S.B. 195

This document includes House Floor Amendments incorporated into the bill on Tue, Mar 2, 2004 at 3:16 PM by kholt. --> 1

TAXATION OF MULTI-CHANNEL VIDEO OR
2 AUDIO SERVICE
3 2004 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Michael G. Waddoups
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Sales and Use Tax Act to modify the transactions that are subject
10 to sales and use tax and enacts the Multi-Channel Video or Audio Service Tax Act.
11 Highlighted Provisions:
12 This bill:
13 . deletes certain definitions;
14 . defines terms;
15 . removes certain amounts paid or charged for multi-channel video or audio service
16 from the sales and use tax base;
17 . imposes a state tax on amounts paid or charged for multi-channel video or audio
18 service, including:
19 . providing for the collection of the tax, assessments, audits, and imposition of
20 penalties and interest by the State Tax Commission;
21 . providing that the tax will be deposited into the General Fund; and
22 . enacting record keeping requirements for a multi-channel video or audio service
23 provider;
24 . requires the Revenue and Taxation Interim Committee to conduct a study on
25 amounts paid or charged for multi-channel video or audio service by a
26 multi-channel video or audio service provider; and
27 . makes technical changes.

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- 2 - 28 Monies Appropriated in this Bill:
29 None
30 Other Special Clauses:
31 This bill provides an effective date.
32 Utah Code Sections Affected:
33 AMENDS:
34 59-12-102 (Effective 07/01/04), as last amended by Chapter 312, Laws of Utah 2003
35 59-12-103 (Superseded 07/01/04), as last amended by Chapter 318, Laws of Utah 2003
36 59-12-103 (Effective 07/01/04), as last amended by Chapter 312, Laws of Utah 2003
37 ENACTS:
38 59-26-101, Utah Code Annotated 1953
39 59-26-102, Utah Code Annotated 1953
40 59-26-103, Utah Code Annotated 1953
41 59-26-104, Utah Code Annotated 1953
42 59-26-105, Utah Code Annotated 1953
43 59-26-106, Utah Code Annotated 1953
44 59-26-107, Utah Code Annotated 1953
45 59-26-108, Utah Code Annotated 1953
46 59-26-109, Utah Code Annotated 1953
47 59-26-110, Utah Code Annotated 1953
48
49 Be it enacted by the Legislature of the state of Utah:
50 Section 1. Section 59-12-102 (Effective 07/01/04) is amended to read:
51 59-12-102 (Effective 07/01/04). Definitions.
52 As used in this chapter:
53 (1) (a) "Admission or user fees" includes season passes.
54 (b) "Admission or user fees" does not include annual membership dues to private
55 organizations.
56 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
57 Section 59-12-102.1 .
58 (3) "Agreement combined tax rate" means the sum of the tax rates:

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- 3 - 59 (a) listed under Subsection (4); and
60 (b) that are imposed within a local taxing jurisdiction.
61 (4) "Agreement sales and use tax" means a tax imposed under:
62 (a) Subsection 59-12-103 (2)(a)(i);
63 (b) Section 59-12-204 ;
64 (c) Section 59-12-401 ;
65 (d) Section 59-12-402 ;
66 (e) Section 59-12-501 ;
67 (f) Section 59-12-502 ;
68 (g) Section 59-12-703 ;
69 (h) Section 59-12-802 ;
70 (i) Section 59-12-804 ;
71 (j) Section 59-12-1001 ;
72 (k) Section 59-12-1102 ;
73 (l) Section 59-12-1302 ; or
74 (m) Section 59-12-1402 .
75 (5) "Alcoholic beverage" means a beverage that:
76 (a) is suitable for human consumption; and
77 (b) contains .5% or more alcohol by volume.
78 (6) "Area agency on aging" is as defined in Section 62A-3-101 .
79 (7) "Authorized carrier" means:
80 (a) in the case of vehicles operated over public highways, the holder of credentials
81 indicating that the vehicle is or will be operated pursuant to both the International Registration
82 Plan and the International Fuel Tax Agreement;
83 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
84 certificate or air carrier's operating certificate; or
85 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
86 stock, the holder of a certificate issued by the United States Surface Transportation Board.
87 (8) "Certified automated system" means software certified by the governing board of
88 the agreement in accordance with Section 59-12-102.1 that:
89 (a) calculates the agreement sales and use tax imposed within a local taxing

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- 4 - 90 jurisdiction:
91 (i) on a transaction; and
92 (ii) in the states that are members of the agreement;
93 (b) determines the amount of agreement sales and use tax to remit to a state that is a
94 member of the agreement; and
95 (c) maintains a record of the transaction described in Subsection (8)(a)(i).
96 (9) "Certified service provider" means an agent certified:
97 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
98 and
99 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
100 use tax.
101 (10) (a) Subject to Subsection (10)(b), "clothing" means all human wearing apparel
102 suitable for general use.
103 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
104 commission shall make rules:
105 (i) listing the items that constitute "clothing"; and
106 (ii) that are consistent with the list of items that constitute "clothing" under the
107 agreement.
108 (11) (a) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device"
109 means:
110 (i) a coin-operated amusement, skill, or ride device;
111 (ii) that is not controlled through seller-assisted, over-the-counter, sales of tokens; and
112 (iii) includes a music machine, pinball machine, billiard machine, video game machine,
113 arcade machine, and a mechanical or electronic skill game or ride.
114 (b) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device" does
115 not mean a coin-operated amusement device possessing a coinage mechanism that:
116 (i) accepts and registers multiple denominations of coins; and
117 (ii) allows the seller to collect the sales and use tax at the time an amusement device is
118 activated and operated by a person inserting coins into the device.
119 (12) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
120 fuels that does not constitute industrial use under Subsection (30) or residential use under

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- 5 - 121 Subsection [(54)] (53).
122 (13) (a) "Common carrier" means a person engaged in or transacting the business of
123 transporting passengers, freight, merchandise, or other property for hire within this state.
124 (b) (i) "Common carrier" does not include a person who, at the time the person is
125 traveling to or from that person's place of employment, transports a passenger to or from the
126 passenger's place of employment.
127 (ii) For purposes of Subsection (13)(b)(i), in accordance with Title 63, Chapter 46a,
128 Utah Administrative Rulemaking Act, the commission may make rules defining what
129 constitutes a person's place of employment.
130 (14) "Component part" includes:
131 (a) poultry, dairy, and other livestock feed, and their components;
132 (b) baling ties and twine used in the baling of hay and straw;
133 (c) fuel used for providing temperature control of orchards and commercial
134 greenhouses doing a majority of their business in wholesale sales, and for providing power for
135 off-highway type farm machinery; and
136 (d) feed, seeds, and seedlings.
137 (15) "Computer" means an electronic device that accepts information:
138 (a) (i) in digital form; or
139 (ii) in a form similar to digital form; and
140 (b) manipulates that information for a result based on a sequence of instructions.
141 (16) "Computer software" means a set of coded instructions designed to cause:
142 (a) a computer to perform a task; or
143 (b) automatic data processing equipment to perform a task.
144 (17) "Construction materials" means any tangible personal property that will be
145 converted into real property.
146 (18) "Delivered electronically" means delivered to a purchaser by means other than
147 tangible storage media.
148 (19) (a) "Delivery charge" means a charge:
149 (i) by a seller of:
150 (A) tangible personal property; or
151 (B) services; and

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- 6 - 152 (ii) for preparation and delivery of the tangible personal property or services described
153 in Subsection (19)(a)(i) to a location designated by the purchaser.
154 (b) "Delivery charge" includes a charge for the following:
155 (i) transportation;
156 (ii) shipping;
157 (iii) postage;
158 (iv) handling;
159 (v) crating; or
160 (vi) packing.
161 (20) "Dietary supplement" means a product, other than tobacco, that:
162 (a) is intended to supplement the diet;
163 (b) contains one or more of the following dietary ingredients:
164 (i) a vitamin;
165 (ii) a mineral;
166 (iii) an herb or other botanical;
167 (iv) an amino acid;
168 (v) a dietary substance for use by humans to supplement the diet by increasing the total
169 dietary intake; or
170 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
171 described in Subsections (20)(b)(i) through (v);
172 (c) (i) except as provided in Subsection (20)(c)(ii), is intended for ingestion in:
173 (A) tablet form;
174 (B) capsule form;
175 (C) powder form;
176 (D) softgel form;
177 (E) gelcap form; or
178 (F) liquid form; or
179 (ii) notwithstanding Subsection (20)(c)(i), if the product is not intended for ingestion in
180 a form described in Subsections (20)(c)(i)(A) through (F), is not represented:
181 (A) as conventional food; and
182 (B) for use as a sole item of:

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- 7 - 183 (I) a meal; or
184 (II) the diet; and
185 (d) is required to be labeled as a dietary supplement:
186 (i) identifiable by the "Supplemental Facts" box found on the label; and
187 (ii) as required by 21 C.F.R. Sec. 101.36.
188 (21) (a) "Direct mail" means printed material delivered or distributed by United States
189 mail or other delivery service:
190 (i) to:
191 (A) a mass audience; or
192 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
193 (ii) if the cost of the printed material is not billed directly to the recipients.
194 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
195 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
196 (c) "Direct mail" does not include multiple items of printed material delivered to a
197 single address.
198 (22) (a) "Drug" means a compound, substance, or preparation, or a component of a
199 compound, substance, or preparation that is:
200 (i) recognized in:
201 (A) the official United States Pharmacopoeia;
202 (B) the official Homeopathic Pharmacopoeia of the United States;
203 (C) the official National Formulary; or
204 (D) a supplement to a publication listed in Subsections (22)(a)(i)(A) through (C);
205 (ii) intended for use in the:
206 (A) diagnosis of disease;
207 (B) cure of disease;
208 (C) mitigation of disease;
209 (D) treatment of disease; or
210 (E) prevention of disease; or
211 (iii) intended to affect:
212 (A) the structure of the body; or
213 (B) any function of the body.

