Part 1
Tax Collection

59-12-101 Short title.
          This chapter is known as the “Sales and Use Tax Act.”

Renumbered and Amended by Chapter 5, 1987 General Session

59-12-102 Definitions.
          As used in this chapter:
(1)”800 service” means a telecommunications service that:
(a)allows a caller to dial a toll-free number without incurring a charge for the call; and
(b)is typically marketed:
(i)under the name 800 toll-free calling;
(ii)under the name 855 toll-free calling;
(iii)under the name 866 toll-free calling;
(iv)under the name 877 toll-free calling;
(v)under the name 888 toll-free calling; or
(vi)under a name similar to Subsections (1)(b)(i) through (v) as designated by the Federal Communications Commission.
(2)
(a)”900 service” means an inbound toll telecommunications service that:
(i)a subscriber purchases;
(ii)allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to the subscriber’s:
(A)prerecorded announcement; or
(B)live service; and
(iii)is typically marketed:
(A)under the name 900 service; or
(B)under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal Communications Commission.
(b)”900 service” does not include a charge for:
(i)a collection service a seller of a telecommunications service provides to a subscriber; or
(ii)the following a subscriber sells to the subscriber’s customer:
(A)a product; or
(B)a service.
(3)
(a)”Admission or user fees” includes season passes.
(b)”Admission or user fees” does not include:
(i)annual membership dues to private organizations; or
(ii)a lesson, including a lesson that involves as part of the lesson equipment or a facility listed in Subsection 59-12-103(1)(f).
(4)”Affiliate” or “affiliated person” means a person that, with respect to another person:
(a)has an ownership interest of more than 5%, whether direct or indirect, in that other person; or
(b)is related to the other person because a third person, or a group of third persons who are affiliated persons with respect to each other, holds an ownership interest of more than 5%, whether direct or indirect, in the related persons.
(5)”Agreement” means the Streamlined Sales and Use Tax Agreement adopted on November 12, 2002, including amendments made to the Streamlined Sales and Use Tax Agreement after November 12, 2002.
(6)”Agreement combined tax rate” means the sum of the tax rates:
(a)listed under Subsection (7); and
(b)that are imposed within a local taxing jurisdiction.
(7)”Agreement sales and use tax” means a tax imposed under:
(a)Subsection 59-12-103(2)(a)(i)(A);
(b)Subsection 59-12-103(2)(b)(i);
(c)Subsection 59-12-103(2)(c)(i);
(d)Subsection 59-12-103(2)(d);
(e)Subsection 59-12-103(2)(e)(i)(A)(I);
(f)Section 59-12-204;
(g)Section 59-12-401;
(h)Section 59-12-402;
(i)Section 59-12-402.1;
(j)Section 59-12-703;
(k)Section 59-12-802;
(l)Section 59-12-804;
(m)Section 59-12-1102;
(n)Section 59-12-1302;
(o)Section 59-12-1402;
(p)Section 59-12-1802;
(q)Section 59-12-2003;
(r)Section 59-12-2103;
(s)Section 59-12-2213;
(t)Section 59-12-2214;
(u)Section 59-12-2215;
(v)Section 59-12-2216;
(w)Section 59-12-2217;
(x)Section 59-12-2218;
(y)Section 59-12-2219; or
(z)Section 59-12-2220.
(8)”Aircraft” means the same as that term is defined in Section 72-10-102.
(9)”Aircraft maintenance, repair, and overhaul provider” means a business entity:
(a)except for:
(i)an airline as defined in Section 59-2-102; or
(ii)an affiliated group, as defined in Section 59-7-101, except that “affiliated group” includes a corporation that is qualified to do business but is not otherwise doing business in the state, of an airline; and
(b)that has the workers, expertise, and facilities to perform the following, regardless of whether the business entity performs the following in this state:
(i)check, diagnose, overhaul, and repair:
(A)an onboard system of a fixed wing turbine powered aircraft; and
(B)the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
(ii)assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft engine;
(iii)perform at least the following maintenance on a fixed wing turbine powered aircraft:
(A)an inspection;
(B)a repair, including a structural repair or modification;
(C)changing landing gear; and
(D)addressing issues related to an aging fixed wing turbine powered aircraft;
(iv)completely remove the existing paint of a fixed wing turbine powered aircraft and completely apply new paint to the fixed wing turbine powered aircraft; and
(v)refurbish the interior of a fixed wing turbine powered aircraft in a manner that results in a change in the fixed wing turbine powered aircraft’s certification requirements by the authority that certifies the fixed wing turbine powered aircraft.
(10)”Alcoholic beverage” means a beverage that:
(a)is suitable for human consumption; and
(b)contains .5% or more alcohol by volume.
(11)”Alternative energy” means:
(a)biomass energy;
(b)geothermal energy;
(c)hydroelectric energy;
(d)solar energy;
(e)wind energy; or
(f)energy that is derived from:
(i)coal-to-liquids;
(ii)nuclear fuel;
(iii)oil-impregnated diatomaceous earth;
(iv)oil sands;
(v)oil shale;
(vi)petroleum coke; or
(vii)waste heat from:
(A)an industrial facility; or
(B)a power station in which an electric generator is driven through a process in which water is heated, turns into steam, and spins a steam turbine.
(12)
(a)Subject to Subsection (12)(b), “alternative energy electricity production facility” means a facility that:
(i)uses alternative energy to produce electricity; and
(ii)has a production capacity of two megawatts or greater.
(b)A facility is an alternative energy electricity production facility regardless of whether the facility is:
(i)connected to an electric grid; or
(ii)located on the premises of an electricity consumer.
(13)
(a)”Ancillary service” means a service associated with, or incidental to, the provision of telecommunications service.
(b)”Ancillary service” includes:
(i)a conference bridging service;
(ii)a detailed communications billing service;
(iii)directory assistance;
(iv)a vertical service; or
(v)a voice mail service.
(14)”Area agency on aging” means the same as that term is defined in Section 26B-6-101.
(15)”Assisted amusement device” means an amusement device, skill device, or ride device that is started and stopped by an individual:
(a)who is not the purchaser or renter of the right to use or operate the amusement device, skill device, or ride device; and
(b)at the direction of the seller of the right to use the amusement device, skill device, or ride device.
(16)”Assisted cleaning or washing of tangible personal property” means cleaning or washing of tangible personal property if the cleaning or washing labor is primarily performed by an individual:
(a)who is not the purchaser of the cleaning or washing of the tangible personal property; and
(b)at the direction of the seller of the cleaning or washing of the tangible personal property.
(17)”Authorized carrier” means:
(a)in the case of vehicles operated over public highways, the holder of credentials indicating that the vehicle is or will be operated pursuant to both the International Registration Plan and the International Fuel Tax Agreement;
(b)in the case of aircraft, the holder of a Federal Aviation Administration operating certificate or air carrier’s operating certificate; or
(c)in the case of locomotives, freight cars, railroad work equipment, or other rolling stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling stock in more than one state.
(18)
(a)”Biomass energy” means any of the following that is used as the primary source of energy to produce fuel or electricity:
(i)material from a plant or tree; or
(ii)other organic matter that is available on a renewable basis, including:
(A)slash and brush from forests and woodlands;
(B)animal waste;
(C)waste vegetable oil;
(D)methane or synthetic gas produced at a landfill, as a byproduct of the treatment of wastewater residuals, or through the conversion of a waste material through a nonincineration, thermal conversion process;
(E)aquatic plants; and
(F)agricultural products.
(b)”Biomass energy” does not include:
(i)black liquor; or
(ii)treated woods.
(19)
(a)”Bundled transaction” means the sale of two or more items of tangible personal property, products, or services if the tangible personal property, products, or services are:
(i)distinct and identifiable; and
(ii)sold for one nonitemized price.
(b)”Bundled transaction” does not include:
(i)the sale of tangible personal property if the sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of tangible personal property included in the transaction;
(ii)the sale of real property;
(iii)the sale of services to real property;
(iv)the retail sale of tangible personal property and a service if:
(A)the tangible personal property:
(I)is essential to the use of the service; and
(II)is provided exclusively in connection with the service; and
(B)the service is the true object of the transaction;
(v)the retail sale of two services if:
(A)one service is provided that is essential to the use or receipt of a second service;
(B)the first service is provided exclusively in connection with the second service; and
(C)the second service is the true object of the transaction;
(vi)a transaction that includes tangible personal property or a product subject to taxation under this chapter and tangible personal property or a product that is not subject to taxation under this chapter if the:
(A)seller’s purchase price of the tangible personal property or product subject to taxation under this chapter is de minimis; or
(B)seller’s sales price of the tangible personal property or product subject to taxation under this chapter is de minimis; and
(vii)the retail sale of tangible personal property that is not subject to taxation under this chapter and tangible personal property that is subject to taxation under this chapter if:
(A)that retail sale includes:
(I)food and food ingredients;
(II)a drug;
(III)durable medical equipment;
(IV)mobility enhancing equipment;
(V)an over-the-counter drug;
(VI)a prosthetic device; or
(VII)a medical supply; and
(B)subject to Subsection (19)(f):
(I)the seller’s purchase price of the tangible personal property subject to taxation under this chapter is 50% or less of the seller’s total purchase price of that retail sale; or
(II)the seller’s sales price of the tangible personal property subject to taxation under this chapter is 50% or less of the seller’s total sales price of that retail sale.
(c)
(i)For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a service that is distinct and identifiable does not include:
(A)packaging that:
(I)accompanies the sale of the tangible personal property, product, or service; and
(II)is incidental or immaterial to the sale of the tangible personal property, product, or service;
(B)tangible personal property, a product, or a service provided free of charge with the purchase of another item of tangible personal property, a product, or a service; or
(C)an item of tangible personal property, a product, or a service included in the definition of “purchase price.”
(ii)For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a product, or a service is provided free of charge with the purchase of another item of tangible personal property, a product, or a service if the sales price of the purchased item of tangible personal property, product, or service does not vary depending on the inclusion of the tangible personal property, product, or service provided free of charge.
(d)
(i)For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price does not include a price that is separately identified by tangible personal property, product, or service on the following, regardless of whether the following is in paper format or electronic format:
(A)a binding sales document; or
(B)another supporting sales-related document that is available to a purchaser.
(ii)For purposes of Subsection (19)(d)(i), a binding sales document or another supporting sales-related document that is available to a purchaser includes:
(A)a bill of sale;
(B)a contract;
(C)an invoice;
(D)a lease agreement;
(E)a periodic notice of rates and services;
(F)a price list;
(G)a rate card;
(H)a receipt; or
(I)a service agreement.
(e)
(i)For purposes of Subsection (19)(b)(vi), the sales price of tangible personal property or a product subject to taxation under this chapter is de minimis if:
(A)the seller’s purchase price of the tangible personal property or product is 10% or less of the seller’s total purchase price of the bundled transaction; or
(B)the seller’s sales price of the tangible personal property or product is 10% or less of the seller’s total sales price of the bundled transaction.
(ii)For purposes of Subsection (19)(b)(vi), a seller:
(A)shall use the seller’s purchase price or the seller’s sales price to determine if the purchase price or sales price of the tangible personal property or product subject to taxation under this chapter is de minimis; and
(B)may not use a combination of the seller’s purchase price and the seller’s sales price to determine if the purchase price or sales price of the tangible personal property or product subject to taxation under this chapter is de minimis.
(iii)For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service contract to determine if the sales price of tangible personal property or a product is de minimis.
(f)For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of the seller’s purchase price and the seller’s sales price to determine if tangible personal property subject to taxation under this chapter is 50% or less of the seller’s total purchase price or sales price of that retail sale.
(20)”Car sharing” means the same as that term is defined in Section 13-48a-101.
(21)”Car-sharing program” means the same as that term is defined in Section 13-48a-101.
(22)”Certified automated system” means software certified by the governing board of the agreement that:
(a)calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
(i)on a transaction; and
(ii)in the states that are members of the agreement;
(b)determines the amount of agreement sales and use tax to remit to a state that is a member of the agreement; and
(c)maintains a record of the transaction described in Subsection (22)(a)(i).
(23)”Certified service provider” means an agent certified:
(a)by the governing board of the agreement; and
(b)to perform a seller’s sales and use tax functions for an agreement sales and use tax, as outlined in the contract between the governing board of the agreement and the certified service provider, other than the seller’s obligation under Section 59-12-124 to remit a tax on the seller’s own purchases.
(24)
(a)Subject to Subsection (24)(b), “clothing” means all human wearing apparel suitable for general use.
(b)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(i)listing the items that constitute “clothing”; and
(ii)that are consistent with the list of items that constitute “clothing” under the agreement.
(25)”Coal-to-liquid” means the process of converting coal into a liquid synthetic fuel.
(26)”Commercial use” means the use of gas, electricity, heat, coal, fuel oil, or other fuels that does not constitute industrial use under Subsection (60) or residential use under Subsection (115).
(27)
(a)”Common carrier” means a person engaged in or transacting the business of transporting passengers, freight, merchandise, or other property for hire within this state.
(b)
(i)”Common carrier” does not include a person that, at the time the person is traveling to or from that person’s place of employment, transports a passenger to or from the passenger’s place of employment.
(ii)For purposes of Subsection (27)(b)(i), in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining what constitutes a person’s place of employment.
(c)”Common carrier” does not include a person that provides transportation network services, as defined in Section 13-51-102.
(28)”Component part” includes:
(a)poultry, dairy, and other livestock feed, and their components;
(b)baling ties and twine used in the baling of hay and straw;
(c)fuel used for providing temperature control of orchards and commercial greenhouses doing a majority of their business in wholesale sales, and for providing power for off-highway type farm machinery; and
(d)feed, seeds, and seedlings.
(29)”Computer” means an electronic device that accepts information:
(a)
(i)in digital form; or
(ii)in a form similar to digital form; and
(b)manipulates that information for a result based on a sequence of instructions.
(30)”Computer software” means a set of coded instructions designed to cause:
(a)a computer to perform a task; or
(b)automatic data processing equipment to perform a task.
(31)”Computer software maintenance contract” means a contract that obligates a seller of computer software to provide a customer with:
(a)future updates or upgrades to computer software;
(b)support services with respect to computer software; or
(c)a combination of Subsections (31)(a) and (b).
(32)
(a)”Conference bridging service” means an ancillary service that links two or more participants of an audio conference call or video conference call.
(b)”Conference bridging service” may include providing a telephone number as part of the ancillary service described in Subsection (32)(a).
(c)”Conference bridging service” does not include a telecommunications service used to reach the ancillary service described in Subsection (32)(a).
(33)”Construction materials” means any tangible personal property that will be converted into real property.
(34)”Delivered electronically” means delivered to a purchaser by means other than tangible storage media.
(35)
(a)”Delivery charge” means a charge:
(i)by a seller of:
(A)tangible personal property;
(B)a product transferred electronically; or
(C)a service; and
(ii)for preparation and delivery of the tangible personal property, product transferred electronically, or services described in Subsection (35)(a)(i) to a location designated by the purchaser.
(b)”Delivery charge” includes a charge for the following:
(i)transportation;
(ii)shipping;
(iii)postage;
(iv)handling;
(v)crating; or
(vi)packing.
(36)”Detailed telecommunications billing service” means an ancillary service of separately stating information pertaining to individual calls on a customer’s billing statement.
(37)”Dietary supplement” means a product, other than tobacco, that:
(a)is intended to supplement the diet;
(b)contains one or more of the following dietary ingredients:
(i)a vitamin;
(ii)a mineral;
(iii)an herb or other botanical;
(iv)an amino acid;
(v)a dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
(vi)a concentrate, metabolite, constituent, extract, or combination of any ingredient described in Subsections (37)(b)(i) through (v);
(c)
(i)except as provided in Subsection (37)(c)(ii), is intended for ingestion in:
(A)tablet form;
(B)capsule form;
(C)powder form;
(D)softgel form;
(E)gelcap form; or
(F)liquid form; or
(ii)if the product is not intended for ingestion in a form described in Subsections (37)(c)(i)(A) through (F), is not represented:
(A)as conventional food; and
(B)for use as a sole item of:
(I)a meal; or
(II)the diet; and
(d)is required to be labeled as a dietary supplement:
(i)identifiable by the “Supplemental Facts” box found on the label; and
(ii)as required by 21 C.F.R. Sec. 101.36.
(38)
(a)”Digital audio work” means a work that results from the fixation of a series of musical, spoken, or other sounds.
(b)”Digital audio work” includes a ringtone.
(39)”Digital audio-visual work” means a series of related images which, when shown in succession, imparts an impression of motion, together with accompanying sounds, if any.
(40)”Digital book” means a work that is generally recognized in the ordinary and usual sense as a book.
(41)
(a)”Direct mail” means printed material delivered or distributed by United States mail or other delivery service:
(i)to:
(A)a mass audience; or
(B)addressees on a mailing list provided:
(I)by a purchaser of the mailing list; or
(II)at the discretion of the purchaser of the mailing list; and
(ii)if the cost of the printed material is not billed directly to the recipients.
(b)”Direct mail” includes tangible personal property supplied directly or indirectly by a purchaser to a seller of direct mail for inclusion in a package containing the printed material.
(c)”Direct mail” does not include multiple items of printed material delivered to a single address.
(42)”Directory assistance” means an ancillary service of providing:
(a)address information; or
(b)telephone number information.
(43)
(a)”Disposable home medical equipment or supplies” means medical equipment or supplies that:
(i)cannot withstand repeated use; and
(ii)are purchased by, for, or on behalf of a person other than:
(A)a health care facility as defined in Section 26B-2-201;
(B)a health care provider as defined in Section 78B-3-403;
(C)an office of a health care provider described in Subsection (43)(a)(ii)(B); or
(D)a person similar to a person described in Subsections (43)(a)(ii)(A) through (C).
(b)”Disposable home medical equipment or supplies” does not include:
(i)a drug;
(ii)durable medical equipment;
(iii)a hearing aid;
(iv)a hearing aid accessory;
(v)mobility enhancing equipment; or
(vi)tangible personal property used to correct impaired vision, including:
(A)eyeglasses; or
(B)contact lenses.
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes medical equipment or supplies.
(44)”Drilling equipment manufacturer” means a facility:
(a)located in the state;
(b)with respect to which 51% or more of the manufacturing activities of the facility consist of manufacturing component parts of drilling equipment;
(c)that uses pressure of 800,000 or more pounds per square inch as part of the manufacturing process; and
(d)that uses a temperature of 2,000 or more degrees Fahrenheit as part of the manufacturing process.
(45)
(a)”Drug” means a compound, substance, or preparation, or a component of a compound, substance, or preparation that is:
(i)recognized in:
(A)the official United States Pharmacopoeia;
(B)the official Homeopathic Pharmacopoeia of the United States;
(C)the official National Formulary; or
(D)a supplement to a publication listed in Subsections (45)(a)(i)(A) through (C);
(ii)intended for use in the:
(A)diagnosis of disease;
(B)cure of disease;
(C)mitigation of disease;
(D)treatment of disease; or
(E)prevention of disease; or
(iii)intended to affect:
(A)the structure of the body; or
(B)any function of the body.
(b)”Drug” does not include:
(i)food and food ingredients;
(ii)a dietary supplement;
(iii)an alcoholic beverage; or
(iv)a prosthetic device.
(46)
(a)”Durable medical equipment” means equipment that:
(i)can withstand repeated use;
(ii)is primarily and customarily used to serve a medical purpose;
(iii)generally is not useful to a person in the absence of illness or injury; and
(iv)is not worn in or on the body.
(b)”Durable medical equipment” includes parts used in the repair or replacement of the equipment described in Subsection (46)(a).
(c)”Durable medical equipment” does not include mobility enhancing equipment.
(47)”Electronic” means:
(a)relating to technology; and
(b)having:
(i)electrical capabilities;
(ii)digital capabilities;
(iii)magnetic capabilities;
(iv)wireless capabilities;
(v)optical capabilities;
(vi)electromagnetic capabilities; or
(vii)capabilities similar to Subsections (47)(b)(i) through (vi).
(48)”Electronic financial payment service” means an establishment:
(a)within NAICS Code 522320, Financial Transactions Processing, Reserve, and Clearinghouse Activities, of the 2012 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget; and
(b)that performs electronic financial payment services.
(49)”Employee” means the same as that term is defined in Section 59-10-401.
(50)”Fixed guideway” means a public transit facility that uses and occupies:
(a)rail for the use of public transit; or
(b)a separate right-of-way for the use of public transit.
(51)”Fixed wing turbine powered aircraft” means an aircraft that:
(a)is powered by turbine engines;
(b)operates on jet fuel; and
(c)has wings that are permanently attached to the fuselage of the aircraft.
(52)”Fixed wireless service” means a telecommunications service that provides radio communication between fixed points.
(53)
(a)”Food and food ingredients” means substances:
(i)regardless of whether the substances are in:
(A)liquid form;
(B)concentrated form;
(C)solid form;
(D)frozen form;
(E)dried form; or
(F)dehydrated form; and
(ii)that are:
(A)sold for:
(I)ingestion by humans; or
(II)chewing by humans; and
(B)consumed for the substance’s:
(I)taste; or
(II)nutritional value.
(b)”Food and food ingredients” includes an item described in Subsection (99)(b)(iii).
(c)”Food and food ingredients” does not include:
(i)an alcoholic beverage;
(ii)tobacco; or
(iii)prepared food.
(54)
(a)”Fundraising sales” means sales:
(i)
(A)made by a school; or
(B)made by a school student;
(ii)that are for the purpose of raising funds for the school to purchase equipment, materials, or provide transportation; and
(iii)that are part of an officially sanctioned school activity.
(b)For purposes of Subsection (54)(a)(iii), “officially sanctioned school activity” means a school activity:
(i)that is conducted in accordance with a formal policy adopted by the school or school district governing the authorization and supervision of fundraising activities;
(ii)that does not directly or indirectly compensate an individual teacher or other educational personnel by direct payment, commissions, or payment in kind; and
(iii)the net or gross revenue from which is deposited in a dedicated account controlled by the school or school district.
(55)”Geothermal energy” means energy contained in heat that continuously flows outward from the earth that is used as the sole source of energy to produce electricity.
(56)”Governing board of the agreement” means the governing board of the agreement that is:
(a)authorized to administer the agreement; and
(b)established in accordance with the agreement.
(57)
(a)For purposes of Subsection 59-12-104(41), “governmental entity” means:
(i)the executive branch of the state, including all departments, institutions, boards, divisions, bureaus, offices, commissions, and committees;
(ii)the judicial branch of the state, including the courts, the Judicial Council, the Administrative Office of the Courts, and similar administrative units in the judicial branch;
(iii)the legislative branch of the state, including the House of Representatives, the Senate, the Legislative Printing Office, the Office of Legislative Research and General Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
(iv)the National Guard;
(v)an independent entity as defined in Section 63E-1-102; or
(vi)a political subdivision as defined in Section 17B-1-102.
