (D) travel card; or
             1346          (ii) by a charge made to a telephone number that is not associated with the origination
             1347      or termination of the telecommunications service.
             1348          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             1349      service, that would be a prepaid wireless calling service if the service were exclusively a
             1350      telecommunications service.
             1351          (87) "Postproduction" means an activity related to the finishing or duplication of a
             1352      medium described in Subsection 59-12-104 (54)(a).
             1353          (88) "Prepaid calling service" means a telecommunications service:
             1354          (a) that allows a purchaser access to telecommunications service that is exclusively
             1355      telecommunications service;
             1356          (b) that:
             1357          (i) is paid for in advance; and
             1358          (ii) enables the origination of a call using an:
             1359          (A) access number; or
             1360          (B) authorization code;


             1361          (c) that is dialed:
             1362          (i) manually; or
             1363          (ii) electronically; and
             1364          (d) sold in predetermined units or dollars that decline:
             1365          (i) by a known amount; and
             1366          (ii) with use.
             1367          (89) "Prepaid wireless calling service" means a telecommunications service:
             1368          (a) that provides the right to utilize:
             1369          (i) mobile wireless service; and
             1370          (ii) other service that is not a telecommunications service, including:
             1371          (A) the download of a product transferred electronically;
             1372          (B) a content service; or
             1373          (C) an ancillary service;
             1374          (b) that:
             1375          (i) is paid for in advance; and
             1376          (ii) enables the origination of a call using an:
             1377          (A) access number; or
             1378          (B) authorization code;
             1379          (c) that is dialed:
             1380          (i) manually; or
             1381          (ii) electronically; and
             1382          (d) sold in predetermined units or dollars that decline:
             1383          (i) by a known amount; and
             1384          (ii) with use.
             1385          (90) (a) "Prepared food" means:
             1386          (i) food:
             1387          (A) sold in a heated state; or
             1388          (B) heated by a seller;
             1389          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1390      item; or
             1391          (iii) except as provided in Subsection (90)(c), food sold with an eating utensil provided


             1392      by the seller, including a:
             1393          (A) plate;
             1394          (B) knife;
             1395          (C) fork;
             1396          (D) spoon;
             1397          (E) glass;
             1398          (F) cup;
             1399          (G) napkin; or
             1400          (H) straw.
             1401          (b) "Prepared food" does not include:
             1402          (i) food that a seller only:
             1403          (A) cuts;
             1404          (B) repackages; or
             1405          (C) pasteurizes; or
             1406          (ii) (A) the following:
             1407          (I) raw egg;
             1408          (II) raw fish;
             1409          (III) raw meat;
             1410          (IV) raw poultry; or
             1411          (V) a food containing an item described in Subsections (90)(b)(ii)(A)(I) through (IV);
             1412      and
             1413          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1414      Food and Drug Administration's Food Code that a consumer cook the items described in
             1415      Subsection (90)(b)(ii)(A) to prevent food borne illness; or
             1416          (iii) the following if sold without eating utensils provided by the seller:
             1417          (A) food and food ingredients sold by a seller if the seller's proper primary
             1418      classification under the 2002 North American Industry Classification System of the federal
             1419      Executive Office of the President, Office of Management and Budget, is manufacturing in
             1420      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             1421      Manufacturing;
             1422          (B) food and food ingredients sold in an unheated state:


             1423          (I) by weight or volume; and
             1424          (II) as a single item; or
             1425          (C) a bakery item, including:
             1426          (I) a bagel;
             1427          (II) a bar;
             1428          (III) a biscuit;
             1429          (IV) bread;
             1430          (V) a bun;
             1431          (VI) a cake;
             1432          (VII) a cookie;
             1433          (VIII) a croissant;
             1434          (IX) a danish;
             1435          (X) a donut;
             1436          (XI) a muffin;
             1437          (XII) a pastry;
             1438          (XIII) a pie;
             1439          (XIV) a roll;
             1440          (XV) a tart;
             1441          (XVI) a torte; or
             1442          (XVII) a tortilla.
             1443          (c) An eating utensil provided by the seller does not include the following used to
             1444      transport the food:
             1445          (i) a container; or
             1446          (ii) packaging.
             1447          (91) "Prescription" means an order, formula, or recipe that is issued:
             1448          (a) (i) orally;
             1449          (ii) in writing;
             1450          (iii) electronically; or
             1451          (iv) by any other manner of transmission; and
             1452          (b) by a licensed practitioner authorized by the laws of a state.
             1453          (92) (a) Except as provided in Subsection (92)(b)(ii) or (iii), "prewritten computer


             1454      software" means computer software that is not designed and developed:
             1455          (i) by the author or other creator of the computer software; and
             1456          (ii) to the specifications of a specific purchaser.
             1457          (b) "Prewritten computer software" includes:
             1458          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1459      software is not designed and developed:
             1460          (A) by the author or other creator of the computer software; and
             1461          (B) to the specifications of a specific purchaser;
             1462          (ii) computer software designed and developed by the author or other creator of the
             1463      computer software to the specifications of a specific purchaser if the computer software is sold
             1464      to a person other than the purchaser; or
             1465          (iii) except as provided in Subsection (92)(c), prewritten computer software or a
             1466      prewritten portion of prewritten computer software:
             1467          (A) that is modified or enhanced to any degree; and
             1468          (B) if the modification or enhancement described in Subsection (92)(b)(iii)(A) is
             1469      designed and developed to the specifications of a specific purchaser.
             1470          (c) "Prewritten computer software" does not include a modification or enhancement
             1471      described in Subsection (92)(b)(iii) if the charges for the modification or enhancement are:
             1472          (i) reasonable; and
             1473          (ii) separately stated on the invoice or other statement of price provided to the
             1474      purchaser.
             1475          (93) (a) "Private communication service" means a telecommunications service:
             1476          (i) that entitles a customer to exclusive or priority use of one or more communications
             1477      channels between or among termination points; and
             1478          (ii) regardless of the manner in which the one or more communications channels are
             1479      connected.
             1480          (b) "Private communications service" includes the following provided in connection
             1481      with the use of one or more communications channels:
             1482          (i) an extension line;
             1483          (ii) a station;
             1484          (iii) switching capacity; or


             1485          (iv) another associated service that is provided in connection with the use of one or
             1486      more communications channels as defined in Section 59-12-215 .
             1487          (94) (a) Except as provided in Subsection (94)(b), "product transferred electronically"
             1488      means a product transferred electronically that would be subject to a tax under this chapter if
             1489      that product was transferred in a manner other than electronically.
             1490          (b) "Product transferred electronically" does not include:
             1491          (i) an ancillary service;
             1492          (ii) computer software; or
             1493          (iii) a telecommunications service.
             1494          (95) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1495          (i) artificially replace a missing portion of the body;
             1496          (ii) prevent or correct a physical deformity or physical malfunction; or
             1497          (iii) support a weak or deformed portion of the body.
             1498          (b) "Prosthetic device" includes:
             1499          (i) parts used in the repairs or renovation of a prosthetic device;
             1500          (ii) replacement parts for a prosthetic device;
             1501          (iii) a dental prosthesis; or
             1502          (iv) a hearing aid.
             1503          (c) "Prosthetic device" does not include:
             1504          (i) corrective eyeglasses; or
             1505          (ii) contact lenses.
             1506          (96) (a) "Protective equipment" means an item:
             1507          (i) for human wear; and
             1508          (ii) that is:
             1509          (A) designed as protection:
             1510          (I) to the wearer against injury or disease; or
             1511          (II) against damage or injury of other persons or property; and
             1512          (B) not suitable for general use.
             1513          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1514      commission shall make rules:
             1515          (i) listing the items that constitute "protective equipment"; and


             1516          (ii) that are consistent with the list of items that constitute "protective equipment"
             1517      under the agreement.
             1518          (97) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             1519      printed matter, other than a photocopy:
             1520          (i) regardless of:
             1521          (A) characteristics;
             1522          (B) copyright;
             1523          (C) form;
             1524          (D) format;
             1525          (E) method of reproduction; or
             1526          (F) source; and
             1527          (ii) made available in printed or electronic format.
             1528          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1529      commission may by rule define the term "photocopy."
             1530          (98) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1531          (i) valued in money; and
             1532          (ii) for which tangible personal property, a product transferred electronically, or
             1533      services are:
             1534          (A) sold;
             1535          (B) leased; or
             1536          (C) rented.
             1537          (b) "Purchase price" and "sales price" include:
             1538          (i) the seller's cost of the tangible personal property, a product transferred
             1539      electronically, or services sold;
             1540          (ii) expenses of the seller, including:
             1541          (A) the cost of materials used;
             1542          (B) a labor cost;
             1543          (C) a service cost;
             1544          (D) interest;
             1545          (E) a loss;
             1546          (F) the cost of transportation to the seller; or


             1547          (G) a tax imposed on the seller;
             1548          (iii) a charge by the seller for any service necessary to complete the sale; or
             1549          (iv) consideration a seller receives from a person other than the purchaser if:
             1550          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1551      and
             1552          (II) the consideration described in Subsection (98)(b)(iv)(A)(I) is directly related to a
             1553      price reduction or discount on the sale;
             1554          (B) the seller has an obligation to pass the price reduction or discount through to the
             1555      purchaser;
             1556          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1557      the seller at the time of the sale to the purchaser; and
             1558          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1559      seller to claim a price reduction or discount; and
             1560          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1561      coupon, or other documentation with the understanding that the person other than the seller
             1562      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1563          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1564      organization allowed a price reduction or discount, except that a preferred customer card that is
             1565      available to any patron of a seller does not constitute membership in a group or organization
             1566      allowed a price reduction or discount; or
             1567          (III) the price reduction or discount is identified as a third party price reduction or
             1568      discount on the:
             1569          (Aa) invoice the purchaser receives; or
             1570          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1571          (c) "Purchase price" and "sales price" do not include:
             1572          (i) a discount:
             1573          (A) in a form including:
             1574          (I) cash;
             1575          (II) term; or
             1576          (III) coupon;
             1577          (B) that is allowed by a seller;


             1578          (C) taken by a purchaser on a sale; and
             1579          (D) that is not reimbursed by a third party; or
             1580          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1581      provided to the purchaser:
             1582          (A) the following from credit extended on the sale of tangible personal property or
             1583      services:
             1584          (I) a carrying charge;
             1585          (II) a financing charge; or
             1586          (III) an interest charge;
             1587          (B) a delivery charge;
             1588          (C) an installation charge;
             1589          (D) a manufacturer rebate on a motor vehicle; or
             1590          (E) a tax or fee legally imposed directly on the consumer.
             1591          (99) "Purchaser" means a person to whom:
             1592          (a) a sale of tangible personal property is made;
             1593          (b) a product is transferred electronically; or
             1594          (c) a service is furnished.
             1595          (100) "Regularly rented" means:
             1596          (a) rented to a guest for value three or more times during a calendar year; or
             1597          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1598      value.
             1599          (101) "Rental" is as defined in Subsection (58).
             1600          (102) (a) Except as provided in Subsection (102)(b), "repairs or renovations of tangible
             1601      personal property" means:
             1602          (i) a repair or renovation of tangible personal property that is not permanently attached
             1603      to real property; or
             1604          (ii) attaching tangible personal property or a product transferred electronically to other
             1605      tangible personal property or detaching tangible personal property or a product transferred
             1606      electronically from other tangible personal property if:
             1607          (A) the other tangible personal property to which the tangible personal property or
             1608      product transferred electronically is attached or from which the tangible personal property or


             1609      product transferred electronically is detached is not permanently attached to real property; and
             1610          (B) the attachment of tangible personal property or a product transferred electronically
             1611      to other tangible personal property or detachment of tangible personal property or a product
             1612      transferred electronically from other tangible personal property is made in conjunction with a
             1613      repair or replacement of tangible personal property or a product transferred electronically.
             1614          (b) "Repairs or renovations of tangible personal property" does not include:
             1615          (i) attaching prewritten computer software to other tangible personal property if the
             1616      other tangible personal property to which the prewritten computer software is attached is not
             1617      permanently attached to real property; or
             1618          (ii) detaching prewritten computer software from other tangible personal property if the
             1619      other tangible personal property from which the prewritten computer software is detached is
             1620      not permanently attached to real property.
             1621          (103) "Research and development" means the process of inquiry or experimentation
             1622      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1623      preparing those devices, technologies, or applications for marketing.
             1624          (104) (a) "Residential telecommunications services" means a telecommunications
             1625      service or an ancillary service that is provided to an individual for personal use:
             1626          (i) at a residential address; or
             1627          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1628      service or ancillary service is provided to and paid for by the individual residing at the
             1629      institution rather than the institution.
             1630          (b) For purposes of Subsection (104)(a)(i), a residential address includes an:
             1631          (i) apartment; or
             1632          (ii) other individual dwelling unit.
             1633          (105) "Residential use" means the use in or around a home, apartment building,
             1634      sleeping quarters, and similar facilities or accommodations.
             1635          (106) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1636      than:
             1637          (a) resale;
             1638          (b) sublease; or
             1639          (c) subrent.


