Fifth Substitute S.B. 183

Senator Gregory S. Bell proposes the following substitute bill:

1 PUBLIC TRANSIT DISTRICT ANNEXATION
2 AND FUNDING AMENDMENTS
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gregory S. Bell
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Utah Public Transit District Act, the Limited Purpose Local
10 Government Entities Title, and the Sales and Use Tax Act by amending provisions
11 related to the funding and annexation of certain public transit districts.
12 Highlighted Provisions:
13 This bill:
14 . provides that a general obligation bond issued by a public transit district shall be
15 secured as required for municipal general obligation bonds;
16 . authorizes a county to impose a sales and use tax of .25% for public transportation
17 costs and improvements if a single public transit district has 60% or more of the
18 population of the county residing within the public transit district boundaries;
19 . authorizes a county that has 60% or more of the population residing within a single
20 public transit district's boundaries to submit a proposal to the county's registered
21 voters at a general election or at a special election on a municipal general election
22 date to impose a sales and use tax of .25% for public transportation costs and
23 improvements;
24 . provides that if the county's registered voters vote to approve becoming a part of the
25 public transit district:

26 . the county shall be annexed into the public transit district;
27 . a countywide sales tax of .25% shall be imposed for public transportation; and
28 . certain existing sales and use taxes imposed by cities or towns within the county
29 are superseded;
30 . provides procedures and requirements for imposing the countywide .25% tax;
31 . makes technical changes.
32 Monies Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 This bill takes effect on July 1, 2005.
36 This bill provides a coordination clause.
37 Utah Code Sections Affected:
38 AMENDS:
39 17A-2-1058, as last amended by Chapter 9, Laws of Utah 2001
40 17B-2-512, as last amended by Chapters 89 and 170, Laws of Utah 2003
41 59-12-102, as last amended by Chapters 1, 156, 255, 298 and 300, Laws of Utah 2004
42 59-12-207.1, as last amended by Chapter 255, Laws of Utah 2004
43 59-12-503, as enacted by Chapter 131, Laws of Utah 1997
44 59-12-504, as last amended by Chapter 255, Laws of Utah 2004
45 59-12-1001, as last amended by Chapter 255, Laws of Utah 2004
46 ENACTS:
47 59-12-501.5, Utah Code Annotated 1953
48
49 Be it enacted by the Legislature of the state of Utah:
50 Section 1. Section 17A-2-1058 is amended to read:
51 17A-2-1058. District may issue bonds.
52 [Any] (1) A district organized under this part may, in the manner and subject to the
53 limitations and restrictions contained in Title 11, Chapter 14, Utah Municipal Bond Act,
54 authorize, issue and dispose of its negotiable bonds for purposes of paying all or part of the
55 cost of acquiring, improving, or extending any one or more improvements, facilities, or
56 property authorized to be acquired under this part.

57 (2) Notwithstanding any other provision of law and notwithstanding any limitations
58 contained in Sections 17A-2-1044 and 17A-2-1059 , a general obligation bond issued by a
59 district shall be secured as provided in Section 11-14-19 .
60 Section 2. Section 17B-2-512 is amended to read:
61 17B-2-512. Protests -- Election.
62 (1) (a) An owner of private real property located within or a registered voter residing
63 within an area proposed to be annexed may protest an annexation by filing a written protest
64 with the board of trustees of the proposed annexing local district, except:
65 (i) as provided in Section 17B-2-513 ;
66 (ii) for an annexation under Section 17B-2-515 ; and
67 (iii) for an annexation proposed by a local district that receives sales and use tax funds
68 from the counties, cities, and towns within the local district that impose a sales and use tax
69 under Section 59-12-501 or 59-12-501.5 .
70 (b) A protest of a boundary adjustment is not governed by this section but is governed
71 by Section 17B-2-516 .
72 (2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of
73 the public hearing under Section 17B-2-509 .
74 (3) (a) Except as provided in Subsection (4), the local district shall hold an election on
75 the proposed annexation if:
76 (i) timely protests are filed by:
77 (A) the owners of private real property that:
78 (I) is located within the area proposed to be annexed;
79 (II) covers at least 10% of the total private land area within the entire area proposed to
80 be annexed and within each applicable area; and
81 (III) is equal in assessed value to at least 10% of the assessed value of all private real
82 property within the entire area proposed to be annexed and within each applicable area; or
83 (B) registered voters residing within the entire area proposed to be annexed and within
84 each applicable area equal in number to at least 10% of the number of votes cast within the
85 entire area proposed for annexation and within each applicable area, respectively, for the office
86 of governor at the last regular general election before the filing of the petition; or
87 (ii) the proposed annexing local district is one that receives sales and use tax funds

88 from the counties, cities, and towns within the local district that impose a sales and use tax
89 under Section 59-12-501 or 59-12-501.5 .
90 (b) (i) At each election held under Subsection (3)(a)(ii), the ballot question shall be
91 phrased to indicate that a voter's casting a vote for or against the annexation includes also a
92 vote for or against the imposition of the sales and use tax as provided in Section 59-12-501 or
93 59-12-501.5 .
94 (ii) Except as otherwise provided in this part, each election under Subsection (3)(a)
95 shall be governed by Title 20A, Election Code.
96 (c) If a majority of registered voters residing within the area proposed to be annexed
97 and voting on the proposal vote:
98 (i) in favor of annexation, the board of trustees shall, subject to Subsections
99 17B-2-514 (1)(b), (2), and (3), complete the annexation by adopting a resolution approving
100 annexation of the area; or
101 (ii) against annexation, the annexation process is terminated, the board may not adopt a
102 resolution approving annexation of the area, and the area proposed to be annexed may not for
103 two years be the subject of an effort under this part to annex to the same local district.
104 (4) If sufficient protests are filed under this section to require an election for a
105 proposed annexation to which the protest provisions of this section are applicable, a board of
106 trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and
107 terminating the annexation process without holding an election.
108 Section 3. Section 59-12-102 is amended to read:
109 59-12-102. Definitions.
110 As used in this chapter:
111 (1) (a) "Admission or user fees" includes season passes.
112 (b) "Admission or user fees" does not include annual membership dues to private
113 organizations.
114 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
115 Section 59-12-102.1 .
116 (3) "Agreement combined tax rate" means the sum of the tax rates:
117 (a) listed under Subsection (4); and
118 (b) that are imposed within a local taxing jurisdiction.

119 (4) "Agreement sales and use tax" means a tax imposed under:
120 (a) Subsection 59-12-103 (2)(a)(i);
121 (b) Section 59-12-204 ;
122 (c) Section 59-12-401 ;
123 (d) Section 59-12-402 ;
124 (e) Section 59-12-501 ;
125 (f) Section 59-12-501.5 ;
126 [(f)] (g) Section 59-12-502 ;
127 [(g)] (h) Section 59-12-703 ;
128 [(h)] (i) Section 59-12-802 ;
129 [(i)] (j) Section 59-12-804 ;
130 [(j)] (k) Section 59-12-1001 ;
131 [(k)] (l) Section 59-12-1102 ;
132 [(l)] (m) Section 59-12-1302 ;
133 [(m)] (n) Section 59-12-1402 ; or
134 [(n)] (o) Section 59-12-1503 .
135 (5) "Aircraft" is as defined in Section 72-10-102 .
136 (6) "Alcoholic beverage" means a beverage that:
137 (a) is suitable for human consumption; and
138 (b) contains .5% or more alcohol by volume.
139 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
140 (8) "Authorized carrier" means:
141 (a) in the case of vehicles operated over public highways, the holder of credentials
142 indicating that the vehicle is or will be operated pursuant to both the International Registration
143 Plan and the International Fuel Tax Agreement;
144 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
145 certificate or air carrier's operating certificate; or
146 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
147 stock, the holder of a certificate issued by the United States Surface Transportation Board.
148 (9) (a) Except as provided in Subsection (9)(b), "biomass energy" means any of the
149 following that is used as the primary source of energy to produce fuel or electricity:

150 (i) material from a plant or tree; or
151 (ii) other organic matter that is available on a renewable basis, including:
152 (A) slash and brush from forests and woodlands;
153 (B) animal waste;
154 (C) methane produced:
155 (I) at landfills; or
156 (II) as a byproduct of the treatment of wastewater residuals;
157 (D) aquatic plants; and
158 (E) agricultural products.
159 (b) "Biomass energy" does not include:
160 (i) black liquor;
161 (ii) treated woods; or
162 (iii) biomass from municipal solid waste other than methane produced:
163 (A) at landfills; or
164 (B) as a byproduct of the treatment of wastewater residuals.
165 (10) "Certified automated system" means software certified by the governing board of
166 the agreement in accordance with Section 59-12-102.1 that:
167 (a) calculates the agreement sales and use tax imposed within a local taxing
168 jurisdiction:
169 (i) on a transaction; and
170 (ii) in the states that are members of the agreement;
171 (b) determines the amount of agreement sales and use tax to remit to a state that is a
172 member of the agreement; and
173 (c) maintains a record of the transaction described in Subsection (10)(a)(i).
174 (11) "Certified service provider" means an agent certified:
175 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
176 and
177 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
178 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
179 own purchases.
180 (12) (a) Subject to Subsection (12)(b), "clothing" means all human wearing apparel

181 suitable for general use.
182 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
183 commission shall make rules:
184 (i) listing the items that constitute "clothing"; and
185 (ii) that are consistent with the list of items that constitute "clothing" under the
186 agreement.
187 (13) (a) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device"
188 means:
189 (i) a coin-operated amusement, skill, or ride device;
190 (ii) that is not controlled through seller-assisted, over-the-counter, sales of tokens; and
191 (iii) includes a music machine, pinball machine, billiard machine, video game machine,
192 arcade machine, and a mechanical or electronic skill game or ride.
193 (b) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device" does
194 not mean a coin-operated amusement device possessing a coinage mechanism that:
195 (i) accepts and registers multiple denominations of coins; and
196 (ii) allows the seller to collect the sales and use tax at the time an amusement device is
197 activated and operated by a person inserting coins into the device.
198 (14) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
199 fuels that does not constitute industrial use under Subsection (34) or residential use under
200 Subsection (63).
201 (15) (a) "Common carrier" means a person engaged in or transacting the business of
202 transporting passengers, freight, merchandise, or other property for hire within this state.
203 (b) (i) "Common carrier" does not include a person who, at the time the person is
204 traveling to or from that person's place of employment, transports a passenger to or from the
205 passenger's place of employment.
206 (ii) For purposes of Subsection (15)(b)(i), in accordance with Title 63, Chapter 46a,
207 Utah Administrative Rulemaking Act, the commission may make rules defining what
208 constitutes a person's place of employment.
209 (16) "Component part" includes:
210 (a) poultry, dairy, and other livestock feed, and their components;
211 (b) baling ties and twine used in the baling of hay and straw;

212 (c) fuel used for providing temperature control of orchards and commercial
213 greenhouses doing a majority of their business in wholesale sales, and for providing power for
214 off-highway type farm machinery; and
215 (d) feed, seeds, and seedlings.
216 (17) "Computer" means an electronic device that accepts information:
217 (a) (i) in digital form; or
218 (ii) in a form similar to digital form; and
219 (b) manipulates that information for a result based on a sequence of instructions.
220 (18) "Computer software" means a set of coded instructions designed to cause:
221 (a) a computer to perform a task; or
222 (b) automatic data processing equipment to perform a task.
223 (19) "Construction materials" means any tangible personal property that will be
224 converted into real property.
225 (20) "Delivered electronically" means delivered to a purchaser by means other than
226 tangible storage media.
227 (21) (a) "Delivery charge" means a charge:
228 (i) by a seller of:
229 (A) tangible personal property; or
230 (B) services; and
231 (ii) for preparation and delivery of the tangible personal property or services described
232 in Subsection (21)(a)(i) to a location designated by the purchaser.
233 (b) "Delivery charge" includes a charge for the following:
234 (i) transportation;
235 (ii) shipping;
236 (iii) postage;
237 (iv) handling;
238 (v) crating; or
239 (vi) packing.
240 (22) "Dietary supplement" means a product, other than tobacco, that:
241 (a) is intended to supplement the diet;
242 (b) contains one or more of the following dietary ingredients:

243 (i) a vitamin;
244 (ii) a mineral;
245 (iii) an herb or other botanical;
246 (iv) an amino acid;
247 (v) a dietary substance for use by humans to supplement the diet by increasing the total
248 dietary intake; or
249 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
250 described in Subsections (22)(b)(i) through (v);
251 (c) (i) except as provided in Subsection (22)(c)(ii), is intended for ingestion in:
252 (A) tablet form;
253 (B) capsule form;
254 (C) powder form;
255 (D) softgel form;
256 (E) gelcap form; or
257 (F) liquid form; or
258 (ii) notwithstanding Subsection (22)(c)(i), if the product is not intended for ingestion in
259 a form described in Subsections (22)(c)(i)(A) through (F), is not represented:
260 (A) as conventional food; and
261 (B) for use as a sole item of:
262 (I) a meal; or
263 (II) the diet; and
264 (d) is required to be labeled as a dietary supplement:
265 (i) identifiable by the "Supplemental Facts" box found on the label; and
266 (ii) as required by 21 C.F.R. Sec. 101.36.
267 (23) (a) "Direct mail" means printed material delivered or distributed by United States
268 mail or other delivery service:
269 (i) to:
270 (A) a mass audience; or
271 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
272 (ii) if the cost of the printed material is not billed directly to the recipients.
273 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a

274 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
275 (c) "Direct mail" does not include multiple items of printed material delivered to a
276 single address.
277 (24) (a) "Drug" means a compound, substance, or preparation, or a component of a
278 compound, substance, or preparation that is:
279 (i) recognized in:
280 (A) the official United States Pharmacopoeia;
281 (B) the official Homeopathic Pharmacopoeia of the United States;
282 (C) the official National Formulary; or
283 (D) a supplement to a publication listed in Subsections (24)(a)(i)(A) through (C);
284 (ii) intended for use in the:
285 (A) diagnosis of disease;
286 (B) cure of disease;
287 (C) mitigation of disease;
288 (D) treatment of disease; or
289 (E) prevention of disease; or
290 (iii) intended to affect:
291 (A) the structure of the body; or
292 (B) any function of the body.
293 (b) "Drug" does not include:
294 (i) food and food ingredients;
295 (ii) a dietary supplement;
296 (iii) an alcoholic beverage; or
297 (iv) a prosthetic device.
298 (25) (a) Except as provided in Subsection (25)(c), "durable medical equipment" means
299 equipment that:
300 (i) can withstand repeated use;
301 (ii) is primarily and customarily used to serve a medical purpose;
302 (iii) generally is not useful to a person in the absence of illness or injury;
303 (iv) is not worn in or on the body;
304 (v) is listed as eligible for payment under:

305 (A) Title XVIII of the federal Social Security Act; or
306 (B) the state plan for medical assistance under Title XIX of the federal Social Security
307 Act; and
308 (vi) is used for home use only.
309 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
310 equipment described in Subsection (25)(a).
311 (c) Notwithstanding Subsection (25)(a), "durable medical equipment" does not include
312 mobility enhancing equipment.
313 (26) "Electronic" means:
314 (a) relating to technology; and
315 (b) having:
316 (i) electrical capabilities;
317 (ii) digital capabilities;
318 (iii) magnetic capabilities;
319 (iv) wireless capabilities;
320 (v) optical capabilities;
321 (vi) electromagnetic capabilities; or
322 (vii) capabilities similar to Subsections (26)(b)(i) through (vi).
323 (27) (a) "Food and food ingredients" means substances:
324 (i) regardless of whether the substances are in:
325 (A) liquid form;
326 (B) concentrated form;
327 (C) solid form;
328 (D) frozen form;
329 (E) dried form; or
330 (F) dehydrated form; and
331 (ii) that are:
332 (A) sold for:
333 (I) ingestion by humans; or
334 (II) chewing by humans; and
335 (B) consumed for the substance's:

336 (I) taste; or
337 (II) nutritional value.
338 (b) "Food and food ingredients" does not include:
339 (i) an alcoholic beverage;
340 (ii) tobacco; or
341 (iii) prepared food.
342 (28) (a) "Fundraising sales" means sales:
343 (i) (A) made by a school; or
344 (B) made by a school student;
345 (ii) that are for the purpose of raising funds for the school to purchase equipment,
346 materials, or provide transportation; and
347 (iii) that are part of an officially sanctioned school activity.
348 (b) For purposes of Subsection (28)(a)(iii), "officially sanctioned school activity"
349 means a school activity:
350 (i) that is conducted in accordance with a formal policy adopted by the school or school
351 district governing the authorization and supervision of fundraising activities;
352 (ii) that does not directly or indirectly compensate an individual teacher or other
353 educational personnel by direct payment, commissions, or payment in kind; and
354 (iii) the net or gross revenues from which are deposited in a dedicated account
355 controlled by the school or school district.
356 (29) "Geothermal energy" means energy contained in heat that continuously flows
357 outward from the earth that is used as the sole source of energy to produce electricity.
358 (30) "Governing board of the agreement" means the governing board of the agreement
359 that is:
360 (a) authorized to administer the agreement; and
361 (b) established in accordance with the agreement.
362 (31) (a) "Hearing aid" means:
363 (i) an instrument or device having an electronic component that is designed to:
364 (A) (I) improve impaired human hearing; or
365 (II) correct impaired human hearing; and
366 (B) (I) be worn in the human ear; or

367 (II) affixed behind the human ear;
368 (ii) an instrument or device that is surgically implanted into the cochlea; or
369 (iii) a telephone amplifying device.
370 (b) "Hearing aid" does not include:
371 (i) except as provided in Subsection (31)(a)(i)(B) or (31)(a)(ii), an instrument or device
372 having an electronic component that is designed to be worn on the body;
373 (ii) except as provided in Subsection (31)(a)(iii), an assistive listening device or system
374 designed to be used by one individual, including:
375 (A) a personal amplifying system;
376 (B) a personal FM system;
377 (C) a television listening system; or
378 (D) a device or system similar to a device or system described in Subsections
379 (31)(b)(ii)(A) through (C); or
380 (iii) an assistive listening device or system designed to be used by more than one
381 individual, including:
382 (A) a device or system installed in:
383 (I) an auditorium;
384 (II) a church;
385 (III) a conference room;
386 (IV) a synagogue; or
387 (V) a theater; or
388 (B) a device or system similar to a device or system described in Subsections
389 (31)(b)(iii)(A)(I) through (V).
390 (32) (a) "Hearing aid accessory" means a hearing aid:
391 (i) component;
392 (ii) attachment; or
393 (iii) accessory.
394 (b) "Hearing aid accessory" includes:
395 (i) a hearing aid neck loop;
396 (ii) a hearing aid cord;
397 (iii) a hearing aid ear mold;

398 (iv) hearing aid tubing;
399 (v) a hearing aid ear hook; or
400 (vi) a hearing aid remote control.
401 (c) "Hearing aid accessory" does not include:
402 (i) a component, attachment, or accessory designed to be used only with an:
403 (A) instrument or device described in Subsection (31)(b)(i); or
404 (B) assistive listening device or system described in Subsection (31)(b)(ii) or (iii); or
405 (ii) a hearing aid battery.
406 (33) "Hydroelectric energy" means water used as the sole source of energy to produce
407 electricity.
408 (34) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
409 other fuels:
410 (a) in mining or extraction of minerals;
411 (b) in agricultural operations to produce an agricultural product up to the time of
412 harvest or placing the agricultural product into a storage facility, including:
413 (i) commercial greenhouses;
414 (ii) irrigation pumps;
415 (iii) farm machinery;
416 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
417 registered under Title 41, Chapter 1a, Part 2, Registration; and
418 (v) other farming activities;
419 (c) in manufacturing tangible personal property at an establishment described in SIC
420 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
421 Executive Office of the President, Office of Management and Budget; or
422 (d) by a scrap recycler if:
423 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
424 one or more of the following items into prepared grades of processed materials for use in new
425 products:
426 (A) iron;
427 (B) steel;
428 (C) nonferrous metal;

429 (D) paper;
430 (E) glass;
431 (F) plastic;
432 (G) textile; or
433 (H) rubber; and
434 (ii) the new products under Subsection (34)(d)(i) would otherwise be made with
435 nonrecycled materials.
436 (35) (a) "Lease" or "rental" means a transfer of possession or control of tangible
437 personal property for:
438 (i) (A) a fixed term; or
439 (B) an indeterminate term; and
440 (ii) consideration.
441 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
442 amount of consideration may be increased or decreased by reference to the amount realized
443 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
444 Code.
445 (c) "Lease" or "rental" does not include:
446 (i) a transfer of possession or control of property under a security agreement or
447 deferred payment plan that requires the transfer of title upon completion of the required
448 payments;
449 (ii) a transfer of possession or control of property under an agreement:
450 (A) that requires the transfer of title upon completion of required payments; and
451 (B) in which the payment of an option price does not exceed the greater of:
452 (I) $100; or
453 (II) 1% of the total required payments; or
454 (iii) providing tangible personal property along with an operator for a fixed period of
455 time or an indeterminate period of time if the operator is necessary for equipment to perform as
456 designed.
457 (d) For purposes of Subsection (35)(c)(iii), an operator is necessary for equipment to
458 perform as designed if the operator's duties exceed the:
459 (i) set-up of tangible personal property;

460 (ii) maintenance of tangible personal property; or
461 (iii) inspection of tangible personal property.
462 (36) "Load and leave" means delivery to a purchaser by use of a tangible storage media
463 if the tangible storage media is not physically transferred to the purchaser.
464 (37) "Local taxing jurisdiction" means a:
465 (a) county that is authorized to impose an agreement sales and use tax;
466 (b) city that is authorized to impose an agreement sales and use tax; or
467 (c) town that is authorized to impose an agreement sales and use tax.
468 (38) "Manufactured home" is as defined in Section 58-56-3 .
469 (39) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
470 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
471 Industrial Classification Manual of the federal Executive Office of the President, Office of
472 Management and Budget; or
473 (b) a scrap recycler if:
474 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
475 one or more of the following items into prepared grades of processed materials for use in new
476 products:
477 (A) iron;
478 (B) steel;
479 (C) nonferrous metal;
480 (D) paper;
481 (E) glass;
482 (F) plastic;
483 (G) textile; or
484 (H) rubber; and
485 (ii) the new products under Subsection (39)(b)(i) would otherwise be made with
486 nonrecycled materials.
487 (40) "Mobile home" is as defined in Section 58-56-3 .
488 (41) "Mobile telecommunications service" is as defined in the Mobile
489 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
490 (42) (a) Except as provided in Subsection (42)(c), "mobility enhancing equipment"

491 means equipment that is:
492 (i) primarily and customarily used to provide or increase the ability to move from one
493 place to another;
494 (ii) appropriate for use in a:
495 (A) home; or
496 (B) motor vehicle;
497 (iii) not generally used by persons with normal mobility; and
498 (iv) listed as eligible for payment under:
499 (A) Title XVIII of the federal Social Security Act; or
500 (B) the state plan for medical assistance under Title XIX of the federal Social Security
501 Act.
502 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
503 the equipment described in Subsection (42)(a).
504 (c) Notwithstanding Subsection (42)(a), "mobility enhancing equipment" does not
505 include:
506 (i) a motor vehicle;
507 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
508 vehicle manufacturer;
509 (iii) durable medical equipment; or
510 (iv) a prosthetic device.
511 (43) "Model 1 seller" means a seller that has selected a certified service provider as the
512 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
513 use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
514 seller's own purchases.
515 (44) "Model 2 seller" means a seller that:
516 (a) except as provided in Subsection (44)(b), has selected a certified automated system
517 to perform the seller's sales tax functions for agreement sales and use taxes; and
518 (b) notwithstanding Subsection (44)(a), retains responsibility for remitting all of the
519 sales tax:
520 (i) collected by the seller; and
521 (ii) to the appropriate local taxing jurisdiction.

522 (45) (a) Subject to Subsection (45)(b), "model 3 seller" means a seller that has:
523 (i) sales in at least five states that are members of the agreement;
524 (ii) total annual sales revenues of at least $500,000,000;
525 (iii) a proprietary system that calculates the amount of tax:
526 (A) for an agreement sales and use tax; and
527 (B) due to each local taxing jurisdiction; and
528 (iv) entered into a performance agreement with the governing board of the agreement.
529 (b) For purposes of Subsection (45)(a), "model 3 seller" includes an affiliated group of
530 sellers using the same proprietary system.
531 (46) "Modular home" means a modular unit as defined in Section 58-56-3 .
532 (47) "Motor vehicle" is as defined in Section 41-1a-102 .
533 (48) (a) "Other fuels" means products that burn independently to produce heat or
534 energy.
535 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
536 personal property.
537 (49) "Person" includes any individual, firm, partnership, joint venture, association,
538 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
539 municipality, district, or other local governmental entity of the state, or any group or
540 combination acting as a unit.
541 (50) "Place of primary use":
542 (a) for telephone service other than mobile telecommunications service, means the
543 street address representative of where the purchaser's use of the telephone service primarily
544 occurs, which shall be:
545 (i) the residential street address of the purchaser; or
546 (ii) the primary business street address of the purchaser; or
547 (b) for mobile telecommunications service, is as defined in the Mobile
548 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
549 (51) "Postproduction" means an activity related to the finishing or duplication of a
550 medium described in Subsection 59-12-104 (60)(a).
551 (52) (a) "Prepared food" means:
552 (i) food:

553 (A) sold in a heated state; or
554 (B) heated by a seller;
555 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
556 item; or
557 (iii) except as provided in Subsection (52)(c), food sold with an eating utensil provided
558 by the seller, including a:
559 (A) plate;
560 (B) knife;
561 (C) fork;
562 (D) spoon;
563 (E) glass;
564 (F) cup;
565 (G) napkin; or
566 (H) straw.
567 (b) "Prepared food" does not include:
568 (i) food that a seller only:
569 (A) cuts;
570 (B) repackages; or
571 (C) pasteurizes; or
572 (ii) (A) the following:
573 (I) raw egg;
574 (II) raw fish;
575 (III) raw meat;
576 (IV) raw poultry; or
577 (V) a food containing an item described in Subsections (52)(b)(ii)(A)(I) through (IV);
578 and
579 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
580 Food and Drug Administration's Food Code that a consumer cook the items described in
581 Subsection (52)(b)(ii)(A) to prevent food borne illness.
582 (c) Notwithstanding Subsection (52)(a)(iii), an eating utensil provided by the seller
583 does not include the following used to transport the food:

584 (i) a container; or
585 (ii) packaging.
586 (53) "Prescription" means an order, formula, or recipe that is issued:
587 (a) (i) orally;
588 (ii) in writing;
589 (iii) electronically; or
590 (iv) by any other manner of transmission; and
591 (b) by a licensed practitioner authorized by the laws of a state.
592 (54) (a) Except as provided in Subsection (54)(b)(ii) or (iii), "prewritten computer
593 software" means computer software that is not designed and developed:
594 (i) by the author or other creator of the computer software; and
595 (ii) to the specifications of a specific purchaser.
596 (b) "Prewritten computer software" includes:
597 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
598 software is not designed and developed:
599 (A) by the author or other creator of the computer software; and
600 (B) to the specifications of a specific purchaser;
601 (ii) notwithstanding Subsection (54)(a), computer software designed and developed by
602 the author or other creator of the computer software to the specifications of a specific purchaser
603 if the computer software is sold to a person other than the purchaser; or
604 (iii) notwithstanding Subsection (54)(a) and except as provided in Subsection (54)(c),
605 prewritten computer software or a prewritten portion of prewritten computer software:
606 (A) that is modified or enhanced to any degree; and
607 (B) if the modification or enhancement described in Subsection (54)(b)(iii)(A) is
608 designed and developed to the specifications of a specific purchaser.
609 (c) Notwithstanding Subsection (54)(b)(iii), "prewritten computer software" does not
610 include a modification or enhancement described in Subsection (54)(b)(iii) if the charges for
611 the modification or enhancement are:
612 (i) reasonable; and
613 (ii) separately stated on the invoice or other statement of price provided to the
614 purchaser.

615 (55) (a) "Prosthetic device" means a device that is:
616 (i) worn on or in the body to:
617 (A) artificially replace a missing portion of the body;
618 (B) prevent or correct a physical deformity or physical malfunction; or
619 (C) support a weak or deformed portion of the body; and
620 (ii) listed as eligible for payment under:
621 (A) Title XVIII of the federal Social Security Act; or
622 (B) the state plan for medical assistance under Title XIX of the federal Social Security
623 Act.
624 (b) "Prosthetic device" includes:
625 (i) parts used in the repairs or renovation of a prosthetic device; or
626 (ii) replacement parts for a prosthetic device.
627 (c) "Prosthetic device" does not include:
628 (i) corrective eyeglasses;
629 (ii) contact lenses;
630 (iii) hearing aids; or
631 (iv) dental prostheses.
632 (56) (a) "Protective equipment" means an item:
633 (i) for human wear; and
634 (ii) that is:
635 (A) designed as protection:
636 (I) to the wearer against injury or disease; or
637 (II) against damage or injury of other persons or property; and
638 (B) not suitable for general use.
639 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
640 commission shall make rules:
641 (i) listing the items that constitute "protective equipment"; and
642 (ii) that are consistent with the list of items that constitute "protective equipment"
643 under the agreement.
644 (57) (a) "Purchase price" and "sales price" mean the total amount of consideration:
645 (i) valued in money; and

646 (ii) for which tangible personal property or services are:
647 (A) sold;
648 (B) leased; or
649 (C) rented.
650 (b) "Purchase price" and "sales price" include:
651 (i) the seller's cost of the tangible personal property or services sold;
652 (ii) expenses of the seller, including:
653 (A) the cost of materials used;
654 (B) a labor cost;
655 (C) a service cost;
656 (D) interest;
657 (E) a loss;
658 (F) the cost of transportation to the seller; or
659 (G) a tax imposed on the seller;
660 (iii) a charge by the seller for any service necessary to complete the sale;
661 (iv) a delivery charge; or
662 (v) an installation charge.
663 (c) "Purchase price" and "sales price" do not include:
664 (i) a discount:
665 (A) in a form including:
666 (I) cash;
667 (II) term; or
668 (III) coupon;
669 (B) that is allowed by a seller;
670 (C) taken by a purchaser on a sale; and
671 (D) that is not reimbursed by a third party; or
672 (ii) the following if separately stated on an invoice, bill of sale, or similar document
673 provided to the purchaser:
674 (A) the amount of a trade-in;
675 (B) the following from credit extended on the sale of tangible personal property or
676 services:

677 (I) interest charges;
678 (II) financing charges; or
679 (III) carrying charges; or
680 (C) a tax or fee legally imposed directly on the consumer.
681 (58) "Purchaser" means a person to whom:
682 (a) a sale of tangible personal property is made; or
683 (b) a service is furnished.
684 (59) "Regularly rented" means:
685 (a) rented to a guest for value three or more times during a calendar year; or
686 (b) advertised or held out to the public as a place that is regularly rented to guests for
687 value.
688 (60) "Renewable energy" means:
689 (a) biomass energy;
690 (b) hydroelectric energy;
691 (c) geothermal energy;
692 (d) solar energy; or
693 (e) wind energy.
694 (61) (a) "Renewable energy production facility" means a facility that:
695 (i) uses renewable energy to produce electricity; and
696 (ii) has a production capacity of 20 kilowatts or greater.
697 (b) A facility is a renewable energy production facility regardless of whether the
698 facility is:
699 (i) connected to an electric grid; or
700 (ii) located on the premises of an electricity consumer.
701 (62) "Rental" is as defined in Subsection (35).
702 (63) "Residential use" means the use in or around a home, apartment building, sleeping
703 quarters, and similar facilities or accommodations.
704 (64) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
705 than:
706 (a) resale;
707 (b) sublease; or

708 (c) subrent.
709 (65) (a) "Retailer" means any person engaged in a regularly organized business in
710 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
711 who is selling to the user or consumer and not for resale.
712 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
713 engaged in the business of selling to users or consumers within the state.
714 (66) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
715 otherwise, in any manner, of tangible personal property or any other taxable transaction under
716 Subsection 59-12-103 (1), for consideration.
717 (b) "Sale" includes:
718 (i) installment and credit sales;
719 (ii) any closed transaction constituting a sale;
720 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
721 chapter;
722 (iv) any transaction if the possession of property is transferred but the seller retains the
723 title as security for the payment of the price; and
724 (v) any transaction under which right to possession, operation, or use of any article of
725 tangible personal property is granted under a lease or contract and the transfer of possession
726 would be taxable if an outright sale were made.
727 (67) "Sale at retail" is as defined in Subsection (64).
728 (68) "Sale-leaseback transaction" means a transaction by which title to tangible
729 personal property that is subject to a tax under this chapter is transferred:
730 (a) by a purchaser-lessee;
731 (b) to a lessor;
732 (c) for consideration; and
733 (d) if:
734 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
735 of the tangible personal property;
736 (ii) the sale of the tangible personal property to the lessor is intended as a form of
737 financing:
738 (A) for the property; and

739 (B) to the purchaser-lessee; and
740 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
741 is required to:
742 (A) capitalize the property for financial reporting purposes; and
743 (B) account for the lease payments as payments made under a financing arrangement.
744 (69) "Sales price" is as defined in Subsection (57).
745 (70) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
746 amounts charged by a school:
747 (i) sales that are directly related to the school's educational functions or activities
748 including:
749 (A) the sale of:
750 (I) textbooks;
751 (II) textbook fees;
752 (III) laboratory fees;
753 (IV) laboratory supplies; or
754 (V) safety equipment;
755 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
756 that:
757 (I) a student is specifically required to wear as a condition of participation in a
758 school-related event or school-related activity; and
759 (II) is not readily adaptable to general or continued usage to the extent that it takes the
760 place of ordinary clothing;
761 (C) sales of the following if the net or gross revenues generated by the sales are
762 deposited into a school district fund or school fund dedicated to school meals:
763 (I) food and food ingredients; or
764 (II) prepared food; or
765 (D) transportation charges for official school activities; or
766 (ii) amounts paid to or amounts charged by a school for admission to a school-related
767 event or school-related activity.
768 (b) "Sales relating to schools" does not include:
769 (i) bookstore sales of items that are not educational materials or supplies;

770 (ii) except as provided in Subsection (70)(a)(i)(B):
771 (A) clothing;
772 (B) clothing accessories or equipment;
773 (C) protective equipment; or
774 (D) sports or recreational equipment; or
775 (iii) amounts paid to or amounts charged by a school for admission to a school-related
776 event or school-related activity if the amounts paid or charged are passed through to a person:
777 (A) other than a:
778 (I) school;
779 (II) nonprofit organization authorized by a school board or a governing body of a
780 private school to organize and direct a competitive secondary school activity; or
781 (III) nonprofit association authorized by a school board or a governing body of a
782 private school to organize and direct a competitive secondary school activity; and
783 (B) that is required to collect sales and use taxes under this chapter.
784 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
785 commission may make rules defining the term "passed through."
786 (71) For purposes of this section and Section 59-12-104 , "school" means:
787 (a) an elementary school or a secondary school that:
788 (i) is a:
789 (A) public school; or
790 (B) private school; and
791 (ii) provides instruction for one or more grades kindergarten through 12; or
792 (b) a public school district.
793 (72) "Seller" means a person that makes a sale, lease, or rental of:
794 (a) tangible personal property; or
795 (b) a service.
796 (73) (a) "Semiconductor fabricating or processing materials" means tangible personal
797 property:
798 (i) used primarily in the process of:
799 (A) (I) manufacturing a semiconductor; or
800 (II) fabricating a semiconductor; or

801 (B) maintaining an environment suitable for a semiconductor; or
802 (ii) consumed primarily in the process of:
803 (A) (I) manufacturing a semiconductor; or
804 (II) fabricating a semiconductor; or
805 (B) maintaining an environment suitable for a semiconductor.
806 (b) "Semiconductor fabricating or processing materials" includes:
807 (i) parts used in the repairs or renovations of tangible personal property described in
808 Subsection (73)(a); or
809 (ii) a chemical, catalyst, or other material used to:
810 (A) produce or induce in a semiconductor a:
811 (I) chemical change; or
812 (II) physical change;
813 (B) remove impurities from a semiconductor; or
814 (C) improve the marketable condition of a semiconductor.
815 (74) "Senior citizen center" means a facility having the primary purpose of providing
816 services to the aged as defined in Section 62A-3-101 .
817 (75) "Simplified electronic return" means the electronic return:
818 (a) described in Section 318(C) of the agreement; and
819 (b) approved by the governing board of the agreement.
820 (76) "Solar energy" means the sun used as the sole source of energy for producing
821 electricity.
822 (77) (a) "Sports or recreational equipment" means an item:
823 (i) designed for human use; and
824 (ii) that is:
825 (A) worn in conjunction with:
826 (I) an athletic activity; or
827 (II) a recreational activity; and
828 (B) not suitable for general use.
829 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
830 commission shall make rules:
831 (i) listing the items that constitute "sports or recreational equipment"; and

832 (ii) that are consistent with the list of items that constitute "sports or recreational
833 equipment" under the agreement.
834 (78) "State" means the state of Utah, its departments, and agencies.
835 (79) "Storage" means any keeping or retention of tangible personal property or any
836 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
837 sale in the regular course of business.
838 (80) (a) "Tangible personal property" means personal property that:
839 (i) may be:
840 (A) seen;
841 (B) weighed;
842 (C) measured;
843 (D) felt; or
844 (E) touched; or
845 (ii) is in any manner perceptible to the senses.
846 (b) "Tangible personal property" includes:
847 (i) electricity;
848 (ii) water;
849 (iii) gas;
850 (iv) steam; or
851 (v) prewritten computer software.
852 (81) (a) "Telephone service" means a two-way transmission:
853 (i) by:
854 (A) wire;
855 (B) radio;
856 (C) lightwave; or
857 (D) other electromagnetic means; and
858 (ii) of one or more of the following:
859 (A) a sign;
860 (B) a signal;
861 (C) writing;
862 (D) an image;

863 (E) sound;
864 (F) a message;
865 (G) data; or
866 (H) other information of any nature.
867 (b) "Telephone service" includes:
868 (i) mobile telecommunications service;
869 (ii) private communications service; or
870 (iii) automated digital telephone answering service.
871 (c) "Telephone service" does not include a service or a transaction that a state or a
872 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
873 Tax Freedom Act, Pub. L. No. 105-277.
874 (82) Notwithstanding where a call is billed or paid, "telephone service address" means:
875 (a) if the location described in this Subsection (82)(a) is known, the location of the
876 telephone service equipment:
877 (i) to which a call is charged; and
878 (ii) from which the call originates or terminates;
879 (b) if the location described in Subsection (82)(a) is not known but the location
880 described in this Subsection (82)(b) is known, the location of the origination point of the signal
881 of the telephone service first identified by:
882 (i) the telecommunications system of the seller; or
883 (ii) if the system used to transport the signal is not that of the seller, information
884 received by the seller from its service provider; or
885 (c) if the locations described in Subsection (82)(a) or (b) are not known, the location of
886 a purchaser's primary place of use.
887 (83) (a) "Telephone service provider" means a person that:
888 (i) owns, controls, operates, or manages a telephone service; and
889 (ii) engages in an activity described in Subsection (83)(a)(i) for the shared use with or
890 resale to any person of the telephone service.
891 (b) A person described in Subsection (83)(a) is a telephone service provider whether or
892 not the Public Service Commission of Utah regulates:
893 (i) that person; or

894 (ii) the telephone service that the person owns, controls, operates, or manages.
895 (84) "Tobacco" means:
896 (a) a cigarette;
897 (b) a cigar;
898 (c) chewing tobacco;
899 (d) pipe tobacco; or
900 (e) any other item that contains tobacco.
901 (85) (a) "Use" means the exercise of any right or power over tangible personal property
902 under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property, item,
903 or service.
904 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
905 the regular course of business and held for resale.
906 (86) (a) Subject to Subsection (86)(b), "vehicle" means the following that are required
907 to be titled, registered, or titled and registered:
908 (i) an aircraft as defined in Section 72-10-102 ;
909 (ii) a vehicle as defined in Section 41-1a-102 ;
910 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
911 (iv) a vessel as defined in Section 41-1a-102 .
912 (b) For purposes of Subsection 59-12-104 (35) only, "vehicle" includes:
913 (i) a vehicle described in Subsection (86)(a); or
914 (ii) (A) a locomotive;
915 (B) a freight car;
916 (C) railroad work equipment; or
917 (D) other railroad rolling stock.
918 (87) "Vehicle dealer" means a person engaged in the business of buying, selling, or
919 exchanging a vehicle as defined in Subsection (86).
920 (88) (a) Except as provided in Subsection (88)(b), "waste energy facility" means a
921 facility that generates electricity:
922 (i) using as the primary source of energy waste materials that would be placed in a
923 landfill or refuse pit if it were not used to generate electricity, including:
924 (A) tires;

925 (B) waste coal; or
926 (C) oil shale; and
927 (ii) in amounts greater than actually required for the operation of the facility.
928 (b) "Waste energy facility" does not include a facility that incinerates:
929 (i) municipal solid waste;
930 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
931 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
932 (89) "Watercraft" means a vessel as defined in Section 73-18-2 .
933 (90) "Wind energy" means wind used as the sole source of energy to produce
934 electricity.
935 (91) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
936 location by the United States Postal Service.
937 Section 4. Section 59-12-207.1 is amended to read:
938 59-12-207.1. Definitions -- Location of certain transactions -- Reports to
939 commission -- Direct payment provision for a seller making certain purchases --
940 Exceptions -- Rulemaking authority.
941 (1) As used in this section:
942 (a) (i) "Receive" and "receipt" mean:
943 (A) taking possession of tangible personal property;
944 (B) making first use of services; or
945 (C) for a digital good, the earlier of:
946 (I) taking possession of tangible personal property; or
947 (II) making first use of services.
948 (ii) "Receive" and "receipt" do not include possession by a shipping company on behalf
949 of a purchaser.
950 (b) "Transportation equipment" means:
951 (i) a locomotive or railcar that is utilized for the carriage of persons or property in
952 interstate commerce;
953 (ii) a truck or truck-tractor with a gross vehicle weight rating of 10,001 pounds or more
954 that is:
955 (A) registered under Section 41-1a-301 ; and

956 (B) operated under the authority of a carrier authorized and certificated:
957 (I) by the United States Department of Transportation or another federal authority; and
958 (II) to engage in the carriage of persons or property in interstate commerce;
959 (iii) a trailer, semitrailer, or passenger bus that is:
960 (A) registered under Section 41-1a-301 ; and
961 (B) operated under the authority of a carrier authorized and certificated:
962 (I) by the United States Department of Transportation or another federal authority; and
963 (II) to engage in the carriage of persons or property in interstate commerce;
964 (iv) an aircraft that is operated by an air carrier authorized and certificated:
965 (A) by the United States Department of Transportation or another federal or foreign
966 authority; and
967 (B) to engage in the carriage of persons or property in interstate commerce; or
968 (v) a container designed for use on, or a component part attached or secured on an item
969 listed in Subsections (1)(b)(i) through (iv).
970 (2) Except as provided in Subsections (8) and (14), if tangible personal property or a
971 service that is subject to taxation under this chapter is received by a purchaser at a business
972 location of a seller, the location of the transaction is the business location of the seller.
973 (3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
974 and (14), if tangible personal property or a service that is subject to taxation under this chapter
975 is not received by a purchaser at a business location of a seller, the location of the transaction is
976 the location where the purchaser takes receipt of the tangible personal property or services.
977 (4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
978 and (14), if Subsection (2) or (3) does not apply, the location of the transaction is the location
979 indicated by an address for or other information on the purchaser if:
980 (a) the address or other information is available from the seller's business records; and
981 (b) use of the address or other information from the seller's records does not constitute
982 bad faith.
983 (5) (a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
984 (11), and (14), if Subsection (2), (3), or (4) does not apply, the location of the transaction is the
985 location indicated by an address for the purchaser if:
986 (i) the address was obtained during the consummation of the transaction; and

987 (ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.
988 (b) An address used under Subsection (5)(a) may include the address of a purchaser's
989 payment instrument if no other address is available.
990 (6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
991 and (14), if Subsection (2), (3), (4), or (5) does not apply or if a seller does not have sufficient
992 information to apply Subsection (2), (3), (4), or (5), the location of the transaction is the
993 location indicated by the address from which:
994 (a) except as provided in Subsection (6)(b), for tangible personal property that is
995 subject to taxation under this chapter, the tangible personal property was shipped;
996 (b) notwithstanding Subsection (6)(a), for computer software delivered electronically
997 or a digital good that is subject to taxation under this chapter, the computer software delivered
998 electronically or digital good was first available for transmission by the seller; or
999 (c) for a service that is subject to taxation under this chapter, the service was provided.
1000 (7) (a) As used in this Subsection (7), "shared ZIP Code" means:
1001 (i) a nine-digit ZIP Code that is located within two or more local taxing jurisdictions;
1002 or
1003 (ii) a five-digit ZIP Code that is located within two or more local taxing jurisdictions if:
1004 (A) a nine-digit ZIP Code is not available for a location; or
1005 (B) after exercising due diligence, a seller is unable to determine a nine-digit ZIP Code
1006 for a location.
1007 (b) Notwithstanding Subsections (3) through (6) and except as provided in Subsection
1008 (7)(d)(ii), if the location of a transaction determined under Subsections (3) through (6) is in a
1009 shared ZIP Code, the location of the transaction is:
1010 (i) if there is only one local taxing jurisdiction that imposes the lowest agreement
1011 combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the lowest
1012 agreement combined tax rate; or
1013 (ii) if two or more local taxing jurisdictions impose the lowest agreement combined tax
1014 rate for the shared ZIP Code, the local taxing jurisdiction that:
1015 (A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and
1016 (B) has located within the local taxing jurisdiction the largest number of street
1017 addresses within the shared ZIP Code.

1018 (c) A seller shall collect a tax imposed under this chapter at the lowest agreement
1019 combined tax rate imposed within the local taxing jurisdiction in which the transaction is
1020 located under Subsection (7)(b) notwithstanding the following:
1021 (i) Section 59-12-204 ;
1022 (ii) Section 59-12-401 ;
1023 (iii) Section 59-12-402 ;
1024 (iv) Section 59-12-501 ;
1025 (v) Section 59-12-501.5 ;
1026 [(v)] (vi) Section 59-12-502 ;
1027 [(vi)] (vii) Section 59-12-703 ;
1028 [(vii)] (viii) Section 59-12-802 ;
1029 [(viii)] (ix) Section 59-12-804 ;
1030 [(ix)] (x) Section 59-12-1001 ;
1031 [(x)] (xi) Section 59-12-1102 ;
1032 [(xi)] (xii) Section 59-12-1302 ;
1033 [(xii)] (xiii) Section 59-12-1402 ; and
1034 [(xiii)] (xiv) Section 59-12-1503 .
1035 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1036 commission may make rules:
1037 (i) providing for the circumstances under which a seller has exercised due diligence in
1038 determining the nine-digit ZIP Code for an address; or
1039 (ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction
1040 within which a transaction is located if a seller is unable to determine the local taxing
1041 jurisdiction within which the transaction is located under Subsection (7)(b).
1042 (8) Notwithstanding Subsections (2) through (6), the location of a transaction made
1043 with a direct payment permit described in Section 59-12-107.1 is:
1044 (a) for a tax imposed under Section 59-12-204 , the location determined under Section
1045 59-12-205 ; or
1046 (b) for a tax imposed under this chapter other than under Section 59-12-204 , the
1047 location at which the tangible personal property or service purchased using the direct payment
1048 permit is used.

1049 (9) Notwithstanding Subsections (3) through (5), the location of a purchase of direct
1050 mail is the location described in Subsection (6), if the purchaser of the direct mail:
1051 (a) has not been issued a direct payment permit under Section 59-12-107.1 ; and
1052 (b) does not provide the seller the form or information described in Subsection
1053 59-12-107.3 (1).
1054 (10) (a) Except as provided in Subsection (10)(b), the location of a transaction
1055 determined under Subsections (3) through (6), (8), and (9), is the local taxing jurisdiction
1056 within which:
1057 (i) the nine-digit ZIP Code assigned to the location determined under Subsections (3)
1058 through (6), (8), and (9) is located; or
1059 (ii) the five-digit ZIP Code assigned to the location determined under Subsections (3)
1060 through (6), (8), and (9) is located if:
1061 (A) a nine-digit ZIP Code is not available for the location determined under
1062 Subsections (3) through (6), (8), and (9); or
1063 (B) after exercising due diligence, a seller is unable to determine a nine-digit ZIP Code
1064 for the location determined under Subsections (3) through (6), (8), and (9).
1065 (b) Notwithstanding Subsection (10)(a), in accordance with Title 63, Chapter 46a, Utah
1066 Administrative Rulemaking Act, the commission may make rules for determining the local
1067 taxing jurisdiction within which a transaction is located if a seller is unable to determine the
1068 local taxing jurisdiction within which the transaction is located under Subsection (10)(a).
1069 (11) (a) As used in this Subsection (11), "florist delivery transaction" means a
1070 transaction commenced by a florist that transmits an order:
1071 (i) by:
1072 (A) telegraph;
1073 (B) telephone; or
1074 (C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
1075 (ii) for delivery to another place:
1076 (A) in this state; or
1077 (B) outside this state.
1078 (b) Notwithstanding Subsections (3) through (6), beginning on July 1, 2004, through
1079 December 31, 2005, the location of a florist delivery transaction is the business location of the

1080 florist that commences the florist delivery transaction.
1081 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1082 commission may by rule:
1083 (i) define the terms:
1084 (A) "business location"; and
1085 (B) "florist";
1086 (ii) define what constitutes a means of communication similar to Subsection
1087 (11)(a)(i)(A) or (B); and
1088 (iii) provide procedures for determining when a transaction is commenced.
1089 (12) If a purchaser knows at the time that the purchaser purchases a service, prewritten
1090 computer software delivered electronically, or a digital good that the service, prewritten
1091 computer software delivered electronically, or digital good will be concurrently available for
1092 use in more than one location, the purchaser shall:
1093 (a) determine the location of the transaction under this section for each location in
1094 which the service, prewritten computer software delivered electronically, or digital good will
1095 be concurrently available for use; and
1096 (b) apportion the purchase price of the service, prewritten computer software delivered
1097 electronically, or digital good:
1098 (i) among each location determined under Subsection (12)(a); and
1099 (ii) in accordance with Section 59-12-107.2 .
1100 (13) (a) A tax collected under this chapter shall be reported to the commission on a
1101 form that identifies the location of each transaction that occurred during the return filing
1102 period.
1103 (b) The form described in Subsection (13)(a) shall be filed with the commission as
1104 required under this chapter.
1105 (14) This section does not apply to:
1106 (a) amounts charged by a seller for:
1107 (i) telephone service;
1108 (ii) the retail sale or transfer of:
1109 (A) a motor vehicle other than a motor vehicle that is transportation equipment;
1110 (B) an aircraft other than an aircraft that is transportation equipment;

1111 (C) a watercraft;
1112 (D) a modular home;
1113 (E) a manufactured home; or
1114 (F) a mobile home; or
1115 (iii) except as provided in Section 59-12-207.3 , the lease or rental of tangible personal
1116 property other than tangible personal property that is transportation equipment; or
1117 (b) a tax paid under this chapter:
1118 (i) by a seller; and
1119 (ii) for the seller's purchases.
1120 Section 5. Section 59-12-501.5 is enacted to read:
1121 59-12-501.5. Countywide public transit tax -- Base -- Rate -- Voter Approval.
1122 (1) As used in this section, "public transit district" means a public transit district
1123 organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, that has more
1124 than 200,000 people residing within the district boundaries.
1125 (2) (a) Subject to the other provisions of this part, if a single public transit district has
1126 60% or more of the population of a county residing within the public transit district boundaries,
1127 beginning on or after July 1, 2005, the county legislative body may impose a sales and use tax
1128 of .25%:
1129 (i) except as provided in Subsections (2)(b) and 59-12-207.1 (7)(c), on the transactions:
1130 (A) described in Subsection 59-12-103 (1);
1131 (B) within the county, including the cities and towns within the county;
1132 (ii) for the purpose of funding public transportation system operations, costs, and
1133 improvements.
1134 (b) Notwithstanding Subsection (2)(a)(i), a county legislative body may not impose a
1135 tax under this section on the sales and uses described in Section 59-12-104 to the extent the
1136 sales and uses are exempt from taxation under Section 59-12-104 .
1137 (c) For purposes of this Subsection (2), the location of a transaction shall be
1138 determined in accordance with Sections 59-12-207.1 through 59-12-207.4 .
1139 (d) (i) Population figures for purposes of this section shall be based on the most recent
1140 official census or census estimate of the United States Census Bureau.
1141 (ii) If a needed population estimate is not available from the United States Census

1142 Bureau, population figures shall be derived from the estimate from the Utah Population
1143 Estimates Committee created by executive order of the governor.
1144 (3) (a) Before imposing a tax under this section, a county legislative body shall:
1145 (i) adopt a resolution to impose a tax under this section; and
1146 (ii) submit an opinion question to the county's registered voters voting on the
1147 imposition of the tax so that each registered voter has the opportunity to express the registered
1148 voter's opinion on whether a tax should be imposed under this section.
1149 (b) The election required by this Subsection (3) shall be held:
1150 (i) (A) at a regular general election; and
1151 (B) in accordance with the procedures and requirements of Title 20A, Election Code,
1152 governing regular general elections; or
1153 (ii) (A) at a special election called by the county legislative body;
1154 (B) only on the date of a municipal general election provided in Subsection
1155 20A-1-202 (1); and
1156 (C) in accordance with the procedures and requirements of Title 20A, Election Code,
1157 for holding municipal general elections.
1158 (c) The ballot question for the opinion question submitted under Subsection (3)(a) shall
1159 read:
1160 "Shall the county be a part of a public transit district?
1161 If a majority of the county's registered voters voting in the election approve becoming a
1162 part of a public transit district, the county shall be annexed into the public transit district and a
1163 sales and use tax of .25% shall be imposed countywide to fund public transportation
1164 operations, costs, and improvements of the transit district. The .25% sales and use tax shall
1165 supersede the existing sales and use taxes imposed by the county or a city or town within the
1166 county that are used to fund public transportation."
1167 (4) If the majority of the county's registered voters voting in the election on the
1168 proposal under Subsection (3), vote in favor of the proposal described in Subsection (3):
1169 (a) the county shall be annexed into the public transit district;
1170 (b) the county legislative body shall provide notice to the commission of the imposition
1171 of a tax under this section within 30 days after the canvass of the election described in
1172 Subsection (3);

1173 (c) the tax under this section shall take effect on the first day of the calendar quarter
1174 after the 90-day period described in Subsection 59-12-504 (2);
1175 (d) subject to Subsections (4)(e) and (f), if a city or town located within the county
1176 imposes a tax under Section 59-12-501 or the county imposes a tax under Section 59-12-501
1177 the tax shall be repealed:
1178 (i) on the day on which a tax under this section takes effect in accordance with
1179 Subsection (4)(c); and
1180 (ii) in accordance with Section 59-12-504 ;
1181 (e) (i) if, on the day on which a tax under this section takes effect as provided in
1182 Subsection (4)(c), any revenues generated by a tax imposed by a city or town under Section
1183 59-12-501 are used as a source of repayment for debt service on any bonded indebtedness or
1184 other obligations:
1185 (A) the county legislative body shall distribute to the city or town an amount of
1186 revenues generated by a tax under this section equal to the amount necessary to pay the debt
1187 service on the bonded indebtedness or other obligations; and
1188 (B) the city or town shall expend the amount described in Subsection (4)(e)(i)(A) to
1189 repay the bonded indebtedness;
1190 (ii) the city or town may through an interlocal agreement, authorize the distribution
1191 directly to the public transit district or other entity to pay the debt or other obligation;
1192 (f) if, on the day on which a tax under this section takes effect as provided in
1193 Subsection (4)(c), any revenues generated by a tax imposed by a county under Section
1194 59-12-501 are used as a source of repayment for debt service on any bonded indebtedness or
1195 other obligations, the county legislative body shall use the revenues generated by a tax under
1196 this section to repay the bonded indebtedness; and
1197 (g) if a county has adopted a resolution under Subsection (3)(a), a transit district may
1198 not incur any new debt or obligation using revenue under Section 59-12-501 for a county that
1199 has expressed its intent to hold an election under this section until after the election results
1200 have been certified.
1201 (5) If a county legislative body imposes a tax under this section and a majority of the
1202 county's registered voters voting in an election under Subsection (3) vote in favor of the
1203 imposition of a tax under this section, beginning on the date the tax under this section is

1204 imposed:
1205 (a) the county legislative body may not impose a sales and use tax under Section
1206 59-12-501 ; and
1207 (b) a city or town within the county may not impose a sales and use tax under Section
1208 59-12-501 .
1209 Section 6. Section 59-12-503 is amended to read:
1210 59-12-503. Public transit taxes -- Local option direct transfer.
1211 A county or municipality may elect, in writing, to have the portion of the monthly funds
1212 transfer that is collected as a public transit sales and use tax under Sections 59-12-501 [and],
1213 59-12-501.5 , and 59-12-502 to be transferred directly to a designated public transit district,
1214 subject to the same charge as described under Section 59-12-206 .
1215 Section 7. Section 59-12-504 is amended to read:
1216 59-12-504. Enactment or repeal of tax -- Effective date -- Notice requirements --
1217 Administration, collection, and enforcement of tax.
1218 (1) For purposes of this section:
1219 (a) "Annexation" means an annexation to:
1220 (i) a county under Title 17, Chapter 2, Annexation to County; or
1221 (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
1222 (b) "Annexing area" means an area that is annexed into a county, city, or town.
1223 (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
1224 county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
1225 effect:
1226 (i) on the first day of a calendar quarter; and
1227 (ii) after a 90-day period beginning on the date the commission receives notice meeting
1228 the requirements of Subsection (2)(b) from the county, city, or town.
1229 (b) The notice described in Subsection (2)(a)(ii) shall state:
1230 (i) that the county, city, or town will enact or repeal a tax under this part;
1231 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
1232 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
1233 (iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate
1234 of the tax.

1235 (c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
1236 (2)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
1237 (A) that begins after the effective date of the enactment of the tax; and
1238 (B) if the billing period for the transaction begins before the effective date of the
1239 enactment of the tax under:
1240 (I) Section 59-12-501 ; [or]
1241 (II) Section 59-12-501.5 ; or
1242 [(II)] (III) Section 59-12-502 .
1243 (ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
1244 (2)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
1245 (A) that began before the effective date of the repeal of the tax; and
1246 (B) if the billing period for the transaction begins before the effective date of the repeal
1247 of the tax imposed under:
1248 (I) Section 59-12-501 ; [or]
1249 (II) Section 59-12-501.5 ; or
1250 [(II)] (III) Section 59-12-502 .
1251 (iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
1252 (A) Subsection 59-12-103 (1)(b);
1253 (B) Subsection 59-12-103 (1)(c);
1254 (C) Subsection 59-12-103 (1)(d);
1255 (D) Subsection 59-12-103 (1)(e);
1256 (E) Subsection 59-12-103 (1)(f);
1257 (F) Subsection 59-12-103 (1)(g);
1258 (G) Subsection 59-12-103 (1)(h);
1259 (H) Subsection 59-12-103 (1)(i);
1260 (I) Subsection 59-12-103 (1)(j); or
1261 (J) Subsection 59-12-103 (1)(k).
1262 (d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
1263 sale is computed on the basis of sales and use tax rates published in the catalogue, an
1264 enactment or repeal of a tax described in Subsection (2)(a) takes effect:
1265 (A) on the first day of a calendar quarter; and

1266 (B) beginning 60 days after the effective date of the enactment or repeal under
1267 Subsection (2)(a).
1268 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1269 the commission may by rule define the term "catalogue sale."
1270 (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
1271 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1272 part for an annexing area, the enactment or repeal shall take effect:
1273 (i) on the first day of a calendar quarter; and
1274 (ii) after a 90-day period beginning on the date the commission receives notice meeting
1275 the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
1276 area.
1277 (b) The notice described in Subsection (3)(a)(ii) shall state:
1278 (i) that the annexation described in Subsection (3)(a) will result in an enactment or
1279 repeal of a tax under this part for the annexing area;
1280 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
1281 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
1282 (iv) the rate of the tax described in Subsection (3)(b)(i).
1283 (c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
1284 (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
1285 (A) that begins after the effective date of the enactment of the tax; and
1286 (B) if the billing period for the transaction begins before the effective date of the
1287 enactment of the tax under:
1288 (I) Section 59-12-501 ; [or]
1289 (II) Section 59-12-501.5 ; or
1290 [(II)] (III) Section 59-12-502 .
1291 (ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
1292 (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
1293 (A) that began before the effective date of the repeal of the tax; and
1294 (B) if the billing period for the transaction begins before the effective date of the repeal
1295 of the tax imposed under:
1296 (I) Section 59-12-501 ; [or]

1297 (II) Section 59-12-501.5 ; or
1298 [(II)] (III) Section 59-12-502 .
1299 (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
1300 (A) Subsection 59-12-103 (1)(b);
1301 (B) Subsection 59-12-103 (1)(c);
1302 (C) Subsection 59-12-103 (1)(d);
1303 (D) Subsection 59-12-103 (1)(e);
1304 (E) Subsection 59-12-103 (1)(f);
1305 (F) Subsection 59-12-103 (1)(g);
1306 (G) Subsection 59-12-103 (1)(h);
1307 (H) Subsection 59-12-103 (1)(i);
1308 (I) Subsection 59-12-103 (1)(j); or
1309 (J) Subsection 59-12-103 (1)(k).
1310 (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
1311 sale is computed on the basis of sales and use tax rates published in the catalogue, an
1312 enactment or repeal of a tax described in Subsection (3)(a) takes effect:
1313 (A) on the first day of a calendar quarter; and
1314 (B) beginning 60 days after the effective date of the enactment or repeal under
1315 Subsection (3)(a).
1316 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1317 the commission may by rule define the term "catalogue sale."
1318 (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
1319 administered, collected, and enforced in accordance with:
1320 (i) the same procedures used to administer, collect, and enforce the tax under:
1321 (A) Part 1, Tax Collection; or
1322 (B) Part 2, Local Sales and Use Tax Act; and
1323 (ii) Chapter 1, General Taxation Policies.
1324 (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
1325 Subsections 59-12-205 (2) through (9).
1326 (c) (i) The commission may retain an amount of tax collected under this part of not to
1327 exceed the lesser of:

1328 (A) 1.5%; or
1329 (B) an amount equal to the cost to the commission of administering this part.
1330 (ii) Any amount the commission retains under Subsection (4)(c)(i) shall be:
1331 (A) placed in the Sales and Use Tax Administrative Fees Account; and
1332 (B) used as provided in Subsection 59-12-206 (2).
1333 Section 8. Section 59-12-1001 is amended to read:
1334 59-12-1001. Authority to impose tax for highways or to fund a system for public
1335 transit -- Ordinance requirements -- Voter approval requirements -- Election
1336 requirements -- Notice of election requirements -- Exceptions to voter approval
1337 requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.
1338 (1) (a) Except as provided in Subsections (1)(b) and 59-12-207.1 (7)(c), a city or town
1339 in which the transactions described in Subsection 59-12-103 (1) are not subject to a sales and
1340 use tax under Section 59-12-501 or 59-12-501.5 may as provided in this part impose a sales
1341 and use tax of .25% on the transactions described in Subsection 59-12-103 (1) located within
1342 the city or town.
1343 (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
1344 section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
1345 exempt from taxation under Section 59-12-104 .
1346 (c) For purposes of this Subsection (1), the location of a transaction shall be
1347 determined in accordance with Sections 59-12-207.1 through 59-12-207.4 .
1348 (2) (a) A city or town imposing a tax under this part may use the revenues generated by
1349 the tax:
1350 (i) for the construction and maintenance of highways under the jurisdiction of the city
1351 or town imposing the tax;
1352 (ii) subject to Subsection (2)(b), to fund a system for public transit; or
1353 (iii) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).
1354 (b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection
1355 (2)(b)(ii), "public transit" is as defined in Section 17A-2-1004 .
1356 (ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed
1357 guideway system.
1358 (3) To impose a tax under this part, the governing body of the city or town shall:

1359 (a) pass an ordinance approving the tax; and
1360 (b) except as provided in Subsection (7), obtain voter approval for the tax as provided
1361 in Subsection (4).
1362 (4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:
1363 (a) hold an election during:
1364 (i) a regular general election; or
1365 (ii) a municipal general election; and
1366 (b) publish notice of the election:
1367 (i) 15 days or more before the day on which the election is held; and
1368 (ii) in a newspaper of general circulation in the city or town.
1369 (5) An ordinance approving a tax under this part shall provide an effective date for the
1370 tax as provided in Subsection (6).
1371 (6) (a) For purposes of this Subsection (6):
1372 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
1373 4, Annexation.
1374 (ii) "Annexing area" means an area that is annexed into a city or town.
1375 (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a city
1376 or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
1377 (A) on the first day of a calendar quarter; and
1378 (B) after a 90-day period beginning on the date the commission receives notice meeting
1379 the requirements of Subsection (6)(b)(ii) from the city or town.
1380 (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
1381 (A) that the city or town will enact or repeal a tax under this part;
1382 (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
1383 (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
1384 (D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of
1385 the tax.
1386 (c) (i) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
1387 (6)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
1388 (A) that begins after the effective date of the enactment of the tax; and
1389 (B) if the billing period for the transaction begins before the effective date of the

1390 enactment of the tax under Subsection (1).
1391 (ii) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
1392 (6)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
1393 (A) that began before the effective date of the repeal of the tax; and
1394 (B) if the billing period for the transaction begins before the effective date of the repeal
1395 of the tax imposed under Subsection (1).
1396 (iii) Subsections (6)(c)(i) and (ii) apply to transactions subject to a tax under:
1397 (A) Subsection 59-12-103 (1)(b);
1398 (B) Subsection 59-12-103 (1)(c);
1399 (C) Subsection 59-12-103 (1)(d);
1400 (D) Subsection 59-12-103 (1)(e);
1401 (E) Subsection 59-12-103 (1)(f);
1402 (F) Subsection 59-12-103 (1)(g);
1403 (G) Subsection 59-12-103 (1)(h);
1404 (H) Subsection 59-12-103 (1)(i);
1405 (I) Subsection 59-12-103 (1)(j); or
1406 (J) Subsection 59-12-103 (1)(k).
1407 (d) (i) Notwithstanding Subsection (6)(b)(i), if a tax due under this chapter on a
1408 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
1409 enactment or repeal of a tax described in Subsection (6)(b)(i) takes effect:
1410 (A) on the first day of a calendar quarter; and
1411 (B) beginning 60 days after the effective date of the enactment or repeal under
1412 Subsection (6)(b)(i).
1413 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1414 the commission may by rule define the term "catalogue sale."
1415 (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
1416 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1417 part for an annexing area, the enactment or repeal shall take effect:
1418 (A) on the first day of a calendar quarter; and
1419 (B) after a 90-day period beginning on the date the commission receives notice meeting
1420 the requirements of Subsection (6)(e)(ii) from the city or town that annexes the annexing area.

1421 (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
1422 (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
1423 repeal of a tax under this part for the annexing area;
1424 (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
1425 (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
1426 (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
1427 (f) (i) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
1428 (6)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
1429 (A) that begins after the effective date of the enactment of the tax; and
1430 (B) if the billing period for the transaction begins before the effective date of the
1431 enactment of the tax under Subsection (1).
1432 (ii) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
1433 (6)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
1434 (A) that began before the effective date of the repeal of the tax; and
1435 (B) if the billing period for the transaction begins before the effective date of the repeal
1436 of the tax imposed under Subsection (1).
1437 (iii) Subsections (6)(f)(i) and (ii) apply to transactions subject to a tax under:
1438 (A) Subsection 59-12-103 (1)(b);
1439 (B) Subsection 59-12-103 (1)(c);
1440 (C) Subsection 59-12-103 (1)(d);
1441 (D) Subsection 59-12-103 (1)(e);
1442 (E) Subsection 59-12-103 (1)(f);
1443 (F) Subsection 59-12-103 (1)(g);
1444 (G) Subsection 59-12-103 (1)(h);
1445 (H) Subsection 59-12-103 (1)(i);
1446 (I) Subsection 59-12-103 (1)(j); or
1447 (J) Subsection 59-12-103 (1)(k).
1448 (g) (i) Notwithstanding Subsection (6)(e)(i), if a tax due under this chapter on a
1449 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
1450 enactment or repeal of a tax described in Subsection (6)(e)(i) takes effect:
1451 (A) on the first day of a calendar quarter; and

1452 (B) beginning 60 days after the effective date of the enactment or repeal under
1453 Subsection (6)(e)(i).
1454 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1455 the commission may by rule define the term "catalogue sale."
1456 (7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the
1457 voter approval requirements of Subsection (3)(b) if:
1458 (i) on or before January 1, 1996, the city or town imposed a license fee or tax on
1459 businesses based on gross receipts pursuant to Section 10-1-203 ; or
1460 (ii) the city or town:
1461 (A) on or before June 30, 2002, obtained voter approval in accordance with Subsection
1462 (3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and
1463 (B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a
1464 purpose described in Subsection (2)(a).
1465 (b) Notwithstanding Subsection (7)(a), the exception from the voter approval
1466 requirements in Subsection (7)(a)(i) does not apply to a city or town that, on or before January
1467 1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts
1468 pursuant to Section 10-1-203 .
1469 Section 9. Effective date.
1470 This bill takes effect on July 1, 2005.
1471 Section 10. Coordinating H.B. 107 with S.B. 183.
1472 If this H.B. 107 and S.B. 183, Public Transit District Annexation and Funding
1473 Amendments, both pass, including any subsequent amendment or substitute to S.B. 183, it is
1474 the intent of the Legislature that the Office of Legislative Research and General Counsel in
1475 preparing the Utah Code database for publication provide that:
1476 (1) the amendments to Section 59-12-207.1 made by S.B. 183 take effect on July 1,
1477 2006;
1478 (2) (a) the enactment of Section 59-12-501.5 made by S.B. 183 takes effect on July 1,
1479 2006; and
1480 (b) beginning on July 1, 2005, through June 30, 2006, Section 59-12-501.5 shall read
1481 as follows:
1482 " 59-12-501.5. Countywide public transit tax -- Base -- Rate -- Voter Approval.

1483 (1) As used in this section, "public transit district" means a public transit district
1484 organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, that has more
1485 than 200,000 people residing within the district boundaries.
1486 (2) (a) Subject to the other provisions of this part, if a single public transit district has
1487 60% or more of the population of a county residing within the public transit district boundaries,
1488 beginning on or after July 1, 2005, the county legislative body may impose a sales and use tax
1489 of .25%:
1490 (i) except as provided in Subsection (2)(b), on the transactions:
1491 (A) described in Subsection 59-12-103 (1);
1492 (B) within the county, including the cities and towns within the county;
1493 (ii) for the purpose of funding public transportation system operations, costs, and
1494 improvements.
1495 (b) Notwithstanding Subsection (2)(a)(i), a county legislative body may not impose a
1496 tax under this section on:
1497 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1498 are exempt from taxation under Section 59-12-104 ; and
1499 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
1500 59-12-107 (1)(b).
1501 (c) (i) Population figures for purposes of this section shall be based on the most recent
1502 official census or census estimate of the United States Census Bureau.
1503 (ii) If a needed population estimate is not available from the United States Census
1504 Bureau, population figures shall be derived from the estimate from the Utah Population
1505 Estimates Committee created by executive order of the governor.
1506 (3) (a) Before imposing a tax under this section, a county legislative body shall:
1507 (i) adopt a resolution to impose a tax under this section; and
1508 (ii) submit an opinion question to the county's registered voters voting on the
1509 imposition of the tax so that each registered voter has the opportunity to express the registered
1510 voter's opinion on whether a tax should be imposed under this section.
1511 (b) The election required by this Subsection (3) shall be held:
1512 (i) (A) at a regular general election; and
1513 (B) in accordance with the procedures and requirements of Title 20A, Election Code,

1514 governing regular general elections; or
1515 (ii) (A) at a special election called by the county legislative body;
1516 (B) only on the date of a municipal general election provided in Subsection
1517 20A-1-202 (1); and
1518 (C) in accordance with the procedures and requirements of Title 20A, Election Code,
1519 for holding municipal general elections.
1520 (c) The ballot question for the opinion question submitted under Subsection (3)(a) shall
1521 read:
1522 "Shall the county be a part of a public transit district?
1523 If a majority of the county's registered voters voting in the election approve becoming a
1524 part of a public transit district, the county shall be annexed into the public transit district and a
1525 sales and use tax of .25% shall be imposed countywide to fund public transportation
1526 operations, costs, and improvements of the transit district. The .25% sales and use tax shall
1527 supersede the existing sales and use taxes imposed by the county or a city or town within the
1528 county that are used to fund public transportation."
1529 (4) If the majority of the county's registered voters voting in the election on the
1530 proposal under Subsection (3), vote in favor of the proposal described in Subsection (3):
1531 (a) the county shall be annexed into the public transit district;
1532 (b) the county legislative body shall provide notice to the commission of the imposition
1533 of a tax under this section within 30 days after the canvass of the election described in
1534 Subsection (3);
1535 (c) the tax under this section shall take effect on the first day of the calendar quarter
1536 after the 90-day period described in Subsection 59-12-504 (2);
1537 (d) subject to Subsections (4)(e) and (f), if a city or town located within the county
1538 imposes a tax under Section 59-12-501 or the county imposes a tax under Section 59-12-501
1539 the tax shall be repealed:
1540 (i) on the day on which a tax under this section takes effect in accordance with
1541 Subsection (4)(c); and
1542 (ii) in accordance with Section 59-12-504 ;
1543 (e) (i) if, on the day on which a tax under this section takes effect as provided in
1544 Subsection (4)(c), any revenues generated by a tax imposed by a city or town under Section

1545 59-12-501 are used as a source of repayment for debt service on any bonded indebtedness or
1546 other obligations:
1547 (A) the county legislative body shall distribute to the city or town an amount of
1548 revenues generated by a tax under this section equal to the amount necessary to pay the debt
1549 service on the bonded indebtedness or other obligations; and
1550 (B) the city or town shall expend the amount described in Subsection (4)(e)(i)(A) to
1551 repay the bonded indebtedness;
1552 (ii) the city or town may through an interlocal agreement, authorize the distribution
1553 directly to the public transit district or other entity to pay the debt or other obligation;
1554 (f) if, on the day on which a tax under this section takes effect as provided in
1555 Subsection (4)(c), any revenues generated by a tax imposed by a county under Section
1556 59-12-501 are used as a source of repayment for debt service on any bonded indebtedness or
1557 other obligations, the county legislative body shall use the revenues generated by a tax under
1558 this section to repay the bonded indebtedness; and
1559 (g) if a county has adopted a resolution under Subsection (3)(a), a transit district may
1560 not incur any new debt or obligation using revenue under Section 59-12-501 for a county that
1561 has expressed its intent to hold an election under this section until after the election results
1562 have been certified.
1563 (5) If a county legislative body imposes a tax under this section and a majority of the
1564 county's registered voters voting in an election under Subsection (3) vote in favor of the
1565 imposition of a tax under this section, beginning on the date the tax under this section is
1566 imposed:
1567 (a) the county legislative body may not impose a sales and use tax under Section
1568 59-12-501 ; and
1569 (b) a city or town within the county may not impose a sales and use tax under Section
1570 59-12-501 ."