(b)”Governmental entity” does not include the state systems of public and higher education, including:
(i)a school;
(ii)the State Board of Education;
(iii)the Utah Board of Higher Education; or
(iv)an institution of higher education described in Section 53B-1-102.
(58)”Hydroelectric energy” means water used as the sole source of energy to produce electricity.
(59)”Individual-owned shared vehicle” means the same as that term is defined in Section 13-48a-101.
(60)”Industrial use” means the use of natural gas, electricity, heat, coal, fuel oil, or other fuels:
(a)in mining or extraction of minerals;
(b)in agricultural operations to produce an agricultural product up to the time of harvest or placing the agricultural product into a storage facility, including:
(i)commercial greenhouses;
(ii)irrigation pumps;
(iii)farm machinery;
(iv)implements of husbandry as defined in Section 41-1a-102 that are not registered under Title 41, Chapter 1a, Part 2, Registration; and
(v)other farming activities;
(c)in manufacturing tangible personal property at an establishment described in:
(i)SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget; or
(ii)a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(d)by a scrap recycler if:
(i)from a fixed location, the scrap recycler utilizes machinery or equipment to process one or more of the following items into prepared grades of processed materials for use in new products:
(A)iron;
(B)steel;
(C)nonferrous metal;
(D)paper;
(E)glass;
(F)plastic;
(G)textile; or
(H)rubber; and
(ii)the new products under Subsection (60)(d)(i) would otherwise be made with nonrecycled materials; or
(e)in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a cogeneration facility as defined in Section 54-2-1.
(61)
(a)”Installation charge” means a charge for installing:
(i)tangible personal property; or
(ii)a product transferred electronically.
(b)”Installation charge” does not include a charge for:
(i)repairs or renovations of:
(A)tangible personal property; or
(B)a product transferred electronically; or
(ii)attaching tangible personal property or a product transferred electronically:
(A)to other tangible personal property; and
(B)as part of a manufacturing or fabrication process.
(62)”Institution of higher education” means an institution of higher education listed in Section 53B-2-101.
(63)
(a)”Lease” or “rental” means a transfer of possession or control of tangible personal property or a product transferred electronically for:
(i)
(A)a fixed term; or
(B)an indeterminate term; and
(ii)consideration.
(b)”Lease” or “rental” includes:
(i)an agreement covering a motor vehicle and trailer if the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code; and
(ii)car sharing.
(c)”Lease” or “rental” does not include:
(i)a transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
(ii)a transfer of possession or control of property under an agreement that requires the transfer of title:
(A)upon completion of required payments; and
(B)if the payment of an option price does not exceed the greater of:
(I)$100; or
(II)1% of the total required payments; or
(iii)providing tangible personal property along with an operator for a fixed period of time or an indeterminate period of time if the operator is necessary for equipment to perform as designed.
(d)For purposes of Subsection (63)(c)(iii), an operator is necessary for equipment to perform as designed if the operator’s duties exceed the:
(i)set-up of tangible personal property;
(ii)maintenance of tangible personal property; or
(iii)inspection of tangible personal property.
(64)”Lesson” means a fixed period of time for the duration of which a trained instructor:
(a)is present with a student in person or by video; and
(b)actively instructs the student, including by providing observation or feedback.
(65)”Life science establishment” means an establishment in this state that is classified under the following NAICS codes of the 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget:
(a)NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
(b)NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus Manufacturing; or
(c)NAICS Code 334517, Irradiation Apparatus Manufacturing.
(66)”Life science research and development facility” means a facility owned, leased, or rented by a life science establishment if research and development is performed in 51% or more of the total area of the facility.
(67)”Load and leave” means delivery to a purchaser by use of a tangible storage media if the tangible storage media is not physically transferred to the purchaser.
(68)”Local taxing jurisdiction” means a:
(a)county that is authorized to impose an agreement sales and use tax;
(b)city that is authorized to impose an agreement sales and use tax; or
(c)town that is authorized to impose an agreement sales and use tax.
(69)”Manufactured home” means the same as that term is defined in Section 15A-1-302.
(70)”Manufacturing facility” means:
(a)an establishment described in:
(i)SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget; or
(ii)a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(b)a scrap recycler if:
(i)from a fixed location, the scrap recycler utilizes machinery or equipment to process one or more of the following items into prepared grades of processed materials for use in new products:
(A)iron;
(B)steel;
(C)nonferrous metal;
(D)paper;
(E)glass;
(F)plastic;
(G)textile; or
(H)rubber; and
(ii)the new products under Subsection (70)(b)(i) would otherwise be made with nonrecycled materials; or
(c)a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is placed in service on or after May 1, 2006.
(71)
(a)”Marketplace” means a physical or electronic place, platform, or forum where tangible personal property, a product transferred electronically, or a service is offered for sale.
(b)”Marketplace” includes a store, a booth, an Internet website, a catalog, or a dedicated sales software application.
(72)
(a)”Marketplace facilitator” means a person, including an affiliate of the person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to facilitate the sale of a seller’s product through a marketplace that the person owns, operates, or controls and that directly or indirectly:
(i)does any of the following:
(A)lists, makes available, or advertises tangible personal property, a product transferred electronically, or a service for sale by a marketplace seller on a marketplace that the person owns, operates, or controls;
(B)facilitates the sale of a marketplace seller’s tangible personal property, product transferred electronically, or service by transmitting or otherwise communicating an offer or acceptance of a retail sale between the marketplace seller and a purchaser using the marketplace;
(C)owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or any property, process, method, copyright, trademark, or patent that connects a marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal property, a product transferred electronically, or a service;
(D)provides a marketplace for making, or otherwise facilitates, a retail sale of tangible personal property, a product transferred electronically, or a service, regardless of ownership or control of the tangible personal property, the product transferred electronically, or the service that is the subject of the retail sale;
(E)provides software development or research and development activities related to any activity described in this Subsection (72)(a)(i), if the software development or research and development activity is directly related to the person’s marketplace;
(F)provides or offers fulfillment or storage services for a marketplace seller;
(G)sets prices for the sale of tangible personal property, a product transferred electronically, or a service by a marketplace seller;
(H)provides or offers customer service to a marketplace seller or a marketplace seller’s purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal property, a product transferred electronically, or a service sold by a marketplace seller on the person’s marketplace; or
(I)brands or otherwise identifies sales as those of the person; and
(ii)does any of the following:
(A)collects the sales price or purchase price of a retail sale of tangible personal property, a product transferred electronically, or a service;
(B)provides payment processing services for a retail sale of tangible personal property, a product transferred electronically, or a service;
(C)charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing fee, a fee for inserting or making available tangible personal property, a product transferred electronically, or a service on the person’s marketplace, or other consideration for the facilitation of a retail sale of tangible personal property, a product transferred electronically, or a service, regardless of ownership or control of the tangible personal property, the product transferred electronically, or the service that is the subject of the retail sale;
(D)through terms and conditions, an agreement, or another arrangement with a third person, collects payment from a purchase for a retail sale of tangible personal property, a product transferred electronically, or a service and transmits that payment to the marketplace seller, regardless of whether the third person receives compensation or other consideration in exchange for the service; or
(E)provides a virtual currency for a purchaser to use to purchase tangible personal property, a product transferred electronically, or service offered for sale.
(b)”Marketplace facilitator” does not include:
(i)a person that only provides payment processing services; or
(ii)a person described in Subsection (72)(a) to the extent the person is facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
(73)”Marketplace seller” means a seller that makes one or more retail sales through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the seller is required to be registered to collect and remit the tax under this part.
(74)”Member of the immediate family of the producer” means a person who is related to a producer described in Subsection 59-12-104(20)(a) as a:
(a)child or stepchild, regardless of whether the child or stepchild is:
(i)an adopted child or adopted stepchild; or
(ii)a foster child or foster stepchild;
(b)grandchild or stepgrandchild;
(c)grandparent or stepgrandparent;
(d)nephew or stepnephew;
(e)niece or stepniece;
(f)parent or stepparent;
(g)sibling or stepsibling;
(h)spouse;
(i)person who is the spouse of a person described in Subsections (74)(a) through (g); or
(j)person similar to a person described in Subsections (74)(a) through (i) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(75)”Mobile home” means the same as that term is defined in Section 15A-1-302.
(76)”Mobile telecommunications service” means the same as that term is defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(77)
(a)”Mobile wireless service” means a telecommunications service, regardless of the technology used, if:
(i)the origination point of the conveyance, routing, or transmission is not fixed;
(ii)the termination point of the conveyance, routing, or transmission is not fixed; or
(iii)the origination point described in Subsection (77)(a)(i) and the termination point described in Subsection (77)(a)(ii) are not fixed.
(b)”Mobile wireless service” includes a telecommunications service that is provided by a commercial mobile radio service provider.
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define “commercial mobile radio service provider.”
(78)
(a)”Mobility enhancing equipment” means equipment that is:
(i)primarily and customarily used to provide or increase the ability to move from one place to another;
(ii)appropriate for use in a:
(A)home; or
(B)motor vehicle; and
(iii)not generally used by persons with normal mobility.
(b)”Mobility enhancing equipment” includes parts used in the repair or replacement of the equipment described in Subsection (78)(a).
(c)”Mobility enhancing equipment” does not include:
(i)a motor vehicle;
(ii)equipment on a motor vehicle if that equipment is normally provided by the motor vehicle manufacturer;
(iii)durable medical equipment; or
(iv)a prosthetic device.
(79)”Model 1 seller” means a seller registered under the agreement that has selected a certified service provider as the seller’s agent to perform the seller’s sales and use tax functions for agreement sales and use taxes, as outlined in the contract between the governing board of the agreement and the certified service provider, other than the seller’s obligation under Section 59-12-124 to remit a tax on the seller’s own purchases.
(80)”Model 2 seller” means a seller registered under the agreement that:
(a)except as provided in Subsection (80)(b), has selected a certified automated system to perform the seller’s sales tax functions for agreement sales and use taxes; and
(b)retains responsibility for remitting all of the sales tax:
(i)collected by the seller; and
(ii)to the appropriate local taxing jurisdiction.
(81)
(a)Subject to Subsection (81)(b), “model 3 seller” means a seller registered under the agreement that has:
(i)sales in at least five states that are members of the agreement;
(ii)total annual sales revenue of at least $500,000,000;
(iii)a proprietary system that calculates the amount of tax:
(A)for an agreement sales and use tax; and
(B)due to each local taxing jurisdiction; and
(iv)entered into a performance agreement with the governing board of the agreement.
(b)For purposes of Subsection (81)(a), “model 3 seller” includes an affiliated group of sellers using the same proprietary system.
(82)”Model 4 seller” means a seller that is registered under the agreement and is not a model 1 seller, model 2 seller, or model 3 seller.
(83)”Modular home” means a modular unit as defined in Section 15A-1-302.
(84)”Motor vehicle” means the same as that term is defined in Section 41-1a-102.
(85)”Oil sands” means impregnated bituminous sands that:
(a)contain a heavy, thick form of petroleum that is released when heated, mixed with other hydrocarbons, or otherwise treated;
(b)yield mixtures of liquid hydrocarbon; and
(c)require further processing other than mechanical blending before becoming finished petroleum products.
(86)”Oil shale” means a group of fine black to dark brown shales containing kerogen material that yields petroleum upon heating and distillation.
(87)”Optional computer software maintenance contract” means a computer software maintenance contract that a customer is not obligated to purchase as a condition to the retail sale of computer software.
(88)
(a)”Other fuels” means products that burn independently to produce heat or energy.
(b)”Other fuels” includes oxygen when it is used in the manufacturing of tangible personal property.
(89)
(a)”Paging service” means a telecommunications service that provides transmission of a coded radio signal for the purpose of activating a specific pager.
(b)For purposes of Subsection (89)(a), the transmission of a coded radio signal includes a transmission by message or sound.
(90)”Pawn transaction” means the same as that term is defined in Section 13-32a-102.
(91)”Pawnbroker” means the same as that term is defined in Section 13-32a-102.
(92)
(a)”Permanently attached to real property” means that for tangible personal property attached to real property:
(i)the attachment of the tangible personal property to the real property:
(A)is essential to the use of the tangible personal property; and
(B)suggests that the tangible personal property will remain attached to the real property in the same place over the useful life of the tangible personal property; or
(ii)if the tangible personal property is detached from the real property, the detachment would:
(A)cause substantial damage to the tangible personal property; or
(B)require substantial alteration or repair of the real property to which the tangible personal property is attached.
(b)”Permanently attached to real property” includes:
(i)the attachment of an accessory to the tangible personal property if the accessory is:
(A)essential to the operation of the tangible personal property; and
(B)attached only to facilitate the operation of the tangible personal property;
(ii)a temporary detachment of tangible personal property from real property for a repair or renovation if the repair or renovation is performed where the tangible personal property and real property are located; or
(iii)property attached to oil, gas, or water pipelines, except for the property listed in Subsection (92)(c)(iii) or (iv).
(c)”Permanently attached to real property” does not include:
(i)the attachment of portable or movable tangible personal property to real property if that portable or movable tangible personal property is attached to real property only for:
(A)convenience;
(B)stability; or
(C)for an obvious temporary purpose;
(ii)the detachment of tangible personal property from real property except for the detachment described in Subsection (92)(b)(ii);
(iii)an attachment of the following tangible personal property to real property if the attachment to real property is only through a line that supplies water, electricity, gas, telecommunications, cable, or supplies a similar item as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(A)a computer;
(B)a telephone;
(C)a television; or
(D)tangible personal property similar to Subsections (92)(c)(iii)(A) through (C) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(iv)an item listed in Subsection (137)(c).
(93)”Person” includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality, district, or other local governmental entity of the state, or any group or combination acting as a unit.
(94)”Place of primary use”:
(a)for telecommunications service other than mobile telecommunications service, means the street address representative of where the customer’s use of the telecommunications service primarily occurs, which shall be:
(i)the residential street address of the customer; or
(ii)the primary business street address of the customer; or
(b)for mobile telecommunications service, means the same as that term is defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(95)
(a)”Postpaid calling service” means a telecommunications service a person obtains by making a payment on a call-by-call basis:
(i)through the use of a:
(A)bank card;
(B)credit card;
(C)debit card; or
(D)travel card; or
(ii)by a charge made to a telephone number that is not associated with the origination or termination of the telecommunications service.
(b)”Postpaid calling service” includes a service, except for a prepaid wireless calling service, that would be a prepaid wireless calling service if the service were exclusively a telecommunications service.
(96)”Postproduction” means an activity related to the finishing or duplication of a medium described in Subsection 59-12-104(54)(a).
(97)”Prepaid calling service” means a telecommunications service:
(a)that allows a purchaser access to telecommunications service that is exclusively telecommunications service;
(b)that:
(i)is paid for in advance; and
(ii)enables the origination of a call using an:
(A)access number; or
(B)authorization code;
(c)that is dialed:
(i)manually; or
(ii)electronically; and
(d)sold in predetermined units or dollars that decline:
(i)by a known amount; and
(ii)with use.
(98)”Prepaid wireless calling service” means a telecommunications service:
(a)that provides the right to utilize:
(i)mobile wireless service; and
(ii)other service that is not a telecommunications service, including:
(A)the download of a product transferred electronically;
(B)a content service; or
(C)an ancillary service;
(b)that:
(i)is paid for in advance; and
(ii)enables the origination of a call using an:
(A)access number; or
(B)authorization code;
(c)that is dialed:
(i)manually; or
(ii)electronically; and
(d)sold in predetermined units or dollars that decline:
(i)by a known amount; and
(ii)with use.
(99)
(a)”Prepared food” means:
(i)food:
(A)sold in a heated state; or
(B)heated by a seller;
(ii)two or more food ingredients mixed or combined by the seller for sale as a single item; or
(iii)except as provided in Subsection (99)(c), food sold with an eating utensil provided by the seller, including a:
(A)plate;
(B)knife;
(C)fork;
(D)spoon;
(E)glass;
(F)cup;
(G)napkin; or
(H)straw.
(b)”Prepared food” does not include:
(i)food that a seller only:
(A)cuts;
(B)repackages; or
(C)pasteurizes;
(ii)
(A)the following:
(I)raw egg;
(II)raw fish;
(III)raw meat;
(IV)raw poultry; or
(V)a food containing an item described in Subsections (99)(b)(ii)(A)(I) through (IV); and
(B)if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the Food and Drug Administration’s Food Code that a consumer cook the items described in Subsection (99)(b)(ii)(A) to prevent food borne illness; or
(iii)the following if sold without eating utensils provided by the seller:
(A)food and food ingredients sold by a seller if the seller’s proper primary classification under the 2002 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, is manufacturing in Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
(B)food and food ingredients sold in an unheated state:
(I)by weight or volume; and
(II)as a single item; or
(C)a bakery item, including:
(I)a bagel;
(II)a bar;
(III)a biscuit;
(IV)bread;
(V)a bun;
(VI)a cake;
(VII)a cookie;
(VIII)a croissant;
(IX)a danish;
(X)a donut;
(XI)a muffin;
(XII)a pastry;
(XIII)a pie;
(XIV)a roll;
(XV)a tart;
(XVI)a torte; or
(XVII)a tortilla.
(c)An eating utensil provided by the seller does not include the following used to transport the food:
(i)a container; or
(ii)packaging.
(100)”Prescription” means an order, formula, or recipe that is issued:
(a)
(i)orally;
(ii)in writing;
(iii)electronically; or
(iv)by any other manner of transmission; and
(b)by a licensed practitioner authorized by the laws of a state.
(101)
(a)”Prewritten computer software” means computer software that is not designed and developed:
(i)by the author or other creator of the computer software; and
(ii)to the specifications of a specific purchaser.
(b)”Prewritten computer software” includes:
(i)a prewritten upgrade to computer software if the prewritten upgrade to the computer software is not designed and developed:
(A)by the author or other creator of the computer software; and
(B)to the specifications of a specific purchaser;
(ii)computer software designed and developed by the author or other creator of the computer software to the specifications of a specific purchaser if the computer software is sold to a person other than the purchaser; or
(iii)except as provided in Subsection (101)(c), prewritten computer software or a prewritten portion of prewritten computer software:
(A)that is modified or enhanced to any degree; and
(B)if the modification or enhancement described in Subsection (101)(b)(iii)(A) is designed and developed to the specifications of a specific purchaser.
(c)”Prewritten computer software” does not include a modification or enhancement described in Subsection (101)(b)(iii) if the charges for the modification or enhancement are:
(i)reasonable; and
(ii)subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the invoice or other statement of price provided to the purchaser at the time of sale or later, as demonstrated by:
(A)the books and records the seller keeps at the time of the transaction in the regular course of business, including books and records the seller keeps at the time of the transaction in the regular course of business for nontax purposes;
(B)a preponderance of the facts and circumstances at the time of the transaction; and
(C)the understanding of all of the parties to the transaction.
(102)
(a)”Private communications service” means a telecommunications service:
(i)that entitles a customer to exclusive or priority use of one or more communications channels between or among termination points; and
(ii)regardless of the manner in which the one or more communications channels are connected.
(b)”Private communications service” includes the following provided in connection with the use of one or more communications channels:
(i)an extension line;
(ii)a station;
(iii)switching capacity; or
(iv)another associated service that is provided in connection with the use of one or more communications channels as defined in Section 59-12-215.
(103)
(a)”Product transferred electronically” means a product transferred electronically that would be subject to a tax under this chapter if that product was transferred in a manner other than electronically.
(b)”Product transferred electronically” does not include:
(i)an ancillary service;
(ii)computer software; or
(iii)a telecommunications service.
(104)
(a)”Prosthetic device” means a device that is worn on or in the body to:
(i)artificially replace a missing portion of the body;
(ii)prevent or correct a physical deformity or physical malfunction; or
(iii)support a weak or deformed portion of the body.
(b)”Prosthetic device” includes:
(i)parts used in the repairs or renovation of a prosthetic device;
(ii)replacement parts for a prosthetic device;
(iii)a dental prosthesis; or
(iv)a hearing aid.
(c)”Prosthetic device” does not include:
(i)corrective eyeglasses; or
(ii)contact lenses.
(105)
(a)”Protective equipment” means an item:
(i)for human wear; and
(ii)that is:
(A)designed as protection:
(I)to the wearer against injury or disease; or
(II)against damage or injury of other persons or property; and
(B)not suitable for general use.
(b)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(i)listing the items that constitute “protective equipment”; and
(ii)that are consistent with the list of items that constitute “protective equipment” under the agreement.
(106)
(a)For purposes of Subsection 59-12-104(41), “publication” means any written or printed matter, other than a photocopy:
(i)regardless of:
(A)characteristics;
(B)copyright;
(C)form;
(D)format;
(E)method of reproduction; or
(F)source; and
(ii)made available in printed or electronic format.
(b)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term “photocopy.”
(107)
(a)”Purchase price” and “sales price” mean the total amount of consideration:
(i)valued in money; and
(ii)for which tangible personal property, a product transferred electronically, or services are:
(A)sold;
(B)leased; or
(C)rented.
(b)”Purchase price” and “sales price” include:
(i)the seller’s cost of the tangible personal property, a product transferred electronically, or services sold;
(ii)expenses of the seller, including:
(A)the cost of materials used;
(B)a labor cost;
(C)a service cost;
(D)interest;
(E)a loss;
(F)the cost of transportation to the seller; or
(G)a tax imposed on the seller;
(iii)a charge by the seller for any service necessary to complete the sale; or
(iv)consideration a seller receives from a person other than the purchaser if:
(A)
