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[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 34 Enrolled
AN ACT RELATING TO REVENUE AND TAXATION AND HIGHER EDUCATION;
PROVIDING A SALES TAX EXEMPTION FOR AMOUNTS PAID FOR ADMISSION TO
ATHLETIC EVENTS AT CERTAIN INSTITUTIONS OF HIGHER EDUCATION;
PRESCRIBING FOR STATE INSTITUTIONS THAT CERTAIN REVENUES BE USED
FOR TITLE IX PURPOSES; REPEALING OBSOLETE LANGUAGE; MAKING
TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
59-12-102, as last amended by Chapters 209, 299 and 344, Laws of Utah 1997
59-12-103, as last amended by Chapters 261 and 272, Laws of Utah 1997
59-12-104, as last amended by Chapters 218, 299, 344 and 378, Laws of Utah 1997
59-12-105, as last amended by Chapter 296, Laws of Utah 1996
53B-7-103.5, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53B-7-103.5 is enacted to read:
53B-7-103.5. Uses of revenue for athletic gender equity.
Beginning on July 1, 1998, a state institution of higher education shall annually use for the
purposes described in Title IX of the Education Amendments of 1972, 20 U.S.C. Sec. 1681 et seq,
an amount of revenue equal to the total amount of sales and use tax revenue collected under Title
59, Chapter 12. Sales and Use Tax Act:
(1) during the one-year period beginning on July 1, 1997, and ending on June 30, 1998;
(2) on amounts paid for admission to athletic events at the institution of higher education.
Section 2. Section 59-12-102 is amended to read:
As used in this chapter:
(1) (a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include annual membership dues to private
(2) "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 (IRP) and
the International Fuel Tax Agreement (IFTA);
(b) in the case of aircraft, the holder of a Federal Aviation Administration (FAA) operating
certificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
the holder of a certificate issued by the United States Interstate Commerce Commission.
(3) (a) For purposes of Subsection 59-12-104 [
(i) a coin-operated amusement, skill, or ride device;
(ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
(iii) includes a music machine, pinball machine, billiard machine, video game machine,
arcade machine, and a mechanical or electronic skill game or ride.
(b) For purposes of Subsection 59-12-104 [
does not mean a coin-operated amusement device possessing a coinage mechanism that:
(i) accepts and registers multiple denominations of coins; and
(ii) allows the vendor to collect the sales and use tax at the time an amusement device is
activated and operated by a person inserting coins into the device.
(4) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels that
does not constitute industrial use under Subsection (10) or residential use under Subsection (17).
(5) (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 who, 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
(ii) For purposes of Subsection (5)(b)(i), in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, the commission may make rules defining what constitutes a
person's place of employment.
(6) "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.
(7) "Construction materials" means any tangible personal property that will be converted into
(8) (a) "Fundraising sales" means sales:
(i) (A) made by a public or private elementary or secondary school; or
(B) made by a public or private elementary or secondary school student, grades kindergarten
(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 (8)(a)(iii), "officially sanctioned school activity" means a
(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 revenues from which are deposited in a dedicated account controlled
by the school or school district.
(9) (a) "Home medical equipment and supplies" means equipment and supplies that:
(i) a licensed physician prescribes or authorizes in writing as necessary for the treatment of
a medical illness or injury or as necessary to mitigate an impairment resulting from illness or injury;
(ii) are used exclusively by the person for whom they are prescribed to serve a medical
(iii) are listed as eligible for payment under Title 18 of the federal Social Security Act or
under the state plan for medical assistance under Title 19 of the federal Social Security Act.
(b) "Home medical equipment and supplies" does not include:
(i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
defined in Subsection (9)(c), doctor, nurse, or other health care provider for use in their professional
(ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
(iii) hearing aids or hearing aid accessories.
(c) For purposes of Subsection (9)(b)(i), "health care facility" includes:
(i) a clinic;
(ii) a doctor's office; and
(iii) a health care facility as defined in Section 26-21-2 .
(10) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
(a) mining or extraction of minerals;
(b) 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 Subsection 41-1a-102 (23) that are not registered
under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities; and
(c) manufacturing tangible personal property at an establishment described in 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.
(11) "Manufactured home" means any manufactured home or mobile home as defined in
Title 58, Chapter 56, Utah Uniform Building Standards Act.
