H.B. 109 Enrolled

1

SALES AND USE TAX - FOOD AND FOOD INGREDIENTS
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Merlynn T. Newbold
5 Senate Sponsor: Michael G. Waddoups
6 Cosponsors:
7 Greg J. Curtis
8 Brad L. Dee
9 Craig A. Frank
10 Neil A. HansenWayne A. Harper
Kory M. Holdaway
Gregory H. Hughes
Patrick PainterAaron Tilton
Stephen H. Urquhart
Mark W. Walker
Peggy Wallace 11
12 LONG TITLE
13 General Description:
14 This bill amends the Sales and Use Tax Act relating to food and food ingredients.
15 Highlighted Provisions:
16 This bill:
17 . defines terms;
18 . reduces the state sales and use tax rate imposed on food and food ingredients under
19 certain circumstances;
20 . addresses the state sales and use tax rate imposed:
21 . on a bundled transaction involving food and food ingredients; or
22 . if a seller sells food and food ingredients and prepared food at the same
23 location;
24 . addresses the amount that a business location that collects and remits sales and use
25 taxes monthly may retain as a seller discount; and
26 . makes technical changes.
27 Monies Appropriated in this Bill:
28 This bill appropriates:
29 . $6,000,000 from the General Fund for fiscal year 2006-07 only to the State Tax
30 Commission for distribution to certain sellers to reimburse some of their costs in

31 complying with the reduced sales and use tax rate imposed on food and food ingredients.
32 Other Special Clauses:
33 This bill takes effect on January 1, 2007.
34 Utah Code Sections Affected:
35 AMENDS:
36 11-41-102, as enacted by Chapter 283, Laws of Utah 2004
37 59-12-102, as last amended by Chapters 158 and 246, Laws of Utah 2005
38 59-12-103 (Effective 07/01/06), as last amended by Chapter 1, Laws of Utah 2005,
39 First Special Session
40 59-12-108, as last amended by Chapter 255, Laws of Utah 2004
41
42 Be it enacted by the Legislature of the state of Utah:
43 Section 1. Section 11-41-102 is amended to read:
44 11-41-102. Definitions.
45 As used in this chapter:
46 (1) "Agreement" means an oral or written agreement between a:
47 (a) (i) county; or
48 (ii) municipality; and
49 (b) person.
50 (2) "Municipality" means a:
51 (a) city; or
52 (b) town.
53 (3) "Payment" includes:
54 (a) a payment;
55 (b) a rebate;
56 (c) a refund; or
57 (d) an amount similar to Subsections (3)(a) through (c).
58 (4) "Regional retail business" means a:

59 (a) retail business that occupies a floor area of more than 80,000 square feet;
60 (b) dealer as defined in Section 41-1a-102 ;
61 (c) retail shopping facility that has at least two anchor tenants if the total number of
62 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
63 feet; or
64 (d) grocery store that occupies a floor area of more than 30,000 square feet.
65 (5) (a) "Sales and use tax" means a tax:
66 (i) imposed on transactions within a:
67 (A) county; or
68 (B) municipality; and
69 (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
70 Sales and Use Tax Act.
71 (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
72 authorized under:
73 (i) Subsection 59-12-103 (2)(a)(i);
74 (ii) Subsection 59-12-103 (2)(b)(i)(A);
75 (iii) Subsection 59-12-103 (2)(b)(ii)(A);
76 [(iii)] (iv) Section 59-12-301 ;
77 [(iv)] (v) Section 59-12-352 ;
78 [(v)] (vi) Section 59-12-353 ;
79 [(vi)] (vii) Section 59-12-603 ; or
80 [(vii)] (viii) Section 59-12-1201 .
81 (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
82 (i) to a person;
83 (ii) by a:
84 (A) county; or
85 (B) municipality;
86 (iii) to induce the person to locate or relocate a regional retail business within the:

87 (A) county; or
88 (B) municipality; and
89 (iv) that are derived from a sales and use tax.
90 (b) "Sales and use tax incentive payment" does not include funding for public
91 infrastructure.
92 Section 2. Section 59-12-102 is amended to read:
93 59-12-102. Definitions.
94 As used in this chapter:
95 (1) (a) "Admission or user fees" includes season passes.
96 (b) "Admission or user fees" does not include annual membership dues to private
97 organizations.
98 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
99 Section 59-12-102.1 .
100 (3) "Agreement combined tax rate" means the sum of the tax rates:
101 (a) listed under Subsection (4); and
102 (b) that are imposed within a local taxing jurisdiction.
103 (4) "Agreement sales and use tax" means a tax imposed under:
104 (a) Subsection 59-12-103 (2)(a)(i) or (2)(b)(ii)(A);
105 (b) Section 59-12-204 ;
106 (c) Section 59-12-401 ;
107 (d) Section 59-12-402 ;
108 (e) Section 59-12-501 ;
109 (f) Section 59-12-502 ;
110 (g) Section 59-12-703 ;
111 (h) Section 59-12-802 ;
112 (i) Section 59-12-804 ;
113 (j) Section 59-12-1001 ;
114 (k) Section 59-12-1102 ;

115 (l) Section 59-12-1302 ;
116 (m) Section 59-12-1402 ; or
117 (n) Section 59-12-1503 .
118 (5) "Aircraft" is as defined in Section 72-10-102 .
119 (6) "Alcoholic beverage" means a beverage that:
120 (a) is suitable for human consumption; and
121 (b) contains .5% or more alcohol by volume.
122 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
123 (8) "Authorized carrier" means:
124 (a) in the case of vehicles operated over public highways, the holder of credentials
125 indicating that the vehicle is or will be operated pursuant to both the International Registration
126 Plan and the International Fuel Tax Agreement;
127 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
128 certificate or air carrier's operating certificate; or
129 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
130 stock, the holder of a certificate issued by the United States Surface Transportation Board.
131 (9) (a) Except as provided in Subsection (9)(b), "biomass energy" means any of the
132 following that is used as the primary source of energy to produce fuel or electricity:
133 (i) material from a plant or tree; or
134 (ii) other organic matter that is available on a renewable basis, including:
135 (A) slash and brush from forests and woodlands;
136 (B) animal waste;
137 (C) methane produced:
138 (I) at landfills; or
139 (II) as a byproduct of the treatment of wastewater residuals;
140 (D) aquatic plants; and
141 (E) agricultural products.
142 (b) "Biomass energy" does not include:

143 (i) black liquor;
144 (ii) treated woods; or
145 (iii) biomass from municipal solid waste other than methane produced:
146 (A) at landfills; or
147 (B) as a byproduct of the treatment of wastewater residuals.
148 (10) (a) "Bundled transaction" means the sale of two or more items of tangible personal
149 property if:
150 (i) one or more of the items of tangible personal property is food and food ingredients;
151 and
152 (ii) the items of tangible personal property are:
153 (A) distinct and identifiable;
154 (B) sold for one price that is not itemized; and
155 (C) not prepared food.
156 (b) "Bundled transaction" does not include the sale of tangible personal property if the
157 sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
158 tangible personal property included in the transaction.
159 (c) For purposes of Subsection (10)(a)(ii)(A), tangible personal property that is distinct
160 and identifiable does not include:
161 (i) packaging that:
162 (A) accompanies the sale of the tangible personal property; and
163 (B) is incidental or immaterial to the sale of the tangible personal property;
164 (ii) tangible personal property provided free of charge with the purchase of another
165 item of tangible personal property; or
166 (iii) an item of tangible personal property included in the definition of "purchase
167 price."
168 (d) For purposes of Subsection (10)(c)(ii), an item of tangible personal property is
169 provided free of charge with the purchase of another item of tangible personal property if the
170 sales price of the purchased item of tangible personal property does not vary depending on the

