H.B. 206 Enrolled

1

TAX AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 Senate Sponsor: Curtis S. Bramble
6
7 LONG TITLE
8 General Description:
9 This bill amends the Sales and Use Tax Act and related provisions.
10 Highlighted Provisions:
11 This bill:
12 . addresses definitions;
13 . addresses the administration, collection, and enforcement of taxes, fees, or charges
14 administered by the State Tax Commission;
15 . addresses the State Tax Commission authority to provide information contained in a
16 return, report, related schedule, or other document to the governing board of the
17 Streamlined Sales and Use Tax Agreement or certain other taxing officials;
18 . authorizes the state to become a party to the Streamlined Sales and Use Tax
19 Agreement and addresses the authority of the State Tax Commission relating to the
20 state becoming a party to the Streamlined Sales and Use Tax Agreement;
21 . addresses the appointment of delegates to the governing board of the Streamlined
22 Sales and Use Tax Agreement;
23 . addresses transactions that are subject to state and local sales and use taxation;
24 . addresses tax rates that apply to specified transactions;
25 . addresses the enactment, repeal, or change in the rate of state and local sales and use
26 taxes;
27 . repeals the distribution of certain local taxes collected by a remote seller to counties,
28 cities, and towns;
29 . repeals the requirement to deposit certain state sales and use tax revenues into the

30 Remote Sales Restricted Account;
31 . addresses state and local sales and use tax exemptions;
32 . addresses the Utah Tax Review Commission's requirement to study the state's sales
33 and use tax system;
34 . addresses provisions relating to an exemption certificate;
35 . addresses the collection and remittance of sales and use taxes by a seller that is
36 registered under the Streamlined Sales and Use Tax Agreement;
37 . addresses provisions relating to a direct payment permit;
38 . addresses the collection, remittance, and payment of taxes on direct mail;
39 . addresses certified service provider liability relating to state and local sales and use
40 taxes;
41 . addresses seller or certified service provider reliance on State Tax Commission
42 information or certain systems with respect to state and local sales and use taxes;
43 . addresses certified service provider or model 2 seller reliance on State Tax
44 Commission certified software with respect to state and local sales and use taxes;
45 . addresses a purchaser's relief from liability for a tax, penalty, or interest;
46 . addresses return filing requirements;
47 . addresses seller discounts;
48 . addresses overpayments of sales and use taxes;
49 . addresses amnesty for a seller;
50 . addresses a monetary allowance under the Streamlined Sales and Use Tax
51 Agreement;
52 . addresses the sourcing of sales and use transactions;
53 . addresses provisions relating to funding for 911 emergency telecommunications
54 service;
55 . addresses provisions relating to the emergency services telecommunications charge
56 to fund the Poison Control Center;
57 . addresses provisions relating to the emergency services telecommunications charge

58 to fund the statewide unified E-911 service;
59 . grants rulemaking authority to the State Tax Commission; and
60 . makes technical changes.
61 Monies Appropriated in this Bill:
62 None
63 Other Special Clauses:
64 This bill takes effect on January 1, 2009.
65 Utah Code Sections Affected:
66 AMENDS:
67 10-1-307, as last amended by Laws of Utah 2006, Chapters 253 and 352
68 10-1-402, as enacted by Laws of Utah 2003, Chapter 253
69 10-1-405, as last amended by Laws of Utah 2007, Chapters 9 and 250
70 10-1-407, as last amended by Laws of Utah 2004, Chapter 255
71 11-41-102, as last amended by Laws of Utah 2007, Chapter 9
72 53-10-605, as last amended by Laws of Utah 2007, Chapters 241 and 329
73 59-1-403, as last amended by Laws of Utah 2007, Chapter 250
74 59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
75 59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
76 59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
77 295, and 329
78 59-12-104.5, as last amended by Laws of Utah 2006, Chapters 182 and 346
79 59-12-105, as last amended by Laws of Utah 2006, Chapters 181, 182, and 253
80 59-12-106, as last amended by Laws of Utah 2006, Chapter 322
81 59-12-107, as last amended by Laws of Utah 2006, Chapter 253
82 59-12-107.1, as last amended by Laws of Utah 2006, Chapter 253
83 59-12-108, as last amended by Laws of Utah 2007, Chapter 9
84 59-12-110, as last amended by Laws of Utah 2006, Chapter 253
85 59-12-110.1, as last amended by Laws of Utah 2006, Chapter 253

86 59-12-205, as last amended by Laws of Utah 2007, Chapter 228
87 59-12-208.1, as last amended by Laws of Utah 2004, Chapter 255
88 59-12-210, as last amended by Laws of Utah 2006, Chapter 253
89 59-12-302, as last amended by Laws of Utah 2006, Chapter 253
90 59-12-354, as last amended by Laws of Utah 2006, Chapter 253
91 59-12-401, as last amended by Laws of Utah 2007, Chapter 288
92 59-12-402, as last amended by Laws of Utah 2007, Chapter 288
93 59-12-403, as last amended by Laws of Utah 2007, Chapter 288
94 59-12-501, as last amended by Laws of Utah 2007, Chapters 202, 288, and 329
95 59-12-502, as last amended by Laws of Utah 2007, Chapters 201, 202, 288, and 329
96 59-12-504, as last amended by Laws of Utah 2007, Chapter 288
97 59-12-603, as last amended by Laws of Utah 2007, Chapters 3, 9, and 219
98 59-12-703, as last amended by Laws of Utah 2007, Chapter 288
99 59-12-802, as last amended by Laws of Utah 2007, Chapter 288
100 59-12-804, as last amended by Laws of Utah 2007, Chapter 288
101 59-12-806, as last amended by Laws of Utah 2004, Chapter 255
102 59-12-1001, as last amended by Laws of Utah 2007, Chapters 288 and 329
103 59-12-1002, as last amended by Laws of Utah 2006, Chapter 253
104 59-12-1102, as last amended by Laws of Utah 2006, Chapter 253
105 59-12-1201, as last amended by Laws of Utah 2006, Chapters 135 and 253
106 59-12-1302, as last amended by Laws of Utah 2007, Chapter 288
107 59-12-1402, as last amended by Laws of Utah 2007, Chapter 288
108 59-12-1503, as last amended by Laws of Utah 2007, Chapters 10, 202, 288, and 329
109 59-12-1703, as last amended by Laws of Utah 2007, Chapters 201, 288, and 329
110 59-12-1802, as enacted by Laws of Utah 2007, Chapter 288
111 59-12-1803, as enacted by Laws of Utah 2007, Chapter 288
112 63-55-269, as enacted by Laws of Utah 2004, Chapter 313
113 69-2-5, as last amended by Laws of Utah 2007, Chapter 241

114 69-2-5.5, as last amended by Laws of Utah 2003, Chapter 253
115 69-2-5.6, as last amended by Laws of Utah 2007, Chapter 241
116 72-2-125, as enacted by Laws of Utah 2007, Chapter 206
117 ENACTS:
118 59-12-102.3, Utah Code Annotated 1953
119 59-12-123, Utah Code Annotated 1953
120 59-12-124, Utah Code Annotated 1953
121 59-12-125, Utah Code Annotated 1953
122 59-12-126, Utah Code Annotated 1953
123 59-12-127, Utah Code Annotated 1953
124 59-12-128, Utah Code Annotated 1953
125 59-12-129, Utah Code Annotated 1953
126 59-12-211, Utah Code Annotated 1953
127 59-12-212, Utah Code Annotated 1953
128 59-12-213, Utah Code Annotated 1953
129 59-12-214, Utah Code Annotated 1953
130 59-12-216, Utah Code Annotated 1953
131 59-12-217, Utah Code Annotated 1953
132 59-12-218, Utah Code Annotated 1953
133 59-12-304, Utah Code Annotated 1953
134 59-12-305, Utah Code Annotated 1953
135 59-12-306, Utah Code Annotated 1953
136 59-12-357, Utah Code Annotated 1953
137 59-12-358, Utah Code Annotated 1953
138 59-12-359, Utah Code Annotated 1953
139 59-12-406, Utah Code Annotated 1953
140 59-12-407, Utah Code Annotated 1953
141 59-12-408, Utah Code Annotated 1953

142 59-12-506, Utah Code Annotated 1953
143 59-12-507, Utah Code Annotated 1953
144 59-12-508, Utah Code Annotated 1953
145 59-12-605, Utah Code Annotated 1953
146 59-12-606, Utah Code Annotated 1953
147 59-12-607, Utah Code Annotated 1953
148 59-12-707, Utah Code Annotated 1953
149 59-12-708, Utah Code Annotated 1953
150 59-12-709, Utah Code Annotated 1953
151 59-12-808, Utah Code Annotated 1953
152 59-12-809, Utah Code Annotated 1953
153 59-12-810, Utah Code Annotated 1953
154 59-12-1004, Utah Code Annotated 1953
155 59-12-1005, Utah Code Annotated 1953
156 59-12-1006, Utah Code Annotated 1953
157 59-12-1104, Utah Code Annotated 1953
158 59-12-1105, Utah Code Annotated 1953
159 59-12-1106, Utah Code Annotated 1953
160 59-12-1202, Utah Code Annotated 1953
161 59-12-1203, Utah Code Annotated 1953
162 59-12-1204, Utah Code Annotated 1953
163 59-12-1304, Utah Code Annotated 1953
164 59-12-1305, Utah Code Annotated 1953
165 59-12-1306, Utah Code Annotated 1953
166 59-12-1405, Utah Code Annotated 1953
167 59-12-1406, Utah Code Annotated 1953
168 59-12-1407, Utah Code Annotated 1953
169 59-12-1505, Utah Code Annotated 1953

170 59-12-1506, Utah Code Annotated 1953
171 59-12-1507, Utah Code Annotated 1953
172 59-12-1706, Utah Code Annotated 1953
173 59-12-1707, Utah Code Annotated 1953
174 59-12-1708, Utah Code Annotated 1953
175 59-12-1804, Utah Code Annotated 1953
176 59-12-1805, Utah Code Annotated 1953
177 59-12-1806, Utah Code Annotated 1953
178 RENUMBERS AND AMENDS:
179 59-12-215, (Renumbered from 59-12-207.4, as last amended by Laws of Utah 2006,
180 Chapter 253)
181 REPEALS:
182 59-12-102.2, as enacted by Laws of Utah 2006, Chapter 253
183 59-12-207, as last amended by Laws of Utah 2006, Chapter 253
184
185 Be it enacted by the Legislature of the state of Utah:
186 Section 1. Section 10-1-307 is amended to read:
187 10-1-307. Collection of taxes by commission -- Distribution of revenues -- Charge
188 for services -- Collection of taxes by municipality.
189 (1) Except [for the direct payment provisions] as provided in Subsection (3), the
190 commission shall collect, enforce, and administer the municipal energy sales and use tax from
191 energy suppliers according to the procedures established in Title 59, Chapter 12, Part 1, Tax
192 Collection, except for [Section] Sections 59-12-107.1 and 59-12-123 .
193 (2) (a) Except as provided in Subsections 10-1-203 (3)(d), 10-1-305 (5), and
194 10-1-310 (2) and subject to Subsection (6), the commission shall pay a municipality the
195 difference between:
196 (i) the entire amount collected by the commission from the municipal energy sales and
197 use tax authorized by this part based on:

198 (A) the point of sale of the taxable energy if a taxable sale occurs in a municipality that
199 imposes a municipal energy sales and use tax as provided in this part; or
200 (B) the point of use of the taxable energy if the use occurs in a municipality that
201 imposes a municipal energy sales and use tax as provided in this part; and
202 (ii) the administration fee charged in accordance with Subsection (2)(c).
203 (b) In accordance with Subsection (2)(a), the commission shall transfer to the
204 municipality monthly by electronic transfer the revenues generated by the municipal energy sales
205 and use tax levied by the municipality and collected by the commission.
206 (c) (i) The commission shall charge a municipality imposing a municipal energy sales
207 and use tax a fee for administering the tax at the percentage provided in Section 59-12-206 ,
208 except that the commission may not charge a fee for taxes collected by a municipality under
209 Subsection (3).
210 (ii) The fee charged under Subsection (2)(c)(i) shall be:
211 (A) deposited in the Sales and Use Tax Administrative Fees Account; and
212 (B) used for sales tax administration as provided in Subsection 59-12-206 (2).
213 (3) An energy supplier shall pay the municipal energy sales and use tax revenues it
214 collects from its customers under this part directly to each municipality in which the energy
215 supplier has sales of taxable energy if:
216 (a) the municipality is the energy supplier; or
217 (b) (i) the energy supplier estimates that the municipal energy sales and use tax
218 collected annually by the energy supplier from its Utah customers equals $1,000,000 or more;
219 and
220 (ii) the energy supplier collects the tax imposed by this part.
221 (4) An energy supplier paying a tax under this part directly to a municipality may retain
222 the percentage of the tax authorized under Subsection 59-12-108 (2) for the energy supplier's
223 costs of collecting and remitting the tax.
224 (5) An energy supplier paying the tax under this part directly to a municipality shall file
225 an information return with the commission, at least annually, on a form prescribed by the

226 commission.
227 (6) (a) As used in this Subsection (6):
228 (i) "2005 base amount" means, for a municipality that imposes a municipal energy sales
229 and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to the
230 municipality for fiscal year 2005.
231 (ii) "2006 base amount" means, for a municipality that imposes a municipal energy sales
232 and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to the
233 municipality for fiscal year 2006, reduced by the 2006 rebate amount.
234 (iii) "2006 rebate amount" means, for a municipality that imposes a municipal energy
235 sales and use tax, the difference between:
236 (A) the natural gas portion of municipal energy sales and use tax proceeds paid to the
237 municipality for fiscal year 2006; and
238 (B) the 2005 base amount, plus:
239 (I) 10% of the 2005 base amount; and
240 (II) the natural gas portion of municipal energy sales and use tax proceeds paid to the
241 municipality for fiscal year 2006 attributable to an increase in the rate of the municipal energy
242 sales and use tax implemented by the municipality during fiscal year 2006.
243 (iv) "2007 rebate amount" means, for a municipality that imposes a municipal energy
244 sales and use tax, the difference between:
245 (A) the natural gas portion of municipal energy sales and use tax proceeds paid to the
246 municipality for fiscal year 2007; and
247 (B) the 2006 base amount, plus:
248 (I) 10% of the 2006 base amount; and
249 (II) the natural gas portion of municipal energy sales and use tax proceeds paid to the
250 municipality for fiscal year 2007 attributable to an increase in the rate of the municipal energy
251 sales and use tax implemented by the municipality during fiscal year 2007.
252 (v) "Fiscal year 2005" means the period beginning July 1, 2004 and ending June 30,
253 2005.

254 (vi) "Fiscal year 2006" means the period beginning July 1, 2005 and ending June 30,
255 2006.
256 (vii) "Fiscal year 2007" means the period beginning July 1, 2006 and ending June 30,
257 2007.
258 (viii) "Gas supplier" means an energy supplier that supplies natural gas.
259 (ix) "Natural gas portion" means the amount of municipal energy sales and use tax
260 proceeds attributable to sales and uses of natural gas.
261 (b) (i) In December 2006, each gas supplier shall reduce the natural gas portion of
262 municipal energy sales and use gas proceeds to be paid to a municipality by the 2006 rebate
263 amount.
264 (ii) If the 2006 rebate amount exceeds the amount of the natural gas portion of
265 municipal energy sales and use tax proceeds for December 2006, the gas supplier shall reduce
266 the natural gas portion of municipal energy sales and use tax proceeds to be paid to a
267 municipality each month thereafter until the 2006 rebate amount is exhausted.
268 (iii) For December 2006 and for each month thereafter that the gas supplier is required
269 under Subsection (6)(b)(ii) to reduce the natural gas portion of municipal energy sales and use
270 tax proceeds to be paid to a municipality:
271 (A) each municipality imposing a municipal energy sales and use tax shall provide the
272 gas supplier with the amount by which its municipal energy sales and use tax rate applicable to
273 the sales and uses of natural gas would need to be reduced in order to reduce the natural gas
274 portion of municipal energy sales and use tax proceeds by the same amount as the reduction to
275 the municipality; and
276 (B) each gas supplier shall reduce the municipal energy sales and use tax rate applicable
277 to sales and uses of natural gas by the amount of the tax rate reduction provided by the
278 municipality.
279 (c) (i) In December 2007, each gas supplier shall reduce the natural gas portion of
280 municipal energy sales and use tax proceeds to be paid to a municipality by the 2007 rebate
281 amount.

