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H.B. 206

             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
             205      sales 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
             229      sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to
             230      the municipality for fiscal year 2005.
             231          (ii) "2006 base amount" means, for a municipality that imposes a municipal energy
             232      sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to
             233      the 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
             277      applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by
             278      the 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
             295      applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by
             296      the 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
             350      described in this Subsection (8)(b) is known, the location of the origination point of the signal
             351      of the 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;
             355      or
             356          (c) if the locations described in Subsection (8)(a) or (b) are not known, the location of a
             357      customer's place of primary use.
             358          (9) (a) Subject to Subsections (9)(b) and (9)(c), "telecommunications provider" means
             359      a person that:
             360          (i) owns, controls, operates, or manages a telecommunications service; or
             361          (ii) engages in an activity described in Subsection (9)(a)(i) for the shared use with or
             362      resale to any person of the telecommunications service.
             363          (b) A person described in Subsection (9)(a) is a telecommunications provider whether
             364      or not the Public Service Commission of Utah regulates:
             365          (i) that person; or
             366          (ii) the telecommunications service that the person owns, controls, operates, or
             367      manages.
             368          (c) "Telecommunications provider" does not include an aggregator as defined in


             369      Section 54-8b-2 .
             370          (10) "Telecommunications service" means:
             371          (a) [telephone] telecommunications service, as defined in Section 59-12-102 , other
             372      than mobile telecommunications service, that originates and terminates within the boundaries
             373      of this state; [and]
             374          (b) mobile telecommunications service, as defined in Section 59-12-102 :
             375          (i) that originates and terminates within the boundaries of one state; and
             376          (ii) only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4
             377      U.S.C. Sec. 116 et seq.; or
             378          (c) an ancillary service as defined in Section 59-12-102 .
             379          (11) (a) Except as provided in Subsection (11)(b), "telecommunications tax or fee"
             380      means any of the following imposed by a municipality on a telecommunications provider:
             381          (i) a tax;
             382          (ii) a license;
             383          (iii) a fee;
             384          (iv) a license fee;
             385          (v) a license tax;
             386          (vi) a franchise fee; or
             387          (vii) a charge similar to a tax, license, or fee described in Subsections (11)(a)(i)
             388      through (vi).
             389          (b) "Telecommunications tax or fee" does not include:
             390          (i) the municipal telecommunications license tax authorized by this part; or
             391          (ii) a tax, fee, or charge, including a tax imposed under Title 59, Revenue and
             392      Taxation, that is imposed:
             393          (A) on telecommunications providers; and
             394          (B) on persons who are not telecommunications providers.
             395          Section 3. Section 10-1-405 is amended to read:
             396           10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
             397      Rulemaking authority -- Charge for services.
             398          (1) Subject to the other provisions of this section, the commission shall collect,
             399      enforce, and administer any municipal telecommunications license tax imposed under this part


             400      pursuant to:
             401          (a) the same procedures used in the administration, collection, and enforcement of the
             402      state sales and use tax under:
             403          (i) Title 59, Chapter 1, General Taxation Policies; and
             404          (ii) Title 59, Chapter 12, Part 1, Tax Collection:
             405          (A) except for:
             406          (I) Subsection 59-12-103 (2)[(h)] (g);
             407          (II) Section 59-12-104 ;
             408          (III) Section 59-12-104.1 ;
             409          (IV) Section 59-12-104.2 ; [and]
             410          (V) Section 59-12-104.3 ;
             411          [(V)] (VI) Section 59-12-107.1 ; and
             412          (VII) Section 59-12-123 ; and
             413          (B) except that for purposes of Section 59-12-110 , the term "taxpayer" may include a
             414      customer from whom a municipal telecommunications license tax is recovered in accordance
             415      with Subsection 10-1-403 (2); and
             416          (b) a uniform interlocal agreement:
             417          (i) between:
             418          (A) the municipality that imposes the municipal telecommunications license tax; and
             419          (B) the commission;
             420          (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             421          (iii) that complies with Subsection (2)(a); and
             422          (iv) that is developed by rule in accordance with Subsection (2)(b).
             423          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             424      the commission shall:
             425          (i) transmit monies collected under this part:
             426          (A) monthly; and
             427          (B) by electronic funds transfer by the commission to the municipality;
             428          (ii) conduct audits of the municipal telecommunications license tax;
             429          (iii) charge the municipality for the commission's services under this section in an
             430      amount:


             431          (A) sufficient to reimburse the commission for the cost to the commission in rendering
             432      the services; and
             433          (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
             434      license tax imposed by the ordinance of the municipality; and
             435          (iv) collect, enforce, and administer the municipal telecommunications license tax
             436      authorized under this part pursuant to the same procedures used in the administration,
             437      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             438          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             439      commission shall develop a uniform interlocal agreement that meets the requirements of this
             440      section.
             441          (3) The administrative fee charged under Subsection (2)(a) shall be:
             442          (a) deposited in the Sales and Use Tax Administrative Fees Account; and
             443          (b) used for administration of municipal telecommunications license taxes under this
             444      part.
             445          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
             446      telecommunications license tax under this part at a rate that exceeds 3.5%:
             447          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
             448      shall collect the municipal telecommunications license tax:
             449          (i) within the municipality;
             450          (ii) at a rate of 3.5%; and
             451          (iii) from a telecommunications provider required to pay the municipal
             452      telecommunications license tax on or after July 1, 2007; and
             453          (b) the commission shall collect a municipal telecommunications license tax within the
             454      municipality at the rate imposed by the municipality if:
             455          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
             456      telecommunications license tax under this part at a rate of up to 3.5%;
             457          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             458      the rate of the municipal telecommunications license tax; and
             459          (iii) a telecommunications provider is required to pay the municipal
             460      telecommunications license tax on or after the day on which the ordinance described in
             461      Subsection (4)(b)(ii) takes effect.


             462          Section 4. Section 10-1-407 is amended to read:
             463           10-1-407. Attributing the gross receipts from telecommunications service to a
             464      municipality -- Rate impact.
             465          (1) The gross receipts from a telecommunications service are attributed to a
             466      municipality if the gross receipts are from a transaction for telecommunications service that is
             467      located within the municipality:
             468          (a) for purposes of sales and use taxes under Title 59, Chapter 12, Sales and Use Tax
             469      Act; and
             470          (b) determined in accordance with Section [ 59-12-207.4 ] 59-12-215 .
             471          (2) (a) The rate imposed on the gross receipts for telecommunications service shall be
             472      determined in accordance with Subsection (2)(b) if the location of a transaction for
             473      telecommunications service is determined under Subsection (1) to be a municipality other than
             474      the municipality in which is located:
             475          (i) for telecommunications service other than mobile telecommunications service, the
             476      customer's service address; or
             477          (ii) for mobile telecommunications service, the customer's primary place of use.
             478          (b) The rate imposed on the gross receipts for telecommunications service described in
             479      Subsection (2)(a) shall be the lower of:
             480          (i) the rate imposed by the taxing jurisdiction in which the transaction is located under
             481      Subsection (1); or
             482          (ii) the rate imposed by the municipality in which it is located:
             483          (A) for telecommunications service other than mobile telecommunications service, the
             484      customer's service address; or
             485          (B) for mobile telecommunications service, the customer's primary place of use.
             486          Section 5. Section 11-41-102 is amended to read:
             487           11-41-102. Definitions.
             488          As used in this chapter:
             489          (1) "Agreement" means an oral or written agreement between a:
             490          (a) (i) county; or
             491          (ii) municipality; and
             492          (b) person.


             493          (2) "Municipality" means a:
             494          (a) city; or
             495          (b) town.
             496          (3) "Payment" includes:
             497          (a) a payment;
             498          (b) a rebate;
             499          (c) a refund; or
             500          (d) an amount similar to Subsections (3)(a) through (c).
             501          (4) "Regional retail business" means a:
             502          (a) retail business that occupies a floor area of more than 80,000 square feet;
             503          (b) dealer as defined in Section 41-1a-102 ;
             504          (c) retail shopping facility that has at least two anchor tenants if the total number of
             505      anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
             506      feet; or
             507          (d) grocery store that occupies a floor area of more than 30,000 square feet.
             508          (5) (a) "Sales and use tax" means a tax:
             509          (i) imposed on transactions within a:
             510          (A) county; or
             511          (B) municipality; and
             512          (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
             513      Sales and Use Tax Act.
             514          (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
             515      authorized under:
             516          (i) Subsection 59-12-103 (2)(a)(i);
             517          (ii) Subsection 59-12-103 (2)(b)(i);
             518          (iii) Subsection 59-12-103 (2)(c)(i);
             519          (iv) Subsection 59-12-103 (2)(d)(i)(A);
             520          [(v) Subsection 59-12-103 (2)(e)(ii)(A);]
             521          [(vi) Subsection 59-12-103 (2)(e)(iii)(A);]
             522          [(vii)] (v) Section 59-12-301 ;
             523          [(viii)] (vi) Section 59-12-352 ;


             524          [(ix)] (vii) Section 59-12-353 ;
             525          [(x)] (viii) Section 59-12-603 ; or
             526          [(xi)] (ix) Section 59-12-1201 .
             527          (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
             528          (i) to a person;
             529          (ii) by a:
             530          (A) county; or
             531          (B) municipality;
             532          (iii) to induce the person to locate or relocate a regional retail business within the:
             533          (A) county; or
             534          (B) municipality; and
             535          (iv) that are derived from a sales and use tax.
             536          (b) "Sales and use tax incentive payment" does not include funding for public
             537      infrastructure.
             538          Section 6. Section 53-10-605 is amended to read:
             539           53-10-605. Use of money in fund -- Criteria -- Administration.
             540          (1) Subject to an annual legislative appropriation from the fund to:
             541          (a) the committee, the committee shall:
             542          (i) authorize the use of the money in the fund, by grant to a local entity or state agency
             543      in accordance with this Subsection (1) and Subsection (2);
             544          (ii) grant to state agencies and local entities an amount not to exceed the per month fee
             545      levied on [telephone services] telecommunications service under Section 69-2-5.6 for
             546      installation, implementation, and maintenance of unified, statewide 911 emergency services
             547      and technology; and
             548          (iii) in addition to any money under Subsection (1)(a)(ii), grant to counties of the third
             549      through sixth class the amount dedicated for rural assistance, which is at least 3 cents per
             550      month levied on [telephone services] telecommunications service under Section 69-2-5.6 to:
             551          (A) enhance the 911 emergency services with a focus on areas or counties that do not
             552      have E-911 services; and
             553          (B) where needed, assist the counties, in cooperation with private industry, with the
             554      creation or integration of wireless systems and location technology in rural areas of the state;


             555          (b) the committee, the committee shall:
             556          (i) include reimbursement to a provider of radio communications service, as defined in
             557      Section 69-2-2 , for costs as provided in Subsection (1)(b)(ii); and
             558          (ii) an agreement to reimburse costs to a provider of radio communications services
             559      must be a written agreement among the committee, the local public safety answering point and
             560      the carrier; and
             561          (c) the state's Automated Geographic Reference Center in the Division of Integrated
             562      Technology of the Department of Technology Services, an amount equal to 1 cent per month
             563      levied on [telephone services] telecommunications service under Section 69-2-5.6 shall be used
             564      to enhance and upgrade statewide digital mapping standards.
             565          (2) (a) Beginning July 1, 2007, the committee may not grant the money in the fund to a
             566      local entity unless the local entity is in compliance with Phase I, wireless E-911 service.
             567          (b) Beginning July 1, 2009, the committee may not grant money in the fund to a local
             568      entity unless the local entity is in compliance with Phase II, wireless E-911 service.
             569          (3) A local entity must deposit any money it receives from the committee into a special
             570      emergency [telephone] telecommunications service fund in accordance with Subsection
             571      69-2-5 (4).
             572          (4) For purposes of this part, "local entity" means a county, city, town, local district,
             573      special service district, or interlocal entity created under Title 11, Chapter 13, Interlocal
             574      Cooperation Act.
             575          Section 7. Section 59-1-403 is amended to read:
             576           59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
             577          (1) (a) Any of the following may not divulge or make known in any manner any
             578      information gained by that person from any return filed with the commission:
             579          (i) a tax commissioner;
             580          (ii) an agent, clerk, or other officer or employee of the commission; or
             581          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
             582      town.
             583          (b) An official charged with the custody of a return filed with the commission is not
             584      required to produce the return or evidence of anything contained in the return in any action or
             585      proceeding in any court, except:


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


             617      subdivisions of another state, or any political subdivision of this state, except as limited by
             618      Sections 59-12-209 and 59-12-210 , if the political subdivision, other state, or the federal
             619      government grant substantially similar privileges to this state.
             620          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             621      corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
             622      Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
             623      identity and other information of taxpayers who have failed to file tax returns or to pay any tax
             624      due.
             625          (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
             626      Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
             627      requested by the executive secretary, any records, returns, or other information filed with the
             628      commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
             629      regarding the environmental assurance program participation fee.
             630          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
             631      provide that person sales and purchase volume data reported to the commission on a report,
             632      return, or other information filed with the commission under:
             633          (i) Chapter 13, Part 2, Motor Fuel; or
             634          (ii) Chapter 13, Part 4, Aviation Fuel.
             635          (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
             636      as defined in Section 59-22-202 , the commission shall report to the manufacturer:
             637          (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             638      manufacturer and reported to the commission for the previous calendar year under Section
             639      59-14-407 ; and
             640          (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             641      manufacturer for which a tax refund was granted during the previous calendar year under
             642      Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
             643          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
             644      distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
             645      from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
             646          (h) Notwithstanding Subsection (1), the commission may:
             647          (i) provide to the Division of Consumer Protection within the Department of


             648      Commerce and the attorney general data:
             649          (A) reported to the commission under Section 59-14-212 ; or
             650          (B) related to a violation under Section 59-14-211 ; and
             651          (ii) upon request provide to any person data reported to the commission under
             652      Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
             653          (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
             654      of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning
             655      and Budget, provide to the committee or office the total amount of revenues collected by the
             656      commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
             657      specified by the committee or office.
             658          (j) Notwithstanding Subsection (1), the commission shall at the request of the
             659      Legislature provide to the Legislature the total amount of sales or uses exempt under
             660      Subsection 59-12-104 (46) reported to the commission in accordance with Section 59-12-105 .
             661          (k) Notwithstanding Subsection (1), the commission shall make the directory required
             662      by Section 59-14-603 available for public inspection.
             663          (l) Notwithstanding Subsection (1), the commission may share information with
             664      federal, state, or local agencies as provided in Subsection 59-14-606 (3).
             665          (m) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
             666      Recovery Services within the Department of Human Services any relevant information
             667      obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
             668      who has become obligated to the Office of Recovery Services.
             669          (ii) The information described in Subsection (3)(m)(i) may be provided by the Office
             670      of Recovery Services to any other state's child support collection agency involved in enforcing
             671      that support obligation.
             672          (n) (i) Notwithstanding Subsection (1), upon request from the state court administrator,
             673      the commission shall provide to the state court administrator, the name, address, telephone
             674      number, county of residence, and Social Security number on resident returns filed under
             675      Chapter 10, Individual Income Tax Act.
             676          (ii) The state court administrator may use the information described in Subsection
             677      (3)(n)(i) only as a source list for the master jury list described in Section 78-46-10 .
             678          (o) Notwithstanding Subsection (1), the commission shall at the request of a