171 inclusion of the tangible personal property provided free of charge.
172 [(10)] (11) "Certified automated system" means software certified by the governing
173 board of the agreement in accordance with Section 59-12-102.1 that:
174 (a) calculates the agreement sales and use tax imposed within a local taxing
175 jurisdiction:
176 (i) on a transaction; and
177 (ii) in the states that are members of the agreement;
178 (b) determines the amount of agreement sales and use tax to remit to a state that is a
179 member of the agreement; and
180 (c) maintains a record of the transaction described in Subsection [(10)] (11)(a)(i).
181 [(11)] (12) "Certified service provider" means an agent certified:
182 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
183 and
184 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
185 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
186 own purchases.
187 [(12)] (13) (a) Subject to Subsection [(12)] (13)(b), "clothing" means all human
188 wearing apparel suitable for general use.
189 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
190 commission shall make rules:
191 (i) listing the items that constitute "clothing"; and
192 (ii) that are consistent with the list of items that constitute "clothing" under the
193 agreement.
194 [(13)] (14) (a) For purposes of Subsection 59-12-104 (42), "coin-operated amusement
195 device" means:
196 (i) a coin-operated amusement, skill, or ride device;
197 (ii) that is not controlled through seller-assisted, over-the-counter, sales of tokens; and
198 (iii) includes a music machine, pinball machine, billiard machine, video game machine,

199 arcade machine, and a mechanical or electronic skill game or ride.
200 (b) For purposes of Subsection 59-12-104 (42), "coin-operated amusement device" does
201 not mean a coin-operated amusement device possessing a coinage mechanism that:
202 (i) accepts and registers multiple denominations of coins; and
203 (ii) allows the seller to collect the sales and use tax at the time an amusement device is
204 activated and operated by a person inserting coins into the device.
205 [(14)] (15) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
206 other fuels that does not constitute industrial use under Subsection [(34)] (35) or residential use
207 under Subsection [(68)] (69).
208 [(15)] (16) (a) "Common carrier" means a person engaged in or transacting the
209 business of transporting passengers, freight, merchandise, or other property for hire within this
210 state.
211 (b) (i) "Common carrier" does not include a person who, at the time the person is
212 traveling to or from that person's place of employment, transports a passenger to or from the
213 passenger's place of employment.
214 (ii) For purposes of Subsection [(15)] (16)(b)(i), in accordance with Title 63, Chapter
215 46a, Utah Administrative Rulemaking Act, the commission may make rules defining what
216 constitutes a person's place of employment.
217 [(16)] (17) "Component part" includes:
218 (a) poultry, dairy, and other livestock feed, and their components;
219 (b) baling ties and twine used in the baling of hay and straw;
220 (c) fuel used for providing temperature control of orchards and commercial
221 greenhouses doing a majority of their business in wholesale sales, and for providing power for
222 off-highway type farm machinery; and
223 (d) feed, seeds, and seedlings.
224 [(17)] (18) "Computer" means an electronic device that accepts information:
225 (a) (i) in digital form; or
226 (ii) in a form similar to digital form; and

227 (b) manipulates that information for a result based on a sequence of instructions.
228 [(18)] (19) "Computer software" means a set of coded instructions designed to cause:
229 (a) a computer to perform a task; or
230 (b) automatic data processing equipment to perform a task.
231 [(19)] (20) "Construction materials" means any tangible personal property that will be
232 converted into real property.
233 [(20)] (21) "Delivered electronically" means delivered to a purchaser by means other
234 than tangible storage media.
235 [(21)] (22) (a) "Delivery charge" means a charge:
236 (i) by a seller of:
237 (A) tangible personal property; or
238 (B) services; and
239 (ii) for preparation and delivery of the tangible personal property or services described
240 in Subsection [(21)] (22)(a)(i) to a location designated by the purchaser.
241 (b) "Delivery charge" includes a charge for the following:
242 (i) transportation;
243 (ii) shipping;
244 (iii) postage;
245 (iv) handling;
246 (v) crating; or
247 (vi) packing.
248 [(22)] (23) "Dietary supplement" means a product, other than tobacco, that:
249 (a) is intended to supplement the diet;
250 (b) contains one or more of the following dietary ingredients:
251 (i) a vitamin;
252 (ii) a mineral;
253 (iii) an herb or other botanical;
254 (iv) an amino acid;

255 (v) a dietary substance for use by humans to supplement the diet by increasing the total
256 dietary intake; or
257 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
258 described in Subsections [(22)] (23)(b)(i) through (v);
259 (c) (i) except as provided in Subsection [(22)] (23)(c)(ii), is intended for ingestion in:
260 (A) tablet form;
261 (B) capsule form;
262 (C) powder form;
263 (D) softgel form;
264 (E) gelcap form; or
265 (F) liquid form; or
266 (ii) notwithstanding Subsection [(22)] (23)(c)(i), if the product is not intended for
267 ingestion in a form described in Subsections [(22)] (23)(c)(i)(A) through (F), is not
268 represented:
269 (A) as conventional food; and
270 (B) for use as a sole item of:
271 (I) a meal; or
272 (II) the diet; and
273 (d) is required to be labeled as a dietary supplement:
274 (i) identifiable by the "Supplemental Facts" box found on the label; and
275 (ii) as required by 21 C.F.R. Sec. 101.36.
276 [(23)] (24) (a) "Direct mail" means printed material delivered or distributed by United
277 States mail or other delivery service:
278 (i) to:
279 (A) a mass audience; or
280 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
281 (ii) if the cost of the printed material is not billed directly to the recipients.
282 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a

283 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
284 (c) "Direct mail" does not include multiple items of printed material delivered to a
285 single address.
286 [(24)] (25) (a) "Drug" means a compound, substance, or preparation, or a component of
287 a compound, substance, or preparation that is:
288 (i) recognized in:
289 (A) the official United States Pharmacopoeia;
290 (B) the official Homeopathic Pharmacopoeia of the United States;
291 (C) the official National Formulary; or
292 (D) a supplement to a publication listed in Subsections [(24)] (25)(a)(i)(A) through
293 (C);
294 (ii) intended for use in the:
295 (A) diagnosis of disease;
296 (B) cure of disease;
297 (C) mitigation of disease;
298 (D) treatment of disease; or
299 (E) prevention of disease; or
300 (iii) intended to affect:
301 (A) the structure of the body; or
302 (B) any function of the body.
303 (b) "Drug" does not include:
304 (i) food and food ingredients;
305 (ii) a dietary supplement;
306 (iii) an alcoholic beverage; or
307 (iv) a prosthetic device.
308 [(25)] (26) (a) Except as provided in Subsection [(25)] (26)(c), "durable medical
309 equipment" means equipment that:
310 (i) can withstand repeated use;

311 (ii) is primarily and customarily used to serve a medical purpose;
312 (iii) generally is not useful to a person in the absence of illness or injury; and
313 (iv) is not worn in or on the body.
314 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
315 equipment described in Subsection [(25)] (26)(a).
316 (c) Notwithstanding Subsection [(25)] (26)(a), "durable medical equipment" does not
317 include mobility enhancing equipment.
318 [(26)] (27) "Electronic" means:
319 (a) relating to technology; and
320 (b) having:
321 (i) electrical capabilities;
322 (ii) digital capabilities;
323 (iii) magnetic capabilities;
324 (iv) wireless capabilities;
325 (v) optical capabilities;
326 (vi) electromagnetic capabilities; or
327 (vii) capabilities similar to Subsections [(26)] (27)(b)(i) through (vi).
328 [(27)] (28) (a) "Food and food ingredients" means substances:
329 (i) regardless of whether the substances are in:
330 (A) liquid form;
331 (B) concentrated form;
332 (C) solid form;
333 (D) frozen form;
334 (E) dried form; or
335 (F) dehydrated form; and
336 (ii) that are:
337 (A) sold for:
338 (I) ingestion by humans; or

