H.B. 9

This document includes House Committee Amendments incorporated into the bill on Fri, Jan 21, 2005 at 4:45 PM by chopkin. --> 1

SALES AND USE TAX - AGRICULTURAL
2 EXEMPTION VEHICLE LIMITATION
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Ronda Rudd Menlove
6
7 LONG TITLE
8 General Description:
9 This bill amends a sales and use tax exemption relating to agriculture.
10 Highlighted Provisions:
11 This bill:
12 . amends a sales and use tax exemption relating to certain tangible personal property
13 used in agriculture to provide that a vehicle is not included under the exemption if
14 the vehicle is H. required to be .H registered; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill takes effect on July 1, 2005.
20 Utah Code Sections Affected:
21 AMENDS:
22 59-12-104, as last amended by Chapters 1, 156, 255, 298 and 320, Laws of Utah 2004
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 59-12-104 is amended to read:
26 59-12-104. Exemptions.
27 The following sales and uses are exempt from the taxes imposed by this chapter:

28 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
29 under Chapter 13, Motor and Special Fuel Tax Act;
30 (2) sales to the state, its institutions, and its political subdivisions; however, this
31 exemption does not apply to sales of:
32 (a) construction materials except:
33 (i) construction materials purchased by or on behalf of institutions of the public
34 education system as defined in Utah Constitution Article X, Section 2, provided the
35 construction materials are clearly identified and segregated and installed or converted to real
36 property which is owned by institutions of the public education system; and
37 (ii) construction materials purchased by the state, its institutions, or its political
38 subdivisions which are installed or converted to real property by employees of the state, its
39 institutions, or its political subdivisions; or
40 (b) tangible personal property in connection with the construction, operation,
41 maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
42 providing additional project capacity, as defined in Section 11-13-103 ;
43 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
44 (i) the proceeds of each sale do not exceed $1; and
45 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
46 the cost of the item described in Subsection (3)[(a)](b) as goods consumed; and
47 (b) Subsection (3)(a) applies to:
48 (i) food and food ingredients; or
49 (ii) prepared food;
50 (4) sales of the following to a commercial airline carrier for in-flight consumption:
51 (a) food and food ingredients;
52 (b) prepared food; or
53 (c) services related to Subsection (4)(a) or (b);
54 (5) sales of parts and equipment for installation in aircraft operated by common carriers
55 in interstate or foreign commerce;
56 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
57 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
58 exhibitor, distributor, or commercial television or radio broadcaster;

59 (7) sales of cleaning or washing of tangible personal property by a coin-operated
60 laundry or dry cleaning machine;
61 (8) sales made to or by religious or charitable institutions in the conduct of their regular
62 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
63 fulfilled;
64 (9) sales of vehicles of a type required to be registered under the motor vehicle laws of
65 this state which are made to bona fide nonresidents of this state and are not afterwards
66 registered or used in this state except as necessary to transport them to the borders of this state;
67 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
68 (i) the item is intended for human use; and
69 (ii) (A) a prescription was issued for the item; or
70 (B) the item was purchased by a hospital or other medical facility; and
71 (b) (i) Subsection (10)(a) applies to:
72 (A) a drug;
73 (B) a syringe; or
74 (C) a stoma supply; and
75 (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
76 commission may by rule define the terms:
77 (A) "syringe"; or
78 (B) "stoma supply";
79 (11) sales or use of property, materials, or services used in the construction of or
80 incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
81 (12) (a) sales of an item described in Subsection (12)(c) served by:
82 (i) the following if the item described in Subsection (12)(c) is not available to the
83 general public:
84 (A) a church; or
85 (B) a charitable institution;
86 (ii) an institution of higher education if:
87 (A) the item described in Subsection (12)(c) is not available to the general public; or
88 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
89 offered by the institution of higher education; or

90 (b) sales of an item described in Subsection (12)(c) provided at:
91 (i) a medical facility; or
92 (ii) a nursing facility; and
93 (c) Subsections (12)(a) and (b) apply to:
94 (i) food and food ingredients;
95 (ii) prepared food; or
96 (iii) alcoholic beverages;
97 (13) isolated or occasional sales by persons not regularly engaged in business, except
98 the sale of vehicles or vessels required to be titled or registered under the laws of this state in
99 which case the tax is based upon:
100 (a) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
101 or
102 (b) in the absence of a bill of sale or other written evidence of value, the then existing
103 fair market value of the vehicle or vessel being sold as determined by the commission;
104 (14) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
105 (i) machinery and equipment:
106 (A) used in the manufacturing process;
107 (B) having an economic life of three or more years; and
108 (C) used:
109 (I) to manufacture an item sold as tangible personal property; and
110 (II) in new or expanding operations in a manufacturing facility in the state; and
111 (ii) subject to the provisions of Subsection (14)(b), normal operating replacements that:
112 (A) have an economic life of three or more years;
113 (B) are used in the manufacturing process in a manufacturing facility in the state;
114 (C) are used to replace or adapt an existing machine to extend the normal estimated
115 useful life of the machine; and
116 (D) do not include repairs and maintenance;
117 (b) the rates for the exemption under Subsection (14)(a)(ii) are as follows:
118 (i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
119 Subsection (14)(a)(ii) is exempt;
120 (ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described

