H.B. 4001

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Sep 19, 2006 at 6:52 PM by rday. --> 1

COUNTY OPTION FUNDING FOR
2 REGIONALLY SIGNIFICANT
3 TRANSPORTATION INFRASTRUCTURE
4 2006 FOURTH SPECIAL SESSION
5 STATE OF UTAH
6 Chief Sponsor: Rebecca D. Lockhart
7 Senate Sponsor: Sheldon L. Killpack
8
9 LONG TITLE
10 General Description:
11 This bill modifies the County Powers, the Sales and Use Tax Act, and Transportation
12 Finances Act to address transportation funding for counties.
13 Highlighted Provisions:
14 This bill:
15 . prohibits a county legislative body from using property taxes to fund fixed
16 guideways;
17 . provides definitions;
18 . authorizes a county legislative body to impose a local option sales and use tax of up
19 to .25% beginning on or after April 1, 2007 for certain transportation uses;
20 . requires a county imposing the tax to establish a prioritization process with
21 weighted criteria;
22 . requires at least 25% of the revenues collected in a county of the first or second
23 class to be expended on corridor preservation;
24 . provides the purposes for which revenues collected for the tax may be expended;
25 . provides procedures and requirements for imposing the tax;

26 . establishes the duties of the State Tax Commission to administer, collect, and
27 enforce the tax; and

28 . makes technical changes.
29 Monies Appropriated in this Bill:
30 None
31 Other Special Clauses:
32 This bill provides an effective date.
33 This bill provides revisor instructions.
34 Utah Code Sections Affected:
35 AMENDS:
36 59-12-102 (Effective 01/01/07), as last amended by Chapter 9, Laws of Utah 2006,
37 Third Special Session
38 72-2-117.5, as enacted by Chapter 284, Laws of Utah 2005
39 72-2-121, as last amended by Chapter 329, Laws of Utah 2006
40 ENACTS:
41 17-50-322, Utah Code Annotated 1953
42 59-12-1701, Utah Code Annotated 1953
43 59-12-1702, Utah Code Annotated 1953
44 59-12-1703, Utah Code Annotated 1953
45 59-12-1704, Utah Code Annotated 1953
46 59-12-1705, Utah Code Annotated 1953
47
48 Be it enacted by the Legislature of the state of Utah:
49 Section 1. Section 17-50-322 is enacted to read:
50 17-50-322. County funding for a fixed guideway.
51 (1) For purposes of this section, "fixed guideway" means a public transit facility that
52 uses and occupies:
53 (a) rail for the use of public transit; or
54 (b) a separate right-of-way for the use of public transit.
55 (2) (a) Except as provided in Subsection (2)(b), a county legislative body may not levy
56 a property tax or expend revenues from uniform fees or any tax or fee imposed in lieu of a
57 property tax, to purchase, erect, repair, rebuild, maintain, or otherwise fund a fixed guideway.

58 (b) Subsection (2)(a) does not apply to a property tax levy imposed by a county for the

59 purpose of paying for bonds if:
60 (i) before January 1, 2007, the bonds were issued or approved by voters for issuance to
61 fund a fixed guideway; and
62 (ii) the county does not impose a sales and use tax authorized by Section 59-12-1703 .
63 Section 2. Section 59-12-102 (Effective 01/01/07) is amended to read:
64 59-12-102 (Effective 01/01/07). Definitions.
65 As used in this chapter:
66 (1) (a) "Admission or user fees" includes season passes.
67 (b) "Admission or user fees" does not include annual membership dues to private
68 organizations.
69 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
70 Section 59-12-102.1 .
71 (3) "Agreement combined tax rate" means the sum of the tax rates:
72 (a) listed under Subsection (4); and
73 (b) that are imposed within a local taxing jurisdiction.
74 (4) "Agreement sales and use tax" means a tax imposed under:
75 (a) Subsection 59-12-103 (2)(a)(i) or (2)(b)(iii)(A);
76 (b) Section 59-12-204 ;
77 (c) Section 59-12-401 ;
78 (d) Section 59-12-402 ;
79 (e) Section 59-12-501 ;
80 (f) Section 59-12-502 ;
81 (g) Section 59-12-703 ;
82 (h) Section 59-12-802 ;
83 (i) Section 59-12-804 ;
84 (j) Section 59-12-1001 ;
85 (k) Section 59-12-1102 ;
86 (l) Section 59-12-1302 ;
87 (m) Section 59-12-1402 ; or
88 (n) Section 59-12-1503 .
89 (5) "Aircraft" is as defined in Section 72-10-102 .

90 (6) "Alcoholic beverage" means a beverage that:
91 (a) is suitable for human consumption; and
92 (b) contains .5% or more alcohol by volume.
93 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
94 (8) "Assisted amusement device" means an amusement device, skill device, or ride
95 device that is started and stopped by an individual:
96 (a) who is not the purchaser or renter of the right to use or operate the amusement
97 device, skill device, or ride device; and
98 (b) at the direction of the seller of the right to use the amusement device, skill device,
99 or ride device.
100 (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
101 washing of tangible personal property if the cleaning or washing labor is primarily performed
102 by an individual:
103 (a) who is not the purchaser of the cleaning or washing of the tangible personal
104 property; and
105 (b) at the direction of the seller of the cleaning or washing of the tangible personal
106 property.
107 (10) "Authorized carrier" means:
108 (a) in the case of vehicles operated over public highways, the holder of credentials
109 indicating that the vehicle is or will be operated pursuant to both the International Registration
110 Plan and the International Fuel Tax Agreement;
111 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
112 certificate or air carrier's operating certificate; or
113 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
114 stock, the holder of a certificate issued by the United States Surface Transportation Board.
115 (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
116 following that is used as the primary source of energy to produce fuel or electricity:
117 (i) material from a plant or tree; or
118 (ii) other organic matter that is available on a renewable basis, including:
119 (A) slash and brush from forests and woodlands;
120 (B) animal waste;

121 (C) methane produced:
122 (I) at landfills; or
123 (II) as a byproduct of the treatment of wastewater residuals;
124 (D) aquatic plants; and
125 (E) agricultural products.
126 (b) "Biomass energy" does not include:
127 (i) black liquor;
128 (ii) treated woods; or
129 (iii) biomass from municipal solid waste other than methane produced:
130 (A) at landfills; or
131 (B) as a byproduct of the treatment of wastewater residuals.
132 (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
133 property if:
134 (i) one or more of the items of tangible personal property is food and food ingredients;
135 and
136 (ii) the items of tangible personal property are:
137 (A) distinct and identifiable; and
138 (B) sold for one price that is not itemized.
139 (b) "Bundled transaction" does not include the sale of tangible personal property if the
140 sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
141 tangible personal property included in the transaction.
142 (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
143 and identifiable does not include:
144 (i) packaging that:
145 (A) accompanies the sale of the tangible personal property; and
146 (B) is incidental or immaterial to the sale of the tangible personal property;
147 (ii) tangible personal property provided free of charge with the purchase of another
148 item of tangible personal property; or
149 (iii) an item of tangible personal property included in the definition of "purchase
150 price."
151 (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is

152 provided free of charge with the purchase of another item of tangible personal property if the
153 sales price of the purchased item of tangible personal property does not vary depending on the
154 inclusion of the tangible personal property provided free of charge.
155 (13) "Certified automated system" means software certified by the governing board of
156 the agreement in accordance with Section 59-12-102.1 that:
157 (a) calculates the agreement sales and use tax imposed within a local taxing
158 jurisdiction:
159 (i) on a transaction; and
160 (ii) in the states that are members of the agreement;
161 (b) determines the amount of agreement sales and use tax to remit to a state that is a
162 member of the agreement; and
163 (c) maintains a record of the transaction described in Subsection (13)(a)(i).
164 (14) "Certified service provider" means an agent certified:
165 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
166 and
167 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
168 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
169 own purchases.
170 (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
171 suitable for general use.
172 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
173 commission shall make rules:
174 (i) listing the items that constitute "clothing"; and
175 (ii) that are consistent with the list of items that constitute "clothing" under the
176 agreement.
177 (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
178 (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
179 fuels that does not constitute industrial use under Subsection [(38)] (39) or residential use
180 under Subsection [(75)] (76).
181 (18) (a) "Common carrier" means a person engaged in or transacting the business of
182 transporting passengers, freight, merchandise, or other property for hire within this state.

183 (b) (i) "Common carrier" does not include a person who, at the time the person is
184 traveling to or from that person's place of employment, transports a passenger to or from the
185 passenger's place of employment.
186 (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
187 Utah Administrative Rulemaking Act, the commission may make rules defining what
188 constitutes a person's place of employment.
189 (19) "Component part" includes:
190 (a) poultry, dairy, and other livestock feed, and their components;
191 (b) baling ties and twine used in the baling of hay and straw;
192 (c) fuel used for providing temperature control of orchards and commercial
193 greenhouses doing a majority of their business in wholesale sales, and for providing power for
194 off-highway type farm machinery; and
195 (d) feed, seeds, and seedlings.
196 (20) "Computer" means an electronic device that accepts information:
197 (a) (i) in digital form; or
198 (ii) in a form similar to digital form; and
199 (b) manipulates that information for a result based on a sequence of instructions.
200 (21) "Computer software" means a set of coded instructions designed to cause:
201 (a) a computer to perform a task; or
202 (b) automatic data processing equipment to perform a task.
203 (22) "Construction materials" means any tangible personal property that will be
204 converted into real property.
205 (23) "Delivered electronically" means delivered to a purchaser by means other than
206 tangible storage media.
207 (24) (a) "Delivery charge" means a charge:
208 (i) by a seller of:
209 (A) tangible personal property; or
210 (B) services; and
211 (ii) for preparation and delivery of the tangible personal property or services described
212 in Subsection (24)(a)(i) to a location designated by the purchaser.
213 (b) "Delivery charge" includes a charge for the following:

214 (i) transportation;
215 (ii) shipping;
216 (iii) postage;
217 (iv) handling;
218 (v) crating; or
219 (vi) packing.
220 (25) "Dietary supplement" means a product, other than tobacco, that:
221 (a) is intended to supplement the diet;
222 (b) contains one or more of the following dietary ingredients:
223 (i) a vitamin;
224 (ii) a mineral;
225 (iii) an herb or other botanical;
226 (iv) an amino acid;
227 (v) a dietary substance for use by humans to supplement the diet by increasing the total
228 dietary intake; or
229 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
230 described in Subsections (25)(b)(i) through (v);
231 (c) (i) except as provided in Subsection (25)(c)(ii), is intended for ingestion in:
232 (A) tablet form;
233 (B) capsule form;
234 (C) powder form;
235 (D) softgel form;
236 (E) gelcap form; or
237 (F) liquid form; or
238 (ii) notwithstanding Subsection (25)(c)(i), if the product is not intended for ingestion in
239 a form described in Subsections (25)(c)(i)(A) through (F), is not represented:
240 (A) as conventional food; and
241 (B) for use as a sole item of:
242 (I) a meal; or
243 (II) the diet; and
244 (d) is required to be labeled as a dietary supplement:

245 (i) identifiable by the "Supplemental Facts" box found on the label; and
246 (ii) as required by 21 C.F.R. Sec. 101.36.
247 (26) (a) "Direct mail" means printed material delivered or distributed by United States
248 mail or other delivery service:
249 (i) to:
250 (A) a mass audience; or
251 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
252 (ii) if the cost of the printed material is not billed directly to the recipients.
253 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
254 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
255 (c) "Direct mail" does not include multiple items of printed material delivered to a
256 single address.
257 (27) (a) "Drug" means a compound, substance, or preparation, or a component of a
258 compound, substance, or preparation that is:
259 (i) recognized in:
260 (A) the official United States Pharmacopoeia;
261 (B) the official Homeopathic Pharmacopoeia of the United States;
262 (C) the official National Formulary; or
263 (D) a supplement to a publication listed in Subsections (27)(a)(i)(A) through (C);
264 (ii) intended for use in the:
265 (A) diagnosis of disease;
266 (B) cure of disease;
267 (C) mitigation of disease;
268 (D) treatment of disease; or
269 (E) prevention of disease; or
270 (iii) intended to affect:
271 (A) the structure of the body; or
272 (B) any function of the body.
273 (b) "Drug" does not include:
274 (i) food and food ingredients;
275 (ii) a dietary supplement;

276 (iii) an alcoholic beverage; or
277 (iv) a prosthetic device.
278 (28) (a) Except as provided in Subsection (28)(c), "durable medical equipment" means
279 equipment that:
280 (i) can withstand repeated use;
281 (ii) is primarily and customarily used to serve a medical purpose;
282 (iii) generally is not useful to a person in the absence of illness or injury; and
283 (iv) is not worn in or on the body.
284 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
285 equipment described in Subsection (28)(a).
286 (c) Notwithstanding Subsection (28)(a), "durable medical equipment" does not include
287 mobility enhancing equipment.
288 (29) "Electronic" means:
289 (a) relating to technology; and
290 (b) having:
291 (i) electrical capabilities;
292 (ii) digital capabilities;
293 (iii) magnetic capabilities;
294 (iv) wireless capabilities;
295 (v) optical capabilities;
296 (vi) electromagnetic capabilities; or
297 (vii) capabilities similar to Subsections (29)(b)(i) through (vi).
298 (30) "Employee" is as defined in Section 59-10-401 .
299 (31) "Fixed guideway" means a public transit facility that uses and occupies:
300 (a) rail for the use of public transit; or
301 (b) a separate right-of-way for the use of public transit.
302 [(31)] (32) (a) "Food and food ingredients" means substances:
303 (i) regardless of whether the substances are in:
304 (A) liquid form;
305 (B) concentrated form;
306 (C) solid form;

307 (D) frozen form;
308 (E) dried form; or
309 (F) dehydrated form; and
310 (ii) that are:
311 (A) sold for:
312 (I) ingestion by humans; or
313 (II) chewing by humans; and
314 (B) consumed for the substance's:
315 (I) taste; or
316 (II) nutritional value.
317 (b) "Food and food ingredients" includes an item described in Subsection [(62)]
318 (63)(b)(iii).
319 (c) "Food and food ingredients" does not include:
320 (i) an alcoholic beverage;
321 (ii) tobacco; or
322 (iii) prepared food.
323 [(32)] (33) (a) "Fundraising sales" means sales:
324 (i) (A) made by a school; or
325 (B) made by a school student;
326 (ii) that are for the purpose of raising funds for the school to purchase equipment,
327 materials, or provide transportation; and
328 (iii) that are part of an officially sanctioned school activity.
329 (b) For purposes of Subsection [(32)] (33)(a)(iii), "officially sanctioned school activity"
330 means a school activity:
331 (i) that is conducted in accordance with a formal policy adopted by the school or school
332 district governing the authorization and supervision of fundraising activities;
333 (ii) that does not directly or indirectly compensate an individual teacher or other
334 educational personnel by direct payment, commissions, or payment in kind; and
335 (iii) the net or gross revenues from which are deposited in a dedicated account
336 controlled by the school or school district.
337 [(33)] (34) "Geothermal energy" means energy contained in heat that continuously

338 flows outward from the earth that is used as the sole source of energy to produce electricity.
339 [(34)] (35) "Governing board of the agreement" means the governing board of the
340 agreement that is:
341 (a) authorized to administer the agreement; and
342 (b) established in accordance with the agreement.
343 [(35)] (36) (a) "Hearing aid" means:
344 (i) an instrument or device having an electronic component that is designed to:
345 (A) (I) improve impaired human hearing; or
346 (II) correct impaired human hearing; and
347 (B) (I) be worn in the human ear; or
348 (II) affixed behind the human ear;
349 (ii) an instrument or device that is surgically implanted into the cochlea; or
350 (iii) a telephone amplifying device.
351 (b) "Hearing aid" does not include:
352 (i) except as provided in Subsection [(35)] (36)(a)(i)(B) or [(35)] (36)(a)(ii), an
353 instrument or device having an electronic component that is designed to be worn on the body;
354 (ii) except as provided in Subsection [(35)] (36)(a)(iii), an assistive listening device or
355 system designed to be used by one individual, including:
356 (A) a personal amplifying system;
357 (B) a personal FM system;
358 (C) a television listening system; or
359 (D) a device or system similar to a device or system described in Subsections [(35)]
360 (36)(b)(ii)(A) through (C); or
361 (iii) an assistive listening device or system designed to be used by more than one
362 individual, including:
363 (A) a device or system installed in:
364 (I) an auditorium;
365 (II) a church;
366 (III) a conference room;
367 (IV) a synagogue; or
368 (V) a theater; or

369 (B) a device or system similar to a device or system described in Subsections [(35)]
370 (36)(b)(iii)(A)(I) through (V).
371 [(36)] (37) (a) "Hearing aid accessory" means a hearing aid:
372 (i) component;
373 (ii) attachment; or
374 (iii) accessory.
375 (b) "Hearing aid accessory" includes:
376 (i) a hearing aid neck loop;
377 (ii) a hearing aid cord;
378 (iii) a hearing aid ear mold;
379 (iv) hearing aid tubing;
380 (v) a hearing aid ear hook; or
381 (vi) a hearing aid remote control.
382 (c) "Hearing aid accessory" does not include:
383 (i) a component, attachment, or accessory designed to be used only with an:
384 (A) instrument or device described in Subsection [(35)] (36)(b)(i); or
385 (B) assistive listening device or system described in Subsection [(35)] (36)(b)(ii) or
386 (iii); or
387 (ii) a hearing aid battery.
388 [(37)] (38) "Hydroelectric energy" means water used as the sole source of energy to
389 produce electricity.
390 [(38)] (39) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
391 or other fuels:
392 (a) in mining or extraction of minerals;
393 (b) in agricultural operations to produce an agricultural product up to the time of
394 harvest or placing the agricultural product into a storage facility, including:
395 (i) commercial greenhouses;
396 (ii) irrigation pumps;
397 (iii) farm machinery;
398 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
399 registered under Title 41, Chapter 1a, Part 2, Registration; and

400 (v) other farming activities;
401 (c) in manufacturing tangible personal property at an establishment described in SIC
402 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
403 Executive Office of the President, Office of Management and Budget;
404 (d) by a scrap recycler if:
405 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
406 one or more of the following items into prepared grades of processed materials for use in new
407 products:
408 (A) iron;
409 (B) steel;
410 (C) nonferrous metal;
411 (D) paper;
412 (E) glass;
413 (F) plastic;
414 (G) textile; or
415 (H) rubber; and
416 (ii) the new products under Subsection [(38)] (39)(d)(i) would otherwise be made with
417 nonrecycled materials; or
418 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
419 cogeneration facility as defined in Section 54-2-1 .
420 [(39)] (40) (a) Except as provided in Subsection [(39)] (40)(b), "installation charge"
421 means a charge for installing tangible personal property.
422 (b) Notwithstanding Subsection [(39)] (40)(a), "installation charge" does not include a
423 charge for repairs or renovations of tangible personal property.
424 [(40)] (41) (a) "Lease" or "rental" means a transfer of possession or control of tangible
425 personal property for:
426 (i) (A) a fixed term; or
427 (B) an indeterminate term; and
428 (ii) consideration.
429 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
430 amount of consideration may be increased or decreased by reference to the amount realized

431 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
432 Code.
433 (c) "Lease" or "rental" does not include:
434 (i) a transfer of possession or control of property under a security agreement or
435 deferred payment plan that requires the transfer of title upon completion of the required
436 payments;
437 (ii) a transfer of possession or control of property under an agreement that requires the
438 transfer of title:
439 (A) upon completion of required payments; and
440 (B) if the payment of an option price does not exceed the greater of:
441 (I) $100; or
442 (II) 1% of the total required payments; or
443 (iii) providing tangible personal property along with an operator for a fixed period of
444 time or an indeterminate period of time if the operator is necessary for equipment to perform as
445 designed.
446 (d) For purposes of Subsection [(40)] (41)(c)(iii), an operator is necessary for
447 equipment to perform as designed if the operator's duties exceed the:
448 (i) set-up of tangible personal property;
449 (ii) maintenance of tangible personal property; or
450 (iii) inspection of tangible personal property.
451 [(41)] (42) "Load and leave" means delivery to a purchaser by use of a tangible storage
452 media if the tangible storage media is not physically transferred to the purchaser.
453 [(42)] (43) "Local taxing jurisdiction" means a:
454 (a) county that is authorized to impose an agreement sales and use tax;
455 (b) city that is authorized to impose an agreement sales and use tax; or
456 (c) town that is authorized to impose an agreement sales and use tax.
457 [(43)] (44) "Manufactured home" is as defined in Section 58-56-3 .
458 [(44)] (45) For purposes of Section 59-12-104 , "manufacturing facility" means:
459 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
460 Industrial Classification Manual of the federal Executive Office of the President, Office of
461 Management and Budget;

462 (b) a scrap recycler if:
463 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
464 one or more of the following items into prepared grades of processed materials for use in new
465 products:
466 (A) iron;
467 (B) steel;
468 (C) nonferrous metal;
469 (D) paper;
470 (E) glass;
471 (F) plastic;
472 (G) textile; or
473 (H) rubber; and
474 (ii) the new products under Subsection [(44)] (45)(b)(i) would otherwise be made with
475 nonrecycled materials; or
476 (c) a cogeneration facility as defined in Section 54-2-1 .
477 [(45)] (46) "Member of the immediate family of the producer" means a person who is
478 related to a producer described in Subsection 59-12-104 (20)(a) as a:
479 (a) child or stepchild, regardless of whether the child or stepchild is:
480 (i) an adopted child or adopted stepchild; or
481 (ii) a foster child or foster stepchild;
482 (b) grandchild or stepgrandchild;
483 (c) grandparent or stepgrandparent;
484 (d) nephew or stepnephew;
485 (e) niece or stepniece;
486 (f) parent or stepparent;
487 (g) sibling or stepsibling;
488 (h) spouse;
489 (i) person who is the spouse of a person described in Subsections [(45)] (46)(a) through
490 (g); or
491 (j) person similar to a person described in Subsections [(45)] (46)(a) through (i) as
492 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah

493 Administrative Rulemaking Act.
494 [(46)] (47) "Mobile home" is as defined in Section 58-56-3 .
495 [(47)] (48) "Mobile telecommunications service" is as defined in the Mobile
496 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
497 [(48)] (49) (a) Except as provided in Subsection [(48)] (49)(c), "mobility enhancing
498 equipment" means equipment that is:
499 (i) primarily and customarily used to provide or increase the ability to move from one
500 place to another;
501 (ii) appropriate for use in a:
502 (A) home; or
503 (B) motor vehicle; and
504 (iii) not generally used by persons with normal mobility.
505 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
506 the equipment described in Subsection [(48)] (49)(a).
507 (c) Notwithstanding Subsection [(48)] (49)(a), "mobility enhancing equipment" does
508 not include:
509 (i) a motor vehicle;
510 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
511 vehicle manufacturer;
512 (iii) durable medical equipment; or
513 (iv) a prosthetic device.
514 [(49)] (50) "Model 1 seller" means a seller that has selected a certified service provider
515 as the seller's agent to perform all of the seller's sales and use tax functions for agreement sales
516 and use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
517 seller's own purchases.
518 [(50)] (51) "Model 2 seller" means a seller that:
519 (a) except as provided in Subsection [(50)] (51)(b), has selected a certified automated
520 system to perform the seller's sales tax functions for agreement sales and use taxes; and
521 (b) notwithstanding Subsection [(50)] (51)(a), retains responsibility for remitting all of
522 the sales tax:
523 (i) collected by the seller; and

524 (ii) to the appropriate local taxing jurisdiction.
525 [(51)] (52) (a) Subject to Subsection [(51)] (52)(b), "model 3 seller" means a seller that
526 has:
527 (i) sales in at least five states that are members of the agreement;
528 (ii) total annual sales revenues of at least $500,000,000;
529 (iii) a proprietary system that calculates the amount of tax:
530 (A) for an agreement sales and use tax; and
531 (B) due to each local taxing jurisdiction; and
532 (iv) entered into a performance agreement with the governing board of the agreement.
533 (b) For purposes of Subsection [(51)] (52)(a), "model 3 seller" includes an affiliated
534 group of sellers using the same proprietary system.
535 [(52)] (53) "Modular home" means a modular unit as defined in Section 58-56-3 .
536 [(53)] (54) "Motor vehicle" is as defined in Section 41-1a-102 .
537 [(54)] (55) "Oil shale" means a group of fine black to dark brown shales containing
538 bituminous material that yields petroleum upon distillation.
539 [(55)] (56) (a) "Other fuels" means products that burn independently to produce heat or
540 energy.
541 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
542 personal property.
543 [(56)] (57) "Pawnbroker" is as defined in Section 13-32a-102 .
544 [(57)] (58) "Pawn transaction" is as defined in Section 13-32a-102 .
545 [(58)] (59) (a) "Permanently attached to real property" means that for tangible personal
546 property attached to real property:
547 (i) the attachment of the tangible personal property to the real property:
548 (A) is essential to the use of the tangible personal property; and
549 (B) suggests that the tangible personal property will remain attached to the real
550 property in the same place over the useful life of the tangible personal property; or
551 (ii) if the tangible personal property is detached from the real property, the detachment
552 would:
553 (A) cause substantial damage to the tangible personal property; or
554 (B) require substantial alteration or repair of the real property to which the tangible

555 personal property is attached.
556 (b) "Permanently attached to real property" includes:
557 (i) the attachment of an accessory to the tangible personal property if the accessory is:
558 (A) essential to the operation of the tangible personal property; and
559 (B) attached only to facilitate the operation of the tangible personal property;
560 (ii) a temporary detachment of tangible personal property from real property for a
561 repair or renovation if the repair or renovation is performed where the tangible personal
562 property and real property are located; or
563 (iii) an attachment of the following tangible personal property to real property,
564 regardless of whether the attachment to real property is only through a line that supplies water,
565 electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
566 rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
567 (A) property attached to oil, gas, or water pipelines, other than the property listed in
568 Subsection [(58)] (59)(c)(iii);
569 (B) a hot water heater;
570 (C) a water softener system; or
571 (D) a water filtration system, other than a water filtration system manufactured as part
572 of a refrigerator.
573 (c) "Permanently attached to real property" does not include:
574 (i) the attachment of portable or movable tangible personal property to real property if
575 that portable or movable tangible personal property is attached to real property only for:
576 (A) convenience;
577 (B) stability; or
578 (C) for an obvious temporary purpose;
579 (ii) the detachment of tangible personal property from real property other than the
580 detachment described in Subsection [(58)] (59)(b)(ii); or
581 (iii) an attachment of the following tangible personal property to real property if the
582 attachment to real property is only through a line that supplies water, electricity, gas, telephone,
583 cable, or supplies a similar item as determined by the commission by rule made in accordance
584 with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
585 (A) a refrigerator;

586 (B) a washer;
587 (C) a dryer;
588 (D) a stove;
589 (E) a television;
590 (F) a computer;
591 (G) a telephone; or
592 (H) tangible personal property similar to Subsections [(58)] (59)(c)(iii)(A) through (G)
593 as determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
594 Administrative Rulemaking Act.
595 [(59)] (60) "Person" includes any individual, firm, partnership, joint venture,
596 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
597 city, municipality, district, or other local governmental entity of the state, or any group or
598 combination acting as a unit.
599 [(60)] (61) "Place of primary use":
600 (a) for telephone service other than mobile telecommunications service, means the
601 street address representative of where the purchaser's use of the telephone service primarily
602 occurs, which shall be:
603 (i) the residential street address of the purchaser; or
604 (ii) the primary business street address of the purchaser; or
605 (b) for mobile telecommunications service, is as defined in the Mobile
606 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
607 [(61)] (62) "Postproduction" means an activity related to the finishing or duplication of
608 a medium described in Subsection 59-12-104 (56)(a).
609 [(62)] (63) (a) "Prepared food" means:
610 (i) food:
611 (A) sold in a heated state; or
612 (B) heated by a seller;
613 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
614 item; or
615 (iii) except as provided in Subsection [(62)] (63)(c), food sold with an eating utensil
616 provided by the seller, including a:

617 (A) plate;
618 (B) knife;
619 (C) fork;
620 (D) spoon;
621 (E) glass;
622 (F) cup;
623 (G) napkin; or
624 (H) straw.
625 (b) "Prepared food" does not include:
626 (i) food that a seller only:
627 (A) cuts;
628 (B) repackages; or
629 (C) pasteurizes; or
630 (ii) (A) the following:
631 (I) raw egg;
632 (II) raw fish;
633 (III) raw meat;
634 (IV) raw poultry; or
635 (V) a food containing an item described in Subsections [(62)] (63)(b)(ii)(A)(I) through
636 (IV); and
637 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
638 Food and Drug Administration's Food Code that a consumer cook the items described in
639 Subsection [(62)] (63)(b)(ii)(A) to prevent food borne illness; or
640 (iii) the following if sold without eating utensils provided by the seller:
641 (A) food and food ingredients sold by a seller if the seller's proper primary
642 classification under the 2002 North American Industry Classification System of the federal
643 Executive Office of the President, Office of Management and Budget, is manufacturing in
644 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
645 Manufacturing;
646 (B) food and food ingredients sold in an unheated state:
647 (I) by weight or volume; and

648 (II) as a single item; or
649 (C) a bakery item, including:
650 (I) a bagel;
651 (II) a bar;
652 (III) a biscuit;
653 (IV) bread;
654 (V) a bun;
655 (VI) a cake;
656 (VII) a cookie;
657 (VIII) a croissant;
658 (IX) a danish;
659 (X) a donut;
660 (XI) a muffin;
661 (XII) a pastry;
662 (XIII) a pie;
663 (XIV) a roll;
664 (XV) a tart;
665 (XVI) a torte; or
666 (XVII) a tortilla.
667 (c) Notwithstanding Subsection [(62)] (63)(a)(iii), an eating utensil provided by the
668 seller does not include the following used to transport the food:
669 (i) a container; or
670 (ii) packaging.
671 [(63)] (64) "Prescription" means an order, formula, or recipe that is issued:
672 (a) (i) orally;
673 (ii) in writing;
674 (iii) electronically; or
675 (iv) by any other manner of transmission; and
676 (b) by a licensed practitioner authorized by the laws of a state.
677 [(64)] (65) (a) Except as provided in Subsection [(64)] (65)(b)(ii) or (iii), "prewritten
678 computer software" means computer software that is not designed and developed:

679 (i) by the author or other creator of the computer software; and
680 (ii) to the specifications of a specific purchaser.
681 (b) "Prewritten computer software" includes:
682 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
683 software is not designed and developed:
684 (A) by the author or other creator of the computer software; and
685 (B) to the specifications of a specific purchaser;
686 (ii) notwithstanding Subsection [(64)] (65)(a), computer software designed and
687 developed by the author or other creator of the computer software to the specifications of a
688 specific purchaser if the computer software is sold to a person other than the purchaser; or
689 (iii) notwithstanding Subsection [(64)] (65)(a) and except as provided in Subsection
690 [(64)] (65)(c), prewritten computer software or a prewritten portion of prewritten computer
691 software:
692 (A) that is modified or enhanced to any degree; and
693 (B) if the modification or enhancement described in Subsection [(64)] (65)(b)(iii)(A) is
694 designed and developed to the specifications of a specific purchaser.
695 (c) Notwithstanding Subsection [(64)] (65)(b)(iii), "prewritten computer software"
696 does not include a modification or enhancement described in Subsection [(64)] (65)(b)(iii) if
697 the charges for the modification or enhancement are:
698 (i) reasonable; and
699 (ii) separately stated on the invoice or other statement of price provided to the
700 purchaser.
701 [(65)] (66) (a) "Prosthetic device" means a device that is worn on or in the body to:
702 (i) artificially replace a missing portion of the body;
703 (ii) prevent or correct a physical deformity or physical malfunction; or
704 (iii) support a weak or deformed portion of the body.
705 (b) "Prosthetic device" includes:
706 (i) parts used in the repairs or renovation of a prosthetic device; or
707 (ii) replacement parts for a prosthetic device.
708 (c) "Prosthetic device" does not include:
709 (i) corrective eyeglasses;

710 (ii) contact lenses;
711 (iii) hearing aids; or
712 (iv) dental prostheses.
713 [(66)] (67) (a) "Protective equipment" means an item:
714 (i) for human wear; and
715 (ii) that is:
716 (A) designed as protection:
717 (I) to the wearer against injury or disease; or
718 (II) against damage or injury of other persons or property; and
719 (B) not suitable for general use.
720 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
721 commission shall make rules:
722 (i) listing the items that constitute "protective equipment"; and
723 (ii) that are consistent with the list of items that constitute "protective equipment"
724 under the agreement.
725 [(67)] (68) (a) "Purchase price" and "sales price" mean the total amount of
726 consideration:
727 (i) valued in money; and
728 (ii) for which tangible personal property or services are:
729 (A) sold;
730 (B) leased; or
731 (C) rented.
732 (b) "Purchase price" and "sales price" include:
733 (i) the seller's cost of the tangible personal property or services sold;
734 (ii) expenses of the seller, including:
735 (A) the cost of materials used;
736 (B) a labor cost;
737 (C) a service cost;
738 (D) interest;
739 (E) a loss;
740 (F) the cost of transportation to the seller; or

741 (G) a tax imposed on the seller; or
742 (iii) a charge by the seller for any service necessary to complete the sale.
743 (c) "Purchase price" and "sales price" do not include:
744 (i) a discount:
745 (A) in a form including:
746 (I) cash;
747 (II) term; or
748 (III) coupon;
749 (B) that is allowed by a seller;
750 (C) taken by a purchaser on a sale; and
751 (D) that is not reimbursed by a third party; or
752 (ii) the following if separately stated on an invoice, bill of sale, or similar document
753 provided to the purchaser:
754 (A) the amount of a trade-in;
755 (B) the following from credit extended on the sale of tangible personal property or
756 services:
757 (I) interest charges;
758 (II) financing charges; or
759 (III) carrying charges;
760 (C) a tax or fee legally imposed directly on the consumer;
761 (D) a delivery charge; or
762 (E) an installation charge.
763 [(68)] (69) "Purchaser" means a person to whom:
764 (a) a sale of tangible personal property is made; or
765 (b) a service is furnished.
766 [(69)] (70) "Regularly rented" means:
767 (a) rented to a guest for value three or more times during a calendar year; or
768 (b) advertised or held out to the public as a place that is regularly rented to guests for
769 value.
770 [(70)] (71) "Renewable energy" means:
771 (a) biomass energy;

772 (b) hydroelectric energy;
773 (c) geothermal energy;
774 (d) solar energy; or
775 (e) wind energy.
776 [(71)] (72) (a) "Renewable energy production facility" means a facility that:
777 (i) uses renewable energy to produce electricity; and
778 (ii) has a production capacity of 20 kilowatts or greater.
779 (b) A facility is a renewable energy production facility regardless of whether the
780 facility is:
781 (i) connected to an electric grid; or
782 (ii) located on the premises of an electricity consumer.
783 [(72)] (73) "Rental" is as defined in Subsection [(40)] (41).
784 [(73)] (74) "Repairs or renovations of tangible personal property" means:
785 (a) a repair or renovation of tangible personal property that is not permanently attached
786 to real property; or
787 (b) attaching tangible personal property to other tangible personal property if the other
788 tangible personal property to which the tangible personal property is attached is not
789 permanently attached to real property.
790 [(74)] (75) "Research and development" means the process of inquiry or
791 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
792 process of preparing those devices, technologies, or applications for marketing.
793 [(75)] (76) "Residential use" means the use in or around a home, apartment building,
794 sleeping quarters, and similar facilities or accommodations.
795 [(76)] (77) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
796 other than:
797 (a) resale;
798 (b) sublease; or
799 (c) subrent.
800 [(77)] (78) (a) "Retailer" means any person engaged in a regularly organized business
801 in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
802 and who is selling to the user or consumer and not for resale.

803 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
804 engaged in the business of selling to users or consumers within the state.
805 [(78)] (79) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
806 otherwise, in any manner, of tangible personal property or any other taxable transaction under
807 Subsection 59-12-103 (1), for consideration.
808 (b) "Sale" includes:
809 (i) installment and credit sales;
810 (ii) any closed transaction constituting a sale;
811 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
812 chapter;
813 (iv) any transaction if the possession of property is transferred but the seller retains the
814 title as security for the payment of the price; and
815 (v) any transaction under which right to possession, operation, or use of any article of
816 tangible personal property is granted under a lease or contract and the transfer of possession
817 would be taxable if an outright sale were made.
818 [(79)] (80) "Sale at retail" is as defined in Subsection [(76)] (77).
819 [(80)] (81) "Sale-leaseback transaction" means a transaction by which title to tangible
820 personal property that is subject to a tax under this chapter is transferred:
821 (a) by a purchaser-lessee;
822 (b) to a lessor;
823 (c) for consideration; and
824 (d) if:
825 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
826 of the tangible personal property;
827 (ii) the sale of the tangible personal property to the lessor is intended as a form of
828 financing:
829 (A) for the property; and
830 (B) to the purchaser-lessee; and
831 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
832 is required to:
833 (A) capitalize the property for financial reporting purposes; and

834 (B) account for the lease payments as payments made under a financing arrangement.
835 [(81)] (82) "Sales price" is as defined in Subsection [(67)] (68).
836 [(82)] (83) (a) "Sales relating to schools" means the following sales by, amounts paid
837 to, or amounts charged by a school:
838 (i) sales that are directly related to the school's educational functions or activities
839 including:
840 (A) the sale of:
841 (I) textbooks;
842 (II) textbook fees;
843 (III) laboratory fees;
844 (IV) laboratory supplies; or
845 (V) safety equipment;
846 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
847 that:
848 (I) a student is specifically required to wear as a condition of participation in a
849 school-related event or school-related activity; and
850 (II) is not readily adaptable to general or continued usage to the extent that it takes the
851 place of ordinary clothing;
852 (C) sales of the following if the net or gross revenues generated by the sales are
853 deposited into a school district fund or school fund dedicated to school meals:
854 (I) food and food ingredients; or
855 (II) prepared food; or
856 (D) transportation charges for official school activities; or
857 (ii) amounts paid to or amounts charged by a school for admission to a school-related
858 event or school-related activity.
859 (b) "Sales relating to schools" does not include:
860 (i) bookstore sales of items that are not educational materials or supplies;
861 (ii) except as provided in Subsection [(82)] (83)(a)(i)(B):
862 (A) clothing;
863 (B) clothing accessories or equipment;
864 (C) protective equipment; or

865 (D) sports or recreational equipment; or
866 (iii) amounts paid to or amounts charged by a school for admission to a school-related
867 event or school-related activity if the amounts paid or charged are passed through to a person:
868 (A) other than a:
869 (I) school;
870 (II) nonprofit organization authorized by a school board or a governing body of a
871 private school to organize and direct a competitive secondary school activity; or
872 (III) nonprofit association authorized by a school board or a governing body of a
873 private school to organize and direct a competitive secondary school activity; and
874 (B) that is required to collect sales and use taxes under this chapter.
875 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
876 commission may make rules defining the term "passed through."
877 [(83)] (84) For purposes of this section and Section 59-12-104 , "school" means:
878 (a) an elementary school or a secondary school that:
879 (i) is a:
880 (A) public school; or
881 (B) private school; and
882 (ii) provides instruction for one or more grades kindergarten through 12; or
883 (b) a public school district.
884 [(84)] (85) "Seller" means a person that makes a sale, lease, or rental of:
885 (a) tangible personal property; or
886 (b) a service.
887 [(85)] (86) (a) "Semiconductor fabricating, processing, research, or development
888 materials" means tangible personal property:
889 (i) used primarily in the process of:
890 (A) (I) manufacturing a semiconductor;
891 (II) fabricating a semiconductor; or
892 (III) research or development of a:
893 (Aa) semiconductor; or
894 (Bb) semiconductor manufacturing process; or
895 (B) maintaining an environment suitable for a semiconductor; or

896 (ii) consumed primarily in the process of:
897 (A) (I) manufacturing a semiconductor;
898 (II) fabricating a semiconductor; or
899 (III) research or development of a:
900 (Aa) semiconductor; or
901 (Bb) semiconductor manufacturing process; or
902 (B) maintaining an environment suitable for a semiconductor.
903 (b) "Semiconductor fabricating, processing, research, or development materials"
904 includes:
905 (i) parts used in the repairs or renovations of tangible personal property described in
906 Subsection [(85)] (86)(a); or
907 (ii) a chemical, catalyst, or other material used to:
908 (A) produce or induce in a semiconductor a:
909 (I) chemical change; or
910 (II) physical change;
911 (B) remove impurities from a semiconductor; or
912 (C) improve the marketable condition of a semiconductor.
913 [(86)] (87) "Senior citizen center" means a facility having the primary purpose of
914 providing services to the aged as defined in Section 62A-3-101 .
915 [(87)] (88) "Simplified electronic return" means the electronic return:
916 (a) described in Section 318(C) of the agreement; and
917 (b) approved by the governing board of the agreement.
918 [(88)] (89) "Solar energy" means the sun used as the sole source of energy for
919 producing electricity.
920 [(89)] (90) (a) "Sports or recreational equipment" means an item:
921 (i) designed for human use; and
922 (ii) that is:
923 (A) worn in conjunction with:
924 (I) an athletic activity; or
925 (II) a recreational activity; and
926 (B) not suitable for general use.

927 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
928 commission shall make rules:
929 (i) listing the items that constitute "sports or recreational equipment"; and
930 (ii) that are consistent with the list of items that constitute "sports or recreational
931 equipment" under the agreement.
932 [(90)] (91) "State" means the state of Utah, its departments, and agencies.
933 [(91)] (92) "Storage" means any keeping or retention of tangible personal property or
934 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
935 except sale in the regular course of business.
936 [(92)] (93) (a) "Tangible personal property" means personal property that:
937 (i) may be:
938 (A) seen;
939 (B) weighed;
940 (C) measured;
941 (D) felt; or
942 (E) touched; or
943 (ii) is in any manner perceptible to the senses.
944 (b) "Tangible personal property" includes:
945 (i) electricity;
946 (ii) water;
947 (iii) gas;
948 (iv) steam; or
949 (v) prewritten computer software.
950 [(93)] (94) "Tar sands" means impregnated sands that yield mixtures of liquid
951 hydrocarbon and require further processing other than mechanical blending before becoming
952 finished petroleum products.
953 [(94)] (95) (a) "Telecommunications enabling or facilitating equipment, machinery, or
954 software" means an item listed in Subsection [(94)] (95)(b) if that item is purchased or leased
955 primarily to enable or facilitate one or more of the following to function:
956 (i) telecommunications switching or routing equipment, machinery, or software; or
957 (ii) telecommunications transmission equipment, machinery, or software.

958 (b) The following apply to Subsection [(94)] (95)(a):
959 (i) a pole;
960 (ii) software;
961 (iii) a supplementary power supply;
962 (iv) temperature or environmental equipment or machinery;
963 (v) test equipment;
964 (vi) a tower; or
965 (vii) equipment, machinery, or software that functions similarly to an item listed in
966 Subsections [(94)] (95)(b)(i) through (vi) as determined by the commission by rule made in
967 accordance with Subsection [(94)] (95)(c).
968 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
969 commission may by rule define what constitutes equipment, machinery, or software that
970 functions similarly to an item listed in Subsections [(94)] (95)(b)(i) through (vi).
971 [(95)] (96) "Telecommunications equipment, machinery, or software required for 911
972 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
973 Sec. 20.18.
974 [(96)] (97) "Telecommunications maintenance or repair equipment, machinery, or
975 software" means equipment, machinery, or software purchased or leased primarily to maintain
976 or repair one or more of the following, regardless of whether the equipment, machinery, or
977 software is purchased or leased as a spare part or as an upgrade or modification to one or more
978 of the following:
979 (a) telecommunications enabling or facilitating equipment, machinery, or software;
980 (b) telecommunications switching or routing equipment, machinery, or software; or
981 (c) telecommunications transmission equipment, machinery, or software.
982 [(97)] (98) (a) "Telecommunications switching or routing equipment, machinery, or
983 software" means an item listed in Subsection [(97)] (98)(b) if that item is purchased or leased
984 primarily for switching or routing:
985 (i) voice communications;
986 (ii) data communications; or
987 (iii) telephone service.
988 (b) The following apply to Subsection [(97)] (98)(a):

989 (i) a bridge;
990 (ii) a computer;
991 (iii) a cross connect;
992 (iv) a modem;
993 (v) a multiplexer;
994 (vi) plug in circuitry;
995 (vii) a router;
996 (viii) software;
997 (ix) a switch; or
998 (x) equipment, machinery, or software that functions similarly to an item listed in
999 Subsections [(97)] (98)(b)(i) through (ix) as determined by the commission by rule made in
1000 accordance with Subsection [(97)] (98)(c).
1001 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1002 commission may by rule define what constitutes equipment, machinery, or software that
1003 functions similarly to an item listed in Subsections [(97)] (98)(b)(i) through (ix).
1004 [(98)] (99) (a) "Telecommunications transmission equipment, machinery, or software"
1005 means an item listed in Subsection [(98)] (99)(b) if that item is purchased or leased primarily
1006 for sending, receiving, or transporting:
1007 (i) voice communications;
1008 (ii) data communications; or
1009 (iii) telephone service.
1010 (b) The following apply to Subsection [(98)] (99)(a):
1011 (i) an amplifier;
1012 (ii) a cable;
1013 (iii) a closure;
1014 (iv) a conduit;
1015 (v) a controller;
1016 (vi) a duplexer;
1017 (vii) a filter;
1018 (viii) an input device;
1019 (ix) an input/output device;

1020 (x) an insulator;
1021 (xi) microwave machinery or equipment;
1022 (xii) an oscillator;
1023 (xiii) an output device;
1024 (xiv) a pedestal;
1025 (xv) a power converter;
1026 (xvi) a power supply;
1027 (xvii) a radio channel;
1028 (xviii) a radio receiver;
1029 (xix) a radio transmitter;
1030 (xx) a repeater;
1031 (xxi) software;
1032 (xxii) a terminal;
1033 (xxiii) a timing unit;
1034 (xxiv) a transformer;
1035 (xxv) a wire; or
1036 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1037 Subsections [(98)] (99)(b)(i) through (xxv) as determined by the commission by rule made in
1038 accordance with Subsection [(98)] (99)(c).
1039 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1040 commission may by rule define what constitutes equipment, machinery, or software that
1041 functions similarly to an item listed in Subsections [(98)] (99)(b)(i) through (xxv).
1042 [(99)] (100) (a) "Telephone service" means a two-way transmission:
1043 (i) by:
1044 (A) wire;
1045 (B) radio;
1046 (C) lightwave; or
1047 (D) other electromagnetic means; and
1048 (ii) of one or more of the following:
1049 (A) a sign;
1050 (B) a signal;

1051 (C) writing;
1052 (D) an image;
1053 (E) sound;
1054 (F) a message;
1055 (G) data; or
1056 (H) other information of any nature.
1057 (b) "Telephone service" includes:
1058 (i) mobile telecommunications service;
1059 (ii) private communications service; or
1060 (iii) automated digital telephone answering service.
1061 (c) "Telephone service" does not include a service or a transaction that a state or a
1062 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1063 Tax Freedom Act, Pub. L. No. 105-277.
1064 [(100)] (101) Notwithstanding where a call is billed or paid, "telephone service
1065 address" means:
1066 (a) if the location described in this Subsection [(100)] (101)(a) is known, the location
1067 of the telephone service equipment:
1068 (i) to which a call is charged; and
1069 (ii) from which the call originates or terminates;
1070 (b) if the location described in Subsection [(100)] (101)(a) is not known but the
1071 location described in this Subsection [(100)] (101)(b) is known, the location of the origination
1072 point of the signal of the telephone service first identified by:
1073 (i) the telecommunications system of the seller; or
1074 (ii) if the system used to transport the signal is not that of the seller, information
1075 received by the seller from its service provider; or
1076 (c) if the locations described in Subsection [(100)] (101)(a) or (b) are not known, the
1077 location of a purchaser's primary place of use.
1078 [(101)] (102) (a) "Telephone service provider" means a person that:
1079 (i) owns, controls, operates, or manages a telephone service; and
1080 (ii) engages in an activity described in Subsection [(101)] (102)(a)(i) for the shared use
1081 with or resale to any person of the telephone service.

1082 (b) A person described in Subsection [(101)] (102)(a) is a telephone service provider
1083 whether or not the Public Service Commission of Utah regulates:
1084 (i) that person; or
1085 (ii) the telephone service that the person owns, controls, operates, or manages.
1086 [(102)] (103) "Tobacco" means:
1087 (a) a cigarette;
1088 (b) a cigar;
1089 (c) chewing tobacco;
1090 (d) pipe tobacco; or
1091 (e) any other item that contains tobacco.
1092 [(103)] (104) "Unassisted amusement device" means an amusement device, skill
1093 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1094 operate the amusement device, skill device, or ride device.
1095 [(104)] (105) (a) "Use" means the exercise of any right or power over tangible personal
1096 property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
1097 property, item, or service.
1098 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
1099 the regular course of business and held for resale.
1100 [(105)] (106) (a) Subject to Subsection [(105)] (106)(b), "vehicle" means the following
1101 that are required to be titled, registered, or titled and registered:
1102 (i) an aircraft as defined in Section 72-10-102 ;
1103 (ii) a vehicle as defined in Section 41-1a-102 ;
1104 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1105 (iv) a vessel as defined in Section 41-1a-102 .
1106 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1107 (i) a vehicle described in Subsection [(105)] (106)(a); or
1108 (ii) (A) a locomotive;
1109 (B) a freight car;
1110 (C) railroad work equipment; or
1111 (D) other railroad rolling stock.
1112 [(106)] (107) "Vehicle dealer" means a person engaged in the business of buying,

1113 selling, or exchanging a vehicle as defined in Subsection [(105)] (106).
1114 [(107)] (108) (a) Except as provided in Subsection [(107)] (108)(b), "waste energy
1115 facility" means a facility that generates electricity:
1116 (i) using as the primary source of energy waste materials that would be placed in a
1117 landfill or refuse pit if it were not used to generate electricity, including:
1118 (A) tires;
1119 (B) waste coal; or
1120 (C) oil shale; and
1121 (ii) in amounts greater than actually required for the operation of the facility.
1122 (b) "Waste energy facility" does not include a facility that incinerates:
1123 (i) municipal solid waste;
1124 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1125 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1126 [(108)] (109) "Watercraft" means a vessel as defined in Section 73-18-2 .
1127 [(109)] (110) "Wind energy" means wind used as the sole source of energy to produce
1128 electricity.
1129 [(110)] (111) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
1130 geographic location by the United States Postal Service.
1131 Section 3. Section 59-12-1701 is enacted to read:
1132 Part 17. County Option Sales and Use Tax for Transportation Act
1133 59-12-1701. Title.
1134 This part is known as the "County Option Sales and Use Tax for Transportation Act."
1135 Section 4. Section 59-12-1702 is enacted to read:
1136 59-12-1702. Definitions.
1137 As used in this part:
1138 (1) "Annexation" means an annexation to a county under Title 17, Chapter 2,
1139 Annexation to County.
1140 (2) "Annexing area" means an area that is annexed into a county.
1141 (3) "Council of governments" is as defined in Subsection 72-2-117.5 (1)(a).
1142 (4) "Fixed guideway" means a public transit facility that uses and occupies:
1143 (a) rail for the use of public transit; or

1144