             679      committee, commission, or task force of the Legislature provide to the committee, commission,
             680      or task force of the Legislature any information relating to a tax imposed under Chapter 9,
             681      Taxation of Admitted Insurers, relating to the study required by Section 59-9-101 .
             682          (p) (i) As used in this Subsection (3)(p), "office" means the:
             683          (A) Office of the Legislative Fiscal Analyst; or
             684          (B) Office of Legislative Research and General Counsel.
             685          (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(p)(iii),
             686      the commission shall at the request of an office provide to the office all information:
             687          (A) gained by the commission; and
             688          (B) required to be attached to or included in returns filed with the commission.
             689          (iii) (A) An office may not request and the commission may not provide to an office a
             690      person's:
             691          (I) address;
             692          (II) name;
             693          (III) Social Security number; or
             694          (IV) taxpayer identification number.
             695          (B) The commission shall in all instances protect the privacy of a person as required by
             696      Subsection (3)(p)(iii)(A).
             697          (iv) An office may provide information received from the commission in accordance
             698      with this Subsection (3)(p) only:
             699          (A) as:
             700          (I) a fiscal estimate;
             701          (II) fiscal note information; or
             702          (III) statistical information; and
             703          (B) if the information is classified to prevent the identification of a particular return.
             704          (v) (A) A person may not request information from an office under Title 63, Chapter 2,
             705      Government Records Access and Management Act, or this section, if that office received the
             706      information from the commission in accordance with this Subsection (3)(p).
             707          (B) An office may not provide to a person that requests information in accordance with
             708      Subsection (3)(p)(v)(A) any information other than the information the office provides in
             709      accordance with Subsection (3)(p)(iv).


             710          (q) Notwithstanding Subsection (1), the commission may provide to the governing
             711      board of the agreement or a taxing official of another state, the District of Columbia, the United
             712      States, or a territory of the United States:
             713          (i) the following relating to an agreement sales and use tax:
             714          (A) information contained in a return filed with the commission;
             715          (B) information contained in a report filed with the commission;
             716          (C) a schedule related to Subsection (3)(q)(i)(A) or (B); or
             717          (D) a document filed with the commission; or
             718          (ii) a report of an audit or investigation made with respect to an agreement sales and
             719      use tax.
             720          (4) (a) Reports and returns shall be preserved for at least three years.
             721          (b) After the three-year period provided in Subsection (4)(a) the commission may
             722      destroy a report or return.
             723          (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
             724          (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
             725      the person shall be dismissed from office and be disqualified from holding public office in this
             726      state for a period of five years thereafter.
             727          (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
             728      accordance with Subsection (3)(p)(iii) or a person that requests information in accordance with
             729      Subsection (3)(p)(v):
             730          (i) is not guilty of a class A misdemeanor; and
             731          (ii) is not subject to:
             732          (A) dismissal from office in accordance with Subsection (5)(b); or
             733          (B) disqualification from holding public office in accordance with Subsection (5)(b).
             734          (6) Except as provided in Section 59-1-404 , this part does not apply to the property 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
             751      the 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
             760      subscriber; 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);
             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);
             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,
             813      or 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
             816      performed 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
             850      property, 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
             855      the basis of the selection by the purchaser of the items of tangible personal property included in
             856      the 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
             876      this 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 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 provided free of charge with the purchase of
             898      another item of tangible personal property; or
             899          [(iii)] (C) an item of tangible personal property, 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 is provided free of charge with the purchase of another item of tangible
             903      personal property if the sales price of the purchased item of tangible personal property does not
             904      vary depending on the inclusion of the tangible personal property provided free of charge.
             905          (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
             906      does not include a price that is separately identified by product on the following, regardless of
             907      whether the following is in paper format or electronic format:
             908          (A) a binding sales document; or
             909          (B) another supporting sales-related document that is available to a purchaser.
             910          (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
             911      supporting sales-related document that is available to a purchaser includes:
             912          (A) a bill of sale;
             913          (B) a contract;
             914          (C) an invoice;
             915          (D) a lease agreement;
             916          (E) a periodic notice of rates and services;
             917          (F) a price list;
             918          (G) a rate card;
             919          (H) a receipt; or
             920          (I) a service agreement.
             921          (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
             922      property or a product subject to taxation under this chapter is de minimis if:
             923          (A) the seller's purchase price of the tangible personal property or product is 10% or
             924      less of the seller's total purchase price of the bundled transaction; or
             925          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             926      the seller's total sales price of the bundled transaction.


             927          (ii) For purposes of Subsection (15)(b)(vi), a seller:
             928          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             929      purchase price or sales price of the tangible personal property or product subject to taxation
             930      under this chapter is de minimis; and
             931          (B) may not use a combination of the seller's purchase price and the seller's sales price
             932      to determine if the purchase price or sales price of the tangible personal property or product
             933      subject to taxation under this chapter is de minimis.
             934          (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
             935      contract to determine if the sales price of tangible personal property or a product is de minimis.
             936          (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
             937      the seller's purchase price and the seller's sales price to determine if tangible personal property
             938      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             939      price of that retail sale.
             940          [(13)] (16) "Certified automated system" means software certified by the governing
             941      board of the agreement in accordance with Section 59-12-102.1 that:
             942          (a) calculates the agreement sales and use tax imposed within a local taxing
             943      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
             953      use 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
             968      business of transporting passengers, freight, merchandise, or other property for hire within this
             969      state.
             970          (b) (i) "Common carrier" does not include a person who, at the time the person is
             971      traveling to or from that person's place of employment, transports a passenger to or from the
             972      passenger's place of employment.
             973          (ii) For purposes of Subsection [(18)] (21)(b)(i), in accordance with Title 63, Chapter
             974      46a, Utah Administrative Rulemaking Act, the commission may make rules defining what
             975      constitutes a person's place of employment.
             976          [(19)] (22) "Component part" includes:
             977          (a) poultry, dairy, and other livestock feed, and their components;
             978          (b) baling ties and twine used in the baling of hay and straw;
             979          (c) fuel used for providing temperature control of orchards and commercial
             980      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             981      off-highway type farm machinery; and
             982          (d) feed, seeds, and seedlings.
             983          [(20)] (23) "Computer" means an electronic device that accepts information:
             984          (a) (i) in digital form; or
             985          (ii) in a form similar to digital form; and
             986          (b) manipulates that information for a result based on a sequence of instructions.
             987          [(21)] (24) "Computer software" means a set of coded instructions designed to cause:
             988          (a) a computer to perform a task; or


             989          (b) automatic data processing equipment to perform a task.
             990          (25) (a) "Conference bridging service" means an ancillary service that links two or
             991      more participants of an audio conference call or video conference call.
             992          (b) "Conference bridging service" includes providing a telephone number as part of the
             993      ancillary service described in Subsection (25)(a).
             994          (c) "Conference bridging service" does not include a telecommunications service used
             995      to reach the ancillary service described in Subsection (25)(a).
             996          [(22)] (26) "Construction materials" means any tangible personal property that will be
             997      converted into real property.
             998          [(23)] (27) "Delivered electronically" means delivered to a purchaser by means other
             999      than tangible storage media.
             1000          [(24)] (28) (a) "Delivery charge" means a charge:
             1001          (i) by a seller of:
             1002          (A) tangible personal property; [or]
             1003          (B) a product transferred electronically; or
             1004          [(B)] (C) services; and
             1005          (ii) for preparation and delivery of the tangible personal property, product transferred
             1006      electronically, or services described in Subsection [(24)] (28)(a)(i) to a location designated by
             1007      the purchaser.
             1008          (b) "Delivery charge" includes a charge for the following:
             1009          (i) transportation;
             1010          (ii) shipping;
             1011          (iii) postage;
             1012          (iv) handling;
             1013          (v) crating; or
             1014          (vi) packing.
             1015          [(25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:]
             1016          [(i) a bridge;]
             1017          [(ii) a crown if that crown covers at least 75% of a tooth structure;]
             1018          [(iii) a denture;]
             1019          [(iv) an implant;]


             1020          [(v) an orthodontic device designed to:]
             1021          [(A) retain the position or spacing of teeth; and]
             1022          [(B) replace a missing tooth;]
             1023          [(vi) a partial denture; or]
             1024          [(vii) a device similar to Subsections (25)(a)(i) through (vi).]
             1025          [(b) "Dental prosthesis" does not include an appliance or device, other than a device
             1026      described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
             1027      apply force to the teeth and their supporting structures to:]
             1028          [(i) produce changes in their relationship to each other; and]
             1029          [(ii) control their growth and development.]
             1030          (29) "Detailed telecommunications billing service" means an ancillary service of
             1031      separately stating information pertaining to individual calls on a customer's billing statement.
             1032          [(26)] (30) "Dietary supplement" means a product, other than tobacco, that:
             1033          (a) is intended to supplement the diet;
             1034          (b) contains one or more of the following dietary ingredients:
             1035          (i) a vitamin;
             1036          (ii) a mineral;
             1037          (iii) an herb or other botanical;
             1038          (iv) an amino acid;
             1039          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1040      dietary intake; or
             1041          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1042      described in Subsections [(26)] (30)(b)(i) through (v);
             1043          (c) (i) except as provided in Subsection [(26)] (30)(c)(ii), is intended for ingestion in:
             1044          (A) tablet form;
             1045          (B) capsule form;
             1046          (C) powder form;
             1047          (D) softgel form;
             1048          (E) gelcap form; or
             1049          (F) liquid form; or
             1050          (ii) notwithstanding Subsection [(26)] (30)(c)(i), if the product is not intended for


             1051      ingestion in a form described in Subsections [(26)] (30)(c)(i)(A) through (F), is not
             1052      represented:
             1053          (A) as conventional food; and
             1054          (B) for use as a sole item of:
             1055          (I) a meal; or
             1056          (II) the diet; and
             1057          (d) is required to be labeled as a dietary supplement:
             1058          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1059          (ii) as required by 21 C.F.R. Sec. 101.36.
             1060          [(27)] (31) (a) "Direct mail" means printed material delivered or distributed by United
             1061      States mail or other delivery service:
             1062          (i) to:
             1063          (A) a mass audience; or
             1064          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             1065          (ii) if the cost of the printed material is not billed directly to the recipients.
             1066          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1067      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1068          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1069      single address.
             1070          (32) "Directory assistance" means an ancillary service of providing:
             1071          (a) address information; or
             1072          (b) telephone number information.
             1073          [(28)] (33) (a) "Disposable home medical equipment or supplies" means medical
             1074      equipment or supplies that:
             1075          (i) cannot withstand repeated use; and
             1076          (ii) are purchased by, for, or on behalf of a person other than:
             1077          (A) a health care facility as defined in Section 26-21-2 ;
             1078          (B) a health care provider as defined in Section 78-14-3 ;
             1079          (C) an office of a health care provider described in Subsection [(28)] (33)(a)(ii)(B); or
             1080          (D) a person similar to a person described in Subsections [(28)] (33)(a)(ii)(A) through
             1081      (C).


             1082          (b) "Disposable home medical equipment or supplies" does not include:
             1083          (i) a drug;
             1084          (ii) durable medical equipment;
             1085          (iii) a hearing aid;
             1086          (iv) a hearing aid accessory;
             1087          (v) mobility enhancing equipment; or
             1088          (vi) tangible personal property used to correct impaired vision, including:
             1089          (A) eyeglasses; or
             1090          (B) contact lenses.
             1091          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1092      commission may by rule define what constitutes medical equipment or supplies.
             1093          [(29)] (34) (a) "Drug" means a compound, substance, or preparation, or a component of
             1094      a compound, substance, or preparation that is:
             1095          (i) recognized in:
             1096          (A) the official United States Pharmacopoeia;
             1097          (B) the official Homeopathic Pharmacopoeia of the United States;
             1098          (C) the official National Formulary; or
             1099          (D) a supplement to a publication listed in Subsections [(29)] (34)(a)(i)(A) through
             1100      (C);
             1101          (ii) intended for use in the:
             1102          (A) diagnosis of disease;
             1103          (B) cure of disease;
             1104          (C) mitigation of disease;
             1105          (D) treatment of disease; or
             1106          (E) prevention of disease; or
             1107          (iii) intended to affect:
             1108          (A) the structure of the body; or
             1109          (B) any function of the body.
             1110          (b) "Drug" does not include:
             1111          (i) food and food ingredients;
             1112          (ii) a dietary supplement;


             1113          (iii) an alcoholic beverage; or
             1114          (iv) a prosthetic device.
             1115          [(30)] (35) (a) Except as provided in Subsection [(30)] (35)(c), "durable medical
             1116      equipment" means equipment that:
             1117          (i) can withstand repeated use;
             1118          (ii) is primarily and customarily used to serve a medical purpose;
             1119          (iii) generally is not useful to a person in the absence of illness or injury; and
             1120          (iv) is not worn in or on the body.
             1121          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1122      equipment described in Subsection [(30)] (35)(a).
             1123          (c) Notwithstanding Subsection [(30)] (35)(a), "durable medical equipment" does not
             1124      include mobility enhancing equipment.
             1125          [(31)] (36) "Electronic" means:
             1126          (a) relating to technology; and
             1127          (b) having:
             1128          (i) electrical capabilities;
             1129          (ii) digital capabilities;
             1130          (iii) magnetic capabilities;
             1131          (iv) wireless capabilities;
             1132          (v) optical capabilities;
             1133          (vi) electromagnetic capabilities; or
             1134          (vii) capabilities similar to Subsections [(31)] (36)(b)(i) through (vi).
             1135          [(32)] (37) "Employee" is as defined in Section 59-10-401 .
             1136          [(33)] (38) "Fixed guideway" means a public transit facility that uses and occupies:
             1137          (a) rail for the use of public transit; or
             1138          (b) a separate right-of-way for the use of public transit.
             1139          (39) "Fixed wireless service" means a telecommunications service that provides radio
             1140      communication between fixed points.
             1141          [(34)] (40) (a) "Food and food ingredients" means substances:
             1142          (i) regardless of whether the substances are in:
             1143          (A) liquid form;