282 (ii) If the 2007 rebate amount exceeds the amount of the natural gas portion of
283 municipal energy sales and use tax proceeds for December 2007, the gas supplier shall reduce
284 the natural gas portion of municipal energy sales and use tax proceeds to be paid to a
285 municipality each month thereafter until the 2007 rebate amount is exhausted.
286 (iii) For December 2007 and for each month thereafter that the gas supplier is required
287 under Subsection (6)(c)(ii) to reduce the natural gas portion of municipal energy sales and use
288 tax proceeds to be paid to a municipality:
289 (A) each municipality imposing a municipal energy sales and use tax shall provide the
290 gas supplier with the amount by which its municipal energy sales and use tax rate applicable to
291 the sales and uses of natural gas would need to be reduced in order to reduce the natural gas
292 portion of municipal energy sales and use tax proceeds by the same amount as the reduction to
293 the municipality; and
294 (B) each gas supplier shall reduce the municipal energy sales and use tax rate applicable
295 to sales and uses of natural gas by the amount of the tax rate reduction provided by the
296 municipality.
297 (d) Nothing in this Subsection (6) may be construed to require a reduction under
298 Subsection (6)(b) or (c) if the rebate amount is zero or negative.
299 Section 2. Section 10-1-402 is amended to read:
300 10-1-402. Definitions.
301 As used in this part:
302 (1) "Commission" means the State Tax Commission.
303 (2) (a) Subject to Subsections (2)(b) and (c), "customer" means the person who is
304 obligated under a contract with a telecommunications provider to pay for telecommunications
305 service received under the contract.
306 (b) For purposes of this section and Section 10-1-407 , "customer" means:
307 (i) the person who is obligated under a contract with a telecommunications provider to
308 pay for telecommunications service received under the contract; or
309 (ii) if the end user is not the person described in Subsection (2)(b)(i), the end user of

310 telecommunications service.
311 (c) "Customer" does not include a reseller:
312 (i) of telecommunications service; or
313 (ii) for mobile telecommunications service, of a serving carrier under an agreement to
314 serve the customer outside the telecommunications provider's licensed service area.
315 (3) (a) "End user" means the person who uses a telecommunications service.
316 (b) For purposes of telecommunications service provided to a person who is not an
317 individual, "end user" means the individual who uses the telecommunications service on behalf
318 of the person who is provided the telecommunications service.
319 (4) (a) "Gross receipts from telecommunications service" means the revenue that a
320 telecommunications provider receives for telecommunications service rendered except for
321 amounts collected or paid as:
322 [(a)] (i) a tax, fee, or charge:
323 [(i)] (A) imposed by a governmental entity;
324 [(ii)] (B) separately identified as a tax, fee, or charge in the transaction with the
325 customer for the telecommunications service; and
326 [(iii)] (C) imposed only on a telecommunications provider;
327 [(b)] (ii) sales and use taxes collected by the telecommunications provider from a
328 customer under Title 59, Chapter 12, Sales and Use Tax Act; or
329 [(c)] (iii) interest, a fee, or a charge that is charged by a telecommunications provider
330 on a customer for failure to pay for telecommunications service when payment is due.
331 (b) "Gross receipts from telecommunications service" includes a charge necessary to
332 complete a sale of a telecommunications service.
333 (5) "Mobile telecommunications service" is as defined in the Mobile
334 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
335 (6) "Municipality" means a city or town.
336 (7) "Place of primary use":
337 (a) for telecommunications service other than mobile telecommunications service,

338 means the street address representative of where the customer's use of the telecommunications
339 service primarily occurs, which shall be:
340 (i) the residential street address of the customer; or
341 (ii) the primary business street address of the customer; or
342 (b) for mobile telecommunications service, is as defined in the Mobile
343 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
344 (8) Notwithstanding where a call is billed or paid, "service address" means:
345 (a) if the location described in this Subsection (8)(a) is known, the location of the
346 telecommunications equipment:
347 (i) to which a call is charged; and
348 (ii) from which the call originates or terminates;
349 (b) if the location described in Subsection (8)(a) is not known but the location described
350 in this Subsection (8)(b) is known, the location of the origination point of the signal of the
351 telecommunications service first identified by:
352 (i) the telecommunications system of the telecommunications provider; or
353 (ii) if the system used to transport the signal is not a system of the telecommunications
354 provider, information received by the telecommunications provider from its service provider; or
355 (c) if the locations described in Subsection (8)(a) or (b) are not known, the location of a
356 customer's place of primary use.
357 (9) (a) Subject to Subsections (9)(b) and (9)(c), "telecommunications provider" means a
358 person that:
359 (i) owns, controls, operates, or manages a telecommunications service; or
360 (ii) engages in an activity described in Subsection (9)(a)(i) for the shared use with or
361 resale to any person of the telecommunications service.
362 (b) A person described in Subsection (9)(a) is a telecommunications provider whether
363 or not the Public Service Commission of Utah regulates:
364 (i) that person; or
365 (ii) the telecommunications service that the person owns, controls, operates, or

366 manages.
367 (c) "Telecommunications provider" does not include an aggregator as defined in
368 Section 54-8b-2 .
369 (10) "Telecommunications service" means:
370 (a) [telephone] telecommunications service, as defined in Section 59-12-102 , other than
371 mobile telecommunications service, that originates and terminates within the boundaries of this
372 state; [and]
373 (b) mobile telecommunications service, as defined in Section 59-12-102 :
374 (i) that originates and terminates within the boundaries of one state; and
375 (ii) only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4
376 U.S.C. Sec. 116 et seq.; or
377 (c) an ancillary service as defined in Section 59-12-102 .
378 (11) (a) Except as provided in Subsection (11)(b), "telecommunications tax or fee"
379 means any of the following imposed by a municipality on a telecommunications provider:
380 (i) a tax;
381 (ii) a license;
382 (iii) a fee;
383 (iv) a license fee;
384 (v) a license tax;
385 (vi) a franchise fee; or
386 (vii) a charge similar to a tax, license, or fee described in Subsections (11)(a)(i) through
387 (vi).
388 (b) "Telecommunications tax or fee" does not include:
389 (i) the municipal telecommunications license tax authorized by this part; or
390 (ii) a tax, fee, or charge, including a tax imposed under Title 59, Revenue and Taxation,
391 that is imposed:
392 (A) on telecommunications providers; and
393 (B) on persons who are not telecommunications providers.

394 Section 3. Section 10-1-405 is amended to read:
395 10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
396 Rulemaking authority -- Charge for services.
397 (1) Subject to the other provisions of this section, the commission shall collect, enforce,
398 and administer any municipal telecommunications license tax imposed under this part pursuant
399 to:
400 (a) the same procedures used in the administration, collection, and enforcement of the
401 state sales and use tax under:
402 (i) Title 59, Chapter 1, General Taxation Policies; and
403 (ii) Title 59, Chapter 12, Part 1, Tax Collection:
404 (A) except for:
405 (I) Subsection 59-12-103 (2)[(h)] (g);
406 (II) Section 59-12-104 ;
407 (III) Section 59-12-104.1 ;
408 (IV) Section 59-12-104.2 ; [and]
409 (V) Section 59-12-104.3 ;
410 [(V)] (VI) Section 59-12-107.1 ; and
411 (VII) Section 59-12-123 ; and
412 (B) except that for purposes of Section 59-12-110 , the term "taxpayer" may include a
413 customer from whom a municipal telecommunications license tax is recovered in accordance
414 with Subsection 10-1-403 (2); and
415 (b) a uniform interlocal agreement:
416 (i) between:
417 (A) the municipality that imposes the municipal telecommunications license tax; and
418 (B) the commission;
419 (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
420 (iii) that complies with Subsection (2)(a); and
421 (iv) that is developed by rule in accordance with Subsection (2)(b).

422 (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
423 the commission shall:
424 (i) transmit monies collected under this part:
425 (A) monthly; and
426 (B) by electronic funds transfer by the commission to the municipality;
427 (ii) conduct audits of the municipal telecommunications license tax;
428 (iii) charge the municipality for the commission's services under this section in an
429 amount:
430 (A) sufficient to reimburse the commission for the cost to the commission in rendering
431 the services; and
432 (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
433 license tax imposed by the ordinance of the municipality; and
434 (iv) collect, enforce, and administer the municipal telecommunications license tax
435 authorized under this part pursuant to the same procedures used in the administration,
436 collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
437 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
438 commission shall develop a uniform interlocal agreement that meets the requirements of this
439 section.
440 (3) The administrative fee charged under Subsection (2)(a) shall be:
441 (a) deposited in the Sales and Use Tax Administrative Fees Account; and
442 (b) used for administration of municipal telecommunications license taxes under this
443 part.
444 (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
445 telecommunications license tax under this part at a rate that exceeds 3.5%:
446 (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
447 shall collect the municipal telecommunications license tax:
448 (i) within the municipality;
449 (ii) at a rate of 3.5%; and

450 (iii) from a telecommunications provider required to pay the municipal
451 telecommunications license tax on or after July 1, 2007; and
452 (b) the commission shall collect a municipal telecommunications license tax within the
453 municipality at the rate imposed by the municipality if:
454 (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
455 telecommunications license tax under this part at a rate of up to 3.5%;
456 (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
457 the rate of the municipal telecommunications license tax; and
458 (iii) a telecommunications provider is required to pay the municipal telecommunications
459 license tax on or after the day on which the ordinance described in Subsection (4)(b)(ii) takes
460 effect.
461 Section 4. Section 10-1-407 is amended to read:
462 10-1-407. Attributing the gross receipts from telecommunications service to a
463 municipality -- Rate impact.
464 (1) The gross receipts from a telecommunications service are attributed to a
465 municipality if the gross receipts are from a transaction for telecommunications service that is
466 located within the municipality:
467 (a) for purposes of sales and use taxes under Title 59, Chapter 12, Sales and Use Tax
468 Act; and
469 (b) determined in accordance with Section [ 59-12-207.4 ] 59-12-215 .
470 (2) (a) The rate imposed on the gross receipts for telecommunications service shall be
471 determined in accordance with Subsection (2)(b) if the location of a transaction for
472 telecommunications service is determined under Subsection (1) to be a municipality other than
473 the municipality in which is located:
474 (i) for telecommunications service other than mobile telecommunications service, the
475 customer's service address; or
476 (ii) for mobile telecommunications service, the customer's primary place of use.
477 (b) The rate imposed on the gross receipts for telecommunications service described in

478 Subsection (2)(a) shall be the lower of:
479 (i) the rate imposed by the taxing jurisdiction in which the transaction is located under
480 Subsection (1); or
481 (ii) the rate imposed by the municipality in which it is located:
482 (A) for telecommunications service other than mobile telecommunications service, the
483 customer's service address; or
484 (B) for mobile telecommunications service, the customer's primary place of use.
485 Section 5. Section 11-41-102 is amended to read:
486 11-41-102. Definitions.
487 As used in this chapter:
488 (1) "Agreement" means an oral or written agreement between a:
489 (a) (i) county; or
490 (ii) municipality; and
491 (b) person.
492 (2) "Municipality" means a:
493 (a) city; or
494 (b) town.
495 (3) "Payment" includes:
496 (a) a payment;
497 (b) a rebate;
498 (c) a refund; or
499 (d) an amount similar to Subsections (3)(a) through (c).
500 (4) "Regional retail business" means a:
501 (a) retail business that occupies a floor area of more than 80,000 square feet;
502 (b) dealer as defined in Section 41-1a-102 ;
503 (c) retail shopping facility that has at least two anchor tenants if the total number of
504 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
505 feet; or

506 (d) grocery store that occupies a floor area of more than 30,000 square feet.
507 (5) (a) "Sales and use tax" means a tax:
508 (i) imposed on transactions within a:
509 (A) county; or
510 (B) municipality; and
511 (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
512 Sales and Use Tax Act.
513 (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
514 authorized under:
515 (i) Subsection 59-12-103 (2)(a)(i);
516 (ii) Subsection 59-12-103 (2)(b)(i);
517 (iii) Subsection 59-12-103 (2)(c)(i);
518 (iv) Subsection 59-12-103 (2)(d)(i)(A);
519 [(v) Subsection 59-12-103 (2)(e)(ii)(A);]
520 [(vi) Subsection 59-12-103 (2)(e)(iii)(A);]
521 [(vii)] (v) Section 59-12-301 ;
522 [(viii)] (vi) Section 59-12-352 ;
523 [(ix)] (vii) Section 59-12-353 ;
524 [(x)] (viii) Section 59-12-603 ; or
525 [(xi)] (ix) Section 59-12-1201 .
526 (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
527 (i) to a person;
528 (ii) by a:
529 (A) county; or
530 (B) municipality;
531 (iii) to induce the person to locate or relocate a regional retail business within the:
532 (A) county; or
533 (B) municipality; and

534 (iv) that are derived from a sales and use tax.
535 (b) "Sales and use tax incentive payment" does not include funding for public
536 infrastructure.
537 Section 6. Section 53-10-605 is amended to read:
538 53-10-605. Use of money in fund -- Criteria -- Administration.
539 (1) Subject to an annual legislative appropriation from the fund to:
540 (a) the committee, the committee shall:
541 (i) authorize the use of the money in the fund, by grant to a local entity or state agency
542 in accordance with this Subsection (1) and Subsection (2);
543 (ii) grant to state agencies and local entities an amount not to exceed the per month fee
544 levied on [telephone services] telecommunications service under Section 69-2-5.6 for
545 installation, implementation, and maintenance of unified, statewide 911 emergency services and
546 technology; and
547 (iii) in addition to any money under Subsection (1)(a)(ii), grant to counties of the third
548 through sixth class the amount dedicated for rural assistance, which is at least 3 cents per month
549 levied on [telephone services] telecommunications service under Section 69-2-5.6 to:
550 (A) enhance the 911 emergency services with a focus on areas or counties that do not
551 have E-911 services; and
552 (B) where needed, assist the counties, in cooperation with private industry, with the
553 creation or integration of wireless systems and location technology in rural areas of the state;
554 (b) the committee, the committee shall:
555 (i) include reimbursement to a provider of radio communications service, as defined in
556 Section 69-2-2 , for costs as provided in Subsection (1)(b)(ii); and
557 (ii) an agreement to reimburse costs to a provider of radio communications services
558 must be a written agreement among the committee, the local public safety answering point and
559 the carrier; and
560 (c) the state's Automated Geographic Reference Center in the Division of Integrated
561 Technology of the Department of Technology Services, an amount equal to 1 cent per month

562 levied on [telephone services] telecommunications service under Section 69-2-5.6 shall be used
563 to enhance and upgrade statewide digital mapping standards.
564 (2) (a) Beginning July 1, 2007, the committee may not grant the money in the fund to a
565 local entity unless the local entity is in compliance with Phase I, wireless E-911 service.
566 (b) Beginning July 1, 2009, the committee may not grant money in the fund to a local
567 entity unless the local entity is in compliance with Phase II, wireless E-911 service.
568 (3) A local entity must deposit any money it receives from the committee into a special
569 emergency [telephone] telecommunications service fund in accordance with Subsection
570 69-2-5 (4).
571 (4) For purposes of this part, "local entity" means a county, city, town, local district,
572 special service district, or interlocal entity created under Title 11, Chapter 13, Interlocal
573 Cooperation Act.
574 Section 7. Section 59-1-403 is amended to read:
575 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
576 (1) (a) Any of the following may not divulge or make known in any manner any
577 information gained by that person from any return filed with the commission:
578 (i) a tax commissioner;
579 (ii) an agent, clerk, or other officer or employee of the commission; or
580 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
581 town.
582 (b) An official charged with the custody of a return filed with the commission is not
583 required to produce the return or evidence of anything contained in the return in any action or
584 proceeding in any court, except:
585 (i) in accordance with judicial order;
586 (ii) on behalf of the commission in any action or proceeding under:
587 (A) this title; or
588 (B) other law under which persons are required to file returns with the commission;
589 (iii) on behalf of the commission in any action or proceeding to which the commission is

590 a party; or
591 (iv) on behalf of any party to any action or proceeding under this title if the report or
592 facts shown by the return are directly involved in the action or proceeding.
593 (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
594 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
595 pertinent to the action or proceeding.
596 (2) This section does not prohibit:
597 (a) a person or that person's duly authorized representative from receiving a copy of any
598 return or report filed in connection with that person's own tax;
599 (b) the publication of statistics as long as the statistics are classified to prevent the
600 identification of particular reports or returns; and
601 (c) the inspection by the attorney general or other legal representative of the state of the
602 report or return of any taxpayer:
603 (i) who brings action to set aside or review a tax based on the report or return;
604 (ii) against whom an action or proceeding is contemplated or has been instituted under
605 this title; or
606 (iii) against whom the state has an unsatisfied money judgment.
607 (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
608 commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
609 Rulemaking Act, provide for a reciprocal exchange of information with:
610 (i) the United States Internal Revenue Service; or
611 (ii) the revenue service of any other state.
612 (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
613 corporate franchise tax, the commission may by rule, made in accordance with Title 63, Chapter
614 46a, Utah Administrative Rulemaking Act, share information gathered from returns and other
615 written statements with the federal government, any other state, any of the political subdivisions
616 of another state, or any political subdivision of this state, except as limited by Sections
617 59-12-209 and 59-12-210 , if the political subdivision, other state, or the federal government

618 grant substantially similar privileges to this state.
619 (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
620 corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
621 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
622 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
623 due.
624 (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
625 Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
626 requested by the executive secretary, any records, returns, or other information filed with the
627 commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
628 regarding the environmental assurance program participation fee.
629 (e) Notwithstanding Subsection (1), at the request of any person the commission shall
630 provide that person sales and purchase volume data reported to the commission on a report,
631 return, or other information filed with the commission under:
632 (i) Chapter 13, Part 2, Motor Fuel; or
633 (ii) Chapter 13, Part 4, Aviation Fuel.
634 (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
635 as defined in Section 59-22-202 , the commission shall report to the manufacturer:
636 (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
637 manufacturer and reported to the commission for the previous calendar year under Section
638 59-14-407 ; and
639 (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
640 manufacturer for which a tax refund was granted during the previous calendar year under
641 Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
642 (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
643 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
644 from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
645 (h) Notwithstanding Subsection (1), the commission may:

646 (i) provide to the Division of Consumer Protection within the Department of Commerce
647 and the attorney general data:
648 (A) reported to the commission under Section 59-14-212 ; or
649 (B) related to a violation under Section 59-14-211 ; and
650 (ii) upon request provide to any person data reported to the commission under
651 Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
652 (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
653 of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning and
654 Budget, provide to the committee or office the total amount of revenues collected by the
655 commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period specified
656 by the committee or office.
657 (j) Notwithstanding Subsection (1), the commission shall at the request of the
658 Legislature provide to the Legislature the total amount of sales or uses exempt under
659 Subsection 59-12-104 (46) reported to the commission in accordance with Section 59-12-105 .
660 (k) Notwithstanding Subsection (1), the commission shall make the directory required
661 by Section 59-14-603 available for public inspection.
662 (l) Notwithstanding Subsection (1), the commission may share information with federal,
663 state, or local agencies as provided in Subsection 59-14-606 (3).
664 (m) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
665 Recovery Services within the Department of Human Services any relevant information obtained
666 from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer who has
667 become obligated to the Office of Recovery Services.
668 (ii) The information described in Subsection (3)(m)(i) may be provided by the Office of
669 Recovery Services to any other state's child support collection agency involved in enforcing that
670 support obligation.
671 (n) (i) Notwithstanding Subsection (1), upon request from the state court administrator,
672 the commission shall provide to the state court administrator, the name, address, telephone
673 number, county of residence, and Social Security number on resident returns filed under