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

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

395 [(32)] (33) (a) "Hearing aid accessory" means a hearing aid:
396 (i) component;
397 (ii) attachment; or
398 (iii) accessory.
399 (b) "Hearing aid accessory" includes:
400 (i) a hearing aid neck loop;
401 (ii) a hearing aid cord;
402 (iii) a hearing aid ear mold;
403 (iv) hearing aid tubing;
404 (v) a hearing aid ear hook; or
405 (vi) a hearing aid remote control.
406 (c) "Hearing aid accessory" does not include:
407 (i) a component, attachment, or accessory designed to be used only with an:
408 (A) instrument or device described in Subsection [(31)] (32)(b)(i); or
409 (B) assistive listening device or system described in Subsection [(31)] (32)(b)(ii) or
410 (iii); or
411 (ii) a hearing aid battery.
412 [(33)] (34) "Hydroelectric energy" means water used as the sole source of energy to
413 produce electricity.
414 [(34)] (35) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
415 or other fuels:
416 (a) in mining or extraction of minerals;
417 (b) in agricultural operations to produce an agricultural product up to the time of
418 harvest or placing the agricultural product into a storage facility, including:
419 (i) commercial greenhouses;
420 (ii) irrigation pumps;
421 (iii) farm machinery;
422 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not

423 registered under Title 41, Chapter 1a, Part 2, Registration; and
424 (v) other farming activities;
425 (c) in manufacturing tangible personal property at an establishment described in SIC
426 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
427 Executive Office of the President, Office of Management and Budget; or
428 (d) by a scrap recycler if:
429 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
430 one or more of the following items into prepared grades of processed materials for use in new
431 products:
432 (A) iron;
433 (B) steel;
434 (C) nonferrous metal;
435 (D) paper;
436 (E) glass;
437 (F) plastic;
438 (G) textile; or
439 (H) rubber; and
440 (ii) the new products under Subsection [(34)] (35)(d)(i) would otherwise be made with
441 nonrecycled materials.
442 [(35)] (36) (a) Except as provided in Subsection [(35)] (36)(b), "installation charge"
443 means a charge for installing tangible personal property.
444 (b) Notwithstanding Subsection [(35)] (36)(a), "installation charge" does not include a
445 charge for repairs or renovations of tangible personal property.
446 [(36)] (37) (a) "Lease" or "rental" means a transfer of possession or control of tangible
447 personal property for:
448 (i) (A) a fixed term; or
449 (B) an indeterminate term; and
450 (ii) consideration.

451 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
452 amount of consideration may be increased or decreased by reference to the amount realized
453 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
454 Code.
455 (c) "Lease" or "rental" does not include:
456 (i) a transfer of possession or control of property under a security agreement or
457 deferred payment plan that requires the transfer of title upon completion of the required
458 payments;
459 (ii) a transfer of possession or control of property under an agreement that requires the
460 transfer of title:
461 (A) upon completion of required payments; and
462 (B) if the payment of an option price does not exceed the greater of:
463 (I) $100; or
464 (II) 1% of the total required payments; or
465 (iii) providing tangible personal property along with an operator for a fixed period of
466 time or an indeterminate period of time if the operator is necessary for equipment to perform as
467 designed.
468 (d) For purposes of Subsection [(36)] (37)(c)(iii), an operator is necessary for
469 equipment to perform as designed if the operator's duties exceed the:
470 (i) set-up of tangible personal property;
471 (ii) maintenance of tangible personal property; or
472 (iii) inspection of tangible personal property.
473 [(37)] (38) "Load and leave" means delivery to a purchaser by use of a tangible storage
474 media if the tangible storage media is not physically transferred to the purchaser.
475 [(38)] (39) "Local taxing jurisdiction" means a:
476 (a) county that is authorized to impose an agreement sales and use tax;
477 (b) city that is authorized to impose an agreement sales and use tax; or
478 (c) town that is authorized to impose an agreement sales and use tax.

479 [(39)] (40) "Manufactured home" is as defined in Section 58-56-3 .
480 [(40)] (41) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
481 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
482 Industrial Classification Manual of the federal Executive Office of the President, Office of
483 Management and Budget; or
484 (b) a scrap recycler if:
485 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
486 one or more of the following items into prepared grades of processed materials for use in new
487 products:
488 (A) iron;
489 (B) steel;
490 (C) nonferrous metal;
491 (D) paper;
492 (E) glass;
493 (F) plastic;
494 (G) textile; or
495 (H) rubber; and
496 (ii) the new products under Subsection [(40)] (41)(b)(i) would otherwise be made with
497 nonrecycled materials.
498 [(41)] (42) "Mobile home" is as defined in Section 58-56-3 .
499 [(42)] (43) "Mobile telecommunications service" is as defined in the Mobile
500 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
501 [(43)] (44) (a) Except as provided in Subsection [(43)] (44)(c), "mobility enhancing
502 equipment" means equipment that is:
503 (i) primarily and customarily used to provide or increase the ability to move from one
504 place to another;
505 (ii) appropriate for use in a:
506 (A) home; or

507 (B) motor vehicle; and
508 (iii) not generally used by persons with normal mobility.
509 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
510 the equipment described in Subsection [(43)] (44)(a).
511 (c) Notwithstanding Subsection [(43)] (44)(a), "mobility enhancing equipment" does
512 not include:
513 (i) a motor vehicle;
514 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
515 vehicle manufacturer;
516 (iii) durable medical equipment; or
517 (iv) a prosthetic device.
518 [(44)] (45) "Model 1 seller" means a seller that has selected a certified service provider
519 as the seller's agent to perform all of the seller's sales and use tax functions for agreement sales
520 and use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
521 seller's own purchases.
522 [(45)] (46) "Model 2 seller" means a seller that:
523 (a) except as provided in Subsection [(45)] (46)(b), has selected a certified automated
524 system to perform the seller's sales tax functions for agreement sales and use taxes; and
525 (b) notwithstanding Subsection [(45)] (46)(a), retains responsibility for remitting all of
526 the sales tax:
527 (i) collected by the seller; and
528 (ii) to the appropriate local taxing jurisdiction.
529 [(46)] (47) (a) Subject to Subsection [(46)] (47)(b), "model 3 seller" means a seller that
530 has:
531 (i) sales in at least five states that are members of the agreement;
532 (ii) total annual sales revenues of at least $500,000,000;
533 (iii) a proprietary system that calculates the amount of tax:
534 (A) for an agreement sales and use tax; and

535 (B) due to each local taxing jurisdiction; and
536 (iv) entered into a performance agreement with the governing board of the agreement.
537 (b) For purposes of Subsection [(46)] (47)(a), "model 3 seller" includes an affiliated
538 group of sellers using the same proprietary system.
539 [(47)] (48) "Modular home" means a modular unit as defined in Section 58-56-3 .
540 [(48)] (49) "Motor vehicle" is as defined in Section 41-1a-102 .
541 [(49)] (50) (a) "Other fuels" means products that burn independently to produce heat or
542 energy.
543 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
544 personal property.
545 [(50)] (51) "Pawnbroker" is as defined in Section 13-32a-102 .
546 [(51)] (52) "Pawn transaction" is as defined in Section 13-32a-102 .
547 [(52)] (53) (a) "Permanently attached to real property" means that for tangible personal
548 property attached to real property:
549 (i) the attachment of the tangible personal property to the real property:
550 (A) is essential to the use of the tangible personal property; and
551 (B) suggests that the tangible personal property will remain attached to the real
552 property in the same place over the useful life of the tangible personal property; or
553 (ii) if the tangible personal property is detached from the real property, the detachment
554 would:
555 (A) cause substantial damage to the tangible personal property; or
556 (B) require substantial alteration or repair of the real property to which the tangible
557 personal property is attached.
558 (b) "Permanently attached to real property" includes:
559 (i) the attachment of an accessory to the tangible personal property if the accessory is:
560 (A) essential to the operation of the tangible personal property; and
561 (B) attached only to facilitate the operation of the tangible personal property; or
562 (ii) a temporary detachment of tangible personal property from real property for a

563 repair or renovation if the repair or renovation is performed where the tangible personal
564 property and real property are located.
565 (c) "Permanently attached to real property" does not include:
566 (i) the attachment of portable or movable tangible personal property to real property if
567 that portable or movable tangible personal property is attached to real property only for:
568 (A) convenience;
569 (B) stability; or
570 (C) for an obvious temporary purpose; or
571 (ii) the detachment of tangible personal property from real property other than the
572 detachment described in Subsection [(52)] (53)(b)(ii).
573 [(53)] (54) "Person" includes any individual, firm, partnership, joint venture,
574 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
575 city, municipality, district, or other local governmental entity of the state, or any group or
576 combination acting as a unit.
577 [(54)] (55) "Place of primary use":
578 (a) for telephone service other than mobile telecommunications service, means the
579 street address representative of where the purchaser's use of the telephone service primarily
580 occurs, which shall be:
581 (i) the residential street address of the purchaser; or
582 (ii) the primary business street address of the purchaser; or
583 (b) for mobile telecommunications service, is as defined in the Mobile
584 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
585 [(55)] (56) "Postproduction" means an activity related to the finishing or duplication of
586 a medium described in Subsection 59-12-104 (60)(a).
587 [(56)] (57) (a) "Prepared food" means:
588 (i) food:
589 (A) sold in a heated state; or
590 (B) heated by a seller;

591 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
592 item; or
593 (iii) except as provided in Subsection [(56)] (57)(c), food sold with an eating utensil
594 provided by the seller, including a:
595 (A) plate;
596 (B) knife;
597 (C) fork;
598 (D) spoon;
599 (E) glass;
600 (F) cup;
601 (G) napkin; or
602 (H) straw.
603 (b) "Prepared food" does not include:
604 (i) food that a seller only:
605 (A) cuts;
606 (B) repackages; or
607 (C) pasteurizes; or
608 (ii) (A) the following:
609 (I) raw egg;
610 (II) raw fish;
611 (III) raw meat;
612 (IV) raw poultry; or
613 (V) a food containing an item described in Subsections [(56)] (57)(b)(ii)(A)(I) through
614 (IV); and
615 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
616 Food and Drug Administration's Food Code that a consumer cook the items described in
617 Subsection [(56)] (57)(b)(ii)(A) to prevent food borne illness.
618 (c) Notwithstanding Subsection [(56)] (57)(a)(iii), an eating utensil provided by the

619 seller does not include the following used to transport the food:
620 (i) a container; or
621 (ii) packaging.
622 [(57)] (58) "Prescription" means an order, formula, or recipe that is issued:
623 (a) (i) orally;
624 (ii) in writing;
625 (iii) electronically; or
626 (iv) by any other manner of transmission; and
627 (b) by a licensed practitioner authorized by the laws of a state.
628 [(58)] (59) (a) Except as provided in Subsection [(58)] (59)(b)(ii) or (iii), "prewritten
629 computer software" means computer software that is not designed and developed:
630 (i) by the author or other creator of the computer software; and
631 (ii) to the specifications of a specific purchaser.
632 (b) "Prewritten computer software" includes:
633 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
634 software is not designed and developed:
635 (A) by the author or other creator of the computer software; and
636 (B) to the specifications of a specific purchaser;
637 (ii) notwithstanding Subsection [(58)] (59)(a), computer software designed and
638 developed by the author or other creator of the computer software to the specifications of a
639 specific purchaser if the computer software is sold to a person other than the purchaser; or
640 (iii) notwithstanding Subsection [(58)] (59)(a) and except as provided in Subsection
641 [(58)] (59)(c), prewritten computer software or a prewritten portion of prewritten computer
642 software:
643 (A) that is modified or enhanced to any degree; and
644 (B) if the modification or enhancement described in Subsection [(58)] (59)(b)(iii)(A) is
645 designed and developed to the specifications of a specific purchaser.
646 (c) Notwithstanding Subsection [(58)] (59)(b)(iii), "prewritten computer software"

647 does not include a modification or enhancement described in Subsection [(58)] (59)(b)(iii) if
648 the charges for the modification or enhancement are:
649 (i) reasonable; and
650 (ii) separately stated on the invoice or other statement of price provided to the
651 purchaser.
652 [(59)] (60) (a) "Prosthetic device" means a device that is worn on or in the body to:
653 (i) artificially replace a missing portion of the body;
654 (ii) prevent or correct a physical deformity or physical malfunction; or
655 (iii) support a weak or deformed portion of the body.
656 (b) "Prosthetic device" includes:
657 (i) parts used in the repairs or renovation of a prosthetic device; or
658 (ii) replacement parts for a prosthetic device.
659 (c) "Prosthetic device" does not include:
660 (i) corrective eyeglasses;
661 (ii) contact lenses;
662 (iii) hearing aids; or
663 (iv) dental prostheses.
664 [(60)] (61) (a) "Protective equipment" means an item:
665 (i) for human wear; and
666 (ii) that is:
667 (A) designed as protection:
668 (I) to the wearer against injury or disease; or
669 (II) against damage or injury of other persons or property; and
670 (B) not suitable for general use.
671 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
672 commission shall make rules:
673 (i) listing the items that constitute "protective equipment"; and
674 (ii) that are consistent with the list of items that constitute "protective equipment"

675 under the agreement.
676 [(61)] (62) (a) "Purchase price" and "sales price" mean the total amount of
677 consideration:
678 (i) valued in money; and
679 (ii) for which tangible personal property or services are:
680 (A) sold;
681 (B) leased; or
682 (C) rented.
683 (b) "Purchase price" and "sales price" include:
684 (i) the seller's cost of the tangible personal property or services sold;
685 (ii) expenses of the seller, including:
686 (A) the cost of materials used;
687 (B) a labor cost;
688 (C) a service cost;
689 (D) interest;
690 (E) a loss;
691 (F) the cost of transportation to the seller; or
692 (G) a tax imposed on the seller; or
693 (iii) a charge by the seller for any service necessary to complete the sale.
694 (c) "Purchase price" and "sales price" do not include:
695 (i) a discount:
696 (A) in a form including:
697 (I) cash;
698 (II) term; or
699 (III) coupon;
700 (B) that is allowed by a seller;
701 (C) taken by a purchaser on a sale; and
702 (D) that is not reimbursed by a third party; or

703 (ii) the following if separately stated on an invoice, bill of sale, or similar document
704 provided to the purchaser:
705 (A) the amount of a trade-in;
706 (B) the following from credit extended on the sale of tangible personal property or
707 services:
708 (I) interest charges;
709 (II) financing charges; or
710 (III) carrying charges;
711 (C) a tax or fee legally imposed directly on the consumer;
712 (D) a delivery charge; or
713 (E) an installation charge.
714 [(62)] (63) "Purchaser" means a person to whom:
715 (a) a sale of tangible personal property is made; or
716 (b) a service is furnished.
717 [(63)] (64) "Regularly rented" means:
718 (a) rented to a guest for value three or more times during a calendar year; or
719 (b) advertised or held out to the public as a place that is regularly rented to guests for
720 value.
721 [(64)] (65) "Renewable energy" means:
722 (a) biomass energy;
723 (b) hydroelectric energy;
724 (c) geothermal energy;
725 (d) solar energy; or
726 (e) wind energy.
727 [(65)] (66) (a) "Renewable energy production facility" means a facility that:
728 (i) uses renewable energy to produce electricity; and
729 (ii) has a production capacity of 20 kilowatts or greater.
730 (b) A facility is a renewable energy production facility regardless of whether the

731 facility is:
732 (i) connected to an electric grid; or
733 (ii) located on the premises of an electricity consumer.
734 [(66)] (67) "Rental" is as defined in Subsection [(36)] (37).
735 [(67)] (68) "Repairs or renovations of tangible personal property" means:
736 (a) a repair or renovation of tangible personal property that is not permanently attached
737 to real property; or
738 (b) attaching tangible personal property to other tangible personal property if the other
739 tangible personal property to which the tangible personal property is attached is not
740 permanently attached to real property.
741 [(68)] (69) "Residential use" means the use in or around a home, apartment building,
742 sleeping quarters, and similar facilities or accommodations.
743 [(69)] (70) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
744 other than:
745 (a) resale;
746 (b) sublease; or
747 (c) subrent.
748 [(70)] (71) (a) "Retailer" means any person engaged in a regularly organized business
749 in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
750 and who is selling to the user or consumer and not for resale.
751 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
752 engaged in the business of selling to users or consumers within the state.
753 [(71)] (72) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
754 otherwise, in any manner, of tangible personal property or any other taxable transaction under
755 Subsection 59-12-103 (1), for consideration.
756 (b) "Sale" includes:
757 (i) installment and credit sales;
758 (ii) any closed transaction constituting a sale;

759 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
760 chapter;
761 (iv) any transaction if the possession of property is transferred but the seller retains the
762 title as security for the payment of the price; and
763 (v) any transaction under which right to possession, operation, or use of any article of
764 tangible personal property is granted under a lease or contract and the transfer of possession
765 would be taxable if an outright sale were made.
766 [(72)] (73) "Sale at retail" is as defined in Subsection [(69)] (70).
767 [(73)] (74) "Sale-leaseback transaction" means a transaction by which title to tangible
768 personal property that is subject to a tax under this chapter is transferred:
769 (a) by a purchaser-lessee;
770 (b) to a lessor;
771 (c) for consideration; and
772 (d) if:
773 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
774 of the tangible personal property;
775 (ii) the sale of the tangible personal property to the lessor is intended as a form of
776 financing:
777 (A) for the property; and
778 (B) to the purchaser-lessee; and
779 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
780 is required to:
781 (A) capitalize the property for financial reporting purposes; and
782 (B) account for the lease payments as payments made under a financing arrangement.
783 [(74)] (75) "Sales price" is as defined in Subsection [(61)] (62).
784 [(75)] (76) (a) "Sales relating to schools" means the following sales by, amounts paid
785 to, or amounts charged by a school:
786 (i) sales that are directly related to the school's educational functions or activities

787 including:
788 (A) the sale of:
789 (I) textbooks;
790 (II) textbook fees;
791 (III) laboratory fees;
792 (IV) laboratory supplies; or
793 (V) safety equipment;
794 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
795 that:
796 (I) a student is specifically required to wear as a condition of participation in a
797 school-related event or school-related activity; and
798 (II) is not readily adaptable to general or continued usage to the extent that it takes the
799 place of ordinary clothing;
800 (C) sales of the following if the net or gross revenues generated by the sales are
801 deposited into a school district fund or school fund dedicated to school meals:
802 (I) food and food ingredients; or
803 (II) prepared food; or
804 (D) transportation charges for official school activities; or
805 (ii) amounts paid to or amounts charged by a school for admission to a school-related
806 event or school-related activity.
807 (b) "Sales relating to schools" does not include:
808 (i) bookstore sales of items that are not educational materials or supplies;
809 (ii) except as provided in Subsection [(75)] (76)(a)(i)(B):
810 (A) clothing;
811 (B) clothing accessories or equipment;
812 (C) protective equipment; or
813 (D) sports or recreational equipment; or
814 (iii) amounts paid to or amounts charged by a school for admission to a school-related

815 event or school-related activity if the amounts paid or charged are passed through to a person:
816 (A) other than a:
817 (I) school;
818 (II) nonprofit organization authorized by a school board or a governing body of a
819 private school to organize and direct a competitive secondary school activity; or
820 (III) nonprofit association authorized by a school board or a governing body of a
821 private school to organize and direct a competitive secondary school activity; and
822 (B) that is required to collect sales and use taxes under this chapter.
823 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
824 commission may make rules defining the term "passed through."
825 [(76)] (77) For purposes of this section and Section 59-12-104 , "school" means:
826 (a) an elementary school or a secondary school that:
827 (i) is a:
828 (A) public school; or
829 (B) private school; and
830 (ii) provides instruction for one or more grades kindergarten through 12; or
831 (b) a public school district.
832 [(77)] (78) "Seller" means a person that makes a sale, lease, or rental of:
833 (a) tangible personal property; or
834 (b) a service.
835 [(78)] (79) (a) "Semiconductor fabricating or processing materials" means tangible
836 personal property:
837 (i) used primarily in the process of:
838 (A) (I) manufacturing a semiconductor; or
839 (II) fabricating a semiconductor; or
840 (B) maintaining an environment suitable for a semiconductor; or
841 (ii) consumed primarily in the process of:
842 (A) (I) manufacturing a semiconductor; or

843 (II) fabricating a semiconductor; or
844 (B) maintaining an environment suitable for a semiconductor.
845 (b) "Semiconductor fabricating or processing materials" includes:
846 (i) parts used in the repairs or renovations of tangible personal property described in
847 Subsection [(78)] (79)(a); or
848 (ii) a chemical, catalyst, or other material used to:
849 (A) produce or induce in a semiconductor a:
850 (I) chemical change; or
851 (II) physical change;
852 (B) remove impurities from a semiconductor; or
853 (C) improve the marketable condition of a semiconductor.
854 [(79)] (80) "Senior citizen center" means a facility having the primary purpose of
855 providing services to the aged as defined in Section 62A-3-101 .
856 [(80)] (81) "Simplified electronic return" means the electronic return:
857 (a) described in Section 318(C) of the agreement; and
858 (b) approved by the governing board of the agreement.
859 [(81)] (82) "Solar energy" means the sun used as the sole source of energy for
860 producing electricity.
861 [(82)] (83) (a) "Sports or recreational equipment" means an item:
862 (i) designed for human use; and
863 (ii) that is:
864 (A) worn in conjunction with:
865 (I) an athletic activity; or
866 (II) a recreational activity; and
867 (B) not suitable for general use.
868 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
869 commission shall make rules:
870 (i) listing the items that constitute "sports or recreational equipment"; and

871 (ii) that are consistent with the list of items that constitute "sports or recreational
872 equipment" under the agreement.
873 [(83)] (84) "State" means the state of Utah, its departments, and agencies.
874 [(84)] (85) "Storage" means any keeping or retention of tangible personal property or
875 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
876 except sale in the regular course of business.
877 [(85)] (86) (a) "Tangible personal property" means personal property that:
878 (i) may be:
879 (A) seen;
880 (B) weighed;
881 (C) measured;
882 (D) felt; or
883 (E) touched; or
884 (ii) is in any manner perceptible to the senses.
885 (b) "Tangible personal property" includes:
886 (i) electricity;
887 (ii) water;
888 (iii) gas;
889 (iv) steam; or
890 (v) prewritten computer software.
891 [(86)] (87) (a) "Telephone service" means a two-way transmission:
892 (i) by:
893 (A) wire;
894 (B) radio;
895 (C) lightwave; or
896 (D) other electromagnetic means; and
897 (ii) of one or more of the following:
898 (A) a sign;

899 (B) a signal;
900 (C) writing;
901 (D) an image;
902 (E) sound;
903 (F) a message;
904 (G) data; or
905 (H) other information of any nature.
906 (b) "Telephone service" includes:
907 (i) mobile telecommunications service;
908 (ii) private communications service; or
909 (iii) automated digital telephone answering service.
910 (c) "Telephone service" does not include a service or a transaction that a state or a
911 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
912 Tax Freedom Act, Pub. L. No. 105-277.
913 [(87)] (88) Notwithstanding where a call is billed or paid, "telephone service address"
914 means:
915 (a) if the location described in this Subsection [(87)] (88)(a) is known, the location of
916 the telephone service equipment:
917 (i) to which a call is charged; and
918 (ii) from which the call originates or terminates;
919 (b) if the location described in Subsection [(87)] (88)(a) is not known but the location
920 described in this Subsection [(87)] (88)(b) is known, the location of the origination point of the
921 signal of the telephone service first identified by:
922 (i) the telecommunications system of the seller; or
923 (ii) if the system used to transport the signal is not that of the seller, information
924 received by the seller from its service provider; or
925 (c) if the locations described in Subsection [(87)] (88)(a) or (b) are not known, the
926 location of a purchaser's primary place of use.

927 [(88)] (89) (a) "Telephone service provider" means a person that:
928 (i) owns, controls, operates, or manages a telephone service; and
929 (ii) engages in an activity described in Subsection [(88)] (89)(a)(i) for the shared use
930 with or resale to any person of the telephone service.
931 (b) A person described in Subsection [(88)] (89)(a) is a telephone service provider
932 whether or not the Public Service Commission of Utah regulates:
933 (i) that person; or
934 (ii) the telephone service that the person owns, controls, operates, or manages.
935 [(89)] (90) "Tobacco" means:
936 (a) a cigarette;
937 (b) a cigar;
938 (c) chewing tobacco;
939 (d) pipe tobacco; or
940 (e) any other item that contains tobacco.
941 [(90)] (91) (a) "Use" means the exercise of any right or power over tangible personal
942 property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
943 property, item, or service.
944 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
945 the regular course of business and held for resale.
946 [(91)] (92) (a) Subject to Subsection [(91)] (92)(b), "vehicle" means the following that
947 are required to be titled, registered, or titled and registered:
948 (i) an aircraft as defined in Section 72-10-102 ;
949 (ii) a vehicle as defined in Section 41-1a-102 ;
950 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
951 (iv) a vessel as defined in Section 41-1a-102 .
952 (b) For purposes of Subsection 59-12-104 (35) only, "vehicle" includes:
953 (i) a vehicle described in Subsection [(91)] (92)(a); or
954 (ii) (A) a locomotive;

955 (B) a freight car;
956 (C) railroad work equipment; or
957 (D) other railroad rolling stock.
958 [(92)] (93) "Vehicle dealer" means a person engaged in the business of buying, selling,
959 or exchanging a vehicle as defined in Subsection [(91)] (92).
960 [(93)] (94) (a) Except as provided in Subsection [(93)] (94)(b), "waste energy facility"
961 means a facility that generates electricity:
962 (i) using as the primary source of energy waste materials that would be placed in a
963 landfill or refuse pit if it were not used to generate electricity, including:
964 (A) tires;
965 (B) waste coal; or
966 (C) oil shale; and
967 (ii) in amounts greater than actually required for the operation of the facility.
968 (b) "Waste energy facility" does not include a facility that incinerates:
969 (i) municipal solid waste;
970 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
971 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
972 [(94)] (95) "Watercraft" means a vessel as defined in Section 73-18-2 .
973 [(95)] (96) "Wind energy" means wind used as the sole source of energy to produce
974 electricity.
975 [(96)] (97) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
976 geographic location by the United States Postal Service.
977 Section 3. Section 59-12-103 (Effective 07/01/06) is amended to read:
978 59-12-103 (Effective 07/01/06). Sales and use tax base -- Rates -- Effective dates --
979 Use of sales and use tax revenues.
980 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
981 charged for the following transactions:
982 (a) retail sales of tangible personal property made within the state;

983 (b) amounts paid:
984 (i) (A) to a common carrier; or
985 (B) whether the following are municipally or privately owned, to a:
986 (I) telephone service provider; or
987 (II) telegraph corporation as defined in Section 54-2-1 ; and
988 (ii) for:
989 (A) all transportation;
990 (B) telephone service, other than mobile telecommunications service, that originates
991 and terminates within the boundaries of this state;
992 (C) mobile telecommunications service that originates and terminates within the
993 boundaries of one state only to the extent permitted by the Mobile Telecommunications
994 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
995 (D) telegraph service;
996 (c) sales of the following for commercial use:
997 (i) gas;
998 (ii) electricity;
999 (iii) heat;
1000 (iv) coal;
1001 (v) fuel oil; or
1002 (vi) other fuels;
1003 (d) sales of the following for residential use:
1004 (i) gas;
1005 (ii) electricity;
1006 (iii) heat;
1007 (iv) coal;
1008 (v) fuel oil; or
1009 (vi) other fuels;
1010 (e) sales of prepared food;

1011 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
1012 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1013 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1014 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1015 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1016 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1017 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1018 horseback rides, sports activities, or any other amusement, entertainment, recreation,
1019 exhibition, cultural, or athletic activity;
1020 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1021 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1022 (i) the tangible personal property; and
1023 (ii) parts used in the repairs or renovations of the tangible personal property described
1024 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
1025 of that tangible personal property;
1026 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
1027 cleaning or washing of tangible personal property;
1028 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1029 accommodations and services that are regularly rented for less than 30 consecutive days;
1030 (j) amounts paid or charged for laundry or dry cleaning services;
1031 (k) amounts paid or charged for leases or rentals of tangible personal property if within
1032 this state the tangible personal property is:
1033 (i) stored;
1034 (ii) used; or
1035 (iii) otherwise consumed;
1036 (l) amounts paid or charged for tangible personal property if within this state the
1037 tangible personal property is:
1038 (i) stored;

1039 (ii) used; or
1040 (iii) consumed; and
1041 (m) amounts paid or charged for prepaid telephone calling cards.
1042 (2) (a) Except as provided in Subsection (2)(b) or (f), [beginning on July 1, 2001,] a
1043 state tax and a local tax is imposed on a transaction described in Subsection (1) equal to the
1044 sum of:
1045 (i) a state tax imposed on the transaction at a rate of 4.75%; and
1046 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1047 transaction under this chapter other than this part.
1048 (b) (i) [Notwithstanding Subsection (2)(a), beginning on July 1, 2001, a] A state tax
1049 and a local tax is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
1050 [(i)] (A) a state tax imposed on the transaction at a rate of 2%; and
1051 [(ii)] (B) a local tax equal to the sum of the tax rates a county, city, or town imposes on
1052 the transaction under this chapter other than this part.
1053 (ii) Except as provided in Subsection (2)(f), beginning on January 1, 2007, a state tax
1054 and a local tax is imposed on amounts paid or charged for food and food ingredients equal to
1055 the sum of:
1056 (A) a state tax imposed on the amounts paid or charged for food and food ingredients
1057 at a rate of 2.75%; and
1058 (B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1059 amounts paid or charged for food and food ingredients under this chapter other than this part.
1060 (c) Subject to Subsections (2)(d) and (e), a tax rate repeal or tax rate change for a tax
1061 rate imposed under the following shall take effect on the first day of a calendar quarter:
1062 (i) Subsection (2)(a)(i); [or]
1063 (ii) Subsection (2)(b)(i)[.](A); or
1064 (iii) Subsection (2)(b)(ii)(A).
1065 (d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
1066 effect on the first day of the first billing period:

1067 (A) that begins after the effective date of the tax rate increase; and
1068 (B) if the billing period for the transaction begins before the effective date of a tax rate
1069 increase imposed under:
1070 (I) Subsection (2)(a)(i); or
1071 (II) Subsection (2)(b)(i)(A).
1072 (ii) For a transaction described in Subsection (2)(d)(iii), the repeal of a tax or a tax rate
1073 decrease shall take effect on the first day of the last billing period:
1074 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1075 and
1076 (B) if the billing period for the transaction begins before the effective date of the repeal
1077 of the tax or the tax rate decrease imposed under:
1078 (I) Subsection (2)(a)(i); or
1079 (II) Subsection (2)(b)(i)(A).
1080 (iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
1081 (A) Subsection (1)(b);
1082 (B) Subsection (1)(c);
1083 (C) Subsection (1)(d);
1084 (D) Subsection (1)(e);
1085 (E) Subsection (1)(f);
1086 (F) Subsection (1)(g);
1087 (G) Subsection (1)(h);
1088 (H) Subsection (1)(i);
1089 (I) Subsection (1)(j); or
1090 (J) Subsection (1)(k).
1091 (e) (i) If a tax due under Subsection (2)(a)(i) on a catalogue sale is computed on the
1092 basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax
1093 rate imposed under Subsection (2)(a)(i) takes effect:
1094 (A) on the first day of a calendar quarter; and

1095 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change
1096 under Subsection (2)(a)(i).
1097 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1098 the commission may by rule define the term "catalogue sale."
1099 (f) (i) If the price of a bundled transaction is attributable to items of tangible personal
1100 property and food and food ingredients, the tax imposed on the entire bundled transaction is the
1101 sum of the tax rates described in Subsection (2)(a).
1102 (ii) For a seller that sells food and food ingredients and prepared food at the same
1103 location:
1104 (A) if the location at which the food and food ingredients and prepared food is sold is a
1105 restaurant as defined in Section 59-12-602 , the tax imposed on the food and food ingredients
1106 and prepared food is the sum of the tax rates described in Subsection (2)(a); or
1107 (B) if the location at which the food and food ingredients and prepared food is sold is
1108 not a restaurant as defined in Section 59-12-602 , the tax imposed on the food and food
1109 ingredients and prepared food is the sum of the tax rates described in Subsection (2)(b)(ii).
1110 (3) (a) Except as provided in Subsections (4) through (7), the following state taxes
1111 shall be deposited into the General Fund:
1112 (i) the tax imposed by Subsection (2)(a)(i); [or]
1113 (ii) the tax imposed by Subsection (2)(b)(i)[.](A); or
1114 (iii) the tax imposed by Subsection (2)(b)(ii)(A).
1115 (b) The local taxes described in Subsections (2)(a)(ii), (2)(b)(i)(B), and (2)(b)(ii)(B)
1116 shall be distributed to a county, city, or town as provided in this chapter.
1117 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1118 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
1119 through (g):
1120 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1121 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1122 (B) for the fiscal year; or

1123 (ii) $17,500,000.
1124 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1125 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
1126 Department of Natural Resources to:
1127 (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
1128 protect sensitive plant and animal species; or
1129 (B) award grants, up to the amount authorized by the Legislature in an appropriations
1130 act, to political subdivisions of the state to implement the measures described in Subsections
1131 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
1132 (ii) Money transferred to the Department of Natural Resources under Subsection
1133 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1134 person to list or attempt to have listed a species as threatened or endangered under the
1135 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1136 (iii) At the end of each fiscal year:
1137 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1138 Conservation and Development Fund created in Section 73-10-24 ;
1139 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1140 Program Subaccount created in Section 73-10c-5 ; and
1141 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1142 Program Subaccount created in Section 73-10c-5 .
1143 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1144 Subsection (4)(b)(i) shall be deposited each year in the Agriculture Resource Development
1145 Fund created in Section 4-18-6 .
1146 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1147 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
1148 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
1149 water rights.
1150 (ii) At the end of each fiscal year:

1151 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1152 Conservation and Development Fund created in Section 73-10-24 ;
1153 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1154 Program Subaccount created in Section 73-10c-5 ; and
1155 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1156 Program Subaccount created in Section 73-10c-5 .
1157 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1158 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
1159 Fund created in Section 73-10-24 for use by the Division of Water Resources.
1160 (ii) In addition to the uses allowed of the Water Resources Conservation and
1161 Development Fund under Section 73-10-24 , the Water Resources Conservation and
1162 Development Fund may also be used to:
1163 (A) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
1164 funds made available to the Division of Water Resources under this section, of potential project
1165 features of the Central Utah Project;
1166 (B) conduct hydrologic and geotechnical investigations by the Department of Natural
1167 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1168 quantifying surface and ground water resources and describing the hydrologic systems of an
1169 area in sufficient detail so as to enable local and state resource managers to plan for and
1170 accommodate growth in water use without jeopardizing the resource;
1171 (C) fund state required dam safety improvements; and
1172 (D) protect the state's interest in interstate water compact allocations, including the
1173 hiring of technical and legal staff.
1174 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1175 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
1176 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1177 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1178 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount

1179 created in Section 73-10c-5 for use by the Division of Drinking Water to:
1180 (i) provide for the installation and repair of collection, treatment, storage, and
1181 distribution facilities for any public water system, as defined in Section 19-4-102 ;
1182 (ii) develop underground sources of water, including springs and wells; and
1183 (iii) develop surface water sources.
1184 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1185 2003, the lesser of the following amounts shall be used as provided in Subsections (5)(b)
1186 through (d):
1187 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1188 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1189 (B) for the fiscal year; or
1190 (ii) $18,743,000.
1191 (b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
1192 in Subsection (5)(a) shall be deposited each year in the Transportation Corridor Preservation
1193 Revolving Loan Fund created in Section 72-2-117 .
1194 (ii) At least 50% of the money deposited in the Transportation Corridor Preservation
1195 Revolving Loan Fund under Subsection (5)(b)(i) shall be used to fund loan applications made
1196 by the Department of Transportation at the request of local governments.
1197 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1198 Subsection (5)(a) shall be transferred each year as nonlapsing dedicated credits to the
1199 Department of Transportation for the State Park Access Highways Improvement Program
1200 created in Section 72-3-207 .
1201 (d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
1202 Subsection (5)(a) shall be deposited in the class B and class C roads account to be expended as
1203 provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C
1204 roads.
1205 (6) (a) Notwithstanding Subsection (3)(a) and until Subsection (6)(b) applies,
1206 beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial

1207 Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
1208 under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
1209 transactions under Subsection (1).
1210 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
1211 have been paid off and the highway projects completed that are intended to be paid from
1212 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
1213 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
1214 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
1215 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
1216 by a 1/64% tax rate on the taxable transactions under Subsection (1).
1217 (7) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
1218 year 2004-05, the commission shall each year on or before the September 30 immediately
1219 following the last day of the fiscal year deposit the difference described in Subsection (7)(b)
1220 into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is
1221 greater than $0.
1222 (b) The difference described in Subsection (7)(a) is equal to the difference between:
1223 (i) the total amount of the following revenues the commission received from sellers
1224 collecting a tax in accordance with Subsection 59-12-107 (1)(b) for the fiscal year immediately
1225 preceding the September 30 described in Subsection (7)(a):
1226 (A) revenues under Subsection (2)(a)(i); [and]
1227 (B) revenues under Subsection (2)(b)(i)(A); and
1228 (C) revenues under Subsection (2)(b)(ii)(A); and
1229 (ii) $7,279,673.
1230 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
1231 Subsection (6)(a), and until Subsection (8)(b) applies, for a fiscal year beginning on or after
1232 July 1, 2005, the Division of Finance shall deposit $59,594,700 of the revenues generated by
1233 the taxes described in Subsections (2)(a)(i) [and], (2)(b)(i)(A), and (2)(b)(ii)(A) into the
1234 Centennial Highway Fund Restricted Account created by Section 72-2-118 .

1235 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
1236 Subsection (6)(b), when the highway general obligation bonds have been paid off and the
1237 highway projects completed that are intended to be paid from revenues deposited in the
1238 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
1239 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit
1240 $59,594,700 of the revenues generated by the taxes described in Subsections (2)(a)(i) [and],
1241 (2)(b)(i)(A), and (2)(b)(ii)(A) into the Transportation Investment Fund of 2005 created by
1242 Section 72-2-124 .
1243 Section 4. Section 59-12-108 is amended to read:
1244 59-12-108. Monthly payment -- Penalty -- Amount of tax a seller may retain --
1245 Certain amounts allocated to local taxing jurisdictions.
1246 (1) (a) Notwithstanding Section 59-12-107 , a seller that has a tax liability under this
1247 chapter of $50,000 or more for the previous calendar year shall:
1248 (i) file a return with the commission:
1249 (A) monthly on or before the last day of the month immediately following the month
1250 for which the seller collects a tax under this chapter; and
1251 (B) for the month for which the seller collects a tax under this chapter; and
1252 (ii) (A) except as provided in Subsection (1)(a)(ii)(B) or (1)(c), remit with the return
1253 required by Subsection (1)(a)(i) the amount the person is required to remit to the commission
1254 for each tax, fee, or charge described in Subsection (1)(b):
1255 (I) if that seller's tax liability under this chapter for the previous calendar year is less
1256 than $96,000, by any method permitted by the commission; or
1257 (II) if that seller's tax liability under this chapter for the previous calendar year is
1258 $96,000 or more, by electronic funds transfer; or
1259 (B) notwithstanding Subsection (1)(a)(ii)(A), a seller shall remit electronically with the
1260 return required by Subsection (1)(a)(i) the amount the person is required to remit to the
1261 commission for each tax, fee, or charge described in Subsection (1)(b) if that seller:
1262 (I) is required by Section 59-12-107 to file the return electronically; or

1263 (II) (Aa) is required to collect and remit a tax under Subsection 59-12-107 (1)(a); and
1264 (Bb) files a simplified electronic return.
1265 (b) Subsections (1)(a)(i) and (ii) apply to the following taxes, fees, or charges:
1266 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1267 (ii) a fee under Section 19-6-716 ;
1268 (iii) a fee under Section 19-6-805 ;
1269 (iv) a charge under Section 69-2-5.5 ; or
1270 (v) a tax under this chapter.
1271 (c) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63, Chapter 46a,
1272 Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
1273 for making same-day payments other than by electronic funds transfer if making payments by
1274 electronic funds transfer fails.
1275 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1276 commission shall establish by rule procedures and requirements for determining the amount a
1277 seller is required to remit to the commission under this Subsection (1).
1278 (2) (a) Except as provided in Subsection (2)(b), a seller subject to Subsection (1) or a
1279 seller described in Subsection (3) may retain each month an amount not to exceed:
1280 (i) 1.31% of any amounts the seller is required to remit to the commission [for]:
1281 (A) for a transaction described in Subsection 59-12-103 (1) that is subject to the sum of
1282 the tax rates described in Subsection 59-12-103 (2)(a), for the month for which the seller is
1283 filing a return in accordance with Subsection (1); and
1284 (B) for an agreement sales and use tax; and
1285 (ii) for a transaction described in Subsection 59-12-103 (1) that is subject to the sum of
1286 the tax rates described in Subsection 59-12-103 (2)(b)(ii), the sum of:
1287 (A) 1.31% of any amounts the seller is required to remit to the commission in
1288 accordance with Subsection 59-12-103 (2)(b)(ii) for:
1289 (I) the month for which the seller is filing a return in accordance with Subsection (1);
1290 and

1291 (II) an agreement sales and use tax; and
1292 (B) 1.31% of the difference between:
1293 (I) the amounts the seller would have been required to remit to the commission:
1294 (Aa) in accordance with Subsection 59-12-103 (2)(a) if the transaction had been subject
1295 to the sum of the tax rates described in Subsection 59-12-103 (2)(a);
1296 (Bb) for the month for which the seller is filing a return in accordance with Subsection
1297 (1); and
1298 (Cc) for an agreement sales and use tax; and
1299 (II) the amounts the seller is required to remit to the commission:
1300 (Aa) in accordance with Subsection 59-12-103 (2)(b)(ii);
1301 (Bb) for the month for which the seller is filing a return in accordance with Subsection
1302 (1); and
1303 (Cc) for an agreement sales and use tax; and
1304 [(ii)] (iii) 1% of any amounts the seller is required to remit to the commission:
1305 (A) for the month for which the seller is filing a return in accordance with Subsection
1306 (1); and
1307 (B) under:
1308 (I) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1309 (II) Subsection 59-12-603 (1)(a)(i); or
1310 (III) Subsection 59-12-603 (1)(a)(ii).
1311 (b) [Notwithstanding Subsection (2)(a), a] A state government entity that is required to
1312 remit taxes monthly in accordance with Subsection (1) may not retain any amount under
1313 Subsection (2)(a).
1314 (3) A seller that has a tax liability under this chapter for the previous calendar year of
1315 less than $50,000 may:
1316 (a) voluntarily meet the requirements of Subsection (1); and
1317 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
1318 amounts allowed by Subsection (2)(a).

1319 (4) Penalties for late payment shall be as provided in Section 59-1-401 .
1320 (5) (a) For any amounts required to be remitted to the commission under this part, the
1321 commission shall each month calculate an amount equal to the difference between:
1322 (i) the total amount retained for that month by all sellers had the [percentage]
1323 percentages listed under Subsection (2)(a)(i) and (ii) been 1.5%; and
1324 (ii) the total amount retained for that month by all sellers at the [percentage]
1325 percentages listed under Subsection (2)(a)(i) and (ii).
1326 (b) The commission shall each month allocate the amount calculated under Subsection
1327 (5)(a) to each local taxing jurisdiction on the basis of the proportion of agreement sales and use
1328 tax that the commission distributes to each local taxing jurisdiction for that month compared to
1329 the total agreement sales and use tax that the commission distributes for that month to all local
1330 taxing jurisdictions.
1331 Section 5. Appropriation.
1332 (1) Subject to Subsection (2), there is appropriated from the General Fund, for fiscal
1333 year 2006-07 only, $6,000,000 to the State Tax Commission for distribution to certain business
1334 locations to reimburse some of the business location's costs in complying with the reduced
1335 sales and use tax rate imposed on food and food ingredients.
1336 (2) The Legislature intends that the State Tax Commission may expend up to 2% of the
1337 amount appropriated for administrative costs.
1338 (3) The Legislature intends that, to the extent funds are available, the State Tax
1339 Commission distribute these monies as provided in Subsections (4) and (5).
1340 (4) (a) Except as provided in Subsection (4)(b), the State Tax Commission shall
1341 reimburse a business location:
1342 (i) that:
1343 (A) in 2005, remitted taxes imposed by Title 59, Chapter 12, Sales and Use Tax Act, in
1344 an amount greater than or equal to $15,000 but less than or equal to $500,000;
1345 (B) remitted sales and use taxes on food and food ingredients as defined in Section
1346 59-12-102 to the State Tax Commission before March 1, 2006; and

1347 (C) submits a request for reimbursement to the State Tax Commission postmarked
1348 before January 1, 2007;
1349 (ii) for the verifiable amounts that the business location actually expended:
1350 (A) after May 1, 2006, but on or before December 31, 2006; and
1351 (B) to purchase computer hardware and software to account for sales under the reduced
1352 sales and use tax rate imposed on food and food ingredients; and
1353 (iii) in an amount that does not exceed the lesser of:
1354 (A) 50% of the verifiable amounts described in Subsection (4)(a)(ii); or
1355 (B) $10,000.
1356 (b) If the total amount of requests for reimbursement under Subsection (4)(a) exceed
1357 the monies that are available for reimbursement, the State Tax Commission shall reduce each
1358 claim by a pro rata share.
1359 (5) (a) Except as provided in Subsection (5)(b), if, after the State Tax Commission
1360 makes the reimbursements required by Subsection (4), monies described in Subsection (1)
1361 remain for reimbursement, the State Tax Commission shall reimburse a business location:
1362 (i) that:
1363 (A) in 2005, remitted taxes imposed by Title 59, Chapter 12, Sales and Use Tax Act, in
1364 an amount greater than or equal to $15,000;
1365 (B) remitted sales and use taxes on food and food ingredients as defined in Section
1366 59-12-102 to the State Tax Commission before March 1, 2006; and
1367 (C) submits a request for reimbursement to the State Tax Commission postmarked
1368 before January 1, 2007;
1369 (ii) for the verifiable amounts that the business location actually expended:
1370 (A) after May 1, 2006, but on or before December 31, 2006; and
1371 (B) for a business location that, in 2005, remitted taxes imposed by Title 59, Chapter
1372 12, Sales and Use Tax Act:
1373 (I) in an amount greater than or equal to $15,000 but less than or equal to $500,000, for
1374 amounts expended to purchase computer hardware, software, or programming:

1375 (Aa) to account for sales under the reduced sales and use tax rate imposed on food and
1376 food ingredients; and
1377 (Bb) that were not reimbursed in accordance with Subsection (4); or
1378 (II) in an amount greater than $500,000, for amounts expended to purchase computer
1379 hardware, software, or programming to account for sales under the reduced sales and use tax
1380 rate imposed on food and food ingredients; and
1381 (iii) in an amount that does not exceed 50% of the verifiable amounts described in
1382 Subsection (5)(a)(ii).
1383 (b) If the total amount of requests for reimbursement under Subsection (5)(a) exceed
1384 the monies that are available for reimbursement, the State Tax Commission shall reduce each
1385 claim by a pro rata share.
1386 Section 6. Effective date.
1387 This bill takes effect on January 1, 2007.