             1144          (B) concentrated form;
             1145          (C) solid form;
             1146          (D) frozen form;
             1147          (E) dried form; or
             1148          (F) dehydrated form; and
             1149          (ii) that are:
             1150          (A) sold for:
             1151          (I) ingestion by humans; or
             1152          (II) chewing by humans; and
             1153          (B) consumed for the substance's:
             1154          (I) taste; or
             1155          (II) nutritional value.
             1156          (b) "Food and food ingredients" includes an item described in Subsection [(66)]
             1157      (75)(b)(iii).
             1158          (c) "Food and food ingredients" does not include:
             1159          (i) an alcoholic beverage;
             1160          (ii) tobacco; or
             1161          (iii) prepared food.
             1162          [(35)] (41) (a) "Fundraising sales" means sales:
             1163          (i) (A) made by a school; or
             1164          (B) made by a school student;
             1165          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1166      materials, or provide transportation; and
             1167          (iii) that are part of an officially sanctioned school activity.
             1168          (b) For purposes of Subsection [(35)] (41)(a)(iii), "officially sanctioned school activity"
             1169      means a school activity:
             1170          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1171      district governing the authorization and supervision of fundraising activities;
             1172          (ii) that does not directly or indirectly compensate an individual teacher or other
             1173      educational personnel by direct payment, commissions, or payment in kind; and
             1174          (iii) the net or gross revenues from which are deposited in a dedicated account


             1175      controlled by the school or school district.
             1176          [(36)] (42) "Geothermal energy" means energy contained in heat that continuously
             1177      flows outward from the earth that is used as the sole source of energy to produce electricity.
             1178          [(37)] (43) "Governing board of the agreement" means the governing board of the
             1179      agreement that is:
             1180          (a) authorized to administer the agreement; and
             1181          (b) established in accordance with the agreement.
             1182          [(38)] (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
             1183      means:
             1184          (i) the executive branch of the state, including all departments, institutions, boards,
             1185      divisions, bureaus, offices, commissions, and committees;
             1186          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             1187      Office of the Court Administrator, and similar administrative units in the judicial branch;
             1188          (iii) the legislative branch of the state, including the House of Representatives, the
             1189      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             1190      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             1191      Analyst;
             1192          (iv) the National Guard;
             1193          (v) an independent entity as defined in Section 63E-1-102 ; or
             1194          (vi) a political subdivision as defined in Section 17B-1-102 .
             1195          (b) "Governmental entity" does not include the state systems of public and higher
             1196      education, including:
             1197          (i) a college campus of the Utah College of Applied Technology;
             1198          (ii) a school;
             1199          (iii) the State Board of Education;
             1200          (iv) the State Board of Regents; or
             1201          (v) a state institution of higher education as defined in Section 53B-3-102 .
             1202          [(39) (a) "Hearing aid" means:]
             1203          [(i) an instrument or device having an electronic component that is designed to:]
             1204          [(A) (I) improve impaired human hearing; or]
             1205          [(II) correct impaired human hearing; and]


             1206          [(B) (I) be worn in the human ear; or]
             1207          [(II) affixed behind the human ear;]
             1208          [(ii) an instrument or device that is surgically implanted into the cochlea; or]
             1209          [(iii) a telephone amplifying device.]
             1210          [(b) "Hearing aid" does not include:]
             1211          [(i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or
             1212      device having an electronic component that is designed to be worn on the body;]
             1213          [(ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or
             1214      system designed to be used by one individual, including:]
             1215          [(A) a personal amplifying system;]
             1216          [(B) a personal FM system;]
             1217          [(C) a television listening system; or]
             1218          [(D) a device or system similar to a device or system described in Subsections
             1219      (39)(b)(ii)(A) through (C); or]
             1220          [(iii) an assistive listening device or system designed to be used by more than one
             1221      individual, including:]
             1222          [(A) a device or system installed in:]
             1223          [(I) an auditorium;]
             1224          [(II) a church;]
             1225          [(III) a conference room;]
             1226          [(IV) a synagogue; or]
             1227          [(V) a theater; or]
             1228          [(B) a device or system similar to a device or system described in Subsections
             1229      (39)(b)(iii)(A)(I) through (V).]
             1230          [(40) (a) "Hearing aid accessory" means a hearing aid:]
             1231          [(i) component;]
             1232          [(ii) attachment; or]
             1233          [(iii) accessory.]
             1234          [(b) "Hearing aid accessory" includes:]
             1235          [(i) a hearing aid neck loop;]
             1236          [(ii) a hearing aid cord;]


             1237          [(iii) a hearing aid ear mold;]
             1238          [(iv) hearing aid tubing;]
             1239          [(v) a hearing aid ear hook; or]
             1240          [(vi) a hearing aid remote control.]
             1241          [(c) "Hearing aid accessory" does not include:]
             1242          [(i) a component, attachment, or accessory designed to be used only with an:]
             1243          [(A) instrument or device described in Subsection (39)(b)(i); or]
             1244          [(B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or]
             1245          [(ii) a hearing aid battery.]
             1246          [(41)] (45) "Hydroelectric energy" means water used as the sole source of energy to
             1247      produce electricity.
             1248          [(42)] (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
             1249      or other fuels:
             1250          (a) in mining or extraction of minerals;
             1251          (b) in agricultural operations to produce an agricultural product up to the time of
             1252      harvest or placing the agricultural product into a storage facility, including:
             1253          (i) commercial greenhouses;
             1254          (ii) irrigation pumps;
             1255          (iii) farm machinery;
             1256          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             1257      registered under Title 41, Chapter 1a, Part 2, Registration; and
             1258          (v) other farming activities;
             1259          (c) in manufacturing tangible personal property at an establishment described in SIC
             1260      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             1261      Executive Office of the President, Office of Management and Budget;
             1262          (d) by a scrap recycler if:
             1263          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1264      one or more of the following items into prepared grades of processed materials for use in new
             1265      products:
             1266          (A) iron;
             1267          (B) steel;


             1268          (C) nonferrous metal;
             1269          (D) paper;
             1270          (E) glass;
             1271          (F) plastic;
             1272          (G) textile; or
             1273          (H) rubber; and
             1274          (ii) the new products under Subsection [(42)] (46)(d)(i) would otherwise be made with
             1275      nonrecycled materials; or
             1276          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             1277      cogeneration facility as defined in Section 54-2-1 .
             1278          [(43)] (47) (a) Except as provided in Subsection [(43)] (47)(b), "installation charge"
             1279      means a charge for installing:
             1280          (i) tangible personal property; or
             1281          (ii) a product transferred electronically.
             1282          (b) [Notwithstanding Subsection (43)(a), "installation] "Installation charge" does not
             1283      include a charge for repairs or renovations of:
             1284          (i) tangible personal property; or
             1285          (ii) a product transferred electronically.
             1286          [(44)] (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             1287      personal property or a product transferred electronically for:
             1288          (i) (A) a fixed term; or
             1289          (B) an indeterminate term; and
             1290          (ii) consideration.
             1291          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             1292      amount of consideration may be increased or decreased by reference to the amount realized
             1293      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             1294      Code.
             1295          (c) "Lease" or "rental" does not include:
             1296          (i) a transfer of possession or control of property under a security agreement or
             1297      deferred payment plan that requires the transfer of title upon completion of the required
             1298      payments;


             1299          (ii) a transfer of possession or control of property under an agreement that requires the
             1300      transfer of title:
             1301          (A) upon completion of required payments; and
             1302          (B) if the payment of an option price does not exceed the greater of:
             1303          (I) $100; or
             1304          (II) 1% of the total required payments; or
             1305          (iii) providing tangible personal property along with an operator for a fixed period of
             1306      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             1307      designed.
             1308          (d) For purposes of Subsection [(44)] (48)(c)(iii), an operator is necessary for
             1309      equipment to perform as designed if the operator's duties exceed the:
             1310          (i) set-up of tangible personal property;
             1311          (ii) maintenance of tangible personal property; or
             1312          (iii) inspection of tangible personal property.
             1313          [(45)] (49) "Load and leave" means delivery to a purchaser by use of a tangible storage
             1314      media if the tangible storage media is not physically transferred to the purchaser.
             1315          [(46)] (50) "Local taxing jurisdiction" means a:
             1316          (a) county that is authorized to impose an agreement sales and use tax;
             1317          (b) city that is authorized to impose an agreement sales and use tax; or
             1318          (c) town that is authorized to impose an agreement sales and use tax.
             1319          [(47)] (51) "Manufactured home" is as defined in Section 58-56-3 .
             1320          [(48)] (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
             1321          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             1322      Industrial Classification Manual of the federal Executive Office of the President, Office of
             1323      Management and Budget;
             1324          (b) a scrap recycler if:
             1325          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1326      one or more of the following items into prepared grades of processed materials for use in new
             1327      products:
             1328          (A) iron;
             1329          (B) steel;


             1330          (C) nonferrous metal;
             1331          (D) paper;
             1332          (E) glass;
             1333          (F) plastic;
             1334          (G) textile; or
             1335          (H) rubber; and
             1336          (ii) the new products under Subsection [(48)] (52)(b)(i) would otherwise be made with
             1337      nonrecycled materials; or
             1338          (c) a cogeneration facility as defined in Section 54-2-1 .
             1339          [(49)] (53) "Member of the immediate family of the producer" means a person who is
             1340      related to a producer described in Subsection 59-12-104 (20)(a) as a:
             1341          (a) child or stepchild, regardless of whether the child or stepchild is:
             1342          (i) an adopted child or adopted stepchild; or
             1343          (ii) a foster child or foster stepchild;
             1344          (b) grandchild or stepgrandchild;
             1345          (c) grandparent or stepgrandparent;
             1346          (d) nephew or stepnephew;
             1347          (e) niece or stepniece;
             1348          (f) parent or stepparent;
             1349          (g) sibling or stepsibling;
             1350          (h) spouse;
             1351          (i) person who is the spouse of a person described in Subsections [(49)] (53)(a) through
             1352      (g); or
             1353          (j) person similar to a person described in Subsections [(49)] (53)(a) through (i) as
             1354      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             1355      Administrative Rulemaking Act.
             1356          [(50)] (54) "Mobile home" is as defined in Section 58-56-3 .
             1357          [(51)] (55) "Mobile telecommunications service" is as defined in the Mobile
             1358      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1359          (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
             1360      the technology used, if:


             1361          (i) the origination point of the conveyance, routing, or transmission is fixed;
             1362          (ii) the termination point of the conveyance, routing, or transmission is fixed; or
             1363          (iii) the origination point described in Subsection (56)(a)(i) and the termination point
             1364      described in Subsection (56)(a)(ii) are fixed.
             1365          (b) "Mobile wireless service" includes a telecommunications service that is provided
             1366      by a commercial mobile radio service provider.
             1367          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1368      commission may by rule define "commercial mobile radio service provider."
             1369          [(52)] (57) (a) Except as provided in Subsection [(52)] (57)(c), "mobility enhancing
             1370      equipment" means equipment that is:
             1371          (i) primarily and customarily used to provide or increase the ability to move from one
             1372      place to another;
             1373          (ii) appropriate for use in a:
             1374          (A) home; or
             1375          (B) motor vehicle; and
             1376          (iii) not generally used by persons with normal mobility.
             1377          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             1378      the equipment described in Subsection [(52)] (57)(a).
             1379          (c) Notwithstanding Subsection [(52)] (57)(a), "mobility enhancing equipment" does
             1380      not include:
             1381          (i) a motor vehicle;
             1382          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1383      vehicle manufacturer;
             1384          (iii) durable medical equipment; or
             1385          (iv) a prosthetic device.
             1386          [(53)] (58) "Model 1 seller" means a seller that has selected a certified service provider
             1387      as the seller's agent to perform all of the seller's sales and use tax functions for agreement sales
             1388      and use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             1389      seller's own purchases.
             1390          [(54)] (59) "Model 2 seller" means a seller that:
             1391          (a) except as provided in Subsection [(54)] (59)(b), has selected a certified automated


             1392      system to perform the seller's sales tax functions for agreement sales and use taxes; and
             1393          (b) notwithstanding Subsection [(54)] (59)(a), retains responsibility for remitting all of
             1394      the sales tax:
             1395          (i) collected by the seller; and
             1396          (ii) to the appropriate local taxing jurisdiction.
             1397          [(55)] (60) (a) Subject to Subsection [(55)] (60)(b), "model 3 seller" means a seller that
             1398      has:
             1399          (i) sales in at least five states that are members of the agreement;
             1400          (ii) total annual sales revenues of at least $500,000,000;
             1401          (iii) a proprietary system that calculates the amount of tax:
             1402          (A) for an agreement sales and use tax; and
             1403          (B) due to each local taxing jurisdiction; and
             1404          (iv) entered into a performance agreement with the governing board of the agreement.
             1405          (b) For purposes of Subsection [(55)] (60)(a), "model 3 seller" includes an affiliated
             1406      group of sellers using the same proprietary system.
             1407          [(56)] (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
             1408          [(57)] (62) "Motor vehicle" is as defined in Section 41-1a-102 .
             1409          [(58)] (63) "Oil shale" means a group of fine black to dark brown shales containing
             1410      bituminous material that yields petroleum upon distillation.
             1411          [(59)] (64) (a) "Other fuels" means products that burn independently to produce heat or
             1412      energy.
             1413          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1414      personal property.
             1415          (65) (a) "Paging service" means a telecommunications service that provides
             1416      transmission of a coded radio signal for the purpose of activating a specific pager.
             1417          (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
             1418      includes a transmission by message or sound.
             1419          [(60)] (66) "Pawnbroker" is as defined in Section 13-32a-102 .
             1420          [(61)] (67) "Pawn transaction" is as defined in Section 13-32a-102 .
             1421          [(62)] (68) (a) "Permanently attached to real property" means that for tangible personal
             1422      property attached to real property:


             1423          (i) the attachment of the tangible personal property to the real property:
             1424          (A) is essential to the use of the tangible personal property; and
             1425          (B) suggests that the tangible personal property will remain attached to the real
             1426      property in the same place over the useful life of the tangible personal property; or
             1427          (ii) if the tangible personal property is detached from the real property, the detachment
             1428      would:
             1429          (A) cause substantial damage to the tangible personal property; or
             1430          (B) require substantial alteration or repair of the real property to which the tangible
             1431      personal property is attached.
             1432          (b) "Permanently attached to real property" includes:
             1433          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             1434          (A) essential to the operation of the tangible personal property; and
             1435          (B) attached only to facilitate the operation of the tangible personal property;
             1436          (ii) a temporary detachment of tangible personal property from real property for a
             1437      repair or renovation if the repair or renovation is performed where the tangible personal
             1438      property and real property are located; or
             1439          (iii) an attachment of the following tangible personal property to real property,
             1440      regardless of whether the attachment to real property is only through a line that supplies water,
             1441      electricity, gas, [telephone] telecommunications service, cable, or supplies a similar item as
             1442      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             1443      Administrative Rulemaking Act:
             1444          (A) property attached to oil, gas, or water pipelines, other than the property listed in
             1445      Subsection [(62)] (68)(c)(iii);
             1446          (B) a hot water heater;
             1447          (C) a water softener system; or
             1448          (D) a water filtration system, other than a water filtration system manufactured as part
             1449      of a refrigerator.
             1450          (c) "Permanently attached to real property" does not include:
             1451          (i) the attachment of portable or movable tangible personal property to real property if
             1452      that portable or movable tangible personal property is attached to real property only for:
             1453          (A) convenience;


             1454          (B) stability; or
             1455          (C) for an obvious temporary purpose;
             1456          (ii) the detachment of tangible personal property from real property other than the
             1457      detachment described in Subsection [(62)] (68)(b)(ii); or
             1458          (iii) an attachment of the following tangible personal property to real property if the
             1459      attachment to real property is only through a line that supplies water, electricity, gas,
             1460      [telephone] telecommunications, cable, or supplies a similar item as determined by the
             1461      commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative
             1462      Rulemaking Act:
             1463          (A) a refrigerator;
             1464          (B) a washer;
             1465          (C) a dryer;
             1466          (D) a stove;
             1467          (E) a television;
             1468          (F) a computer;
             1469          (G) a telephone; or
             1470          (H) tangible personal property similar to Subsections [(62)] (68)(c)(iii)(A) through (G)
             1471      as determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             1472      Administrative Rulemaking Act.
             1473          [(63)] (69) "Person" includes any individual, firm, partnership, joint venture,
             1474      association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
             1475      city, municipality, district, or other local governmental entity of the state, or any group or
             1476      combination acting as a unit.
             1477          [(64)] (70) "Place of primary use":
             1478          (a) for [telephone] telecommunications service other than mobile telecommunications
             1479      service, means the street address representative of where the purchaser's use of the [telephone]
             1480      telecommunications service primarily occurs, which shall be:
             1481          (i) the residential street address of the purchaser; or
             1482          (ii) the primary business street address of the purchaser; or
             1483          (b) for mobile telecommunications service, is as defined in the Mobile
             1484      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.


             1485          (71) (a) "Postpaid calling service" means a telecommunications service a person
             1486      obtains by making a payment on a call-by-call basis:
             1487          (i) through the use of a:
             1488          (A) bank card;
             1489          (B) credit card;
             1490          (C) debit card; or
             1491          (D) travel card; or
             1492          (ii) by a charge made to a telephone number that is not associated with the origination
             1493      or termination of the telecommunications service.
             1494          (b) "Postpaid calling service" includes a service that would be a prepaid wireless
             1495      calling service if the service were exclusively a telecommunications service.
             1496          [(65)] (72) "Postproduction" means an activity related to the finishing or duplication of
             1497      a medium described in Subsection 59-12-104 [(56)] (55)(a).
             1498          (73) "Prepaid calling service" means a telecommunications service:
             1499          (a) that allows a purchaser access to telecommunications service that is exclusively
             1500      telecommunications service;
             1501          (b) that:
             1502          (i) is paid for in advance; and
             1503          (ii) enables the origination of a call using an:
             1504          (A) access number; or
             1505          (B) authorization code;
             1506          (c) that is dialed:
             1507          (i) manually; or
             1508          (ii) electronically; and
             1509          (d) sold in predetermined units or dollars that decline:
             1510          (i) by a known amount; and
             1511          (ii) with use.
             1512          (74) "Prepaid wireless calling service" means a telecommunications service:
             1513          (a) that provides the right to utilize:
             1514          (i) mobile wireless service; and
             1515          (ii) other service that is not a telecommunications service, including:


             1516          (A) the download of a product transferred electronically;
             1517          (B) a content service; or
             1518          (C) an ancillary service;
             1519          (b) that:
             1520          (i) is paid for in advance; and
             1521          (ii) enables the origination of a call using an:
             1522          (A) access number; or
             1523          (B) authorization code;
             1524          (c) that is dialed:
             1525          (i) manually; or
             1526          (ii) electronically; and
             1527          (d) sold in predetermined units or dollars that decline:
             1528          (i) by a known amount; and
             1529          (ii) with use.
             1530          [(66)] (75) (a) "Prepared food" means:
             1531          (i) food:
             1532          (A) sold in a heated state; or
             1533          (B) heated by a seller;
             1534          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1535      item; or
             1536          (iii) except as provided in Subsection [(66)] (75)(c), food sold with an eating utensil
             1537      provided by the seller, including a:
             1538          (A) plate;
             1539          (B) knife;
             1540          (C) fork;
             1541          (D) spoon;
             1542          (E) glass;
             1543          (F) cup;
             1544          (G) napkin; or
             1545          (H) straw.
             1546          (b) "Prepared food" does not include:


             1547          (i) food that a seller only:
             1548          (A) cuts;
             1549          (B) repackages; or
             1550          (C) pasteurizes; or
             1551          (ii) (A) the following:
             1552          (I) raw egg;
             1553          (II) raw fish;
             1554          (III) raw meat;
             1555          (IV) raw poultry; or
             1556          (V) a food containing an item described in Subsections [(66)] (75)(b)(ii)(A)(I) through
             1557      (IV); and
             1558          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1559      Food and Drug Administration's Food Code that a consumer cook the items described in
             1560      Subsection [(66)] (75)(b)(ii)(A) to prevent food borne illness; or
             1561          (iii) the following if sold without eating utensils provided by the seller:
             1562          (A) food and food ingredients sold by a seller if the seller's proper primary
             1563      classification under the 2002 North American Industry Classification System of the federal
             1564      Executive Office of the President, Office of Management and Budget, is manufacturing in
             1565      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             1566      Manufacturing;
             1567          (B) food and food ingredients sold in an unheated state:
             1568          (I) by weight or volume; and
             1569          (II) as a single item; or
             1570          (C) a bakery item, including:
             1571          (I) a bagel;
             1572          (II) a bar;
             1573          (III) a biscuit;
             1574          (IV) bread;
             1575          (V) a bun;
             1576          (VI) a cake;
             1577          (VII) a cookie;


             1578          (VIII) a croissant;
             1579          (IX) a danish;
             1580          (X) a donut;
             1581          (XI) a muffin;
             1582          (XII) a pastry;
             1583          (XIII) a pie;
             1584          (XIV) a roll;
             1585          (XV) a tart;
             1586          (XVI) a torte; or
             1587          (XVII) a tortilla.
             1588          (c) Notwithstanding Subsection [(66)] (75)(a)(iii), an eating utensil provided by the
             1589      seller does not include the following used to transport the food:
             1590          (i) a container; or
             1591          (ii) packaging.
             1592          [(67)] (76) "Prescription" means an order, formula, or recipe that is issued:
             1593          (a) (i) orally;
             1594          (ii) in writing;
             1595          (iii) electronically; or
             1596          (iv) by any other manner of transmission; and
             1597          (b) by a licensed practitioner authorized by the laws of a state.
             1598          [(68)] (77) (a) Except as provided in Subsection [(68)] (77)(b)(ii) or (iii), "prewritten
             1599      computer software" means computer software that is not designed and developed:
             1600          (i) by the author or other creator of the computer software; and
             1601          (ii) to the specifications of a specific purchaser.
             1602          (b) "Prewritten computer software" includes:
             1603          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1604      software is not designed and developed:
             1605          (A) by the author or other creator of the computer software; and
             1606          (B) to the specifications of a specific purchaser;
             1607          (ii) notwithstanding Subsection [(68)] (77)(a), computer software designed and
             1608      developed by the author or other creator of the computer software to the specifications of a


             1609      specific purchaser if the computer software is sold to a person other than the purchaser; or
             1610          (iii) notwithstanding Subsection [(68)] (77)(a) and except as provided in Subsection
             1611      [(68)] (77)(c), prewritten computer software or a prewritten portion of prewritten computer
             1612      software:
             1613          (A) that is modified or enhanced to any degree; and
             1614          (B) if the modification or enhancement described in Subsection [(68)] (77)(b)(iii)(A) is
             1615      designed and developed to the specifications of a specific purchaser.
             1616          (c) Notwithstanding Subsection [(68)] (77)(b)(iii), "prewritten computer software"
             1617      does not include a modification or enhancement described in Subsection [(68)] (77)(b)(iii) if
             1618      the charges for the modification or enhancement are:
             1619          (i) reasonable; and
             1620          (ii) separately stated on the invoice or other statement of price provided to the
             1621      purchaser.
             1622          (78) (a) "Private communication service" means a telecommunications service:
             1623          (i) that entitles a customer to exclusive or priority use of one or more communications
             1624      channels between or among termination points; and
             1625          (ii) regardless of the manner in which the one or more communications channels are
             1626      connected.
             1627          (b) "Private communications service" includes the following provided in connection
             1628      with the use of one or more communications channels:
             1629          (i) an extension line;
             1630          (ii) a station; or
             1631          (iii) switching capacity.
             1632          [(69)] (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1633          (i) artificially replace a missing portion of the body;
             1634          (ii) prevent or correct a physical deformity or physical malfunction; or
             1635          (iii) support a weak or deformed portion of the body.
             1636          (b) "Prosthetic device" includes:
             1637          (i) parts used in the repairs or renovation of a prosthetic device;
             1638          (ii) replacement parts for a prosthetic device; [or]
             1639          (iii) a dental prosthesis[.]; or


             1640          (iv) a hearing aid.
             1641          (c) "Prosthetic device" does not include:
             1642          (i) corrective eyeglasses; or
             1643          (ii) contact lenses[; or].
             1644          [(iii) hearing aids.]
             1645          [(70)] (80) (a) "Protective equipment" means an item:
             1646          (i) for human wear; and
             1647          (ii) that is:
             1648          (A) designed as protection:
             1649          (I) to the wearer against injury or disease; or
             1650          (II) against damage or injury of other persons or property; and
             1651          (B) not suitable for general use.
             1652          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1653      commission shall make rules:
             1654          (i) listing the items that constitute "protective equipment"; and
             1655          (ii) that are consistent with the list of items that constitute "protective equipment"
             1656      under the agreement.
             1657          [(71)] (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             1658      written or printed matter, other than a photocopy:
             1659          (i) regardless of:
             1660          (A) characteristics;
             1661          (B) copyright;
             1662          (C) form;
             1663          (D) format;
             1664          (E) method of reproduction; or
             1665          (F) source; and
             1666          (ii) made available in printed or electronic format.
             1667          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1668      commission may by rule define the term "photocopy."
             1669          [(72)] (82) (a) "Purchase price" and "sales price" mean the total amount of
             1670      consideration:


             1671          (i) valued in money; and
             1672          (ii) for which tangible personal property, a product transferred electronically, or
             1673      services are:
             1674          (A) sold;
             1675          (B) leased; or
             1676          (C) rented.
             1677          (b) "Purchase price" and "sales price" include:
             1678          (i) the seller's cost of the tangible personal property, a product transferred
             1679      electronically, or services sold;
             1680          (ii) expenses of the seller, including:
             1681          (A) the cost of materials used;
             1682          (B) a labor cost;
             1683          (C) a service cost;
             1684          (D) interest;
             1685          (E) a loss;
             1686          (F) the cost of transportation to the seller; or
             1687          (G) a tax imposed on the seller; [or]
             1688          (iii) a charge by the seller for any service necessary to complete the sale[.]; or
             1689          (iv) consideration a seller receives from a person other than the purchaser if:
             1690          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1691      and
             1692          (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
             1693      price reduction or discount on the sale;
             1694          (B) the seller has an obligation to pass the price reduction or discount through to the
             1695      purchaser;
             1696          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1697      the seller at the time of the sale to the purchaser; and
             1698          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1699      seller to claim a price reduction or discount; and
             1700          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1701      coupon, or other documentation with the understanding that the person other than the seller


             1702      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1703          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1704      organization allowed a price reduction or discount, except that a preferred customer card that is
             1705      available to any patron of a seller does not constitute membership in a group or organization
             1706      allowed a price reduction or discount; or
             1707          (III) the price reduction or discount is identified as a third party price reduction or
             1708      discount on the:
             1709          (Aa) invoice the purchaser receives; or
             1710          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1711          (c) "Purchase price" and "sales price" do not include:
             1712          (i) a discount:
             1713          (A) in a form including:
             1714          (I) cash;
             1715          (II) term; or
             1716          (III) coupon;
             1717          (B) that is allowed by a seller;
             1718          (C) taken by a purchaser on a sale; and
             1719          (D) that is not reimbursed by a third party; or
             1720          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1721      provided to the purchaser:
             1722          [(A) the amount of a trade-in;]
             1723          [(B)] (A) the following from credit extended on the sale of tangible personal property
             1724      or services:
             1725          (I) [interest charges] a carrying charge;
             1726          (II) a financing [charges] charge; or
             1727          (III) [carrying charges] an interest charge;
             1728          [(C) a tax or fee legally imposed directly on the consumer;]
             1729          [(D)] (B) a delivery charge; [or]
             1730          [(E)] (C) an installation charge[.];
             1731          (D) a manufacturer rebate on a motor vehicle; or
             1732          (E) a tax or fee legally imposed directly on the consumer.