674 Chapter 10, Individual Income Tax Act.
675 (ii) The state court administrator may use the information described in Subsection
676 (3)(n)(i) only as a source list for the master jury list described in Section 78-46-10 .
677 (o) Notwithstanding Subsection (1), the commission shall at the request of a committee,
678 commission, or task force of the Legislature provide to the committee, commission, or task
679 force of the Legislature any information relating to a tax imposed under Chapter 9, Taxation of
680 Admitted Insurers, relating to the study required by Section 59-9-101 .
681 (p) (i) As used in this Subsection (3)(p), "office" means the:
682 (A) Office of the Legislative Fiscal Analyst; or
683 (B) Office of Legislative Research and General Counsel.
684 (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(p)(iii), the
685 commission shall at the request of an office provide to the office all information:
686 (A) gained by the commission; and
687 (B) required to be attached to or included in returns filed with the commission.
688 (iii) (A) An office may not request and the commission may not provide to an office a
689 person's:
690 (I) address;
691 (II) name;
692 (III) Social Security number; or
693 (IV) taxpayer identification number.
694 (B) The commission shall in all instances protect the privacy of a person as required by
695 Subsection (3)(p)(iii)(A).
696 (iv) An office may provide information received from the commission in accordance
697 with this Subsection (3)(p) only:
698 (A) as:
699 (I) a fiscal estimate;
700 (II) fiscal note information; or
701 (III) statistical information; and

702 (B) if the information is classified to prevent the identification of a particular return.
703 (v) (A) A person may not request information from an office under Title 63, Chapter 2,
704 Government Records Access and Management Act, or this section, if that office received the
705 information from the commission in accordance with this Subsection (3)(p).
706 (B) An office may not provide to a person that requests information in accordance with
707 Subsection (3)(p)(v)(A) any information other than the information the office provides in
708 accordance with Subsection (3)(p)(iv).
709 (q) Notwithstanding Subsection (1), the commission may provide to the governing
710 board of the agreement or a taxing official of another state, the District of Columbia, the United
711 States, or a territory of the United States:
712 (i) the following relating to an agreement sales and use tax:
713 (A) information contained in a return filed with the commission;
714 (B) information contained in a report filed with the commission;
715 (C) a schedule related to Subsection (3)(q)(i)(A) or (B); or
716 (D) a document filed with the commission; or
717 (ii) a report of an audit or investigation made with respect to an agreement sales and
718 use tax.
719 (4) (a) Reports and returns shall be preserved for at least three years.
720 (b) After the three-year period provided in Subsection (4)(a) the commission may
721 destroy a report or return.
722 (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
723 (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
724 the person shall be dismissed from office and be disqualified from holding public office in this
725 state for a period of five years thereafter.
726 (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
727 accordance with Subsection (3)(p)(iii) or a person that requests information in accordance with
728 Subsection (3)(p)(v):
729 (i) is not guilty of a class A misdemeanor; and

730 (ii) is not subject to:
731 (A) dismissal from office in accordance with Subsection (5)(b); or
732 (B) disqualification from holding public office in accordance with Subsection (5)(b).
733 (6) Except as provided in Section 59-1-404 , this part does not apply to the property
734 tax.
735 Section 8. Section 59-12-102 is amended to read:
736 59-12-102. Definitions.
737 As used in this chapter:
738 (1) "800 service" means a telecommunications service that:
739 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
740 (b) is typically marketed:
741 (i) under the name 800 toll-free calling;
742 (ii) under the name 855 toll-free calling;
743 (iii) under the name 866 toll-free calling;
744 (iv) under the name 877 toll-free calling;
745 (v) under the name 888 toll-free calling; or
746 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
747 Federal Communications Commission.
748 (2) (a) "900 service" means an inbound toll telecommunications service that:
749 (i) a subscriber purchases;
750 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to the
751 subscriber's:
752 (A) prerecorded announcement; or
753 (B) live service; and
754 (iii) is typically marketed:
755 (A) under the name 900 service; or
756 (B) under a name similar to Subsection (2)(c)(iii)(A) as designated by the Federal
757 Communications Commission.

758 (b) "900 service" does not include a charge for:
759 (i) a collection service a seller of a telecommunications service provides to a subscriber;
760 or
761 (ii) the following a subscriber sells to the subscriber's customer:
762 (A) a product; or
763 (B) a service.
764 [(1)] (3) (a) "Admission or user fees" includes season passes.
765 (b) "Admission or user fees" does not include annual membership dues to private
766 organizations.
767 [(2)] (4) "Agreement" means the Streamlined Sales and Use Tax Agreement [described
768 in Section 59-12-102.1 ] adopted on November 12, 2002, including amendments made to the
769 Streamlined Sales and Use Tax Agreement after November 12, 2002.
770 [(3)] (5) "Agreement combined tax rate" means the sum of the tax rates:
771 (a) listed under Subsection [(4)] (6); and
772 (b) that are imposed within a local taxing jurisdiction.
773 [(4)] (6) "Agreement sales and use tax" means a tax imposed under:
774 (a) Subsection 59-12-103 (2)(a)(i)(A);
775 (b) Subsection 59-12-103 (2)(b)(i);
776 (c) Subsection 59-12-103 (2)(c)(i);
777 [(d) Subsection 59-12-103 (2)(d)(i);]
778 [(e)] (d) Subsection 59-12-103 (2)[(e)(ii)] (d)(i)(A)(I);
779 [(f) Subsection 59-12-103 (2)(e)(iii)(A);]
780 [(g)] (e) Section 59-12-204 ;
781 [(h)] (f) Section 59-12-401 ;
782 [(i)] (g) Section 59-12-402 ;
783 [(j)] (h) Section 59-12-501 ;
784 [(k)] (i) Section 59-12-502 ;
785 [(l)] (j) Section 59-12-703 ;

786 [(m)] (k) Section 59-12-802 ;
787 [(n)] (l) Section 59-12-804 ;
788 [(o)] (m) Section 59-12-1001 ;
789 [(p)] (n) Section 59-12-1102 ;
790 [(q)] (o) Section 59-12-1302 ;
791 [(r)] (p) Section 59-12-1402 ;
792 [(s)] (q) Section 59-12-1503 ; [or]
793 [(t)] (r) Section 59-12-1703 [.]; or
794 (s) Section 59-12-1802 .
795 [(5)] (7) "Aircraft" is as defined in Section 72-10-102 .
796 [(6)] (8) "Alcoholic beverage" means a beverage that:
797 (a) is suitable for human consumption; and
798 (b) contains .5% or more alcohol by volume.
799 (9) (a) "Ancillary service" means a service associated with, or incidental to, the
800 provision of telecommunications service.
801 (b) "Ancillary service" includes:
802 (i) a conference bridging service;
803 (ii) a detailed communications billing service;
804 (iii) directory assistance;
805 (iv) a vertical service; or
806 (v) a voice mail service.
807 [(7)] (10) "Area agency on aging" is as defined in Section 62A-3-101 .
808 [(8)] (11) "Assisted amusement device" means an amusement device, skill device, or
809 ride device that is started and stopped by an individual:
810 (a) who is not the purchaser or renter of the right to use or operate the amusement
811 device, skill device, or ride device; and
812 (b) at the direction of the seller of the right to use the amusement device, skill device, or
813 ride device.

814 [(9)] (12) "Assisted cleaning or washing of tangible personal property" means cleaning
815 or washing of tangible personal property if the cleaning or washing labor is primarily performed
816 by an individual:
817 (a) who is not the purchaser of the cleaning or washing of the tangible personal
818 property; and
819 (b) at the direction of the seller of the cleaning or washing of the tangible personal
820 property.
821 [(10)] (13) "Authorized carrier" means:
822 (a) in the case of vehicles operated over public highways, the holder of credentials
823 indicating that the vehicle is or will be operated pursuant to both the International Registration
824 Plan and the International Fuel Tax Agreement;
825 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
826 certificate or air carrier's operating certificate; or
827 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
828 stock, the holder of a certificate issued by the United States Surface Transportation Board.
829 [(11)] (14) (a) Except as provided in Subsection [(11)] (14)(b), "biomass energy"
830 means any of the following that is used as the primary source of energy to produce fuel or
831 electricity:
832 (i) material from a plant or tree; or
833 (ii) other organic matter that is available on a renewable basis, including:
834 (A) slash and brush from forests and woodlands;
835 (B) animal waste;
836 (C) methane produced:
837 (I) at landfills; or
838 (II) as a byproduct of the treatment of wastewater residuals;
839 (D) aquatic plants; and
840 (E) agricultural products.
841 (b) "Biomass energy" does not include:

842 (i) black liquor;
843 (ii) treated woods; or
844 (iii) biomass from municipal solid waste other than methane produced:
845 (A) at landfills; or
846 (B) as a byproduct of the treatment of wastewater residuals.
847 [(12)] (15) (a) "Bundled transaction" means the sale of two or more [items of tangible
848 personal property if: (i) one or more of the items of tangible personal property is food and food
849 ingredients; and (ii) the items of tangible personal property] items of tangible personal property,
850 products, or services if the tangible personal property, products, or services are:
851 [(A)] (i) distinct and identifiable; and
852 [(B)] (ii) sold for one nonitemized price [that is not itemized].
853 (b) "Bundled transaction" does not include:
854 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on the
855 basis of the selection by the purchaser of the items of tangible personal property included in the
856 transaction[.];
857 (ii) the sale of real property;
858 (iii) the sale of services to real property;
859 (iv) the retail sale of tangible personal property and a service if:
860 (A) the tangible personal property:
861 (I) is essential to the use of the service; and
862 (II) is provided exclusively in connection with the service; and
863 (B) the service is the true object of the transaction;
864 (v) the retail sale of two services if:
865 (A) one service is provided that is essential to the use or receipt of a second service;
866 (B) the first service is provided exclusively in connection with the second service; and
867 (C) the second service is the true object of the transaction;
868 (vi) a transaction that includes tangible personal property or a product subject to
869 taxation under this chapter and tangible personal property or a product that is not subject to

870 taxation under this chapter if the:
871 (A) seller's purchase price of the tangible personal property or product subject to
872 taxation under this chapter is de minimis; or
873 (B) seller's sales price of the tangible personal property or product subject to taxation
874 under this chapter is de minimis; and
875 (vii) the retail sale of tangible personal property that is not subject to taxation under this
876 chapter and tangible personal property that is subject to taxation under this chapter if:
877 (A) that retail sale includes:
878 (I) food and food ingredients;
879 (II) a drug;
880 (III) durable medical equipment;
881 (IV) mobility enhancing equipment;
882 (V) an over-the-counter drug;
883 (VI) a prosthetic device; or
884 (VII) a medical supply; and
885 (B) subject to Subsection (15)(f):
886 (I) the seller's purchase price of the tangible personal property subject to taxation under
887 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
888 (II) the seller's sales price of the tangible personal property subject to taxation under
889 this chapter is 50% or less of the seller's total sales price of that retail sale.
890 (c) (i) For purposes of Subsection [(12)] (15)(a)[(ii)(A)] (i), tangible personal property,
891 a product, or a service that is distinct and identifiable does not include:
892 [(i)] (A) packaging that:
893 [(A)] (I) accompanies the sale of the tangible personal property, product, or service;
894 and
895 [(B)] (II) is incidental or immaterial to the sale of the tangible personal property,
896 product, or service;
897 [(ii)] (B) tangible personal property, a product, or a service provided free of charge

898 with the purchase of another item of tangible personal property, a product, or a service; or
899 [(iii)] (C) an item of tangible personal property, a product, or a service included in the
900 definition of "purchase price."
901 [(d)] (ii) For purposes of Subsection [(12)] (15)(c)[(ii)](i)(B), an item of tangible
902 personal property, a product, or a service is provided free of charge with the purchase of
903 another item of tangible personal property, a product, or a service if the sales price of the
904 purchased item of tangible personal property, product, or service does not vary depending on
905 the inclusion of the tangible personal property, product, or service provided free of charge.
906 (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
907 does not include a price that is separately identified by product on the following, regardless of
908 whether the following is in paper format or electronic format:
909 (A) a binding sales document; or
910 (B) another supporting sales-related document that is available to a purchaser.
911 (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
912 supporting sales-related document that is available to a purchaser includes:
913 (A) a bill of sale;
914 (B) a contract;
915 (C) an invoice;
916 (D) a lease agreement;
917 (E) a periodic notice of rates and services;
918 (F) a price list;
919 (G) a rate card;
920 (H) a receipt; or
921 (I) a service agreement.
922 (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
923 property or a product subject to taxation under this chapter is de minimis if:
924 (A) the seller's purchase price of the tangible personal property or product is 10% or
925 less of the seller's total purchase price of the bundled transaction; or

926 (B) the seller's sales price of the tangible personal property or product is 10% or less of
927 the seller's total sales price of the bundled transaction.
928 (ii) For purposes of Subsection (15)(b)(vi), a seller:
929 (A) shall use the seller's purchase price or the seller's sales price to determine if the
930 purchase price or sales price of the tangible personal property or product subject to taxation
931 under this chapter is de minimis; and
932 (B) may not use a combination of the seller's purchase price and the seller's sales price
933 to determine if the purchase price or sales price of the tangible personal property or product
934 subject to taxation under this chapter is de minimis.
935 (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
936 contract to determine if the sales price of tangible personal property or a product is de minimis.
937 (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of the
938 seller's purchase price and the seller's sales price to determine if tangible personal property
939 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
940 price of that retail sale.
941 [(13)] (16) "Certified automated system" means software certified by the governing
942 board of the agreement in accordance with Section 59-12-102.1 that:
943 (a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
944 (i) on a transaction; and
945 (ii) in the states that are members of the agreement;
946 (b) determines the amount of agreement sales and use tax to remit to a state that is a
947 member of the agreement; and
948 (c) maintains a record of the transaction described in Subsection [(13)] (16)(a)(i).
949 [(14)] (17) "Certified service provider" means an agent certified:
950 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
951 and
952 (b) to perform all of a seller's sales and use tax functions for an agreement sales and use
953 tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's

954 own purchases.
955 [(15)] (18) (a) Subject to Subsection [(15)] (18)(b), "clothing" means all human
956 wearing apparel suitable for general use.
957 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
958 commission shall make rules:
959 (i) listing the items that constitute "clothing"; and
960 (ii) that are consistent with the list of items that constitute "clothing" under the
961 agreement.
962 [(16)] (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic
963 fuel.
964 [(17)] (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
965 other fuels that does not constitute industrial use under Subsection [(42)] (46) or residential use
966 under Subsection [(80)] (91).
967 [(18)] (21) (a) "Common carrier" means a person engaged in or transacting the business
968 of transporting passengers, freight, merchandise, or other property for hire within this state.
969 (b) (i) "Common carrier" does not include a person who, at the time the person is
970 traveling to or from that person's place of employment, transports a passenger to or from the
971 passenger's place of employment.
972 (ii) For purposes of Subsection [(18)] (21)(b)(i), in accordance with Title 63, Chapter
973 46a, Utah Administrative Rulemaking Act, the commission may make rules defining what
974 constitutes a person's place of employment.
975 [(19)] (22) "Component part" includes:
976 (a) poultry, dairy, and other livestock feed, and their components;
977 (b) baling ties and twine used in the baling of hay and straw;
978 (c) fuel used for providing temperature control of orchards and commercial
979 greenhouses doing a majority of their business in wholesale sales, and for providing power for
980 off-highway type farm machinery; and
981 (d) feed, seeds, and seedlings.

982 [(20)] (23) "Computer" means an electronic device that accepts information:
983 (a) (i) in digital form; or
984 (ii) in a form similar to digital form; and
985 (b) manipulates that information for a result based on a sequence of instructions.
986 [(21)] (24) "Computer software" means a set of coded instructions designed to cause:
987 (a) a computer to perform a task; or
988 (b) automatic data processing equipment to perform a task.
989 (25) (a) "Conference bridging service" means an ancillary service that links two or more
990 participants of an audio conference call or video conference call.
991 (b) "Conference bridging service" includes providing a telephone number as part of the
992 ancillary service described in Subsection (25)(a).
993 (c) "Conference bridging service" does not include a telecommunications service used
994 to reach the ancillary service described in Subsection (25)(a).
995 [(22)] (26) "Construction materials" means any tangible personal property that will be
996 converted into real property.
997 [(23)] (27) "Delivered electronically" means delivered to a purchaser by means other
998 than tangible storage media.
999 [(24)] (28) (a) "Delivery charge" means a charge:
1000 (i) by a seller of:
1001 (A) tangible personal property; [or]
1002 (B) a product transferred electronically; or
1003 [(B)] (C) services; and
1004 (ii) for preparation and delivery of the tangible personal property, product transferred
1005 electronically, or services described in Subsection [(24)] (28)(a)(i) to a location designated by
1006 the purchaser.
1007 (b) "Delivery charge" includes a charge for the following:
1008 (i) transportation;
1009 (ii) shipping;

1010 (iii) postage;
1011 (iv) handling;
1012 (v) crating; or
1013 (vi) packing.
1014 [(25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:]
1015 [(i) a bridge;]
1016 [(ii) a crown if that crown covers at least 75% of a tooth structure;]
1017 [(iii) a denture;]
1018 [(iv) an implant;]
1019 [(v) an orthodontic device designed to:]
1020 [(A) retain the position or spacing of teeth; and]
1021 [(B) replace a missing tooth;]
1022 [(vi) a partial denture; or]
1023 [(vii) a device similar to Subsections (25)(a)(i) through (vi).]
1024 [(b) "Dental prosthesis" does not include an appliance or device, other than a device
1025 described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
1026 apply force to the teeth and their supporting structures to:]
1027 [(i) produce changes in their relationship to each other; and]
1028 [(ii) control their growth and development.]
1029 (29) "Detailed telecommunications billing service" means an ancillary service of
1030 separately stating information pertaining to individual calls on a customer's billing statement.
1031 [(26)] (30) "Dietary supplement" means a product, other than tobacco, that:
1032 (a) is intended to supplement the diet;
1033 (b) contains one or more of the following dietary ingredients:
1034 (i) a vitamin;
1035 (ii) a mineral;
1036 (iii) an herb or other botanical;
1037 (iv) an amino acid;

1038 (v) a dietary substance for use by humans to supplement the diet by increasing the total
1039 dietary intake; or
1040 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
1041 described in Subsections [(26)] (30)(b)(i) through (v);
1042 (c) (i) except as provided in Subsection [(26)] (30)(c)(ii), is intended for ingestion in:
1043 (A) tablet form;
1044 (B) capsule form;
1045 (C) powder form;
1046 (D) softgel form;
1047 (E) gelcap form; or
1048 (F) liquid form; or
1049 (ii) notwithstanding Subsection [(26)] (30)(c)(i), if the product is not intended for
1050 ingestion in a form described in Subsections [(26)] (30)(c)(i)(A) through (F), is not represented:
1051 (A) as conventional food; and
1052 (B) for use as a sole item of:
1053 (I) a meal; or
1054 (II) the diet; and
1055 (d) is required to be labeled as a dietary supplement:
1056 (i) identifiable by the "Supplemental Facts" box found on the label; and
1057 (ii) as required by 21 C.F.R. Sec. 101.36.
1058 [(27)] (31) (a) "Direct mail" means printed material delivered or distributed by United
1059 States mail or other delivery service:
1060 (i) to:
1061 (A) a mass audience; or
1062 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
1063 (ii) if the cost of the printed material is not billed directly to the recipients.
1064 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1065 purchaser to a seller of direct mail for inclusion in a package containing the printed material.