(I)the seller actually receives consideration from a person other than the purchaser; and
(II)the consideration described in Subsection (107)(b)(iv)(A)(I) is directly related to a price reduction or discount on the sale;
(B)the seller has an obligation to pass the price reduction or discount through to the purchaser;
(C)the amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale to the purchaser; and
(D)
(I)
(Aa)the purchaser presents a certificate, coupon, or other documentation to the seller to claim a price reduction or discount; and
(Bb)a person other than the seller authorizes, distributes, or grants the certificate, coupon, or other documentation with the understanding that the person other than the seller will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
(II)the purchaser identifies that purchaser to the seller as a member of a group or organization allowed a price reduction or discount, except that a preferred customer card that is available to any patron of a seller does not constitute membership in a group or organization allowed a price reduction or discount; or
(III)the price reduction or discount is identified as a third party price reduction or discount on the:
(Aa)invoice the purchaser receives; or
(Bb)certificate, coupon, or other documentation the purchaser presents.
(c)”Purchase price” and “sales price” do not include:
(i)a discount:
(A)in a form including:
(I)cash;
(II)term; or
(III)coupon;
(B)that is allowed by a seller;
(C)taken by a purchaser on a sale; and
(D)that is not reimbursed by a third party; or
(ii)subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of sale or later, as demonstrated by the books and records the seller keeps at the time of the transaction in the regular course of business, including books and records the seller keeps at the time of the transaction in the regular course of business for nontax purposes, by a preponderance of the facts and circumstances at the time of the transaction, and by the understanding of all of the parties to the transaction:
(A)the following from credit extended on the sale of tangible personal property or services:
(I)a carrying charge;
(II)a financing charge; or
(III)an interest charge;
(B)a delivery charge;
(C)an installation charge;
(D)a manufacturer rebate on a motor vehicle; or
(E)a tax or fee legally imposed directly on the consumer.
(108)”Purchaser” means a person to whom:
(a)a sale of tangible personal property is made;
(b)a product is transferred electronically; or
(c)a service is furnished.
(109)”Qualifying data center” means a data center facility that:
(a)houses a group of networked server computers in one physical location in order to disseminate, manage, and store data and information;
(b)is located in the state;
(c)is a new operation constructed on or after July 1, 2016;
(d)consists of one or more buildings that total 150,000 or more square feet;
(e)is owned or leased by:
(i)the operator of the data center facility; or
(ii)a person under common ownership, as defined in Section 59-7-101, of the operator of the data center facility; and
(f)is located on one or more parcels of land that are owned or leased by:
(i)the operator of the data center facility; or
(ii)a person under common ownership, as defined in Section 59-7-101, of the operator of the data center facility.
(110)”Regularly rented” means:
(a)rented to a guest for value three or more times during a calendar year; or
(b)advertised or held out to the public as a place that is regularly rented to guests for value.
(111)”Rental” means the same as that term is defined in Subsection (63).
(112)
(a)”Repairs or renovations of tangible personal property” means:
(i)a repair or renovation of tangible personal property that is not permanently attached to real property; or
(ii)attaching tangible personal property or a product transferred electronically to other tangible personal property or detaching tangible personal property or a product transferred electronically from other tangible personal property if:
(A)the other tangible personal property to which the tangible personal property or product transferred electronically is attached or from which the tangible personal property or product transferred electronically is detached is not permanently attached to real property; and
(B)the attachment of tangible personal property or a product transferred electronically to other tangible personal property or detachment of tangible personal property or a product transferred electronically from other tangible personal property is made in conjunction with a repair or replacement of tangible personal property or a product transferred electronically.
(b)”Repairs or renovations of tangible personal property” does not include:
(i)attaching prewritten computer software to other tangible personal property if the other tangible personal property to which the prewritten computer software is attached is not permanently attached to real property; or
(ii)detaching prewritten computer software from other tangible personal property if the other tangible personal property from which the prewritten computer software is detached is not permanently attached to real property.
(113)”Research and development” means the process of inquiry or experimentation aimed at the discovery of facts, devices, technologies, or applications and the process of preparing those devices, technologies, or applications for marketing.
(114)
(a)”Residential telecommunications services” means a telecommunications service or an ancillary service that is provided to an individual for personal use:
(i)at a residential address; or
(ii)at an institution, including a nursing home or a school, if the telecommunications service or ancillary service is provided to and paid for by the individual residing at the institution rather than the institution.
(b)For purposes of Subsection (114)(a)(i), a residential address includes an:
(i)apartment; or
(ii)other individual dwelling unit.
(115)”Residential use” means the use in or around a home, apartment building, sleeping quarters, and similar facilities or accommodations.
(116)”Retail sale” or “sale at retail” means a sale, lease, or rental for a purpose other than:
(a)resale;
(b)sublease; or
(c)subrent.
(117)
(a)”Retailer” means any person, unless prohibited by the Constitution of the United States or federal law, that is engaged in a regularly organized business in tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and who is selling to the user or consumer and not for resale.
(b)”Retailer” includes commission merchants, auctioneers, and any person regularly engaged in the business of selling to users or consumers within the state.
(118)
(a)”Sale” means any transfer of title, exchange, or barter, conditional or otherwise, in any manner, of tangible personal property or any other taxable transaction under Subsection 59-12-103(1), for consideration.
(b)”Sale” includes:
(i)installment and credit sales;
(ii)any closed transaction constituting a sale;
(iii)any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
(iv)any transaction if the possession of property is transferred but the seller retains the title as security for the payment of the price; and
(v)any transaction under which right to possession, operation, or use of any article of tangible personal property is granted under a lease or contract and the transfer of possession would be taxable if an outright sale were made.
(119)”Sale at retail” means the same as that term is defined in Subsection (116).
(120)”Sale-leaseback transaction” means a transaction by which title to tangible personal property or a product transferred electronically that is subject to a tax under this chapter is transferred:
(a)by a purchaser-lessee;
(b)to a lessor;
(c)for consideration; and
(d)if:
(i)the purchaser-lessee paid sales and use tax on the purchaser-lessee’s initial purchase of the tangible personal property or product transferred electronically;
(ii)the sale of the tangible personal property or product transferred electronically to the lessor is intended as a form of financing:
(A)for the tangible personal property or product transferred electronically; and
(B)to the purchaser-lessee; and
(iii)in accordance with generally accepted accounting principles, the purchaser-lessee is required to:
(A)capitalize the tangible personal property or product transferred electronically for financial reporting purposes; and
(B)account for the lease payments as payments made under a financing arrangement.
(121)”Sales price” means the same as that term is defined in Subsection (107).
(122)
(a)”Sales relating to schools” means the following sales by, amounts paid to, or amounts charged by a school:
(i)sales that are directly related to the school’s educational functions or activities including:
(A)the sale of:
(I)textbooks;
(II)textbook fees;
(III)laboratory fees;
(IV)laboratory supplies; or
(V)safety equipment;
(B)the sale of a uniform, protective equipment, or sports or recreational equipment that:
(I)a student is specifically required to wear as a condition of participation in a school-related event or school-related activity; and
(II)is not readily adaptable to general or continued usage to the extent that it takes the place of ordinary clothing;
(C)sales of the following if the net or gross revenue generated by the sales is deposited into a school district fund or school fund dedicated to school meals:
(I)food and food ingredients; or
(II)prepared food; or
(D)transportation charges for official school activities; or
(ii)amounts paid to or amounts charged by a school for admission to a school-related event or school-related activity.
(b)”Sales relating to schools” does not include:
(i)bookstore sales of items that are not educational materials or supplies;
(ii)except as provided in Subsection (122)(a)(i)(B):
(A)clothing;
(B)clothing accessories or equipment;
(C)protective equipment; or
(D)sports or recreational equipment; or
(iii)amounts paid to or amounts charged by a school for admission to a school-related event or school-related activity if the amounts paid or charged are passed through to a person:
(A)other than a:
(I)school;
(II)nonprofit organization authorized by a school board or a governing body of a private school to organize and direct a competitive secondary school activity; or
(III)nonprofit association authorized by a school board or a governing body of a private school to organize and direct a competitive secondary school activity; and
(B)that is required to collect sales and use taxes under this chapter.
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining the term “passed through.”
(123)For purposes of this section and Section 59-12-104, “school” means:
(a)an elementary school or a secondary school that:
(i)is a:
(A)public school; or
(B)private school; and
(ii)provides instruction for one or more grades kindergarten through 12; or
(b)a public school district.
(124)
(a)”Seller” means a person that makes a sale, lease, or rental of:
(i)tangible personal property;
(ii)a product transferred electronically; or
(iii)a service.
(b)”Seller” includes a marketplace facilitator.
(125)
(a)”Semiconductor fabricating, processing, research, or development materials” means tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically is:
(i)used primarily in the process of:
(A)
(I)manufacturing a semiconductor;
(II)fabricating a semiconductor; or
(III)research or development of a:
(Aa)semiconductor; or
(Bb)semiconductor manufacturing process; or
(B)maintaining an environment suitable for a semiconductor; or
(ii)consumed primarily in the process of:
(A)
(I)manufacturing a semiconductor;
(II)fabricating a semiconductor; or
(III)research or development of a:
(Aa)semiconductor; or
(Bb)semiconductor manufacturing process; or
(B)maintaining an environment suitable for a semiconductor.
(b)”Semiconductor fabricating, processing, research, or development materials” includes:
(i)parts used in the repairs or renovations of tangible personal property or a product transferred electronically described in Subsection (125)(a); or
(ii)a chemical, catalyst, or other material used to:
(A)produce or induce in a semiconductor a:
(I)chemical change; or
(II)physical change;
(B)remove impurities from a semiconductor; or
(C)improve the marketable condition of a semiconductor.
(126)”Senior citizen center” means a facility having the primary purpose of providing services to the aged as defined in Section 26B-6-101.
(127)”Shared vehicle” means the same as that term is defined in Section 13-48a-101.
(128)”Shared vehicle driver” means the same as that term is defined in Section 13-48a-101.
(129)”Shared vehicle owner” means the same as that term is defined in Section 13-48a-101.
(130)
(a)Subject to Subsections (130)(b) and (c), “short-term lodging consumable” means tangible personal property that:
(i)a business that provides accommodations and services described in Subsection 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services to a purchaser;
(ii)is intended to be consumed by the purchaser; and
(iii)is:
(A)included in the purchase price of the accommodations and services; and
(B)not separately stated on an invoice, bill of sale, or other similar document provided to the purchaser.
(b)”Short-term lodging consumable” includes:
(i)a beverage;
(ii)a brush or comb;
(iii)a cosmetic;
(iv)a hair care product;
(v)lotion;
(vi)a magazine;
(vii)makeup;
(viii)a meal;
(ix)mouthwash;
(x)nail polish remover;
(xi)a newspaper;
(xii)a notepad;
(xiii)a pen;
(xiv)a pencil;
(xv)a razor;
(xvi)saline solution;
(xvii)a sewing kit;
(xviii)shaving cream;
(xix)a shoe shine kit;
(xx)a shower cap;
(xxi)a snack item;
(xxii)soap;
(xxiii)toilet paper;
(xxiv)a toothbrush;
(xxv)toothpaste; or
(xxvi)an item similar to Subsections (130)(b)(i) through (xxv) as the commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c)”Short-term lodging consumable” does not include:
(i)tangible personal property that is cleaned or washed to allow the tangible personal property to be reused; or
(ii)a product transferred electronically.
(131)
(a)”Short-term rental” means a lease or rental for less than 30 consecutive days.
(b)”Short-term rental” does not include car sharing.
(132)”Simplified electronic return” means the electronic return:
(a)described in Section 318(C) of the agreement; and
(b)approved by the governing board of the agreement.
(133)”Solar energy” means the sun used as the sole source of energy for producing electricity.
(134)
(a)”Sports or recreational equipment” means an item:
(i)designed for human use; and
(ii)that is:
(A)worn in conjunction with:
(I)an athletic activity; or
(II)a recreational activity; and
(B)not suitable for general use.
(b)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:
(i)listing the items that constitute “sports or recreational equipment”; and
(ii)that are consistent with the list of items that constitute “sports or recreational equipment” under the agreement.
(135)”State” means the state of Utah, its departments, and agencies.
(136)”Storage” means any keeping or retention of tangible personal property or any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except sale in the regular course of business.
(137)
(a)”Tangible personal property” means personal property that:
(i)may be:
(A)seen;
(B)weighed;
(C)measured;
(D)felt; or
(E)touched; or
(ii)is in any manner perceptible to the senses.
(b)”Tangible personal property” includes:
(i)electricity;
(ii)water;
(iii)gas;
(iv)steam; or
(v)prewritten computer software, regardless of the manner in which the prewritten computer software is transferred.
(c)”Tangible personal property” includes the following regardless of whether the item is attached to real property:
(i)a dishwasher;
(ii)a dryer;
(iii)a freezer;
(iv)a microwave;
(v)a refrigerator;
(vi)a stove;
(vii)a washer; or
(viii)an item similar to Subsections (137)(c)(i) through (vii) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(d)”Tangible personal property” does not include a product that is transferred electronically.
(e)”Tangible personal property” does not include the following if attached to real property, regardless of whether the attachment to real property is only through a line that supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(i)a hot water heater;
(ii)a water filtration system; or
(iii)a water softener system.
(138)
(a)”Telecommunications enabling or facilitating equipment, machinery, or software” means an item listed in Subsection (138)(b) if that item is purchased or leased primarily to enable or facilitate one or more of the following to function:
(i)telecommunications switching or routing equipment, machinery, or software; or
(ii)telecommunications transmission equipment, machinery, or software.
(b)The following apply to Subsection (138)(a):
(i)a pole;
(ii)software;
(iii)a supplementary power supply;
(iv)temperature or environmental equipment or machinery;
(v)test equipment;
(vi)a tower; or
(vii)equipment, machinery, or software that functions similarly to an item listed in Subsections (138)(b)(i) through (vi) as determined by the commission by rule made in accordance with Subsection (138)(c).
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes equipment, machinery, or software that functions similarly to an item listed in Subsections (138)(b)(i) through (vi).
(139)”Telecommunications equipment, machinery, or software required for 911 service” means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec. 20.18.
(140)”Telecommunications maintenance or repair equipment, machinery, or software” means equipment, machinery, or software purchased or leased primarily to maintain or repair one or more of the following, regardless of whether the equipment, machinery, or software is purchased or leased as a spare part or as an upgrade or modification to one or more of the following:
(a)telecommunications enabling or facilitating equipment, machinery, or software;
(b)telecommunications switching or routing equipment, machinery, or software; or
(c)telecommunications transmission equipment, machinery, or software.
(141)
(a)”Telecommunications service” means the electronic conveyance, routing, or transmission of audio, data, video, voice, or any other information or signal to a point, or among or between points.
(b)”Telecommunications service” includes:
(i)an electronic conveyance, routing, or transmission with respect to which a computer processing application is used to act:
(A)on the code, form, or protocol of the content;
(B)for the purpose of electronic conveyance, routing, or transmission; and
(C)regardless of whether the service:
(I)is referred to as voice over Internet protocol service; or
(II)is classified by the Federal Communications Commission as enhanced or value added;
(ii)an 800 service;
(iii)a 900 service;
(iv)a fixed wireless service;
(v)a mobile wireless service;
(vi)a postpaid calling service;
(vii)a prepaid calling service;
(viii)a prepaid wireless calling service; or
(ix)a private communications service.
(c)”Telecommunications service” does not include:
(i)advertising, including directory advertising;
(ii)an ancillary service;
(iii)a billing and collection service provided to a third party;
(iv)a data processing and information service if:
(A)the data processing and information service allows data to be:
(I)
(Aa)acquired;
(Bb)generated;
(Cc)processed;
(Dd)retrieved; or
(Ee)stored; and
(II)delivered by an electronic transmission to a purchaser; and
(B)the purchaser’s primary purpose for the underlying transaction is the processed data or information;
(v)installation or maintenance of the following on a customer’s premises:
(A)equipment; or
(B)wiring;
(vi)Internet access service;
(vii)a paging service;
(viii)a product transferred electronically, including:
(A)music;
(B)reading material;
(C)a ring tone;
(D)software; or
(E)video;
(ix)a radio and television audio and video programming service:
(A)regardless of the medium; and
(B)including:
(I)furnishing conveyance, routing, or transmission of a television audio and video programming service by a programming service provider;
(II)cable service as defined in 47 U.S.C. Sec. 522(6); or
(III)audio and video programming services delivered by a commercial mobile radio service provider as defined in 47 C.F.R. Sec. 20.3;
(x)a value-added nonvoice data service; or
(xi)tangible personal property.
(142)
(a)”Telecommunications service provider” means a person that:
(i)owns, controls, operates, or manages a telecommunications service; and
(ii)engages in an activity described in Subsection (142)(a)(i) for the shared use with or resale to any person of the telecommunications service.
(b)A person described in Subsection (142)(a) is a telecommunications service provider whether or not the Public Service Commission of Utah regulates:
(i)that person; or
(ii)the telecommunications service that the person owns, controls, operates, or manages.
(143)
(a)”Telecommunications switching or routing equipment, machinery, or software” means an item listed in Subsection (143)(b) if that item is purchased or leased primarily for switching or routing:
(i)an ancillary service;
(ii)data communications;
(iii)voice communications; or
(iv)telecommunications service.
(b)The following apply to Subsection (143)(a):
(i)a bridge;
(ii)a computer;
(iii)a cross connect;
(iv)a modem;
(v)a multiplexer;
(vi)plug in circuitry;
(vii)a router;
(viii)software;
(ix)a switch; or
(x)equipment, machinery, or software that functions similarly to an item listed in Subsections (143)(b)(i) through (ix) as determined by the commission by rule made in accordance with Subsection (143)(c).
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes equipment, machinery, or software that functions similarly to an item listed in Subsections (143)(b)(i) through (ix).
(144)
(a)”Telecommunications transmission equipment, machinery, or software” means an item listed in Subsection (144)(b) if that item is purchased or leased primarily for sending, receiving, or transporting:
(i)an ancillary service;
(ii)data communications;
(iii)voice communications; or
(iv)telecommunications service.
(b)The following apply to Subsection (144)(a):
(i)an amplifier;
(ii)a cable;
(iii)a closure;
(iv)a conduit;
(v)a controller;
(vi)a duplexer;
(vii)a filter;
(viii)an input device;
(ix)an input/output device;
(x)an insulator;
(xi)microwave machinery or equipment;
(xii)an oscillator;
(xiii)an output device;
(xiv)a pedestal;
(xv)a power converter;
(xvi)a power supply;
(xvii)a radio channel;
(xviii)a radio receiver;
(xix)a radio transmitter;
(xx)a repeater;
(xxi)software;
(xxii)a terminal;
(xxiii)a timing unit;
(xxiv)a transformer;
(xxv)a wire; or
(xxvi)equipment, machinery, or software that functions similarly to an item listed in Subsections (144)(b)(i) through (xxv) as determined by the commission by rule made in accordance with Subsection (144)(c).
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define what constitutes equipment, machinery, or software that functions similarly to an item listed in Subsections (144)(b)(i) through (xxv).
(145)
(a)”Textbook for a higher education course” means a textbook or other printed material that is required for a course:
(i)offered by an institution of higher education; and
(ii)that the purchaser of the textbook or other printed material attends or will attend.
(b)”Textbook for a higher education course” includes a textbook in electronic format.
(146)”Tobacco” means:
(a)a cigarette;
(b)a cigar;
(c)chewing tobacco;
(d)pipe tobacco; or
(e)any other item that contains tobacco.
(147)”Unassisted amusement device” means an amusement device, skill device, or ride device that is started and stopped by the purchaser or renter of the right to use or operate the amusement device, skill device, or ride device.
(148)
(a)”Use” means the exercise of any right or power over tangible personal property, a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the ownership or the leasing of that tangible personal property, product transferred electronically, or service.
(b)”Use” does not include the sale, display, demonstration, or trial of tangible personal property, a product transferred electronically, or a service in the regular course of business and held for resale.
(149)”Value-added nonvoice data service” means a service:
(a)that otherwise meets the definition of a telecommunications service except that a computer processing application is used to act primarily for a purpose other than conveyance, routing, or transmission; and
(b)with respect to which a computer processing application is used to act on data or information:
(i)code;
(ii)content;
(iii)form; or
(iv)protocol.
(150)
(a)Subject to Subsection (150)(b), “vehicle” means the following that are required to be titled, registered, or titled and registered:
(i)an aircraft as defined in Section 72-10-102;
(ii)a vehicle as defined in Section 41-1a-102;
(iii)an off-highway vehicle as defined in Section 41-22-2; or
(iv)a vessel as defined in Section 41-1a-102.
(b)For purposes of Subsection 59-12-104(33) only, “vehicle” includes:
(i)a vehicle described in Subsection (150)(a); or
(ii)
(A)a locomotive;
(B)a freight car;
(C)railroad work equipment; or
(D)other railroad rolling stock.
(151)”Vehicle dealer” means a person engaged in the business of buying, selling, or exchanging a vehicle as defined in Subsection (150).
(152)
(a)”Vertical service” means an ancillary service that:
(i)is offered in connection with one or more telecommunications services; and
(ii)offers an advanced calling feature that allows a customer to:
(A)identify a caller; and
(B)manage multiple calls and call connections.
(b)”Vertical service” includes an ancillary service that allows a customer to manage a conference bridging service.
(153)
(a)”Voice mail service” means an ancillary service that enables a customer to receive, send, or store a recorded message.
(b)”Voice mail service” does not include a vertical service that a customer is required to have in order to utilize a voice mail service.
(154)
(a)”Waste energy facility” means a facility that generates electricity:
(i)using as the primary source of energy waste materials that would be placed in a landfill or refuse pit if it were not used to generate electricity, including:
(A)tires;
(B)waste coal;
(C)oil shale; or
(D)municipal solid waste; and
(ii)in amounts greater than actually required for the operation of the facility.
(b)”Waste energy facility” does not include a facility that incinerates:
(i)hospital waste as defined in 40 C.F.R. 60.51c; or
(ii)medical/infectious waste as defined in 40 C.F.R. 60.51c.
(155)”Watercraft” means a vessel as defined in Section 73-18-2.
(156)”Wind energy” means wind used as the sole source of energy to produce electricity.
(157)”ZIP Code” means a Zoning Improvement Plan Code assigned to a geographic location by the United States Postal Service.