             1733          [(73)] (83) "Purchaser" means a person to whom:
             1734          (a) a sale of tangible personal property is made; [or]
             1735          (b) a product is transferred electronically; or
             1736          [(b)] (c) a service is furnished.
             1737          [(74)] (84) "Regularly rented" means:
             1738          (a) rented to a guest for value three or more times during a calendar year; or
             1739          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1740      value.
             1741          [(75)] (85) "Renewable energy" means:
             1742          (a) biomass energy;
             1743          (b) hydroelectric energy;
             1744          (c) geothermal energy;
             1745          (d) solar energy; or
             1746          (e) wind energy.
             1747          [(76)] (86) (a) "Renewable energy production facility" means a facility that:
             1748          (i) uses renewable energy to produce electricity; and
             1749          (ii) has a production capacity of 20 kilowatts or greater.
             1750          (b) A facility is a renewable energy production facility regardless of whether the
             1751      facility is:
             1752          (i) connected to an electric grid; or
             1753          (ii) located on the premises of an electricity consumer.
             1754          [(77)] (87) "Rental" is as defined in Subsection [(44)] (48).
             1755          [(78)] (88) "Repairs or renovations of tangible personal property" means:
             1756          (a) a repair or renovation of tangible personal property that is not permanently attached
             1757      to real property; or
             1758          (b) attaching tangible personal property or a product that is transferred electronically to
             1759      other tangible personal property if the other tangible personal property to which the tangible
             1760      personal property or product that is transferred electronically is attached is not permanently
             1761      attached to real property.
             1762          [(79)] (89) "Research and development" means the process of inquiry or
             1763      experimentation aimed at the discovery of facts, devices, technologies, or applications and the


             1764      process of preparing those devices, technologies, or applications for marketing.
             1765          (90) (a) "Residential telecommunications services" means a telecommunications
             1766      service or an ancillary service that is provided to an individual for personal use:
             1767          (i) at a residential address; or
             1768          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1769      service or ancillary service is provided to and paid for by the individual residing at the
             1770      institution rather than the institution.
             1771          (b) For purposes of Subsection (90)(a), a residential address includes an:
             1772          (i) apartment; or
             1773          (ii) other individual dwelling unit.
             1774          [(80)] (91) "Residential use" means the use in or around a home, apartment building,
             1775      sleeping quarters, and similar facilities or accommodations.
             1776          [(81)] (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             1777      other than:
             1778          (a) resale;
             1779          (b) sublease; or
             1780          (c) subrent.
             1781          [(82)] (93) (a) "Retailer" means any person engaged in a regularly organized business
             1782      in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
             1783      and who is selling to the user or consumer and not for resale.
             1784          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1785      engaged in the business of selling to users or consumers within the state.
             1786          [(83)] (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1787      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1788      Subsection 59-12-103 (1), for consideration.
             1789          (b) "Sale" includes:
             1790          (i) installment and credit sales;
             1791          (ii) any closed transaction constituting a sale;
             1792          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1793      chapter;
             1794          (iv) any transaction if the possession of property is transferred but the seller retains the


             1795      title as security for the payment of the price; and
             1796          (v) any transaction under which right to possession, operation, or use of any article of
             1797      tangible personal property is granted under a lease or contract and the transfer of possession
             1798      would be taxable if an outright sale were made.
             1799          [(84)] (95) "Sale at retail" is as defined in Subsection [(81)] (92).
             1800          [(85)] (96) "Sale-leaseback transaction" means a transaction by which title to tangible
             1801      personal property or a product transferred electronically that is subject to a tax under this
             1802      chapter is transferred:
             1803          (a) by a purchaser-lessee;
             1804          (b) to a lessor;
             1805          (c) for consideration; and
             1806          (d) if:
             1807          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1808      of the tangible personal property or product transferred electronically;
             1809          (ii) the sale of the tangible personal property or product transferred electronically to the
             1810      lessor is intended as a form of financing:
             1811          (A) for the tangible personal property or product transferred electronically; and
             1812          (B) to the purchaser-lessee; and
             1813          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1814      is required to:
             1815          (A) capitalize the tangible personal property or product transferred electronically for
             1816      financial reporting purposes; and
             1817          (B) account for the lease payments as payments made under a financing arrangement.
             1818          [(86)] (97) "Sales price" is as defined in Subsection [(72)] (82).
             1819          [(87)] (98) (a) "Sales relating to schools" means the following sales by, amounts paid
             1820      to, or amounts charged by a school:
             1821          (i) sales that are directly related to the school's educational functions or activities
             1822      including:
             1823          (A) the sale of:
             1824          (I) textbooks;
             1825          (II) textbook fees;


             1826          (III) laboratory fees;
             1827          (IV) laboratory supplies; or
             1828          (V) safety equipment;
             1829          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1830      that:
             1831          (I) a student is specifically required to wear as a condition of participation in a
             1832      school-related event or school-related activity; and
             1833          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1834      place of ordinary clothing;
             1835          (C) sales of the following if the net or gross revenues generated by the sales are
             1836      deposited into a school district fund or school fund dedicated to school meals:
             1837          (I) food and food ingredients; or
             1838          (II) prepared food; or
             1839          (D) transportation charges for official school activities; or
             1840          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1841      event or school-related activity.
             1842          (b) "Sales relating to schools" does not include:
             1843          (i) bookstore sales of items that are not educational materials or supplies;
             1844          (ii) except as provided in Subsection [(87)] (98)(a)(i)(B):
             1845          (A) clothing;
             1846          (B) clothing accessories or equipment;
             1847          (C) protective equipment; or
             1848          (D) sports or recreational equipment; or
             1849          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1850      event or school-related activity if the amounts paid or charged are passed through to a person:
             1851          (A) other than a:
             1852          (I) school;
             1853          (II) nonprofit organization authorized by a school board or a governing body of a
             1854      private school to organize and direct a competitive secondary school activity; or
             1855          (III) nonprofit association authorized by a school board or a governing body of a
             1856      private school to organize and direct a competitive secondary school activity; and


             1857          (B) that is required to collect sales and use taxes under this chapter.
             1858          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1859      commission may make rules defining the term "passed through."
             1860          [(88)] (99) For purposes of this section and Section 59-12-104 , "school":
             1861          (a) means:
             1862          (i) an elementary school or a secondary school that:
             1863          (A) is a:
             1864          (I) public school; or
             1865          (II) private school; and
             1866          (B) provides instruction for one or more grades kindergarten through 12; or
             1867          (ii) a public school district; and
             1868          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1869          [(89)] (100) "Seller" means a person that makes a sale, lease, or rental of:
             1870          (a) tangible personal property; [or]
             1871          (b) a product transferred electronically; or
             1872          [(b)] (c) a service.
             1873          [(90)] (101) (a) "Semiconductor fabricating, processing, research, or development
             1874      materials" means tangible personal property or a product transferred electronically if the
             1875      tangible personal property or product transferred electronically is:
             1876          (i) used primarily in the process of:
             1877          (A) (I) manufacturing a semiconductor;
             1878          (II) fabricating a semiconductor; or
             1879          (III) research or development of a:
             1880          (Aa) semiconductor; or
             1881          (Bb) semiconductor manufacturing process; or
             1882          (B) maintaining an environment suitable for a semiconductor; or
             1883          (ii) consumed primarily in the process of:
             1884          (A) (I) manufacturing a semiconductor;
             1885          (II) fabricating a semiconductor; or
             1886          (III) research or development of a:
             1887          (Aa) semiconductor; or


             1888          (Bb) semiconductor manufacturing process; or
             1889          (B) maintaining an environment suitable for a semiconductor.
             1890          (b) "Semiconductor fabricating, processing, research, or development materials"
             1891      includes:
             1892          (i) parts used in the repairs or renovations of tangible personal property or a product
             1893      transferred electronically described in Subsection [(90)] (101)(a); or
             1894          (ii) a chemical, catalyst, or other material used to:
             1895          (A) produce or induce in a semiconductor a:
             1896          (I) chemical change; or
             1897          (II) physical change;
             1898          (B) remove impurities from a semiconductor; or
             1899          (C) improve the marketable condition of a semiconductor.
             1900          [(91)] (102) "Senior citizen center" means a facility having the primary purpose of
             1901      providing services to the aged as defined in Section 62A-3-101 .
             1902          [(92)] (103) "Simplified electronic return" means the electronic return:
             1903          (a) described in Section 318(C) of the agreement; and
             1904          (b) approved by the governing board of the agreement.
             1905          [(93)] (104) "Solar energy" means the sun used as the sole source of energy for
             1906      producing electricity.
             1907          [(94)] (105) (a) "Sports or recreational equipment" means an item:
             1908          (i) designed for human use; and
             1909          (ii) that is:
             1910          (A) worn in conjunction with:
             1911          (I) an athletic activity; or
             1912          (II) a recreational activity; and
             1913          (B) not suitable for general use.
             1914          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1915      commission shall make rules:
             1916          (i) listing the items that constitute "sports or recreational equipment"; and
             1917          (ii) that are consistent with the list of items that constitute "sports or recreational
             1918      equipment" under the agreement.


             1919          [(95)] (106) "State" means the state of Utah, its departments, and agencies.
             1920          [(96)] (107) "Storage" means any keeping or retention of tangible personal property or
             1921      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1922      except sale in the regular course of business.
             1923          [(97)] (108) (a) Except as provided in Subsection (108)(c), "[Tangible] tangible
             1924      personal property" means personal property that:
             1925          (i) may be:
             1926          (A) seen;
             1927          (B) weighed;
             1928          (C) measured;
             1929          (D) felt; or
             1930          (E) touched; or
             1931          (ii) is in any manner perceptible to the senses.
             1932          (b) "Tangible personal property" includes:
             1933          (i) electricity;
             1934          (ii) water;
             1935          (iii) gas;
             1936          (iv) steam; or
             1937          (v) prewritten computer software.
             1938          (c) "Tangible personal property" does not include a product that is transferred
             1939      electronically.
             1940          [(98)] (109) "Tar sands" means impregnated sands that yield mixtures of liquid
             1941      hydrocarbon and require further processing other than mechanical blending before becoming
             1942      finished petroleum products.
             1943          [(99)] (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1944      software" means an item listed in Subsection [(99)] (110)(b) if that item is purchased or leased
             1945      primarily to enable or facilitate one or more of the following to function:
             1946          (i) telecommunications switching or routing equipment, machinery, or software; or
             1947          (ii) telecommunications transmission equipment, machinery, or software.
             1948          (b) The following apply to Subsection [(99)] (110)(a):
             1949          (i) a pole;


             1950          (ii) software;
             1951          (iii) a supplementary power supply;
             1952          (iv) temperature or environmental equipment or machinery;
             1953          (v) test equipment;
             1954          (vi) a tower; or
             1955          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1956      Subsections [(99)] (110)(b)(i) through (vi) as determined by the commission by rule made in
             1957      accordance with Subsection [(99)] (110)(c).
             1958          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1959      commission may by rule define what constitutes equipment, machinery, or software that
             1960      functions similarly to an item listed in Subsections [(99)] (110)(b)(i) through (vi).
             1961          [(100)] (111) "Telecommunications equipment, machinery, or software required for
             1962      911 service" means equipment, machinery, or software that is required to comply with 47
             1963      C.F.R. Sec. 20.18.
             1964          [(101)] (112) "Telecommunications maintenance or repair equipment, machinery, or
             1965      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1966      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1967      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1968      of the following:
             1969          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1970          (b) telecommunications switching or routing equipment, machinery, or software; or
             1971          (c) telecommunications transmission equipment, machinery, or software.
             1972          (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1973      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1974      among or between points.
             1975          (b) "Telecommunications service" includes:
             1976          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1977      processing application is used to act:
             1978          (A) on the code, form, or protocol of the content;
             1979          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1980          (C) regardless of whether the service:


             1981          (I) is referred to as voice over Internet protocol service; or
             1982          (II) is classified by the Federal Communications Commission as enhanced or value
             1983      added;
             1984          (ii) an 800 service;
             1985          (iii) a 900 service;
             1986          (iv) a fixed wireless service;
             1987          (v) a mobile wireless service;
             1988          (vi) a postpaid calling service;
             1989          (vii) a prepaid calling service;
             1990          (viii) a prepaid wireless calling service; or
             1991          (ix) a private communications service.
             1992          (c) "Telecommunications service" does not include:
             1993          (i) advertising, including directory advertising;
             1994          (ii) an ancillary service;
             1995          (iii) a billing and collection service provided to a third party;
             1996          (iv) a data processing and information service if:
             1997          (A) the data processing and information service allows data to be:
             1998          (I) (Aa) acquired;
             1999          (Bb) generated;
             2000          (Cc) processed;
             2001          (Dd) retrieved; or
             2002          (Ee) stored; and
             2003          (II) delivered by an electronic transmission to a purchaser; and
             2004          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2005      or information;
             2006          (v) installation or maintenance of the following on a customer's premises:
             2007          (A) equipment; or
             2008          (B) wiring;
             2009          (vi) Internet access service;
             2010          (vii) a paging service;
             2011          (viii) a product transferred electronically, including:


             2012          (A) music;
             2013          (B) reading material;
             2014          (C) a ring tone;
             2015          (D) software; or
             2016          (E) video;
             2017          (ix) a radio and television audio and video programming service:
             2018          (A) regardless of the medium; and
             2019          (B) including:
             2020          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2021      programming service by a programming service provider;
             2022          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2023          (III) audio and video programming services delivered by a commercial mobile radio
             2024      service provider as defined in 47 C.F.R. Sec. 20.3;
             2025          (x) a value-added nonvoice data service; or
             2026          (xi) tangible personal property.
             2027          [(106)] (114) (a) "[Telephone] Telecommunications service provider" means a person
             2028      that:
             2029          (i) owns, controls, operates, or manages a [telephone] telecommunications service; and
             2030          (ii) engages in an activity described in Subsection [(106)] (114)(a)(i) for the shared use
             2031      with or resale to any person of the [telephone] telecommunications service.
             2032          (b) A person described in Subsection [(106)] (114)(a) is a [telephone]
             2033      telecommunications service provider whether or not the Public Service Commission of Utah
             2034      regulates:
             2035          (i) that person; or
             2036          (ii) the [telephone] telecommunications service that the person owns, controls,
             2037      operates, or manages.
             2038          [(102)] (115) (a) "Telecommunications switching or routing equipment, machinery, or
             2039      software" means an item listed in Subsection [(102)] (115)(b) if that item is purchased or
             2040      leased primarily for switching or routing:
             2041          (i) an ancillary service;
             2042          [(i) voice] (ii) data communications;