121 in Subsection (14)(a)(ii) is exempt; and
122 (iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection
123 (14)(a)(ii) is exempt;
124 (c) for purposes of this Subsection (14), the commission shall by rule define the terms
125 "new or expanding operations" and "establishment"; and
126 (d) on or before October 1, 1991, and every five years after October 1, 1991, the
127 commission shall:
128 (i) review the exemptions described in Subsection (14)(a) and make recommendations
129 to the Revenue and Taxation Interim Committee concerning whether the exemptions should be
130 continued, modified, or repealed; and
131 (ii) include in its report:
132 (A) the cost of the exemptions;
133 (B) the purpose and effectiveness of the exemptions; and
134 (C) the benefits of the exemptions to the state;
135 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
136 (i) tooling;
137 (ii) special tooling;
138 (iii) support equipment;
139 (iv) special test equipment; or
140 (v) parts used in the repairs or renovations of tooling or equipment described in
141 Subsections (15)(a)(i) through (iv); and
142 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
143 (i) the tooling, equipment, or parts are used or consumed exclusively in the
144 performance of any aerospace or electronics industry contract with the United States
145 government or any subcontract under that contract; and
146 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
147 title to the tooling, equipment, or parts is vested in the United States government as evidenced
148 by:
149 (A) a government identification tag placed on the tooling, equipment, or parts; or
150 (B) listing on a government-approved property record if placing a government
151 identification tag on the tooling, equipment, or parts is impractical;

152 (16) intrastate movements of:
153 (a) freight by common carriers; or
154 (b) passengers:
155 (i) by taxicabs as described in SIC Code 4121 of the 1987 Standard Industrial
156 Classification Manual of the federal Executive Office of the President, Office of Management
157 and Budget;
158 (ii) transported by an establishment described in SIC Code 4111 of the 1987 Standard
159 Industrial Classification Manual of the federal Executive Office of the President, Office of
160 Management and Budget, if the transportation originates and terminates within a county of the
161 first, second, or third class; or
162 (iii) transported by the following described in SIC Code 4789 of the 1987 Standard
163 Industrial Classification Manual of the federal Executive Office of the President, Office of
164 Management and Budget:
165 (A) a horse-drawn cab; or
166 (B) a horse-drawn carriage;
167 (17) sales of newspapers or newspaper subscriptions;
168 (18) (a) except as provided in Subsection (18)(b), tangible personal property traded in
169 as full or part payment of the purchase price, except that for purposes of calculating sales or use
170 tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and
171 the tax is based upon:
172 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
173 vehicle being traded in; or
174 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
175 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
176 commission; and
177 (b) notwithstanding Subsection (18)(a), Subsection (18)(a) does not apply to the
178 following items of tangible personal property traded in as full or part payment of the purchase
179 price:
180 (i) money;
181 (ii) electricity;
182 (iii) water;

183 (iv) gas; or
184 (v) steam;
185 (19) sprays and insecticides used to control insects, diseases, and weeds for
186 commercial production of fruits, vegetables, feeds, seeds, and animal products, but not those
187 sprays and insecticides used in the processing of the products;
188 (20) (a) (i) sales of tangible personal property used or consumed primarily and directly
189 in farming operations, including sales of irrigation equipment and supplies used for agricultural
190 production purposes, whether or not they become part of real estate and whether or not
191 installed by farmer, contractor, or subcontractor, but not sales of:
192 (A) machinery, equipment, materials, and supplies used in a manner that is incidental
193 to farming, such as hand tools and maintenance and janitorial equipment and supplies;
194 (B) tangible personal property used in any activities other than farming, such as office
195 equipment and supplies, equipment and supplies used in sales or distribution of farm products,
196 in research, or in transportation; or
197 (C) [any] a vehicle required to be registered H. [ [ ] by the laws of this state [ ] ] .H
197a [, without regard to
198 the use to which the vehicle is put] H. [ in accordance with Title 41, Chapter 1a, Part 2,
199 Registration ] during the period ending two years after the date of the vehicle's purchase .H ; or
200 (ii) sales of parts used in the repairs or renovations of tangible personal property if the
201 tangible personal property is exempt under Subsection (20)(a); or
202 (b) sales of hay;
203 (21) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or
204 other agricultural produce if sold by a producer during the harvest season;
205 (22) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
206 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
207 (23) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
208 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
209 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
210 manufacturer, processor, wholesaler, or retailer;
211 (24) property stored in the state for resale;
212 (25) property brought into the state by a nonresident for his or her own personal use or
213 enjoyment while within the state, except property purchased for use in Utah by a nonresident

214 living and working in Utah at the time of purchase;
215 (26) property purchased for resale in this state, in the regular course of business, either
216 in its original form or as an ingredient or component part of a manufactured or compounded
217 product;
218 (27) property upon which a sales or use tax was paid to some other state, or one of its
219 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
220 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
221 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
222 Act;
223 (28) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
224 person for use in compounding a service taxable under the subsections;
225 (29) purchases made in accordance with the special supplemental nutrition program for
226 women, infants, and children established in 42 U.S.C. Sec. 1786;
227 (30) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
228 refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
229 of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
230 Manual of the federal Executive Office of the President, Office of Management and Budget;
231 (31) sales of boats of a type required to be registered under Title 73, Chapter 18, State
232 Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of
233 this state and are not thereafter registered or used in this state except as necessary to transport
234 them to the borders of this state;
235 (32) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
236 where a sales or use tax is not imposed, even if the title is passed in Utah;
237 (33) amounts paid for the purchase of telephone service for purposes of providing
238 telephone service;
239 (34) fares charged to persons transported directly by a public transit district created
240 under the authority of Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
241 (35) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
242 (36) (a) 45% of the sales price of any new manufactured home; and
243 (b) 100% of the sales price of any used manufactured home;
244 (37) sales relating to schools and fundraising sales;

245 (38) sales or rentals of durable medical equipment if a person presents a prescription
246 for the durable medical equipment;
247 (39) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
248 Section 72-11-102 ; and
249 (b) the commission shall by rule determine the method for calculating sales exempt
250 under Subsection (39)(a) that are not separately metered and accounted for in utility billings;
251 (40) sales to a ski resort of:
252 (a) snowmaking equipment;
253 (b) ski slope grooming equipment;
254 (c) passenger ropeways as defined in Section 72-11-102 ; or
255 (d) parts used in the repairs or renovations of equipment or passenger ropeways
256 described in Subsections (40)(a) through (c);
257 (41) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
258 (42) sales or rentals of the right to use or operate for amusement, entertainment, or
259 recreation a coin-operated amusement device as defined in Section 59-12-102 ;
260 (43) sales of cleaning or washing of tangible personal property by a coin-operated car
261 wash machine;
262 (44) sales by the state or a political subdivision of the state, except state institutions of
263 higher education as defined in Section 53B-3-102 , of:
264 (a) photocopies; or
265 (b) other copies of records held or maintained by the state or a political subdivision of
266 the state;
267 (45) (a) amounts paid:
268 (i) to a person providing intrastate transportation to an employer's employee to or from
269 the employee's primary place of employment;
270 (ii) by an:
271 (A) employee; or
272 (B) employer; and
273 (iii) pursuant to a written contract between:
274 (A) the employer; and
275 (B) (I) the employee; or

276 (II) a person providing transportation to the employer's employee; and
277 (b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
278 commission may for purposes of Subsection (45)(a) make rules defining what constitutes an
279 employee's primary place of employment;
280 (46) amounts paid for admission to an athletic event at an institution of higher
281 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
282 20 U.S.C. Sec. 1681 et seq.;
283 (47) sales of telephone service charged to a prepaid telephone calling card;
284 (48) (a) sales of:
285 (i) hearing aids;
286 (ii) hearing aid accessories; or
287 (iii) except as provided in Subsection (48)(b), parts used in the repairs or renovations
288 of hearing aids or hearing aid accessories; and
289 (b) for purposes of this Subsection (48), notwithstanding Subsection (48)(a)(iii),
290 "parts" does not include batteries;
291 (49) (a) sales made to or by:
292 (i) an area agency on aging; or
293 (ii) a senior citizen center owned by a county, city, or town; or
294 (b) sales made by a senior citizen center that contracts with an area agency on aging;
295 (50) (a) beginning on July 1, 2001, through June 30, 2007, and subject to Subsection
296 (50)(b), a sale or lease of semiconductor fabricating or processing materials regardless of
297 whether the semiconductor fabricating or processing materials:
298 (i) actually come into contact with a semiconductor; or
299 (ii) ultimately become incorporated into real property;
300 (b) (i) beginning on July 1, 2001, through June 30, 2002, 10% of the sale or lease
301 described in Subsection (50)(a) is exempt;
302 (ii) beginning on July 1, 2002, through June 30, 2003, 50% of the sale or lease
303 described in Subsection (50)(a) is exempt; and
304 (iii) beginning on July 1, 2003, through June 30, 2007, the entire amount of the sale or
305 lease described in Subsection (50)(a) is exempt; and
306 (c) each year on or before the November interim meeting, the Revenue and Taxation