(12) For purposes of Subsection 59-12-104 [
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
Classification Manual of the federal Executive Office of the President, Office of Management and
(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:
(C) nonferrous metal;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (12)(b)(i) would otherwise be made with nonrecycled
(13) (a) "Medicine" means:
(i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by
a person authorized to prescribe treatments and dispensed on prescription filled by a registered
pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
(ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed
for that patient and dispensed by a registered pharmacist or administered under the direction of a
(iii) any oxygen or stoma supplies prescribed by a physician or administered under the
direction of a physician or paramedic.
(b) "Medicine" does not include:
(i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or
(ii) any alcoholic beverage.
(14) (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
(15) "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.
(16) "Purchase price" means the amount paid or charged for tangible personal property or
any other taxable item or service under Subsection 59-12-103 (1), excluding only cash discounts
taken or any excise tax imposed on the purchase price by the federal government.
(17) "Residential use" means the use in or around a home, apartment building, sleeping
quarters, and similar facilities or accommodations.
(18) (a) "Retail sale" means any sale within the state of tangible personal property or any
other taxable item or service under Subsection 59-12-103 (1), other than resale of such property, item,
or service by a retailer or wholesaler to a user or consumer.
(b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry, eggs,
or dairy products to consumers if the sales have an average monthly sales value of $125 or more.
(c) "Retail sale" does not include, and no additional sales or use tax shall be assessed against,
those transactions where a purchaser of tangible personal property pays applicable sales or use taxes
on its initial nonexempt purchases of property and then enters into a sale-leaseback transaction by
which title to such property is transferred by the purchaser-lessee to a lessor for consideration,
(i) the transaction is intended as a form of financing for the property to the purchaser-lessee;
(ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required to
capitalize the subject property for financial reporting purposes, and account for the lease payments
as payments made under a financing arrangement.
(19) (a) "Retailer" means any person engaged in a regularly organized retail business in
tangible personal property or any other taxable item or service 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.
(c) "Retailer" includes any person who engages in regular or systematic solicitation of a
consumer market in this state by the distribution of catalogs, periodicals, advertising flyers, or other
advertising, or by means of print, radio or television media, by mail, telegraphy, telephone, computer
data base, cable, optic, microwave, or other communication system.
(d) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other growers
or agricultural producers producing and doing business on their own premises, except those who are
regularly engaged in the business of buying or selling for a profit.
(e) For purposes of this chapter the commission may regard as retailers the following if they
determine it is necessary for the efficient administration of this chapter: salesmen, representatives,
peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or employers under
whom they operate or from whom they obtain the tangible personal property sold by them,
irrespective of whether they are making sales on their own behalf or on behalf of these dealers,
distributors, supervisors, or employers, except that:
(i) a printer's facility with which a retailer has contracted for printing shall not be considered
to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
(ii) 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 deemed 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
(20) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise, in any
manner, of tangible personal property or any other taxable item or service under Subsection
59-12-103 (1), for a consideration. It includes:
(a) installment and credit sales;
(b) any closed transaction constituting a sale;
(c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
(d) any transaction if the possession of property is transferred but the seller retains the title
as security for the payment of the price; and
(e) 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.
(21) (a) "Sales relating to schools" means sales by a public school district or public or private
elementary or secondary school, grades kindergarten through 12, that are directly related to the
school's or school district's educational functions or activities and include:
(i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
(ii) the sale of clothing that:
(A) a student is specifically required to wear as a condition of participation in a
school-related event or activity; and
(B) is not readily adaptable to general or continued usage to the extent that it takes the place
of ordinary clothing;
(iii) sales of food if the net or gross revenues generated by the food sales are deposited into
a school district fund or school fund dedicated to school meals; and
(iv) transportation charges for official school activities.
(b) "Sales relating to schools" does not include:
(i) gate receipts;
(ii) special event admission fees;
(iii) bookstore sales of items that are not educational materials or supplies; and
(iv) except as provided in Subsection(21)(a)(ii), clothing.
(22) "State" means the state of Utah, its departments, and agencies.
(23) "Storage" means any keeping or retention of tangible personal property or any other
taxable item or service under Subsection 59-12-103 (1), in this state for any purpose except sale in
the regular course of business.