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- 8 - 214 (b) "Drug" does not include:
215 (i) food and food ingredients;
216 (ii) a dietary supplement;
217 (iii) an alcoholic beverage; or
218 (iv) a prosthetic device.
219 (23) (a) Except as provided in Subsection (23)(c), "durable medical equipment" means
220 equipment that:
221 (i) can withstand repeated use;
222 (ii) is primarily and customarily used to serve a medical purpose;
223 (iii) generally is not useful to a person in the absence of illness or injury;
224 (iv) is not worn in or on the body; and
225 (v) is listed as eligible for payment under:
226 (A) Title XVIII of the federal Social Security Act; or
227 (B) the state plan for medical assistance under Title XIX of the federal Social Security
228 Act.
229 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
230 equipment described in Subsection (23)(a).
231 (c) Notwithstanding Subsection (23)(a), "durable medical equipment" does not include
232 mobility enhancing equipment.
233 (24) "Electronic" means:
234 (a) relating to technology; and
235 (b) having:
236 (i) electrical capabilities;
237 (ii) digital capabilities;
238 (iii) magnetic capabilities;
239 (iv) wireless capabilities;
240 (v) optical capabilities;
241 (vi) electromagnetic capabilities; or
242 (vii) capabilities similar to Subsections (24)(b)(i) through (vi).
243 (25) (a) "Food and food ingredients" means substances:
244 (i) regardless of whether the substances are in:

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- 9 - 245 (A) liquid form;
246 (B) concentrated form;
247 (C) solid form;
248 (D) frozen form;
249 (E) dried form; or
250 (F) dehydrated form; and
251 (ii) that are:
252 (A) sold for:
253 (I) ingestion by humans; or
254 (II) chewing by humans; and
255 (B) consumed for the substance's:
256 (I) taste; or
257 (II) nutritional value.
258 (b) "Food and food ingredients" does not include:
259 (i) an alcoholic beverage;
260 (ii) tobacco; or
261 (iii) prepared food.
262 (26) (a) "Fundraising sales" means sales:
263 (i) (A) made by a school; or
264 (B) made by a school student;
265 (ii) that are for the purpose of raising funds for the school to purchase equipment,
266 materials, or provide transportation; and
267 (iii) that are part of an officially sanctioned school activity.
268 (b) For purposes of Subsection (26)(a)(iii), "officially sanctioned school activity"
269 means a school activity:
270 (i) that is conducted in accordance with a formal policy adopted by the school or school
271 district governing the authorization and supervision of fundraising activities;
272 (ii) that does not directly or indirectly compensate an individual teacher or other
273 educational personnel by direct payment, commissions, or payment in kind; and
274 (iii) the net or gross revenues from which are deposited in a dedicated account
275 controlled by the school or school district.

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- 10 - 276 (27) "Governing board of the agreement" means the governing board of the agreement
277 that is:
278 (a) authorized to administer the agreement; and
279 (b) established in accordance with the agreement.
280 (28) (a) "Hearing aid" means:
281 (i) an instrument or device having an electronic component that is designed to:
282 (A) (I) improve impaired human hearing; or
283 (II) correct impaired human hearing; and
284 (B) (I) be worn in the human ear; or
285 (II) affixed behind the human ear;
286 (ii) an instrument or device that is surgically implanted into the cochlea; or
287 (iii) a telephone amplifying device.
288 (b) "Hearing aid" does not include:
289 (i) except as provided in Subsection (28)(a)(i)(B) or (28)(a)(ii), an instrument or device
290 having an electronic component that is designed to be worn on the body;
291 (ii) except as provided in Subsection (28)(a)(iii), an assistive listening device or system
292 designed to be used by one individual, including:
293 (A) a personal amplifying system;
294 (B) a personal FM system;
295 (C) a television listening system; or
296 (D) a device or system similar to a device or system described in Subsections
297 (28)(b)(ii)(A) through (C); or
298 (iii) an assistive listening device or system designed to be used by more than one
299 individual, including:
300 (A) a device or system installed in:
301 (I) an auditorium;
302 (II) a church;
303 (III) a conference room;
304 (IV) a synagogue; or
305 (V) a theater; or
306 (B) a device or system similar to a device or system described in Subsections

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- 11 - 307 (28)(b)(iii)(A)(I) through (V).
308 (29) (a) "Hearing aid accessory" means a hearing aid:
309 (i) component;
310 (ii) attachment; or
311 (iii) accessory.
312 (b) "Hearing aid accessory" includes:
313 (i) a hearing aid neck loop;
314 (ii) a hearing aid cord;
315 (iii) a hearing aid ear mold;
316 (iv) hearing aid tubing;
317 (v) a hearing aid ear hook; or
318 (vi) a hearing aid remote control.
319 (c) "Hearing aid accessory" does not include:
320 (i) a component, attachment, or accessory designed to be used only with an:
321 (A) instrument or device described in Subsection (28)(b)(i); or
322 (B) assistive listening device or system described in Subsection (28)(b)(ii) or (iii); or
323 (ii) a hearing aid battery.
324 (30) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
325 other fuels:
326 (a) in mining or extraction of minerals;
327 (b) in agricultural operations to produce an agricultural product up to the time of
328 harvest or placing the agricultural product into a storage facility, including:
329 (i) commercial greenhouses;
330 (ii) irrigation pumps;
331 (iii) farm machinery;
332 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
333 registered under Title 41, Chapter 1a, Part 2, Registration; and
334 (v) other farming activities;
335 (c) in manufacturing tangible personal property at an establishment described in SIC
336 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
337 Executive Office of the President, Office of Management and Budget; or

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- 12 - 338 (d) by a scrap recycler if:
339 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
340 one or more of the following items into prepared grades of processed materials for use in new
341 products:
342 (A) iron;
343 (B) steel;
344 (C) nonferrous metal;
345 (D) paper;
346 (E) glass;
347 (F) plastic;
348 (G) textile; or
349 (H) rubber; and
350 (ii) the new products under Subsection (30)(d)(i) would otherwise be made with
351 nonrecycled materials.
352 (31) (a) "Lease" or "rental" means a transfer of possession or control of tangible
353 personal property for:
354 (i) (A) a fixed term; or
355 (B) an indeterminate term; and
356 (ii) consideration.
357 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
358 amount of consideration may be increased or decreased by reference to the amount realized
359 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
360 Code.
361 (c) "Lease" or "rental" does not include:
362 (i) a transfer of possession or control of property under a security agreement or
363 deferred payment plan that requires the transfer of title upon completion of the required
364 payments;
365 (ii) a transfer of possession or control of property under an agreement:
366 (A) that requires the transfer of title upon completion of required payments; and
367 (B) in which the payment of an option price does not exceed the greater of:
368 (I) $100; or

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- 13 - 369 (II) 1% of the total required payments; or
370 (iii) providing tangible personal property along with an operator for a fixed period of
371 time or an indeterminate period of time if the operator is necessary for equipment to perform as
372 designed.
373 (d) For purposes of Subsection (31)(c)(iii), an operator is necessary for equipment to
374 perform as designed if the operator's duties exceed the:
375 (i) set-up of tangible personal property;
376 (ii) maintenance of tangible personal property; or
377 (iii) inspection of tangible personal property.
378 (32) "Local taxing jurisdiction" means a:
379 (a) county that is authorized to impose an agreement sales and use tax;
380 (b) city that is authorized to impose an agreement sales and use tax; or
381 (c) town that is authorized to impose an agreement sales and use tax.
382 (33) "Manufactured home" means any manufactured home or mobile home as defined
383 in Title 58, Chapter 56, Utah Uniform Building Standards Act.
384 (34) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
385 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
386 Industrial Classification Manual of the federal Executive Office of the President, Office of
387 Management and Budget; or
388 (b) a scrap recycler if:
389 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
390 one or more of the following items into prepared grades of processed materials for use in new
391 products:
392 (A) iron;
393 (B) steel;
394 (C) nonferrous metal;
395 (D) paper;
396 (E) glass;
397 (F) plastic;
398 (G) textile; or
399 (H) rubber; and

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- 14 - 400 (ii) the new products under Subsection (34)(b)(i) would otherwise be made with
401 nonrecycled materials.
402 (35) "Mobile telecommunications service" is as defined in the Mobile
403 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
404 (36) (a) Except as provided in Subsection (36)(c), "mobility enhancing equipment"
405 means equipment that is:
406 (i) primarily and customarily used to provide or increase the ability to move from one
407 place to another;
408 (ii) appropriate for use in a:
409 (A) home; or
410 (B) motor vehicle;
411 (iii) not generally used by persons with normal mobility; and
412 (iv) listed as eligible for payment under:
413 (A) Title XVIII of the federal Social Security Act; or
414 (B) the state plan for medical assistance under Title XIX of the federal Social Security
415 Act.
416 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
417 the equipment described in Subsection (36)(a).
418 (c) Notwithstanding Subsection (36)(a), "mobility enhancing equipment" does not
419 include:
420 (i) a motor vehicle;
421 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
422 vehicle manufacturer;
423 (iii) durable medical equipment; or
424 (iv) a prosthetic device.
425 (37) "Model 1 seller" means a seller that has selected a certified service provider as the
426 seller's agent to perform all of the seller's sales tax functions for agreement sales and use taxes.
427 (38) "Model 2 seller" means a seller that:
428 (a) except as provided in Subsection (38)(b), has selected a certified automated system
429 to perform the seller's sales tax functions for agreement sales and use taxes; and
430 (b) notwithstanding Subsection (38)(a), retains responsibility for remitting all of the

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- 15 - 431 sales tax:
432 (i) collected by the seller; and
433 (ii) to the appropriate local taxing jurisdiction.
434 (39) (a) Subject to Subsection (39)(b), "model 3 seller" means a seller that has:
435 (i) sales in at least five states that are members of the agreement;
436 (ii) total annual sales revenues of at least $500,000,000;
437 (iii) a proprietary system that calculates the amount of tax:
438 (A) for an agreement sales and use tax; and
439 (B) due to each local taxing jurisdiction; and
440 (iv) entered into a performance agreement with the governing board of the agreement.
441 (b) For purposes of Subsection (39)(a), "model 3 seller" includes an affiliated group of
442 sellers using the same proprietary system.
443 [(40) (a) "Multi-channel video or audio service provider" means any person or group of
444 persons that:]
445 [(i) provides multi-channel video or audio service and directly or indirectly owns a
446 significant interest in the multi-channel video or audio service; o]r
447 [(ii) otherwise controls or is responsible through any arrangement, the management and
448 operation of the multi-channel video or audio service.]
449 [(b) "Multi-channel video or audio service provider" includes the following except as
450 specifically exempted by state or federal law:]
451 [(i) a cable operator;]
452 [(ii) a CATV provider;]
453 [(iii) a multi-point distribution provider;]
454 [(iv) a MMDS provider;]
455 [(v) a SMATV operator;]
456 [(vi) a direct-to-home satellite service provider; or]
457 [(vii) a DBS provider.]
458 [(41)] (40) "Olympic merchandise" means tangible personal property bearing an
459 Olympic designation, emblem, insignia, mark, logo, service mark, symbol, terminology,
460 trademark, or other copyrighted or protected material, including:
461 (a) one or more of the following terms:

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- 16 - 462 (i) "Olympic";
463 (ii) "Olympiad"; or
464 (iii) "Citius Altius Fortius";
465 (b) the symbol of the International Olympic Committee, consisting of five interlocking
466 rings;
467 (c) the emblem of the International Olympic Committee Corporation;
468 (d) a United States Olympic Committee designation, emblem, insignia, mark, logo,
469 service mark, symbol, terminology, trademark, or other copyrighted or protected material;
470 (e) any emblem of the Olympic Winter Games of 2002 that is officially designated by
471 the Salt Lake Organizing Committee of the Olympic Winter Games of 2002; or
472 (f) the mascot of the Olympic Winter Games of 2002.
473 [(42)] (41) (a) "Other fuels" means products that burn independently to produce heat or
474 energy.
475 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
476 personal property.
477 [(43)] (42) "Person" includes any individual, firm, partnership, joint venture,
478 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
479 city, municipality, district, or other local governmental entity of the state, or any group or
480 combination acting as a unit.
481 [(44)] (43) "Place of primary use":
482 (a) for telephone service other than mobile telecommunications service, means the
483 street address representative of where the purchaser's use of the telephone service primarily
484 occurs, which shall be:
485 (i) the residential street address of the purchaser; or
486 (ii) the primary business street address of the purchaser; or
487 (b) for mobile telecommunications service, is as defined in the Mobile
488 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
489 [(45)] (44) (a) "Prepared food" means:
490 (i) food:
491 (A) sold in a heated state; or
492 (B) heated by a seller;

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- 17 - 493 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
494 item; or
495 (iii) except as provided in Subsection [(45)] (44)(c), food sold with an eating utensil
496 provided by the seller, including a:
497 (A) plate;
498 (B) knife;
499 (C) fork;
500 (D) spoon;
501 (E) glass;
502 (F) cup;
503 (G) napkin; or
504 (H) straw.
505 (b) "Prepared food" does not include:
506 (i) food that a seller only:
507 (A) cuts;
508 (B) repackages; or
509 (C) pasteurizes; or
510 (ii) (A) the following:
511 (I) raw egg;
512 (II) raw fish;
513 (III) raw meat;
514 (IV) raw poultry; or
515 (V) a food containing an item described in Subsections [(45)] (44)(b)(ii)(A)(I) through
516 (IV); and
517 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
518 Food and Drug Administration's Food Code that a consumer cook the items described in
519 Subsection [(45)] (44)(b)(ii)(A) to prevent food borne illness.
520 (c) Notwithstanding Subsection [(45)] (44)(a)(iii), an eating utensil provided by the
521 seller does not include the following used to transport the food:
522 (i) a container; or
523 (ii) packaging.

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- 18 - 524 [(46)] (45) "Prescription" means an order, formula, or recipe that is issued:
525 (a) (i) orally;
526 (ii) in writing;
527 (iii) electronically; or
528 (iv) by any other manner of transmission; and
529 (b) by a licensed practitioner authorized by the laws of a state.
530 [(47)] (46) (a) Except as provided in Subsection [(47)] (46)(b)(ii) or (iii), "prewritten
531 computer software" means computer software that is not designed and developed:
532 (i) by the author or other creator of the computer software; and
533 (ii) to the specifications of a specific purchaser.
534 (b) "Prewritten computer software" includes:
535 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
536 software is not designed and developed:
537 (A) by the author or other creator of the computer software; and
538 (B) to the specifications of a specific purchaser;
539 (ii) notwithstanding Subsection [(47)] (46)(a), computer software designed and
540 developed by the author or other creator of the computer software to the specifications of a
541 specific purchaser if the computer software is sold to a person other than the purchaser; or
542 (iii) notwithstanding Subsection [(47)] (46)(a) and except as provided in Subsection
543 [(47)] (46)(c), prewritten computer software or a prewritten portion of prewritten computer
544 software:
545 (A) that is modified or enhanced to any degree; and
546 (B) if the modification or enhancement described in Subsection [(47)] (46)(b)(iii)(A) is
547 designed and developed to the specifications of a specific purchaser.
548 (c) Notwithstanding Subsection [(47)] (46)(b)(iii), "prewritten computer software"
549 does not include a modification or enhancement described in Subsection [(47)] (46)(b)(iii) if
550 the charges for the modification or enhancement are:
551 (i) reasonable; and
552 (ii) separately stated on the invoice or other statement of price provided to the
553 purchaser.
554 [(48)] (47) (a) "Prosthetic device" means a device that is:

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556 (A) artificially replace a missing portion of the body;
557 (B) prevent or correct a physical deformity or physical malfunction; or
558 (C) support a weak or deformed portion of the body; and
559 (ii) listed as eligible for payment under:
560 (A) Title XVIII of the federal Social Security Act; or
561 (B) the state plan for medical assistance under Title XIX of the federal Social Security
562 Act.
563 (b) "Prosthetic device" includes:
564 (i) parts used in the repairs or renovation of a prosthetic device; or
565 (ii) replacement parts for a prosthetic device.
566 (c) "Prosthetic device" does not include:
567 (i) corrective eyeglasses;
568 (ii) contact lenses;
569 (iii) hearing aids; or
570 (iv) dental prostheses.
571 [(49)] (48) (a) "Protective equipment" means an item:
572 (i) for human wear; and
573 (ii) that is:
574 (A) designed as protection:
575 (I) to the wearer against injury or disease; or
576 (II) against damage or injury of other persons or property; and
577 (B) not suitable for general use.
578 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
579 commission shall make rules:
580 (i) listing the items that constitute "protective equipment"; and
581 (ii) that are consistent with the list of items that constitute "protective equipment"
582 under the agreement.
583 [(50)] (49) (a) "Purchase price" and "sales price" mean the total amount of
584 consideration:
585 (i) valued in money; and

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587 (A) sold;
588 (B) leased; or
589 (C) rented.
590 (b) "Purchase price" and "sales price" include:
591 (i) the seller's cost of the tangible personal property or services sold;
592 (ii) expenses of the seller, including:
593 (A) the cost of materials used;
594 (B) a labor cost;
595 (C) a service cost;
596 (D) interest;
597 (E) a loss;
598 (F) the cost of transportation to the seller; or
599 (G) a tax imposed on the seller;
600 (iii) a charge by the seller for any service necessary to complete the sale;
601 (iv) a delivery charge; or
602 (v) an installation charge.
603 (c) "Purchase price" and "sales price" do not include:
604 (i) a discount:
605 (A) in a form including:
606 (I) cash;
607 (II) term; or
608 (III) coupon;
609 (B) that is allowed by a seller;
610 (C) taken by a purchaser on a sale; and
611 (D) that is not reimbursed by a third party; or
612 (ii) the following if separately stated on an invoice, bill of sale, or similar document
613 provided to the purchaser:
614 (A) the amount of a trade-in;
615 (B) the following from credit extended on the sale of tangible personal property or
616 services:

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- 21 - 617 (I) interest charges;
618 (II) financing charges; or
619 (III) carrying charges; or
620 (C) a tax or fee legally imposed directly on the consumer.
621 [(51)] (50) "Purchaser" means a person to whom:
622 (a) a sale of tangible personal property is made; or
623 (b) a service is furnished.
624 [(52)] (51) "Regularly rented" means:
625 (a) rented to a guest for value three or more times during a calendar year; or
626 (b) advertised or held out to the public as a place that is regularly rented to guests for
627 value.
628 [(53)] (52) "Rental" is as defined in Subsection (31).
629 [(54)] (53) "Residential use" means the use in or around a home, apartment building,
630 sleeping quarters, and similar facilities or accommodations.
631 [(55)] (54) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
632 other than:
633 (a) resale;
634 (b) sublease; or
635 (c) subrent.
636 [(56)] (55) (a) "Retailer" means any person engaged in a regularly organized business
637 in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
638 and who is selling to the user or consumer and not for resale.
639 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
640 engaged in the business of selling to users or consumers within the state.
641 [(57)] (56) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
642 otherwise, in any manner, of tangible personal property or any other taxable transaction under
643 Subsection 59-12-103 (1), for consideration.
644 (b) "Sale" includes:
645 (i) installment and credit sales;
646 (ii) any closed transaction constituting a sale;
647 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this

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649 (iv) any transaction if the possession of property is transferred but the seller retains the
650 title as security for the payment of the price; and
651 (v) any transaction under which right to possession, operation, or use of any article of
652 tangible personal property is granted under a lease or contract and the transfer of possession
653 would be taxable if an outright sale were made.
654 [(58)] (57) "Sale at retail" is as defined in Subsection [(55)] (54).
655 [(59)] (58) "Sale-leaseback transaction" means a transaction by which title to tangible
656 personal property that is subject to a tax under this chapter is transferred:
657 (a) by a purchaser-lessee;
658 (b) to a lessor;
659 (c) for consideration; and
660 (d) if:
661 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
662 of the tangible personal property;
663 (ii) the sale of the tangible personal property to the lessor is intended as a form of
664 financing:
665 (A) for the property; and
666 (B) to the purchaser-lessee; and
667 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
668 is required to:
669 (A) capitalize the property for financial reporting purposes; and
670 (B) account for the lease payments as payments made under a financing arrangement.
671 [(60)] (59) "Sales price" is as defined in Subsection [(50)] (49).
672 [(61)] (60) (a) "Sales relating to schools" means the following sales by, amounts paid
673 to, or amounts charged by a school:
674 (i) sales that are directly related to the school's educational functions or activities
675 including:
676 (A) the sale of:
677 (I) textbooks;
678 (II) textbook fees;

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680 (IV) laboratory supplies; or
681 (V) safety equipment;
682 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
683 that:
684 (I) a student is specifically required to wear as a condition of participation in a
685 school-related event or school-related activity; and
686 (II) is not readily adaptable to general or continued usage to the extent that it takes the
687 place of ordinary clothing;
688 (C) sales of the following if the net or gross revenues generated by the sales are
689 deposited into a school district fund or school fund dedicated to school meals:
690 (I) food and food ingredients; or
691 (II) prepared food; or
692 (D) transportation charges for official school activities; or
693 (ii) amounts paid to or amounts charged by a school for admission to a school-related
694 event or school-related activity.
695 (b) "Sales relating to schools" does not include:
696 (i) bookstore sales of items that are not educational materials or supplies;
697 (ii) except as provided in Subsection [(61)] (60)(a)(i)(B):
698 (A) clothing;
699 (B) clothing accessories or equipment;
700 (C) protective equipment; or
701 (D) sports or recreational equipment; or
702 (iii) amounts paid to or amounts charged by a school for admission to a school-related
703 event or school-related activity if the amounts paid or charged are passed through to a person:
704 (A) other than a:
705 (I) school;
706 (II) nonprofit organization authorized by a school board or a governing body of a
707 private school to organize and direct a competitive secondary school activity; or
708 (III) nonprofit association authorized by a school board or a governing body of a
709 private school to organize and direct a competitive secondary school activity; and