Amended by Chapter 274, 2024 General Session

59-12-102.3 Authority to enter into agreement -- Delegates.
(1) The commission may apply to the governing board for the state to become a party to the agreement.
(2) If the state becomes a party to the agreement, the commission may:
(a) establish standards for certification of a:
(i) certified automated system; and
(ii) certified service provider;
(b) act jointly with other states that are parties to the agreement to establish performance standards for multistate sellers; and
(c) take other actions reasonably required to implement provisions of the agreement:
(i) if those actions are not in conflict with statute; and
(ii) subject to Subsection (2)(c)(i), including:
(A) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, adopting administrative rules; and
(B) in furtherance of the agreement, jointly procuring goods or services with other states that are parties to the agreement.
(3) Subject to Subsection (4), delegates shall be appointed to the governing board of the agreement to:
(a) assist in implementing the provisions of the agreement; and
(b) address other matters as determined by the governing board.
(4) Delegates shall be appointed as follows:
(a) two delegates shall be legislators appointed by mutual consent of the speaker of the House of Representatives and the president of the Senate; and
(b) two delegates shall be appointed by the governor, at least one of whom shall be from the commission.

Amended by Chapter 285, 2011 General Session

59-12-103 Sales and use tax base -- Rates -- Effective dates -- Use of sales and use tax revenue.
(1)A tax is imposed on the purchaser as provided in this part on the purchase price or sales price for amounts paid or charged for the following transactions:
(a)retail sales of tangible personal property made within the state;
(b)amounts paid for:
(i)telecommunications service, other than mobile telecommunications service, that originates and terminates within the boundaries of this state;
(ii)mobile telecommunications service that originates and terminates within the boundaries of one state only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii)an ancillary service associated with a:
(A)telecommunications service described in Subsection (1)(b)(i); or
(B)mobile telecommunications service described in Subsection (1)(b)(ii);
(c)sales of the following for commercial use:
(i)gas;
(ii)electricity;
(iii)heat;
(iv)coal;
(v)fuel oil; or
(vi)other fuels;
(d)sales of the following for residential use:
(i)gas;
(ii)electricity;
(iii)heat;
(iv)coal;
(v)fuel oil; or
(vi)other fuels;
(e)sales of prepared food;
(f)except as provided in Section 59-12-104, amounts paid or charged as admission or user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
(g)amounts paid or charged for services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
(i)the tangible personal property; and
(ii)parts used in the repairs or renovations of the tangible personal property described in Subsection (1)(g)(i), regardless of whether:
(A)any parts are actually used in the repairs or renovations of that tangible personal property; or
(B)the particular parts used in the repairs or renovations of that tangible personal property are exempt from a tax under this chapter;
(h)except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted cleaning or washing of tangible personal property;
(i)amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer court accommodations and services;
(j)amounts paid or charged for laundry or dry cleaning services;
(k)amounts paid or charged for leases or rentals of tangible personal property if within this state the tangible personal property is:
(i)stored;
(ii)used; or
(iii)otherwise consumed;
(l)amounts paid or charged for tangible personal property if within this state the tangible personal property is:
(i)stored;
(ii)used; or
(iii)consumed;
(m)amounts paid or charged for a sale:
(i)
(A)of a product transferred electronically; or
(B)of a repair or renovation of a product transferred electronically; and
(ii)regardless of whether the sale provides:
(A)a right of permanent use of the product; or
(B)a right to use the product that is less than a permanent use, including a right:
(I)for a definite or specified length of time; and
(II)that terminates upon the occurrence of a condition; and
(n)sales of leased tangible personal property from the lessor to the lessee made in the state.
(2)
(a)Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are imposed on a transaction described in Subsection (1) equal to the sum of:
(i)a state tax imposed on the transaction at a tax rate equal to the sum of:
(A)4.70% plus the rate specified in Subsection (11)(a); and
(B)
(I)the tax rate the state imposes in accordance with Part 18, Additional State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional State Sales and Use Tax Act; and
(II)the tax rate the state imposes in accordance with Part 20, Supplemental State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii)a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part.
(b)Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to the sum of:
(i)a state tax imposed on the transaction at a tax rate of 2%; and
(ii)a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part.
(c)Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed on amounts paid or charged for food and food ingredients equal to the sum of:
(i)a state tax imposed on the amounts paid or charged for food and food ingredients at a tax rate of 1.75%; and
(ii)a local tax equal to the sum of the tax rates a county, city, or town imposes on the amounts paid or charged for food and food ingredients under this chapter other than this part.
(d)Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at a rate of 4.85%.
(e)
(i)
(A)If a shared vehicle owner certifies to the commission, on a form prescribed by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a shared vehicle driver, or a shared vehicle owner.
(B)A shared vehicle owner’s certification described in Subsection (2)(e)(i)(A) is required once during the time that the shared vehicle owner owns the shared vehicle.
(C)The commission shall verify that a shared vehicle is an individual-owned shared vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the purchase of the shared vehicle.
(D)The exception under Subsection (2)(e)(i)(A) applies to a certified individual-owned shared vehicle shared through a car-sharing program even if non-certified shared vehicles are also available to be shared through the same car-sharing program.
(ii)A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
(iii)
(A)A car-sharing program may rely in good faith on a shared vehicle owner’s representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i).
(B)If a car-sharing program relies in good faith on a shared vehicle owner’s representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
(iv)If all shared vehicles shared through a car-sharing program are certified as described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
(v)A car-sharing program is not required to list or otherwise identify an individual-owned shared vehicle on a return or an attachment to a return.
(vi)A car-sharing program shall:
(A)retain tax information for each car-sharing program transaction; and
(B)provide the information described in Subsection (2)(e)(vi)(A) to the commission at the commission’s request.
(f)
(i)For a bundled transaction that is attributable to food and food ingredients and tangible personal property other than food and food ingredients, a state tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
(A)a state tax imposed on the entire bundled transaction equal to the sum of:
(I)the tax rate described in Subsection (2)(a)(i)(A); and
(II)
(Aa)the tax rate the state imposes in accordance with Part 18, Additional State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional State Sales and Use Tax Act; and
(Bb)the tax rate the state imposes in accordance with Part 20, Supplemental State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B)a local tax imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii).
(ii)If an optional computer software maintenance contract is a bundled transaction that consists of taxable and nontaxable products that are not separately itemized on an invoice or similar billing document, the purchase of the optional computer software maintenance contract is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii)Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled transaction described in Subsection (2)(f)(i) or (ii):
(A)if the sales price of the bundled transaction is attributable to tangible personal property, a product, or a service that is subject to taxation under this chapter and tangible personal property, a product, or service that is not subject to taxation under this chapter, the entire bundled transaction is subject to taxation under this chapter unless:
(I)the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is not subject to taxation under this chapter from the books and records the seller keeps in the seller’s regular course of business; or
(II)state or federal law provides otherwise; or
(B)if the sales price of a bundled transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire bundled transaction is subject to taxation under this chapter at the higher tax rate unless:
(I)the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller’s regular course of business; or
(II)state or federal law provides otherwise.
(iv)For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the seller’s regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes.
(g)
(i)Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental of tangible personal property, other property, a product, or a service that is not subject to taxation under this chapter, the entire transaction is subject to taxation under this chapter unless the seller, at the time of the transaction:
(A)separately states the portion of the transaction that is not subject to taxation under this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B)is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller’s regular course of business, the portion of the transaction that is not subject to taxation under this chapter.
(ii)A purchaser and a seller may correct the taxability of a transaction if:
(A)after the transaction occurs, the purchaser and the seller discover that the portion of the transaction that is not subject to taxation under this chapter was not separately stated on an invoice, bill of sale, or similar document provided to the purchaser because of an error or ignorance of the law; and
(B)the seller is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller’s regular course of business, the portion of the transaction that is not subject to taxation under this chapter.
(iii)For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps in the seller’s regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes.
(h)
(i)If the sales price of a transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate unless the seller, at the time of the transaction:
(A)separately states the items subject to taxation under this chapter at each of the different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B)is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller’s regular course of business.
(ii)For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the seller’s regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes.
(i)Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate imposed under the following shall take effect on the first day of a calendar quarter:
(i)Subsection (2)(a)(i)(A);
(ii)Subsection (2)(b)(i);
(iii)Subsection (2)(c)(i); or
(iv)Subsection (2)(f)(i)(A)(I).
(j)
(i)A tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the tax rate increase if the billing period for the transaction begins before the effective date of a tax rate increase imposed under:
(A)Subsection (2)(a)(i)(A);
(B)Subsection (2)(b)(i);
(C)Subsection (2)(c)(i); or
(D)Subsection (2)(f)(i)(A)(I).
(ii)The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under:
(A)Subsection (2)(a)(i)(A);
(B)Subsection (2)(b)(i);
(C)Subsection (2)(c)(i); or
(D)Subsection (2)(f)(i)(A)(I).
(k)
(i)For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax rate takes effect:
(A)on the first day of a calendar quarter; and
(B)beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii)Subsection (2)(k)(i) applies to the tax rates described in the following:
(A)Subsection (2)(a)(i)(A);
(B)Subsection (2)(b)(i);
(C)Subsection (2)(c)(i); or
(D)Subsection (2)(f)(i)(A)(I).
(iii)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term “catalogue sale.”
(l)
(i)For a location described in Subsection (2)(l)(ii), the commission shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
(ii)Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil, or other fuel is furnished through a single meter for two or more of the following uses:
(A)a commercial use;
(B)an industrial use; or
(C)a residential use.
(3)
(a)The following state taxes shall be deposited into the General Fund:
(i)the tax imposed by Subsection (2)(a)(i)(A);
(ii)the tax imposed by Subsection (2)(b)(i);
(iii)the tax imposed by Subsection (2)(c)(i); and
(iv)the tax imposed by Subsection (2)(f)(i)(A)(I).
(b)The following local taxes shall be distributed to a county, city, or town as provided in this chapter:
(i)the tax imposed by Subsection (2)(a)(ii);
(ii)the tax imposed by Subsection (2)(b)(ii);
(iii)the tax imposed by Subsection (2)(c)(ii); and
(iv)the tax imposed by Subsection (2)(f)(i)(B).
(c)The state tax imposed by Subsection (2)(d) shall be deposited into the General Fund.
(4)
(a)Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b) through (g):
(i)for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A)by a 1/16% tax rate on the transactions described in Subsection (1); and
(B)for the fiscal year; or
(ii)$17,500,000.
(b)
(i)For a fiscal year beginning on or after July 1, 2003, 14% of the amount described in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to the Division of Wildlife Resources to:
(A)implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species; or
(B)award grants, up to the amount authorized by the Legislature in an appropriations act, to political subdivisions of the state to implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species.
(ii)Money transferred to the Division of Wildlife Resources under Subsection (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other person to list or attempt to have listed a species as threatened or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
(iii)At the end of each fiscal year:
(A)50% of any unexpended designated sales and use tax revenue shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24;
(B)25% of any unexpended designated sales and use tax revenue shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
(C)25% of any unexpended designated sales and use tax revenue shall lapse to the Drinking Water Loan Program Subaccount created in Section 73-10c-5.
(c)For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund created in Section 4-18-106.
(d)
(i)For a fiscal year beginning on or after July 1, 2003, 1% of the amount described in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water rights.
(ii)At the end of each fiscal year:
(A)50% of any unexpended designated sales and use tax revenue shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24;
(B)25% of any unexpended designated sales and use tax revenue shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
(C)25% of any unexpended designated sales and use tax revenue shall lapse to the Drinking Water Loan Program Subaccount created in Section 73-10c-5.
(e)
(i)For a fiscal year beginning on or after July 1, 2003, 41% of the amount described in Subsection (4)(a) shall be deposited into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
(ii)In addition to the uses allowed of the Water Resources Conservation and Development Fund under Section 73-10-24, the Water Resources Conservation and Development Fund may also be used to:
(A)conduct hydrologic and geotechnical investigations by the Division of Water Resources in a cooperative effort with other state, federal, or local entities, for the purpose of quantifying surface and ground water resources and describing the hydrologic systems of an area in sufficient detail so as to enable local and state resource managers to plan for and accommodate growth in water use without jeopardizing the resource;
(B)fund state required dam safety improvements; and
(C)protect the state’s interest in interstate water compact allocations, including the hiring of technical and legal staff.
(f)For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
(g)For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to:
(i)provide for the installation and repair of collection, treatment, storage, and distribution facilities for any public water system, as defined in Section 19-4-102;
(ii)develop underground sources of water, including springs and wells; and
(iii)develop surface water sources.
(5)
(a)Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 2006, the difference between the following amounts shall be expended as provided in this Subsection (5), if that difference is greater than $1:
(i)for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii)$17,500,000.
(b)
(i)The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A)transferred each fiscal year to the Department of Natural Resources as designated sales and use tax revenue; and
(B)expended by the Department of Natural Resources for watershed rehabilitation or restoration.
(ii)At the end of each fiscal year, 100% of any unexpended designated sales and use tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24.
(c)
(i)After making the transfer required by Subsection (5)(b)(i), $150,000 of the remaining difference described in Subsection (5)(a) shall be:
(A)transferred each fiscal year to the Division of Water Resources as designated sales and use tax revenue; and
(B)expended by the Division of Water Resources for cloud-seeding projects authorized by Title 73, Chapter 15, Modification of Weather.
(ii)At the end of each fiscal year, 100% of any unexpended designated sales and use tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24.
(d)After making the transfers required by Subsections (5)(b) and (c), 85% of the remaining difference described in Subsection (5)(a) shall be deposited into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources for:
(i)preconstruction costs:
(A)as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter 26, Bear River Development Act; and
(B)as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii)the cost of employing a civil engineer to oversee any project authorized by Title 73, Chapter 26, Bear River Development Act;
(iii)the cost of employing a civil engineer to oversee the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv)other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e)After making the transfers required by Subsections (5)(b) and (c), 15% of the remaining difference described in Subsection (5)(a) shall be deposited each year into the Water Rights Restricted Account created by Section 73-2-1.6.
(6)Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection (1) for the fiscal year.
(7)
(a)Notwithstanding Subsection (3)(a) and subject to Subsections (7)(b), (c), and (d), for a fiscal year beginning on or after July 1, 2023, the commission shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
(i)the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii)the tax imposed by Subsection (2)(b)(i);
(iii)the tax imposed by Subsection (2)(c)(i); and
(iv)the tax imposed by Subsection (2)(f)(i)(A)(I).
(b)
(i)For a fiscal year beginning on or after July 1, 2024, the commission shall annually reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by an amount equal to .44% of the revenue collected from the following sales and use taxes:
(A)the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(B)the tax imposed by Subsection (2)(b)(i);
(C)the tax imposed by Subsection (2)(c)(i); and
(D)the tax imposed by Subsection (2)(f)(i)(A)(I).
(ii)The commission shall annually deposit the amount described in Subsection (7)(b)(i) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124.
(c)
(i)Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1, 2023, the commission shall annually reduce the deposit into the Transportation Investment Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
(A)the amount of revenue generated in the current fiscal year by the portion of taxes listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iv);
(B)the amount of revenue generated in the current fiscal year by registration fees designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund of 2005; and
(C)revenue transferred by the Division of Finance to the Transportation Investment Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year.
(ii)The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a given fiscal year.
(iii)The commission shall annually deposit the amount described in Subsection (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 72-2-124(11).
(d)
(i)For a fiscal year beginning on or after July 1, 2024, the commission shall annually reduce the deposit into the Transportation Investment Fund of 2005 under this Subsection (7) by an amount that is equal to 1% of the revenue collected from the following sales and use taxes:
(A)the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(B)the tax imposed by Subsection (2)(b)(i);
(C)the tax imposed by Subsection (2)(c)(i); and
(D)the tax imposed by Subsection (2)(f)(i)(A)(I).
(ii)The commission shall annually deposit the amount described in Subsection (7)(d)(i) into the Commuter Rail Subaccount created in Section 72-2-124.
(8)
(a)Notwithstanding Subsection (3)(a), in addition to the amounts deposited under Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or after July 1, 2018, the commission shall annually deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) in an amount equal to 3.68% of the revenue collected from the following taxes:
(i)the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii)the tax imposed by Subsection (2)(b)(i);
(iii)the tax imposed by Subsection (2)(c)(i); and
(iv)the tax imposed by Subsection (2)(f)(i)(A)(I).
(b)For a fiscal year beginning on or after July 1, 2019, the commission shall annually reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale or use in this state that exceeds 29.4 cents per gallon.
(c)The commission shall annually deposit the amount described in Subsection (8)(b) into the Transit Transportation Investment Fund created in Section 72-2-124.
(9)Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
(10)Notwithstanding Subsection (3)(a), beginning the second fiscal year after the fiscal year during which the commission receives notice under Section 63N-2-510 that construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the commission shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in Section 63N-2-512.
(11)
(a)The rate specified in this subsection is 0.15%.
(b)Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) into the Medicaid ACA Fund created in Section 26B-1-315.
(12)Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year 2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit solely for use of the Search and Rescue Financial Assistance Program created in, and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
(13)
(a)For each fiscal year beginning with fiscal year 2020-21, the commission shall annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund of 2005 under Subsections (7) and (8) to the General Fund.
(b)If the total revenue deposited into the Transportation Investment Fund of 2005 under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall transfer the total revenue deposited into the Transportation Investment Fund of 2005 under Subsections (7) and (8) during the fiscal year to the General Fund.
(14)Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610, beginning the first day of the calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established, the commission, at least annually, shall transfer an amount equal to 15% of the sales and use tax increment within an established sales and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation Investment Fund created in Section 72-2-124.
(15)Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection (3)(a) equal to 1% of the revenue collected from the following sales and use taxes:
(a)the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(b)the tax imposed by Subsection (2)(b)(i);
(c)the tax imposed by Subsection (2)(c)(i); and
(d)the tax imposed by Subsection (2)(f)(i)(A)(I).
(16)Notwithstanding Subsection (3)(a), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within the district sales tax area, as defined in Section 11-70-101.
(17)
(a)As used in this Subsection (17):
(i)”Additional land” means point of the mountain state land described in Subsection 11-59-102(6)(b) that the point of the mountain authority acquires after the point of the mountain authority provides the commission a map under Subsection (17)(c).
(ii)”Point of the mountain authority” means the Point of the Mountain State Land Authority, created in Section 11-59-201.
(iii)”Point of the mountain state land” means the same as that term is defined in Section 11-59-102.
(b)Notwithstanding Subsection (3)(a), the commission shall distribute to the point of the mountain authority 50% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring on the point of the mountain state land.
(c)The distribution under Subsection (17)(b) shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map that:
(i)accurately describes the point of the mountain state land; and
(ii)the point of the mountain authority certifies as accurate.
(d)A distribution under Subsection (17)(b) with respect to additional land shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map of point of the mountain state land that:
(i)accurately describes the point of the mountain state land, including the additional land; and
(ii)the point of the mountain authority certifies as accurate.
(e)
(i)Upon the payment in full of bonds secured by the sales and use tax revenue distributed to the point of the mountain authority under Subsection (17)(b), the point of the mountain authority shall immediately notify the commission in writing that the bonds are paid in full.
(ii)The commission shall discontinue distributions of sales and use tax revenue under Subsection (17)(b) at the beginning of the calendar quarter that begins at least 90 days after the date that the commission receives the written notice under Subsection (17)(e)(i).

Amended by Chapter 88, 2024 General Session
Amended by Chapter 501, 2024 General Session