1066 (c) "Direct mail" does not include multiple items of printed material delivered to a single
1067 address.
1068 (32) "Directory assistance" means an ancillary service of providing:
1069 (a) address information; or
1070 (b) telephone number information.
1071 [(28)] (33) (a) "Disposable home medical equipment or supplies" means medical
1072 equipment or supplies that:
1073 (i) cannot withstand repeated use; and
1074 (ii) are purchased by, for, or on behalf of a person other than:
1075 (A) a health care facility as defined in Section 26-21-2 ;
1076 (B) a health care provider as defined in Section 78-14-3 ;
1077 (C) an office of a health care provider described in Subsection [(28)] (33)(a)(ii)(B); or
1078 (D) a person similar to a person described in Subsections [(28)] (33)(a)(ii)(A) through
1079 (C).
1080 (b) "Disposable home medical equipment or supplies" does not include:
1081 (i) a drug;
1082 (ii) durable medical equipment;
1083 (iii) a hearing aid;
1084 (iv) a hearing aid accessory;
1085 (v) mobility enhancing equipment; or
1086 (vi) tangible personal property used to correct impaired vision, including:
1087 (A) eyeglasses; or
1088 (B) contact lenses.
1089 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1090 commission may by rule define what constitutes medical equipment or supplies.
1091 [(29)] (34) (a) "Drug" means a compound, substance, or preparation, or a component
1092 of a compound, substance, or preparation that is:
1093 (i) recognized in:

1094 (A) the official United States Pharmacopoeia;
1095 (B) the official Homeopathic Pharmacopoeia of the United States;
1096 (C) the official National Formulary; or
1097 (D) a supplement to a publication listed in Subsections [(29)] (34)(a)(i)(A) through (C);
1098 (ii) intended for use in the:
1099 (A) diagnosis of disease;
1100 (B) cure of disease;
1101 (C) mitigation of disease;
1102 (D) treatment of disease; or
1103 (E) prevention of disease; or
1104 (iii) intended to affect:
1105 (A) the structure of the body; or
1106 (B) any function of the body.
1107 (b) "Drug" does not include:
1108 (i) food and food ingredients;
1109 (ii) a dietary supplement;
1110 (iii) an alcoholic beverage; or
1111 (iv) a prosthetic device.
1112 [(30)] (35) (a) Except as provided in Subsection [(30)] (35)(c), "durable medical
1113 equipment" means equipment that:
1114 (i) can withstand repeated use;
1115 (ii) is primarily and customarily used to serve a medical purpose;
1116 (iii) generally is not useful to a person in the absence of illness or injury; and
1117 (iv) is not worn in or on the body.
1118 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1119 equipment described in Subsection [(30)] (35)(a).
1120 (c) Notwithstanding Subsection [(30)] (35)(a), "durable medical equipment" does not
1121 include mobility enhancing equipment.

1122 [(31)] (36) "Electronic" means:
1123 (a) relating to technology; and
1124 (b) having:
1125 (i) electrical capabilities;
1126 (ii) digital capabilities;
1127 (iii) magnetic capabilities;
1128 (iv) wireless capabilities;
1129 (v) optical capabilities;
1130 (vi) electromagnetic capabilities; or
1131 (vii) capabilities similar to Subsections [(31)] (36)(b)(i) through (vi).
1132 [(32)] (37) "Employee" is as defined in Section 59-10-401 .
1133 [(33)] (38) "Fixed guideway" means a public transit facility that uses and occupies:
1134 (a) rail for the use of public transit; or
1135 (b) a separate right-of-way for the use of public transit.
1136 (39) "Fixed wireless service" means a telecommunications service that provides radio
1137 communication between fixed points.
1138 [(34)] (40) (a) "Food and food ingredients" means substances:
1139 (i) regardless of whether the substances are in:
1140 (A) liquid form;
1141 (B) concentrated form;
1142 (C) solid form;
1143 (D) frozen form;
1144 (E) dried form; or
1145 (F) dehydrated form; and
1146 (ii) that are:
1147 (A) sold for:
1148 (I) ingestion by humans; or
1149 (II) chewing by humans; and

1150 (B) consumed for the substance's:
1151 (I) taste; or
1152 (II) nutritional value.
1153 (b) "Food and food ingredients" includes an item described in Subsection [(66)]
1154 (75)(b)(iii).
1155 (c) "Food and food ingredients" does not include:
1156 (i) an alcoholic beverage;
1157 (ii) tobacco; or
1158 (iii) prepared food.
1159 [(35)] (41) (a) "Fundraising sales" means sales:
1160 (i) (A) made by a school; or
1161 (B) made by a school student;
1162 (ii) that are for the purpose of raising funds for the school to purchase equipment,
1163 materials, or provide transportation; and
1164 (iii) that are part of an officially sanctioned school activity.
1165 (b) For purposes of Subsection [(35)] (41)(a)(iii), "officially sanctioned school activity"
1166 means a school activity:
1167 (i) that is conducted in accordance with a formal policy adopted by the school or school
1168 district governing the authorization and supervision of fundraising activities;
1169 (ii) that does not directly or indirectly compensate an individual teacher or other
1170 educational personnel by direct payment, commissions, or payment in kind; and
1171 (iii) the net or gross revenues from which are deposited in a dedicated account
1172 controlled by the school or school district.
1173 [(36)] (42) "Geothermal energy" means energy contained in heat that continuously
1174 flows outward from the earth that is used as the sole source of energy to produce electricity.
1175 [(37)] (43) "Governing board of the agreement" means the governing board of the
1176 agreement that is:
1177 (a) authorized to administer the agreement; and

1178 (b) established in accordance with the agreement.
1179 [(38)] (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
1180 means:
1181 (i) the executive branch of the state, including all departments, institutions, boards,
1182 divisions, bureaus, offices, commissions, and committees;
1183 (ii) the judicial branch of the state, including the courts, the Judicial Council, the Office
1184 of the Court Administrator, and similar administrative units in the judicial branch;
1185 (iii) the legislative branch of the state, including the House of Representatives, the
1186 Senate, the Legislative Printing Office, the Office of Legislative Research and General Counsel,
1187 the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
1188 (iv) the National Guard;
1189 (v) an independent entity as defined in Section 63E-1-102 ; or
1190 (vi) a political subdivision as defined in Section 17B-1-102 .
1191 (b) "Governmental entity" does not include the state systems of public and higher
1192 education, including:
1193 (i) a college campus of the Utah College of Applied Technology;
1194 (ii) a school;
1195 (iii) the State Board of Education;
1196 (iv) the State Board of Regents; or
1197 (v) a state institution of higher education as defined in Section 53B-3-102 .
1198 [(39) (a) "Hearing aid" means:]
1199 [(i) an instrument or device having an electronic component that is designed to:]
1200 [(A) (I) improve impaired human hearing; or]
1201 [(II) correct impaired human hearing; and]
1202 [(B) (I) be worn in the human ear; or]
1203 [(II) affixed behind the human ear;]
1204 [(ii) an instrument or device that is surgically implanted into the cochlea; or]
1205 [(iii) a telephone amplifying device.]

1206 [(b) "Hearing aid" does not include:]
1207 [(i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or
1208 device having an electronic component that is designed to be worn on the body;]
1209 [(ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
1210 designed to be used by one individual, including:]
1211 [(A) a personal amplifying system;]
1212 [(B) a personal FM system;]
1213 [(C) a television listening system; or]
1214 [(D) a device or system similar to a device or system described in Subsections
1215 (39)(b)(ii)(A) through (C); or]
1216 [(iii) an assistive listening device or system designed to be used by more than one
1217 individual, including:]
1218 [(A) a device or system installed in:]
1219 [(I) an auditorium;]
1220 [(II) a church;]
1221 [(III) a conference room;]
1222 [(IV) a synagogue; or]
1223 [(V) a theater; or]
1224 [(B) a device or system similar to a device or system described in Subsections
1225 (39)(b)(iii)(A)(I) through (V).]
1226 [(40) (a) "Hearing aid accessory" means a hearing aid:]
1227 [(i) component;]
1228 [(ii) attachment; or]
1229 [(iii) accessory.]
1230 [(b) "Hearing aid accessory" includes:]
1231 [(i) a hearing aid neck loop;]
1232 [(ii) a hearing aid cord;]
1233 [(iii) a hearing aid ear mold;]

1234 [(iv) hearing aid tubing;]
1235 [(v) a hearing aid ear hook; or]
1236 [(vi) a hearing aid remote control.]
1237 [(c) "Hearing aid accessory" does not include:]
1238 [(i) a component, attachment, or accessory designed to be used only with an:]
1239 [(A) instrument or device described in Subsection (39)(b)(i); or]
1240 [(B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or]
1241 [(ii) a hearing aid battery.]
1242 [(41)] (45) "Hydroelectric energy" means water used as the sole source of energy to
1243 produce electricity.
1244 [(42)] (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
1245 or other fuels:
1246 (a) in mining or extraction of minerals;
1247 (b) in agricultural operations to produce an agricultural product up to the time of
1248 harvest or placing the agricultural product into a storage facility, including:
1249 (i) commercial greenhouses;
1250 (ii) irrigation pumps;
1251 (iii) farm machinery;
1252 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
1253 registered under Title 41, Chapter 1a, Part 2, Registration; and
1254 (v) other farming activities;
1255 (c) in manufacturing tangible personal property at an establishment described in SIC
1256 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
1257 Executive Office of the President, Office of Management and Budget;
1258 (d) by a scrap recycler if:
1259 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1260 one or more of the following items into prepared grades of processed materials for use in new
1261 products:

1262 (A) iron;
1263 (B) steel;
1264 (C) nonferrous metal;
1265 (D) paper;
1266 (E) glass;
1267 (F) plastic;
1268 (G) textile; or
1269 (H) rubber; and
1270 (ii) the new products under Subsection [(42)] (46)(d)(i) would otherwise be made with
1271 nonrecycled materials; or
1272 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
1273 cogeneration facility as defined in Section 54-2-1 .
1274 [(43)] (47) (a) Except as provided in Subsection [(43)] (47)(b), "installation charge"
1275 means a charge for installing:
1276 (i) tangible personal property; or
1277 (ii) a product transferred electronically.
1278 (b) [Notwithstanding Subsection (43)(a), "installation] "Installation charge" does not
1279 include a charge for repairs or renovations of:
1280 (i) tangible personal property; or
1281 (ii) a product transferred electronically.
1282 [(44)] (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
1283 personal property or a product transferred electronically for:
1284 (i) (A) a fixed term; or
1285 (B) an indeterminate term; and
1286 (ii) consideration.
1287 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
1288 amount of consideration may be increased or decreased by reference to the amount realized
1289 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue

1290 Code.
1291 (c) "Lease" or "rental" does not include:
1292 (i) a transfer of possession or control of property under a security agreement or
1293 deferred payment plan that requires the transfer of title upon completion of the required
1294 payments;
1295 (ii) a transfer of possession or control of property under an agreement that requires the
1296 transfer of title:
1297 (A) upon completion of required payments; and
1298 (B) if the payment of an option price does not exceed the greater of:
1299 (I) $100; or
1300 (II) 1% of the total required payments; or
1301 (iii) providing tangible personal property along with an operator for a fixed period of
1302 time or an indeterminate period of time if the operator is necessary for equipment to perform as
1303 designed.
1304 (d) For purposes of Subsection [(44)] (48)(c)(iii), an operator is necessary for
1305 equipment to perform as designed if the operator's duties exceed the:
1306 (i) set-up of tangible personal property;
1307 (ii) maintenance of tangible personal property; or
1308 (iii) inspection of tangible personal property.
1309 [(45)] (49) "Load and leave" means delivery to a purchaser by use of a tangible storage
1310 media if the tangible storage media is not physically transferred to the purchaser.
1311 [(46)] (50) "Local taxing jurisdiction" means a:
1312 (a) county that is authorized to impose an agreement sales and use tax;
1313 (b) city that is authorized to impose an agreement sales and use tax; or
1314 (c) town that is authorized to impose an agreement sales and use tax.
1315 [(47)] (51) "Manufactured home" is as defined in Section 58-56-3 .
1316 [(48)] (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
1317 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard

1318 Industrial Classification Manual of the federal Executive Office of the President, Office of
1319 Management and Budget;
1320 (b) a scrap recycler if:
1321 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1322 one or more of the following items into prepared grades of processed materials for use in new
1323 products:
1324 (A) iron;
1325 (B) steel;
1326 (C) nonferrous metal;
1327 (D) paper;
1328 (E) glass;
1329 (F) plastic;
1330 (G) textile; or
1331 (H) rubber; and
1332 (ii) the new products under Subsection [(48)] (52)(b)(i) would otherwise be made with
1333 nonrecycled materials; or
1334 (c) a cogeneration facility as defined in Section 54-2-1 .
1335 [(49)] (53) "Member of the immediate family of the producer" means a person who is
1336 related to a producer described in Subsection 59-12-104 (20)(a) as a:
1337 (a) child or stepchild, regardless of whether the child or stepchild is:
1338 (i) an adopted child or adopted stepchild; or
1339 (ii) a foster child or foster stepchild;
1340 (b) grandchild or stepgrandchild;
1341 (c) grandparent or stepgrandparent;
1342 (d) nephew or stepnephew;
1343 (e) niece or stepniece;
1344 (f) parent or stepparent;
1345 (g) sibling or stepsibling;

1346 (h) spouse;
1347 (i) person who is the spouse of a person described in Subsections [(49)] (53)(a) through
1348 (g); or
1349 (j) person similar to a person described in Subsections [(49)] (53)(a) through (i) as
1350 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1351 Administrative Rulemaking Act.
1352 [(50)] (54) "Mobile home" is as defined in Section 58-56-3 .
1353 [(51)] (55) "Mobile telecommunications service" is as defined in the Mobile
1354 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1355 (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
1356 the technology used, if:
1357 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1358 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1359 (iii) the origination point described in Subsection (56)(a)(i) and the termination point
1360 described in Subsection (56)(a)(ii) are not fixed.
1361 (b) "Mobile wireless service" includes a telecommunications service that is provided by
1362 a commercial mobile radio service provider.
1363 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1364 commission may by rule define "commercial mobile radio service provider."
1365 [(52)] (57) (a) Except as provided in Subsection [(52)] (57)(c), "mobility enhancing
1366 equipment" means equipment that is:
1367 (i) primarily and customarily used to provide or increase the ability to move from one
1368 place to another;
1369 (ii) appropriate for use in a:
1370 (A) home; or
1371 (B) motor vehicle; and
1372 (iii) not generally used by persons with normal mobility.
1373 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of

1374 the equipment described in Subsection [(52)] (57)(a).
1375 (c) Notwithstanding Subsection [(52)] (57)(a), "mobility enhancing equipment" does
1376 not include:
1377 (i) a motor vehicle;
1378 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1379 vehicle manufacturer;
1380 (iii) durable medical equipment; or
1381 (iv) a prosthetic device.
1382 [(53)] (58) "Model 1 seller" means a seller that has selected a certified service provider
1383 as the seller's agent to perform all of the seller's sales and use tax functions for agreement sales
1384 and use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
1385 seller's own purchases.
1386 [(54)] (59) "Model 2 seller" means a seller that:
1387 (a) except as provided in Subsection [(54)] (59)(b), has selected a certified automated
1388 system to perform the seller's sales tax functions for agreement sales and use taxes; and
1389 (b) notwithstanding Subsection [(54)] (59)(a), retains responsibility for remitting all of
1390 the sales tax:
1391 (i) collected by the seller; and
1392 (ii) to the appropriate local taxing jurisdiction.
1393 [(55)] (60) (a) Subject to Subsection [(55)] (60)(b), "model 3 seller" means a seller that
1394 has:
1395 (i) sales in at least five states that are members of the agreement;
1396 (ii) total annual sales revenues of at least $500,000,000;
1397 (iii) a proprietary system that calculates the amount of tax:
1398 (A) for an agreement sales and use tax; and
1399 (B) due to each local taxing jurisdiction; and
1400 (iv) entered into a performance agreement with the governing board of the agreement.
1401 (b) For purposes of Subsection [(55)] (60)(a), "model 3 seller" includes an affiliated

1402 group of sellers using the same proprietary system.
1403 [(56)] (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
1404 [(57)] (62) "Motor vehicle" is as defined in Section 41-1a-102 .
1405 [(58)] (63) "Oil shale" means a group of fine black to dark brown shales containing
1406 bituminous material that yields petroleum upon distillation.
1407 [(59)] (64) (a) "Other fuels" means products that burn independently to produce heat or
1408 energy.
1409 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1410 personal property.
1411 (65) (a) "Paging service" means a telecommunications service that provides
1412 transmission of a coded radio signal for the purpose of activating a specific pager.
1413 (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
1414 includes a transmission by message or sound.
1415 [(60)] (66) "Pawnbroker" is as defined in Section 13-32a-102 .
1416 [(61)] (67) "Pawn transaction" is as defined in Section 13-32a-102 .
1417 [(62)] (68) (a) "Permanently attached to real property" means that for tangible personal
1418 property attached to real property:
1419 (i) the attachment of the tangible personal property to the real property:
1420 (A) is essential to the use of the tangible personal property; and
1421 (B) suggests that the tangible personal property will remain attached to the real
1422 property in the same place over the useful life of the tangible personal property; or
1423 (ii) if the tangible personal property is detached from the real property, the detachment
1424 would:
1425 (A) cause substantial damage to the tangible personal property; or
1426 (B) require substantial alteration or repair of the real property to which the tangible
1427 personal property is attached.
1428 (b) "Permanently attached to real property" includes:
1429 (i) the attachment of an accessory to the tangible personal property if the accessory is:

1430 (A) essential to the operation of the tangible personal property; and
1431 (B) attached only to facilitate the operation of the tangible personal property;
1432 (ii) a temporary detachment of tangible personal property from real property for a repair
1433 or renovation if the repair or renovation is performed where the tangible personal property and
1434 real property are located; or
1435 (iii) an attachment of the following tangible personal property to real property,
1436 regardless of whether the attachment to real property is only through a line that supplies water,
1437 electricity, gas, [telephone] telecommunications service, cable, or supplies a similar item as
1438 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1439 Administrative Rulemaking Act:
1440 (A) property attached to oil, gas, or water pipelines, other than the property listed in
1441 Subsection [(62)] (68)(c)(iii);
1442 (B) a hot water heater;
1443 (C) a water softener system; or
1444 (D) a water filtration system, other than a water filtration system manufactured as part
1445 of a refrigerator.
1446 (c) "Permanently attached to real property" does not include:
1447 (i) the attachment of portable or movable tangible personal property to real property if
1448 that portable or movable tangible personal property is attached to real property only for:
1449 (A) convenience;
1450 (B) stability; or
1451 (C) for an obvious temporary purpose;
1452 (ii) the detachment of tangible personal property from real property other than the
1453 detachment described in Subsection [(62)] (68)(b)(ii); or
1454 (iii) an attachment of the following tangible personal property to real property if the
1455 attachment to real property is only through a line that supplies water, electricity, gas,
1456 [telephone] telecommunications, cable, or supplies a similar item as determined by the
1457 commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative

1458 Rulemaking Act:
1459 (A) a refrigerator;
1460 (B) a washer;
1461 (C) a dryer;
1462 (D) a stove;
1463 (E) a television;
1464 (F) a computer;
1465 (G) a telephone; or
1466 (H) tangible personal property similar to Subsections [(62)] (68)(c)(iii)(A) through (G)
1467 as determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1468 Administrative Rulemaking Act.
1469 [(63)] (69) "Person" includes any individual, firm, partnership, joint venture,
1470 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
1471 city, municipality, district, or other local governmental entity of the state, or any group or
1472 combination acting as a unit.
1473 [(64)] (70) "Place of primary use":
1474 (a) for [telephone] telecommunications service other than mobile telecommunications
1475 service, means the street address representative of where the purchaser's use of the [telephone]
1476 telecommunications service primarily occurs, which shall be:
1477 (i) the residential street address of the purchaser; or
1478 (ii) the primary business street address of the purchaser; or
1479 (b) for mobile telecommunications service, is as defined in the Mobile
1480 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1481 (71) (a) "Postpaid calling service" means a telecommunications service a person obtains
1482 by making a payment on a call-by-call basis:
1483 (i) through the use of a:
1484 (A) bank card;
1485 (B) credit card;

1486 (C) debit card; or
1487 (D) travel card; or
1488 (ii) by a charge made to a telephone number that is not associated with the origination
1489 or termination of the telecommunications service.
1490 (b) "Postpaid calling service" includes a service that would be a prepaid wireless calling
1491 service if the service were exclusively a telecommunications service.
1492 [(65)] (72) "Postproduction" means an activity related to the finishing or duplication of
1493 a medium described in Subsection 59-12-104 [(56)] (55)(a).
1494 (73) "Prepaid calling service" means a telecommunications service:
1495 (a) that allows a purchaser access to telecommunications service that is exclusively
1496 telecommunications service;
1497 (b) that:
1498 (i) is paid for in advance; and
1499 (ii) enables the origination of a call using an:
1500 (A) access number; or
1501 (B) authorization code;
1502 (c) that is dialed:
1503 (i) manually; or
1504 (ii) electronically; and
1505 (d) sold in predetermined units or dollars that decline:
1506 (i) by a known amount; and
1507 (ii) with use.
1508 (74) "Prepaid wireless calling service" means a telecommunications service:
1509 (a) that provides the right to utilize:
1510 (i) mobile wireless service; and
1511 (ii) other service that is not a telecommunications service, including:
1512 (A) the download of a product transferred electronically;
1513 (B) a content service; or

1514 (C) an ancillary service;
1515 (b) that:
1516 (i) is paid for in advance; and
1517 (ii) enables the origination of a call using an:
1518 (A) access number; or
1519 (B) authorization code;
1520 (c) that is dialed:
1521 (i) manually; or
1522 (ii) electronically; and
1523 (d) sold in predetermined units or dollars that decline:
1524 (i) by a known amount; and
1525 (ii) with use.
1526 [(66)] (75) (a) "Prepared food" means:
1527 (i) food:
1528 (A) sold in a heated state; or
1529 (B) heated by a seller;
1530 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1531 item; or
1532 (iii) except as provided in Subsection [(66)] (75)(c), food sold with an eating utensil
1533 provided by the seller, including a:
1534 (A) plate;
1535 (B) knife;
1536 (C) fork;
1537 (D) spoon;
1538 (E) glass;
1539 (F) cup;
1540 (G) napkin; or
1541 (H) straw.

1542 (b) "Prepared food" does not include:
1543 (i) food that a seller only:
1544 (A) cuts;
1545 (B) repackages; or
1546 (C) pasteurizes; or
1547 (ii) (A) the following:
1548 (I) raw egg;
1549 (II) raw fish;
1550 (III) raw meat;
1551 (IV) raw poultry; or
1552 (V) a food containing an item described in Subsections [(66)] (75)(b)(ii)(A)(I) through
1553 (IV); and
1554 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1555 Food and Drug Administration's Food Code that a consumer cook the items described in
1556 Subsection [(66)] (75)(b)(ii)(A) to prevent food borne illness; or
1557 (iii) the following if sold without eating utensils provided by the seller:
1558 (A) food and food ingredients sold by a seller if the seller's proper primary classification
1559 under the 2002 North American Industry Classification System of the federal Executive Office
1560 of the President, Office of Management and Budget, is manufacturing in Sector 311, Food
1561 Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
1562 (B) food and food ingredients sold in an unheated state:
1563 (I) by weight or volume; and
1564 (II) as a single item; or
1565 (C) a bakery item, including:
1566 (I) a bagel;
1567 (II) a bar;
1568 (III) a biscuit;
1569 (IV) bread;

1570 (V) a bun;
1571 (VI) a cake;
1572 (VII) a cookie;
1573 (VIII) a croissant;
1574 (IX) a danish;
1575 (X) a donut;
1576 (XI) a muffin;
1577 (XII) a pastry;
1578 (XIII) a pie;
1579 (XIV) a roll;
1580 (XV) a tart;
1581 (XVI) a torte; or
1582 (XVII) a tortilla.
1583 (c) Notwithstanding Subsection [(66)] (75)(a)(iii), an eating utensil provided by the
1584 seller does not include the following used to transport the food:
1585 (i) a container; or
1586 (ii) packaging.
1587 [(67)] (76) "Prescription" means an order, formula, or recipe that is issued:
1588 (a) (i) orally;
1589 (ii) in writing;
1590 (iii) electronically; or
1591 (iv) by any other manner of transmission; and
1592 (b) by a licensed practitioner authorized by the laws of a state.
1593 [(68)] (77) (a) Except as provided in Subsection [(68)] (77)(b)(ii) or (iii), "prewritten
1594 computer software" means computer software that is not designed and developed:
1595 (i) by the author or other creator of the computer software; and
1596 (ii) to the specifications of a specific purchaser.
1597 (b) "Prewritten computer software" includes:

1598 (i) a prewritten upgrade to computer software if the prewritten upgrade to the
1599 computer software is not designed and developed:
1600 (A) by the author or other creator of the computer software; and
1601 (B) to the specifications of a specific purchaser;
1602 (ii) notwithstanding Subsection [(68)] (77)(a), computer software designed and
1603 developed by the author or other creator of the computer software to the specifications of a
1604 specific purchaser if the computer software is sold to a person other than the purchaser; or
1605 (iii) notwithstanding Subsection [(68)] (77)(a) and except as provided in Subsection
1606 [(68)] (77)(c), prewritten computer software or a prewritten portion of prewritten computer
1607 software:
1608 (A) that is modified or enhanced to any degree; and
1609 (B) if the modification or enhancement described in Subsection [(68)] (77)(b)(iii)(A) is
1610 designed and developed to the specifications of a specific purchaser.
1611 (c) Notwithstanding Subsection [(68)] (77)(b)(iii), "prewritten computer software" does
1612 not include a modification or enhancement described in Subsection [(68)] (77)(b)(iii) if the
1613 charges for the modification or enhancement are:
1614 (i) reasonable; and
1615 (ii) separately stated on the invoice or other statement of price provided to the
1616 purchaser.
1617 (78) (a) "Private communication service" means a telecommunications service:
1618 (i) that entitles a customer to exclusive or priority use of one or more communications
1619 channels between or among termination points; and
1620 (ii) regardless of the manner in which the one or more communications channels are
1621 connected.
1622 (b) "Private communications service" includes the following provided in connection
1623 with the use of one or more communications channels:
1624 (i) an extension line;
1625 (ii) a station; or

1626 (iii) switching capacity.
1627 [(69)] (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
1628 (i) artificially replace a missing portion of the body;
1629 (ii) prevent or correct a physical deformity or physical malfunction; or
1630 (iii) support a weak or deformed portion of the body.
1631 (b) "Prosthetic device" includes:
1632 (i) parts used in the repairs or renovation of a prosthetic device;
1633 (ii) replacement parts for a prosthetic device; [or]
1634 (iii) a dental prosthesis[.]; or
1635 (iv) a hearing aid.
1636 (c) "Prosthetic device" does not include:
1637 (i) corrective eyeglasses; or
1638 (ii) contact lenses[; or].
1639 [(iii) hearing aids.]
1640 [(70)] (80) (a) "Protective equipment" means an item:
1641 (i) for human wear; and
1642 (ii) that is:
1643 (A) designed as protection:
1644 (I) to the wearer against injury or disease; or
1645 (II) against damage or injury of other persons or property; and
1646 (B) not suitable for general use.
1647 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1648 commission shall make rules:
1649 (i) listing the items that constitute "protective equipment"; and
1650 (ii) that are consistent with the list of items that constitute "protective equipment" under
1651 the agreement.
1652 [(71)] (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
1653 written or printed matter, other than a photocopy:

1654 (i) regardless of:
1655 (A) characteristics;
1656 (B) copyright;
1657 (C) form;
1658 (D) format;
1659 (E) method of reproduction; or
1660 (F) source; and
1661 (ii) made available in printed or electronic format.
1662 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1663 commission may by rule define the term "photocopy."
1664 [(72)] (82) (a) "Purchase price" and "sales price" mean the total amount of
1665 consideration:
1666 (i) valued in money; and
1667 (ii) for which tangible personal property, a product transferred electronically, or
1668 services are:
1669 (A) sold;
1670 (B) leased; or
1671 (C) rented.
1672 (b) "Purchase price" and "sales price" include:
1673 (i) the seller's cost of the tangible personal property, a product transferred
1674 electronically, or services sold;
1675 (ii) expenses of the seller, including:
1676 (A) the cost of materials used;
1677 (B) a labor cost;
1678 (C) a service cost;
1679 (D) interest;
1680 (E) a loss;
1681 (F) the cost of transportation to the seller; or

1682 (G) a tax imposed on the seller; [or]
1683 (iii) a charge by the seller for any service necessary to complete the sale[.]; or
1684 (iv) consideration a seller receives from a person other than the purchaser if:
1685 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1686 and
1687 (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
1688 price reduction or discount on the sale;
1689 (B) the seller has an obligation to pass the price reduction or discount through to the
1690 purchaser;
1691 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1692 the seller at the time of the sale to the purchaser; and
1693 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1694 seller to claim a price reduction or discount; and
1695 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1696 coupon, or other documentation with the understanding that the person other than the seller will
1697 reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1698 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1699 organization allowed a price reduction or discount, except that a preferred customer card that is
1700 available to any patron of a seller does not constitute membership in a group or organization
1701 allowed a price reduction or discount; or
1702 (III) the price reduction or discount is identified as a third party price reduction or
1703 discount on the:
1704 (Aa) invoice the purchaser receives; or
1705 (Bb) certificate, coupon, or other documentation the purchaser presents.
1706 (c) "Purchase price" and "sales price" do not include:
1707 (i) a discount:
1708 (A) in a form including:
1709 (I) cash;

1710 (II) term; or
1711 (III) coupon;
1712 (B) that is allowed by a seller;
1713 (C) taken by a purchaser on a sale; and
1714 (D) that is not reimbursed by a third party; or
1715 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1716 provided to the purchaser:
1717 [(A) the amount of a trade-in;]
1718 [(B)] (A) the following from credit extended on the sale of tangible personal property
1719 or services:
1720 (I) [interest charges] a carrying charge;
1721 (II) a financing [charges] charge; or
1722 (III) [carrying charges] an interest charge;
1723 [(C) a tax or fee legally imposed directly on the consumer;]
1724 [(D)] (B) a delivery charge; [or]
1725 [(E)] (C) an installation charge[.];
1726 (D) a manufacturer rebate on a motor vehicle; or
1727 (E) a tax or fee legally imposed directly on the consumer.
1728 [(73)] (83) "Purchaser" means a person to whom:
1729 (a) a sale of tangible personal property is made; [or]
1730 (b) a product is transferred electronically; or
1731 [(b)] (c) a service is furnished.
1732 [(74)] (84) "Regularly rented" means:
1733 (a) rented to a guest for value three or more times during a calendar year; or
1734 (b) advertised or held out to the public as a place that is regularly rented to guests for
1735 value.
1736 [(75)] (85) "Renewable energy" means:
1737 (a) biomass energy;

1738 (b) hydroelectric energy;
1739 (c) geothermal energy;
1740 (d) solar energy; or
1741 (e) wind energy.
1742 [(76)] (86) (a) "Renewable energy production facility" means a facility that:
1743 (i) uses renewable energy to produce electricity; and
1744 (ii) has a production capacity of 20 kilowatts or greater.
1745 (b) A facility is a renewable energy production facility regardless of whether the facility
1746 is:
1747 (i) connected to an electric grid; or
1748 (ii) located on the premises of an electricity consumer.
1749 [(77)] (87) "Rental" is as defined in Subsection [(44)] (48).
1750 [(78)] (88) "Repairs or renovations of tangible personal property" means:
1751 (a) a repair or renovation of tangible personal property that is not permanently attached
1752 to real property; or
1753 (b) attaching tangible personal property or a product that is transferred electronically to
1754 other tangible personal property if the other tangible personal property to which the tangible
1755 personal property or product that is transferred electronically is attached is not permanently
1756 attached to real property.
1757 [(79)] (89) "Research and development" means the process of inquiry or
1758 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1759 process of preparing those devices, technologies, or applications for marketing.
1760 (90) (a) "Residential telecommunications services" means a telecommunications service
1761 or an ancillary service that is provided to an individual for personal use:
1762 (i) at a residential address; or
1763 (ii) at an institution, including a nursing home or a school, if the telecommunications
1764 service or ancillary service is provided to and paid for by the individual residing at the institution
1765 rather than the institution.

1766 (b) For purposes of Subsection (90)(a), a residential address includes an:
1767 (i) apartment; or
1768 (ii) other individual dwelling unit.
1769 [(80)] (91) "Residential use" means the use in or around a home, apartment building,
1770 sleeping quarters, and similar facilities or accommodations.
1771 [(81)] (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
1772 other than:
1773 (a) resale;
1774 (b) sublease; or
1775 (c) subrent.
1776 [(82)] (93) (a) "Retailer" means any person engaged in a regularly organized business in
1777 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
1778 who is selling to the user or consumer and not for resale.
1779 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1780 engaged in the business of selling to users or consumers within the state.
1781 [(83)] (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1782 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1783 Subsection 59-12-103 (1), for consideration.
1784 (b) "Sale" includes:
1785 (i) installment and credit sales;
1786 (ii) any closed transaction constituting a sale;
1787 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1788 chapter;
1789 (iv) any transaction if the possession of property is transferred but the seller retains the
1790 title as security for the payment of the price; and
1791 (v) any transaction under which right to possession, operation, or use of any article of
1792 tangible personal property is granted under a lease or contract and the transfer of possession
1793 would be taxable if an outright sale were made.