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- 24 - 710 (B) that is required to collect sales and use taxes under this chapter.
711 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
712 commission may make rules defining the term "passed through."
713 [(62)] (61) For purposes of this section and Section 59-12-104 , "school" means:
714 (a) an elementary school or a secondary school that:
715 (i) is a:
716 (A) public school; or
717 (B) private school; and
718 (ii) provides instruction for one or more grades kindergarten through 12; or
719 (b) a public school district.
720 [(63)] (62) "Seller" means a person that makes a sale, lease, or rental of:
721 (a) tangible personal property; or
722 (b) a service.
723 [(64)] (63) (a) "Semiconductor fabricating or processing materials" means tangible
724 personal property:
725 (i) used primarily in the process of:
726 (A) (I) manufacturing a semiconductor; or
727 (II) fabricating a semiconductor; or
728 (B) maintaining an environment suitable for a semiconductor; or
729 (ii) consumed primarily in the process of:
730 (A) (I) manufacturing a semiconductor; or
731 (II) fabricating a semiconductor; or
732 (B) maintaining an environment suitable for a semiconductor.
733 (b) "Semiconductor fabricating or processing materials" includes:
734 (i) parts used in the repairs or renovations of tangible personal property described in
735 Subsection [(64)] (63)(a); or
736 (ii) a chemical, catalyst, or other material used to:
737 (A) produce or induce in a semiconductor a:
738 (I) chemical change; or
739 (II) physical change;
740 (B) remove impurities from a semiconductor; or

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- 25 - 741 (C) improve the marketable condition of a semiconductor.
742 [(65)] (64) "Senior citizen center" means a facility having the primary purpose of
743 providing services to the aged as defined in Section 62A-3-101 .
744 [(66)] (65) (a) "Sports or recreational equipment" means an item:
745 (i) designed for human use; and
746 (ii) that is:
747 (A) worn in conjunction with:
748 (I) an athletic activity; or
749 (II) a recreational activity; and
750 (B) not suitable for general use.
751 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
752 commission shall make rules:
753 (i) listing the items that constitute "sports or recreational equipment"; and
754 (ii) that are consistent with the list of items that constitute "sports or recreational
755 equipment" under the agreement.
756 [(67)] (66) "State" means the state of Utah, its departments, and agencies.
757 [(68)] (67) "Storage" means any keeping or retention of tangible personal property or
758 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
759 except sale in the regular course of business.
760 [(69)] (68) (a) "Tangible personal property" means personal property that:
761 (i) may be:
762 (A) seen;
763 (B) weighed;
764 (C) measured;
765 (D) felt; or
766 (E) touched; or
767 (ii) is in any manner perceptible to the senses.
768 (b) "Tangible personal property" includes:
769 (i) electricity;
770 (ii) water;
771 (iii) gas;

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773 (v) prewritten computer software.
774 [(70)] (69) (a) "Telephone service" means a two-way transmission:
775 (i) by:
776 (A) wire;
777 (B) radio;
778 (C) lightwave; or
779 (D) other electromagnetic means; and
780 (ii) of one or more of the following:
781 (A) a sign;
782 (B) a signal;
783 (C) writing;
784 (D) an image;
785 (E) sound;
786 (F) a message;
787 (G) data; or
788 (H) other information of any nature.
789 (b) "Telephone service" includes:
790 (i) mobile telecommunications service;
791 (ii) private communications service; or
792 (iii) automated digital telephone answering service.
793 (c) "Telephone service" does not include a service or a transaction that a state or a
794 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
795 Tax Freedom Act, Pub. L. No. 105-277.
796 [(71)] (70) Notwithstanding where a call is billed or paid, "telephone service address"
797 means:
798 (a) if the location described in this Subsection [(71)] (70)(a) is known, the location of
799 the telephone service equipment:
800 (i) to which a call is charged; and
801 (ii) from which the call originates or terminates;
802 (b) if the location described in Subsection [(71)] (70)(a) is not known but the location

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804 signal of the telephone service first identified by:
805 (i) the telecommunications system of the seller; or
806 (ii) if the system used to transport the signal is not that of the seller, information
807 received by the seller from its service provider; or
808 (c) if the locations described in Subsection [(71)] (70)(a) or (b) are not known, the
809 location of a purchaser's primary place of use.
810 [(72)] (71) (a) "Telephone service provider" means a person that:
811 (i) owns, controls, operates, or manages a telephone service; and
812 (ii) engages in an activity described in Subsection [(72)] (71)(a)(i) for the shared use
813 with or resale to any person of the telephone service.
814 (b) A person described in Subsection [(72)] (71)(a) is a telephone service provider
815 whether or not the Public Service Commission of Utah regulates:
816 (i) that person; or
817 (ii) the telephone service that the person owns, controls, operates, or manages.
818 [(73)] (72) "Tobacco" means:
819 (a) a cigarette;
820 (b) a cigar;
821 (c) chewing tobacco;
822 (d) pipe tobacco; or
823 (e) any other item that contains tobacco.
824 [(74)] (73) (a) "Use" means the exercise of any right or power over tangible personal
825 property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
826 property, item, or service.
827 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
828 the regular course of business and held for resale.
829 [(75)] (74) "Vehicle" means any aircraft, as defined in Section 72-10-102 ; any vehicle,
830 as defined in Section 41-1a-102 ; any off-highway vehicle, as defined in Section 41-22-2 ; and
831 any vessel, as defined in Section 41-1a-102 ; that is required to be titled, registered, or both.
832 "Vehicle," for purposes of Subsection 59-12-104 (35) only, also includes any locomotive,
833 freight car, railroad work equipment, or other railroad rolling stock.

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- 28 - 834 [(76)] (75) "Vehicle dealer" means a person engaged in the business of buying, selling,
835 or exchanging vehicles as defined in Subsection [(75)] (74).
836 Section 2. Section 59-12-103 (Superseded 07/01/04) is amended to read:
837 59-12-103 (Superseded 07/01/04). Sales and use tax base -- Rate -- Use of sales
838 and use tax revenues.
839 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
840 charged for the following transactions:
841 (a) retail sales of tangible personal property made within the state;
842 (b) amounts paid:
843 (i) (A) to a common carrier; or
844 (B) whether the following are municipally or privately owned, to a:
845 (I) telephone service provider; or
846 (II) telegraph corporation as defined in Section 54-2-1 ; and
847 (ii) for:
848 (A) all transportation;
849 (B) telephone service, other than mobile telecommunications service, that originates
850 and terminates within the boundaries of this state;
851 (C) mobile telecommunications service that originates and terminates within the
852 boundaries of one state only to the extent permitted by the Mobile Telecommunications
853 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
854 (D) telegraph service;
855 (c) sales of the following for commercial use:
856 (i) gas;
857 (ii) electricity;
858 (iii) heat;
859 (iv) coal;
860 (v) fuel oil; or
861 (vi) other fuels;
862 (d) sales of the following for residential use:
863 (i) gas;
864 (ii) electricity;

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866 (iv) coal;
867 (v) fuel oil; or
868 (vi) other fuels;
869 (e) sales of meals;
870 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
871 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
872 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
873 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
874 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
875 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
876 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
877 horseback rides, sports activities, or any other amusement, entertainment, recreation,
878 exhibition, cultural, or athletic activity;
879 (g) amounts paid or charged for services:
880 (i) for repairs or renovations of tangible personal property, unless Section 59-12-104
881 provides for an exemption from sales and use tax for:
882 (A) the tangible personal property; and
883 (B) parts used in the repairs or renovations of the tangible personal property described
884 in Subsection (1)(g)(i)(A), whether or not any parts are actually used in the repairs or
885 renovations of that tangible personal property; or
886 (ii) to install tangible personal property in connection with other tangible personal
887 property, unless the tangible personal property being installed is exempt from sales and use tax
888 under Section 59-12-104 ;
889 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
890 cleaning or washing of tangible personal property;
891 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
892 accommodations and services that are regularly rented for less than 30 consecutive days;
893 (j) amounts paid or charged for laundry or dry cleaning services;
894 (k) amounts paid or charged for leases or rentals of tangible personal property if:
895 (i) the tangible personal property's situs is in this state;

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House Floor Amendments 3-2-2004 kh/rlr 896

(ii) the lessee took possession of the tangible personal property in this state; or
897 (iii) within this state the tangible personal property is:
898 (A) stored;
899 (B) used; or
900 (C) otherwise consumed;
901 (l) amounts paid or charged for tangible personal property if within this state the
902 tangible personal property is:
903 (i) stored;
904 (ii) used; or
905 (iii) consumed; H [ and ] h
906 (m) amounts paid or charged for prepaid telephone calling cards[;] H [ . ] ; AND h
907 (n) through June 30, 2004, amounts paid or charged for multi-channel video or audio
908 service provided by a multi-channel video or audio service provider:
909 (i) within the state; and
910 (ii) to the extent permitted by federal law.
911 (2) (a) Except as provided in Subsections (2)(b) and (c), beginning on July 1, 2001, a
912 state tax and a local tax is imposed on a transaction described in Subsection (1) equal to the
913 sum of:
914 (i) a state tax imposed on the transaction at a rate of 4.75%; and
915 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
916 transaction under this chapter other than this part.
917 (b) Notwithstanding Subsection (2)(a), beginning on July 1, 2001, a state tax and a
918 local tax is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
919 (i) a state tax imposed on the transaction at a rate of 2%; and
920 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
921 transaction under this chapter other than this part.
922 (c) Notwithstanding Subsections (2)(a) and (b), beginning on July 1, 2001, if a vendor
923 collects a tax under Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a
924 state tax and a local tax is imposed on the transaction equal to the sum of:
925 (i) a state tax imposed on the transaction at a rate of:
926 (A) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or

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928 (ii) except as provided in Subsection (2)(d), a local tax imposed on the transaction at a
929 rate equal to the sum of the following tax rates:
930 (A) (I) the lowest tax rate imposed by a county, city, or town under Section 59-12-204 ,
931 but only if all of the counties, cities, and towns in the state impose the tax under Section
932 59-12-204 ; or
933 (II) the lowest tax rate imposed by a county, city, or town under Section 59-12-205 , but
934 only if all of the counties, cities, and towns in the state impose the tax under Section
935 59-12-205 ; and
936 (B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
937 state impose the tax under Section 59-12-1102 .
938 (d) Tax rates authorized under the following do not apply to Subsection (2)(c)(ii):
939 (i) Subsection (2)(a)(i);
940 (ii) Subsection (2)(b)(i);
941 (iii) Subsection (2)(c)(i);
942 (iv) Section 59-12-301 ;
943 (v) Section 59-12-352 ;
944 (vi) Section 59-12-353 ;
945 (vii) Section 59-12-401 ;
946 (viii) Section 59-12-402 ;
947 (ix) Section 59-12-501 ;
948 (x) Section 59-12-502 ;
949 (xi) Section 59-12-603 ;
950 (xii) Section 59-12-703 ;
951 (xiii) Section 59-12-802 ;
952 (xiv) Section 59-12-804 ;
953 (xv) Section 59-12-1001 ;
954 (xvi) Section 59-12-1201 ; or
955 (xvii) Section 59-12-1302 .
956 (3) (a) Except as provided in Subsections (4) through (9), the following state taxes
957 shall be deposited into the General Fund:

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- 32 - 958 (i) the tax imposed by Subsection (2)(a)(i);
959 (ii) the tax imposed by Subsection (2)(b)(i); and
960 (iii) the tax imposed by Subsection (2)(c)(i).
961 (b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed
962 to a county, city, or town as provided in this chapter.
963 (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
964 state shall receive the county's, city's, or town's proportionate share of the revenues generated
965 by the local tax described in Subsection (2)(c)(ii) as provided in Subsection (3)(c)(ii).
966 (ii) The commission shall determine a county's, city's, or town's proportionate share of
967 the revenues under Subsection (3)(c)(i) by:
968 (A) calculating an amount equal to:
969 (I) the population of the county, city, or town; divided by
970 (II) the total population of the state; and
971 (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
972 amount of revenues generated by the local tax under Subsection (2)(c)(ii) for all counties,
973 cities, and towns.
974 (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
975 purposes of this section shall be derived from the most recent official census or census estimate
976 of the United States Census Bureau.
977 (B) Notwithstanding Subsection (3)(c)(iii)(A), if a needed population estimate is not
978 available from the United States Census Bureau, population figures shall be derived from the
979 estimate from the Utah Population Estimates Committee created by executive order of the
980 governor.
981 (C) For purposes of this section, the population of a county may only include the
982 population of the unincorporated areas of the county.
983 (4) (a) Notwithstanding Subsection (3)(a), there shall be deposited in an Olympics
984 special revenue fund or funds as determined by the Division of Finance under Section 51-5-4 ,
985 for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
986 Authority Act:
987 (i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
988 generated by a 1/64% tax rate on the taxable transactions under Subsection (1);

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- 33 - 989 (ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
990 1/64% tax rate under Section 59-12-204 or Section 59-12-205 on the taxable transactions under
991 Subsection (1); and
992 (iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
993 (b) These funds shall be used:
994 (i) by the Utah Sports Authority as follows:
995 (A) to the extent funds are available, to transfer directly to a debt service fund or to
996 otherwise reimburse to the state any amount expended on debt service or any other cost of any
997 bonds issued by the state to construct any public sports facility as defined in Section
998 63A-7-103 ;
999 (B) to pay for the actual and necessary operating, administrative, legal, and other
1000 expenses of the Utah Sports Authority, but not including protocol expenses for seeking and
1001 obtaining the right to host the Winter Olympic Games;
1002 (C) as otherwise appropriated by the Legislature; and
1003 (D) unless the Legislature appropriates additional funds from the Olympics Special
1004 Revenue Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan,
1005 or pledge in the aggregate more than:
1006 (I) $59,000,000 of sales and use tax deposited into the Olympics Special Revenue Fund
1007 under Subsection (4)(a);
1008 (II) the interest earned on the amount described in Subsection (4)(b)(i)(D)(I); and
1009 (III) the revenues deposited into the Olympics Special Revenue Fund that are not sales
1010 and use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes; and
1011 (ii) to pay salary, benefits, or administrative costs associated with the State Olympic
1012 Officer under Subsection 63A-10-103 (3), except that the salary, benefits, or administrative
1013 costs may not be paid from the sales and use tax revenues generated by municipalities or
1014 counties and deposited under Subsection (4)(a)(ii).
1015 (c) A payment of salary, benefits, or administrative costs under Subsection
1016 63A-10-103 (3) is not considered an expenditure of the Utah Sports Authority.
1017 (d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(D), the
1018 authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge
1019 the appropriated funds unless the authority:

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- 34 - 1020 (i) contracts in writing for the full reimbursement of the monies to the Olympics
1021 Special Revenue Fund by a public sports entity or other person benefitting from the
1022 expenditure; and
1023 (ii) obtains a security interest that secures payment or performance of the obligation to
1024 reimburse.
1025 (e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
1026 (5) (a) (i) Notwithstanding Subsection (3)(a) and except as provided in Subsection
1027 (11), for fiscal year 2002-03 only, the lesser of the following amounts shall be transferred or
1028 deposited as provided in Subsections (5)(a)(ii) through (vii):
1029 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1030 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1031 (II) for fiscal year 2002-03; or
1032 (B) $18,743,000.
1033 (ii) (A) For fiscal year 2002-03 only, $2,300,000 of the amount described in Subsection
1034 (5)(a)(i) shall be transferred as dedicated credits to the Department of Natural Resources to:
1035 (I) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
1036 protect sensitive plant and animal species; or
1037 (II) award grants, up to the amount authorized by the Legislature in an appropriations
1038 act, to political subdivisions of the state to implement the measures described in Subsections
1039 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
1040 (B) Money transferred to the Department of Natural Resources under Subsection
1041 (5)(a)(ii)(A) may not be used to assist the United States Fish and Wildlife Service or any other
1042 person to list or attempt to have listed a species as threatened or endangered under the
1043 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1044 (C) At the end of fiscal year 2002-03:
1045 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1046 Conservation and Development Fund created in Section 73-10-24 ;
1047 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1048 Program Subaccount created in Section 73-10c-5 ; and
1049 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1050 Program Subaccount created in Section 73-10c-5 .

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- 35 - 1051 (iii) For fiscal year 2002-03 only, $500,000 of the amount described in Subsection
1052 (5)(a)(i) shall be deposited in the Agriculture Resource Development Fund created in Section
1053 4-18-6 .
1054 (iv) (A) For fiscal year 2002-03 only, $100,000 of the amount described in Subsection
1055 (5)(a)(i) shall be transferred as dedicated credits to the Division of Water Rights to cover the
1056 costs incurred in hiring legal and technical staff for the adjudication of water rights.
1057 (B) At the end of fiscal year 2002-03:
1058 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1059 Conservation and Development Fund created in Section 73-10-24 ;
1060 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1061 Program Subaccount created in Section 73-10c-5 ; and
1062 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1063 Program Subaccount created in Section 73-10c-5 .
1064 (v) (A) For fiscal year 2002-03 only, 50% of the amount described in Subsection
1065 (5)(a)(i) that remains after making the transfers and deposits required by Subsections (5)(a)(ii)
1066 through (iv) shall be deposited in the Water Resources Conservation and Development Fund
1067 created in Section 73-10-24 for use by the Division of Water Resources.
1068 (B) In addition to the uses allowed of the Water Resources Conservation and
1069 Development Fund under Section 73-10-24 , the Water Resources Conservation and
1070 Development Fund may also be used to:
1071 (I) provide a portion of the local cost share, not to exceed in fiscal year 2002-03 50%
1072 of the funds made available to the Division of Water Resources under this section, of potential
1073 project features of the Central Utah Project;
1074 (II) conduct hydrologic and geotechnical investigations by the Department of Natural
1075 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1076 quantifying surface and ground water resources and describing the hydrologic systems of an
1077 area in sufficient detail so as to enable local and state resource managers to plan for and
1078 accommodate growth in water use without jeopardizing the resource;
1079 (III) fund state required dam safety improvements; and
1080 (IV) protect the state's interest in interstate water compact allocations, including the
1081 hiring of technical and legal staff.

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- 36 - 1082 (vi) For fiscal year 2002-03 only, 25% of the amount described in Subsection (5)(a)(i)
1083 that remains after making the transfers and deposits required by Subsections (5)(a)(ii) through
1084 (iv) shall be deposited in the Utah Wastewater Loan Program Subaccount created in Section
1085 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1086 (vii) For fiscal year 2002-03 only, 25% of the amount described in Subsection (5)(a)(i)
1087 that remains after making the transfers and deposits required by Subsections (5)(a)(ii) through
1088 (iv) shall be deposited in the Drinking Water Loan Program Subaccount created in Section
1089 73-10c-5 for use by the Division of Drinking Water to:
1090 (A) provide for the installation and repair of collection, treatment, storage, and
1091 distribution facilities for any public water system, as defined in Section 19-4-102 ;
1092 (B) develop underground sources of water, including springs and wells; and
1093 (C) develop surface water sources.
1094 (b) (i) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1095 2003, the lesser of the following amounts shall be used as provided in Subsections (5)(b)(ii)
1096 through (vii):
1097 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1098 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1099 (II) for the fiscal year; or
1100 (B) $17,500,000.
1101 (ii) (A) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1102 described in Subsection (5)(b)(i) shall be transferred each year as dedicated credits to the
1103 Department of Natural Resources to:
1104 (I) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
1105 protect sensitive plant and animal species; or
1106 (II) award grants, up to the amount authorized by the Legislature in an appropriations
1107 act, to political subdivisions of the state to implement the measures described in Subsections
1108 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
1109 (B) Money transferred to the Department of Natural Resources under Subsection
1110 (5)(b)(ii)(A) may not be used to assist the United States Fish and Wildlife Service or any other
1111 person to list or attempt to have listed a species as threatened or endangered under the
1112 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.

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- 37 - 1113 (C) At the end of each fiscal year:
1114 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1115 Conservation and Development Fund created in Section 73-10-24 ;
1116 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1117 Program Subaccount created in Section 73-10c-5 ; and
1118 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1119 Program Subaccount created in Section 73-10c-5 .
1120 (iii) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1121 Subsection (5)(b)(i) shall be deposited each year in the Agriculture Resource Development
1122 Fund created in Section 4-18-6 .
1123 (iv) (A) For a fiscal year beginning on or after July 1, 2003, 1% of the amount
1124 described in Subsection (5)(b)(i) shall be transferred each year as dedicated credits to the
1125 Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the
1126 adjudication of water rights.
1127 (B) At the end of each fiscal year:
1128 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1129 Conservation and Development Fund created in Section 73-10-24 ;
1130 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1131 Program Subaccount created in Section 73-10c-5 ; and
1132 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1133 Program Subaccount created in Section 73-10c-5 .
1134 (v) (A) For a fiscal year beginning on or after July 1, 2003, 41% of the amount
1135 described in Subsection (5)(b)(i) shall be deposited in the Water Resources Conservation and
1136 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
1137 (B) In addition to the uses allowed of the Water Resources Conservation and
1138 Development Fund under Section 73-10-24 , the Water Resources Conservation and
1139 Development Fund may also be used to:
1140 (I) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
1141 funds made available to the Division of Water Resources under this section, of potential project
1142 features of the Central Utah Project;
1143 (II) conduct hydrologic and geotechnical investigations by the Department of Natural