307 Interim Committee shall:
308 (i) review the exemption described in this Subsection (50) and make recommendations
309 concerning whether the exemption should be continued, modified, or repealed; and
310 (ii) include in the review under this Subsection (50)(c):
311 (A) the cost of the exemption;
312 (B) the purpose and effectiveness of the exemption; and
313 (C) the benefits of the exemption to the state;
314 (51) an amount paid by or charged to a purchaser for accommodations and services
315 described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
316 59-12-104.2 ;
317 (52) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
318 sports event registration certificate in accordance with Section 41-3-306 for the event period
319 specified on the temporary sports event registration certificate;
320 (53) sales or uses of electricity, if the sales or uses are:
321 (a) made under a tariff adopted by the Public Service Commission of Utah only for
322 purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
323 source, as designated in the tariff by the Public Service Commission of Utah; and
324 (b) for an amount of electricity that is:
325 (i) unrelated to the amount of electricity used by the person purchasing the electricity
326 under the tariff described in Subsection (53)(a); and
327 (ii) equivalent to the number of kilowatthours specified in the tariff described in
328 Subsection (53)(a) that may be purchased under the tariff described in Subsection (53)(a);
329 (54) sales or rentals of mobility enhancing equipment if a person presents a
330 prescription for the mobility enhancing equipment;
331 (55) sales of water in a:
332 (a) pipe;
333 (b) conduit;
334 (c) ditch; or
335 (d) reservoir;
336 (56) sales of currency or coinage that constitute legal tender of the United States or of a
337 foreign nation;

338 (57) (a) sales of an item described in Subsection (57)(b) if the item:
339 (i) does not constitute legal tender of any nation; and
340 (ii) has a gold, silver, or platinum content of 80% or more; and
341 (b) Subsection (57)(a) applies to a gold, silver, or platinum:
342 (i) ingot;
343 (ii) bar;
344 (iii) medallion; or
345 (iv) decorative coin;
346 (58) amounts paid on a sale-leaseback transaction;
347 (59) sales of a prosthetic device:
348 (a) for use on or in a human;
349 (b) for which a prescription is issued; and
350 (c) to a person that presents a prescription for the prosthetic device;
351 (60) (a) except as provided in Subsection (60)(b), purchases, leases, or rentals of
352 machinery or equipment by an establishment described in Subsection (60)(c) if the machinery
353 or equipment is primarily used in the production or postproduction of the following media for
354 commercial distribution:
355 (i) a motion picture;
356 (ii) a television program;
357 (iii) a movie made for television;
358 (iv) a music video;
359 (v) a commercial;
360 (vi) a documentary; or
361 (vii) a medium similar to Subsections (60)(a)(i) through (vi) as determined by the
362 commission by administrative rule made in accordance with Subsection (60)(d); or
363 (b) notwithstanding Subsection (60)(a), purchases, leases, or rentals of machinery or
364 equipment by an establishment described in Subsection (60)(c) that is used for the production
365 or postproduction of the following are subject to the taxes imposed by this chapter:
366 (i) a live musical performance;
367 (ii) a live news program; or
368 (iii) a live sporting event;

369 (c) the following establishments listed in the 1997 North American Industry
370 Classification System of the federal Executive Office of the President, Office of Management
371 and Budget, apply to Subsections (60)(a) and (b):
372 (i) NAICS Code 512110; or
373 (ii) NAICS Code 51219; and
374 (d) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
375 commission may by rule:
376 (i) prescribe what constitutes a medium similar to Subsections (60)(a)(i) through (vi);
377 or
378 (ii) define:
379 (A) "commercial distribution";
380 (B) "live musical performance";
381 (C) "live news program"; or
382 (D) "live sporting event";
383 (61) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
384 or before June 30, 2009, of machinery or equipment that:
385 (i) is leased or purchased for or by a facility that:
386 (A) is a renewable energy production facility;
387 (B) is located in the state; and
388 (C) (I) becomes operational on or after July 1, 2004; or
389 (II) has its generation capacity increased by one or more megawatts on or after July 1,
390 2004 as a result of the use of the machinery or equipment;
391 (ii) has an economic life of five or more years; and
392 (iii) is used to make the facility or the increase in capacity of the facility described in
393 Subsection (61)(a)(i) operational up to the point of interconnection with an existing
394 transmission grid including:
395 (A) a wind turbine;
396 (B) generating equipment;
397 (C) a control and monitoring system;
398 (D) a power line;
399 (E) substation equipment;

400 (F) lighting;
401 (G) fencing;
402 (H) pipes; or
403 (I) other equipment used for locating a power line or pole; and
404 (b) this Subsection (61) does not apply to:
405 (i) machinery or equipment used in construction of:
406 (A) a new renewable energy production facility; or
407 (B) the increase in the capacity of a renewable energy production facility;
408 (ii) contracted services required for construction and routine maintenance activities;
409 and
410 (iii) unless the machinery or equipment is used or acquired for an increase in capacity
411 of the facility described in Subsection (61)(a)(i)(C)(II), machinery or equipment used or
412 acquired after:
413 (A) the renewable energy production facility described in Subsection (61)(a)(i) is
414 operational as described in Subsection (61)(a)(iii); or
415 (B) the increased capacity described in Subsection (61)(a)(i) is operational as described
416 in Subsection (61)(a)(iii);
417 (62) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
418 or before June 30, 2009, of machinery or equipment that:
419 (i) is leased or purchased for or by a facility that:
420 (A) is a waste energy production facility;
421 (B) is located in the state; and
422 (C) (I) becomes operational on or after July 1, 2004; or
423 (II) has its generation capacity increased by one or more megawatts on or after July 1,
424 2004 as a result of the use of the machinery or equipment;
425 (ii) has an economic life of five or more years; and
426 (iii) is used to make the facility or the increase in capacity of the facility described in
427 Subsection (62)(a)(i) operational up to the point of interconnection with an existing
428 transmission grid including:
429 (A) generating equipment;
430 (B) a control and monitoring system;

431 (C) a power line;
432 (D) substation equipment;
433 (E) lighting;
434 (F) fencing;
435 (G) pipes; or
436 (H) other equipment used for locating a power line or pole; and
437 (b) this Subsection (62) does not apply to:
438 (i) machinery or equipment used in construction of:
439 (A) a new waste energy facility; or
440 (B) the increase in the capacity of a waste energy facility;
441 (ii) contracted services required for construction and routine maintenance activities;
442 and
443 (iii) unless the machinery or equipment is used or acquired for an increase in capacity
444 described in Subsection (62)(a)(i)(C)(II), machinery or equipment used or acquired after:
445 (A) the waste energy facility described in Subsection (62)(a)(i) is operational as
446 described in Subsection (62)(a)(iii); or
447 (B) the increased capacity described in Subsection (62)(a)(i) is operational as described
448 in Subsection (62)(a)(iii); and
449 (63) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
450 or before June 30, 2009, of machinery or equipment that:
451 (i) is leased or purchased for or by a facility that:
452 (A) is located in the state;
453 (B) produces fuel from biomass energy including:
454 (I) methanol; or
455 (II) ethanol; and
456 (C) (I) becomes operational on or after July 1, 2004; or
457 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
458 a result of the installation of the machinery or equipment;
459 (ii) has an economic life of five or more years; and
460 (iii) is installed on the facility described in Subsection (63)(a)(i);
461 (b) this Subsection (63) does not apply to:

462 (i) machinery or equipment used in construction of:
463 (A) a new facility described in Subsection (63)(a)(i); or
464 (B) the increase in capacity of the facility described in Subsection (63)(a)(i); or
465 (ii) contracted services required for construction and routine maintenance activities;
466 and
467 (iii) unless the machinery or equipment is used or acquired for an increase in capacity
468 described in Subsection (63)(a)(i)(C)(II), machinery or equipment used or acquired after:
469 (A) the facility described in Subsection (63)(a)(i) is operational; or
470 (B) the increased capacity described in Subsection (63)(a)(i) is operational.
471 Section 2. Effective date.
472 This bill takes effect on July 1, 2005.




Legislative Review Note
as of 12-7-04 8:41 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel

Interim Committee Note
as of 12-07-04 1:21 PM

The Revenue and Taxation Interim Committee recommended this bill.

Mixed Membership Committee Note
as of 12-07-04 1:21 PM

The Tax Review Commission recommended this bill.
Membership: 4 legislators 10 non-legislators
Legislative Vote: 4 voting for 0 voting against 0 absent