59-12-104 Exemptions.
          Exemptions from the taxes imposed by this chapter are as follows:
(1)sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax under Chapter 13, Motor and Special Fuel Tax Act;
(2)subject to Section 59-12-104.6, sales to the state, its institutions, and its political subdivisions; however, this exemption does not apply to sales of:
(a)construction materials except:
(i)construction materials purchased by or on behalf of institutions of the public education system as defined in Utah Constitution, Article X, Section 2, provided the construction materials are clearly identified and segregated and installed or converted to real property which is owned by institutions of the public education system; and
(ii)construction materials purchased by the state, its institutions, or its political subdivisions which are installed or converted to real property by employees of the state, its institutions, or its political subdivisions; or
(b)tangible personal property in connection with the construction, operation, maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities providing additional project capacity, as defined in Section 11-13-103;
(3)
(a)sales of an item described in Subsection (3)(b) from a vending machine if:
(i)the proceeds of each sale do not exceed $1; and
(ii)the seller or operator of the vending machine reports an amount equal to 150% of the cost of the item described in Subsection (3)(b) as goods consumed; and
(b)Subsection (3)(a) applies to:
(i)food and food ingredients; or
(ii)prepared food;
(4)
(a)sales of the following to a commercial airline carrier for in-flight consumption:
(i)alcoholic beverages;
(ii)food and food ingredients; or
(iii)prepared food;
(b)sales of tangible personal property or a product transferred electronically:
(i)to a passenger;
(ii)by a commercial airline carrier; and
(iii)during a flight for in-flight consumption or in-flight use by the passenger; or
(c)services related to Subsection (4)(a) or (b);
(5)sales of parts and equipment for installation in an aircraft operated by a common carrier in interstate or foreign commerce;
(6)sales of commercials, motion picture films, prerecorded audio program tapes or records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture exhibitor, distributor, or commercial television or radio broadcaster;
(7)
(a)except as provided in Subsection (85) and subject to Subsection (7)(b), sales of cleaning or washing of tangible personal property if the cleaning or washing of the tangible personal property is not assisted cleaning or washing of tangible personal property;
(b)if a seller that sells at the same business location assisted cleaning or washing of tangible personal property and cleaning or washing of tangible personal property that is not assisted cleaning or washing of tangible personal property, the exemption described in Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning or washing of the tangible personal property; and
(c)for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i)governing the circumstances under which sales are at the same business location; and
(ii)establishing the procedures and requirements for a seller to separately account for sales of assisted cleaning or washing of tangible personal property;
(8)sales made to or by religious or charitable institutions in the conduct of their regular religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are fulfilled;
(9)sales of a vehicle of a type required to be registered under the motor vehicle laws of this state if:
(a)the sale is not from the vehicle’s lessor to the vehicle’s lessee;
(b)the vehicle is not registered in this state; and
(c)
(i)the vehicle is not used in this state; or
(ii)the vehicle is used in this state:
(A)if the vehicle is not used to conduct business, for a time period that does not exceed the longer of:
(I)30 days in any calendar year; or
(II)the time period necessary to transport the vehicle to the borders of this state; or
(B)if the vehicle is used to conduct business, for the time period necessary to transport the vehicle to the borders of this state;
(10)
(a)amounts paid for an item described in Subsection (10)(b) if:
(i)the item is intended for human use; and
(ii)
(A)a prescription was issued for the item; or
(B)the item was purchased by a hospital or other medical facility; and
(b)
(i)Subsection (10)(a) applies to:
(A)a drug;
(B)a syringe; or
(C)a stoma supply; and
(ii)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the terms:
(A)”syringe”; or
(B)”stoma supply”;
(11)purchases or leases exempt under Section 19-12-201;
(12)
(a)sales of an item described in Subsection (12)(c) served by:
(i)the following if the item described in Subsection (12)(c) is not available to the general public:
(A)a church; or
(B)a charitable institution; or
(ii)an institution of higher education if:
(A)the item described in Subsection (12)(c) is not available to the general public; or
(B)the item described in Subsection (12)(c) is prepaid as part of a student meal plan offered by the institution of higher education; or
(b)sales of an item described in Subsection (12)(c) provided for a patient by:
(i)a medical facility; or
(ii)a nursing facility; and
(c)Subsections (12)(a) and (b) apply to:
(i)food and food ingredients;
(ii)prepared food; or
(iii)alcoholic beverages;
(13)
(a)except as provided in Subsection (13)(b), the sale of tangible personal property or a product transferred electronically by a person:
(i)regardless of the number of transactions involving the sale of that tangible personal property or product transferred electronically by that person; and
(ii)not regularly engaged in the business of selling that type of tangible personal property or product transferred electronically;
(b)this Subsection (13) does not apply if:
(i)the sale is one of a series of sales of a character to indicate that the person is regularly engaged in the business of selling that type of tangible personal property or product transferred electronically;
(ii)the person holds that person out as regularly engaged in the business of selling that type of tangible personal property or product transferred electronically;
(iii)the person sells an item of tangible personal property or product transferred electronically that the person purchased as a sale that is exempt under Subsection (25); or
(iv)the sale is of a vehicle or vessel required to be titled or registered under the laws of this state in which case the tax is based upon:
(A)the bill of sale, lease agreement, or other written evidence of value of the vehicle or vessel being sold; or
(B)in the absence of a bill of sale, lease agreement, or other written evidence of value, the fair market value of the vehicle or vessel being sold at the time of the sale as determined by the commission; and
(c)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules establishing the circumstances under which:
(i)a person is regularly engaged in the business of selling a type of tangible personal property or product transferred electronically;
(ii)a sale of tangible personal property or a product transferred electronically is one of a series of sales of a character to indicate that a person is regularly engaged in the business of selling that type of tangible personal property or product transferred electronically; or
(iii)a person holds that person out as regularly engaged in the business of selling a type of tangible personal property or product transferred electronically;
(14)amounts paid or charged for a purchase or lease of machinery, equipment, normal operating repair or replacement parts, or materials, except for office equipment or office supplies, by:
(a)a manufacturing facility that:
(i)is located in the state; and
(ii)uses or consumes the machinery, equipment, normal operating repair or replacement parts, or materials:
(A)in the manufacturing process to manufacture an item sold as tangible personal property, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
(B)for a scrap recycler, to process an item sold as tangible personal property, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b)an establishment, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(i)is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the 2002 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(ii)is located in the state; and
(iii)uses or consumes the machinery, equipment, normal operating repair or replacement parts, or materials in:
(A)the production process to produce an item sold as tangible personal property, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(B)research and development, as the commission may define that phrase in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(C)transporting, storing, or managing tailings, overburden, or similar waste materials produced from mining;
(D)developing or maintaining a road, tunnel, excavation, or similar feature used in mining; or
(E)preventing, controlling, or reducing dust or other pollutants from mining; or
(c)an establishment, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(i)is described in NAICS Code 518112, Web Search Portals, of the 2002 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(ii)is located in the state; and
(iii)uses or consumes the machinery, equipment, normal operating repair or replacement parts, or materials in the operation of the web search portal;
(15)
(a)sales of the following if the requirements of Subsection (15)(b) are met:
(i)tooling;
(ii)special tooling;
(iii)support equipment;
(iv)special test equipment; or
(v)parts used in the repairs or renovations of tooling or equipment described in Subsections (15)(a)(i) through (iv); and
(b)sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
(i)the tooling, equipment, or parts are used or consumed exclusively in the performance of any aerospace or electronics industry contract with the United States government or any subcontract under that contract; and
(ii)under the terms of the contract or subcontract described in Subsection (15)(b)(i), title to the tooling, equipment, or parts is vested in the United States government as evidenced by:
(A)a government identification tag placed on the tooling, equipment, or parts; or
(B)listing on a government-approved property record if placing a government identification tag on the tooling, equipment, or parts is impractical;
(16)sales of newspapers or newspaper subscriptions;
(17)
(a)except as provided in Subsection (17)(b), tangible personal property or a product transferred electronically traded in as full or part payment of the purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
(i)the bill of sale or other written evidence of value of the vehicle being sold and the vehicle being traded in; or
(ii)in the absence of a bill of sale or other written evidence of value, the then existing fair market value of the vehicle being sold and the vehicle being traded in, as determined by the commission; and
(b)Subsection (17)(a) does not apply to the following items of tangible personal property or products transferred electronically traded in as full or part payment of the purchase price:
(i)money;
(ii)electricity;
(iii)water;
(iv)gas; or
(v)steam;
(18)
(a)
(i)except as provided in Subsection (18)(b), sales of tangible personal property or a product transferred electronically used or consumed primarily and directly in farming operations, regardless of whether the tangible personal property or product transferred electronically:
(A)becomes part of real estate; or
(B)is installed by a farmer, contractor, or subcontractor; or
(ii)sales of parts used in the repairs or renovations of tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically is exempt under Subsection (18)(a)(i); and
(b)amounts paid or charged for the following are subject to the taxes imposed by this chapter:
(i)
(A)subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or supplies if used in a manner that is incidental to farming; and
(B)tangible personal property that is considered to be used in a manner that is incidental to farming includes:
(I)hand tools; or
(II)maintenance and janitorial equipment and supplies;
(ii)
(A)subject to Subsection (18)(b)(ii)(B), tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically is used in an activity other than farming; and
(B)tangible personal property or a product transferred electronically that is considered to be used in an activity other than farming includes:
(I)office equipment and supplies; or
(II)equipment and supplies used in:
(Aa)the sale or distribution of farm products;
(Bb)research; or
(Cc)transportation; or
(iii)a vehicle required to be registered by the laws of this state during the period ending two years after the date of the vehicle’s purchase;
(19)sales of hay;
(20)exclusive sale during the harvest season of seasonal crops, seedling plants, or garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or garden, farm, or other agricultural produce is sold by:
(a)the producer of the seasonal crops, seedling plants, or garden, farm, or other agricultural produce;
(b)an employee of the producer described in Subsection (20)(a); or
(c)a member of the immediate family of the producer described in Subsection (20)(a);
(21)purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
(22)sales of nonreturnable containers, nonreturnable labels, nonreturnable bags, nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler, or retailer for use in packaging tangible personal property to be sold by that manufacturer, processor, wholesaler, or retailer;
(23)a product stored in the state for resale;
(24)
(a)purchases of a product if:
(i)the product is:
(A)purchased outside of this state;
(B)brought into this state:
(I)at any time after the purchase described in Subsection (24)(a)(i)(A); and
(II)by a nonresident person who is not living or working in this state at the time of the purchase;
(C)used for the personal use or enjoyment of the nonresident person described in Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
(D)not used in conducting business in this state; and
(ii)for:
(A)a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of the product for a purpose for which the product is designed occurs outside of this state;
(B)a boat, the boat is registered outside of this state; or
(C)a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered outside of this state;
(b)the exemption provided for in Subsection (24)(a) does not apply to:
(i)a lease or rental of a product; or
(ii)a sale of a vehicle exempt under Subsection (33); and
(c)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (24)(a), the commission may by rule define what constitutes the following:
(i)conducting business in this state if that phrase has the same meaning in this Subsection (24) as in Subsection (63);
(ii)the first use of a product if that phrase has the same meaning in this Subsection (24) as in Subsection (63); or
(iii)a purpose for which a product is designed if that phrase has the same meaning in this Subsection (24) as in Subsection (63);
(25)a product purchased for resale in the regular course of business, either in its original form or as an ingredient or component part of a manufactured or compounded product;
(26)a product upon which a sales or use tax was paid to some other state, or one of its subdivisions, except that the state shall be paid any difference between the tax paid and the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax Act;
(27)any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person for use in compounding a service taxable under the subsections;
(28)purchases made in accordance with the special supplemental nutrition program for women, infants, and children established in 42 U.S.C. Sec. 1786;
(29)sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget;
(30)sales of a boat of a type required to be registered under Title 73, Chapter 18, State Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
(a)not registered in this state; and
(b)
(i)not used in this state; or
(ii)used in this state:
(A)if the boat, boat trailer, or outboard motor is not used to conduct business, for a time period that does not exceed the longer of:
(I)30 days in any calendar year; or
(II)the time period necessary to transport the boat, boat trailer, or outboard motor to the borders of this state; or
(B)if the boat, boat trailer, or outboard motor is used to conduct business, for the time period necessary to transport the boat, boat trailer, or outboard motor to the borders of this state;
(31)sales of aircraft manufactured in Utah;
(32)amounts paid for the purchase of telecommunications service for purposes of providing telecommunications service;
(33)sales, leases, or uses of the following:
(a)a vehicle by an authorized carrier; or
(b)tangible personal property that is installed on a vehicle:
(i)sold or leased to or used by an authorized carrier; and
(ii)before the vehicle is placed in service for the first time;
(34)
(a)45% of the sales price of any new manufactured home; and
(b)100% of the sales price of any used manufactured home;
(35)sales relating to schools and fundraising sales;
(36)sales or rentals of durable medical equipment if:
(a)a person presents a prescription for the durable medical equipment; and
(b)the durable medical equipment is used for home use only;
(37)
(a)sales to a ski resort of electricity to operate a passenger ropeway as defined in Section 72-11-102; and
(b)the commission shall by rule determine the method for calculating sales exempt under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
(38)sales to a ski resort of:
(a)snowmaking equipment;
(b)ski slope grooming equipment;
(c)passenger ropeways as defined in Section 72-11-102; or
(d)parts used in the repairs or renovations of equipment or passenger ropeways described in Subsections (38)(a) through (c);
(39)subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
(40)
(a)subject to Subsection (40)(b), sales or rentals of the right to use or operate for amusement, entertainment, or recreation an unassisted amusement device as defined in Section 59-12-102;
(b)if a seller that sells or rents at the same business location the right to use or operate for amusement, entertainment, or recreation one or more unassisted amusement devices and one or more assisted amusement devices, the exemption described in Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for the assisted amusement devices; and
(c)for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(i)governing the circumstances under which sales are at the same business location; and
(ii)establishing the procedures and requirements for a seller to separately account for the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for assisted amusement devices;
(41)
(a)sales of photocopies by:
(i)a governmental entity; or
(ii)an entity within the state system of public education, including:
(A)a school; or
(B)the State Board of Education; or
(b)sales of publications by a governmental entity;
(42)amounts paid for admission to an athletic event at an institution of higher education that is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C. Sec. 1681 et seq.;
(43)
(a)sales made to or by:
(i)an area agency on aging; or
(ii)a senior citizen center owned by a county, city, or town; or
(b)sales made by a senior citizen center that contracts with an area agency on aging;
(44)sales or leases of semiconductor fabricating, processing, research, or development materials regardless of whether the semiconductor fabricating, processing, research, or development materials:
(a)actually come into contact with a semiconductor; or
(b)ultimately become incorporated into real property;
(45)an amount paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section 59-12-104.2;
(46)the lease or use of a vehicle issued a temporary sports event registration certificate in accordance with Section 41-3-306 for the event period specified on the temporary sports event registration certificate;
(47)
(a)sales or uses of electricity, if the sales or uses are made under a retail tariff adopted by the Public Service Commission only for purchase of electricity produced from a new alternative energy source built after January 1, 2016, as designated in the tariff by the Public Service Commission; and
(b)for a residential use customer only, the exemption under Subsection (47)(a) applies only to the portion of the tariff rate a customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
(48)sales or rentals of mobility enhancing equipment if a person presents a prescription for the mobility enhancing equipment;
(49)sales of water in a:
(a)pipe;
(b)conduit;
(c)ditch; or
(d)reservoir;
(50)sales of currency or coins that constitute legal tender of a state, the United States, or a foreign nation;
(51)
(a)sales of an item described in Subsection (51)(b) if the item:
(i)does not constitute legal tender of a state, the United States, or a foreign nation; and
(ii)has a gold, silver, or platinum content of 50% or more; and
(b)Subsection (51)(a) applies to a gold, silver, or platinum:
(i)ingot;
(ii)bar;
(iii)medallion; or
(iv)decorative coin;
(52)amounts paid on a sale-leaseback transaction;
(53)sales of a prosthetic device:
(a)for use on or in a human; and
(b)
(i)for which a prescription is required; or
(ii)if the prosthetic device is purchased by a hospital or other medical facility;
(54)
(a)except as provided in Subsection (54)(b), purchases, leases, or rentals of machinery or equipment by an establishment described in Subsection (54)(c) if the machinery or equipment is primarily used in the production or postproduction of the following media for commercial distribution:
(i)a motion picture;
(ii)a television program;
(iii)a movie made for television;
(iv)a music video;
(v)a commercial;
(vi)a documentary; or
(vii)a medium similar to Subsections (54)(a)(i) through (vi) as determined by the commission by administrative rule made in accordance with Subsection (54)(d); or
(b)purchases, leases, or rentals of machinery or equipment by an establishment described in Subsection (54)(c) that is used for the production or postproduction of the following are subject to the taxes imposed by this chapter:
(i)a live musical performance;
(ii)a live news program; or
(iii)a live sporting event;
(c)the following establishments listed in the 1997 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, apply to Subsections (54)(a) and (b):
(i)NAICS Code 512110; or
(ii)NAICS Code 51219; and
(d)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule:
(i)prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi); or
(ii)define:
(A)”commercial distribution”;
(B)”live musical performance”;
(C)”live news program”; or
(D)”live sporting event”;
(55)
(a)leases of seven or more years or purchases made on or after July 1, 2004, but on or before June 30, 2027, of tangible personal property that:
(i)is leased or purchased for or by a facility that:
(A)is an alternative energy electricity production facility;
(B)is located in the state; and
(C)
(I)becomes operational on or after July 1, 2004; or
(II)has its generation capacity increased by one or more megawatts on or after July 1, 2004, as a result of the use of the tangible personal property;
(ii)has an economic life of five or more years; and
(iii)is used to make the facility or the increase in capacity of the facility described in Subsection (55)(a)(i) operational up to the point of interconnection with an existing transmission grid including:
(A)a wind turbine;
(B)generating equipment;
(C)a control and monitoring system;
(D)a power line;
(E)substation equipment;
(F)lighting;
(G)fencing;
(H)pipes; or
(I)other equipment used for locating a power line or pole; and
(b)this Subsection (55) does not apply to:
(i)tangible personal property used in construction of:
(A)a new alternative energy electricity production facility; or
(B)the increase in the capacity of an alternative energy electricity production facility;
(ii)contracted services required for construction and routine maintenance activities; and
(iii)unless the tangible personal property is used or acquired for an increase in capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or acquired after:
(A)the alternative energy electricity production facility described in Subsection (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
(B)the increased capacity described in Subsection (55)(a)(i) is operational as described in Subsection (55)(a)(iii);
(56)
(a)leases of seven or more years or purchases made on or after July 1, 2004, but on or before June 30, 2027, of tangible personal property that:
(i)is leased or purchased for or by a facility that:
(A)is a waste energy production facility;
(B)is located in the state; and
(C)
(I)becomes operational on or after July 1, 2004; or
(II)has its generation capacity increased by one or more megawatts on or after July 1, 2004, as a result of the use of the tangible personal property;
(ii)has an economic life of five or more years; and
(iii)is used to make the facility or the increase in capacity of the facility described in Subsection (56)(a)(i) operational up to the point of interconnection with an existing transmission grid including:
(A)generating equipment;
(B)a control and monitoring system;
(C)a power line;
(D)substation equipment;
(E)lighting;
(F)fencing;
(G)pipes; or
(H)other equipment used for locating a power line or pole; and
(b)this Subsection (56) does not apply to:
(i)tangible personal property used in construction of:
(A)a new waste energy facility; or
(B)the increase in the capacity of a waste energy facility;
(ii)contracted services required for construction and routine maintenance activities; and
(iii)unless the tangible personal property is used or acquired for an increase in capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
(A)the waste energy facility described in Subsection (56)(a)(i) is operational as described in Subsection (56)(a)(iii); or
(B)the increased capacity described in Subsection (56)(a)(i) is operational as described in Subsection (56)(a)(iii);
(57)
(a)leases of five or more years or purchases made on or after July 1, 2004, but on or before June 30, 2027, of tangible personal property that:
(i)is leased or purchased for or by a facility that:
(A)is located in the state;
(B)produces fuel from alternative energy, including:
(I)methanol; or
(II)ethanol; and
(C)
(I)becomes operational on or after July 1, 2004; or
(II)has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as a result of the installation of the tangible personal property;
(ii)has an economic life of five or more years; and
(iii)is installed on the facility described in Subsection (57)(a)(i);
(b)this Subsection (57) does not apply to:
(i)tangible personal property used in construction of:
(A)a new facility described in Subsection (57)(a)(i); or
(B)the increase in capacity of the facility described in Subsection (57)(a)(i); or
(ii)contracted services required for construction and routine maintenance activities; and
(iii)unless the tangible personal property is used or acquired for an increase in capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
(A)the facility described in Subsection (57)(a)(i) is operational; or
(B)the increased capacity described in Subsection (57)(a)(i) is operational;
(58)
(a)subject to Subsection (58)(b), sales of tangible personal property or a product transferred electronically to a person within this state if that tangible personal property or product transferred electronically is subsequently shipped outside the state and incorporated pursuant to contract into and becomes a part of real property located outside of this state; and
(b)the exemption under Subsection (58)(a) is not allowed to the extent that the other state or political entity to which the tangible personal property is shipped imposes a sales, use, gross receipts, or other similar transaction excise tax on the transaction against which the other state or political entity allows a credit for sales and use taxes imposed by this chapter;
(59)purchases:
(a)of one or more of the following items in printed or electronic format:
(i)a list containing information that includes one or more:
(A)names; or
(B)addresses; or
(ii)a database containing information that includes one or more:
(A)names; or
(B)addresses; and
(b)used to send direct mail;
(60)redemptions or repurchases of a product by a person if that product was:
(a)delivered to a pawnbroker as part of a pawn transaction; and
(b)redeemed or repurchased within the time period established in a written agreement between the person and the pawnbroker for redeeming or repurchasing the product;
(61)
(a)purchases or leases of an item described in Subsection (61)(b) if the item:
(i)is purchased or leased by, or on behalf of, a telecommunications service provider; and
(ii)has a useful economic life of one or more years; and
(b)the following apply to Subsection (61)(a):
(i)telecommunications enabling or facilitating equipment, machinery, or software;
(ii)telecommunications equipment, machinery, or software required for 911 service;
(iii)telecommunications maintenance or repair equipment, machinery, or software;
(iv)telecommunications switching or routing equipment, machinery, or software; or
(v)telecommunications transmission equipment, machinery, or software;
(62)
(a)beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible personal property or a product transferred electronically that are used in the research and development of alternative energy technology; and
(b)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may, for purposes of Subsection (62)(a), make rules defining what constitutes purchases of tangible personal property or a product transferred electronically that are used in the research and development of alternative energy technology;
(63)
(a)purchases of tangible personal property or a product transferred electronically if:
(i)the tangible personal property or product transferred electronically is:
(A)purchased outside of this state;
(B)brought into this state at any time after the purchase described in Subsection (63)(a)(i)(A); and
(C)used in conducting business in this state; and
(ii)for:
(A)tangible personal property or a product transferred electronically other than the tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property for a purpose for which the property is designed occurs outside of this state; or
(B)a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered outside of this state and not required to be registered in this state under Section 41-1a-202 or 73-18-9 based on residency;
(b)the exemption provided for in Subsection (63)(a) does not apply to:
(i)a lease or rental of tangible personal property or a product transferred electronically; or
(ii)a sale of a vehicle exempt under Subsection (33); and
(c)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for purposes of Subsection (63)(a), the commission may by rule define what constitutes the following:
(i)conducting business in this state if that phrase has the same meaning in this Subsection (63) as in Subsection (24);
(ii)the first use of tangible personal property or a product transferred electronically if that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
(iii)a purpose for which tangible personal property or a product transferred electronically is designed if that phrase has the same meaning in this Subsection (63) as in Subsection (24);
(64)sales of disposable home medical equipment or supplies if:
(a)a person presents a prescription for the disposable home medical equipment or supplies;
(b)the disposable home medical equipment or supplies are used exclusively by the person to whom the prescription described in Subsection (64)(a) is issued; and
(c)the disposable home medical equipment and supplies are listed as eligible for payment under:
(i)Title XVIII, federal Social Security Act; or
(ii)the state plan for medical assistance under Title XIX, federal Social Security Act;
(65)sales:
(a)to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District Act; or
(b)of tangible personal property to a subcontractor of a public transit district, if the tangible personal property is:
(i)clearly identified; and
(ii)installed or converted to real property owned by the public transit district;
(66)sales of construction materials:
(a)purchased on or after July 1, 2010;
(b)purchased by, on behalf of, or for the benefit of an international airport:
(i)located within a county of the first class; and
(ii)that has a United States customs office on its premises; and
(c)if the construction materials are:
(i)clearly identified;
(ii)segregated; and
(iii)installed or converted to real property:
(A)owned or operated by the international airport described in Subsection (66)(b); and
(B)located at the international airport described in Subsection (66)(b);
(67)sales of construction materials:
(a)purchased on or after July 1, 2008;
(b)purchased by, on behalf of, or for the benefit of a new airport:
(i)located within a county of the second class; and
(ii)that is owned or operated by a city in which an airline as defined in Section 59-2-102 is headquartered; and
(c)if the construction materials are:
(i)clearly identified;
(ii)segregated; and
(iii)installed or converted to real property:
(A)owned or operated by the new airport described in Subsection (67)(b);
(B)located at the new airport described in Subsection (67)(b); and
(C)as part of the construction of the new airport described in Subsection (67)(b);
(68)except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
(69)purchases and sales described in Section 63H-4-111;
(70)
(a)sales of tangible personal property to an aircraft maintenance, repair, and overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft’s registration lists a state or country other than this state as the location of registry of the fixed wing turbine powered aircraft; or
(b)sales of tangible personal property by an aircraft maintenance, repair, and overhaul provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft’s registration lists a state or country other than this state as the location of registry of the fixed wing turbine powered aircraft;
(71)subject to Section 59-12-104.4, sales of a textbook for a higher education course:
(a)to a person admitted to an institution of higher education; and
(b)by a seller, other than a bookstore owned by an institution of higher education, if 51% or more of that seller’s sales revenue for the previous calendar quarter are sales of a textbook for a higher education course;
(72)a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced level of municipal services;
(73)amounts paid or charged for construction materials used in the construction of a new or expanding life science research and development facility in the state, if the construction materials are:
(a)clearly identified;
(b)segregated; and
(c)installed or converted to real property;
(74)amounts paid or charged for:
(a)a purchase or lease of machinery and equipment that:
(i)are used in performing qualified research:
(A)as defined in Section 41(d), Internal Revenue Code; and
(B)in the state; and
(ii)have an economic life of three or more years; and
(b)normal operating repair or replacement parts:
(i)for the machinery and equipment described in Subsection (74)(a); and
(ii)that have an economic life of three or more years;
(75)a sale or lease of tangible personal property used in the preparation of prepared food if:
(a)for a sale:
(i)the ownership of the seller and the ownership of the purchaser are identical; and
(ii)the seller or the purchaser paid a tax under this chapter on the purchase of that tangible personal property prior to making the sale; or
(b)for a lease:
(i)the ownership of the lessor and the ownership of the lessee are identical; and
(ii)the lessor or the lessee paid a tax under this chapter on the purchase of that tangible personal property prior to making the lease;
(76)
(a)purchases of machinery or equipment if:
(i)the purchaser is an establishment described in NAICS Subsector 713, Amusement, Gambling, and Recreation Industries, of the 2012 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(ii)the machinery or equipment:
(A)has an economic life of three or more years; and
(B)is used by one or more persons who pay admission or user fees described in Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
(iii)51% or more of the purchaser’s sales revenue for the previous calendar quarter is:
(A)amounts paid or charged as admission or user fees described in Subsection 59-12-103(1)(f); and
(B)subject to taxation under this chapter; and
(b)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for verifying that 51% of a purchaser’s sales revenue for the previous calendar quarter is:
(i)amounts paid or charged as admission or user fees described in Subsection 59-12-103(1)(f); and
(ii)subject to taxation under this chapter;
(77)purchases of a short-term lodging consumable by a business that provides accommodations and services described in Subsection 59-12-103(1)(i);
(78)amounts paid or charged to access a database:
(a)if the primary purpose for accessing the database is to view or retrieve information from the database; and
(b)not including amounts paid or charged for a:
(i)digital audio work;
(ii)digital audio-visual work; or
(iii)digital book;
(79)amounts paid or charged for a purchase or lease made by an electronic financial payment service, of:
(a)machinery and equipment that:
(i)are used in the operation of the electronic financial payment service; and
(ii)have an economic life of three or more years; and
(b)normal operating repair or replacement parts that:
(i)are used in the operation of the electronic financial payment service; and
(ii)have an economic life of three or more years;
(80)sales of a fuel cell as defined in Section 54-15-102;
(81)amounts paid or charged for a purchase or lease of tangible personal property or a product transferred electronically if the tangible personal property or product transferred electronically:
(a)is stored, used, or consumed in the state; and
(b)is temporarily brought into the state from another state:
(i)during a disaster period as defined in Section 53-2a-1202;
(ii)by an out-of-state business as defined in Section 53-2a-1202;
(iii)for a declared state disaster or emergency as defined in Section 53-2a-1202; and
(iv)for disaster- or emergency-related work as defined in Section 53-2a-1202;
(82)sales of goods and services at a morale, welfare, and recreation facility, as defined in Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and Recreation Program;
(83)amounts paid or charged for a purchase or lease of molten magnesium;
(84)amounts paid or charged for a purchase or lease made by a qualifying data center or an occupant of a qualifying data center of machinery, equipment, or normal operating repair or replacement parts, if the machinery, equipment, or normal operating repair or replacement parts:
(a)are used in:
(i)the operation of the qualifying data center; or
(ii)the occupant’s operations in the qualifying data center; and
(b)have an economic life of one or more years;
(85)sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle that includes cleaning or washing of the interior of the vehicle;
(86)amounts paid or charged for a purchase or lease of machinery, equipment, normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used or consumed:
(a)by a refiner who owns, leases, operates, controls, or supervises a refinery as defined in Section 79-6-701 located in the state;
(b)if the machinery, equipment, normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
(i)the production process to produce gasoline or diesel fuel, or at which blendstock is added to gasoline or diesel fuel;
(ii)research and development;
(iii)transporting, storing, or managing raw materials, work in process, finished products, and waste materials produced from refining gasoline or diesel fuel, or adding blendstock to gasoline or diesel fuel;
(iv)developing or maintaining a road, tunnel, excavation, or similar feature used in refining; or
(v)preventing, controlling, or reducing pollutants from refining; and
(c)if the person holds a valid refiner tax exemption certification as defined in Section 79-6-701;
(87)amounts paid to or charged by a proprietor for accommodations and services, as defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax imposed under Section 63H-1-205;
(88)amounts paid or charged for a purchase or lease of machinery, equipment, normal operating repair or replacement parts, or materials, except for office equipment or office supplies, by an establishment, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(a)is described in NAICS Code 621511, Medical Laboratories, of the 2017 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget;
(b)is located in this state; and
(c)uses the machinery, equipment, normal operating repair or replacement parts, or materials in the operation of the establishment;
(89)amounts paid or charged for an item exempt under Section 59-12-104.10;
(90)sales of a note, leaf, foil, or film, if the item:
(a)is used as currency;
(b)does not constitute legal tender of a state, the United States, or a foreign nation; and
(c)has a gold, silver, or platinum metallic content of 50% or more, exclusive of any transparent polymer holder, coating, or encasement;
(91)amounts paid or charged for admission to an indoor skydiving, rock climbing, or surfing facility, if a trained instructor:
(a)is present with the participant, in person or by video, for the duration of the activity; and
(b)actively instructs the participant, including providing observation or feedback;
(92)amounts paid or charged in connection with the construction, operation, maintenance, repair, or replacement of facilities owned by or constructed for:
(a)a distribution electrical cooperative, as defined in Section 54-2-1; or
(b)a wholesale electrical cooperative, as defined in Section 54-2-1;
(93)amounts paid by the service provider for tangible personal property, other than machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels, that:
(a)is consumed in the performance of a service that is subject to tax under Subsection 59-12-103(1)(b), (f), (g), (h), (i), or (j);
(b)has to be consumed for the service provider to provide the service described in Subsection (93)(a); and
(c)will be consumed in the performance of the service described in Subsection (93)(a), to one or more customers, to the point that the tangible personal property disappears or cannot be used for any other purpose;
(94)sales of rail rolling stock manufactured in Utah;
(95)amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or construction materials between establishments, as the commission defines that term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
(a)the establishments are related directly or indirectly through 100% common ownership or control; and
(b)each establishment is described in one of the following subsectors of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget:
(i)NAICS Subsector 237, Heavy and Civil Engineering Construction; or
(ii)NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
(96)sales of construction materials used for the construction of a qualified stadium, as defined in Section 11-70-101; and
(97)amounts paid or charged for sales of a cannabinoid product as that term is defined in Section 4-41-102.