             2043          [(ii) data] (iii) voice communications; or
             2044          [(iii) telephone] (iv) telecommunications service.
             2045          (b) The following apply to Subsection [(102)] (115)(a):
             2046          (i) a bridge;
             2047          (ii) a computer;
             2048          (iii) a cross connect;
             2049          (iv) a modem;
             2050          (v) a multiplexer;
             2051          (vi) plug in circuitry;
             2052          (vii) a router;
             2053          (viii) software;
             2054          (ix) a switch; or
             2055          (x) equipment, machinery, or software that functions similarly to an item listed in
             2056      Subsections [(102)] (115)(b)(i) through (ix) as determined by the commission by rule made in
             2057      accordance with Subsection [(102)] (115)(c).
             2058          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2059      commission may by rule define what constitutes equipment, machinery, or software that
             2060      functions similarly to an item listed in Subsections [(102)] (115)(b)(i) through (ix).
             2061          [(103)] (116) (a) "Telecommunications transmission equipment, machinery, or
             2062      software" means an item listed in Subsection [(103)] (116)(b) if that item is purchased or
             2063      leased primarily for sending, receiving, or transporting:
             2064          (i) an ancillary service;
             2065          [(i) voice] (ii) data communications;
             2066          [(ii) data] (iii) voice communications; or
             2067          [(iii) telephone] (iv) telecommunications service.
             2068          (b) The following apply to Subsection [(103)] (116)(a):
             2069          (i) an amplifier;
             2070          (ii) a cable;
             2071          (iii) a closure;
             2072          (iv) a conduit;
             2073          (v) a controller;


             2074          (vi) a duplexer;
             2075          (vii) a filter;
             2076          (viii) an input device;
             2077          (ix) an input/output device;
             2078          (x) an insulator;
             2079          (xi) microwave machinery or equipment;
             2080          (xii) an oscillator;
             2081          (xiii) an output device;
             2082          (xiv) a pedestal;
             2083          (xv) a power converter;
             2084          (xvi) a power supply;
             2085          (xvii) a radio channel;
             2086          (xviii) a radio receiver;
             2087          (xix) a radio transmitter;
             2088          (xx) a repeater;
             2089          (xxi) software;
             2090          (xxii) a terminal;
             2091          (xxiii) a timing unit;
             2092          (xxiv) a transformer;
             2093          (xxv) a wire; or
             2094          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2095      Subsections [(103)] (116)(b)(i) through (xxv) as determined by the commission by rule made in
             2096      accordance with Subsection [(103)] (116)(c).
             2097          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2098      commission may by rule define what constitutes equipment, machinery, or software that
             2099      functions similarly to an item listed in Subsections [(103)] (116)(b)(i) through (xxv).
             2100          [(104) (a) "Telephone service" means a two-way transmission:]
             2101          [(i) by:]
             2102          [(A) wire;]
             2103          [(B) radio;]
             2104          [(C) lightwave; or]


             2105          [(D) other electromagnetic means; and]
             2106          [(ii) of one or more of the following:]
             2107          [(A) a sign;]
             2108          [(B) a signal;]
             2109          [(C) writing;]
             2110          [(D) an image;]
             2111          [(E) sound;]
             2112          [(F) a message;]
             2113          [(G) data; or]
             2114          [(H) other information of any nature.]
             2115          [(b) "Telephone service" includes:]
             2116          [(i) mobile telecommunications service;]
             2117          [(ii) private communications service; or]
             2118          [(iii) automated digital telephone answering service.]
             2119          [(c) "Telephone service" does not include a service or a transaction that a state or a
             2120      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             2121      Tax Freedom Act, Pub. L. No. 105-277.]
             2122          [(105) Notwithstanding where a call is billed or paid, "telephone service address"
             2123      means:]
             2124          [(a) if the location described in this Subsection (105)(a) is known, the location of the
             2125      telephone service equipment:]
             2126          [(i) to which a call is charged; and]
             2127          [(ii) from which the call originates or terminates;]
             2128          [(b) if the location described in Subsection (105)(a) is not known but the location
             2129      described in this Subsection (105)(b) is known, the location of the origination point of the
             2130      signal of the telephone service first identified by:]
             2131          [(i) the telecommunications system of the seller; or]
             2132          [(ii) if the system used to transport the signal is not that of the seller, information
             2133      received by the seller from its service provider; or]
             2134          [(c) if the locations described in Subsection (105)(a) or (b) are not known, the location
             2135      of a purchaser's primary place of use.]


             2136          [(107)] (117) "Tobacco" means:
             2137          (a) a cigarette;
             2138          (b) a cigar;
             2139          (c) chewing tobacco;
             2140          (d) pipe tobacco; or
             2141          (e) any other item that contains tobacco.
             2142          [(108)] (118) "Unassisted amusement device" means an amusement device, skill
             2143      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             2144      operate the amusement device, skill device, or ride device.
             2145          [(109)] (119) (a) "Use" means the exercise of any right or power over tangible personal
             2146      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2147      incident to the ownership or the leasing of that tangible personal property, [item] product
             2148      transferred electronically, or service.
             2149          (b) "Use" does not include the sale, display, demonstration, or trial of [that property]
             2150      tangible personal property, a product transferred electronically, or a service in the regular
             2151      course of business and held for resale.
             2152          (120) "Value-added nonvoice data service" means a service:
             2153          (a) that otherwise meets the definition of a telecommunications service except that a
             2154      computer processing application is used to act primarily for a purpose other than conveyance,
             2155      routing, or transmission; and
             2156          (b) with respect to which a computer processing application is used to act on data or
             2157      information:
             2158          (i) code;
             2159          (ii) content;
             2160          (iii) form; or
             2161          (iv) protocol.
             2162          [(110)] (121) (a) Subject to Subsection [(110)] (121)(b), "vehicle" means the following
             2163      that are required to be titled, registered, or titled and registered:
             2164          (i) an aircraft as defined in Section 72-10-102 ;
             2165          (ii) a vehicle as defined in Section 41-1a-102 ;
             2166          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or


             2167          (iv) a vessel as defined in Section 41-1a-102 .
             2168          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             2169          (i) a vehicle described in Subsection [(110)] (121)(a); or
             2170          (ii) (A) a locomotive;
             2171          (B) a freight car;
             2172          (C) railroad work equipment; or
             2173          (D) other railroad rolling stock.
             2174          [(111)] (122) "Vehicle dealer" means a person engaged in the business of buying,
             2175      selling, or exchanging a vehicle as defined in Subsection [(110)] (121).
             2176          (123) (a) "Vertical service" means an ancillary service that:
             2177          (i) is offered in connection with one or more telecommunications services; and
             2178          (ii) offers an advanced calling feature that allows a customer to:
             2179          (A) identify a caller; and
             2180          (B) manage multiple calls and call connections.
             2181          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2182      conference bridging service.
             2183          (124) (a) "Voice mail service" means an ancillary service that enables a customer to
             2184      receive, send, or store a recorded message.
             2185          (b) "Voice mail service" does not include a vertical service that a customer is required
             2186      to have in order to utilize a voice mail service.
             2187          [(112)] (125) (a) Except as provided in Subsection [(112)] (125)(b), "waste energy
             2188      facility" means a facility that generates electricity:
             2189          (i) using as the primary source of energy waste materials that would be placed in a
             2190      landfill or refuse pit if it were not used to generate electricity, including:
             2191          (A) tires;
             2192          (B) waste coal; or
             2193          (C) oil shale; and
             2194          (ii) in amounts greater than actually required for the operation of the facility.
             2195          (b) "Waste energy facility" does not include a facility that incinerates:
             2196          (i) municipal solid waste;
             2197          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or


             2198          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2199          [(113)] (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2200          [(114)] (127) "Wind energy" means wind used as the sole source of energy to produce
             2201      electricity.
             2202          [(115)] (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             2203      geographic location by the United States Postal Service.
             2204          Section 9. Section 59-12-102.3 is enacted to read:
             2205          59-12-102.3. Authority to enter into agreement -- Delegates.
             2206          (1) The commission may apply to the governing board for the state to become a party
             2207      to the agreement.
             2208          (2) If the state becomes a party to the agreement, the commission may:
             2209          (a) establish standards for certification of a:
             2210          (i) certified automated system; and
             2211          (ii) certified service provider; and
             2212          (b) act jointly with other states that are parties to the agreement to establish
             2213      performance standards for multistate sellers; and
             2214          (c) take other actions reasonably required to implement provisions of the agreement:
             2215          (i) if those actions are not in conflict with statute; and
             2216          (ii) subject to Subsection (1)(c)(i), including:
             2217          (A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2218      adopting administrative rules; and
             2219          (B) in furtherance of the agreement, jointly procuring goods or services with other
             2220      states that are parties to the agreement.
             2221          (3) Subject to Subsection (4), delegates shall be appointed to the governing board of
             2222      the agreement to:
             2223          (a) assist in implementing the provisions of the agreement; and
             2224          (b) address other matters as determined by the governing board.
             2225          (4) Delegates shall be appointed as follows:
             2226          (a) one delegate shall be a member of the House of Representatives appointed by the
             2227      speaker of the House of Representatives;
             2228          (b) one delegate shall be a member of the Senate appointed by the president of the


             2229      Senate; and
             2230          (c) two delegates shall be appointed by the governor, at least one of whom shall be
             2231      from the commission.
             2232          Section 10. Section 59-12-103 is amended to read:
             2233           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             2234      tax revenues.
             2235          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             2236      charged for the following transactions:
             2237          (a) retail sales of tangible personal property made within the state;
             2238          (b) amounts paid for:
             2239          [(i) to a:]
             2240          [(A) telephone service provider regardless of whether the telephone service provider is
             2241      municipally or privately owned; or]
             2242          [(B) telegraph corporation:]
             2243          [(I) as defined in Section 54-2-1 ; and]
             2244          [(II) regardless of whether the telegraph corporation is municipally or privately owned;
             2245      and]
             2246          [(ii) for:]
             2247          [(A)] (i) [telephone] telecommunications service, other than mobile
             2248      telecommunications service, that originates and terminates within the boundaries of this state;
             2249          [(B)] (ii) mobile telecommunications service that originates and terminates within the
             2250      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             2251      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             2252          [(C) telegraph service;]
             2253          (iii) an ancillary service associated with a:
             2254          (A) telecommunications service described in Subsection (1)(b)(i); or
             2255          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             2256          (c) sales of the following for commercial use:
             2257          (i) gas;
             2258          (ii) electricity;
             2259          (iii) heat;


             2260          (iv) coal;
             2261          (v) fuel oil; or
             2262          (vi) other fuels;
             2263          (d) sales of the following for residential use:
             2264          (i) gas;
             2265          (ii) electricity;
             2266          (iii) heat;
             2267          (iv) coal;
             2268          (v) fuel oil; or
             2269          (vi) other fuels;
             2270          (e) sales of prepared food;
             2271          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             2272      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             2273      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             2274      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             2275      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             2276      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             2277      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             2278      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             2279      exhibition, cultural, or athletic activity;
             2280          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             2281      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             2282          (i) the tangible personal property; and
             2283          (ii) parts used in the repairs or renovations of the tangible personal property described
             2284      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             2285      of that tangible personal property;
             2286          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             2287      assisted cleaning or washing of tangible personal property;
             2288          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             2289      accommodations and services that are regularly rented for less than 30 consecutive days;
             2290          (j) amounts paid or charged for laundry or dry cleaning services;


             2291          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             2292      this state the tangible personal property is:
             2293          (i) stored;
             2294          (ii) used; or
             2295          (iii) otherwise consumed;
             2296          (l) amounts paid or charged for tangible personal property if within this state the
             2297      tangible personal property is:
             2298          (i) stored;
             2299          (ii) used; or
             2300          (iii) consumed; [and]
             2301          (m) amounts paid or charged for prepaid telephone calling cards[.]; and
             2302          (n) amounts paid or charged for a sale:
             2303          (i) (A) of a product that:
             2304          (I) is transferred electronically; and
             2305          (II) would be subject to a tax under this chapter if the product was transferred in a
             2306      manner other than electronically; or
             2307          (B) of a repair or renovation of a product that:
             2308          (I) is transferred electronically; and
             2309          (II) would be subject to a tax under this chapter if the product was transferred in a
             2310      manner other than electronically; and
             2311          (ii) regardless of whether the sale provides:
             2312          (A) a right of permanent use of the product; or
             2313          (B) a right to use the product that is less than a permanent use, including a right:
             2314          (I) for a definite or specified length of time; and
             2315          (II) that terminates upon the occurrence of a condition.
             2316          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             2317      is imposed on a transaction described in Subsection (1) equal to the sum of:
             2318          (i) a state tax imposed on the transaction at a tax rate of 4.65%; 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
             2334      with Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state tax and a
             2335      local 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 the tax rate described in
             2356      Subsection (2)(a)(i); and
             2357          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             2358      described in Subsection (2)(a)(ii).
             2359          [(iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
             2360      a seller in accordance with Subsection 59-12-107 (1)(b), beginning on January 1, 2007, a state
             2361      tax and a local tax is imposed on the entire bundled transaction equal to the sum of:]
             2362          [(A) a state tax imposed on the entire bundled transaction at the tax rate described in
             2363      Subsection (2)(d)(i)(A); and]
             2364          [(B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
             2365      of the following tax rates:]
             2366          [(I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             2367      and towns in the state impose the tax authorized by Section 59-12-204 ; and]
             2368          [(II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             2369      state impose the tax authorized by Section 59-12-1102 .]
             2370          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             2371      transaction described in Subsection (2)(d)(i):
             2372          (A) if the sales price of the bundled transaction is attributable to tangible personal
             2373      property, a product, or a service that is subject to taxation under this chapter and tangible
             2374      personal property, a product, or service that is not subject to taxation under this chapter, the
             2375      entire bundled transaction is subject to taxation under this chapter unless:
             2376          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             2377      personal property, product, or service that is not subject to taxation under this chapter from the
             2378      books and records the seller keeps in the seller's regular course of business; or
             2379          (II) state or federal law provides otherwise; or
             2380          (B) if the sales price of a bundled transaction is attributable to two or more items of
             2381      tangible personal property, products, or services that are subject to taxation under this chapter
             2382      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             2383      higher tax rate unless:


             2384          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             2385      personal property, product, or service that is subject to taxation under this chapter at the lower
             2386      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             2387          (II) state or federal law provides otherwise.
             2388          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             2389      seller's regular course of business includes books and records the seller keeps in the regular
             2390      course of business for nontax purposes.
             2391          [(f)] (e) Subject to Subsections (2)[(g)] (f) and [(h)] (g), a tax rate repeal or tax rate
             2392      change for a tax rate imposed under the following shall take effect on the first day of a calendar
             2393      quarter:
             2394          (i) Subsection (2)(a)(i);
             2395          (ii) Subsection (2)(b)(i);
             2396          (iii) Subsection (2)(c)(i); or
             2397          (iv) Subsection (2)(d)(i)(A)[;].
             2398          [(v) Subsection (2)(e)(ii)(A); or]
             2399          [(vi) Subsection (2)(e)(iii)(A).]
             2400          [(g)] (f) (i) [For a transaction described in Subsection (2)(g)(iii), a] A tax rate increase
             2401      shall take effect on the first day of the first billing period that begins after the effective date of
             2402      the tax rate increase if the billing period for the transaction begins before the effective date of a
             2403      tax rate increase imposed under:
             2404          (A) Subsection (2)(a)(i);
             2405          (B) Subsection (2)(b)(i);
             2406          (C) Subsection (2)(c)(i); or
             2407          (D) Subsection (2)(d)(i)(A)[;].
             2408          [(E) Subsection (2)(e)(ii)(A); or]
             2409          [(F) Subsection (2)(e)(iii)(A).]
             2410          (ii) [For a transaction described in Subsection (2)(g)(iii), the] The repeal of a tax or a
             2411      tax rate decrease shall take effect on the first day of the last billing period that began before the
             2412      effective date of the repeal of the tax or the tax rate decrease if the billing period for the
             2413      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             2414      imposed under:


             2415          (A) Subsection (2)(a)(i);
             2416          (B) Subsection (2)(b)(i);
             2417          (C) Subsection (2)(c)(i); or
             2418          (D) Subsection (2)(d)(i)(A)[;].
             2419          [(E) Subsection (2)(e)(ii)(A); or]
             2420          [(F) Subsection (2)(e)(iii)(A).]
             2421          [(iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:]
             2422          [(A) Subsection (1)(b);]
             2423          [(B) Subsection (1)(c);]
             2424          [(C) Subsection (1)(d);]
             2425          [(D) Subsection (1)(e);]
             2426          [(E) Subsection (1)(f);]
             2427          [(F) Subsection (1)(g);]
             2428          [(G) Subsection (1)(h);]
             2429          [(H) Subsection (1)(i);]
             2430          [(I) Subsection (1)(j); or]
             2431          [(J) Subsection (1)(k).]
             2432          [(h)] (g) (i) For a tax rate described in Subsection (2)[(h)] (g)(ii), if a tax due on a
             2433      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
             2434      tax rate repeal or change in a tax rate takes effect:
             2435          (A) on the first day of a calendar quarter; and
             2436          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             2437          (ii) Subsection (2)[(h)] (g)(i) applies to the tax rates described in the following:
             2438          (A) Subsection (2)(a)(i);
             2439          (B) Subsection (2)(b)(i);
             2440          (C) Subsection (2)(c)(i); or
             2441          (D) Subsection (2)(d)(i)(A)[;].
             2442          [(E) Subsection (2)(e)(ii)(A); or]
             2443          [(F) Subsection (2)(e)(iii)(A).]
             2444          (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2445      the commission may by rule define the term "catalogue sale."


             2446          (3) (a) Except as provided in Subsections (4) through [(10)] (9), the following state
             2447      taxes shall be deposited into the General Fund:
             2448          (i) the tax imposed by Subsection (2)(a)(i);
             2449          (ii) the tax imposed by Subsection (2)(b)(i);
             2450          (iii) the tax imposed by Subsection (2)(c)(i); or
             2451          (iv) the tax imposed by Subsection (2)(d)(i)(A)[;].
             2452          [(v) the tax imposed by Subsection (2)(e)(ii)(A); and]
             2453          [(vi) the tax imposed by Subsection (2)(e)(iii)(A).]
             2454          (b) The following local taxes shall be distributed to a county, city, or town as provided
             2455      in this chapter:
             2456          (i) the tax imposed by Subsection (2)(a)(ii);
             2457          (ii) the tax imposed by Subsection (2)(b)(ii);
             2458          (iii) the tax imposed by Subsection (2)(c)(ii); and
             2459          (iv) the tax imposed by Subsection [(2)(e)(ii)(B)] (2)(d)(i)(B).
             2460          [(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
             2461      state shall receive the county's, city's, or town's proportionate share of the revenues generated
             2462      by the following local taxes as provided in Subsection (3)(c)(ii):]
             2463          [(A) the local tax described in Subsection (2)(d)(ii); and]
             2464          [(B) the local tax described in Subsection (2)(e)(iii)(B).]
             2465          [(ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
             2466      shall determine a county's, city's, or town's proportionate share of the revenues by:]
             2467          [(A) calculating an amount equal to the population of the unincorporated area of the
             2468      county, city, or town divided by the total population of the state; and]
             2469          [(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
             2470      amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
             2471      cities, and towns.]
             2472          [(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
             2473      purposes of this section shall be derived from the most recent official census or census estimate
             2474      of the United States Census Bureau.]
             2475          [(B) If a needed population estimate is not available from the United States Census
             2476      Bureau, population figures shall be derived from the estimate from the Utah Population


             2477      Estimates Committee created by executive order of the governor.]
             2478          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2479      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             2480      through (g):
             2481          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             2482          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             2483          (B) for the fiscal year; or
             2484          (ii) $17,500,000.
             2485          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             2486      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             2487      Department of Natural Resources to:
             2488          (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
             2489      protect sensitive plant and animal species; or
             2490          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             2491      act, to political subdivisions of the state to implement the measures described in Subsections
             2492      63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
             2493          (ii) Money transferred to the Department of Natural Resources under Subsection
             2494      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             2495      person to list or attempt to have listed a species as threatened or endangered under the
             2496      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             2497          (iii) At the end of each fiscal year:
             2498          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             2499      Conservation and Development Fund created in Section 73-10-24 ;
             2500          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             2501      Program Subaccount created in Section 73-10c-5 ; and
             2502          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             2503      Program Subaccount created in Section 73-10c-5 .
             2504          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             2505      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             2506      created in Section 4-18-6 .
             2507          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described


             2508      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             2509      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             2510      water rights.
             2511          (ii) At the end of each fiscal year:
             2512          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             2513      Conservation and Development Fund created in Section 73-10-24 ;
             2514          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             2515      Program Subaccount created in Section 73-10c-5 ; and
             2516          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             2517      Program Subaccount created in Section 73-10c-5 .
             2518          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             2519      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             2520      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             2521          (ii) In addition to the uses allowed of the Water Resources Conservation and
             2522      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             2523      Development Fund may also be used to:
             2524          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             2525      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             2526      quantifying surface and ground water resources and describing the hydrologic systems of an
             2527      area in sufficient detail so as to enable local and state resource managers to plan for and
             2528      accommodate growth in water use without jeopardizing the resource;
             2529          (B) fund state required dam safety improvements; and
             2530          (C) protect the state's interest in interstate water compact allocations, including the
             2531      hiring of technical and legal staff.
             2532          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             2533      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             2534      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             2535          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             2536      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             2537      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             2538          (i) provide for the installation and repair of collection, treatment, storage, and


             2539      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             2540          (ii) develop underground sources of water, including springs and wells; and
             2541          (iii) develop surface water sources.
             2542          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2543      2006, the difference between the following amounts shall be expended as provided in this
             2544      Subsection (5), if that difference is greater than $1:
             2545          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             2546      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             2547          (ii) $17,500,000.
             2548          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             2549          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             2550      credits; and
             2551          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             2552      restoration.
             2553          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             2554      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             2555      created in Section 73-10-24 .
             2556          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             2557      remaining difference described in Subsection (5)(a) shall be:
             2558          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             2559      credits; and
             2560          (B) expended by the Division of Water Resources for cloud-seeding projects
             2561      authorized by Title 73, Chapter 15, Modification of Weather.
             2562          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             2563      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             2564      created in Section 73-10-24 .
             2565          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             2566      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             2567      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             2568      Division of Water Resources for:
             2569          (i) preconstruction costs:


             2570          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             2571      26, Bear River Development Act; and
             2572          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             2573      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             2574          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             2575      Chapter 26, Bear River Development Act;
             2576          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             2577      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             2578          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             2579      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             2580          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             2581      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             2582          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             2583      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             2584      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             2585      incurred for employing additional technical staff for the administration of water rights.
             2586          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             2587      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             2588      Fund created in Section 73-10-24 .
             2589          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2590      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             2591      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             2592      the Transportation Fund created by Section 72-2-102 .
             2593          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             2594      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             2595      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             2596      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             2597      transactions under Subsection (1).
             2598          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             2599      have been paid off and the highway projects completed that are intended to be paid from
             2600      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the


             2601      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             2602      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             2603      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             2604      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             2605          [(8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
             2606      year 2004-05, the commission shall each year on or before the September 30 immediately
             2607      following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
             2608      into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is
             2609      greater than $0.]
             2610          [(b) The difference described in Subsection (8)(a) is equal to the difference between:]
             2611          [(i) the total amount of the revenues the commission received from sellers collecting
             2612      the taxes described in Subsections (2)(d)(i) and (2)(e)(iii)(A) for the fiscal year immediately
             2613      preceding the September 30 described in Subsection (8)(a); and]
             2614          [(ii) $7,279,673.]
             2615          [(9)] (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             2616      Subsection (7)(a), and until Subsection [(9)] (8)(b) applies, for a fiscal year beginning on or
             2617      after July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
             2618      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             2619      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             2620      portion of the approximately 17% of sales and use tax revenues generated annually by the sales
             2621      and use tax on vehicles and vehicle-related products:
             2622          (i) the tax imposed by Subsection (2)(a)(i);
             2623          (ii) the tax imposed by Subsection (2)(b)(i);
             2624          (iii) the tax imposed by Subsection (2)(c)(i); and
             2625          (iv) the tax imposed by Subsection [(2)(e)(ii)(A)] (2)(d)(i)(A).
             2626          (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             2627      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             2628      highway projects completed that are intended to be paid from revenues deposited in the
             2629      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             2630      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             2631      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes


             2632      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             2633      which represents a portion of the approximately 17% of sales and use tax revenues generated
             2634      annually by the sales and use tax on vehicles and vehicle-related products:
             2635          (i) the tax imposed by Subsection (2)(a)(i);
             2636          (ii) the tax imposed by Subsection (2)(b)(i);
             2637          (iii) the tax imposed by Subsection (2)(c)(i); and
             2638          (iv) the tax imposed by Subsection [(2)(e)(ii)(A)] (2)(d)(i)(A).
             2639          [(10)] (9) (a) Notwithstanding Subsection (3)(a) and until Subsection [(10)] (9)(b)
             2640      applies, the Division of Finance shall annually deposit $90,000,000 of the revenues generated
             2641      by the taxes listed under Subsection (3)(a) into the Critical Highway Needs Fund created by
             2642      Section 72-2-125 .
             2643          (b) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             2644      Subsections (7) and [(9)] (8), when the general obligation bonds authorized by Section
             2645      63B-16-101 have been paid off and the highway projects completed that are included in the
             2646      prioritized project list under Subsection 72-2-125 (4) as determined in accordance with
             2647      Subsection 72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the
             2648      revenues generated by the taxes listed under Subsection (3)(a) into the Transportation
             2649      Investment Fund of 2005 created by Section 72-2-124 .
             2650          Section 11. Section 59-12-104 is amended to read:
             2651           59-12-104. Exemptions.
             2652          The following sales and uses are exempt from the taxes imposed by this chapter:
             2653          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             2654      under Chapter 13, Motor and Special Fuel Tax Act;
             2655          (2) sales to the state, its institutions, and its political subdivisions; however, this
             2656      exemption does not apply to sales of:
             2657          (a) construction materials except:
             2658          (i) construction materials purchased by or on behalf of institutions of the public
             2659      education system as defined in Utah Constitution Article X, Section 2, provided the
             2660      construction materials are clearly identified and segregated and installed or converted to real
             2661      property which is owned by institutions of the public education system; and
             2662          (ii) construction materials purchased by the state, its institutions, or its political


             2663      subdivisions which are installed or converted to real property by employees of the state, its
             2664      institutions, or its political subdivisions; or
             2665          (b) tangible personal property in connection with the construction, operation,
             2666      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             2667      providing additional project capacity, as defined in Section 11-13-103 ;
             2668          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             2669          (i) the proceeds of each sale do not exceed $1; and
             2670          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             2671      the cost of the item described in Subsection (3)(b) as goods consumed; and
             2672          (b) Subsection (3)(a) applies to:
             2673          (i) food and food ingredients; or
             2674          (ii) prepared food;
             2675          (4) sales of the following to a commercial airline carrier for in-flight consumption:
             2676          (a) food and food ingredients;
             2677          (b) prepared food; or
             2678          (c) services related to Subsection (4)(a) or (b);
             2679          (5) sales of parts and equipment for installation in aircraft operated by common carriers
             2680      in interstate or foreign commerce;
             2681          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             2682      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             2683      exhibitor, distributor, or commercial television or radio broadcaster;
             2684          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             2685      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             2686      washing of tangible personal property;
             2687          (b) if a seller that sells at the same business location assisted cleaning or washing of
             2688      tangible personal property and cleaning or washing of tangible personal property that is not
             2689      assisted cleaning or washing of tangible personal property, the exemption described in
             2690      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             2691      or washing of the tangible personal property; and
             2692          (c) for purposes of Subsection (7)(b) and in accordance with Title 63, Chapter 46a,
             2693      Utah Administrative Rulemaking Act, the commission may make rules:


             2694          (i) governing the circumstances under which sales are at the same business location;
             2695      and
             2696          (ii) establishing the procedures and requirements for a seller to separately account for
             2697      sales of assisted cleaning or washing of tangible personal property;
             2698          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             2699      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             2700      fulfilled;
             2701          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             2702      this state if the vehicle is:
             2703          (a) not registered in this state; and
             2704          (b) (i) not used in this state; or
             2705          (ii) used in this state:
             2706          (A) if the vehicle is not used to conduct business, for a time period that does not
             2707      exceed the longer of:
             2708          (I) 30 days in any calendar year; or
             2709          (II) the time period necessary to transport the vehicle to the borders of this state; or
             2710          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             2711      the vehicle to the borders of this state;
             2712          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             2713          (i) the item is intended for human use; and
             2714          (ii) (A) a prescription was issued for the item; or
             2715          (B) the item was purchased by a hospital or other medical facility; and
             2716          (b) (i) Subsection (10)(a) applies to:
             2717          (A) a drug;
             2718          (B) a syringe; or
             2719          (C) a stoma supply; and
             2720          (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2721      commission may by rule define the terms:
             2722          (A) "syringe"; or
             2723          (B) "stoma supply";
             2724          (11) sales or use of property, materials, or services used in the construction of or