(24) (a) "Tangible personal property" means:
(i) all goods, wares, merchandise, produce, and commodities;
(ii) all tangible or corporeal things and substances which are dealt in or capable of being
possessed or exchanged;
(iii) water in bottles, tanks, or other containers; and
(iv) all other physically existing articles or things, including property severed from real
(b) "Tangible personal property" does not include:
(i) real estate or any interest or improvements in real estate;
(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
(iii) insurance certificates or policies;
(iv) personal or governmental licenses;
(v) water in pipes, conduits, ditches, or reservoirs;
(vi) currency and coinage constituting legal tender of the United States or of a foreign
(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
constituting legal tender of any nation, with a gold, silver, or platinum content of not less than 80%.
(25) (a) "Use" means the exercise of any right or power over tangible personal property
under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property, item, or
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
regular course of business and held for resale.
(26) "Vehicle" means any aircraft, as defined in Section 2-1-1 ; any vehicle, as defined in
Section 41-1a-102 ; any off-highway vehicle, as defined in Section 41-22-2 ; and any vessel, as
defined in Section 41-1a-102 ; that is required to be titled, registered, or both. "Vehicle" for purposes
of Subsection 59-12-104 [
equipment, or other railroad rolling stock.
(27) "Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging vehicles as defined in Subsection (26).
(28) (a) "Vendor" means:
(i) any person receiving any payment or consideration upon a sale of tangible personal
property or any other taxable item or service under Subsection 59-12-103 (1), or to whom such
payment or consideration is payable; and
(ii) any person who engages in regular or systematic solicitation of a consumer market in
this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or by
means of print, radio or television media, by mail, telegraphy, telephone, computer data base, cable,
optic, microwave, or other communication system.
(b) "Vendor" does not mean a printer's facility described in Subsection (19)(e).
Section 3. Section 59-12-103 is amended to read:
59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
(1) There is levied a tax on the purchaser for the amount paid or charged for the following:
(a) retail sales of tangible personal property made within the state;
(b) amount paid to common carriers or to telephone or telegraph corporations, whether the
corporations are municipally or privately owned, for:
(i) all transportation;
(ii) intrastate telephone service; or
(iii) telegraph service;
(c) gas, electricity, heat, coal, fuel oil, or other fuels sold for commercial use;
(d) gas, electricity, heat, coal, fuel oil, or other fuels sold for residential use;
(e) meals sold;
(f) (i) 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 and wrestling matches, closed
circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and 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
(ii) the tax imposed on admission or user fees in Subsection (1)(f)(i) does not affect an
entity's sales tax exempt status under Section 59-12-104.1 ;
(g) services for repairs or renovations of tangible personal property or services to install
tangible personal property in connection with other tangible personal property;
(h) except as provided in Subsection 59-12-104 [
(i) tourist home, hotel, motel, or trailer court accommodations and services for less than 30
(j) laundry and dry cleaning services;
(k) leases and rentals of tangible personal property if the property situs is in this state, if the
lessee took possession in this state, or if the property is stored, used, or otherwise consumed in this
(l) tangible personal property stored, used, or consumed in this state.
(2) Except for Subsection (1)(d), the rates of the tax levied under Subsection (1) shall be:
(a) 5% through June 30, 1994;
(b) 4.875% beginning on July 1, 1994 through June 30, 1997; and
(c) 4.75% beginning on July 1, 1997.
(3) The rates of the tax levied under Subsection (1)(d) shall be 2% from and after January
(4) (a) From January 1, 1990, through December 31, 1999, there shall be deposited in an
Olympics special revenue fund or funds as determined by the Division of Finance under Section
51-5-4 , for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
(i) the amount of sales and use tax generated by a 1/64% tax rate on the taxable items and
services under Subsection (1);
(ii) the amount of revenue generated by a 1/64% tax rate under Section 59-12-204 or Section
59-12-205 on the taxable items and services under Subsection (1); and
(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
(b) These funds shall be used:
(i) by the Utah Sports Authority as follows:
(A) to the extent funds are available, to transfer directly to a debt service fund or to
otherwise reimburse to the state any amount expended on debt service or any other cost of any bonds
issued by the state to construct any public sports facility as defined in Section 63A-7-103 ;
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the right
to host the Winter Olympic Games; and
(C) the Utah Sports Authority may not expend, loan, or pledge in the aggregate more than
$59,000,000 of sales and use tax deposited into the Olympics special revenue fund under Subsection
(4)(a) unless the Legislature appropriates additional funds from the Olympics special revenue fund
to the Utah Sports Authority; or
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
Coordinator under Subsection 63A-10-103 (3), except that the salary, benefits, or administrative costs
may not be paid from the sales and tax revenues generated by municipalities or counties and
deposited under Subsection (4)(a)(ii).