Amended by Chapter 35, 2024 General Session

59-12-104.1 Exemptions for religious or charitable institutions.
(1) Except as provided in Section 59-12-104, sales made by religious or charitable institutions or organizations are exempt from the sales and use tax imposed by this chapter if the sale is made in the conduct of the institution’s or organization’s regular religious or charitable functions or activities.
(2)
(a) Except as provided in Section 59-12-104, sales made to a religious or charitable institution or organization are exempt from the sales and use tax imposed by this chapter if the sale is made in the conduct of the institution’s or organization’s regular religious or charitable functions and activities.
(b) In order to facilitate the efficient administration of the exemption granted by this section, the exemption shall be administered as follows:
(i) the exemption shall be at point of sale if the sale is in the amount of at least $1,000;
(ii) except as provided in Subsection (2)(b)(iii), if the sale is less than $1,000, the exemption shall be in the form of a refund of sales or use taxes paid at the point of sale; and
(iii) notwithstanding Subsection (2)(b)(ii), the exemption under this section shall be at point of sale if the sale is:
(A) made pursuant to a contract between the seller and the charitable or religious institution or organization; or
(B) made by a public utility, as defined in Section 54-2-1, to a religious or charitable institution or organization.
(3)
(a) Religious or charitable institutions or organizations entitled to a refund under Subsection (2)(b)(ii) may apply to the commission for the refund of sales or use taxes paid.
(b) The commission shall designate the following by commission rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(i) procedures for applying for a sales and use tax refund;
(ii) standards for determining and verifying the amount of purchase at the point of sale;
(iii) procedures for submitting a request for refund on a monthly basis anytime the taxpayer has accumulated $100 or more in sales tax payments; and
(iv) procedures for submitting a request for refund on a quarterly basis for any cumulative amount of sales tax payments.

Amended by Chapter 382, 2008 General Session

59-12-104.2 Exemption for accommodations and services taxed by the Navajo Nation.
(1) As used in this section “tribal taxing area” means the geographical area that:
(a) is subject to the taxing authority of the Navajo Nation; and
(b) consists of:
(i) notwithstanding the issuance of a patent, all land:
(A) within the limits of an Indian reservation under the jurisdiction of the federal government; and
(B) including any rights-of-way running through the reservation; and
(ii) all Indian allotments the Indian titles to which have not been extinguished, including any rights-of-way running through an Indian allotment.
(2)
(a) Beginning July 1, 2001, amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i) are exempt from the tax imposed by Subsection 59-12-103(2)(a)(i)(A) or (2)(e)(i)(A)(I) to the extent permitted under Subsection (2)(b) if:
(i) the accommodations and services described in Subsection 59-12-103(1)(i) are provided within:
(A) the state; and
(B) a tribal taxing area;
(ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to the purchaser for the accommodations and services described in Subsection 59-12-103(1)(i);
(iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without regard to whether or not the purchaser that pays or is charged for the accommodations and services is an enrolled member of the Navajo Nation; and
(iv) the requirements of Subsection (4) are met.
(b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for accommodations and services described in Subsection (2)(a) are subject to a tax imposed by Subsection 59-12-103(2)(a)(i)(A) or (2)(e)(i)(A)(I):
(i) the seller shall collect and pay to the state the difference described in Subsection (3) if that difference is greater than $0; and
(ii) a person may not require the state to provide a refund, a credit, or similar tax relief if the difference described in Subsection (3) is equal to or less than $0.
(3) The difference described in Subsection (2)(b) is equal to the difference between:
(a) the amount of tax imposed by Subsection 59-12-103(2)(a)(i)(A) or (2)(e)(i)(A)(I) on the amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i); less
(b) the tax imposed and collected by the Navajo Nation on the amounts paid by or charged to a purchaser for the accommodations and services described in Subsection 59-12-103(1)(i).
(4)
(a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax imposed on amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i), any change in the amount of the exemption under Subsection (2) as a result of the change in the tax rate is not effective until the first day of the calendar quarter after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (4)(b) from the Navajo Nation.
(b) The notice described in Subsection (4)(a) shall state:
(i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on amounts paid by or charged to a purchaser for accommodations and services described in Subsection 59-12-103(1)(i);
(ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i); and
(iii) the new rate of the tax described in Subsection (4)(b)(i).

Amended by Chapter 274, 2022 General Session

59-12-104.3 Credit for certain repossessions of a motor vehicle.
(1)
(a) Subject to Subsections (2) and (3), a seller that collects a tax under this chapter on the sale of a motor vehicle may claim a credit for a tax under this chapter for a motor vehicle that:
(i) has been repossessed; and
(ii) that the seller resells.
(b) A seller of a motor vehicle other than the seller that collects a tax under this chapter on the sale of that motor vehicle may claim a credit for a tax under this chapter:
(i) for a motor vehicle that the seller:
(A) repossessed; and
(B) resells; and
(ii) if the seller that collected the tax under this chapter on that motor vehicle:
(A) is no longer doing business in this state; and
(B) does not owe a tax under this chapter.
(2) The amount of the credit allowed by Subsection (1) is equal to the product of:
(a) the portion of the motor vehicle’s purchase price that:
(i) was subject to a tax under this chapter; and
(ii) remains unpaid after the motor vehicle is resold; and
(b) the sum of the tax rates imposed:
(i) under this chapter;
(ii) on the motor vehicle’s purchase price; and
(iii) on the date the motor vehicle was purchased by the person that owns the motor vehicle at the time of the repossession.
(3) Except as provided in Subsection (4), if a seller recovers any portion of a motor vehicle’s unpaid purchase price that is used to calculate a credit allowed by Subsection (1)(b), the seller shall report and remit a tax under this chapter to the commission:
(a) on the portion of the motor vehicle’s unpaid purchase price that:
(i) the seller recovers; and
(ii) is used to calculate the credit allowed by Subsection (1)(b); and
(b) on a return filed for the time period for which the portion of the motor vehicle’s unpaid purchase price is recovered.
(4) A credit under this section may not be reduced by any amount of a motor vehicle’s unpaid purchase price that a seller recovers as a result of reselling the vehicle, regardless of whether that amount is included in calculating a credit under this section.

Amended by Chapter 9, 2007 General Session
Amended by Chapter 120, 2007 General Session

59-12-104.4 Seller recordkeeping for purposes of higher education textbook exemption -- Rulemaking authority.
(1) If a seller described in Subsection 59-12-104(71)(b) makes a sale of a textbook for a higher education course that is exempt under Subsection 59-12-104(71), the seller shall keep a record verifying that the textbook is a textbook for a higher education course.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
(a) prescribing the records a seller shall keep to verify that a textbook is a textbook for a higher education course; or
(b) to verify that 51% or more of a seller’s sales revenue for the previous calendar quarter are sales of a textbook for a higher education course.

Enacted by Chapter 314, 2011 General Session

59-12-104.5 Revenue and Taxation Interim Committee review of sales and use taxes.
          The Revenue and Taxation Interim Committee shall:
(1) review Subsection 59-12-104(28) before October 1 of the year after the year in which Congress permits a state to participate in the special supplemental nutrition program under 42 U.S.C. Sec. 1786 even if state or local sales taxes are collected within the state on purchases of food under that program; and
(2) review Subsection 59-12-104(21) before October 1 of the year after the year in which Congress permits a state to participate in the SNAP as defined in Section 35A-1-102, even if state or local sales taxes are collected within the state on purchases of food under that program.

Amended by Chapter 6, 2018 Special Session 2

59-12-104.6 Procedure for claiming a sales and use tax exemption for certain lodging related purchases -- Rulemaking authority -- Applicability of section.
(1) As used in this section:
(a) “Designated establishment within the lodging industry” means an establishment described in NAICS Code 721110 or 721191 of the 2007 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget.
(b) “Exempt purchaser” means a person that:
(i) makes a lodging related purchase; and
(ii) may claim an exemption from a tax under this chapter for the purchase.
(c) “Lodging related purchase” means the purchase of the following from a seller that is a designated establishment within the lodging industry:
(i) accommodations and services described in Subsection 59-12-103(1)(i); or
(ii) any other tangible personal property, product, or service that is:
(A) purchased as part of a transaction that includes the purchase of accommodations and services described in Subsection (1)(c)(i); and
(B) included on the invoice, bill of sale, or similar document provided to the purchaser of the accommodations and services described in Subsection (1)(c)(i).
(2) Except as provided in Subsection (3), an exempt purchaser that makes a lodging related purchase:
(a) shall pay a tax that would otherwise be imposed under this chapter on the lodging related purchase but for the purchaser being allowed to claim an exemption from a tax under this chapter for the purchase; and
(b) may apply to the commission for a refund of the tax described in Subsection (2)(a) that the purchaser pays.
(3) An exempt purchaser that makes a lodging related purchase may claim an exemption from a tax under this chapter at the point of sale if the exempt purchaser:
(a) is an agency or instrumentality of the United States;
(b) is exempt from a tax under this chapter on a lodging related purchase as authorized by a diplomatic tax exemption card issued by the United States; or
(c) may claim the exemption at the point of sale in accordance with Section 59-12-104.1.
(4) An exempt purchaser that applies to the commission for a refund may not make an application to the commission for a refund more frequently than monthly.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing:
(a) procedures for applying for a refund under this section;
(b) standards for determining and verifying the amount of a lodging related purchase by an exempt purchaser; and
(c) procedures for claiming a refund on a monthly basis.
(6) This section does not apply to amounts taxed by the Navajo Nation that are exempt from sales and use taxes in accordance with Section 59-12-104.2.

Enacted by Chapter 288, 2011 General Session

59-12-104.10 Exemption from sales tax for cannabis.
(1) As used in this section:
(a) “Cannabis” means the same as that term is defined in Section 26B-4-201.
(b) “Cannabis product” means the same as that term is defined in Section 26B-4-201.
(c) “Medical cannabis device” means the same as that term is defined in Section 26B-4-201.
(d) “Medical cannabis pharmacy” means the same as that term is defined in Section 26B-4-201.
(e) “Medicinal dosage form” means the same as that term is defined in Section 26B-4-201.
(2) In addition to the exemptions described in Section 59-12-104, the sale by a licensed medical cannabis pharmacy of the following is not subject to the taxes this chapter imposes:
(a) cannabis in a medicinal dosage form; or
(b) a cannabis product in a medicinal dosage form.
(3) The sale of a medical cannabis device by a medical cannabis pharmacy is subject to the taxes this chapter imposes.

Amended by Chapter 329, 2023 General Session

59-12-106 Definitions -- Sales and use tax license requirements -- Penalty -- Application process and requirements -- No fee -- Bonds -- Presumption of taxability -- Exemption certificates -- Exemption certificate license number to accompany contract bids.
(1) As used in this section:
(a) “Applicant” means a person that:
(i) is required by this section to obtain a license; and
(ii) submits an application:
(A) to the commission; and
(B) for a license under this section.
(b) “Application” means an application for a license under this section.
(c) “Fiduciary of the applicant” means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this chapter for an applicant; and
(ii)
(A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
(B) is a director of the applicant described in Subsection (1)(c)(i);
(C) is an employee of the applicant described in Subsection (1)(c)(i);
(D) is a partner of the applicant described in Subsection (1)(c)(i);
(E) is a trustee of the applicant described in Subsection (1)(c)(i); or
(F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(d) “Fiduciary of the licensee” means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this chapter for a licensee; and
(ii)
(A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
(B) is a director of the licensee described in Subsection (1)(d)(i);
(C) is an employee of the licensee described in Subsection (1)(d)(i);
(D) is a partner of the licensee described in Subsection (1)(d)(i);
(E) is a trustee of the licensee described in Subsection (1)(d)(i); or
(F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(e) “License” means a license under this section.
(f) “Licensee” means a person that is licensed under this section by the commission.
(g) “Special event” means an event that lasts six months or less where taxable sales occur.
(2)
(a) It is unlawful for any person required to collect a tax under this chapter to engage in business within the state without first having obtained a license to do so.
(b) The license described in Subsection (2)(a):
(i) shall be granted and issued by the commission;
(ii) is not assignable;
(iii) is valid only for the person in whose name the license is issued;
(iv) is valid until:
(A) the person described in Subsection (2)(b)(iii):
(I) ceases to do business; or
(II) changes that person’s business address; or
(B) the license is revoked by the commission; and
(v) subject to Subsection (2)(d), shall be granted by the commission only upon an application that:
(A) states the name and address of the applicant; and
(B) provides other information the commission may require.
(c) At the time an applicant makes an application under Subsection (2)(b)(v), the commission shall notify the applicant of the responsibilities and liability of a business owner successor under Section 59-12-112.
(d) The commission shall review an application and determine whether the applicant:
(i) meets the requirements of this section to be issued a license; and
(ii) is required to post a bond with the commission in accordance with Subsections (2)(e) and (f) before the applicant may be issued a license.
(e)
(i) Except as provided in Subsection (2)(e)(iii), an applicant shall post a bond with the commission before the commission may issue the applicant a license if:
(A) a license under this section was revoked for a delinquency under this chapter for:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter; or
(B) there is a delinquency in paying a tax under this chapter for:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter.
(ii) If the commission determines it is necessary to ensure compliance with this chapter, the commission may require a licensee to:
(A) for a licensee that has not posted a bond under this section with the commission, post a bond with the commission in accordance with Subsection (2)(f); or
(B) for a licensee that has posted a bond under this section with the commission, increase the amount of the bond posted with the commission.
(iii) The commission may waive the bond requirement described in Subsection (2)(e)(i), if the applicant is in compliance with a payment agreement that:
(A) relates to the delinquency; and
(B) is approved by the commission.
(f)
(i) A bond required by Subsection (2)(e) shall be:
(A) executed by:
(I) for an applicant, the applicant as principal, with a corporate surety; or
(II) for a licensee, the licensee as principal, with a corporate surety; and
(B) payable to the commission conditioned upon the faithful performance of all of the requirements of this chapter including:
(I) the payment of any tax under this chapter;
(II) the payment of any:
(Aa) penalty as provided in Section 59-1-401; or
(Bb) interest as provided in Section 59-1-402; or
(III) any other obligation of the:
(Aa) applicant under this chapter; or
(Bb) licensee under this chapter.
(ii) Except as provided in Subsection (2)(f)(iv), the commission shall calculate the amount of a bond required by Subsection (2)(e) on the basis of:
(A) commission estimates of:
(I) an applicant’s tax liability under this chapter; or
(II) a licensee’s tax liability under this chapter; and
(B) any amount of a delinquency described in Subsection (2)(f)(iii).
(iii) Except as provided in Subsection (2)(f)(iv), for purposes of Subsection (2)(f)(ii)(B):
(A) for an applicant, the amount of the delinquency is the sum of:
(I) the amount of any delinquency that served as a basis for revoking the license under this section of:
(Aa) the applicant;
(Bb) a fiduciary of the applicant; or
(Cc) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter; or
(II) the amount of tax that any of the following owe under this chapter:
(Aa) the applicant;
(Bb) a fiduciary of the applicant; and
(Cc) a person for which the applicant or the fiduciary of the applicant is required to collect, truthfully account for, and pay over a tax under this chapter; or
(B) for a licensee, the amount of the delinquency is the sum of:
(I) the amount of any delinquency that served as a basis for revoking the license under this section of:
(Aa) the licensee;
(Bb) a fiduciary of the licensee; or
(Cc) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this chapter; or
(II) the amount of tax that any of the following owe under this chapter:
(Aa) the licensee;
(Bb) a fiduciary of the licensee; and
(Cc) a person for which the licensee or the fiduciary of the licensee is required to collect, truthfully account for, and pay over a tax under this chapter.
(iv) Notwithstanding Subsection (2)(f)(ii) or (2)(f)(iii), a bond required by Subsection (2)(e) may not:
(A) be less than $25,000; or
(B) exceed $500,000.
(g) Subject to Subsection (2)(h), if business is transacted at two or more separate places by one person, a separate license for each place of business is required.
(h) A license is not required for any person:
(i) engaged exclusively in the business of selling commodities that are exempt from taxation under this chapter; or
(ii) exempt from collecting sales and use tax under Section 59-12-104 and the place of business is a special event.
(i) If a person is not required to obtain a license under Subsection (2)(h), a political subdivision, as defined in Subsection 63A-15-102(5), may not require the person to obtain a license as a prerequisite to obtaining a business license or any other right to conduct business.
(j)
(i) The commission shall, on a reasonable notice and after a hearing, revoke the license of any licensee violating any provisions of this chapter.
(ii) A license may not be issued to a licensee described in Subsection (2)(j)(i) until the licensee has complied with the requirements of this chapter, including:
(A) paying any:
(I) tax due under this chapter;
(II) penalty as provided in Section 59-1-401; or
(III) interest as provided in Section 59-1-402; and
(B) posting a bond in accordance with Subsections (2)(e) and (f).
(k) Any person required to collect a tax under this chapter within this state without having secured a license to do so is guilty of a criminal violation as provided in Section 59-1-401.
(l) A license shall be issued to the person by the commission without a license fee.
(m)
(i) The commission shall include on an application for a temporary sales tax license and special event sales tax return the following statement:
          “You are not required to complete or return this form or to collect sales and use tax if you are not regularly engaged in the business of selling the items you are offering at this event or all of the items that you are selling at this event are exempt from sales and use tax under Section 59-12-104.”
(ii) The notice described in Subsection (2)(m)(i) shall be in bold font no smaller than the font of the main content and shall appear at the top of the application form.
(3)
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax and the duty to collect the tax, it shall be presumed that tangible personal property or any other taxable transaction under Subsection 59-12-103(1) sold by any person for delivery in this state is sold for storage, use, or other consumption in this state unless the person selling the property, item, or service has taken from the purchaser an exemption certificate:
(i) bearing the name and address of the purchaser; and
(ii) providing that the property, item, or service was exempted under Section 59-12-104.
(b) An exemption certificate described in Subsection (3)(a):
(i) shall contain information as prescribed by the commission; and
(ii) if a paper exemption certificate is used, shall be signed by the purchaser.
(c)
(i) Subject to Subsection (3)(c)(ii), a seller or certified service provider is not liable to collect a tax under this chapter if the seller or certified service provider obtains within 90 days after a transaction is complete:
(A) an exemption certificate containing the information required by Subsections (3)(a) and (b); or
(B) the information required by Subsections (3)(a) and (b).
(ii) A seller or certified service provider that does not obtain the exemption certificate or information described in Subsection (3)(c)(i) with respect to a transaction is allowed 120 days after the commission requests the seller or certified service provider to substantiate the exemption to:
(A) establish that the transaction is not subject to taxation under this chapter by a means other than providing an exemption certificate containing the information required by Subsections (3)(a) and (b); or
(B) subject to Subsection (3)(c)(iii), obtain an exemption certificate containing the information required by Subsections (3)(a) and (b), taken in good faith.
(iii) For purposes of Subsection (3)(c)(ii)(B), an exemption certificate is taken in good faith if the exemption certificate claims an exemption that:
(A) was allowed by statute on the date of the transaction in the jurisdiction of the location of the transaction;
(B) could be applicable to that transaction; and
(C) is reasonable for the purchaser’s type of business.
(d) Except as provided in Subsection (3)(e), a seller or certified service provider that takes an exemption certificate from a purchaser in accordance with this Subsection (3) with respect to a transaction is not liable to collect a tax under this chapter on that transaction.
(e) Subsection (3)(d) does not apply to a seller or certified service provider if the commission establishes through an audit that the seller or certified service provider:
(i) knew or had reason to know at the time the purchaser provided the seller or certified service provider the information described in Subsection (3)(a) or (b) that the information related to the exemption claimed was materially false; or
(ii) otherwise knowingly participated in activity intended to purposefully evade the tax due on the transaction.
(f)
(i) Subject to Subsection (3)(f)(ii) and except as provided in Subsections (3)(f)(iii) and (iv), if there is a recurring business relationship between a seller or certified service provider and a purchaser, the commission may not require the seller or certified service provider to:
(A) renew an exemption certificate;
(B) update an exemption certificate; or
(C) update a data element of an exemption certificate.
(ii) For purposes of Subsection (3)(f)(i), a recurring business relationship exists if no more than a 12-month period elapses between transactions between a seller or certified service provider and a purchaser.
(iii) Notwithstanding any other provision of this Subsection, the commission shall require a seller to renew an exemption certificate if more than 12-months have elapsed between transactions between a seller or certified service provider and a purchaser.
(iv) If there is a recurring business relationship between a seller or certified service provider and a purchaser, the commission shall require an exemption certificate the seller or certified service provider takes from the purchaser to meet the requirements of Subsections (3)(a) and (b).
(4) A person filing a contract bid with the state or a political subdivision of the state for the sale of tangible personal property or any other taxable transaction under Subsection 59-12-103(1) shall include with the bid the number of the license issued to that person under Subsection (2).

Amended by Chapter 83, 2023 General Session
Amended by Chapter 355, 2023 General Session

59-12-107 Definitions -- Collection, remittance, and payment of tax by sellers or other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt -- Penalties and interest.
(1) As used in this section:
(a) “Ownership” means direct ownership or indirect ownership through a parent, subsidiary, or affiliate.
(b) “Related seller” means a seller that:
(i) meets one or more of the criteria described in Subsection (2)(a)(i); and
(ii) delivers tangible personal property, a service, or a product transferred electronically that is sold:
(A) by a seller that does not meet one or more of the criteria described in Subsection (2)(a)(i); and
(B) to a purchaser in the state.
(c) “Substantial ownership interest” means an ownership interest in a business entity if that ownership interest is greater than the degree of ownership of equity interest specified in 15 U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
(2)
(a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section 59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit the sales and use taxes imposed by this chapter if within this state the seller:
(i) has or utilizes:
(A) an office;
(B) a distribution house;
(C) a sales house;
(D) a warehouse;
(E) a service enterprise; or
(F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
(ii) maintains a stock of goods;
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the state, unless the seller’s only activity in the state is:
(A) advertising; or
(B) solicitation by:
(I) direct mail;
(II) electronic mail;
(III) the Internet;
(IV) telecommunications service; or
(V) a means similar to Subsection (2)(a)(iii)(A) or (B);
(iv) regularly engages in the delivery of property in the state other than by:
(A) common carrier; or
(B) United States mail; or
(v) regularly engages in an activity directly related to the leasing or servicing of property located within the state.
(b) A seller is considered to be engaged in the business of selling tangible personal property, a product transferred electronically, or a service for use in the state, and shall pay or collect and remit the sales and use taxes imposed by this chapter if:
(i) the seller holds a substantial ownership interest in, or is owned in whole or in substantial part by, a related seller; and
(ii)
(A) the seller sells the same or a substantially similar line of products as the related seller and does so under the same or a substantially similar business name; or
(B) the place of business described in Subsection (2)(a)(i) of the related seller or an in state employee of the related seller is used to advertise, promote, or facilitate sales by the seller to a purchaser.
(c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit the sales and use taxes imposed by this chapter under Subsection (2)(b) shall pay or collect and remit the sales and use tax imposed by this chapter if the seller:
(i) sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state; and
(ii) in either the previous calendar year or the current calendar year:
(A) receives gross revenue from the sale of tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state of more than $100,000; or
(B) sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state in 200 or more separate transactions.
(d) A seller that does not meet one or more of the criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
(i) collect a tax on a transaction described in Subsection 59-12-103(1); and
(ii) remit the tax to the commission as provided in this part.
(e) The collection and remittance of a tax under this chapter by a seller that is registered under the agreement may not be used as a factor in determining whether that seller is required by this Subsection (2) to:
(i) pay a tax, fee, or charge under:
(A)Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B)Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 19-6-714;
(D) Section 19-6-805;
(E)Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(F) this title; or
(ii) collect and remit a tax, fee, or charge under:
(A)Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B)Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 19-6-714;
(D) Section 19-6-805;
(E)Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(F) this title.
(f) A person shall pay a use tax imposed by this chapter on a transaction described in Subsection 59-12-103(1) if:
(i) the seller did not collect a tax imposed by this chapter on the transaction; and
(ii) the person:
(A) stores the tangible personal property or product transferred electronically in the state;
(B) uses the tangible personal property or product transferred electronically in the state; or
(C) consumes the tangible personal property or product transferred electronically in the state.
(g) The ownership of property that is located at the premises of a printer’s facility with which the retailer has contracted for printing and that consists of the final printed product, property that becomes a part of the final printed product, or copy from which the printed product is produced, shall not result in the retailer being considered to have or maintain an office, distribution house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock of goods, within this state.
(3)
(a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this chapter from a purchaser.
(b) A seller may not collect as tax an amount, without regard to fractional parts of one cent, in excess of the tax computed at the rates prescribed by this chapter.
(c)
(i) Each seller shall:
(A) give the purchaser a receipt for the tax collected; or
(B) bill the tax as a separate item and declare the name of this state and the seller’s sales and use tax license number on the invoice for the sale.
(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax and relieves the purchaser of the liability for reporting the tax to the commission as a consumer.
(d) A seller is not required to maintain a separate account for the tax collected, but is considered to be a person charged with receipt, safekeeping, and transfer of public money.
(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the benefit of the state and for payment to the commission in the manner and at the time provided for in this chapter.
(f) If any seller, during any reporting period, collects as a tax an amount in excess of the lawful state and local percentage of total taxable sales allowed under this chapter, the seller shall remit to the commission the full amount of the tax imposed under this chapter, plus any excess.
(g) If the accounting methods regularly employed by the seller in the transaction of the seller’s business are such that reports of sales made during a calendar month or quarterly period will impose unnecessary hardships, the commission may accept reports at intervals that, in the commission’s opinion, will better suit the convenience of the taxpayer or seller and will not jeopardize collection of the tax.
(h)
(i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1, and until such time as the commission accepts specie legal tender for the payment of a tax under this chapter, if the commission requires a seller to remit a tax under this chapter in legal tender other than specie legal tender, the seller shall state on the seller’s books and records and on an invoice, bill of sale, or similar document provided to the purchaser:
(A) the purchase price in specie legal tender and in the legal tender the seller is required to remit to the commission;
(B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie legal tender and in the legal tender the seller is required to remit to the commission;
(C) the tax rate under this chapter applicable to the purchase; and
(D) the date of the purchase.
(ii)
(A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the specie legal tender the purchaser paid.
(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules for determining the amount of tax due under Subsection (3)(h)(i) if the London fixing price is not available for a particular day.
(4)
(a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the sales or use tax imposed by this chapter is due and payable to the commission quarterly on or before the last day of the month next succeeding each quarterly calendar period.
(b)
(i) Each seller shall, on or before the last day of the month next succeeding each quarterly calendar period, file with the commission a return for the preceding quarterly period.
(ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the tax required under this chapter to be collected or paid for the period covered by the return.
(c) Except as provided in Subsection (5)(c), a return shall contain information and be in a form the commission prescribes by rule.
(d)
(i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be based on the total nonexempt sales made during the period for which the return is filed, including both cash and charge sales.
(ii) For a sale that includes the delivery or installation of tangible personal property at a location other than a seller’s place of business described in Subsection (2)(a)(i), if the delivery or installation is separately stated on an invoice or receipt, a seller may compute the tax due on the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that sale during each period for which the seller receives payment for the sale.
(e)
(i) The use tax as computed in the return shall be based on the total amount of purchases for storage, use, or other consumption in this state made during the period for which the return is filed, including both cash and charge purchases.
(ii)
(A) As used in this Subsection (4)(e)(ii), “qualifying purchaser” means a purchaser that is required to remit taxes under this chapter, but is not required to remit taxes monthly in accordance with Section 59-12-108, and that converts tangible personal property into real property.
(B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the taxes due under this chapter on tangible personal property for which the qualifying purchaser claims an exemption as allowed under Subsection 59-12-104(23) or (25) based on the period in which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C), for the conversion of the tangible personal property into real property.
(C) A qualifying purchaser remitting taxes due under this chapter in accordance with Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the qualifying purchaser’s purchase of the tangible personal property that was converted into real property multiplied by a fraction, the numerator of which is the payment received in the period for the qualifying purchaser’s sale of the tangible personal property that was converted into real property and the denominator of which is the entire sales price for the qualifying purchaser’s sale of the tangible personal property that was converted into real property.
(D) A qualifying purchaser may remit taxes due under this chapter in accordance with this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in the qualifying purchaser’s regular course of business identify by reasonable and verifiable standards that the tangible personal property was converted into real property.
(f)
(i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule extend the time for making returns and paying the taxes.
(ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
(g) The commission may require returns and payment of the tax to be made for other than quarterly periods if the commission considers it necessary in order to ensure the payment of the tax imposed by this chapter.
(h)
(i) The commission may require a seller that files a simplified electronic return with the commission to file an additional electronic report with the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing:
(A) the information required to be included in the additional electronic report described in Subsection (4)(h)(i); and
(B) one or more due dates for filing the additional electronic report described in Subsection (4)(h)(i).
(5)
(a) As used in this Subsection (5) and Subsection (6)(b), “ voluntary seller” means a seller that is:
(i) registered under the agreement;
(ii) described in Subsection (2)(d); and
(iii) not a:
(A) model 1 seller;
(B) model 2 seller; or
(C) model 3 seller.
(b)
(i) Except as provided in Subsection (5)(b)(ii), a tax a voluntary seller collects in accordance with Subsection (2)(d) is due and payable:
(A) to the commission;
(B) annually; and
(C) on or before the last day of the month immediately following the last day of each calendar year.
(ii) The commission may require that a tax a voluntary seller collects in accordance with Subsection (2)(d) be due and payable:
(A) to the commission; and
(B) on the last day of the month immediately following any month in which the seller accumulates a total of at least $1,000 in agreement sales and use tax.
(c)
(i) If a voluntary seller remits a tax to the commission in accordance with Subsection (5)(b), the voluntary seller shall file a return:
(A) with the commission;
(B) with respect to the tax;
(C) containing information prescribed by the commission; and
(D) on a form prescribed by the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules prescribing:
(A) the information required to be contained in a return described in Subsection (5)(c)(i); and
(B) the form described in Subsection (5)(c)(i)(D).
(d) A tax a voluntary seller collects in accordance with this Subsection (5) shall be calculated on the basis of the total amount of taxable transactions under Subsection 59-12-103(1) the voluntary seller completes, including:
(i) a cash transaction; and
(ii) a charge transaction.
(6)
(a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified electronic return collects in accordance with this chapter is due and payable:
(i) monthly on or before the last day of the month immediately following the month for which the seller collects a tax under this chapter; and
(ii) for the month for which the seller collects a tax under this chapter.
(b) A tax a voluntary seller that files a simplified electronic return collects in accordance with this chapter is due and payable as provided in Subsection (5).
(7)
(a) On each vehicle sale made by other than a regular licensed vehicle dealer, the purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to titling or registration under the laws of this state.
(b) The commission shall collect the tax described in Subsection (7)(a) when the vehicle is titled or registered.
(8) If any sale of tangible personal property or any other taxable transaction under Subsection 59-12-103(1), is made by a wholesaler to a retailer:
(a) the wholesaler is not responsible for the collection or payment of the tax imposed on the sale; and
(b) the retailer is responsible for the collection or payment of the tax imposed on the sale if:
(i) the retailer represents that the tangible personal property, product transferred electronically, or service is purchased by the retailer for resale; and
(ii) the tangible personal property, product transferred electronically, or service is not subsequently resold.
(9) If any sale of property or service subject to the tax is made to a person prepaying sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a contractor or subcontractor of that person:
(a) the person to whom such payment or consideration is payable is not responsible for the collection or payment of the sales or use tax; and
(b) the person prepaying the sales or use tax is responsible for the collection or payment of the sales or use tax if the person prepaying the sales or use tax represents that the amount prepaid as sales or use tax has not been fully credited against sales or use tax due and payable under the rules promulgated by the commission.
(10)
(a) For purposes of this Subsection (10):
(i) Except as provided in Subsection (10)(a)(ii), “bad debt” means the same as that term is defined in Section 166, Internal Revenue Code.
(ii) “Bad debt” does not include:
(A) an amount included in the purchase price of tangible personal property, a product transferred electronically, or a service that is:
(I) not a transaction described in Subsection 59-12-103(1); or
(II) exempt under Section 59-12-104;
(B) a financing charge;
(C) interest;
(D) a tax imposed under this chapter on the purchase price of tangible personal property, a product transferred electronically, or a service;
(E) an uncollectible amount on tangible personal property or a product transferred electronically that:
(I) is subject to a tax under this chapter; and
(II) remains in the possession of a seller until the full purchase price is paid;
(F) an expense incurred in attempting to collect any debt; or
(G) an amount that a seller does not collect on repossessed property.
(b)
(i) To the extent an amount remitted in accordance with Subsection (4)(d) later becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax under this chapter is calculated on a return.
(ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on the qualifying purchaser’s purchase of tangible personal property converted into real property to the extent that:
(A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal property converted into real property;
(B) the qualifying purchaser’s sale of that tangible personal property converted into real property later becomes bad debt; and
(C) the books and records that the qualifying purchaser keeps in the qualifying purchaser’s regular course of business identify by reasonable and verifiable standards that the tangible personal property was converted into real property.
(c) A seller may file a refund claim with the commission if:
(i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds the amount of the seller’s sales that are subject to a tax under this chapter for that same time period; and
(ii) as provided in Section 59-1-1410.
(d) A bad debt deduction under this section may not include interest.
(e) A bad debt may be deducted under this Subsection (10) on a return for the time period during which the bad debt:
(i) is written off as uncollectible in the seller’s books and records; and
(ii) would be eligible for a bad debt deduction:
(A) for federal income tax purposes; and
(B) if the seller were required to file a federal income tax return.
(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or claims a refund under this Subsection (10), the seller shall report and remit a tax under this chapter:
(i) on the portion of the bad debt the seller recovers; and
(ii) on a return filed for the time period for which the portion of the bad debt is recovered.
(g) For purposes of reporting a recovery of a portion of bad debt under Subsection (10)(f), a seller shall apply amounts received on the bad debt in the following order:
(i) in a proportional amount:
(A) to the purchase price of the tangible personal property, product transferred electronically, or service; and
(B) to the tax due under this chapter on the tangible personal property, product transferred electronically, or service; and
(ii) to:
(A) interest charges;
(B) service charges; and
(C) other charges.
(h) A seller’s certified service provider may make a deduction or claim a refund for bad debt on behalf of the seller:
(i) in accordance with this Subsection (10); and
(ii) if the certified service provider credits or refunds the entire amount of the bad debt deduction or refund to the seller.
(i) A seller may allocate bad debt among the states that are members of the agreement if the seller’s books and records support that allocation.
(11)
(a) A seller may not, with intent to evade any tax, fail to timely remit the full amount of tax required by this chapter.
(b) A violation of this section is punishable as provided in Section 59-1-401.
(c) Each person that fails to pay any tax to the state or any amount of tax required to be paid to the state, except amounts determined to be due by the commission under Chapter 1, Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111, within the time required by this chapter, or that fails to file any return as required by this chapter, shall pay, in addition to the tax, penalties and interest as provided in Sections 59-1-401 and 59-1-402.
(d) For purposes of prosecution under this section, each quarterly tax period in which a seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the tax required to be remitted constitutes a separate offense.

Amended by Chapter 273, 2022 General Session

59-12-107.1 Direct payment permit.
(1) The commission may issue a direct payment permit to a seller that:
(a) obtains a license under Section 59-12-106;
(b) makes aggregate purchases of at least $1,500,000 for each of the three years prior to the year in which the commission issues the direct payment permit to the seller;
(c) has a record of timely payment of taxes under this chapter as determined by the commission; and
(d) demonstrates to the commission that the seller has the ability to determine the appropriate location of a transaction:
(i) under:
(A) Section 59-12-211;
(B) Section 59-12-212; or
(C) Section 59-12-213; and
(ii) for each transaction for which the seller makes a purchase using the direct payment permit.
(2) The commission shall within 120 days after the date a seller applies for a direct payment permit notify the seller of the commission’s decision to issue or deny the issuance of the direct payment permit.
(3) A direct payment permit may not be used in connection with the following transactions:
(a) a purchase of the following purchased in the same transaction:
(i) prepared food; and
(ii) food and food ingredients;
(b) amounts paid or charged for accommodations and services described in Subsection 59-12-103(1)(i);
(c) amounts paid or charged for admission or user fees under Subsection 59-12-103(1)(f);
(d) a purchase of:
(i) a motor vehicle;
(ii) an aircraft;
(iii) a watercraft;
(iv) a modular home;
(v) a manufactured home; or
(vi) a mobile home;
(e) amounts paid under Subsection 59-12-103(1)(b); or
(f) sales under Subsection 59-12-103(1)(c).
(4) The holder of a direct payment permit shall:
(a) present evidence of the direct payment permit to a seller at the time the holder of the direct payment permit makes a purchase using the direct payment permit;
(b) determine the appropriate location of a transaction under:
(i)
(A) Section 59-12-211;
(B) Section 59-12-212; or
(C) Section 59-12-213; and
(ii) for each transaction for which the holder of the direct payment permit makes a purchase using the direct payment permit;
(c) notwithstanding Section 59-12-107, determine the amount of any sales and use tax due on each transaction for which the holder of the direct payment permit uses the direct payment permit;
(d) report and remit to the commission the sales and use tax described in Subsection (4)(c) at the same time and in the same manner as the holder of the direct payment permit reports and remits a tax under this chapter; and
(e) maintain records:
(i) that indicate the appropriate location of a transaction under:
(A)
(I) Section 59-12-211;
(II) Section 59-12-212; or
(III) Section 59-12-213; and
(B) for each transaction for which a purchase is made using the direct payment permit; and
(ii) necessary to determine the amount described in Subsection (4)(c) for each transaction for which the holder of the direct payment permit uses the direct payment permit.
(5) A seller that is presented evidence of a direct payment permit at the time of a transaction:
(a) notwithstanding Section 59-12-107, may not collect sales and use tax on the transaction;
(b) shall, for a period of three years from the date the seller files a return with the commission reporting the transaction, retain records to verify that the transaction was made using a direct payment permit; and
(c) notwithstanding Section 59-12-107, is not liable for sales and use tax on the transaction.
(6) The holder of a direct payment permit may calculate the amount the holder of the direct payment permit may retain under Section 59-12-108 on the amount described in Subsection (4)(c):
(a) for each transaction for which the holder of the direct payment permit uses the direct payment permit; and
(b) that the holder of the direct payment permit remits to the commission under this section.
(7) The commission may revoke a direct payment permit issued under this section at any time if the holder of the direct payment permit fails to comply with any provision of this chapter.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to administer this section.

Amended by Chapter 382, 2008 General Session
Amended by Chapter 384, 2008 General Session

59-12-107.6 Marketplace facilitator collection, remittance, and payment of sales tax obligation -- Marketplace seller collection, remittance, and payment of sales tax obligation -- Liability for collection.
(1) A marketplace facilitator shall pay or collect and remit taxes imposed by this chapter in accordance with Section 59-12-107:
(a) if the marketplace facilitator meets one or more of the criteria provided for in Subsection 59-12-107(2)(a) or (b); and
(b) on the sales the marketplace facilitator made on the marketplace facilitator’s own behalf.
(2)
(a) A marketplace facilitator shall pay or collect and remit taxes imposed by this chapter in accordance with Subsection (3) if the marketplace facilitator, in the previous calendar year or the current calendar year, makes sales of tangible personal property, products transferred electronically, or services on the marketplace facilitator’s own behalf or facilitates sales on behalf of one or more marketplace sellers:
(i) that exceed $100,000; or
(ii) in 200 or more separate transactions.
(b) For purposes of determining if a marketplace facilitator meets or exceeds one or both thresholds described in this Subsection (2), a marketplace facilitator shall separately total:
(i) the marketplace facilitator’s sales; and
(ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
(c) A marketplace facilitator without a physical presence in this state shall begin collecting and remitting the taxes imposed by this chapter no later than the first day of the calendar quarter that is at least 60 days after the day on which the marketplace facilitator meets or exceeds either threshold described in Subsection (2)(a).
(3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit taxes imposed by this chapter for each sale that the marketplace facilitator:
(a) makes on the marketplace facilitator’s own behalf; or
(b) makes or facilitates on behalf of a marketplace seller, regardless of:
(i) whether the marketplace seller has an obligation to pay or collect and remit taxes under Section 59-12-107;
(ii) whether the marketplace seller would have been required to pay or collect and remit taxes under Section 59-12-107 if the marketplace facilitator had not facilitated the sale; or
(iii) the amount of the sales price or the purchase price that accrues to or benefits the marketplace facilitator, the marketplace seller, or any other person.
(4) A marketplace facilitator shall comply with the procedures and requirements in this chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect and remit taxes except that the marketplace facilitator shall segregate, in the marketplace facilitator’s books and records:
(a) the sales that the marketplace facilitator makes on the marketplace facilitator’s own behalf; and
(b) the sales that the marketplace facilitator makes or facilitates on behalf of one or more marketplace sellers.
(5)
(a) The commission may audit the marketplace facilitator for sales made or facilitated through the marketplace facilitator’s marketplace on behalf of one or more marketplace sellers.
(b) The commission may not audit the marketplace seller for sales made or facilitated through the marketplace facilitator’s marketplace on the marketplace seller’s behalf.
(6) Nothing in this section prohibits a marketplace facilitator from providing in a marketplace facilitator’s agreement with a marketplace seller for the recovery of taxes, and any related interest or penalties to the extent that a tax, interest, or penalty is assessed by the state in an audit of the marketplace facilitator on a retail sale:
(a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller; and
(b) for which the marketplace facilitator relied on incorrect or incomplete information provided by the marketplace seller.
(7)
(a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for failing to collect the taxes under this chapter for a sale on which the marketplace facilitator failed to collect taxes if the marketplace facilitator demonstrates, to the satisfaction of the commission, that:
(i) the marketplace facilitator made or facilitated the sale through the marketplace facilitator’s marketplace on or before December 31, 2022;
(ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace seller and not on behalf of the marketplace facilitator;
(iii) the marketplace facilitator and the marketplace seller are not affiliates; and
(iv) the failure to collect taxes was due to a good faith error other than an error in sourcing.
(b) For purposes of Subsection (7)(a):
(i) for sales made or facilitated during the 2019 or 2020 calendar year, the marketplace facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that is equal to the error rate, but not to exceed a 7% error rate;
(ii) for sales made or facilitated during the 2021 calendar year, the marketplace facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that is equal to the error rate, but not to exceed a 5% error rate; and
(iii) for sales made or facilitated during the 2022 calendar year, the marketplace facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that is equal to the error rate, but not to exceed a 3% error rate.
(c) The commission shall calculate the percentages described in Subsection (7)(b):
(i) using the total taxes due on sales that:
(A) a marketplace facilitator made or facilitated in this state on behalf of one or more marketplace sellers during the calendar year that the sale for which the marketplace facilitator seeks relief was made or facilitated; and
(B) are sourced to the state; and
(ii) not including sales that the marketplace facilitator or the marketplace facilitator’s affiliates directly made during the same calendar year.
(8) A marketplace seller shall pay or collect and remit taxes imposed by this chapter for a sale of tangible personal property, a product transferred electronically, or a service that the marketplace seller makes other than through a marketplace facilitator if:
(a) the sale is sourced to this state; and
(b) the marketplace seller’s sales in this state, other than through a marketplace facilitator, in the previous calendar year or the current calendar year:
(i) exceed $100,000; or
(ii) occur in 200 or more separate transactions.
(9)
(a) A marketplace seller may not pay or collect and remit taxes imposed by this chapter for any sale for which a marketplace facilitator is required to pay or collect and remit.
(b) A marketplace seller is not liable for a marketplace facilitator’s failure to pay or collect and remit, or the marketplace facilitator’s underpayment of, taxes imposed by this chapter for any sale for which a marketplace facilitator is required to pay or collect and remit the taxes imposed by this chapter.
(10)
(a) A purchaser of tangible personal property, a product transferred electronically, or a service may file a claim for a refund with the marketplace facilitator if the purchaser overpaid taxes imposed under this chapter.
(b) No person may bring a class action against a marketplace facilitator in any court of the state on behalf of purchasers arising from or in any way related to an overpayment of taxes collected and remitted on sales made or facilitated by the marketplace facilitator on behalf of a marketplace seller, regardless of whether such claim is characterized as a tax refund claim.
(11) Nothing in this section affects the obligation of a purchaser to remit the use tax described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator or marketplace seller failed to collect and remit a tax imposed by this chapter.

Amended by Chapter 361, 2023 General Session

59-12-108 Monthly payment -- Amount of tax a seller may retain -- Penalty -- Certain amounts allocated to local taxing jurisdictions.
(1)
(a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this chapter of $50,000 or more for the previous calendar year shall:
(i) file a return with the commission:
(A) monthly on or before the last day of the month immediately following the month for which the seller collects a tax under this chapter; and
(B) for the month for which the seller collects a tax under this chapter; and
(ii) except as provided in Subsection (1)(b), remit with the return required by Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax, fee, or charge described in Subsection (1)(c):
(A) if that seller’s tax liability under this chapter for the previous calendar year is less than $96,000, by any method permitted by the commission; or
(B) if that seller’s tax liability under this chapter for the previous calendar year is $96,000 or more, by electronic funds transfer.
(b) A seller shall remit electronically with the return required by Subsection (1)(a)(i) the amount the seller is required to remit to the commission for each tax, fee, or charge described in Subsection (1)(c) if that seller:
(i) is required by Section 59-12-107 to file the return electronically; or
(ii)
(A) is required to collect and remit a tax under Section 59-12-107; and
(B) files a simplified electronic return.
(c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
(i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) a fee under Section 19-6-714;
(iii) a fee under Section 19-6-805;
(iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(v) a tax under this chapter.
(d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules providing for a method for making same-day payments other than by electronic funds transfer if making payments by electronic funds transfer fails.
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall establish by rule procedures and requirements for determining the amount a seller is required to remit to the commission under this Subsection (1).
(2)
(a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month the amount allowed by this Subsection (2).
(b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month 1.31% of any amounts the seller is required to remit to the commission:
(i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax and a local tax imposed in accordance with the following, for the month for which the seller is filing a return in accordance with Subsection (1):
(A) Subsection 59-12-103(2)(a);
(B) Subsection 59-12-103(2)(b); and
(C) Subsection 59-12-103(2)(d); and
(ii) for an agreement sales and use tax.
(c)
(i) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described in Subsection 59-12-103(1) that is subject to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(c).
(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount equal to the sum of:
(A) 1.31% of any amounts the seller is required to remit to the commission for:
(I) the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(c);
(II) the month for which the seller is filing a return in accordance with Subsection (1); and
(III) an agreement sales and use tax; and
(B) 1.31% of the difference between:
(I) the amounts the seller would have been required to remit to the commission:
(Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
(Bb) for the month for which the seller is filing a return in accordance with Subsection (1); and
(Cc) for an agreement sales and use tax; and
(II) the amounts the seller is required to remit to the commission for:
(Aa) the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(c);
(Bb) the month for which the seller is filing a return in accordance with Subsection (1); and
(Cc) an agreement sales and use tax.
(d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain each month 1% of any amounts the seller is required to remit to the commission:
(i) for the month for which the seller is filing a return in accordance with Subsection (1); and
(ii) under:
(A)Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Subsection 59-12-603(1)(a)(i)(A);
(C) Subsection 59-12-603(1)(a)(i)(B); or
(D) Subsection 59-12-603(1)(a)(ii).
(3) A state government entity that is required to remit taxes monthly in accordance with Subsection (1) may not retain any amount under Subsection (2).
(4) A seller that has a tax liability under this chapter for the previous calendar year of less than $50,000 may:
(a) voluntarily meet the requirements of Subsection (1); and
(b) if the seller voluntarily meets the requirements of Subsection (1), retain the amounts allowed by Subsection (2).
(5) Penalties for late payment shall be as provided in Section 59-1-401.
(6)
(a) Except as provided in Subsection (6)(c), for any amounts required to be remitted to the commission under this part, the commission shall each month calculate an amount equal to the difference between:
(i) the total amount retained for that month by all sellers had the percentages listed under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
(ii) the total amount retained for that month by all sellers at the percentages listed under Subsections (2)(b) and (2)(c)(ii).
(b) The commission shall each month allocate the amount calculated under Subsection (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use tax that the commission distributes to each county, city, and town for that month compared to the total agreement sales and use tax that the commission distributes for that month to all counties, cities, and towns.
(c) The amount the commission calculates under Subsection (6)(a) may not include an amount collected from a tax that:
(i) the state imposes within a county, city, or town, including the unincorporated area of a county; and
(ii) is not imposed within the entire state.

Amended by Chapter 459, 2023 General Session

59-12-109 Confidentiality of information.
          The confidentiality of returns and other information filed with the commission shall be governed by Section 59-1-403.

Renumbered and Amended by Chapter 5, 1987 General Session

59-12-110 Refunds procedures.
(1) A seller that files a claim for a refund under Section 59-12-107 for bad debt shall file the claim with the commission within three years from the date on which the seller could first claim the refund for the bad debt.
(2) A seller that files a claim for a refund for a repossessed item shall file the claim with the commission within three years from the date the item is repossessed.
(3) Except as provided in Subsection (1) or (2), procedures and requirements for a taxpayer to obtain a refund from the commission are as provided in Section 59-1-1410.

Amended by Chapter 424, 2012 General Session

59-12-110.1 Refund or credit for taxes overpaid by a purchaser -- Seller reasonable business practice.
(1) Subject to the other provisions of this section, a purchaser may request from a seller a refund or credit of any amount that:
(a) the purchaser overpaid in taxes under this chapter; and
(b) was collected by the seller.
(2)
(a) Except as provided in Subsection (2)(b), the procedure described in Subsection (1) is in addition to the process for a taxpayer to file a claim for a refund or credit with the commission under Section 59-1-1410.
(b) Notwithstanding Subsection (2)(a):
(i) the commission is not required to make a refund or credit of an amount for which as of the date the refund or credit is to be given the purchaser has requested or received a refund or credit from the seller; and
(ii) a seller is not required to refund or credit an amount for which as of the date the refund is to be given the purchaser has requested or received a refund or credit from the commission.
(3) A purchaser may not bring a cause of action against a seller for a refund or credit described in Subsection (1):
(a) unless the purchaser provided the seller written notice that:
(i) the purchaser requests the refund or credit described in Subsection (1); and
(ii) contains the information necessary for the seller to determine the validity of the request; and
(b) sooner than 60 days after the day on which the seller receives the written notice described in Subsection (3)(a).
(4) A seller that collects a tax under this chapter that exceeds the amount the seller is required to collect under this chapter is presumed to have a reasonable business practice if the seller:
(a) collects the tax under this chapter that exceeds the amount the seller is required to collect under this chapter through the use of:
(i) a certified service provider; or
(ii) a system certified by the state, including a proprietary system certified by the state; and
(b) remits to the commission all taxes the seller is required to remit to the commission under this chapter.

Amended by Chapter 212, 2009 General Session

59-12-111 Penalty for certain purchasers that fail to file a return or pay a tax due -- Commission rulemaking authority.
          A person shall pay a penalty as provided in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402, and all other penalties and interest as provided by this title if the person:
(1) does not hold:
(a) a license under Section 59-12-106; or
(b) a valid use tax registration certificate;
(2) purchases tangible personal property subject to taxation under Subsection 59-12-103(1) for storage, use, or other consumption in this state; and
(3) fails to file a return or pay the tax due as prescribed by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

Amended by Chapter 212, 2009 General Session

59-12-112 Tax a lien when selling business -- Liability of purchaser.
          The tax imposed by this chapter shall be a lien upon the property of any person who sells out his business or stock of goods or quits business.  Such person shall complete the return provided for under Section 59-12-107, within 30 days after the date he sold his business or stock of goods, or quit business.  Such person’s successor in business shall withhold  enough of the purchase money to cover the amount of taxes due and unpaid until the former owner produces a receipt from the commission showing that the taxes have been paid, or a certificate that no taxes are due.  If the purchaser of a business or stock of goods fails to withhold such purchase money and the taxes are due and unpaid after the 30-day period allowed, he is personally liable for the payment of the taxes collected and unpaid by the former owner.

Renumbered and Amended by Chapter 5, 1987 General Session

59-12-116 License and tax in addition to other licenses and taxes.
          The license and tax imposed by this chapter shall be in addition to all other licenses and taxes provided by law.

Renumbered and Amended by Chapter 5, 1987 General Session

59-12-117 Refusal to make or falsifying returns -- Evasion of payment of a tax -- Aiding or abetting an attempt to evade the payment of a tax -- Penalties -- Criminal violations.
(1) It is unlawful for any seller to:
(a) refuse to make any return required to be made under this chapter;
(b) make any false or fraudulent return or false statement on any return;
(c) evade the payment of a tax, or any part of a tax imposed by this chapter; or
(d) aid or abet another in any attempt to evade the payment of the tax or any part imposed by this chapter.
(2) Any person violating any of the provisions of this chapter, except as provided in Section 59-12-107, is guilty of a criminal violation as provided in Section 59-1-401.
(3) In addition to the penalties described in Subsection (2), any person who knowingly swears to or verifies any false or fraudulent return, or any return containing any false or fraudulent statement is guilty of the offense of perjury and on conviction of perjury shall be punished in the manner provided by law.
(4) Any company making a false return or a return containing a false statement is guilty of a criminal violation as provided in Section 59-1-401.
(5) Any person failing or refusing to furnish any return required to be made, failing or refusing to furnish a supplemental return or other data required by the commission, or rendering a false or fraudulent return is guilty of a criminal violation as provided in Section 59-1-401 for each offense.
(6) Any person required to make, render, sign, or verify any report under this chapter, who makes any false or fraudulent return with intent to defeat or evade the assessment or determination of amount due required by law to be made is guilty of a criminal violation as provided in Section 59-1-401 for each offense.
(7) Any violation of the provisions of this chapter, except as otherwise provided, shall be a criminal violation as provided in Section 59-1-401.

Amended by Chapter 158, 2005 General Session

59-12-118 Commission’s authority to administer sales and use tax.
          Except as provided in Sections 59-12-209 and 59-12-302, the commission shall have exclusive authority to administer, operate, and enforce the provisions of this chapter including:
(1) determining, assessing, and collecting any sales and use tax imposed pursuant to this chapter;
(2) representing each designated political subdivision’s interest in any administrative proceeding involving the state or local option sales and use tax;
(3) adjudicating any administrative proceedings involving the state or local option sales and use tax;
(4) waiving, reducing, or compromising any penalty and interest imposed in connection with any determination of state or local option sales or use tax; and
(5) prescribing forms and rules to conform with this chapter for the making of returns and for the ascertainment, assessment, and collection of the taxes imposed under this chapter.

Amended by Chapter 414, 2021 General Session

59-12-123 Definitions -- Collection, remittance, and payment of a tax on direct mail.
(1) As used in this section:
(a) “Advertising and promotional direct mail” means printed material:
(i) that meets the definition of direct mail under Section 59-12-102; and
(ii) if the primary purpose of the printed material is to:
(A) attract public attention to a business, organization, person, or product; or
(B) attempt to popularize, secure, or sell financial support for a business, organization, person, or product.
(b) For purposes of Subsection (1)(a), “product” means:
(i) tangible personal property;
(ii) a product transferred electronically; or
(iii) a service.
(2) Notwithstanding Section 59-12-107 and except as provided in Subsection (7), a purchaser of advertising and promotional direct mail may provide to a seller at the time of a transaction:
(a) a form:
(i) prescribed by the commission; and
(ii) indicating that the transaction is a direct mail transaction;
(b) an agreement certificate of exemption indicating that the transaction is a direct mail transaction;
(c) a direct payment permit under Section 59-12-107.1; or
(d) information that indicates the locations of the recipients to which the advertising and promotional direct mail is delivered.
(3) If a seller receives a form, certificate, or permit described in Subsection (2)(a), (b), or (c) from a purchaser:
(a) if the seller acts in the absence of bad faith, the seller:
(i) is not liable to collect or remit agreement sales and use tax for that transaction; and
(ii) shall keep a record of the form, certificate, or permit described in Subsection (2)(a), (b), or (c) for three years after the date the seller files a return with the commission reporting that transaction; and
(b) the purchaser that provides the form, certificate, or permit described in Subsection (2)(a), (b), or (c) shall:
(i) determine the amount of agreement sales and use tax due on the transaction in the location where the advertising and promotional direct mail is delivered; and
(ii) report and remit to the commission the amount described in Subsection (3)(b)(i) in accordance with Section 59-12-107.
(4) A form or certificate described in Subsection (2)(a) or (b) is in effect for all transactions between the seller described in Subsection (3) and the purchaser described in Subsection (3):
(a) beginning on the date the seller receives the form or certificate in accordance with Subsection (2)(a) or (b); and
(b) ending on the date the purchaser revokes the form or certificate in writing.
(5)
(a) If a seller receives the information described in Subsection (2)(d) from a purchaser that indicates the locations of the recipients to which the advertising and promotional direct mail is delivered, the seller shall collect and remit agreement sales and use tax to the commission in accordance with the information the purchaser provides.
(b) If a seller collects and remits agreement sales and use tax to the commission in accordance with Subsection (5)(a), the seller is not liable for any further obligation to collect or remit agreement sales and use tax to the commission on the transaction unless the seller acts in bad faith.
(6) If a purchaser of advertising and promotional direct mail described in Subsection (2) does not provide the seller with the form, certificate, permit, or information described in Subsection (2) at the time of the transaction, the seller shall:
(a) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection 59-12-211(6); and
(b) collect and remit to the commission the amount described in Subsection (6)(a) in accordance with Section 59-12-107.
(7)
(a) Except as provided in Subsection (7)(b), this Subsection (7) applies to direct mail if the direct mail is delivered or distributed:
(i) from a location within the state; and
(ii) to a location within the state.
(b) A purchaser of direct mail may provide a seller with:
(i) a form:
(A) prescribed by the commission; and
(B) indicating that the transaction is a direct mail transaction;
(ii) an agreement certificate of exemption indicating that the transaction is a direct mail transaction; or
(iii) a direct payment permit under Section 59-12-107.1.
(c) If a seller receives a form, certificate, or permit described in Subsection (7)(b) from a purchaser:
(i) if the seller acts in the absence of bad faith, the seller:
(A) is not liable to collect or remit agreement sales and use tax for that transaction; and
(B) shall keep a record of the form, certificate, or permit described in Subsection (7)(b) for three years after the date the seller files a return with the commission reporting the transaction; and
(ii) the purchaser that provides the form, certificate, or permit described in Subsection (7)(b) shall:
(A) determine the amount of agreement sales and use tax due on the transaction in accordance with Section 59-12-211.1; and
(B) report and remit to the commission the amount described in Subsection (7)(c)(ii)(A) in accordance with Section 59-12-107.
(d) Except as provided in Subsection (7)(f), if a purchaser of direct mail described in Subsection (7)(b) does not provide the seller with the form, certificate, or permit described in Subsection (7)(b) at the time of the transaction, the seller shall:
(i) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection 59-12-211(6);
(ii) collect and remit to the commission the amount described in Subsection (7)(d)(i) in accordance with Section 59-12-107; and
(iii) is not liable for any additional sales and use tax under this chapter.
(e) If a seller knows that direct mail will be delivered or distributed to a location in another state, the seller shall:
(i) determine the amount of agreement sales and use tax due on the transaction in accordance with Subsection (5); and
(ii) collect and remit to the commission the amount described in Subsection (7)(e)(i) in accordance with Section 59-12-107.
(f) A seller may:
(i) elect to determine the amount of agreement sales and use tax due on the sale of advertising and promotional direct mail in accordance with Subsection (5) or (6); and
(ii) collect and remit to the commission the amount described in Subsection (7)(f)(i) in accordance with Section 59-12-107.
(8) A form, certificate, or permit described in Subsection (7)(b) is in effect for all transactions between a seller and a purchaser:
(a) beginning on the date the seller receives the form, certificate, or permit in accordance with Subsection (7)(b); and
(b) ending on the date the purchaser revokes the form, certificate, or permit in writing.
(9) This section applies to:
(a) a transaction that is a sale of a service only if the service is an integral part of the production and distribution of direct mail; or
(b) a bundled transaction that includes advertising and promotional direct mail only if the primary purpose of the transaction is the sale of tangible personal property, a product transferred electronically, or a service that is advertising and promotional direct mail.
(10) This section does not apply to a transaction that includes:
(a) the development of billing information; or
(b) the provision of any data processing service that is more than incidental regardless of whether advertising and promotional direct mail is included in the same mailing.

Amended by Chapter 142, 2010 General Session

59-12-124 Certified service provider liability.
(1) Notwithstanding Section 59-12-107 and except as provided in Subsection (2), if a model 1 seller selects a certified service provider as the model 1 seller’s agent:
(a) the certified service provider shall collect and remit an agreement sales and use tax to the commission:
(i) that the model 1 seller would otherwise be required to remit to the commission under this chapter; and
(ii) as provided in this chapter; and
(b) the model 1 seller is not liable for the certified service provider’s failure to collect and remit an agreement sales and use tax to the commission that the model 1 seller would otherwise be required to remit to the commission under this chapter.
(2) The model 1 seller described in Subsection (1):
(a) shall remit to the commission a sales and use tax imposed by this chapter:
(i) on the model 1 seller’s purchases; and
(ii) as provided in this chapter; and
(b) is liable for a sales and use tax liability arising from fraud by the model 1 seller.

Enacted by Chapter 384, 2008 General Session

59-12-125 Seller or certified service provider reliance on commission information.
          A seller or certified service provider is not liable for failing to collect a tax at a tax rate imposed under this part if the seller’s or certified service provider’s failure to collect the tax is as a result of the seller’s or certified service provider’s reliance on incorrect data provided by the commission in a database created by the commission:
(1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2) indicating the taxability of tangible personal property, a product transferred electronically, or a service.

Amended by Chapter 203, 2009 General Session

59-12-126 Certified service provider or model 2 seller reliance on commission certified software.
(1) Except as provided in Subsection (2) and subject to Subsection (4), a certified service provider or model 2 seller is not liable for failing to collect a tax required under this part if:
(a) the certified service provider or model 2 seller relies on software the commission certifies; and
(b) the certified service provider’s or model 2 seller’s failure to collect a tax required under this part is as a result of the seller’s or certified service provider’s reliance on incorrect data:
(i) provided by the commission; or
(ii) in the software the commission certifies.
(2) The relief from liability described in Subsection (1) does not apply if a certified service provider or model 2 seller incorrectly classifies an item or transaction into a product category the commission certifies.
(3) If the taxability of a product category is incorrectly classified in software the commission certifies, the commission shall:
(a) notify a certified service provider or model 2 seller of the incorrect classification of the taxability of a product category in software the commission certifies; and
(b) state in the notice required by Subsection (3)(a) that the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the incorrectly classified product category if the certified service provider or model 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice.
(4) If a certified service provider or model 2 seller fails to correct the taxability of an item or transaction within 10 days after the day on which the certified service provider or model 2 seller receives the notice described in Subsection (3), the certified service provider or model 2 seller is liable for failing to collect the correct amount of tax under this part on the item or transaction.

Enacted by Chapter 384, 2008 General Session

59-12-127 Purchaser relief from liability.
(1)
(a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if:
(i) the purchaser’s seller or certified service provider relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement; or
(ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary;
(C) on a taxing jurisdiction; or
(D) in the taxability matrix the commission provides in accordance with the agreement.
(b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the purchaser’s, the purchaser’s seller’s, or the purchaser’s certified service provider’s reliance on incorrect data provided by the commission is as a result of conduct that is:
(i) fraudulent;
(ii) intentional; or
(iii) willful.
(2) In addition to the relief from a penalty described in Subsection (1), a purchaser is not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part or an underpayment if:
(a) the purchaser’s seller or certified service provider relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from “sales price”; or
(Cc) included in or excluded from a definition; or
(b) the purchaser, regardless of whether the purchaser holds a direct payment permit in accordance with Section 59-12-107.1, relies on:
(i) incorrect data provided by the commission:
(A) on a tax rate;
(B) on a boundary; or
(C) on a taxing jurisdiction; or
(ii) an erroneous classification by the commission:
(A) in the taxability matrix the commission provides in accordance with the agreement; and
(B) with respect to a term:
(I) in the library of definitions; and
(II) that is:
(Aa) listed as taxable or exempt;
(Bb) included in or excluded from “sales price”; or
(Cc) included in or excluded from a definition.

Enacted by Chapter 384, 2008 General Session

59-12-128 Amnesty.
(1) As used in this section, “amnesty” means that a seller is not required to pay the following amounts that the seller would otherwise be required to pay:
(a) a tax, fee, or charge under:
(i)Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii)Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(iii) Section 19-6-714;
(iv) Section 19-6-805;
(v)Chapter 26, Multi-Channel Video or Audio Service Tax Act;
(vi)Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or
(vii) this chapter;
(b) a penalty on a tax, fee, or charge described in Subsection (1)(a); or
(c) interest on a tax, fee, or charge described in Subsection (1)(a).
(2)
(a) Except as provided in Subsections (2)(b) and (3) and subject to Subsections (4) and (5), the commission shall grant a seller amnesty if the seller:
(i) obtains a license under Section 59-12-106; and
(ii) is registered under the agreement.
(b) The commission is not required to grant a seller amnesty under this section beginning 12 months after the date the state becomes a full member under the agreement.
(3) A seller may not receive amnesty under this section for a tax, fee, or charge:
(a) the seller collects;
(b) the seller remits to the commission;
(c) that the seller is required to remit to the commission on the seller’s purchase; or
(d) arising from a transaction that occurs within a time period that is under audit by the commission if:
(i) the seller receives notice of the commencement of the audit prior to obtaining a license under Section 59-12-106; and
(ii)
(A) the audit described in Subsection (3)(d)(i) is not complete; or
(B) the seller has not exhausted all administrative and judicial remedies in connection with the audit described in Subsection (3)(d)(i).
(4)
(a) Except as provided in Subsection (4)(b), amnesty the commission grants to a seller under this section:
(i) applies to the time period during which the seller is not licensed under Section 59-12-106; and
(ii) remains in effect if, for a period of three years, the seller:
(A) remains registered under the agreement;
(B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge described in Subsection (1)(a); and
(C) remits to the commission the taxes, fees, and charges the seller collects in accordance with Subsection (4)(a)(ii)(B).
(b) The commission may not grant a seller amnesty under this section if, with respect to a tax, fee, or charge for which the seller would otherwise be granted amnesty under this section, the seller commits:
(i) fraud; or
(ii) an intentional misrepresentation of a material fact.
(5)
(a) If a seller does not meet a requirement of Subsection (4)(a)(ii), the commission shall require the seller to pay the amounts described in Subsection (1) that the seller would have otherwise been required to pay.
(b) Notwithstanding Section 59-1-1410, for purposes of requiring a seller to pay an amount in accordance with Subsection (5)(a), the time period for the commission to make an assessment under Section 59-1-1410 is extended for a time period beginning on the date the seller does not meet a requirement of Subsection (4)(a)(ii) and ends three years after that date.

Amended by Chapter 294, 2020 General Session

59-12-129 Monetary allowance under the agreement.
          The commission shall provide a monetary allowance to a seller or certified service provider as determined:
(1) by the governing board of the agreement; and
(2) in accordance with the agreement.

Enacted by Chapter 384, 2008 General Session