             2725      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             2726          (12) (a) sales of an item described in Subsection (12)(c) served by:
             2727          (i) the following if the item described in Subsection (12)(c) is not available to the
             2728      general public:
             2729          (A) a church; or
             2730          (B) a charitable institution;
             2731          (ii) an institution of higher education if:
             2732          (A) the item described in Subsection (12)(c) is not available to the general public; or
             2733          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             2734      offered by the institution of higher education; or
             2735          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             2736          (i) a medical facility; or
             2737          (ii) a nursing facility; and
             2738          (c) Subsections (12)(a) and (b) apply to:
             2739          (i) food and food ingredients;
             2740          (ii) prepared food; or
             2741          (iii) alcoholic beverages;
             2742          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             2743      or a product transferred electronically by a person:
             2744          (i) regardless of the number of transactions involving the sale of that tangible personal
             2745      property or product transferred electronically by that person; and
             2746          (ii) not regularly engaged in the business of selling that type of tangible personal
             2747      property or product transferred electronically;
             2748          (b) this Subsection (13) does not apply if:
             2749          (i) the sale is one of a series of sales of a character to indicate that the person is
             2750      regularly engaged in the business of selling that type of tangible personal property or product
             2751      transferred electronically;
             2752          (ii) the person holds that person out as regularly engaged in the business of selling that
             2753      type of tangible personal property or product transferred electronically;
             2754          (iii) the person sells an item of tangible personal property or product transferred
             2755      electronically that the person purchased as a sale that is exempt under Subsection (25); or


             2756          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             2757      this state in which case the tax is based upon:
             2758          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             2759      sold; or
             2760          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             2761      value of the vehicle or vessel being sold at the time of the sale as determined by the
             2762      commission; and
             2763          (c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2764      commission shall make rules establishing the circumstances under which:
             2765          (i) a person is regularly engaged in the business of selling a type of tangible personal
             2766      property or product transferred electronically;
             2767          (ii) a sale of tangible personal property or a product transferred electronically is one of
             2768      a series of sales of a character to indicate that a person is regularly engaged in the business of
             2769      selling that type of tangible personal property or product transferred electronically; or
             2770          (iii) a person holds that person out as regularly engaged in the business of selling a type
             2771      of tangible personal property or product transferred electronically;
             2772          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             2773      July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
             2774      facility, for the following:
             2775          (i) machinery and equipment that:
             2776          (A) is used:
             2777          (I) for a manufacturing facility other than a manufacturing facility that is a scrap
             2778      recycler described in Subsection 59-12-102 [(48)] (52)(b):
             2779          (Aa) in the manufacturing process; and
             2780          (Bb) to manufacture an item sold as tangible personal property; or
             2781          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             2782      59-12-102 [(48)] (52)(b), to process an item sold as tangible personal property; and
             2783          (B) has an economic life of three or more years; and
             2784          (ii) normal operating repair or replacement parts that:
             2785          (A) have an economic life of three or more years; and
             2786          (B) are used:


             2787          (I) for a manufacturing facility in the state other than a manufacturing facility that is a
             2788      scrap recycler described in Subsection 59-12-102 [(48)] (52)(b), in the manufacturing process;
             2789      or
             2790          (II) for a manufacturing facility in the state that is a scrap recycler described in
             2791      Subsection 59-12-102 [(48)] (52)(b), to process an item sold as tangible personal property;
             2792          (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             2793      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             2794      for the following:
             2795          (A) machinery and equipment that:
             2796          (I) is used:
             2797          (Aa) in the manufacturing process; and
             2798          (Bb) to manufacture an item sold as tangible personal property; and
             2799          (II) has an economic life of three or more years; and
             2800          (B) normal operating repair or replacement parts that:
             2801          (I) are used in the manufacturing process in a manufacturing facility in the state; and
             2802          (II) have an economic life of three or more years; and
             2803          (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
             2804      2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
             2805      claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
             2806          (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
             2807      and
             2808          (B) in accordance with Section 59-12-110 ;
             2809          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             2810      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             2811      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             2812      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             2813      of the 2002 North American Industry Classification System of the federal Executive Office of
             2814      the President, Office of Management and Budget:
             2815          (i) machinery and equipment that:
             2816          (A) are used in:
             2817          (I) the production process, other than the production of real property; or


             2818          (II) research and development; and
             2819          (B) have an economic life of three or more years; and
             2820          (ii) normal operating repair or replacement parts that:
             2821          (A) have an economic life of three or more years; and
             2822          (B) are used in:
             2823          (I) the production process, other than the production of real property, in an
             2824      establishment described in this Subsection (14)(c) in the state; or
             2825          (II) research and development in an establishment described in this Subsection (14)(c)
             2826      in the state;
             2827          (d) for purposes of this Subsection (14) and in accordance with Title 63, Chapter 46a,
             2828      Utah Administrative Rulemaking Act, the commission:
             2829          (i) shall by rule define the term "establishment"; and
             2830          (ii) may by rule define what constitutes:
             2831          (A) processing an item sold as tangible personal property;
             2832          (B) the production process, other than the production of real property; or
             2833          (C) research and development; and
             2834          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             2835      commission shall:
             2836          (i) review the exemptions described in this Subsection (14) and make
             2837      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             2838      exemptions should be continued, modified, or repealed; and
             2839          (ii) include in its report:
             2840          (A) the cost of the exemptions;
             2841          (B) the purpose and effectiveness of the exemptions; and
             2842          (C) the benefits of the exemptions to the state;
             2843          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             2844          (i) tooling;
             2845          (ii) special tooling;
             2846          (iii) support equipment;
             2847          (iv) special test equipment; or
             2848          (v) parts used in the repairs or renovations of tooling or equipment described in


             2849      Subsections (15)(a)(i) through (iv); and
             2850          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             2851          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             2852      performance of any aerospace or electronics industry contract with the United States
             2853      government or any subcontract under that contract; and
             2854          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             2855      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             2856      by:
             2857          (A) a government identification tag placed on the tooling, equipment, or parts; or
             2858          (B) listing on a government-approved property record if placing a government
             2859      identification tag on the tooling, equipment, or parts is impractical;
             2860          (16) sales of newspapers or newspaper subscriptions;
             2861          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             2862      product transferred electronically traded in as full or part payment of the purchase price, except
             2863      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             2864      trade-ins are limited to other vehicles only, and the tax is based upon:
             2865          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             2866      vehicle being traded in; or
             2867          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             2868      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             2869      commission; and
             2870          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             2871      following items of tangible personal property or products transferred electronically traded in as
             2872      full or part payment of the purchase price:
             2873          (i) money;
             2874          (ii) electricity;
             2875          (iii) water;
             2876          (iv) gas; or
             2877          (v) steam;
             2878          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             2879      or a product transferred electronically used or consumed primarily and directly in farming


             2880      operations, regardless of whether the tangible personal property or product transferred
             2881      electronically:
             2882          (A) becomes part of real estate; or
             2883          (B) is installed by a:
             2884          (I) farmer;
             2885          (II) contractor; or
             2886          (III) subcontractor; or
             2887          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             2888      product transferred electronically if the tangible personal property or product transferred
             2889      electronically is exempt under Subsection (18)(a)(i); and
             2890          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
             2891      tangible personal property or products transferred electronically are subject to the taxes
             2892      imposed by this chapter:
             2893          (i) (A) subject to Subsection (18)(b)(i)(B), the following tangible personal property if
             2894      the tangible personal property is used in a manner that is incidental to farming:
             2895          (I) machinery;
             2896          (II) equipment;
             2897          (III) materials; or
             2898          (IV) supplies; and
             2899          (B) tangible personal property that is considered to be used in a manner that is
             2900      incidental to farming includes:
             2901          (I) hand tools; or
             2902          (II) maintenance and janitorial equipment and supplies;
             2903          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             2904      transferred electronically if the tangible personal property or product transferred electronically
             2905      is used in an activity other than farming; and
             2906          (B) tangible personal property or a product transferred electronically that is considered
             2907      to be used in an activity other than farming includes:
             2908          (I) office equipment and supplies; or
             2909          (II) equipment and supplies used in:
             2910          (Aa) the sale or distribution of farm products;


             2911          (Bb) research; or
             2912          (Cc) transportation; or
             2913          (iii) a vehicle required to be registered by the laws of this state during the period
             2914      ending two years after the date of the vehicle's purchase;
             2915          (19) sales of hay;
             2916          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             2917      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             2918      garden, farm, or other agricultural produce is sold by:
             2919          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             2920      agricultural produce;
             2921          (b) an employee of the producer described in Subsection (20)(a); or
             2922          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             2923          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             2924      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             2925          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             2926      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             2927      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             2928      manufacturer, processor, wholesaler, or retailer;
             2929          (23) [property] a product stored in the state for resale;
             2930          (24) (a) purchases of [property] a product if:
             2931          (i) the [property] product is:
             2932          (A) purchased outside of this state;
             2933          (B) brought into this state:
             2934          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             2935          (II) by a nonresident person who is not living or working in this state at the time of the
             2936      purchase;
             2937          (C) used for the personal use or enjoyment of the nonresident person described in
             2938      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             2939          (D) not used in conducting business in this state; and
             2940          (ii) for:
             2941          (A) [property] a product other than [the property] a boat described in Subsection


             2942      (24)(a)(ii)(B), the first use of the [property] product for a purpose for which the [property]
             2943      product is designed occurs outside of this state;
             2944          (B) a boat, the boat is registered outside of this state; or
             2945          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2946      outside of this state;
             2947          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             2948          (i) a lease or rental of [property] a product; or
             2949          (ii) a sale of a vehicle exempt under Subsection (33); and
             2950          (c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
             2951      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             2952      following:
             2953          (i) conducting business in this state if that phrase has the same meaning in this
             2954      Subsection (24) as in Subsection (66);
             2955          (ii) the first use of [property] a product if that phrase has the same meaning in this
             2956      Subsection (24) as in Subsection (66); or
             2957          (iii) a purpose for which [property] a product is designed if that phrase has the same
             2958      meaning in this Subsection (24) as in Subsection (66);
             2959          (25) [property] a product purchased for resale in this state, in the regular course of
             2960      business, either in its original form or as an ingredient or component part of a manufactured or
             2961      compounded product;
             2962          (26) [property] a product upon which a sales or use tax was paid to some other state, or
             2963      one of its subdivisions, except that the state shall be paid any difference between the tax paid
             2964      and the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is
             2965      allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and
             2966      Use Tax Act;
             2967          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             2968      person for use in compounding a service taxable under the subsections;
             2969          (28) purchases made in accordance with the special supplemental nutrition program for
             2970      women, infants, and children established in 42 U.S.C. Sec. 1786;
             2971          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             2972      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens


             2973      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             2974      Manual of the federal Executive Office of the President, Office of Management and Budget;
             2975          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             2976      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             2977          (a) not registered in this state; and
             2978          (b) (i) not used in this state; or
             2979          (ii) used in this state:
             2980          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             2981      time period that does not exceed the longer of:
             2982          (I) 30 days in any calendar year; or
             2983          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             2984      the borders of this state; or
             2985          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             2986      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             2987      state;
             2988          (31) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
             2989      where a sales or use tax is not imposed, even if the title is passed in Utah;
             2990          (32) amounts paid for the purchase of [telephone] telecommunications service for
             2991      purposes of providing [telephone] telecommunications service;
             2992          (33) sales, leases, or uses of the following:
             2993          (a) a vehicle by an authorized carrier; or
             2994          (b) tangible personal property that is installed on a vehicle:
             2995          (i) sold or leased to or used by an authorized carrier; and
             2996          (ii) before the vehicle is placed in service for the first time;
             2997          (34) (a) 45% of the sales price of any new manufactured home; and
             2998          (b) 100% of the sales price of any used manufactured home;
             2999          (35) sales relating to schools and fundraising sales;
             3000          (36) sales or rentals of durable medical equipment if:
             3001          (a) a person presents a prescription for the durable medical equipment; and
             3002          (b) the durable medical equipment is used for home use only;
             3003          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in


             3004      Section 72-11-102 ; and
             3005          (b) the commission shall by rule determine the method for calculating sales exempt
             3006      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             3007          (38) sales to a ski resort of:
             3008          (a) snowmaking equipment;
             3009          (b) ski slope grooming equipment;
             3010          (c) passenger ropeways as defined in Section 72-11-102 ; or
             3011          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             3012      described in Subsections (38)(a) through (c);
             3013          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             3014          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             3015      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             3016      59-12-102 ;
             3017          (b) if a seller that sells or rents at the same business location the right to use or operate
             3018      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             3019      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             3020      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             3021      amusement, entertainment, or recreation for the assisted amusement devices; and
             3022          (c) for purposes of Subsection (40)(b) and in accordance with Title 63, Chapter 46a,
             3023      Utah Administrative Rulemaking Act, the commission may make rules:
             3024          (i) governing the circumstances under which sales are at the same business location;
             3025      and
             3026          (ii) establishing the procedures and requirements for a seller to separately account for
             3027      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             3028      assisted amusement devices;
             3029          (41) (a) sales of photocopies by:
             3030          (i) a governmental entity; or
             3031          (ii) an entity within the state system of public education, including:
             3032          (A) a school; or
             3033          (B) the State Board of Education; or
             3034          (b) sales of publications by a governmental entity;


             3035          (42) amounts paid for admission to an athletic event at an institution of higher
             3036      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             3037      20 U.S.C. Sec. 1681 et seq.;
             3038          (43) sales of [telephone] telecommunications service charged to a prepaid telephone
             3039      calling card;
             3040          [(44) (a) sales of:]
             3041          [(i) hearing aids;]
             3042          [(ii) hearing aid accessories; or]
             3043          [(iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations
             3044      of hearing aids or hearing aid accessories; and]
             3045          [(b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii),
             3046      "parts" does not include batteries;]
             3047          [(45)] (44) (a) sales made to or by:
             3048          (i) an area agency on aging; or
             3049          (ii) a senior citizen center owned by a county, city, or town; or
             3050          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             3051          [(46)] (45) sales or leases of semiconductor fabricating, processing, research, or
             3052      development materials regardless of whether the semiconductor fabricating, processing,
             3053      research, or development materials:
             3054          (a) actually come into contact with a semiconductor; or
             3055          (b) ultimately become incorporated into real property;
             3056          [(47)] (46) an amount paid by or charged to a purchaser for accommodations and
             3057      services described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under
             3058      Section 59-12-104.2 ;
             3059          [(48)] (47) beginning on September 1, 2001, the lease or use of a vehicle issued a
             3060      temporary sports event registration certificate in accordance with Section 41-3-306 for the
             3061      event period specified on the temporary sports event registration certificate;
             3062          [(49)] (48) sales or uses of electricity, if the sales or uses are:
             3063          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             3064      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             3065      source, as designated in the tariff by the Public Service Commission of Utah; and


             3066          (b) for an amount of electricity that is:
             3067  &nbs