(c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103 (3)
is not considered an expenditure of the Utah Sports Authority.
(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
appropriated funds unless the authority:
(i) contracts in writing for the full reimbursement of the monies to the Olympics special
revenue fund by a public sports entity or other person benefitting from the expenditure; and
(ii) obtains a security interest that secures payment or performance of the obligation to
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
(f) Any monies in the Olympics special revenue fund or funds as of October 1, 2002, shall
be dispersed as follows:
(i) 50% shall be deposited into the General Fund; and
(ii) 50% to counties, cities, or towns in proportion to the sales and use taxes generated by
the county, city, or town and deposited under Subsection (4)(a)(ii).
(5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8% tax
rate on the taxable items and services under Subsection (1) shall be used as follows:
(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
through (f); and
(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
(b) Five hundred thousand dollars each year shall be transferred to the Agriculture Resource
Development Fund created in Section 4-18-6 .
(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
transferred to the Water Resources Conservation and Development Fund created in Section 73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund under
Section 73-10-24 , the fund may also be used to:
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the funds
made available to the Division of Water Resources under this section, of potential project features
of the Central Utah Project;
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
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;
(iii) fund state required dam safety improvements; and
(iv) protect the state's interest in interstate water compact allocations, including the hiring
of technical and legal staff.
(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2 .
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate shall
be transferred to 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.
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
to the contributing funds on a prorated basis.
(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
account to be expended as provided in Title 27, Chapter 12, Article 11, Finances, except as provided
in Subsection (5)(h).
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
of Transportation for the State Park Access Highways Improvement Program. The remaining
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by the
Department of Transportation at the request of local governments.
(6) (a) Beginning on January 1, 2000, the Division of Finance shall deposit into the
Centennial Highway Trust Fund created in Section 63-49-22 a portion of the state sales and use tax
under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the taxable
items and services under Subsection (1).
(b) Beginning on January 1, 2000, the revenues generated by the 1/64% tax rate:
(i) retained under Subsection 59-12-204 (7)(a) shall be retained by the counties, cities, or
towns as provided in Section 59-12-204 ; and
(ii) retained under Subsection 59-12-205 (4)(a) shall be distributed to each county, city, and
town as provided in Section 59-12-205 .
Section 4. Section 59-12-104 is amended to read:
The following sales and uses are exempt from the taxes imposed by this chapter:
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax under
Title 59, Chapter 13, Motor and Special Fuel Tax Act;
(2) sales to the state, its institutions, and its political subdivisions; however, this exemption
does not apply to sales of construction materials except:
(a) 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
(b) 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
proceeds of each sale do not exceed $1 if the vendor or operator of the vending machine reports an
amount equal to 150% of the cost of items as goods consumed;
commercial airline carriers for in-flight consumption;
interstate or foreign commerce;
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
exhibitor, distributor, or commercial television or radio broadcaster;
laundry or dry cleaning machine;
religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
of this state which are made to bona fide nonresidents of this state and are not afterwards registered
or used in this state except as necessary to transport them to the borders of this state;
incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
(a) churches, charitable institutions, and institutions of higher education, if the meals are not
available to the general public; and
(b) inpatient meals provided at medical or nursing facilities;
the sale of vehicles or vessels 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 or other written evidence of value of the vehicle or vessel being sold; or
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
market value of the vehicle or vessel being sold as determined by the commission;
(i) machinery and equipment:
(A) used in the manufacturing process;
(B) having an economic life of three or more years; and
(I) to manufacture an item sold as tangible personal property; and
(II) in new or expanding operations in a manufacturing facility in the state; and
(ii) subject to the provisions of Subsection [
(A) have an economic life of three or more years;
(B) are used in the manufacturing process in a manufacturing facility in the state;
(C) are used to replace or adapt an existing machine to extend the normal estimated useful
life of the machine; and
(D) do not include repairs and maintenance;
(b) the rates for the exemption under Subsection [
(i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
(ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
(iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection [
(14)(a)(ii) is exempt;
(c) for purposes of this subsection, the commission shall by rule define the terms "new or
expanding operations" and "establishment"; and
(d) on or before October 1, 1991, and every five years after October 1, 1991, the commission
(i) review the exemptions described in Subsection [
to the Revenue and Taxation Interim Committee concerning whether the exemptions should be
continued, modified, or repealed; and
(ii) include in its report:
(A) the cost of the exemptions;
(B) the purpose and effectiveness of the exemptions; and
(C) the benefits of the exemptions to the state;
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, but only if, under the
terms of that contract or subcontract, title to the tooling and equipment is vested in the United States
government as evidenced by a government identification tag placed on the tooling and equipment
or by listing on a government-approved property record if a tag is impractical;
(a) freight by common carriers; and
(b) people by taxicabs as described in SIC Code 4121 of the Standard Industrial
Classification Manual of the federal Executive Office of the President, Office of Management and
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:
(a) the bill of sale or other written evidence of value of the vehicle being sold and the vehicle
being traded in; or
(b) 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
commercial production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays
and insecticides used in the processing of the products;
in farming operations, including sales of irrigation equipment and supplies used for agricultural
production purposes, whether or not they become part of real estate and whether or not installed by
farmer, contractor, or subcontractor, but not sales of:
(i) machinery, equipment, materials, and supplies used in a manner that is incidental to
farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
janitorial equipment and supplies;
(ii) tangible personal property used in any activities other than farming, such as office
equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
research, or in transportation; or
(iii) any vehicle required to be registered by the laws of this state, without regard to the use
to which the vehicle is put;
(b) sales of hay;
or other agricultural produce if sold by a producer during the harvest season;
Program, 7 U.S.C. Sec. 2011 et seq.;
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;
or enjoyment while within the state, except property purchased for use in Utah by a nonresident
living and working in Utah at the time of purchase;
in its original form or as an ingredient or component part of a manufactured or compounded product;
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
imposed by this part and Part 2, and no adjustment is allowed if the tax paid was greater than the tax
imposed by this part and Part 2;
person for use in compounding a service taxable under the subsections;
the special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
electric motors, and other replacement parts used in the furnaces, mills, and 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; or
(b) contracts entered into or orders placed on or before January 1, 1996, to purchase or lease
an item described in Subsection [
(i) legal obligation to purchase or lease an item described in Subsection [
(ii) sale or lease under Section 59-12-102 on or before June 30, 1997;
Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
state and are not thereafter registered or used in this state except as necessary to transport them to
the borders of this state;
subsequently shipped outside the state and incorporated pursuant to contract into and becomes a part
of real property located outside of this state, except to the extent that the other state or political entity
imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the
other state or political entity allows a credit for taxes imposed by this chapter;
where a sales or use tax is not imposed, even if the title is passed in Utah;
under the authority of Title 17A, Chapter 2, Part 10, Utah Public Transit [
100% of the sales price of any used manufactured home;
in Subsection 63-11-38 (8); and
(b) the commission shall by rule determine the method for calculating sales exempt under
(a) snowmaking equipment;
(b) ski slope grooming equipment; and
(c) passenger tramways as defined in Subsection 63-11-38 (8);
recreation a coin-operated amusement device as defined in Subsection 59-12-102 (3);
of higher education as defined in Section 53B-3-102 , of:
(a) photocopies; or
(b) other copies of records held or maintained by the state or a political subdivision of the
(i) to a person providing intrastate transportation to an employer's employee to or from the
employee's primary place of employment;
(ii) by an:
(A) employee; or
(B) employer; and
(iii) pursuant to a written contract between:
(A) the employer; and
(B) (I) the employee; or
(II) a person providing transportation to the employer's employee; and
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may for purposes of Subsection [
employee's primary place of employment[
(47) 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
Section 5. Section 59-12-105 is amended to read:
59-12-105. Exempt sales to be reported.
The amount of sales or uses exempt under Subsections 59-12-104 [
case may be. Upon failure by the owner, vendor, or purchaser to report the full amount of the
exemptions granted under Subsections 59-12-104 [
on the original filed return, the commission shall impose a penalty equal to 10% of the sales or use
tax that would have been imposed if the exemption had not applied. The penalty shall not be
imposed if an amended return containing the amount of the exemption is filed prior to notice of audit
by the tax commission to the owner, vendor, or purchaser.
Section 6. Effective date.
This act takes effect on July 1, 1998.
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