             1640          (107) (a) "Retailer" means any person engaged in a regularly organized business in
             1641      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1642      who is selling to the user or consumer and not for resale.
             1643          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1644      engaged in the business of selling to users or consumers within the state.
             1645          (108) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1646      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1647      Subsection 59-12-103 (1), for consideration.
             1648          (b) "Sale" includes:
             1649          (i) installment and credit sales;
             1650          (ii) any closed transaction constituting a sale;
             1651          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1652      chapter;
             1653          (iv) any transaction if the possession of property is transferred but the seller retains the
             1654      title as security for the payment of the price; and
             1655          (v) any transaction under which right to possession, operation, or use of any article of
             1656      tangible personal property is granted under a lease or contract and the transfer of possession
             1657      would be taxable if an outright sale were made.
             1658          (109) "Sale at retail" is as defined in Subsection (106).
             1659          (110) "Sale-leaseback transaction" means a transaction by which title to tangible
             1660      personal property or a product transferred electronically that is subject to a tax under this
             1661      chapter is transferred:
             1662          (a) by a purchaser-lessee;
             1663          (b) to a lessor;
             1664          (c) for consideration; and
             1665          (d) if:
             1666          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1667      of the tangible personal property or product transferred electronically;
             1668          (ii) the sale of the tangible personal property or product transferred electronically to the
             1669      lessor is intended as a form of financing:
             1670          (A) for the tangible personal property or product transferred electronically; and


             1671          (B) to the purchaser-lessee; and
             1672          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1673      is required to:
             1674          (A) capitalize the tangible personal property or product transferred electronically for
             1675      financial reporting purposes; and
             1676          (B) account for the lease payments as payments made under a financing arrangement.
             1677          (111) "Sales price" is as defined in Subsection (98).
             1678          (112) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1679      amounts charged by a school:
             1680          (i) sales that are directly related to the school's educational functions or activities
             1681      including:
             1682          (A) the sale of:
             1683          (I) textbooks;
             1684          (II) textbook fees;
             1685          (III) laboratory fees;
             1686          (IV) laboratory supplies; or
             1687          (V) safety equipment;
             1688          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1689      that:
             1690          (I) a student is specifically required to wear as a condition of participation in a
             1691      school-related event or school-related activity; and
             1692          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1693      place of ordinary clothing;
             1694          (C) sales of the following if the net or gross revenues generated by the sales are
             1695      deposited into a school district fund or school fund dedicated to school meals:
             1696          (I) food and food ingredients; or
             1697          (II) prepared food; or
             1698          (D) transportation charges for official school activities; or
             1699          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1700      event or school-related activity.
             1701          (b) "Sales relating to schools" does not include:


             1702          (i) bookstore sales of items that are not educational materials or supplies;
             1703          (ii) except as provided in Subsection (112)(a)(i)(B):
             1704          (A) clothing;
             1705          (B) clothing accessories or equipment;
             1706          (C) protective equipment; or
             1707          (D) sports or recreational equipment; or
             1708          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1709      event or school-related activity if the amounts paid or charged are passed through to a person:
             1710          (A) other than a:
             1711          (I) school;
             1712          (II) nonprofit organization authorized by a school board or a governing body of a
             1713      private school to organize and direct a competitive secondary school activity; or
             1714          (III) nonprofit association authorized by a school board or a governing body of a
             1715      private school to organize and direct a competitive secondary school activity; and
             1716          (B) that is required to collect sales and use taxes under this chapter.
             1717          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1718      commission may make rules defining the term "passed through."
             1719          (113) For purposes of this section and Section 59-12-104 , "school":
             1720          (a) means:
             1721          (i) an elementary school or a secondary school that:
             1722          (A) is a:
             1723          (I) public school; or
             1724          (II) private school; and
             1725          (B) provides instruction for one or more grades kindergarten through 12; or
             1726          (ii) a public school district; and
             1727          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1728          (114) "Seller" means a person that makes a sale, lease, or rental of:
             1729          (a) tangible personal property;
             1730          (b) a product transferred electronically; or
             1731          (c) a service.
             1732          (115) (a) "Semiconductor fabricating, processing, research, or development materials"


             1733      means tangible personal property or a product transferred electronically if the tangible personal
             1734      property or product transferred electronically is:
             1735          (i) used primarily in the process of:
             1736          (A) (I) manufacturing a semiconductor;
             1737          (II) fabricating a semiconductor; or
             1738          (III) research or development of a:
             1739          (Aa) semiconductor; or
             1740          (Bb) semiconductor manufacturing process; or
             1741          (B) maintaining an environment suitable for a semiconductor; or
             1742          (ii) consumed primarily in the process of:
             1743          (A) (I) manufacturing a semiconductor;
             1744          (II) fabricating a semiconductor; or
             1745          (III) research or development of a:
             1746          (Aa) semiconductor; or
             1747          (Bb) semiconductor manufacturing process; or
             1748          (B) maintaining an environment suitable for a semiconductor.
             1749          (b) "Semiconductor fabricating, processing, research, or development materials"
             1750      includes:
             1751          (i) parts used in the repairs or renovations of tangible personal property or a product
             1752      transferred electronically described in Subsection (115)(a); or
             1753          (ii) a chemical, catalyst, or other material used to:
             1754          (A) produce or induce in a semiconductor a:
             1755          (I) chemical change; or
             1756          (II) physical change;
             1757          (B) remove impurities from a semiconductor; or
             1758          (C) improve the marketable condition of a semiconductor.
             1759          (116) "Senior citizen center" means a facility having the primary purpose of providing
             1760      services to the aged as defined in Section 62A-3-101 .
             1761          (117) (a) Subject to Subsections (117)(b) and (c), "short-term lodging consumable"
             1762      means tangible personal property that:
             1763          (i) a business that provides accommodations and services described in Subsection


             1764      59-12-103 (1)(i) purchases as part of a transaction to provide the accommodations and services
             1765      to a purchaser;
             1766          (ii) is intended to be consumed by the purchaser; and
             1767          (iii) is:
             1768          (A) included in the purchase price of the accommodations and services; and
             1769          (B) not separately stated on an invoice, bill of sale, or other similar document provided
             1770      to the purchaser.
             1771          (b) "Short-term lodging consumable" includes:
             1772          (i) a beverage;
             1773          (ii) a brush or comb;
             1774          (iii) a cosmetic;
             1775          (iv) a hair care product;
             1776          (v) lotion;
             1777          (vi) a magazine;
             1778          (vii) makeup;
             1779          (viii) a meal;
             1780          (ix) mouthwash;
             1781          (x) nail polish remover;
             1782          (xi) a newspaper;
             1783          (xii) a notepad;
             1784          (xiii) a pen;
             1785          (xiv) a pencil;
             1786          (xv) a razor;
             1787          (xvi) saline solution;
             1788          (xvii) a sewing kit;
             1789          (xviii) shaving cream;
             1790          (xix) a shoe shine kit;
             1791          (xx) a shower cap;
             1792          (xxi) a snack item;
             1793          (xxii) soap;
             1794          (xxiii) toilet paper;


             1795          (xxiv) a toothbrush;
             1796          (xxv) toothpaste; or
             1797          (xxvi) an item similar to Subsections (117)(b)(i) through (xxv) as the commission may
             1798      provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1799      Rulemaking Act.
             1800          (c) "Short-term lodging consumable" does not include:
             1801          (i) tangible personal property that is cleaned or washed to allow the tangible personal
             1802      property to be reused; or
             1803          (ii) a product transferred electronically.
             1804          (118) "Simplified electronic return" means the electronic return:
             1805          (a) described in Section 318(C) of the agreement; and
             1806          (b) approved by the governing board of the agreement.
             1807          (119) "Solar energy" means the sun used as the sole source of energy for producing
             1808      electricity.
             1809          (120) (a) "Sports or recreational equipment" means an item:
             1810          (i) designed for human use; and
             1811          (ii) that is:
             1812          (A) worn in conjunction with:
             1813          (I) an athletic activity; or
             1814          (II) a recreational activity; and
             1815          (B) not suitable for general use.
             1816          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1817      commission shall make rules:
             1818          (i) listing the items that constitute "sports or recreational equipment"; and
             1819          (ii) that are consistent with the list of items that constitute "sports or recreational
             1820      equipment" under the agreement.
             1821          (121) "State" means the state of Utah, its departments, and agencies.
             1822          (122) "Storage" means any keeping or retention of tangible personal property or any
             1823      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1824      sale in the regular course of business.
             1825          (123) (a) Except as provided in Subsection (123)(d) or (e), "tangible personal property"


             1826      means personal property that:
             1827          (i) may be:
             1828          (A) seen;
             1829          (B) weighed;
             1830          (C) measured;
             1831          (D) felt; or
             1832          (E) touched; or
             1833          (ii) is in any manner perceptible to the senses.
             1834          (b) "Tangible personal property" includes:
             1835          (i) electricity;
             1836          (ii) water;
             1837          (iii) gas;
             1838          (iv) steam; or
             1839          (v) prewritten computer software, regardless of the manner in which the prewritten
             1840      computer software is transferred.
             1841          (c) "Tangible personal property" includes the following regardless of whether the item
             1842      is attached to real property:
             1843          (i) a dishwasher;
             1844          (ii) a dryer;
             1845          (iii) a freezer;
             1846          (iv) a microwave;
             1847          (v) a refrigerator;
             1848          (vi) a stove;
             1849          (vii) a washer; or
             1850          (viii) an item similar to Subsections (123)(c)(i) through (vii) as determined by the
             1851      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1852      Rulemaking Act.
             1853          (d) "Tangible personal property" does not include a product that is transferred
             1854      electronically.
             1855          (e) "Tangible personal property" does not include the following if attached to real
             1856      property, regardless of whether the attachment to real property is only through a line that


             1857      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1858      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1859      Rulemaking Act:
             1860          (i) a hot water heater;
             1861          (ii) a water filtration system; or
             1862          (iii) a water softener system.
             1863          (124) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1864      software" means an item listed in Subsection (124)(b) if that item is purchased or leased
             1865      primarily to enable or facilitate one or more of the following to function:
             1866          (i) telecommunications switching or routing equipment, machinery, or software; or
             1867          (ii) telecommunications transmission equipment, machinery, or software.
             1868          (b) The following apply to Subsection (124)(a):
             1869          (i) a pole;
             1870          (ii) software;
             1871          (iii) a supplementary power supply;
             1872          (iv) temperature or environmental equipment or machinery;
             1873          (v) test equipment;
             1874          (vi) a tower; or
             1875          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1876      Subsections (124)(b)(i) through (vi) as determined by the commission by rule made in
             1877      accordance with Subsection (124)(c).
             1878          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1879      commission may by rule define what constitutes equipment, machinery, or software that
             1880      functions similarly to an item listed in Subsections (124)(b)(i) through (vi).
             1881          (125) "Telecommunications equipment, machinery, or software required for 911
             1882      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1883      Sec. 20.18.
             1884          (126) "Telecommunications maintenance or repair equipment, machinery, or software"
             1885      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1886      one or more of the following, regardless of whether the equipment, machinery, or software is
             1887      purchased or leased as a spare part or as an upgrade or modification to one or more of the


             1888      following:
             1889          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1890          (b) telecommunications switching or routing equipment, machinery, or software; or
             1891          (c) telecommunications transmission equipment, machinery, or software.
             1892          (127) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1893      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1894      among or between points.
             1895          (b) "Telecommunications service" includes:
             1896          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1897      processing application is used to act:
             1898          (A) on the code, form, or protocol of the content;
             1899          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1900          (C) regardless of whether the service:
             1901          (I) is referred to as voice over Internet protocol service; or
             1902          (II) is classified by the Federal Communications Commission as enhanced or value
             1903      added;
             1904          (ii) an 800 service;
             1905          (iii) a 900 service;
             1906          (iv) a fixed wireless service;
             1907          (v) a mobile wireless service;
             1908          (vi) a postpaid calling service;
             1909          (vii) a prepaid calling service;
             1910          (viii) a prepaid wireless calling service; or
             1911          (ix) a private communications service.
             1912          (c) "Telecommunications service" does not include:
             1913          (i) advertising, including directory advertising;
             1914          (ii) an ancillary service;
             1915          (iii) a billing and collection service provided to a third party;
             1916          (iv) a data processing and information service if:
             1917          (A) the data processing and information service allows data to be:
             1918          (I) (Aa) acquired;