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- 38 - 1144 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1145 quantifying surface and ground water resources and describing the hydrologic systems of an
1146 area in sufficient detail so as to enable local and state resource managers to plan for and
1147 accommodate growth in water use without jeopardizing the resource;
1148 (III) fund state required dam safety improvements; and
1149 (IV) protect the state's interest in interstate water compact allocations, including the
1150 hiring of technical and legal staff.
1151 (vi) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1152 in Subsection (5)(b)(i) shall be deposited in the Utah Wastewater Loan Program Subaccount
1153 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1154 (vii) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount
1155 described in Subsection (5)(b)(i) shall be deposited in the Drinking Water Loan Program
1156 Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to:
1157 (A) provide for the installation and repair of collection, treatment, storage, and
1158 distribution facilities for any public water system, as defined in Section 19-4-102 ;
1159 (B) develop underground sources of water, including springs and wells; and
1160 (C) develop surface water sources.
1161 (6) (a) (i) Notwithstanding Subsection (3)(a), for fiscal year 2002-03 only, the lesser of
1162 the following amounts shall be transferred or deposited as provided in Subsections (6)(a)(ii)
1163 through (iv):
1164 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1165 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1166 (II) for the fiscal year; or
1167 (B) $18,743,000.
1168 (ii) (A) For fiscal year 2002-03 only, $500,000 of the amount described in Subsection
1169 (6)(a)(i) shall be deposited in the Transportation Corridor Preservation Revolving Loan Fund
1170 created in Section 72-2-117 .
1171 (B) At least 50% of the money deposited in the Transportation Corridor Preservation
1172 Revolving Loan Fund under Subsection (6)(a)(ii)(A) shall be used to fund loan applications
1173 made by the Department of Transportation at the request of local governments.
1174 (iii) For fiscal year 2002-03 only, $500,000 of the amount described in Subsection

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- 39 - 1175 (6)(a)(i) shall be transferred as nonlapsing dedicated credits to the Department of
1176 Transportation for the State Park Access Highways Improvement Program created in Section
1177 72-3-207 .
1178 (iv) For fiscal year 2002-03 only, the amount described in Subsection (6)(a)(i) that
1179 remains after making the transfers and deposits required by Subsections (6)(a)(ii) and (iii) shall
1180 be deposited in the class B and class C roads account to be expended as provided in Title 72,
1181 Chapter 2, Transportation Finances Act, for the use of class B and C roads.
1182 (b) (i) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1183 2003, the lesser of the following amounts shall be used as provided in Subsections (6)(b)(ii)
1184 through (iv):
1185 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1186 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1187 (II) for the fiscal year; or
1188 (B) $18,743,000.
1189 (ii) (A) For a fiscal year beginning on or after July 1, 2003, 3% of the amount
1190 described in Subsection (6)(b)(i) shall be deposited each year in the Transportation Corridor
1191 Preservation Revolving Loan Fund created in Section 72-2-117 .
1192 (B) At least 50% of the money deposited in the Transportation Corridor Preservation
1193 Revolving Loan Fund under Subsection (6)(b)(ii)(A) shall be used to fund loan applications
1194 made by the Department of Transportation at the request of local governments.
1195 (iii) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1196 Subsection (6)(b)(i) shall be transferred each year as nonlapsing dedicated credits to the
1197 Department of Transportation for the State Park Access Highways Improvement Program
1198 created in Section 72-3-207 .
1199 (iv) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described
1200 in Subsection (6)(b)(i) shall be deposited in the class B and class C roads account to be
1201 expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class
1202 B and C roads.
1203 (7) (a) Notwithstanding Subsection (3)(a), beginning on January 1, 2000, the Division
1204 of Finance shall deposit into the Centennial Highway Fund created in Section 72-2-118 a
1205 portion of the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64%

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- 40 - 1206 tax rate on the taxable transactions under Subsection (1).
1207 (b) Except for sales and use taxes deposited under Subsection (8), beginning on July 1,
1208 1999, the revenues generated by the 1/64% tax rate:
1209 (i) retained under Subsection 59-12-204 (7)(a) shall be retained by the counties, cities,
1210 or towns as provided in Section 59-12-204 ; and
1211 (ii) retained under Subsection 59-12-205 (4)(a) shall be distributed to each county, city,
1212 and town as provided in Section 59-12-205 .
1213 (8) Notwithstanding Subsection (3)(a), beginning on July 1, 1999, the commission
1214 shall deposit into the Airport to University of Utah Light Rail Restricted Account created in
1215 Section 17A-2-1064 the portion of the sales and use tax under Sections 59-12-204 and
1216 59-12-205 that is:
1217 (a) generated by a city or town that will have constructed within its boundaries the
1218 Airport to University of Utah Light Rail described in the Transportation Equity Act for the 21st
1219 Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
1220 (b) equal to the revenues generated by a 1/64% tax rate on the taxable items and
1221 services under Subsection (1).
1222 (9) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
1223 year 2002-03, the commission shall on or before September 30 of each year deposit the
1224 difference described in Subsection (9)(b) into the Remote Sales Restricted Account created in
1225 Section 59-12-103.2 if that difference is greater than $0.
1226 (b) The difference described in Subsection (9)(a) is equal to the difference between:
1227 (i) the total amount of revenues under Subsection (2)(c)(i) the commission received
1228 from vendors collecting a tax under Subsection 59-12-107 (1)(b) for the fiscal year immediately
1229 preceding the September 30 described in Subsection (9)(a); and
1230 (ii) the total amount of revenues under Subsection (2)(c)(i) the commission estimates
1231 that the commission received from vendors described in Subsection 59-12-107 (1)(b) for fiscal
1232 year 2000-01.
1233 (10) (a) For purposes of amounts paid or charged as admission or user fees relating to
1234 the Olympic Winter Games of 2002, the amounts are considered to be paid or charged on the
1235 day on which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 or a
1236 person designated by the Salt Lake Organizing Committee for the Olympic Winter Games of

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- 41 - 1237 2002 sends a purchaser confirmation of the purchase of an admission or user fee described in
1238 Subsection (1)(f).
1239 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1240 commission shall make rules defining what constitutes sending a purchaser confirmation under
1241 Subsection (10)(a).
1242 (11) (a) For fiscal year 2002-03 only, the following amounts shall be subtracted from
1243 the total amount required to be deposited or transferred in accordance with Subsection (5):
1244 (i) $25,000 shall be subtracted from the total amount required to be transferred to the
1245 Division of Water Rights in accordance with Subsection (5)(a)(iv);
1246 (ii) $385,000 shall be subtracted from the total amount required to be deposited into the
1247 Agriculture Resource Development Fund in accordance with Subsection (5)(a)(iii);
1248 (iii) $350,000 shall be subtracted from the total amount required to be transferred to the
1249 Department of Natural Resources in accordance with Subsection (5)(a)(ii);
1250 (iv) $3,012,500 shall be subtracted from the total amount required to be deposited into
1251 the Drinking Water Loan Program Subaccount in accordance with Subsection (5)(a)(vii);
1252 (v) $3,012,500 shall be subtracted from the total amount required to be deposited into
1253 the Utah Wastewater Loan Program Subaccount in accordance with Subsection (5)(a)(vi); and
1254 (vi) $5,715,000 shall be subtracted from the total amount required to be deposited into
1255 the Water Resources Conservation and Development Fund in accordance with Subsection
1256 (5)(a)(v).
1257 (b) The amounts subtracted under Subsection (11)(a) shall be deposited into the
1258 General Fund.
1259 Section 3. Section 59-12-103 (Effective 07/01/04) is amended to read:
1260 59-12-103 (Effective 07/01/04). Sales and use tax base -- Rates -- Effective dates --
1261 Use of sales and use tax revenues.
1262 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
1263 charged for the following transactions:
1264 (a) retail sales of tangible personal property made within the state;
1265 (b) amounts paid:
1266 (i) (A) to a common carrier; or
1267 (B) whether the following are municipally or privately owned, to a:

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- 42 - 1268 (I) telephone service provider; or
1269 (II) telegraph corporation as defined in Section 54-2-1 ; and
1270 (ii) for:
1271 (A) all transportation;
1272 (B) telephone service, other than mobile telecommunications service, that originates
1273 and terminates within the boundaries of this state;
1274 (C) mobile telecommunications service that originates and terminates within the
1275 boundaries of one state only to the extent permitted by the Mobile Telecommunications
1276 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1277 (D) telegraph service;
1278 (c) sales of the following for commercial use:
1279 (i) gas;
1280 (ii) electricity;
1281 (iii) heat;
1282 (iv) coal;
1283 (v) fuel oil; or
1284 (vi) other fuels;
1285 (d) sales of the following for residential use:
1286 (i) gas;
1287 (ii) electricity;
1288 (iii) heat;
1289 (iv) coal;
1290 (v) fuel oil; or
1291 (vi) other fuels;
1292 (e) sales of prepared food;
1293 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
1294 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1295 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1296 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1297 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1298 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,

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- 43 - 1299 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1300 horseback rides, sports activities, or any other amusement, entertainment, recreation,
1301 exhibition, cultural, or athletic activity;
1302 (g) amounts paid or charged for services:
1303 (i) for repairs or renovations of tangible personal property, unless Section 59-12-104
1304 provides for an exemption from sales and use tax for:
1305 (A) the tangible personal property; and
1306 (B) parts used in the repairs or renovations of the tangible personal property described
1307 in Subsection (1)(g)(i)(A), whether or not any parts are actually used in the repairs or
1308 renovations of that tangible personal property; or
1309 (ii) to install tangible personal property in connection with other tangible personal
1310 property, unless the tangible personal property being installed is exempt from sales and use tax
1311 under Section 59-12-104 ;
1312 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
1313 cleaning or washing of tangible personal property;
1314 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1315 accommodations and services that are regularly rented for less than 30 consecutive days;
1316 (j) amounts paid or charged for laundry or dry cleaning services;
1317 (k) amounts paid or charged for leases or rentals of tangible personal property if:
1318 (i) the tangible personal property's situs is in this state;
1319 (ii) the lessee took possession of the tangible personal property in this state; or
1320 (iii) within this state the tangible personal property is:
1321 (A) stored;
1322 (B) used; or
1323 (C) otherwise consumed;
1324 (l) amounts paid or charged for tangible personal property if within this state the
1325 tangible personal property is:
1326 (i) stored;
1327 (ii) used; or
1328 (iii) consumed; and
1329 (m) amounts paid or charged for prepaid telephone calling cards[;].