1794 [(84)] (95) "Sale at retail" is as defined in Subsection [(81)] (92).
1795 [(85)] (96) "Sale-leaseback transaction" means a transaction by which title to tangible
1796 personal property or a product transferred electronically that is subject to a tax under this
1797 chapter is transferred:
1798 (a) by a purchaser-lessee;
1799 (b) to a lessor;
1800 (c) for consideration; and
1801 (d) if:
1802 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1803 of the tangible personal property or product transferred electronically;
1804 (ii) the sale of the tangible personal property or product transferred electronically to the
1805 lessor is intended as a form of financing:
1806 (A) for the tangible personal property or product transferred electronically; and
1807 (B) to the purchaser-lessee; and
1808 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee is
1809 required to:
1810 (A) capitalize the tangible personal property or product transferred electronically for
1811 financial reporting purposes; and
1812 (B) account for the lease payments as payments made under a financing arrangement.
1813 [(86)] (97) "Sales price" is as defined in Subsection [(72)] (82).
1814 [(87)] (98) (a) "Sales relating to schools" means the following sales by, amounts paid
1815 to, or amounts charged by a school:
1816 (i) sales that are directly related to the school's educational functions or activities
1817 including:
1818 (A) the sale of:
1819 (I) textbooks;
1820 (II) textbook fees;
1821 (III) laboratory fees;

1822 (IV) laboratory supplies; or
1823 (V) safety equipment;
1824 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1825 that:
1826 (I) a student is specifically required to wear as a condition of participation in a
1827 school-related event or school-related activity; and
1828 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1829 place of ordinary clothing;
1830 (C) sales of the following if the net or gross revenues generated by the sales are
1831 deposited into a school district fund or school fund dedicated to school meals:
1832 (I) food and food ingredients; or
1833 (II) prepared food; or
1834 (D) transportation charges for official school activities; or
1835 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1836 event or school-related activity.
1837 (b) "Sales relating to schools" does not include:
1838 (i) bookstore sales of items that are not educational materials or supplies;
1839 (ii) except as provided in Subsection [(87)] (98)(a)(i)(B):
1840 (A) clothing;
1841 (B) clothing accessories or equipment;
1842 (C) protective equipment; or
1843 (D) sports or recreational equipment; or
1844 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1845 event or school-related activity if the amounts paid or charged are passed through to a person:
1846 (A) other than a:
1847 (I) school;
1848 (II) nonprofit organization authorized by a school board or a governing body of a
1849 private school to organize and direct a competitive secondary school activity; or

1850 (III) nonprofit association authorized by a school board or a governing body of a
1851 private school to organize and direct a competitive secondary school activity; and
1852 (B) that is required to collect sales and use taxes under this chapter.
1853 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1854 commission may make rules defining the term "passed through."
1855 [(88)] (99) For purposes of this section and Section 59-12-104 , "school":
1856 (a) means:
1857 (i) an elementary school or a secondary school that:
1858 (A) is a:
1859 (I) public school; or
1860 (II) private school; and
1861 (B) provides instruction for one or more grades kindergarten through 12; or
1862 (ii) a public school district; and
1863 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1864 [(89)] (100) "Seller" means a person that makes a sale, lease, or rental of:
1865 (a) tangible personal property; [or]
1866 (b) a product transferred electronically; or
1867 [(b)] (c) a service.
1868 [(90)] (101) (a) "Semiconductor fabricating, processing, research, or development
1869 materials" means tangible personal property or a product transferred electronically if the
1870 tangible personal property or product transferred electronically is:
1871 (i) used primarily in the process of:
1872 (A) (I) manufacturing a semiconductor;
1873 (II) fabricating a semiconductor; or
1874 (III) research or development of a:
1875 (Aa) semiconductor; or
1876 (Bb) semiconductor manufacturing process; or
1877 (B) maintaining an environment suitable for a semiconductor; or

1878 (ii) consumed primarily in the process of:
1879 (A) (I) manufacturing a semiconductor;
1880 (II) fabricating a semiconductor; or
1881 (III) research or development of a:
1882 (Aa) semiconductor; or
1883 (Bb) semiconductor manufacturing process; or
1884 (B) maintaining an environment suitable for a semiconductor.
1885 (b) "Semiconductor fabricating, processing, research, or development materials"
1886 includes:
1887 (i) parts used in the repairs or renovations of tangible personal property or a product
1888 transferred electronically described in Subsection [(90)] (101)(a); or
1889 (ii) a chemical, catalyst, or other material used to:
1890 (A) produce or induce in a semiconductor a:
1891 (I) chemical change; or
1892 (II) physical change;
1893 (B) remove impurities from a semiconductor; or
1894 (C) improve the marketable condition of a semiconductor.
1895 [(91)] (102) "Senior citizen center" means a facility having the primary purpose of
1896 providing services to the aged as defined in Section 62A-3-101 .
1897 [(92)] (103) "Simplified electronic return" means the electronic return:
1898 (a) described in Section 318(C) of the agreement; and
1899 (b) approved by the governing board of the agreement.
1900 [(93)] (104) "Solar energy" means the sun used as the sole source of energy for
1901 producing electricity.
1902 [(94)] (105) (a) "Sports or recreational equipment" means an item:
1903 (i) designed for human use; and
1904 (ii) that is:
1905 (A) worn in conjunction with:

1906 (I) an athletic activity; or
1907 (II) a recreational activity; and
1908 (B) not suitable for general use.
1909 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1910 commission shall make rules:
1911 (i) listing the items that constitute "sports or recreational equipment"; and
1912 (ii) that are consistent with the list of items that constitute "sports or recreational
1913 equipment" under the agreement.
1914 [(95)] (106) "State" means the state of Utah, its departments, and agencies.
1915 [(96)] (107) "Storage" means any keeping or retention of tangible personal property or
1916 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
1917 except sale in the regular course of business.
1918 [(97)] (108) (a) Except as provided in Subsection (108)(c), "[Tangible] tangible
1919 personal property" means personal property that:
1920 (i) may be:
1921 (A) seen;
1922 (B) weighed;
1923 (C) measured;
1924 (D) felt; or
1925 (E) touched; or
1926 (ii) is in any manner perceptible to the senses.
1927 (b) "Tangible personal property" includes:
1928 (i) electricity;
1929 (ii) water;
1930 (iii) gas;
1931 (iv) steam; or
1932 (v) prewritten computer software.
1933 (c) "Tangible personal property" does not include a product that is transferred

1934 electronically.
1935 [(98)] (109) "Tar sands" means impregnated sands that yield mixtures of liquid
1936 hydrocarbon and require further processing other than mechanical blending before becoming
1937 finished petroleum products.
1938 [(99)] (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1939 software" means an item listed in Subsection [(99)] (110)(b) if that item is purchased or leased
1940 primarily to enable or facilitate one or more of the following to function:
1941 (i) telecommunications switching or routing equipment, machinery, or software; or
1942 (ii) telecommunications transmission equipment, machinery, or software.
1943 (b) The following apply to Subsection [(99)] (110)(a):
1944 (i) a pole;
1945 (ii) software;
1946 (iii) a supplementary power supply;
1947 (iv) temperature or environmental equipment or machinery;
1948 (v) test equipment;
1949 (vi) a tower; or
1950 (vii) equipment, machinery, or software that functions similarly to an item listed in
1951 Subsections [(99)] (110)(b)(i) through (vi) as determined by the commission by rule made in
1952 accordance with Subsection [(99)] (110)(c).
1953 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1954 commission may by rule define what constitutes equipment, machinery, or software that
1955 functions similarly to an item listed in Subsections [(99)] (110)(b)(i) through (vi).
1956 [(100)] (111) "Telecommunications equipment, machinery, or software required for 911
1957 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1958 Sec. 20.18.
1959 [(101)] (112) "Telecommunications maintenance or repair equipment, machinery, or
1960 software" means equipment, machinery, or software purchased or leased primarily to maintain
1961 or repair one or more of the following, regardless of whether the equipment, machinery, or

1962 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1963 of the following:
1964 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1965 (b) telecommunications switching or routing equipment, machinery, or software; or
1966 (c) telecommunications transmission equipment, machinery, or software.
1967 (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
1968 transmission of audio, data, video, voice, or any other information or signal to a point, or
1969 among or between points.
1970 (b) "Telecommunications service" includes:
1971 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1972 processing application is used to act:
1973 (A) on the code, form, or protocol of the content;
1974 (B) for the purpose of electronic conveyance, routing, or transmission; and
1975 (C) regardless of whether the service:
1976 (I) is referred to as voice over Internet protocol service; or
1977 (II) is classified by the Federal Communications Commission as enhanced or value
1978 added;
1979 (ii) an 800 service;
1980 (iii) a 900 service;
1981 (iv) a fixed wireless service;
1982 (v) a mobile wireless service;
1983 (vi) a postpaid calling service;
1984 (vii) a prepaid calling service;
1985 (viii) a prepaid wireless calling service; or
1986 (ix) a private communications service.
1987 (c) "Telecommunications service" does not include:
1988 (i) advertising, including directory advertising;
1989 (ii) an ancillary service;

1990 (iii) a billing and collection service provided to a third party;
1991 (iv) a data processing and information service if:
1992 (A) the data processing and information service allows data to be:
1993 (I) (Aa) acquired;
1994 (Bb) generated;
1995 (Cc) processed;
1996 (Dd) retrieved; or
1997 (Ee) stored; and
1998 (II) delivered by an electronic transmission to a purchaser; and
1999 (B) the purchaser's primary purpose for the underlying transaction is the processed data
2000 or information;
2001 (v) installation or maintenance of the following on a customer's premises:
2002 (A) equipment; or
2003 (B) wiring;
2004 (vi) Internet access service;
2005 (vii) a paging service;
2006 (viii) a product transferred electronically, including:
2007 (A) music;
2008 (B) reading material;
2009 (C) a ring tone;
2010 (D) software; or
2011 (E) video;
2012 (ix) a radio and television audio and video programming service:
2013 (A) regardless of the medium; and
2014 (B) including:
2015 (I) furnishing conveyance, routing, or transmission of a television audio and video
2016 programming service by a programming service provider;
2017 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or

2018 (III) audio and video programming services delivered by a commercial mobile radio
2019 service provider as defined in 47 C.F.R. Sec. 20.3;
2020 (x) a value-added nonvoice data service; or
2021 (xi) tangible personal property.
2022 [(106)] (114) (a) "[Telephone] Telecommunications service provider" means a person
2023 that:
2024 (i) owns, controls, operates, or manages a [telephone] telecommunications service; and
2025 (ii) engages in an activity described in Subsection [(106)] (114)(a)(i) for the shared use
2026 with or resale to any person of the [telephone] telecommunications service.
2027 (b) A person described in Subsection [(106)] (114)(a) is a [telephone]
2028 telecommunications service provider whether or not the Public Service Commission of Utah
2029 regulates:
2030 (i) that person; or
2031 (ii) the [telephone] telecommunications service that the person owns, controls,
2032 operates, or manages.
2033 [(102)] (115) (a) "Telecommunications switching or routing equipment, machinery, or
2034 software" means an item listed in Subsection [(102)] (115)(b) if that item is purchased or leased
2035 primarily for switching or routing:
2036 (i) an ancillary service;
2037 [(i) voice] (ii) data communications;
2038 [(ii) data] (iii) voice communications; or
2039 [(iii) telephone] (iv) telecommunications service.
2040 (b) The following apply to Subsection [(102)] (115)(a):
2041 (i) a bridge;
2042 (ii) a computer;
2043 (iii) a cross connect;
2044 (iv) a modem;
2045 (v) a multiplexer;

2046 (vi) plug in circuitry;
2047 (vii) a router;
2048 (viii) software;
2049 (ix) a switch; or
2050 (x) equipment, machinery, or software that functions similarly to an item listed in
2051 Subsections [(102)] (115)(b)(i) through (ix) as determined by the commission by rule made in
2052 accordance with Subsection [(102)] (115)(c).
2053 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2054 commission may by rule define what constitutes equipment, machinery, or software that
2055 functions similarly to an item listed in Subsections [(102)] (115)(b)(i) through (ix).
2056 [(103)] (116) (a) "Telecommunications transmission equipment, machinery, or
2057 software" means an item listed in Subsection [(103)] (116)(b) if that item is purchased or leased
2058 primarily for sending, receiving, or transporting:
2059 (i) an ancillary service;
2060 [(i) voice] (ii) data communications;
2061 [(ii) data] (iii) voice communications; or
2062 [(iii) telephone] (iv) telecommunications service.
2063 (b) The following apply to Subsection [(103)] (116)(a):
2064 (i) an amplifier;
2065 (ii) a cable;
2066 (iii) a closure;
2067 (iv) a conduit;
2068 (v) a controller;
2069 (vi) a duplexer;
2070 (vii) a filter;
2071 (viii) an input device;
2072 (ix) an input/output device;
2073 (x) an insulator;

2074 (xi) microwave machinery or equipment;
2075 (xii) an oscillator;
2076 (xiii) an output device;
2077 (xiv) a pedestal;
2078 (xv) a power converter;
2079 (xvi) a power supply;
2080 (xvii) a radio channel;
2081 (xviii) a radio receiver;
2082 (xix) a radio transmitter;
2083 (xx) a repeater;
2084 (xxi) software;
2085 (xxii) a terminal;
2086 (xxiii) a timing unit;
2087 (xxiv) a transformer;
2088 (xxv) a wire; or
2089 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
2090 Subsections [(103)] (116)(b)(i) through (xxv) as determined by the commission by rule made in
2091 accordance with Subsection [(103)] (116)(c).
2092 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2093 commission may by rule define what constitutes equipment, machinery, or software that
2094 functions similarly to an item listed in Subsections [(103)] (116)(b)(i) through (xxv).
2095 [(104) (a) "Telephone service" means a two-way transmission:]
2096 [(i) by:]
2097 [(A) wire;]
2098 [(B) radio;]
2099 [(C) lightwave; or]
2100 [(D) other electromagnetic means; and]
2101 [(ii) of one or more of the following:]

2102 [(A) a sign;]
2103 [(B) a signal;]
2104 [(C) writing;]
2105 [(D) an image;]
2106 [(E) sound;]
2107 [(F) a message;]
2108 [(G) data; or]
2109 [(H) other information of any nature.]
2110 [(b) "Telephone service" includes:]
2111 [(i) mobile telecommunications service;]
2112 [(ii) private communications service; or]
2113 [(iii) automated digital telephone answering service.]
2114 [(c) "Telephone service" does not include a service or a transaction that a state or a
2115 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
2116 Tax Freedom Act, Pub. L. No. 105-277.]
2117 [(105) Notwithstanding where a call is billed or paid, "telephone service address"
2118 means:]
2119 [(a) if the location described in this Subsection (105)(a) is known, the location of the
2120 telephone service equipment:]
2121 [(i) to which a call is charged; and]
2122 [(ii) from which the call originates or terminates;]
2123 [(b) if the location described in Subsection (105)(a) is not known but the location
2124 described in this Subsection (105)(b) is known, the location of the origination point of the signal
2125 of the telephone service first identified by:]
2126 [(i) the telecommunications system of the seller; or]
2127 [(ii) if the system used to transport the signal is not that of the seller, information
2128 received by the seller from its service provider; or]
2129 [(c) if the locations described in Subsection (105)(a) or (b) are not known, the location

2130 of a purchaser's primary place of use.]
2131 [(107)] (117) "Tobacco" means:
2132 (a) a cigarette;
2133 (b) a cigar;
2134 (c) chewing tobacco;
2135 (d) pipe tobacco; or
2136 (e) any other item that contains tobacco.
2137 [(108)] (118) "Unassisted amusement device" means an amusement device, skill device,
2138 or ride device that is started and stopped by the purchaser or renter of the right to use or
2139 operate the amusement device, skill device, or ride device.
2140 [(109)] (119) (a) "Use" means the exercise of any right or power over tangible personal
2141 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
2142 incident to the ownership or the leasing of that tangible personal property, [item] product
2143 transferred electronically, or service.
2144 (b) "Use" does not include the sale, display, demonstration, or trial of [that property]
2145 tangible personal property, a product transferred electronically, or a service in the regular
2146 course of business and held for resale.
2147 (120) "Value-added nonvoice data service" means a service:
2148 (a) that otherwise meets the definition of a telecommunications service except that a
2149 computer processing application is used to act primarily for a purpose other than conveyance,
2150 routing, or transmission; and
2151 (b) with respect to which a computer processing application is used to act on data or
2152 information:
2153 (i) code;
2154 (ii) content;
2155 (iii) form; or
2156 (iv) protocol.
2157 [(110)] (121) (a) Subject to Subsection [(110)] (121)(b), "vehicle" means the following

2158 that are required to be titled, registered, or titled and registered:
2159 (i) an aircraft as defined in Section 72-10-102 ;
2160 (ii) a vehicle as defined in Section 41-1a-102 ;
2161 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
2162 (iv) a vessel as defined in Section 41-1a-102 .
2163 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
2164 (i) a vehicle described in Subsection [(110)] (121)(a); or
2165 (ii) (A) a locomotive;
2166 (B) a freight car;
2167 (C) railroad work equipment; or
2168 (D) other railroad rolling stock.
2169 [(111)] (122) "Vehicle dealer" means a person engaged in the business of buying,
2170 selling, or exchanging a vehicle as defined in Subsection [(110)] (121).
2171 (123) (a) "Vertical service" means an ancillary service that:
2172 (i) is offered in connection with one or more telecommunications services; and
2173 (ii) offers an advanced calling feature that allows a customer to:
2174 (A) identify a caller; and
2175 (B) manage multiple calls and call connections.
2176 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
2177 conference bridging service.
2178 (124) (a) "Voice mail service" means an ancillary service that enables a customer to
2179 receive, send, or store a recorded message.
2180 (b) "Voice mail service" does not include a vertical service that a customer is required
2181 to have in order to utilize a voice mail service.
2182 [(112)] (125) (a) Except as provided in Subsection [(112)] (125)(b), "waste energy
2183 facility" means a facility that generates electricity:
2184 (i) using as the primary source of energy waste materials that would be placed in a
2185 landfill or refuse pit if it were not used to generate electricity, including:

2186 (A) tires;
2187 (B) waste coal; or
2188 (C) oil shale; and
2189 (ii) in amounts greater than actually required for the operation of the facility.
2190 (b) "Waste energy facility" does not include a facility that incinerates:
2191 (i) municipal solid waste;
2192 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
2193 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2194 [(113)] (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
2195 [(114)] (127) "Wind energy" means wind used as the sole source of energy to produce
2196 electricity.
2197 [(115)] (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
2198 geographic location by the United States Postal Service.
2199 Section 9. Section 59-12-102.3 is enacted to read:
2200 59-12-102.3. Authority to enter into agreement -- Delegates.
2201 (1) The commission may apply to the governing board for the state to become a party
2202 to the agreement.
2203 (2) If the state becomes a party to the agreement, the commission may:
2204 (a) establish standards for certification of a:
2205 (i) certified automated system; and
2206 (ii) certified service provider;
2207 (b) act jointly with other states that are parties to the agreement to establish
2208 performance standards for multistate sellers; and
2209 (c) take other actions reasonably required to implement provisions of the agreement:
2210 (i) if those actions are not in conflict with statute; and
2211 (ii) subject to Subsection (1)(c)(i), including:
2212 (A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2213 adopting administrative rules; and

2214 (B) in furtherance of the agreement, jointly procuring goods or services with other
2215 states that are parties to the agreement.
2216 (3) Subject to Subsection (4), delegates shall be appointed to the governing board of
2217 the agreement to:
2218 (a) assist in implementing the provisions of the agreement; and
2219 (b) address other matters as determined by the governing board.
2220 (4) Delegates shall be appointed as follows:
2221 (a) one delegate shall be a member of the House of Representatives appointed by the
2222 speaker of the House of Representatives;
2223 (b) one delegate shall be a member of the Senate appointed by the president of the
2224 Senate; and
2225 (c) two delegates shall be appointed by the governor, at least one of whom shall be
2226 from the commission.
2227 Section 10. Section 59-12-103 is amended to read:
2228 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
2229 tax revenues.
2230 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
2231 charged for the following transactions:
2232 (a) retail sales of tangible personal property made within the state;
2233 (b) amounts paid for:
2234 [(i) to a:]
2235 [(A) telephone service provider regardless of whether the telephone service provider is
2236 municipally or privately owned; or]
2237 [(B) telegraph corporation:]
2238 [(I) as defined in Section 54-2-1 ; and]
2239 [(II) regardless of whether the telegraph corporation is municipally or privately owned;
2240 and]
2241 [(ii) for:]

2242 [(A)] (i) [telephone] telecommunications service, other than mobile telecommunications
2243 service, that originates and terminates within the boundaries of this state;
2244 [(B)] (ii) mobile telecommunications service that originates and terminates within the
2245 boundaries of one state only to the extent permitted by the Mobile Telecommunications
2246 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
2247 [(C) telegraph service;]
2248 (iii) an ancillary service associated with a:
2249 (A) telecommunications service described in Subsection (1)(b)(i); or
2250 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
2251 (c) sales of the following for commercial use:
2252 (i) gas;
2253 (ii) electricity;
2254 (iii) heat;
2255 (iv) coal;
2256 (v) fuel oil; or
2257 (vi) other fuels;
2258 (d) sales of the following for residential use:
2259 (i) gas;
2260 (ii) electricity;
2261 (iii) heat;
2262 (iv) coal;
2263 (v) fuel oil; or
2264 (vi) other fuels;
2265 (e) sales of prepared food;
2266 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
2267 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
2268 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs,
2269 races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit

2270 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
2271 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis
2272 courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
2273 horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition,
2274 cultural, or athletic activity;
2275 (g) amounts paid or charged for services for repairs or renovations of tangible personal
2276 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
2277 (i) the tangible personal property; and
2278 (ii) parts used in the repairs or renovations of the tangible personal property described
2279 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
2280 of that tangible personal property;
2281 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
2282 assisted cleaning or washing of tangible personal property;
2283 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2284 accommodations and services that are regularly rented for less than 30 consecutive days;
2285 (j) amounts paid or charged for laundry or dry cleaning services;
2286 (k) amounts paid or charged for leases or rentals of tangible personal property if within
2287 this state the tangible personal property is:
2288 (i) stored;
2289 (ii) used; or
2290 (iii) otherwise consumed;
2291 (l) amounts paid or charged for tangible personal property if within this state the
2292 tangible personal property is:
2293 (i) stored;
2294 (ii) used; or
2295 (iii) consumed; [and]
2296 (m) amounts paid or charged for prepaid telephone calling cards[.]; and
2297 (n) amounts paid or charged for a sale:

2298 (i) (A) of a product that:
2299 (I) is transferred electronically; and
2300 (II) would be subject to a tax under this chapter if the product was transferred in a
2301 manner other than electronically; or
2302 (B) of a repair or renovation of a product that:
2303 (I) is transferred electronically; and
2304 (II) would be subject to a tax under this chapter if the product was transferred in a
2305 manner other than electronically; and
2306 (ii) regardless of whether the sale provides:
2307 (A) a right of permanent use of the product; or
2308 (B) a right to use the product that is less than a permanent use, including a right:
2309 (I) for a definite or specified length of time; and
2310 (II) that terminates upon the occurrence of a condition.
2311 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
2312 is imposed on a transaction described in Subsection (1) equal to the sum of:
2313 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2314 (A) 4.65%; and
2315 (B) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2316 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2317 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2318 State Sales and Use Tax Act; and
2319 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2320 transaction under this chapter other than this part.
2321 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
2322 on a transaction described in Subsection (1)(d) equal to the sum of:
2323 (i) a state tax imposed on the transaction at a tax rate of 2%; and
2324 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2325 transaction under this chapter other than this part.

2326 (c) Except as provided in Subsection (2)(d) or (e), beginning on January 1, 2007, a
2327 state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
2328 equal to the sum of:
2329 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2330 a tax rate of 1.75%; and
2331 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2332 amounts paid or charged for food and food ingredients under this chapter other than this part.
2333 [(d) Except as provided in Subsection (2)(e), if a seller collects a tax in accordance with
2334 Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state tax and a local
2335 tax is imposed on the transaction equal to the sum of:]
2336 [(i) a state tax imposed on the transaction at a tax rate of:]
2337 [(A) 4.65% for a transaction other than a transaction described in Subsection
2338 (2)(d)(i)(B) or (2)(d)(i)(C);]
2339 [(B) 2% for a transaction described in Subsection (1)(d); or]
2340 [(C) beginning on January 1, 2007, 1.75% on the amounts paid or charged for food and
2341 food ingredients; and]
2342 [(ii) a local tax imposed on the transaction at a tax rate equal to the sum of the
2343 following tax rates:]
2344 [(A) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
2345 and towns in the state impose the tax authorized by Section 59-12-204 ; and]
2346 [(B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
2347 state impose the tax authorized by Section 59-12-1102 .]
2348 [(e)] (d) (i) [A state tax and a local tax is imposed on an entire] For a bundled
2349 transaction [as provided in this Subsection (2)(e) if the bundled transaction] that is attributable
2350 to food and food ingredients and tangible personal property other than food and food
2351 ingredients[. (ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is
2352 collected by a seller other than a seller that collects a tax in accordance with Subsection
2353 59-12-107 (1)(b), beginning on January 1, 2007], a state tax and a local tax is imposed on the

2354 entire bundled transaction equal to the sum of:
2355 (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
2356 (I) the tax rate described in Subsection (2)(a)(i)(A); and
2357 (II) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2358 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2359 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2360 State Sales and Use Tax Act; and
2361 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2362 described in Subsection (2)(a)(ii).
2363 [(iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
2364 a seller in accordance with Subsection 59-12-107 (1)(b), beginning on January 1, 2007, a state
2365 tax and a local tax is imposed on the entire bundled transaction equal to the sum of:]
2366 [(A) a state tax imposed on the entire bundled transaction at the tax rate described in
2367 Subsection (2)(d)(i)(A); and]
2368 [(B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
2369 of the following tax rates:]
2370 [(I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
2371 and towns in the state impose the tax authorized by Section 59-12-204 ; and]
2372 [(II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
2373 state impose the tax authorized by Section 59-12-1102 .]
2374 (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
2375 transaction described in Subsection (2)(d)(i):
2376 (A) if the sales price of the bundled transaction is attributable to tangible personal
2377 property, a product, or a service that is subject to taxation under this chapter and tangible
2378 personal property, a product, or service that is not subject to taxation under this chapter, the
2379 entire bundled transaction is subject to taxation under this chapter unless:
2380 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2381 personal property, product, or service that is not subject to taxation under this chapter from the

2382 books and records the seller keeps in the seller's regular course of business; or
2383 (II) state or federal law provides otherwise; or
2384 (B) if the sales price of a bundled transaction is attributable to two or more items of
2385 tangible personal property, products, or services that are subject to taxation under this chapter
2386 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2387 higher tax rate unless:
2388 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2389 personal property, product, or service that is subject to taxation under this chapter at the lower
2390 tax rate from the books and records the seller keeps in the seller's regular course of business; or
2391 (II) state or federal law provides otherwise.
2392 (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
2393 seller's regular course of business includes books and records the seller keeps in the regular
2394 course of business for nontax purposes.
2395 [(f)] (e) Subject to Subsections (2)[(g)] (f) and [(h)] (g), a tax rate repeal or tax rate
2396 change for a tax rate imposed under the following shall take effect on the first day of a calendar
2397 quarter:
2398 (i) Subsection (2)(a)(i)(A);
2399 (ii) Subsection (2)(b)(i);
2400 (iii) Subsection (2)(c)(i); or
2401 (iv) Subsection (2)(d)(i)(A)(I)[;].
2402 [(v) Subsection (2)(e)(ii)(A); or]
2403 [(vi) Subsection (2)(e)(iii)(A).]
2404 [(g)] (f) (i) [For a transaction described in Subsection (2)(g)(iii), a] A tax rate increase
2405 shall take effect on the first day of the first billing period that begins after the effective date of
2406 the tax rate increase if the billing period for the transaction begins before the effective date of a
2407 tax rate increase imposed under:
2408 (A) Subsection (2)(a)(i)(A);
2409 (B) Subsection (2)(b)(i);

2410 (C) Subsection (2)(c)(i); or
2411 (D) Subsection (2)(d)(i)(A)(I)[;].
2412 [(E) Subsection (2)(e)(ii)(A); or]
2413 [(F) Subsection (2)(e)(iii)(A).]
2414 (ii) [For a transaction described in Subsection (2)(g)(iii), the] The repeal of a tax or a
2415 tax rate decrease shall take effect on the first day of the last billing period that began before the
2416 effective date of the repeal of the tax or the tax rate decrease if the billing period for the
2417 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
2418 imposed under:
2419 (A) Subsection (2)(a)(i)(A);
2420 (B) Subsection (2)(b)(i);
2421 (C) Subsection (2)(c)(i); or
2422 (D) Subsection (2)(d)(i)(A)(I)[;].
2423 [(E) Subsection (2)(e)(ii)(A); or]
2424 [(F) Subsection (2)(e)(iii)(A).]
2425 [(iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:]
2426 [(A) Subsection (1)(b);]
2427 [(B) Subsection (1)(c);]
2428 [(C) Subsection (1)(d);]
2429 [(D) Subsection (1)(e);]
2430 [(E) Subsection (1)(f);]
2431 [(F) Subsection (1)(g);]
2432 [(G) Subsection (1)(h);]
2433 [(H) Subsection (1)(i);]
2434 [(I) Subsection (1)(j); or]
2435 [(J) Subsection (1)(k).]
2436 [(h)] (g) (i) For a tax rate described in Subsection (2)[(h)] (g)(ii), if a tax due on a
2437 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a

2438 tax rate repeal or change in a tax rate takes effect:
2439 (A) on the first day of a calendar quarter; and
2440 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2441 (ii) Subsection (2)[(h)] (g)(i) applies to the tax rates described in the following:
2442 (A) Subsection (2)(a)(i)(A);
2443 (B) Subsection (2)(b)(i);
2444 (C) Subsection (2)(c)(i); or
2445 (D) Subsection (2)(d)(i)(A)(I)[;].
2446 [(E) Subsection (2)(e)(ii)(A); or]
2447 [(F) Subsection (2)(e)(iii)(A).]
2448 (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2449 commission may by rule define the term "catalogue sale."
2450 (3) (a) Except as provided in Subsections (4) through [(10)] (9), the following state
2451 taxes shall be deposited into the General Fund:
2452 (i) the tax imposed by Subsection (2)(a)(i)(A);
2453 (ii) the tax imposed by Subsection (2)(b)(i);
2454 (iii) the tax imposed by Subsection (2)(c)(i); or
2455 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I)[;].
2456 [(v) the tax imposed by Subsection (2)(e)(ii)(A); and]
2457 [(vi) the tax imposed by Subsection (2)(e)(iii)(A).]
2458 (b) The following local taxes shall be distributed to a county, city, or town as provided
2459 in this chapter:
2460 (i) the tax imposed by Subsection (2)(a)(ii);
2461 (ii) the tax imposed by Subsection (2)(b)(ii);
2462 (iii) the tax imposed by Subsection (2)(c)(ii); and
2463 (iv) the tax imposed by Subsection [(2)(e)(ii)(B)] (2)(d)(i)(B).
2464 [(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
2465 state shall receive the county's, city's, or town's proportionate share of the revenues generated

2466 by the following local taxes as provided in Subsection (3)(c)(ii):]
2467 [(A) the local tax described in Subsection (2)(d)(ii); and]
2468 [(B) the local tax described in Subsection (2)(e)(iii)(B).]
2469 [(ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
2470 shall determine a county's, city's, or town's proportionate share of the revenues by:]
2471 [(A) calculating an amount equal to the population of the unincorporated area of the
2472 county, city, or town divided by the total population of the state; and]
2473 [(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
2474 amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
2475 cities, and towns.]
2476 [(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
2477 purposes of this section shall be derived from the most recent official census or census estimate
2478 of the United States Census Bureau.]
2479 [(B) If a needed population estimate is not available from the United States Census
2480 Bureau, population figures shall be derived from the estimate from the Utah Population
2481 Estimates Committee created by executive order of the governor.]
2482 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2483 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
2484 through (g):
2485 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2486 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2487 (B) for the fiscal year; or
2488 (ii) $17,500,000.
2489 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount described
2490 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Department of
2491 Natural Resources to:
2492 (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
2493 protect sensitive plant and animal species; or

2494 (B) award grants, up to the amount authorized by the Legislature in an appropriations
2495 act, to political subdivisions of the state to implement the measures described in Subsections
2496 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
2497 (ii) Money transferred to the Department of Natural Resources under Subsection
2498 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2499 person to list or attempt to have listed a species as threatened or endangered under the
2500 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2501 (iii) At the end of each fiscal year:
2502 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2503 Conservation and Development Fund created in Section 73-10-24 ;
2504 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2505 Program Subaccount created in Section 73-10c-5 ; and
2506 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2507 Program Subaccount created in Section 73-10c-5 .
2508 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2509 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2510 created in Section 4-18-6 .
2511 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2512 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
2513 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water
2514 rights.
2515 (ii) At the end of each fiscal year:
2516 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2517 Conservation and Development Fund created in Section 73-10-24 ;
2518 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2519 Program Subaccount created in Section 73-10c-5 ; and
2520 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2521 Program Subaccount created in Section 73-10c-5 .

2522 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2523 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
2524 Fund created in Section 73-10-24 for use by the Division of Water Resources.
2525 (ii) In addition to the uses allowed of the Water Resources Conservation and
2526 Development Fund under Section 73-10-24 , the Water Resources Conservation and
2527 Development Fund may also be used to:
2528 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2529 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2530 quantifying surface and ground water resources and describing the hydrologic systems of an
2531 area in sufficient detail so as to enable local and state resource managers to plan for and
2532 accommodate growth in water use without jeopardizing the resource;
2533 (B) fund state required dam safety improvements; and
2534 (C) protect the state's interest in interstate water compact allocations, including the
2535 hiring of technical and legal staff.
2536 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2537 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
2538 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2539 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2540 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount created
2541 in Section 73-10c-5 for use by the Division of Drinking Water to:
2542 (i) provide for the installation and repair of collection, treatment, storage, and
2543 distribution facilities for any public water system, as defined in Section 19-4-102 ;
2544 (ii) develop underground sources of water, including springs and wells; and
2545 (iii) develop surface water sources.
2546 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2547 2006, the difference between the following amounts shall be expended as provided in this
2548 Subsection (5), if that difference is greater than $1:
2549 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the

2550 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2551 (ii) $17,500,000.
2552 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2553 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
2554 credits; and
2555 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2556 restoration.
2557 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2558 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
2559 created in Section 73-10-24 .
2560 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2561 remaining difference described in Subsection (5)(a) shall be:
2562 (A) transferred each fiscal year to the Division of Water Resources as dedicated credits;
2563 and
2564 (B) expended by the Division of Water Resources for cloud-seeding projects authorized
2565 by Title 73, Chapter 15, Modification of Weather.
2566 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2567 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
2568 created in Section 73-10-24 .
2569 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
2570 remaining difference described in Subsection (5)(a) shall be deposited into the Water Resources
2571 Conservation and Development Fund created in Section 73-10-24 for use by the Division of
2572 Water Resources for:
2573 (i) preconstruction costs:
2574 (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
2575 26, Bear River Development Act; and
2576 (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
2577 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;

2578 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2579 Chapter 26, Bear River Development Act;
2580 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2581 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2582 (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
2583 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2584 (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
2585 Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
2586 (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
2587 Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
2588 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
2589 incurred for employing additional technical staff for the administration of water rights.
2590 (g) At the end of each fiscal year, any unexpended dedicated credits described in
2591 Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
2592 Fund created in Section 73-10-24 .
2593 (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2594 2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
2595 tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
2596 the Transportation Fund created by Section 72-2-102 .
2597 (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies, beginning
2598 on January 1, 2000, the Division of Finance shall deposit into the Centennial Highway Fund
2599 Restricted Account created in Section 72-2-118 a portion of the taxes listed under Subsection
2600 (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable transactions under
2601 Subsection (1).
2602 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds have
2603 been paid off and the highway projects completed that are intended to be paid from revenues
2604 deposited in the Centennial Highway Fund Restricted Account as determined by the Executive
2605 Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall

2606 deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion
2607 of the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate
2608 on the taxable transactions under Subsection (1).
2609 [(8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
2610 year 2004-05, the commission shall each year on or before the September 30 immediately
2611 following the last day of the fiscal year deposit the difference described in Subsection (8)(b) into
2612 the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is greater
2613 than $0.]
2614 [(b) The difference described in Subsection (8)(a) is equal to the difference between:]
2615 [(i) the total amount of the revenues the commission received from sellers collecting the
2616 taxes described in Subsections (2)(d)(i) and (2)(e)(iii)(A) for the fiscal year immediately
2617 preceding the September 30 described in Subsection (8)(a); and]
2618 [(ii) $7,279,673.]
2619 [(9)] (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
2620 Subsection (7)(a), and until Subsection [(9)] (8)(b) applies, for a fiscal year beginning on or
2621 after July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
2622 Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
2623 (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
2624 portion of the approximately 17% of sales and use tax revenues generated annually by the sales
2625 and use tax on vehicles and vehicle-related products:
2626 (i) the tax imposed by Subsection (2)(a)(i)(A);
2627 (ii) the tax imposed by Subsection (2)(b)(i);
2628 (iii) the tax imposed by Subsection (2)(c)(i); and
2629 (iv) the tax imposed by Subsection [(2)(e)(ii)(A)] (2)(d)(i)(A)(I).
2630 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
2631 Subsection (7)(b), when the highway general obligation bonds have been paid off and the
2632 highway projects completed that are intended to be paid from revenues deposited in the
2633 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations

2634 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
2635 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
2636 listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
2637 which represents a portion of the approximately 17% of sales and use tax revenues generated
2638 annually by the sales and use tax on vehicles and vehicle-related products:
2639 (i) the tax imposed by Subsection (2)(a)(i)(A);
2640 (ii) the tax imposed by Subsection (2)(b)(i);
2641 (iii) the tax imposed by Subsection (2)(c)(i); and
2642 (iv) the tax imposed by Subsection [(2)(e)(ii)(A)] (2)(d)(i)(A)(I).
2643 [(10)] (9) (a) Notwithstanding Subsection (3)(a) and until Subsection [(10)] (9)(b)
2644 applies, the Division of Finance shall annually deposit $90,000,000 of the revenues generated by
2645 the taxes listed under Subsection (3)(a) into the Critical Highway Needs Fund created by
2646 Section 72-2-125 .
2647 (b) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
2648 Subsections (7) and [(9)] (8), when the general obligation bonds authorized by Section
2649 63B-16-101 have been paid off and the highway projects completed that are included in the
2650 prioritized project list under Subsection 72-2-125 (4) as determined in accordance with
2651 Subsection 72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the
2652 revenues generated by the taxes listed under Subsection (3)(a) into the Transportation
2653 Investment Fund of 2005 created by Section 72-2-124 .
2654 Section 11. Section 59-12-104 is amended to read:
2655 59-12-104. Exemptions.
2656 The following sales and uses are exempt from the taxes imposed by this chapter:
2657 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
2658 under Chapter 13, Motor and Special Fuel Tax Act;
2659 (2) sales to the state, its institutions, and its political subdivisions; however, this
2660 exemption does not apply to sales of:
2661 (a) construction materials except:

2662 (i) construction materials purchased by or on behalf of institutions of the public
2663 education system as defined in Utah Constitution Article X, Section 2, provided the
2664 construction materials are clearly identified and segregated and installed or converted to real
2665 property which is owned by institutions of the public education system; and
2666 (ii) construction materials purchased by the state, its institutions, or its political
2667 subdivisions which are installed or converted to real property by employees of the state, its
2668 institutions, or its political subdivisions; or
2669 (b) tangible personal property in connection with the construction, operation,
2670 maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
2671 providing additional project capacity, as defined in Section 11-13-103 ;
2672 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
2673 (i) the proceeds of each sale do not exceed $1; and
2674 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
2675 the cost of the item described in Subsection (3)(b) as goods consumed; and
2676 (b) Subsection (3)(a) applies to:
2677 (i) food and food ingredients; or
2678 (ii) prepared food;
2679 (4) sales of the following to a commercial airline carrier for in-flight consumption:
2680 (a) food and food ingredients;
2681 (b) prepared food; or
2682 (c) services related to Subsection (4)(a) or (b);
2683 (5) sales of parts and equipment for installation in aircraft operated by common carriers
2684 in interstate or foreign commerce;
2685 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
2686 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
2687 exhibitor, distributor, or commercial television or radio broadcaster;
2688 (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
2689 property if the cleaning or washing of the tangible personal property is not assisted cleaning or

2690 washing of tangible personal property;
2691 (b) if a seller that sells at the same business location assisted cleaning or washing of
2692 tangible personal property and cleaning or washing of tangible personal property that is not
2693 assisted cleaning or washing of tangible personal property, the exemption described in
2694 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning or
2695 washing of the tangible personal property; and
2696 (c) for purposes of Subsection (7)(b) and in accordance with Title 63, Chapter 46a,
2697 Utah Administrative Rulemaking Act, the commission may make rules:
2698 (i) governing the circumstances under which sales are at the same business location; and
2699 (ii) establishing the procedures and requirements for a seller to separately account for
2700 sales of assisted cleaning or washing of tangible personal property;
2701 (8) sales made to or by religious or charitable institutions in the conduct of their regular
2702 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
2703 fulfilled;
2704 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
2705 this state if the vehicle is:
2706 (a) not registered in this state; and
2707 (b) (i) not used in this state; or
2708 (ii) used in this state:
2709 (A) if the vehicle is not used to conduct business, for a time period that does not exceed
2710 the longer of:
2711 (I) 30 days in any calendar year; or
2712 (II) the time period necessary to transport the vehicle to the borders of this state; or
2713 (B) if the vehicle is used to conduct business, for the time period necessary to transport
2714 the vehicle to the borders of this state;
2715 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
2716 (i) the item is intended for human use; and
2717 (ii) (A) a prescription was issued for the item; or

2718 (B) the item was purchased by a hospital or other medical facility; and
2719 (b) (i) Subsection (10)(a) applies to:
2720 (A) a drug;
2721 (B) a syringe; or
2722 (C) a stoma supply; and
2723 (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2724 commission may by rule define the terms:
2725 (A) "syringe"; or
2726 (B) "stoma supply";
2727 (11) sales or use of property, materials, or services used in the construction of or
2728 incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
2729 (12) (a) sales of an item described in Subsection (12)(c) served by:
2730 (i) the following if the item described in Subsection (12)(c) is not available to the
2731 general public:
2732 (A) a church; or
2733 (B) a charitable institution;
2734 (ii) an institution of higher education if:
2735 (A) the item described in Subsection (12)(c) is not available to the general public; or
2736 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
2737 offered by the institution of higher education; or
2738 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
2739 (i) a medical facility; or
2740 (ii) a nursing facility; and
2741 (c) Subsections (12)(a) and (b) apply to:
2742 (i) food and food ingredients;
2743 (ii) prepared food; or
2744 (iii) alcoholic beverages;
2745 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property

2746 or a product transferred electronically by a person:
2747 (i) regardless of the number of transactions involving the sale of that tangible personal
2748 property or product transferred electronically by that person; and
2749 (ii) not regularly engaged in the business of selling that type of tangible personal
2750 property or product transferred electronically;
2751 (b) this Subsection (13) does not apply if:
2752 (i) the sale is one of a series of sales of a character to indicate that the person is
2753 regularly engaged in the business of selling that type of tangible personal property or product
2754 transferred electronically;
2755 (ii) the person holds that person out as regularly engaged in the business of selling that
2756 type of tangible personal property or product transferred electronically;
2757 (iii) the person sells an item of tangible personal property or product transferred
2758 electronically that the person purchased as a sale that is exempt under Subsection (25); or
2759 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
2760 this state in which case the tax is based upon:
2761 (A) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
2762 or
2763 (B) in the absence of a bill of sale or other written evidence of value, the fair market
2764 value of the vehicle or vessel being sold at the time of the sale as determined by the commission;
2765 and
2766 (c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2767 commission shall make rules establishing the circumstances under which:
2768 (i) a person is regularly engaged in the business of selling a type of tangible personal
2769 property or product transferred electronically;
2770 (ii) a sale of tangible personal property or a product transferred electronically is one of a
2771 series of sales of a character to indicate that a person is regularly engaged in the business of
2772 selling that type of tangible personal property or product transferred electronically; or
2773 (iii) a person holds that person out as regularly engaged in the business of selling a type

2774 of tangible personal property or product transferred electronically;
2775 (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
2776 July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
2777 facility, for the following:
2778 (i) machinery and equipment that:
2779 (A) is used:
2780 (I) for a manufacturing facility other than a manufacturing facility that is a scrap
2781 recycler described in Subsection 59-12-102 [(48)] (52)(b):
2782 (Aa) in the manufacturing process; and
2783 (Bb) to manufacture an item sold as tangible personal property; or
2784 (II) for a manufacturing facility that is a scrap recycler described in Subsection
2785 59-12-102 [(48)] (52)(b), to process an item sold as tangible personal property; and
2786 (B) has an economic life of three or more years; and
2787 (ii) normal operating repair or replacement parts that:
2788 (A) have an economic life of three or more years; and
2789 (B) are used:
2790 (I) for a manufacturing facility in the state other than a manufacturing facility that is a
2791 scrap recycler described in Subsection 59-12-102 [(48)] (52)(b), in the manufacturing process;
2792 or
2793 (II) for a manufacturing facility in the state that is a scrap recycler described in
2794 Subsection 59-12-102 [(48)] (52)(b), to process an item sold as tangible personal property;
2795 (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
2796 manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
2797 for the following:
2798 (A) machinery and equipment that:
2799 (I) is used:
2800 (Aa) in the manufacturing process; and
2801 (Bb) to manufacture an item sold as tangible personal property; and

2802 (II) has an economic life of three or more years; and
2803 (B) normal operating repair or replacement parts that:
2804 (I) are used in the manufacturing process in a manufacturing facility in the state; and
2805 (II) have an economic life of three or more years; and
2806 (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
2807 2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
2808 claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
2809 (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
2810 and
2811 (B) in accordance with Section 59-12-110 ;
2812 (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
2813 by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
2814 NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
2815 Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
2816 of the 2002 North American Industry Classification System of the federal Executive Office of
2817 the President, Office of Management and Budget:
2818 (i) machinery and equipment that:
2819 (A) are used in:
2820 (I) the production process, other than the production of real property; or
2821 (II) research and development; and
2822 (B) have an economic life of three or more years; and
2823 (ii) normal operating repair or replacement parts that:
2824 (A) have an economic life of three or more years; and
2825 (B) are used in:
2826 (I) the production process, other than the production of real property, in an
2827 establishment described in this Subsection (14)(c) in the state; or
2828 (II) research and development in an establishment described in this Subsection (14)(c)
2829 in the state;

2830 (d) for purposes of this Subsection (14) and in accordance with Title 63, Chapter 46a,
2831 Utah Administrative Rulemaking Act, the commission:
2832 (i) shall by rule define the term "establishment"; and
2833 (ii) may by rule define what constitutes:
2834 (A) processing an item sold as tangible personal property;
2835 (B) the production process, other than the production of real property; or
2836 (C) research and development; and
2837 (e) on or before October 1, 2011, and every five years after October 1, 2011, the
2838 commission shall:
2839 (i) review the exemptions described in this Subsection (14) and make recommendations
2840 to the Revenue and Taxation Interim Committee concerning whether the exemptions should be
2841 continued, modified, or repealed; and
2842 (ii) include in its report:
2843 (A) the cost of the exemptions;
2844 (B) the purpose and effectiveness of the exemptions; and
2845 (C) the benefits of the exemptions to the state;
2846 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
2847 (i) tooling;
2848 (ii) special tooling;
2849 (iii) support equipment;
2850 (iv) special test equipment; or
2851 (v) parts used in the repairs or renovations of tooling or equipment described in
2852 Subsections (15)(a)(i) through (iv); and
2853 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
2854 (i) the tooling, equipment, or parts are used or consumed exclusively in the performance
2855 of any aerospace or electronics industry contract with the United States government or any
2856 subcontract under that contract; and
2857 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),

2858 title to the tooling, equipment, or parts is vested in the United States government as evidenced
2859 by:
2860 (A) a government identification tag placed on the tooling, equipment, or parts; or
2861 (B) listing on a government-approved property record if placing a government
2862 identification tag on the tooling, equipment, or parts is impractical;
2863 (16) sales of newspapers or newspaper subscriptions;
2864 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
2865 product transferred electronically traded in as full or part payment of the purchase price, except
2866 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
2867 trade-ins are limited to other vehicles only, and the tax is based upon:
2868 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
2869 vehicle being traded in; or
2870 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
2871 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
2872 commission; and
2873 (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
2874 following items of tangible personal property or products transferred electronically traded in as
2875 full or part payment of the purchase price:
2876 (i) money;
2877 (ii) electricity;
2878 (iii) water;
2879 (iv) gas; or
2880 (v) steam;
2881 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
2882 or a product transferred electronically used or consumed primarily and directly in farming
2883 operations, regardless of whether the tangible personal property or product transferred
2884 electronically:
2885 (A) becomes part of real estate; or

2886 (B) is installed by a:
2887 (I) farmer;
2888 (II) contractor; or
2889 (III) subcontractor; or
2890 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
2891 product transferred electronically if the tangible personal property or product transferred
2892 electronically is exempt under Subsection (18)(a)(i); and
2893 (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
2894 [tangible personal property] are subject to the taxes imposed by this chapter:
2895 (i) (A) subject to Subsection (18)(b)(i)(B), the following [tangible personal property] if
2896 [the tangible personal property is] used in a manner that is incidental to farming:
2897 (I) machinery;
2898 (II) equipment;
2899 (III) materials; or
2900 (IV) supplies; and
2901 (B) tangible personal property that is considered to be used in a manner that is
2902 incidental to farming includes:
2903 (I) hand tools; or
2904 (II) maintenance and janitorial equipment and supplies;
2905 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
2906 transferred electronically if the tangible personal property or product transferred electronically is
2907 used in an activity other than farming; and
2908 (B) tangible personal property or a product transferred electronically that is considered
2909 to be used in an activity other than farming includes:
2910 (I) office equipment and supplies; or
2911 (II) equipment and supplies used in:
2912 (Aa) the sale or distribution of farm products;
2913 (Bb) research; or

2914 (Cc) transportation; or
2915 (iii) a vehicle required to be registered by the laws of this state during the period ending
2916 two years after the date of the vehicle's purchase;
2917 (19) sales of hay;
2918 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
2919 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
2920 garden, farm, or other agricultural produce is sold by:
2921 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
2922 agricultural produce;
2923 (b) an employee of the producer described in Subsection (20)(a); or
2924 (c) a member of the immediate family of the producer described in Subsection (20)(a);
2925 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
2926 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
2927 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
2928 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
2929 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
2930 manufacturer, processor, wholesaler, or retailer;
2931 (23) [property] a product stored in the state for resale;
2932 (24) (a) purchases of [property] a product if:
2933 (i) the [property] product is:
2934 (A) purchased outside of this state;
2935 (B) brought into this state:
2936 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
2937 (II) by a nonresident person who is not living or working in this state at the time of the
2938 purchase;
2939 (C) used for the personal use or enjoyment of the nonresident person described in
2940 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
2941 (D) not used in conducting business in this state; and

2942 (ii) for:
2943 (A) [property] a product other than [the property] a boat described in Subsection
2944 (24)(a)(ii)(B), the first use of the [property] product for a purpose for which the [property]
2945 product is designed occurs outside of this state;
2946 (B) a boat, the boat is registered outside of this state; or
2947 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2948 outside of this state;
2949 (b) the exemption provided for in Subsection (24)(a) does not apply to:
2950 (i) a lease or rental of [property] a product; or
2951 (ii) a sale of a vehicle exempt under Subsection (33); and
2952 (c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
2953 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
2954 following:
2955 (i) conducting business in this state if that phrase has the same meaning in this
2956 Subsection (24) as in Subsection (66);
2957 (ii) the first use of [property] a product if that phrase has the same meaning in this
2958 Subsection (24) as in Subsection (66); or
2959 (iii) a purpose for which [property] a product is designed if that phrase has the same
2960 meaning in this Subsection (24) as in Subsection (66);
2961 (25) [property] a product purchased for resale in this state, in the regular course of
2962 business, either in its original form or as an ingredient or component part of a manufactured or
2963 compounded product;
2964 (26) [property] a product upon which a sales or use tax was paid to some other state,
2965 or one of its subdivisions, except that the state shall be paid any difference between the tax paid
2966 and the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is
2967 allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and
2968 Use Tax Act;
2969 (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a

2970 person for use in compounding a service taxable under the subsections;
2971 (28) purchases made in accordance with the special supplemental nutrition program for
2972 women, infants, and children established in 42 U.S.C. Sec. 1786;
2973 (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
2974 refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
2975 of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual
2976 of the federal Executive Office of the President, Office of Management and Budget;
2977 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2978 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
2979 (a) not registered in this state; and
2980 (b) (i) not used in this state; or
2981 (ii) used in this state:
2982 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
2983 time period that does not exceed the longer of:
2984 (I) 30 days in any calendar year; or
2985 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
2986 the borders of this state; or
2987 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
2988 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
2989 state;
2990 (31) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
2991 where a sales or use tax is not imposed, even if the title is passed in Utah;
2992 (32) amounts paid for the purchase of [telephone] telecommunications service for
2993 purposes of providing [telephone] telecommunications service;
2994 (33) sales, leases, or uses of the following:
2995 (a) a vehicle by an authorized carrier; or
2996 (b) tangible personal property that is installed on a vehicle:
2997 (i) sold or leased to or used by an authorized carrier; and

2998 (ii) before the vehicle is placed in service for the first time;
2999 (34) (a) 45% of the sales price of any new manufactured home; and
3000 (b) 100% of the sales price of any used manufactured home;
3001 (35) sales relating to schools and fundraising sales;
3002 (36) sales or rentals of durable medical equipment if:
3003 (a) a person presents a prescription for the durable medical equipment; and
3004 (b) the durable medical equipment is used for home use only;
3005 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
3006 Section 72-11-102 ; and
3007 (b) the commission shall by rule determine the method for calculating sales exempt
3008 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
3009 (38) sales to a ski resort of:
3010 (a) snowmaking equipment;
3011 (b) ski slope grooming equipment;
3012 (c) passenger ropeways as defined in Section 72-11-102 ; or
3013 (d) parts used in the repairs or renovations of equipment or passenger ropeways
3014 described in Subsections (38)(a) through (c);
3015 (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
3016 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
3017 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
3018 59-12-102 ;
3019 (b) if a seller that sells or rents at the same business location the right to use or operate
3020 for amusement, entertainment, or recreation one or more unassisted amusement devices and one
3021 or more assisted amusement devices, the exemption described in Subsection (40)(a) applies if
3022 the seller separately accounts for the sales or rentals of the right to use or operate for
3023 amusement, entertainment, or recreation for the assisted amusement devices; and
3024 (c) for purposes of Subsection (40)(b) and in accordance with Title 63, Chapter 46a,
3025 Utah Administrative Rulemaking Act, the commission may make rules:

3026 (i) governing the circumstances under which sales are at the same business location; and
3027 (ii) establishing the procedures and requirements for a seller to separately account for
3028 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
3029 assisted amusement devices;
3030 (41) (a) sales of photocopies by:
3031 (i) a governmental entity; or
3032 (ii) an entity within the state system of public education, including:
3033 (A) a school; or
3034 (B) the State Board of Education; or
3035 (b) sales of publications by a governmental entity;
3036 (42) amounts paid for admission to an athletic event at an institution of higher
3037 education that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
3038 U.S.C. Sec. 1681 et seq.;
3039 (43) sales of [telephone] telecommunications service charged to a prepaid telephone
3040 calling card;
3041 [(44) (a) sales of:]
3042 [(i) hearing aids;]
3043 [(ii) hearing aid accessories; or]
3044 [(iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations
3045 of hearing aids or hearing aid accessories; and]
3046 [(b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii),
3047 "parts" does not include batteries;]
3048 [(45)] (44) (a) sales made to or by:
3049 (i) an area agency on aging; or
3050 (ii) a senior citizen center owned by a county, city, or town; or
3051 (b) sales made by a senior citizen center that contracts with an area agency on aging;
3052 [(46)] (45) sales or leases of semiconductor fabricating, processing, research, or
3053 development materials regardless of whether the semiconductor fabricating, processing,

3054 research, or development materials:
3055 (a) actually come into contact with a semiconductor; or
3056 (b) ultimately become incorporated into real property;
3057 [(47)] (46) an amount paid by or charged to a purchaser for accommodations and
3058 services described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under
3059 Section 59-12-104.2 ;
3060 [(48)] (47) beginning on September 1, 2001, the lease or use of a vehicle issued a
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