             1919          (Bb) generated;
             1920          (Cc) processed;
             1921          (Dd) retrieved; or
             1922          (Ee) stored; and
             1923          (II) delivered by an electronic transmission to a purchaser; and
             1924          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1925      or information;
             1926          (v) installation or maintenance of the following on a customer's premises:
             1927          (A) equipment; or
             1928          (B) wiring;
             1929          (vi) Internet access service;
             1930          (vii) a paging service;
             1931          (viii) a product transferred electronically, including:
             1932          (A) music;
             1933          (B) reading material;
             1934          (C) a ring tone;
             1935          (D) software; or
             1936          (E) video;
             1937          (ix) a radio and television audio and video programming service:
             1938          (A) regardless of the medium; and
             1939          (B) including:
             1940          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1941      programming service by a programming service provider;
             1942          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1943          (III) audio and video programming services delivered by a commercial mobile radio
             1944      service provider as defined in 47 C.F.R. Sec. 20.3;
             1945          (x) a value-added nonvoice data service; or
             1946          (xi) tangible personal property.
             1947          (128) (a) "Telecommunications service provider" means a person that:
             1948          (i) owns, controls, operates, or manages a telecommunications service; and
             1949          (ii) engages in an activity described in Subsection (128)(a)(i) for the shared use with or


             1950      resale to any person of the telecommunications service.
             1951          (b) A person described in Subsection (128)(a) is a telecommunications service provider
             1952      whether or not the Public Service Commission of Utah regulates:
             1953          (i) that person; or
             1954          (ii) the telecommunications service that the person owns, controls, operates, or
             1955      manages.
             1956          (129) (a) "Telecommunications switching or routing equipment, machinery, or
             1957      software" means an item listed in Subsection (129)(b) if that item is purchased or leased
             1958      primarily for switching or routing:
             1959          (i) an ancillary service;
             1960          (ii) data communications;
             1961          (iii) voice communications; or
             1962          (iv) telecommunications service.
             1963          (b) The following apply to Subsection (129)(a):
             1964          (i) a bridge;
             1965          (ii) a computer;
             1966          (iii) a cross connect;
             1967          (iv) a modem;
             1968          (v) a multiplexer;
             1969          (vi) plug in circuitry;
             1970          (vii) a router;
             1971          (viii) software;
             1972          (ix) a switch; or
             1973          (x) equipment, machinery, or software that functions similarly to an item listed in
             1974      Subsections (129)(b)(i) through (ix) as determined by the commission by rule made in
             1975      accordance with Subsection (129)(c).
             1976          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1977      commission may by rule define what constitutes equipment, machinery, or software that
             1978      functions similarly to an item listed in Subsections (129)(b)(i) through (ix).
             1979          (130) (a) "Telecommunications transmission equipment, machinery, or software"
             1980      means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for


             1981      sending, receiving, or transporting:
             1982          (i) an ancillary service;
             1983          (ii) data communications;
             1984          (iii) voice communications; or
             1985          (iv) telecommunications service.
             1986          (b) The following apply to Subsection (130)(a):
             1987          (i) an amplifier;
             1988          (ii) a cable;
             1989          (iii) a closure;
             1990          (iv) a conduit;
             1991          (v) a controller;
             1992          (vi) a duplexer;
             1993          (vii) a filter;
             1994          (viii) an input device;
             1995          (ix) an input/output device;
             1996          (x) an insulator;
             1997          (xi) microwave machinery or equipment;
             1998          (xii) an oscillator;
             1999          (xiii) an output device;
             2000          (xiv) a pedestal;
             2001          (xv) a power converter;
             2002          (xvi) a power supply;
             2003          (xvii) a radio channel;
             2004          (xviii) a radio receiver;
             2005          (xix) a radio transmitter;
             2006          (xx) a repeater;
             2007          (xxi) software;
             2008          (xxii) a terminal;
             2009          (xxiii) a timing unit;
             2010          (xxiv) a transformer;
             2011          (xxv) a wire; or


             2012          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2013      Subsections (130)(b)(i) through (xxv) as determined by the commission by rule made in
             2014      accordance with Subsection (130)(c).
             2015          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2016      commission may by rule define what constitutes equipment, machinery, or software that
             2017      functions similarly to an item listed in Subsections (130)(b)(i) through (xxv).
             2018          (131) (a) "Textbook for a higher education course" means a textbook or other printed
             2019      material that is required for a course:
             2020          (i) offered by an institution of higher education; and
             2021          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2022          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             2023          (132) "Tobacco" means:
             2024          (a) a cigarette;
             2025          (b) a cigar;
             2026          (c) chewing tobacco;
             2027          (d) pipe tobacco; or
             2028          (e) any other item that contains tobacco.
             2029          (133) "Unassisted amusement device" means an amusement device, skill device, or
             2030      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             2031      the amusement device, skill device, or ride device.
             2032          (134) (a) "Use" means the exercise of any right or power over tangible personal
             2033      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2034      incident to the ownership or the leasing of that tangible personal property, product transferred
             2035      electronically, or service.
             2036          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             2037      property, a product transferred electronically, or a service in the regular course of business and
             2038      held for resale.
             2039          (135) "Value-added nonvoice data service" means a service:
             2040          (a) that otherwise meets the definition of a telecommunications service except that a
             2041      computer processing application is used to act primarily for a purpose other than conveyance,
             2042      routing, or transmission; and


             2043          (b) with respect to which a computer processing application is used to act on data or
             2044      information:
             2045          (i) code;
             2046          (ii) content;
             2047          (iii) form; or
             2048          (iv) protocol.
             2049          (136) (a) Subject to Subsection (136)(b), "vehicle" means the following that are
             2050      required to be titled, registered, or titled and registered:
             2051          (i) an aircraft as defined in Section 72-10-102 ;
             2052          (ii) a vehicle as defined in Section 41-1a-102 ;
             2053          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2054          (iv) a vessel as defined in Section 41-1a-102 .
             2055          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             2056          (i) a vehicle described in Subsection (136)(a); or
             2057          (ii) (A) a locomotive;
             2058          (B) a freight car;
             2059          (C) railroad work equipment; or
             2060          (D) other railroad rolling stock.
             2061          (137) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             2062      exchanging a vehicle as defined in Subsection (136).
             2063          (138) (a) "Vertical service" means an ancillary service that:
             2064          (i) is offered in connection with one or more telecommunications services; and
             2065          (ii) offers an advanced calling feature that allows a customer to:
             2066          (A) identify a caller; and
             2067          (B) manage multiple calls and call connections.
             2068          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2069      conference bridging service.
             2070          (139) (a) "Voice mail service" means an ancillary service that enables a customer to
             2071      receive, send, or store a recorded message.
             2072          (b) "Voice mail service" does not include a vertical service that a customer is required
             2073      to have in order to utilize a voice mail service.


             2074          (140) (a) Except as provided in Subsection (140)(b), "waste energy facility" means a
             2075      facility that generates electricity:
             2076          (i) using as the primary source of energy waste materials that would be placed in a
             2077      landfill or refuse pit if it were not used to generate electricity, including:
             2078          (A) tires;
             2079          (B) waste coal;
             2080          (C) oil shale; or
             2081          (D) municipal solid waste; and
             2082          (ii) in amounts greater than actually required for the operation of the facility.
             2083          (b) "Waste energy facility" does not include a facility that incinerates:
             2084          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             2085          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2086          (141) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2087          (142) "Wind energy" means wind used as the sole source of energy to produce
             2088      electricity.
             2089          (143) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             2090      location by the United States Postal Service.
             2091          Section 8. Section 59-12-102 (Effective 07/01/14) is amended to read:
             2092           59-12-102 (Effective 07/01/14). Definitions.
             2093          As used in this chapter:
             2094          (1) "800 service" means a telecommunications service that:
             2095          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             2096          (b) is typically marketed:
             2097          (i) under the name 800 toll-free calling;
             2098          (ii) under the name 855 toll-free calling;
             2099          (iii) under the name 866 toll-free calling;
             2100          (iv) under the name 877 toll-free calling;
             2101          (v) under the name 888 toll-free calling; or
             2102          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             2103      Federal Communications Commission.
             2104          (2) (a) "900 service" means an inbound toll telecommunications service that:


             2105          (i) a subscriber purchases;
             2106          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             2107      the subscriber's:
             2108          (A) prerecorded announcement; or
             2109          (B) live service; and
             2110          (iii) is typically marketed:
             2111          (A) under the name 900 service; or
             2112          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             2113      Communications Commission.
             2114          (b) "900 service" does not include a charge for:
             2115          (i) a collection service a seller of a telecommunications service provides to a
             2116      subscriber; or
             2117          (ii) the following a subscriber sells to the subscriber's customer:
             2118          (A) a product; or
             2119          (B) a service.
             2120          (3) (a) "Admission or user fees" includes season passes.
             2121          (b) "Admission or user fees" does not include annual membership dues to private
             2122      organizations.
             2123          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             2124      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             2125      Agreement after November 12, 2002.
             2126          (5) "Agreement combined tax rate" means the sum of the tax rates:
             2127          (a) listed under Subsection (6); and
             2128          (b) that are imposed within a local taxing jurisdiction.
             2129          (6) "Agreement sales and use tax" means a tax imposed under:
             2130          (a) Subsection 59-12-103 (2)(a)(i)(A);
             2131          (b) Subsection 59-12-103 (2)(b)(i);
             2132          (c) Subsection 59-12-103 (2)(c)(i);
             2133          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             2134          (e) Section 59-12-204 ;
             2135          (f) Section 59-12-401 ;


             2136          (g) Section 59-12-402 ;
             2137          (h) Section 59-12-703 ;
             2138          (i) Section 59-12-802 ;
             2139          (j) Section 59-12-804 ;
             2140          (k) Section 59-12-1102 ;
             2141          (l) Section 59-12-1302 ;
             2142          (m) Section 59-12-1402 ;
             2143          (n) Section 59-12-1802 ;
             2144          (o) Section 59-12-2003 ;
             2145          (p) Section 59-12-2103 ;
             2146          (q) Section 59-12-2213 ;
             2147          (r) Section 59-12-2214 ;
             2148          (s) Section 59-12-2215 ;
             2149          (t) Section 59-12-2216 ;
             2150          (u) Section 59-12-2217 ; or
             2151          (v) Section 59-12-2218 .
             2152          (7) "Aircraft" is as defined in Section 72-10-102 .
             2153          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             2154          (a) except for:
             2155          (i) an airline as defined in Section 59-2-102 ; or
             2156          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             2157      includes a corporation that is qualified to do business but is not otherwise doing business in the
             2158      state, of an airline; and
             2159          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             2160      whether the business entity performs the following in this state:
             2161          (i) check, diagnose, overhaul, and repair:
             2162          (A) an onboard system of a fixed wing turbine powered aircraft; and
             2163          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             2164          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             2165      engine;
             2166          (iii) perform at least the following maintenance on a fixed wing turbine powered


             2167      aircraft:
             2168          (A) an inspection;
             2169          (B) a repair, including a structural repair or modification;
             2170          (C) changing landing gear; and
             2171          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             2172          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             2173      completely apply new paint to the fixed wing turbine powered aircraft; and
             2174          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             2175      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             2176      authority that certifies the fixed wing turbine powered aircraft.
             2177          (9) "Alcoholic beverage" means a beverage that:
             2178          (a) is suitable for human consumption; and
             2179          (b) contains .5% or more alcohol by volume.
             2180          (10) "Alternative energy" means:
             2181          (a) biomass energy;
             2182          (b) geothermal energy;
             2183          (c) hydroelectric energy;
             2184          (d) solar energy;
             2185          (e) wind energy; or
             2186          (f) energy that is derived from:
             2187          (i) coal-to-liquids;
             2188          (ii) nuclear fuel;
             2189          (iii) oil-impregnated diatomaceous earth;
             2190          (iv) oil sands;
             2191          (v) oil shale; or
             2192          (vi) petroleum coke.
             2193          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             2194      facility" means a facility that:
             2195          (i) uses alternative energy to produce electricity; and
             2196          (ii) has a production capacity of two megawatts or greater.
             2197          (b) A facility is an alternative energy electricity production facility regardless of


             2198      whether the facility is:
             2199          (i) connected to an electric grid; or
             2200          (ii) located on the premises of an electricity consumer.
             2201          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             2202      provision of telecommunications service.
             2203          (b) "Ancillary service" includes:
             2204          (i) a conference bridging service;
             2205          (ii) a detailed communications billing service;
             2206          (iii) directory assistance;
             2207          (iv) a vertical service; or
             2208          (v) a voice mail service.
             2209          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             2210          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             2211      device that is started and stopped by an individual:
             2212          (a) who is not the purchaser or renter of the right to use or operate the amusement
             2213      device, skill device, or ride device; and
             2214          (b) at the direction of the seller of the right to use the amusement device, skill device,
             2215      or ride device.
             2216          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             2217      washing of tangible personal property if the cleaning or washing labor is primarily performed
             2218      by an individual:
             2219          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             2220      property; and
             2221          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             2222      property.
             2223          (16) "Authorized carrier" means:
             2224          (a) in the case of vehicles operated over public highways, the holder of credentials
             2225      indicating that the vehicle is or will be operated pursuant to both the International Registration
             2226      Plan and the International Fuel Tax Agreement;
             2227          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             2228      certificate or air carrier's operating certificate; or


             2229          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             2230      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             2231          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             2232      following that is used as the primary source of energy to produce fuel or electricity:
             2233          (i) material from a plant or tree; or
             2234          (ii) other organic matter that is available on a renewable basis, including:
             2235          (A) slash and brush from forests and woodlands;
             2236          (B) animal waste;
             2237          (C) methane produced:
             2238          (I) at landfills; or
             2239          (II) as a byproduct of the treatment of wastewater residuals;
             2240          (D) aquatic plants; and
             2241          (E) agricultural products.
             2242          (b) "Biomass energy" does not include:
             2243          (i) black liquor;
             2244          (ii) treated woods; or
             2245          (iii) biomass from municipal solid waste other than methane produced:
             2246          (A) at landfills; or
             2247          (B) as a byproduct of the treatment of wastewater residuals.
             2248          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             2249      property, products, or services if the tangible personal property, products, or services are:
             2250          (i) distinct and identifiable; and
             2251          (ii) sold for one nonitemized price.
             2252          (b) "Bundled transaction" does not include:
             2253          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             2254      the basis of the selection by the purchaser of the items of tangible personal property included in
             2255      the transaction;
             2256          (ii) the sale of real property;
             2257          (iii) the sale of services to real property;
             2258          (iv) the retail sale of tangible personal property and a service if:
             2259          (A) the tangible personal property:


             2260          (I) is essential to the use of the service; and
             2261          (II) is provided exclusively in connection with the service; and
             2262          (B) the service is the true object of the transaction;
             2263          (v) the retail sale of two services if:
             2264          (A) one service is provided that is essential to the use or receipt of a second service;
             2265          (B) the first service is provided exclusively in connection with the second service; and
             2266          (C) the second service is the true object of the transaction;
             2267          (vi) a transaction that includes tangible personal property or a product subject to
             2268      taxation under this chapter and tangible personal property or a product that is not subject to
             2269      taxation under this chapter if the:
             2270          (A) seller's purchase price of the tangible personal property or product subject to
             2271      taxation under this chapter is de minimis; or
             2272          (B) seller's sales price of the tangible personal property or product subject to taxation
             2273      under this chapter is de minimis; and
             2274          (vii) the retail sale of tangible personal property that is not subject to taxation under
             2275      this chapter and tangible personal property that is subject to taxation under this chapter if:
             2276          (A) that retail sale includes:
             2277          (I) food and food ingredients;
             2278          (II) a drug;
             2279          (III) durable medical equipment;
             2280          (IV) mobility enhancing equipment;
             2281          (V) an over-the-counter drug;
             2282          (VI) a prosthetic device; or
             2283          (VII) a medical supply; and
             2284          (B) subject to Subsection (18)(f):
             2285          (I) the seller's purchase price of the tangible personal property subject to taxation under
             2286      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             2287          (II) the seller's sales price of the tangible personal property subject to taxation under
             2288      this chapter is 50% or less of the seller's total sales price of that retail sale.
             2289          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             2290      service that is distinct and identifiable does not include:


             2291          (A) packaging that:
             2292          (I) accompanies the sale of the tangible personal property, product, or service; and
             2293          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             2294      service;
             2295          (B) tangible personal property, a product, or a service provided free of charge with the
             2296      purchase of another item of tangible personal property, a product, or a service; or
             2297          (C) an item of tangible personal property, a product, or a service included in the
             2298      definition of "purchase price."
             2299          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             2300      product, or a service is provided free of charge with the purchase of another item of tangible
             2301      personal property, a product, or a service if the sales price of the purchased item of tangible
             2302      personal property, product, or service does not vary depending on the inclusion of the tangible
             2303      personal property, product, or service provided free of charge.
             2304          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             2305      does not include a price that is separately identified by tangible personal property, product, or
             2306      service on the following, regardless of whether the following is in paper format or electronic
             2307      format:
             2308          (A) a binding sales document; or
             2309          (B) another supporting sales-related document that is available to a purchaser.
             2310          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             2311      supporting sales-related document that is available to a purchaser includes:
             2312          (A) a bill of sale;
             2313          (B) a contract;
             2314          (C) an invoice;
             2315          (D) a lease agreement;
             2316          (E) a periodic notice of rates and services;
             2317          (F) a price list;
             2318          (G) a rate card;
             2319          (H) a receipt; or
             2320          (I) a service agreement.
             2321          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal


             2322      property or a product subject to taxation under this chapter is de minimis if:
             2323          (A) the seller's purchase price of the tangible personal property or product is 10% or
             2324      less of the seller's total purchase price of the bundled transaction; or
             2325          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             2326      the seller's total sales price of the bundled transaction.
             2327          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             2328          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             2329      purchase price or sales price of the tangible personal property or product subject to taxation
             2330      under this chapter is de minimis; and
             2331          (B) may not use a combination of the seller's purchase price and the seller's sales price
             2332      to determine if the purchase price or sales price of the tangible personal property or product
             2333      subject to taxation under this chapter is de minimis.
             2334          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             2335      contract to determine if the sales price of tangible personal property or a product is de minimis.
             2336          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             2337      the seller's purchase price and the seller's sales price to determine if tangible personal property
             2338      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             2339      price of that retail sale.
             2340          (19) "Certified automated system" means software certified by the governing board of
             2341      the agreement that:
             2342          (a) calculates the agreement sales and use tax imposed within a local taxing
             2343      jurisdiction:
             2344          (i) on a transaction; and
             2345          (ii) in the states that are members of the agreement;
             2346          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             2347      member of the agreement; and
             2348          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             2349          (20) "Certified service provider" means an agent certified:
             2350          (a) by the governing board of the agreement; and
             2351          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             2352      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's


             2353      own purchases.
             2354          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             2355      suitable for general use.
             2356          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2357      commission shall make rules:
             2358          (i) listing the items that constitute "clothing"; and
             2359          (ii) that are consistent with the list of items that constitute "clothing" under the
             2360      agreement.
             2361          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             2362          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             2363      fuels that does not constitute industrial use under Subsection (55) or residential use under
             2364      Subsection (105).
             2365          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             2366      transporting passengers, freight, merchandise, or other property for hire within this state.
             2367          (b) (i) "Common carrier" does not include a person who, at the time the person is
             2368      traveling to or from that person's place of employment, transports a passenger to or from the
             2369      passenger's place of employment.
             2370          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             2371      Utah Administrative Rulemaking Act, the commission may make rules defining what
             2372      constitutes a person's place of employment.
             2373          (25) "Component part" includes:
             2374          (a) poultry, dairy, and other livestock feed, and their components;
             2375          (b) baling ties and twine used in the baling of hay and straw;
             2376          (c) fuel used for providing temperature control of orchards and commercial
             2377      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             2378      off-highway type farm machinery; and
             2379          (d) feed, seeds, and seedlings.
             2380          (26) "Computer" means an electronic device that:
             2381          (a) accepts information:
             2382          [(a)] (i) in digital form; or
             2383          (ii) in a form similar to digital form; and


             2384          (b) manipulates that information for a result based on a sequence of instructions.
             2385          (27) "Computer software" means a set of coded instructions designed to cause:
             2386          (a) a computer to perform a task; or
             2387          (b) automatic data processing equipment to perform a task.
             2388          (28) "Computer software maintenance contract" means a contract that obligates a seller
             2389      of computer software to provide a customer with:
             2390          (a) future updates or upgrades to computer software;
             2391          (b) support services with respect to computer software; or
             2392          (c) a combination of Subsections (28)(a) and (b).
             2393          (29) (a) "Conference bridging service" means an ancillary service that links two or
             2394      more participants of an audio conference call or video conference call.
             2395          (b) "Conference bridging service" may include providing a telephone number as part of
             2396      the ancillary service described in Subsection (29)(a).
             2397          (c) "Conference bridging service" does not include a telecommunications service used
             2398      to reach the ancillary service described in Subsection (29)(a).
             2399          (30) "Construction materials" means any tangible personal property that will be
             2400      converted into real property.
             2401          (31) "Delivered electronically" means delivered to a purchaser by means other than
             2402      tangible storage media.
             2403          (32) (a) "Delivery charge" means a charge:
             2404          (i) by a seller of:
             2405          (A) tangible personal property;
             2406          (B) a product transferred electronically; or
             2407          (C) services; and
             2408          (ii) for preparation and delivery of the tangible personal property, product transferred
             2409      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             2410      purchaser.
             2411          (b) "Delivery charge" includes a charge for the following:
             2412          (i) transportation;
             2413          (ii) shipping;
             2414          (iii) postage;


             2415          (iv) handling;
             2416          (v) crating; or
             2417          (vi) packing.
             2418          (33) "Detailed telecommunications billing service" means an ancillary service of
             2419      separately stating information pertaining to individual calls on a customer's billing statement.
             2420          (34) "Dietary supplement" means a product, other than tobacco, that:
             2421          (a) is intended to supplement the diet;
             2422          (b) contains one or more of the following dietary ingredients:
             2423          (i) a vitamin;
             2424          (ii) a mineral;
             2425          (iii) an herb or other botanical;
             2426          (iv) an amino acid;
             2427          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             2428      dietary intake; or
             2429          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             2430      described in Subsections (34)(b)(i) through (v);
             2431          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             2432          (A) tablet form;
             2433          (B) capsule form;
             2434          (C) powder form;
             2435          (D) softgel form;
             2436          (E) gelcap form; or
             2437          (F) liquid form; or
             2438          (ii) if the product is not intended for ingestion in a form described in Subsections
             2439      (34)(c)(i)(A) through (F), is not represented:
             2440          (A) as conventional food; and
             2441          (B) for use as a sole item of:
             2442          (I) a meal; or
             2443          (II) the diet; and
             2444          (d) is required to be labeled as a dietary supplement:
             2445          (i) identifiable by the "Supplemental Facts" box found on the label; and


             2446          (ii) as required by 21 C.F.R. Sec. 101.36.
             2447          (35) (a) "Digital audio work" means a work that results from the fixation of a series of
             2448      musical, spoken, or other sounds.
             2449          (b) "Digital audio work" includes a ringtone.
             2450          (36) "Digital audio-visual work" means a series of related images which, when shown
             2451      in succession, imparts an impression of motion, together with accompanying sounds, if any.
             2452          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
             2453      sense as a book.
             2454          (38) (a) "Direct mail" means printed material delivered or distributed by United States
             2455      mail or other delivery service:
             2456          (i) to:
             2457          (A) a mass audience; or
             2458          (B) addressees on a mailing list provided:
             2459          (I) by a purchaser of the mailing list; or
             2460          (II) at the discretion of the purchaser of the mailing list; and
             2461          (ii) if the cost of the printed material is not billed directly to the recipients.
             2462          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             2463      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             2464          (c) "Direct mail" does not include multiple items of printed material delivered to a
             2465      single address.
             2466          (39) "Directory assistance" means an ancillary service of providing:
             2467          (a) address information; or
             2468          (b) telephone number information.
             2469          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
             2470      or supplies that:
             2471          (i) cannot withstand repeated use; and
             2472          (ii) are purchased by, for, or on behalf of a person other than:
             2473          (A) a health care facility as defined in Section 26-21-2 ;
             2474          (B) a health care provider as defined in Section 78B-3-403 ;
             2475          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
             2476          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).


             2477          (b) "Disposable home medical equipment or supplies" does not include:
             2478          (i) a drug;
             2479          (ii) durable medical equipment;
             2480          (iii) a hearing aid;
             2481          (iv) a hearing aid accessory;
             2482          (v) mobility enhancing equipment; or
             2483          (vi) tangible personal property used to correct impaired vision, including:
             2484          (A) eyeglasses; or
             2485          (B) contact lenses.
             2486          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2487      commission may by rule define what constitutes medical equipment or supplies.
             2488          (41) (a) "Drug" means a compound, substance, or preparation, or a component of a
             2489      compound, substance, or preparation that is:
             2490          (i) recognized in:
             2491          (A) the official United States Pharmacopoeia;
             2492          (B) the official Homeopathic Pharmacopoeia of the United States;
             2493          (C) the official National Formulary; or
             2494          (D) a supplement to a publication listed in Subsections (41)(a)(i)(A) through (C);
             2495          (ii) intended for use in the:
             2496          (A) diagnosis of disease;
             2497          (B) cure of disease;
             2498          (C) mitigation of disease;
             2499          (D) treatment of disease; or
             2500          (E) prevention of disease; or
             2501          (iii) intended to affect:
             2502          (A) the structure of the body; or
             2503          (B) any function of the body.
             2504          (b) "Drug" does not include:
             2505          (i) food and food ingredients;
             2506          (ii) a dietary supplement;
             2507          (iii) an alcoholic beverage; or


             2508          (iv) a prosthetic device.
             2509          (42) (a) Except as provided in Subsection (42)(c), "durable medical equipment" means
             2510      equipment that:
             2511          (i) can withstand repeated use;
             2512          (ii) is primarily and customarily used to serve a medical purpose;
             2513          (iii) generally is not useful to a person in the absence of illness or injury; and
             2514          (iv) is not worn in or on the body.
             2515          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             2516      equipment described in Subsection (42)(a).
             2517          (c) "Durable medical equipment" does not include mobility enhancing equipment.
             2518          (43) "Electronic" means:
             2519          (a) relating to technology; and
             2520          (b) having:
             2521          (i) electrical capabilities;
             2522          (ii) digital capabilities;
             2523          (iii) magnetic capabilities;
             2524          (iv) wireless capabilities;
             2525          (v) optical capabilities;
             2526          (vi) electromagnetic capabilities; or
             2527          (vii) capabilities similar to Subsections (43)(b)(i) through (vi).
             2528          (44) "Electronic financial payment service" means an establishment:
             2529          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
             2530      Clearinghouse Activities, of the 2012 North American Industry Classification System of the
             2531      federal Executive Office of the President, Office of Management and Budget; and
             2532          (b) that performs electronic financial payment services.
             2533          (45) "Employee" is as defined in Section 59-10-401 .
             2534          (46) "Fixed guideway" means a public transit facility that uses and occupies:
             2535          (a) rail for the use of public transit; or
             2536          (b) a separate right-of-way for the use of public transit.
             2537          (47) "Fixed wing turbine powered aircraft" means an aircraft that:
             2538          (a) is powered by turbine engines;


             2539          (b) operates on jet fuel; and
             2540          (c) has wings that are permanently attached to the fuselage of the aircraft.
             2541          (48) "Fixed wireless service" means a telecommunications service that provides radio
             2542      communication between fixed points.
             2543          (49) (a) "Food and food ingredients" means substances:
             2544          (i) regardless of whether the substances are in:
             2545          (A) liquid form;
             2546          (B) concentrated form;
             2547          (C) solid form;
             2548          (D) frozen form;
             2549          (E) dried form; or
             2550          (F) dehydrated form; and
             2551          (ii) that are:
             2552          (A) sold for:
             2553          (I) ingestion by humans; or
             2554          (II) chewing by humans; and
             2555          (B) consumed for the substance's:
             2556          (I) taste; or
             2557          (II) nutritional value.
             2558          (b) "Food and food ingredients" includes an item described in Subsection (90)(b)(iii).
             2559          (c) "Food and food ingredients" does not include:
             2560          (i) an alcoholic beverage;
             2561          (ii) tobacco; or
             2562          (iii) prepared food.
             2563          (50) (a) "Fundraising sales" means sales:
             2564          (i) (A) made by a school; or
             2565          (B) made by a school student;
             2566          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             2567      materials, or provide transportation; and
             2568          (iii) that are part of an officially sanctioned school activity.
             2569          (b) For purposes of Subsection (50)(a)(iii), "officially sanctioned school activity"


             2570      means a school activity:
             2571          (i) that is conducted in accordance with a formal policy adopted by the school or school
             2572      district governing the authorization and supervision of fundraising activities;
             2573          (ii) that does not directly or indirectly compensate an individual teacher or other
             2574      educational personnel by direct payment, commissions, or payment in kind; and
             2575          (iii) the net or gross revenues from which are deposited in a dedicated account
             2576      controlled by the school or school district.
             2577          (51) "Geothermal energy" means energy contained in heat that continuously flows
             2578      outward from the earth that is used as the sole source of energy to produce electricity.
             2579          (52) "Governing board of the agreement" means the governing board of the agreement
             2580      that is:
             2581          (a) authorized to administer the agreement; and
             2582          (b) established in accordance with the agreement.
             2583          (53) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             2584          (i) the executive branch of the state, including all departments, institutions, boards,
             2585      divisions, bureaus, offices, commissions, and committees;
             2586          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             2587      Office of the Court Administrator, and similar administrative units in the judicial branch;
             2588          (iii) the legislative branch of the state, including the House of Representatives, the
             2589      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             2590      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             2591      Analyst;
             2592          (iv) the National Guard;
             2593          (v) an independent entity as defined in Section 63E-1-102 ; or
             2594          (vi) a political subdivision as defined in Section 17B-1-102 .
             2595          (b) "Governmental entity" does not include the state systems of public and higher
             2596      education, including:
             2597          (i) a college campus of the Utah College of Applied Technology;
             2598          (ii) a school;
             2599          (iii) the State Board of Education;
             2600          (iv) the State Board of Regents; or


             2601          (v) an institution of higher education.
             2602          (54) "Hydroelectric energy" means water used as the sole source of energy to produce
             2603      electricity.
             2604          (55) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             2605      other fuels:
             2606          (a) in mining or extraction of minerals;
             2607          (b) in agricultural operations to produce an agricultural product up to the time of
             2608      harvest or placing the agricultural product into a storage facility, including:
             2609          (i) commercial greenhouses;
             2610          (ii) irrigation pumps;
             2611          (iii) farm machinery;
             2612          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
             2613      under Title 41, Chapter 1a, Part 2, Registration; and
             2614          (v) other farming activities;
             2615          (c) in manufacturing tangible personal property at an establishment described in SIC
             2616      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2617      Executive Office of the President, Office of Management and Budget;
             2618          (d) by a scrap recycler if:
             2619          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2620      one or more of the following items into prepared grades of processed materials for use in new
             2621      products:
             2622          (A) iron;
             2623          (B) steel;
             2624          (C) nonferrous metal;
             2625          (D) paper;
             2626          (E) glass;
             2627          (F) plastic;
             2628          (G) textile; or
             2629          (H) rubber; and
             2630          (ii) the new products under Subsection (55)(d)(i) would otherwise be made with
             2631      nonrecycled materials; or


             2632          (e) in producing a form of energy or steam described in Subsection 54-2-1 [(2)](3)(a) by
             2633      a cogeneration facility as defined in Section 54-2-1 .
             2634          (56) (a) Except as provided in Subsection (56)(b), "installation charge" means a charge
             2635      for installing:
             2636          (i) tangible personal property; or
             2637          (ii) a product transferred electronically.
             2638          (b) "Installation charge" does not include a charge for:
             2639          (i) repairs or renovations of:
             2640          (A) tangible personal property; or
             2641          (B) a product transferred electronically; or
             2642          (ii) attaching tangible personal property or a product transferred electronically:
             2643          (A) to other tangible personal property; and
             2644          (B) as part of a manufacturing or fabrication process.
             2645          (57) "Institution of higher education" means an institution of higher education listed in
             2646      Section 53B-2-101 .
             2647          (58) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2648      personal property or a product transferred electronically for:
             2649          (i) (A) a fixed term; or
             2650          (B) an indeterminate term; and
             2651          (ii) consideration.
             2652          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2653      amount of consideration may be increased or decreased by reference to the amount realized
             2654      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2655      Code.
             2656          (c) "Lease" or "rental" does not include:
             2657          (i) a transfer of possession or control of property under a security agreement or
             2658      deferred payment plan that requires the transfer of title upon completion of the required
             2659      payments;
             2660          (ii) a transfer of possession or control of property under an agreement that requires the
             2661      transfer of title:
             2662          (A) upon completion of required payments; and


             2663          (B) if the payment of an option price does not exceed the greater of:
             2664          (I) $100; or
             2665          (II) 1% of the total required payments; or
             2666          (iii) providing tangible personal property along with an operator for a fixed period of
             2667      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2668      designed.
             2669          (d) For purposes of Subsection (58)(c)(iii), an operator is necessary for equipment to
             2670      perform as designed if the operator's duties exceed the:
             2671          (i) set-up of tangible personal property;
             2672          (ii) maintenance of tangible personal property; or
             2673          (iii) inspection of tangible personal property.
             2674          (59) "Life science establishment" means an establishment in this state that is classified
             2675      under the following NAICS codes of the 2007 North American Industry Classification System
             2676      of the federal Executive Office of the President, Office of Management and Budget:
             2677          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2678          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2679      Manufacturing; or
             2680          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2681          (60) "Life science research and development facility" means a facility owned, leased,
             2682      or rented by a life science establishment if research and development is performed in 51% or
             2683      more of the total area of the facility.
             2684          (61) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             2685      if the tangible storage media is not physically transferred to the purchaser.
             2686          (62) "Local taxing jurisdiction" means a:
             2687          (a) county that is authorized to impose an agreement sales and use tax;
             2688          (b) city that is authorized to impose an agreement sales and use tax; or
             2689          (c) town that is authorized to impose an agreement sales and use tax.
             2690          (63) "Manufactured home" is as defined in Section 15A-1-302 .
             2691          (64) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2692          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2693      Industrial Classification Manual of the federal Executive Office of the President, Office of


             2694      Management and Budget;
             2695          (b) a scrap recycler if:
             2696          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2697      one or more of the following items into prepared grades of processed materials for use in new
             2698      products:
             2699          (A) iron;
             2700          (B) steel;
             2701          (C) nonferrous metal;
             2702          (D) paper;
             2703          (E) glass;
             2704          (F) plastic;
             2705          (G) textile; or
             2706          (H) rubber; and
             2707          (ii) the new products under Subsection (64)(b)(i) would otherwise be made with
             2708      nonrecycled materials; or
             2709          (c) a cogeneration facility as defined in Section 54-2-1 .
             2710          (65) "Member of the immediate family of the producer" means a person who is related
             2711      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2712          (a) child or stepchild, regardless of whether the child or stepchild is:
             2713          (i) an adopted child or adopted stepchild; or
             2714          (ii) a foster child or foster stepchild;
             2715          (b) grandchild or stepgrandchild;
             2716          (c) grandparent or stepgrandparent;
             2717          (d) nephew or stepnephew;
             2718          (e) niece or stepniece;
             2719          (f) parent or stepparent;
             2720          (g) sibling or stepsibling;
             2721          (h) spouse;
             2722          (i) person who is the spouse of a person described in Subsections (65)(a) through (g);
             2723      or
             2724          (j) person similar to a person described in Subsections (65)(a) through (i) as


             2725      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2726      Administrative Rulemaking Act.
             2727          (66) "Mobile home" is as defined in Section 15A-1-302 .
             2728          (67) "Mobile telecommunications service" is as defined in the Mobile
             2729      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2730          (68) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2731      the technology used, if:
             2732          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2733          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2734          (iii) the origination point described in Subsection (68)(a)(i) and the termination point
             2735      described in Subsection (68)(a)(ii) are not fixed.
             2736          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2737      by a commercial mobile radio service provider.
             2738          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2739      commission may by rule define "commercial mobile radio service provider."
             2740          (69) (a) Except as provided in Subsection (69)(c), "mobility enhancing equipment"
             2741      means equipment that is:
             2742          (i) primarily and customarily used to provide or increase the ability to move from one
             2743      place to another;
             2744          (ii) appropriate for use in a:
             2745          (A) home; or
             2746          (B) motor vehicle; and
             2747          (iii) not generally used by persons with normal mobility.
             2748          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2749      the equipment described in Subsection (69)(a).
             2750          (c) "Mobility enhancing equipment" does not include:
             2751          (i) a motor vehicle;
             2752          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2753      vehicle manufacturer;
             2754          (iii) durable medical equipment; or
             2755          (iv) a prosthetic device.


             2756          (70) "Model 1 seller" means a seller registered under the agreement that has selected a
             2757      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2758      functions for agreement sales and use taxes other than the seller's obligation under Section
             2759      59-12-124 to remit a tax on the seller's own purchases.
             2760          (71) "Model 2 seller" means a seller registered under the agreement that:
             2761          (a) except as provided in Subsection (71)(b), has selected a certified automated system
             2762      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2763          (b) retains responsibility for remitting all of the sales tax:
             2764          (i) collected by the seller; and
             2765          (ii) to the appropriate local taxing jurisdiction.
             2766          (72) (a) Subject to Subsection (72)(b), "model 3 seller" means a seller registered under
             2767      the agreement that has:
             2768          (i) sales in at least five states that are members of the agreement;
             2769          (ii) total annual sales revenues of at least $500,000,000;
             2770          (iii) a proprietary system that calculates the amount of tax:
             2771          (A) for an agreement sales and use tax; and
             2772          (B) due to each local taxing jurisdiction; and
             2773          (iv) entered into a performance agreement with the governing board of the agreement.
             2774          (b) For purposes of Subsection (72)(a), "model 3 seller" includes an affiliated group of
             2775      sellers using the same proprietary system.
             2776          (73) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2777      model 1 seller, model 2 seller, or model 3 seller.
             2778          (74) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2779          (75) "Motor vehicle" is as defined in Section 41-1a-102 .
             2780          (76) "Oil sands" means impregnated bituminous sands that:
             2781          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2782      other hydrocarbons, or otherwise treated;
             2783          (b) yield mixtures of liquid hydrocarbon; and
             2784          (c) require further processing other than mechanical blending before becoming finished
             2785      petroleum products.
             2786          (77) "Oil shale" means a group of fine black to dark brown shales containing kerogen


             2787      material that yields petroleum upon heating and distillation.
             2788          (78) "Optional computer software maintenance contract" means a computer software
             2789      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             2790      sale of computer software.
             2791          (79) (a) "Other fuels" means products that burn independently to produce heat or
             2792      energy.
             2793          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2794      personal property.
             2795          (80) (a) "Paging service" means a telecommunications service that provides
             2796      transmission of a coded radio signal for the purpose of activating a specific pager.
             2797          (b) For purposes of Subsection (80)(a), the transmission of a coded radio signal
             2798      includes a transmission by message or sound.
             2799          (81) "Pawnbroker" is as defined in Section 13-32a-102 .
             2800          (82) "Pawn transaction" is as defined in Section 13-32a-102 .
             2801          (83) (a) "Permanently attached to real property" means that for tangible personal
             2802      property attached to real property:
             2803          (i) the attachment of the tangible personal property to the real property:
             2804          (A) is essential to the use of the tangible personal property; and
             2805          (B) suggests that the tangible personal property will remain attached to the real
             2806      property in the same place over the useful life of the tangible personal property; or
             2807          (ii) if the tangible personal property is detached from the real property, the detachment
             2808      would:
             2809          (A) cause substantial damage to the tangible personal property; or
             2810          (B) require substantial alteration or repair of the real property to which the tangible
             2811      personal property is attached.
             2812          (b) "Permanently attached to real property" includes:
             2813          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2814          (A) essential to the operation of the tangible personal property; and
             2815          (B) attached only to facilitate the operation of the tangible personal property;
             2816          (ii) a temporary detachment of tangible personal property from real property for a
             2817      repair or renovation if the repair or renovation is performed where the tangible personal


             2818      property and real property are located; or
             2819          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2820      Subsection (83)(c)(iii) or (iv).
             2821          (c) "Permanently attached to real property" does not include:
             2822          (i) the attachment of portable or movable tangible personal property to real property if
             2823      that portable or movable tangible personal property is attached to real property only for:
             2824          (A) convenience;
             2825          (B) stability; or
             2826          (C) for an obvious temporary purpose;
             2827          (ii) the detachment of tangible personal property from real property except for the
             2828      detachment described in Subsection (83)(b)(ii);
             2829          (iii) an attachment of the following tangible personal property to real property if the
             2830      attachment to real property is only through a line that supplies water, electricity, gas,
             2831      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2832      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2833          (A) a computer;
             2834          (B) a telephone;
             2835          (C) a television; or
             2836          (D) tangible personal property similar to Subsections (83)(c)(iii)(A) through (C) as
             2837      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2838      Administrative Rulemaking Act; or
             2839          (iv) an item listed in Subsection (123)(c).
             2840          (84) "Person" includes any individual, firm, partnership, joint venture, association,
             2841      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2842      municipality, district, or other local governmental entity of the state, or any group or
             2843      combination acting as a unit.
             2844          (85) "Place of primary use":
             2845          (a) for telecommunications service other than mobile telecommunications service,
             2846      means the street address representative of where the customer's use of the telecommunications
             2847      service primarily occurs, which shall be:
             2848          (i) the residential street address of the customer; or


             2849          (ii) the primary business street address of the customer; or
             2850          (b) for mobile telecommunications service, is as defined in the Mobile
             2851      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2852          (86) (a) "Postpaid calling service" means a telecommunications service a person
             2853      obtains by making a payment on a call-by-call basis:
             2854          (i) through the use of a:
             2855          (A) bank card;
             2856          (B) credit card;
             2857          (C) debit card; or
             2858          (D) travel card; or
             2859          (ii) by a charge made to a telephone number that is not associated with the origination
             2860      or termination of the telecommunications service.
             2861          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2862      service, that would be a prepaid wireless calling service if the service were exclusively a
             2863      telecommunications service.
             2864          (87) "Postproduction" means an activity related to the finishing or duplication of a
             2865      medium described in Subsection 59-12-104 (54)(a).
             2866          (88) "Prepaid calling service" means a telecommunications service:
             2867          (a) that allows a purchaser access to telecommunications service that is exclusively
             2868      telecommunications service;
             2869          (b) that:
             2870          (i) is paid for in advance; and
             2871          (ii) enables the origination of a call using an:
             2872          (A) access number; or
             2873          (B) authorization code;
             2874          (c) that is dialed:
             2875          (i) manually; or
             2876          (ii) electronically; and
             2877          (d) sold in predetermined units or dollars that decline:
             2878          (i) by a known amount; and
             2879          (ii) with use.


             2880          (89) "Prepaid wireless calling service" means a telecommunications service:
             2881          (a) that provides the right to utilize:
             2882          (i) mobile wireless service; and
             2883          (ii) other service that is not a telecommunications service, including:
             2884          (A) the download of a product transferred electronically;
             2885          (B) a content service; or
             2886          (C) an ancillary service;
             2887          (b) that:
             2888          (i) is paid for in advance; and
             2889          (ii) enables the origination of a call using an:
             2890          (A) access number; or
             2891          (B) authorization code;
             2892          (c) that is dialed:
             2893          (i) manually; or
             2894          (ii) electronically; and
             2895          (d) sold in predetermined units or dollars that decline:
             2896          (i) by a known amount; and
             2897          (ii) with use.
             2898          (90) (a) "Prepared food" means:
             2899          (i) food:
             2900          (A) sold in a heated state; or
             2901          (B) heated by a seller;
             2902          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2903      item; or
             2904          (iii) except as provided in Subsection (90)(c), food sold with an eating utensil provided
             2905      by the seller, including a:
             2906          (A) plate;
             2907          (B) knife;
             2908          (C) fork;
             2909          (D) spoon;
             2910          (E) glass;


             2911          (F) cup;
             2912          (G) napkin; or
             2913          (H) straw.
             2914          (b) "Prepared food" does not include:
             2915          (i) food that a seller only:
             2916          (A) cuts;
             2917          (B) repackages; or
             2918          (C) pasteurizes; or
             2919          (ii) (A) the following:
             2920          (I) raw egg;
             2921          (II) raw fish;
             2922          (III) raw meat;
             2923          (IV) raw poultry; or
             2924          (V) a food containing an item described in Subsections (90)(b)(ii)(A)(I) through (IV);
             2925      and
             2926          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2927      Food and Drug Administration's Food Code that a consumer cook the items described in
             2928      Subsection (90)(b)(ii)(A) to prevent food borne illness; or
             2929          (iii) the following if sold without eating utensils provided by the seller:
             2930          (A) food and food ingredients sold by a seller if the seller's proper primary
             2931      classification under the 2002 North American Industry Classification System of the federal
             2932      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2933      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2934      Manufacturing;
             2935          (B) food and food ingredients sold in an unheated state:
             2936          (I) by weight or volume; and
             2937          (II) as a single item; or
             2938          (C) a bakery item, including:
             2939          (I) a bagel;
             2940          (II) a bar;
             2941          (III) a biscuit;


             2942          (IV) bread;
             2943          (V) a bun;
             2944          (VI) a cake;
             2945          (VII) a cookie;
             2946          (VIII) a croissant;
             2947          (IX) a danish;
             2948          (X) a donut;
             2949          (XI) a muffin;
             2950          (XII) a pastry;
             2951          (XIII) a pie;
             2952          (XIV) a roll;
             2953          (XV) a tart;
             2954          (XVI) a torte; or
             2955          (XVII) a tortilla.
             2956          (c) An eating utensil provided by the seller does not include the following used to
             2957      transport the food:
             2958          (i) a container; or
             2959          (ii) packaging.
             2960          (91) "Prescription" means an order, formula, or recipe that is issued:
             2961          (a) (i) orally;
             2962          (ii) in writing;
             2963          (iii) electronically; or
             2964          (iv) by any other manner of transmission; and
             2965          (b) by a licensed practitioner authorized by the laws of a state.
             2966          (92) (a) Except as provided in Subsection (92)(b)(ii) or (iii), "prewritten computer
             2967      software" means computer software that is not designed and developed:
             2968          (i) by the author or other creator of the computer software; and
             2969          (ii) to the specifications of a specific purchaser.
             2970          (b) "Prewritten computer software" includes:
             2971          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2972      software is not designed and developed:


             2973          (A) by the author or other creator of the computer software; and
             2974          (B) to the specifications of a specific purchaser;
             2975          (ii) computer software designed and developed by the author or other creator of the
             2976      computer software to the specifications of a specific purchaser if the computer software is sold
             2977      to a person other than the purchaser; or
             2978          (iii) except as provided in Subsection (92)(c), prewritten computer software or a
             2979      prewritten portion of prewritten computer software:
             2980          (A) that is modified or enhanced to any degree; and
             2981          (B) if the modification or enhancement described in Subsection (92)(b)(iii)(A) is
             2982      designed and developed to the specifications of a specific purchaser.
             2983          (c) "Prewritten computer software" does not include a modification or enhancement
             2984      described in Subsection (92)(b)(iii) if the charges for the modification or enhancement are:
             2985          (i) reasonable; and
             2986          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2987      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2988      demonstrated by:
             2989          (A) the books and records the seller keeps at the time of the transaction in the regular
             2990      course of business, including books and records the seller keeps at the time of the transaction in
             2991      the regular course of business for nontax purposes;
             2992          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2993          (C) the understanding of all of the parties to the transaction.
             2994          (93) (a) "Private communication service" means a telecommunications service:
             2995          (i) that entitles a customer to exclusive or priority use of one or more communications
             2996      channels between or among termination points; and
             2997          (ii) regardless of the manner in which the one or more communications channels are
             2998      connected.
             2999          (b) "Private communications service" includes the following provided in connection
             3000      with the use of one or more communications channels:
             3001          (i) an extension line;
             3002          (ii) a station;
             3003          (iii) switching capacity; or


             3004          (iv) another associated service that is provided in connection with the use of one or
             3005      more communications channels as defined in Section 59-12-215 .
             3006          (94) (a) Except as provided in Subsection (94)(b), "product transferred electronically"
             3007      means a product transferred electronically that would be subject to a tax under this chapter if
             3008      that product was transferred in a manner other than electronically.
             3009          (b) "Product transferred electronically" does not include:
             3010          (i) an ancillary service;
             3011          (ii) computer software; or
             3012          (iii) a telecommunications service.
             3013          (95) (a) "Prosthetic device" means a device that is worn on or in the body to:
             3014          (i) artificially replace a missing portion of the body;
             3015          (ii) prevent or correct a physical deformity or physical malfunction; or
             3016          (iii) support a weak or deformed portion of the body.
             3017          (b) "Prosthetic device" includes:
             3018          (i) parts used in the repairs or renovation of a prosthetic device;
             3019          (ii) replacement parts for a prosthetic device;
             3020          (iii) a dental prosthesis; or
             3021          (iv) a hearing aid.
             3022          (c) "Prosthetic device" does not include:
             3023          (i) corrective eyeglasses; or
             3024          (ii) contact lenses.
             3025          (96) (a) "Protective equipment" means an item:
             3026          (i) for human wear; and
             3027          (ii) that is:
             3028          (A) designed as protection:
             3029          (I) to the wearer against injury or disease; or
             3030          (II) against damage or injury of other persons or property; and
             3031          (B) not suitable for general use.
             3032          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3033      commission shall make rules:
             3034          (i) listing the items that constitute "protective equipment"; and


             3035          (ii) that are consistent with the list of items that constitute "protective equipment"
             3036      under the agreement.
             3037          (97) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             3038      printed matter, other than a photocopy:
             3039          (i) regardless of:
             3040          (A) characteristics;
             3041          (B) copyright;
             3042          (C) form;
             3043          (D) format;
             3044          (E) method of reproduction; or
             3045          (F) source; and
             3046          (ii) made available in printed or electronic format.
             3047          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3048      commission may by rule define the term "photocopy."
             3049          (98) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             3050          (i) valued in money; and
             3051          (ii) for which tangible personal property, a product transferred electronically, or
             3052      services are:
             3053          (A) sold;
             3054          (B) leased; or
             3055          (C) rented.
             3056          (b) "Purchase price" and "sales price" include:
             3057          (i) the seller's cost of the tangible personal property, a product transferred
             3058      electronically, or services sold;
             3059          (ii) expenses of the seller, including:
             3060          (A) the cost of materials used;
             3061          (B) a labor cost;
             3062          (C) a service cost;
             3063          (D) interest;
             3064          (E) a loss;
             3065          (F) the cost of transportation to the seller; or


             3066          (G) a tax imposed on the seller;
             3067          (iii) a charge by the seller for any service necessary to complete the sale; or
             3068          (iv) consideration a seller receives from a person other than the purchaser if:
             3069          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             3070      and
             3071          (II) the consideration described in Subsection (98)(b)(iv)(A)(I) is directly related to a
             3072      price reduction or discount on the sale;
             3073          (B) the seller has an obligation to pass the price reduction or discount through to the
             3074      purchaser;
             3075          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             3076      the seller at the time of the sale to the purchaser; and
             3077          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             3078      seller to claim a price reduction or discount; and
             3079          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             3080      coupon, or other documentation with the understanding that the person other than the seller
             3081      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             3082          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             3083      organization allowed a price reduction or discount, except that a preferred customer card that is
             3084      available to any patron of a seller does not constitute membership in a group or organization
             3085      allowed a price reduction or discount; or
             3086          (III) the price reduction or discount is identified as a third party price reduction or
             3087      discount on the:
             3088          (Aa) invoice the purchaser receives; or
             3089          (Bb) certificate, coupon, or other documentation the purchaser presents.
             3090          (c) "Purchase price" and "sales price" do not include:
             3091          (i) a discount:
             3092          (A) in a form including:
             3093          (I) cash;
             3094          (II) term; or
             3095          (III) coupon;
             3096          (B) that is allowed by a seller;


             3097          (C) taken by a purchaser on a sale; and
             3098          (D) that is not reimbursed by a third party; or
             3099          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             3100      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             3101      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             3102      transaction in the regular course of business, including books and records the seller keeps at the
             3103      time of the transaction in the regular course of business for nontax purposes, by a
             3104      preponderance of the facts and circumstances at the time of the transaction, and by the
             3105      understanding of all of the parties to the transaction:
             3106          (A) the following from credit extended on the sale of tangible personal property or
             3107      services:
             3108          (I) a carrying charge;
             3109          (II) a financing charge; or
             3110          (III) an interest charge;
             3111          (B) a delivery charge;
             3112          (C) an installation charge;
             3113          (D) a manufacturer rebate on a motor vehicle; or
             3114          (E) a tax or fee legally imposed directly on the consumer.
             3115          (99) "Purchaser" means a person to whom:
             3116          (a) a sale of tangible personal property is made;
             3117          (b) a product is transferred electronically; or
             3118          (c) a service is furnished.
             3119          (100) "Regularly rented" means:
             3120          (a) rented to a guest for value three or more times during a calendar year; or
             3121          (b) advertised or held out to the public as a place that is regularly rented to guests for
             3122      value.
             3123          (101) "Rental" is as defined in Subsection (58).
             3124          (102) (a) Except as provided in Subsection (102)(b), "repairs or renovations of tangible
             3125      personal property" means:
             3126          (i) a repair or renovation of tangible personal property that is not permanently attached
             3127      to real property; or


             3128          (ii) attaching tangible personal property or a product transferred electronically to other
             3129      tangible personal property or detaching tangible personal property or a product transferred
             3130      electronically from other tangible personal property if:
             3131          (A) the other tangible personal property to which the tangible personal property or
             3132      product transferred electronically is attached or from which the tangible personal property or
             3133      product transferred electronically is detached is not permanently attached to real property; and
             3134          (B) the attachment of tangible personal property or a product transferred electronically
             3135      to other tangible personal property or detachment of tangible personal property or a product
             3136      transferred electronically from other tangible personal property is made in conjunction with a
             3137      repair or replacement of tangible personal property or a product transferred electronically.
             3138          (b) "Repairs or renovations of tangible personal property" does not include:
             3139          (i) attaching prewritten computer software to other tangible personal property if the
             3140      other tangible personal property to which the prewritten computer software is attached is not
             3141      permanently attached to real property; or
             3142          (ii) detaching prewritten computer software from other tangible personal property if the
             3143      other tangible personal property from which the prewritten computer software is detached is
             3144      not permanently attached to real property.
             3145          (103) "Research and development" means the process of inquiry or experimentation
             3146      aimed at the discovery of facts, devices, technologies, or applications and the process of
             3147      preparing those devices, technologies, or applications for marketing.
             3148          (104) (a) "Residential telecommunications services" means a telecommunications
             3149      service or an ancillary service that is provided to an individual for personal use:
             3150          (i) at a residential address; or
             3151          (ii) at an institution, including a nursing home or a school, if the telecommunications
             3152      service or ancillary service is provided to and paid for by the individual residing at the
             3153      institution rather than the institution.
             3154          (b) For purposes of Subsection (104)(a)(i), a residential address includes an:
             3155          (i) apartment; or
             3156          (ii) other individual dwelling unit.
             3157          (105) "Residential use" means the use in or around a home, apartment building,
             3158      sleeping quarters, and similar facilities or accommodations.


             3159          (106) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             3160      than:
             3161          (a) resale;
             3162          (b) sublease; or
             3163          (c) subrent.
             3164          (107) (a) "Retailer" means any person engaged in a regularly organized business in
             3165      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             3166      who is selling to the user or consumer and not for resale.
             3167          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             3168      engaged in the business of selling to users or consumers within the state.
             3169          (108) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             3170      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             3171      Subsection 59-12-103 (1), for consideration.
             3172          (b) "Sale" includes:
             3173          (i) installment and credit sales;
             3174          (ii) any closed transaction constituting a sale;
             3175          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             3176      chapter;
             3177          (iv) any transaction if the possession of property is transferred but the seller retains the
             3178      title as security for the payment of the price; and
             3179          (v) any transaction under which right to possession, operation, or use of any article of
             3180      tangible personal property is granted under a lease or contract and the transfer of possession
             3181      would be taxable if an outright sale were made.
             3182          (109) "Sale at retail" is as defined in Subsection (106).
             3183          (110) "Sale-leaseback transaction" means a transaction by which title to tangible
             3184      personal property or a product transferred electronically that is subject to a tax under this
             3185      chapter is transferred:
             3186          (a) by a purchaser-lessee;
             3187          (b) to a lessor;
             3188          (c) for consideration; and
             3189          (d) if:


             3190          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             3191      of the tangible personal property or product transferred electronically;
             3192          (ii) the sale of the tangible personal property or product transferred electronically to the
             3193      lessor is intended as a form of financing:
             3194          (A) for the tangible personal property or product transferred electronically; and
             3195          (B) to the purchaser-lessee; and
             3196          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             3197      is required to:
             3198          (A) capitalize the tangible personal property or product transferred electronically for
             3199      financial reporting purposes; and
             3200          (B) account for the lease payments as payments made under a financing arrangement.
             3201          (111) "Sales price" is as defined in Subsection (98).
             3202          (112) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             3203      amounts charged by a school:
             3204          (i) sales that are directly related to the school's educational functions or activities
             3205      including:
             3206          (A) the sale of:
             3207          (I) textbooks;
             3208          (II) textbook fees;
             3209          (III) laboratory fees;
             3210          (IV) laboratory supplies; or
             3211          (V) safety equipment;
             3212          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             3213      that:
             3214          (I) a student is specifically required to wear as a condition of participation in a
             3215      school-related event or school-related activity; and
             3216          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             3217      place of ordinary clothing;
             3218          (C) sales of the following if the net or gross revenues generated by the sales are
             3219      deposited into a school district fund or school fund dedicated to school meals:
             3220          (I) food and food ingredients; or


             3221          (II) prepared food; or
             3222          (D) transportation charges for official school activities; or
             3223          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             3224      event or school-related activity.
             3225          (b) "Sales relating to schools" does not include:
             3226          (i) bookstore sales of items that are not educational materials or supplies;
             3227          (ii) except as provided in Subsection (112)(a)(i)(B):
             3228          (A) clothing;
             3229          (B) clothing accessories or equipment;
             3230          (C) protective equipment; or
             3231          (D) sports or recreational equipment; or
             3232          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             3233      event or school-related activity if the amounts paid or charged are passed through to a person:
             3234          (A) other than a:
             3235          (I) school;
             3236          (II) nonprofit organization authorized by a school board or a governing body of a
             3237      private school to organize and direct a competitive secondary school activity; or
             3238          (III) nonprofit association authorized by a school board or a governing body of a
             3239      private school to organize and direct a competitive secondary school activity; and
             3240          (B) that is required to collect sales and use taxes under this chapter.
             3241          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3242      commission may make rules defining the term "passed through."
             3243          (113) For purposes of this section and Section 59-12-104 , "school":
             3244          (a) means:
             3245          (i) an elementary school or a secondary school that:
             3246          (A) is a:
             3247          (I) public school; or
             3248          (II) private school; and
             3249          (B) provides instruction for one or more grades kindergarten through 12; or
             3250          (ii) a public school district; and
             3251          (b) includes the Electronic High School as defined in Section 53A-15-1002 .


             3252          (114) "Seller" means a person that makes a sale, lease, or rental of:
             3253          (a) tangible personal property;
             3254          (b) a product transferred electronically; or
             3255          (c) a service.
             3256          (115) (a) "Semiconductor fabricating, processing, research, or development materials"
             3257      means tangible personal property or a product transferred electronically if the tangible personal
             3258      property or product transferred electronically is:
             3259          (i) used primarily in the process of:
             3260          (A) (I) manufacturing a semiconductor;
             3261          (II) fabricating a semiconductor; or
             3262          (III) research or development of a:
             3263          (Aa) semiconductor; or
             3264          (Bb) semiconductor manufacturing process; or
             3265          (B) maintaining an environment suitable for a semiconductor; or
             3266          (ii) consumed primarily in the process of:
             3267          (A) (I) manufacturing a semiconductor;
             3268          (II) fabricating a semiconductor; or
             3269          (III) research or development of a:
             3270          (Aa) semiconductor; or
             3271          (Bb) semiconductor manufacturing process; or
             3272          (B) maintaining an environment suitable for a semiconductor.
             3273          (b) "Semiconductor fabricating, processing, research, or development materials"
             3274      includes:
             3275          (i) parts used in the repairs or renovations of tangible personal property or a product
             3276      transferred electronically described in Subsection (115)(a); or
             3277          (ii) a chemical, catalyst, or other material used to:
             3278          (A) produce or induce in a semiconductor a:
             3279          (I) chemical change; or
             3280          (II) physical change;
             3281          (B) remove impurities from a semiconductor; or
             3282          (C) improve the marketable condition of a semiconductor.


             3283          (116) "Senior citizen center" means a facility having the primary purpose of providing
             3284      services to the aged as defined in Section 62A-3-101 .
             3285          (117) (a) Subject to Subsections (117)(b) and (c), "short-term lodging consumable"
             3286      means tangible personal property that:
             3287          (i) a business that provides accommodations and services described in Subsection
             3288      59-12-103 (1)(i) purchases as part of a transaction to provide the accommodations and services
             3289      to a purchaser;
             3290          (ii) is intended to be consumed by the purchaser; and
             3291          (iii) is:
             3292          (A) included in the purchase price of the accommodations and services; and
             3293          (B) not separately stated on an invoice, bill of sale, or other similar document provided
             3294      to the purchaser.
             3295          (b) "Short-term lodging consumable" includes:
             3296          (i) a beverage;
             3297          (ii) a brush or comb;
             3298          (iii) a cosmetic;
             3299          (iv) a hair care product;
             3300          (v) lotion;
             3301          (vi) a magazine;
             3302          (vii) makeup;
             3303          (viii) a meal;
             3304          (ix) mouthwash;
             3305          (x) nail polish remover;
             3306          (xi) a newspaper;
             3307          (xii) a notepad;
             3308          (xiii) a pen;
             3309          (xiv) a pencil;
             3310          (xv) a razor;
             3311          (xvi) saline solution;
             3312          (xvii) a sewing kit;
             3313          (xviii) shaving cream;


             3314          (xix) a shoe shine kit;
             3315          (xx) a shower cap;
             3316          (xxi) a snack item;
             3317          (xxii) soap;
             3318          (xxiii) toilet paper;
             3319          (xxiv) a toothbrush;
             3320          (xxv) toothpaste; or
             3321          (xxvi) an item similar to Subsections (117)(b)(i) through (xxv) as the commission may
             3322      provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             3323      Rulemaking Act.
             3324          (c) "Short-term lodging consumable" does not include:
             3325          (i) tangible personal property that is cleaned or washed to allow the tangible personal
             3326      property to be reused; or
             3327          (ii) a product transferred electronically.
             3328          (118) "Simplified electronic return" means the electronic return:
             3329          (a) described in Section 318(C) of the agreement; and
             3330          (b) approved by the governing board of the agreement.
             3331          (119) "Solar energy" means the sun used as the sole source of energy for producing
             3332      electricity.
             3333          (120) (a) "Sports or recreational equipment" means an item:
             3334          (i) designed for human use; and
             3335          (ii) that is:
             3336          (A) worn in conjunction with:
             3337          (I) an athletic activity; or
             3338          (II) a recreational activity; and
             3339          (B) not suitable for general use.
             3340          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3341      commission shall make rules:
             3342          (i) listing the items that constitute "sports or recreational equipment"; and
             3343          (ii) that are consistent with the list of items that constitute "sports or recreational
             3344      equipment" under the agreement.


             3345          (121) "State" means the state of Utah, its departments, and agencies.
             3346          (122) "Storage" means any keeping or retention of tangible personal property or any
             3347      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             3348      sale in the regular course of business.
             3349          (123) (a) Except as provided in Subsection (123)(d) or (e), "tangible personal property"
             3350      means personal property that:
             3351          (i) may be:
             3352          (A) seen;
             3353          (B) weighed;
             3354          (C) measured;
             3355          (D) felt; or
             3356          (E) touched; or
             3357          (ii) is in any manner perceptible to the senses.
             3358          (b) "Tangible personal property" includes:
             3359          (i) electricity;
             3360          (ii) water;
             3361          (iii) gas;
             3362          (iv) steam; or
             3363          (v) prewritten computer software, regardless of the manner in which the prewritten
             3364      computer software is transferred.
             3365          (c) "Tangible personal property" includes the following regardless of whether the item
             3366      is attached to real property:
             3367          (i) a dishwasher;
             3368          (ii) a dryer;
             3369          (iii) a freezer;
             3370          (iv) a microwave;
             3371          (v) a refrigerator;
             3372          (vi) a stove;
             3373          (vii) a washer; or
             3374          (viii) an item similar to Subsections (123)(c)(i) through (vii) as determined by the
             3375      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative


             3376      Rulemaking Act.
             3377          (d) "Tangible personal property" does not include a product that is transferred
             3378      electronically.
             3379          (e) "Tangible personal property" does not include the following if attached to real
             3380      property, regardless of whether the attachment to real property is only through a line that
             3381      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             3382      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             3383      Rulemaking Act:
             3384          (i) a hot water heater;
             3385          (ii) a water filtration system; or
             3386          (iii) a water softener system.
             3387          (124) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             3388      software" means an item listed in Subsection (124)(b) if that item is purchased or leased
             3389      primarily to enable or facilitate one or more of the following to function:
             3390          (i) telecommunications switching or routing equipment, machinery, or software; or
             3391          (ii) telecommunications transmission equipment, machinery, or software.
             3392          (b) The following apply to Subsection (124)(a):
             3393          (i) a pole;
             3394          (ii) software;
             3395          (iii) a supplementary power supply;
             3396          (iv) temperature or environmental equipment or machinery;
             3397          (v) test equipment;
             3398          (vi) a tower; or
             3399          (vii) equipment, machinery, or software that functions similarly to an item listed in
             3400      Subsections (124)(b)(i) through (vi) as determined by the commission by rule made in
             3401      accordance with Subsection (124)(c).
             3402          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3403      commission may by rule define what constitutes equipment, machinery, or software that
             3404      functions similarly to an item listed in Subsections (124)(b)(i) through (vi).
             3405          (125) "Telecommunications equipment, machinery, or software required for 911
             3406      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.


             3407      Sec. 20.18.
             3408          (126) "Telecommunications maintenance or repair equipment, machinery, or software"
             3409      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             3410      one or more of the following, regardless of whether the equipment, machinery, or software is
             3411      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             3412      following:
             3413          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             3414          (b) telecommunications switching or routing equipment, machinery, or software; or
             3415          (c) telecommunications transmission equipment, machinery, or software.
             3416          (127) (a) "Telecommunications service" means the electronic conveyance, routing, or
             3417      transmission of audio, data, video, voice, or any other information or signal to a point, or
             3418      among or between points.
             3419          (b) "Telecommunications service" includes:
             3420          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             3421      processing application is used to act:
             3422          (A) on the code, form, or protocol of the content;
             3423          (B) for the purpose of electronic conveyance, routing, or transmission; and
             3424          (C) regardless of whether the service:
             3425          (I) is referred to as voice over Internet protocol service; or
             3426          (II) is classified by the Federal Communications Commission as enhanced or value
             3427      added;
             3428          (ii) an 800 service;
             3429          (iii) a 900 service;
             3430          (iv) a fixed wireless service;
             3431          (v) a mobile wireless service;
             3432          (vi) a postpaid calling service;
             3433          (vii) a prepaid calling service;
             3434          (viii) a prepaid wireless calling service; or
             3435          (ix) a private communications service.
             3436          (c) "Telecommunications service" does not include:
             3437          (i) advertising, including directory advertising;


             3438          (ii) an ancillary service;
             3439          (iii) a billing and collection service provided to a third party;
             3440          (iv) a data processing and information service if:
             3441          (A) the data processing and information service allows data to be:
             3442          (I) (Aa) acquired;
             3443          (Bb) generated;
             3444          (Cc) processed;
             3445          (Dd) retrieved; or
             3446          (Ee) stored; and
             3447          (II) delivered by an electronic transmission to a purchaser; and
             3448          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             3449      or information;
             3450          (v) installation or maintenance of the following on a customer's premises:
             3451          (A) equipment; or
             3452          (B) wiring;
             3453          (vi) Internet access service;
             3454          (vii) a paging service;
             3455          (viii) a product transferred electronically, including:
             3456          (A) music;
             3457          (B) reading material;
             3458          (C) a ring tone;
             3459          (D) software; or
             3460          (E) video;
             3461          (ix) a radio and television audio and video programming service:
             3462          (A) regardless of the medium; and
             3463          (B) including:
             3464          (I) furnishing conveyance, routing, or transmission of a television audio and video
             3465      programming service by a programming service provider;
             3466          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             3467          (III) audio and video programming services delivered by a commercial mobile radio
             3468      service provider as defined in 47 C.F.R. Sec. 20.3;


             3469          (x) a value-added nonvoice data service; or
             3470          (xi) tangible personal property.
             3471          (128) (a) "Telecommunications service provider" means a person that:
             3472          (i) owns, controls, operates, or manages a telecommunications service; and
             3473          (ii) engages in an activity described in Subsection (128)(a)(i) for the shared use with or
             3474      resale to any person of the telecommunications service.
             3475          (b) A person described in Subsection (128)(a) is a telecommunications service provider
             3476      whether or not the Public Service Commission of Utah regulates:
             3477          (i) that person; or
             3478          (ii) the telecommunications service that the person owns, controls, operates, or
             3479      manages.
             3480          (129) (a) "Telecommunications switching or routing equipment, machinery, or
             3481      software" means an item listed in Subsection (129)(b) if that item is purchased or leased
             3482      primarily for switching or routing:
             3483          (i) an ancillary service;
             3484          (ii) data communications;
             3485          (iii) voice communications; or
             3486          (iv) telecommunications service.
             3487          (b) The following apply to Subsection (129)(a):
             3488          (i) a bridge;
             3489          (ii) a computer;
             3490          (iii) a cross connect;
             3491          (iv) a modem;
             3492          (v) a multiplexer;
             3493          (vi) plug in circuitry;
             3494          (vii) a router;
             3495          (viii) software;
             3496          (ix) a switch; or
             3497          (x) equipment, machinery, or software that functions similarly to an item listed in
             3498      Subsections (129)(b)(i) through (ix) as determined by the commission by rule made in
             3499      accordance with Subsection (129)(c).


             3500          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3501      commission may by rule define what constitutes equipment, machinery, or software that
             3502      functions similarly to an item listed in Subsections (129)(b)(i) through (ix).
             3503          (130) (a) "Telecommunications transmission equipment, machinery, or software"
             3504      means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for
             3505      sending, receiving, or transporting:
             3506          (i) an ancillary service;
             3507          (ii) data communications;
             3508          (iii) voice communications; or
             3509          (iv) telecommunications service.
             3510          (b) The following apply to Subsection (130)(a):
             3511          (i) an amplifier;
             3512          (ii) a cable;
             3513          (iii) a closure;
             3514          (iv) a conduit;
             3515          (v) a controller;
             3516          (vi) a duplexer;
             3517          (vii) a filter;
             3518          (viii) an input device;
             3519          (ix) an input/output device;
             3520          (x) an insulator;
             3521          (xi) microwave machinery or equipment;
             3522          (xii) an oscillator;
             3523          (xiii) an output device;
             3524          (xiv) a pedestal;
             3525          (xv) a power converter;
             3526          (xvi) a power supply;
             3527          (xvii) a radio channel;
             3528          (xviii) a radio receiver;
             3529          (xix) a radio transmitter;
             3530          (xx) a repeater;


             3531          (xxi) software;
             3532          (xxii) a terminal;
             3533          (xxiii) a timing unit;
             3534          (xxiv) a transformer;
             3535          (xxv) a wire; or
             3536          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             3537      Subsections (130)(b)(i) through (xxv) as determined by the commission by rule made in
             3538      accordance with Subsection (130)(c).
             3539          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3540      commission may by rule define what constitutes equipment, machinery, or software that
             3541      functions similarly to an item listed in Subsections (130)(b)(i) through (xxv).
             3542          (131) (a) "Textbook for a higher education course" means a textbook or other printed
             3543      material that is required for a course:
             3544          (i) offered by an institution of higher education; and
             3545          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             3546          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             3547          (132) "Tobacco" means:
             3548          (a) a cigarette;
             3549          (b) a cigar;
             3550          (c) chewing tobacco;
             3551          (d) pipe tobacco; or
             3552          (e) any other item that contains tobacco.
             3553          (133) "Unassisted amusement device" means an amusement device, skill device, or
             3554      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             3555      the amusement device, skill device, or ride device.
             3556          (134) (a) "Use" means the exercise of any right or power over tangible personal
             3557      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             3558      incident to the ownership or the leasing of that tangible personal property, product transferred
             3559      electronically, or service.
             3560          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             3561      property, a product transferred electronically, or a service in the regular course of business and


             3562      held for resale.
             3563          (135) "Value-added nonvoice data service" means a service:
             3564          (a) that otherwise meets the definition of a telecommunications service except that a
             3565      computer processing application is used to act primarily for a purpose other than conveyance,
             3566      routing, or transmission; and
             3567          (b) with respect to which a computer processing application is used to act on data or
             3568      information:
             3569          (i) code;
             3570          (ii) content;
             3571          (iii) form; or
             3572          (iv) protocol.
             3573          (136) (a) Subject to Subsection (136)(b), "vehicle" means the following that are
             3574      required to be titled, registered, or titled and registered:
             3575          (i) an aircraft as defined in Section 72-10-102 ;
             3576          (ii) a vehicle as defined in Section 41-1a-102 ;
             3577          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             3578          (iv) a vessel as defined in Section 41-1a-102 .
             3579          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             3580          (i) a vehicle described in Subsection (136)(a); or
             3581          (ii) (A) a locomotive;
             3582          (B) a freight car;
             3583          (C) railroad work equipment; or
             3584          (D) other railroad rolling stock.
             3585          (137) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             3586      exchanging a vehicle as defined in Subsection (136).
             3587          (138) (a) "Vertical service" means an ancillary service that:
             3588          (i) is offered in connection with one or more telecommunications services; and
             3589          (ii) offers an advanced calling feature that allows a customer to:
             3590          (A) identify a caller; and
             3591          (B) manage multiple calls and call connections.
             3592          (b) "Vertical service" includes an ancillary service that allows a customer to manage a


             3593      conference bridging service.
             3594          (139) (a) "Voice mail service" means an ancillary service that enables a customer to
             3595      receive, send, or store a recorded message.
             3596          (b) "Voice mail service" does not include a vertical service that a customer is required
             3597      to have in order to utilize a voice mail service.
             3598          (140) (a) Except as provided in Subsection (140)(b), "waste energy facility" means a
             3599      facility that generates electricity:
             3600          (i) using as the primary source of energy waste materials that would be placed in a
             3601      landfill or refuse pit if it were not used to generate electricity, including:
             3602          (A) tires;
             3603          (B) waste coal;
             3604          (C) oil shale; or
             3605          (D) municipal solid waste; and
             3606          (ii) in amounts greater than actually required for the operation of the facility.
             3607          (b) "Waste energy facility" does not include a facility that incinerates:
             3608          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             3609          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             3610          (141) "Watercraft" means a vessel as defined in Section 73-18-2 .
             3611          (142) "Wind energy" means wind used as the sole source of energy to produce
             3612      electricity.
             3613          (143) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             3614      location by the United States Postal Service.
             3615          Section 9. Effective dates.
             3616          (1) Except as provided in Subsection (2), this bill takes effect on May 13, 2014.
             3617          (2) The actions affecting Section 59-12-102 (Effective 07/01/14) take effect on July 1,
             3618      2014.




Legislative Review Note
    as of 1-20-14 2:57 PM


Office of Legislative Research and General Counsel


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