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- 44 - 1330 [(n) amounts paid or charged for multi-channel video or audio service provided by a
1331 multi-channel video or audio service provider:]
1332 [(i) within the state; and]
1333 [(ii) to the extent permitted by federal law.]
1334 (2) (a) Except as provided in Subsection (2)(b), beginning on July 1, 2001, a state tax
1335 and a local tax is imposed on a transaction described in Subsection (1) equal to the sum of:
1336 (i) a state tax imposed on the transaction at a rate of 4.75%; and
1337 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1338 transaction under this chapter other than this part.
1339 (b) Notwithstanding Subsection (2)(a), beginning on July 1, 2001, a state tax and a
1340 local tax is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
1341 (i) a state tax imposed on the transaction at a rate of 2%; and
1342 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1343 transaction under this chapter other than this part.
1344 (c) Subject to Subsections (2)(d) and (e), a tax rate change for a tax rate imposed under
1345 the following shall take effect on the first day of a calendar quarter:
1346 (i) Subsection (2)(a)(i); or
1347 (ii) Subsection (2)(b)(i).
1348 (d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
1349 effect on the first day of the first billing period:
1350 (A) that begins after the effective date of the tax rate increase; and
1351 (B) if the billing period for the transaction begins before the effective date of a tax rate
1352 increase imposed under:
1353 (I) Subsection (2)(a)(i); or
1354 (II) Subsection (2)(b)(i).
1355 (ii) For a transaction described in Subsection (2)(d)(iii), a tax rate decrease shall take
1356 effect on the first day of the last billing period:
1357 (A) that began before the effective date of the tax rate decrease; and
1358 (B) if the billing period for the transaction begins before the effective date of a tax rate
1359 decrease imposed under:
1360 (I) Subsection (2)(a)(i); or

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- 45 - 1361 (II) Subsection (2)(b)(i).
1362 (iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
1363 (A) Subsection (1)(b);
1364 (B) Subsection (1)(c);
1365 (C) Subsection (1)(d);
1366 (D) Subsection (1)(e);
1367 (E) Subsection (1)(f);
1368 (F) Subsection (1)(g);
1369 (G) Subsection (1)(h);
1370 (H) Subsection (1)(i);
1371 (I) Subsection (1)(j); or
1372 (J) Subsection (1)(k).
1373 (e) (i) If a tax due under Subsection (2)(a)(i) on a catalogue sale is computed on the
1374 basis of sales and use tax rates published in the catalogue, a change in a tax rate imposed under
1375 Subsection (2)(a)(i) takes effect:
1376 (A) on the first day of a calendar quarter; and
1377 (B) beginning 60 days after the effective date of the tax rate change under Subsection
1378 (2)(a)(i).
1379 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1380 the commission may by rule define the term "catalogue sale."
1381 (3) (a) Except as provided in Subsections (4) through (7) and (9), the following state
1382 taxes shall be deposited into the General Fund:
1383 (i) the tax imposed by Subsection (2)(a)(i); or
1384 (ii) the tax imposed by Subsection (2)(b)(i).
1385 (b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed
1386 to a county, city, or town as provided in this chapter.
1387 (4) (a) (i) Notwithstanding Subsection (3)(a) and except as provided in Subsection (9),
1388 for fiscal year 2002-03 only, the lesser of the following amounts shall be transferred or
1389 deposited as provided in Subsections (4)(a)(ii) through (vii):
1390 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1391 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and

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- 46 - 1392 (II) for fiscal year 2002-03; or
1393 (B) $18,743,000.
1394 (ii) (A) For fiscal year 2002-03 only, $2,300,000 of the amount described in Subsection
1395 (4)(a)(i) shall be transferred as dedicated credits to the Department of Natural Resources to:
1396 (I) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
1397 protect sensitive plant and animal species; or
1398 (II) award grants, up to the amount authorized by the Legislature in an appropriations
1399 act, to political subdivisions of the state to implement the measures described in Subsections
1400 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
1401 (B) Money transferred to the Department of Natural Resources under Subsection
1402 (4)(a)(ii)(A) may not be used to assist the United States Fish and Wildlife Service or any other
1403 person to list or attempt to have listed a species as threatened or endangered under the
1404 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1405 (C) At the end of fiscal year 2002-03:
1406 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1407 Conservation and Development Fund created in Section 73-10-24 ;
1408 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1409 Program Subaccount created in Section 73-10c-5 ; and
1410 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1411 Program Subaccount created in Section 73-10c-5 .
1412 (iii) For fiscal year 2002-03 only, $500,000 of the amount described in Subsection
1413 (4)(a)(i) shall be deposited in the Agriculture Resource Development Fund created in Section
1414 4-18-6 .
1415 (iv) (A) For fiscal year 2002-03 only, $100,000 of the amount described in Subsection
1416 (4)(a)(i) shall be transferred as dedicated credits to the Division of Water Rights to cover the
1417 costs incurred in hiring legal and technical staff for the adjudication of water rights.
1418 (B) At the end of fiscal year 2002-03:
1419 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1420 Conservation and Development Fund created in Section 73-10-24 ;
1421 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1422 Program Subaccount created in Section 73-10c-5 ; and

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- 47 - 1423 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1424 Program Subaccount created in Section 73-10c-5 .
1425 (v) (A) For fiscal year 2002-03 only, 50% of the amount described in Subsection
1426 (4)(a)(i) that remains after making the transfers and deposits required by Subsections (4)(a)(ii)
1427 through (iv) shall be deposited in the Water Resources Conservation and Development Fund
1428 created in Section 73-10-24 for use by the Division of Water Resources.
1429 (B) In addition to the uses allowed of the Water Resources Conservation and
1430 Development Fund under Section 73-10-24 , the Water Resources Conservation and
1431 Development Fund may also be used to:
1432 (I) provide a portion of the local cost share, not to exceed in fiscal year 2002-03 50%
1433 of the funds made available to the Division of Water Resources under this section, of potential
1434 project features of the Central Utah Project;
1435 (II) conduct hydrologic and geotechnical investigations by the Department of Natural
1436 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1437 quantifying surface and ground water resources and describing the hydrologic systems of an
1438 area in sufficient detail so as to enable local and state resource managers to plan for and
1439 accommodate growth in water use without jeopardizing the resource;
1440 (III) fund state required dam safety improvements; and
1441 (IV) protect the state's interest in interstate water compact allocations, including the
1442 hiring of technical and legal staff.
1443 (vi) For fiscal year 2002-03 only, 25% of the amount described in Subsection (4)(a)(i)
1444 that remains after making the transfers and deposits required by Subsections (4)(a)(ii) through
1445 (iv) shall be deposited in the Utah Wastewater Loan Program Subaccount created in Section
1446 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1447 (vii) For fiscal year 2002-03 only, 25% of the amount described in Subsection (4)(a)(i)
1448 that remains after making the transfers and deposits required by Subsections (4)(a)(ii) through
1449 (iv) shall be deposited in the Drinking Water Loan Program Subaccount created in Section
1450 73-10c-5 for use by the Division of Drinking Water to:
1451 (A) provide for the installation and repair of collection, treatment, storage, and
1452 distribution facilities for any public water system, as defined in Section 19-4-102 ;
1453 (B) develop underground sources of water, including springs and wells; and

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- 48 - 1454 (C) develop surface water sources.
1455 (b) (i) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1456 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)(ii)
1457 through (vii):
1458 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1459 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1460 (II) for the fiscal year; or
1461 (B) $17,500,000.
1462 (ii) (A) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1463 described in Subsection (4)(b)(i) shall be transferred each year as dedicated credits to the
1464 Department of Natural Resources to:
1465 (I) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
1466 protect sensitive plant and animal species; or
1467 (II) award grants, up to the amount authorized by the Legislature in an appropriations
1468 act, to political subdivisions of the state to implement the measures described in Subsections
1469 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
1470 (B) Money transferred to the Department of Natural Resources under Subsection
1471 (4)(b)(ii)(A) may not be used to assist the United States Fish and Wildlife Service or any other
1472 person to list or attempt to have listed a species as threatened or endangered under the
1473 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1474 (C) At the end of each fiscal year:
1475 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1476 Conservation and Development Fund created in Section 73-10-24 ;
1477 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1478 Program Subaccount created in Section 73-10c-5 ; and
1479 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1480 Program Subaccount created in Section 73-10c-5 .
1481 (iii) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1482 Subsection (4)(b)(i) shall be deposited each year in the Agriculture Resource Development
1483 Fund created in Section 4-18-6 .
1484 (iv) (A) For a fiscal year beginning on or after July 1, 2003, 1% of the amount

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- 49 - 1485 described in Subsection (4)(b)(i) shall be transferred each year as dedicated credits to the
1486 Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the
1487 adjudication of water rights.
1488 (B) At the end of each fiscal year:
1489 (I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1490 Conservation and Development Fund created in Section 73-10-24 ;
1491 (II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1492 Program Subaccount created in Section 73-10c-5 ; and
1493 (III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1494 Program Subaccount created in Section 73-10c-5 .
1495 (v) (A) For a fiscal year beginning on or after July 1, 2003, 41% of the amount
1496 described in Subsection (4)(b)(i) shall be deposited in the Water Resources Conservation and
1497 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
1498 (B) In addition to the uses allowed of the Water Resources Conservation and
1499 Development Fund under Section 73-10-24 , the Water Resources Conservation and
1500 Development Fund may also be used to:
1501 (I) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
1502 funds made available to the Division of Water Resources under this section, of potential project
1503 features of the Central Utah Project;
1504 (II) conduct hydrologic and geotechnical investigations by the Department of Natural
1505 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1506 quantifying surface and ground water resources and describing the hydrologic systems of an
1507 area in sufficient detail so as to enable local and state resource managers to plan for and
1508 accommodate growth in water use without jeopardizing the resource;
1509 (III) fund state required dam safety improvements; and
1510 (IV) protect the state's interest in interstate water compact allocations, including the
1511 hiring of technical and legal staff.
1512 (vi) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1513 in Subsection (4)(b)(i) shall be deposited in the Utah Wastewater Loan Program Subaccount
1514 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1515 (vii) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount

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- 50 - 1516 described in Subsection (4)(b)(i) shall be deposited in the Drinking Water Loan Program
1517 Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to:
1518 (A) provide for the installation and repair of collection, treatment, storage, and
1519 distribution facilities for any public water system, as defined in Section 19-4-102 ;
1520 (B) develop underground sources of water, including springs and wells; and
1521 (C) develop surface water sources.
1522 (5) (a) (i) Notwithstanding Subsection (3)(a), for fiscal year 2002-03 only, the lesser of
1523 the following amounts shall be transferred or deposited as provided in Subsections (5)(a)(ii)
1524 through (iv):
1525 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1526 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1527 (II) for the fiscal year; or
1528 (B) $18,743,000.
1529 (ii) (A) For fiscal year 2002-03 only, $500,000 of the amount described in Subsection
1530 (5)(a)(i) shall be deposited in the Transportation Corridor Preservation Revolving Loan Fund
1531 created in Section 72-2-117 .
1532 (B) At least 50% of the money deposited in the Transportation Corridor Preservation
1533 Revolving Loan Fund under Subsection (5)(a)(ii)(A) shall be used to fund loan applications
1534 made by the Department of Transportation at the request of local governments.
1535 (iii) For fiscal year 2002-03 only, $500,000 of the amount described in Subsection
1536 (5)(a)(i) shall be transferred as nonlapsing dedicated credits to the Department of
1537 Transportation for the State Park Access Highways Improvement Program created in Section
1538 72-3-207 .
1539 (iv) For fiscal year 2002-03 only, the amount described in Subsection (5)(a)(i) that
1540 remains after making the transfers and deposits required by Subsections (5)(a)(ii) and (iii) shall
1541 be deposited in the class B and class C roads account to be expended as provided in Title 72,
1542 Chapter 2, Transportation Finances Act, for the use of class B and C roads.
1543 (b) (i) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1544 2003, the lesser of the following amounts shall be used as provided in Subsections (5)(b)(ii)
1545 through (iv):
1546 (A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:

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- 51 - 1547 (I) by a 1/16% tax rate on the transactions described in Subsection (1); and
1548 (II) for the fiscal year; or
1549 (B) $18,743,000.
1550 (ii) (A) For a fiscal year beginning on or after July 1, 2003, 3% of the amount
1551 described in Subsection (5)(b)(i) shall be deposited each year in the Transportation Corridor
1552 Preservation Revolving Loan Fund created in Section 72-2-117 .
1553 (B) At least 50% of the money deposited in the Transportation Corridor Preservation
1554 Revolving Loan Fund under Subsection (5)(b)(ii)(A) shall be used to fund loan applications
1555 made by the Department of Transportation at the request of local governments.
1556 (iii) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1557 Subsection (5)(b)(i) shall be transferred each year as nonlapsing dedicated credits to the
1558 Department of Transportation for the State Park Access Highways Improvement Program
1559 created in Section 72-3-207 .
1560 (iv) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described
1561 in Subsection (5)(b)(i) shall be deposited in the class B and class C roads account to be
1562 expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class
1563 B and C roads.
1564 (6) Notwithstanding Subsection (3)(a), beginning on January 1, 2000, the Division of
1565 Finance shall deposit into the Centennial Highway Fund created in Section 72-2-118 a portion
1566 of the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate
1567 on the taxable transactions under Subsection (1).
1568 (7) Notwithstanding Subsection (3)(a), beginning on July 1, 1999, the commission
1569 shall deposit into the Airport to University of Utah Light Rail Restricted Account created in
1570 Section 17A-2-1064 the portion of the sales and use tax under Section 59-12-204 that is:
1571 (a) generated by a city or town that will have constructed within its boundaries the
1572 Airport to University of Utah Light Rail described in the Transportation Equity Act for the 21st
1573 Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
1574 (b) equal to the revenues generated by a 1/64% tax rate on the taxable items and
1575 services under Subsection (1).
1576 (8) (a) For purposes of amounts paid or charged as admission or user fees relating to
1577 the Olympic Winter Games of 2002, the amounts are considered to be paid or charged on the

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- 52 - 1578 day on which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 or a
1579 person designated by the Salt Lake Organizing Committee for the Olympic Winter Games of
1580 2002 sends a purchaser confirmation of the purchase of an admission or user fee described in
1581 Subsection (1)(f).
1582 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1583 commission shall make rules defining what constitutes sending a purchaser confirmation under
1584 Subsection (8)(a).
1585 (9) (a) For fiscal year 2002-03 only, the following amounts shall be subtracted from the
1586 total amount required to be deposited or transferred in accordance with Subsection (4):
1587 (i) $25,000 shall be subtracted from the total amount required to be transferred to the
1588 Division of Water Rights in accordance with Subsection (4)(a)(iv);
1589 (ii) $385,000 shall be subtracted from the total amount required to be deposited into
1590 the Agriculture Resource Development Fund in accordance with Subsection (4)(a)(iii);
1591 (iii) $350,000 shall be subtracted from the total amount required to be transferred to the
1592 Department of Natural Resources in accordance with Subsection (4)(a)(ii);
1593 (iv) $3,012,500 shall be subtracted from the total amount required to be deposited into
1594 the Drinking Water Loan Program Subaccount in accordance with Subsection (4)(a)(vii);
1595 (v) $3,012,500 shall be subtracted from the total amount required to be deposited into
1596 the Utah Wastewater Loan Program Subaccount in accordance with Subsection (4)(a)(vi); and
1597 (vi) $5,715,000 shall be subtracted from the total amount required to be deposited into
1598 the Water Resources Conservation and Development Fund in accordance with Subsection
1599 (4)(a)(v).
1600 (b) The amounts subtracted under Subsection (9)(a) shall be deposited into the General
1601 Fund.
1602 Section 4. Section 59-26-101 is enacted to read:
1603 CHAPTER 26. MULTI-CHANNEL VIDEO OR AUDIO
1604 SERVICE TAX ACT
1605 59-26-101. Title.
1606 This chapter is known as the "Multi-Channel Video or Audio Service Tax Act."
1607 Section 5. Section 59-26-102 is enacted to read:
1608 59-26-102. Definitions.

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- 53 -

House Floor Amendments 3-2-2004 kh/rlr 1609

As used in this chapter:
1610 (1) "multi-channel video or audio service provider" means any person or group of
1611 persons that:
1612 (a) provides multi-channel video or audio service and directly or indirectly owns a
1613 significant interest in the multi-channel video or audio service; or
1614 (b) otherwise controls or is responsible through any arrangement, the management and
1615 operation of the multi-channel video or audio service; and
1616 (2) "multi-channel video or audio service provider" includes the following except as
1617 specifically exempted by state or federal law:
1618 (a) a cable operator;
1619 (b) a CATV provider;
1620 (c) a multi-point distribution provider;
1621 (d) a MMDS provider;
1622 (e) a SMATV operator;
1623 (f) a direct-to-home satellite service provider; or
1624 (g) a DBS provider.
1625 Section 6. Section 59-26-103 is enacted to read:
1626 59-26-103. Imposition of tax -- Rate.
1627 Beginning on July 1, 2004, there is imposed as provided in this part a tax on the
1628 purchaser equal to 6.25% of amounts paid or charged for multi-channel video or audio service
1629 provided by a multi-channel video or audio service provider:
1630 (1) within the state; and
1631 (2) to the extent permitted by federal law.
1632 Section 7. Section 59-26-104 is enacted to read:
1633 59-26-104. Collection of tax.
1634 A multi-channel video or audio service provider shall:
1635 (1) collect the tax imposed by Section 59-26-103 from the purchaser; H AND h
1636 (2) remit the tax collected under Subsection (1) to the commission:
1637 (a) quarterly on or before the last day of the month immediately following the last day
1638 of each calendar quarter; and
1639 (b) on a return prescribed by the commission.

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- 54 - 1640 Section 8. Section 59-26-105 is enacted to read:
1641 59-26-105. Deposit of tax revenue.
1642 The commission shall deposit revenues generated by the tax imposed by this chapter
1643 into the General Fund.
1644 Section 9. Section 59-26-106 is enacted to read:
1645 59-26-106. Records.
1646 (1) A multi-channel video or audio service provider shall maintain records, statements,
1647 books, or accounts necessary to determine the amount of tax that the multi-channel video or
1648 audio service provider is required to remit to the commission under this chapter.
1649 (2) The commission may require a multi-channel video or audio service provider to
1650 make or keep the records, statements, books, or accounts the commission considers sufficient
1651 to show the amount of tax for which the multi-channel video or audio service provider is
1652 required to remit to the commission under this chapter:
1653 (a) by notice served upon that multi-channel video or audio service provider; or
1654 (b) by administrative rule made in accordance with Title 63, Chapter 46a, Utah
1655 Administrative Rulemaking Act.
1656 (3) After notice by the commission, a multi-channel video or audio service provider
1657 shall open the records, statements, books, or accounts specified in Subsection (2) for
1658 examination by the commission or a duly authorized agent of the commission.
1659 Section 10. Section 59-26-107 is enacted to read:
1660 59-26-107. Action for collection of tax -- Action for refund or credit of tax.
1661 (1) Except as provided in Subsections (2) through (5):
1662 (a) the commission shall assess a tax under this chapter within three years after a
1663 multi-channel video or audio service provider files a return; and
1664 (b) if the commission does not assess a tax under this chapter within the three-year
1665 period provided in Subsection (1)(a), the commission may not commence a proceeding to
1666 collect the tax.
1667 (2) The commission may assess a tax at any time if a multi-channel video or audio
1668 service provider:
1669 (a) files a false or fraudulent return with intent to evade; or
1670 (b) does not file a return.

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- 55 - 1671 (3) The commission may extend the period to make an assessment or to commence a
1672 proceeding to collect the tax under this chapter if:
1673 (a) the three-year period under Subsection (1) has not expired; and
1674 (b) the commission and the multi-channel video or audio service provider sign a
1675 written agreement:
1676 (i) authorizing the extension; and
1677 (ii) providing for the length of the extension.
1678 (4) If the commission delays an audit at the request of a multi-channel video or audio
1679 service provider, the commission may make an assessment as provided in Subsection (5) if:
1680 (a) the multi-channel video or audio service provider subsequently refuses to agree to
1681 an extension request by the commission; and
1682 (b) the three-year period under Subsection (1) expires before the commission
1683 completes the audit.
1684 (5) An assessment under Subsection (3) shall be:
1685 (a) for the time period for which the commission could not make an assessment
1686 because of the expiration of the three-year period; and
1687 (b) in an amount equal to the difference between:
1688 (i) the commission's estimate of the amount of tax the multi-channel video or audio
1689 service provider would have been assessed for the time period described in Subsection (5)(a);
1690 and
1691 (ii) the amount of tax the multi-channel video or audio service provider actually paid
1692 for the time period described in Subsection (5)(a).
1693 (6) (a) Except as provided in Subsection (6)(b), the commission may not make a credit
1694 or refund unless the multi-channel video or audio service provider files a claim with the
1695 commission within three years of the date of overpayment.
1696 (b) The commission shall extend the period for a multi-channel video or audio service
1697 provider to file a claim under Subsection (6)(a) if:
1698 (i) the three-year period under Subsection (6)(a) has not expired; and
1699 (ii) the commission and the multi-channel video or audio service provider sign a
1700 written agreement:
1701 (A) authorizing the extension; and

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- 56 - 1702 (B) providing for the length of the extension.
1703 Section 11. Section 59-26-108 is enacted to read:
1704 59-26-108. Rulemaking authority.
1705 The commission may make rules in accordance with Title 63, Chapter 46a, Utah
1706 Administrative Rulemaking Act, to implement and enforce this chapter.
1707 Section 12. Section 59-26-109 is enacted to read:
1708 59-26-109. Penalties and interest.
1709 A multi-channel video or audio service provider that fails to comply with any provision
1710 of this chapter is subject to penalties and interest as provided in Sections 59-1-401 and
1711 59-1-402 .
1712 Section 13. Section 59-26-110 is enacted to read:
1713 59-26-110. Revenue and Taxation Interim Committee study.
1714 The Revenue and Taxation Interim Committee shall during the 2004 interim:
1715 (1) study the tax imposed by this chapter;
1716 (2) recommend whether legislation should be drafted to modify any provision of this
1717 chapter; and
1718 (3) prepare any legislation that the Revenue and Taxation Interim Committee
1719 recommends in accordance with Subsection (2) for consideration by the Legislature during the
1720 2005 General Session.
1721 Section 14. Effective date.
1722 This bill takes effect on May 3, 2004, except that the amendments to Sections
1723 59-12-102 (Effective 07/01/04) and 59-12-103 (Effective 07/01/04) take effect on July 1, 2004.

Legislative Review Note
as of 3-1-04 5:57 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel