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[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 245 Enrolled

             1     

FUNDING RELATING TO AIRPORTS, HIGHWAYS,

             2     
AND PUBLIC TRANSIT

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Curtis S. Bramble

             6     
House Sponsor: David Clark

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Motor Vehicles Code, the Sales and Use Tax Act, and the
             11      Transportation Code relating to the local option highway construction and
             12      transportation corridor preservation fee, a local sales and use tax to fund tourism,
             13      recreation, cultural, convention, and airport facilities, a local sales and use tax to fund
             14      certain airport, highway, or public transit projects or services, a state sales and use tax,
             15      and financing of certain fixed guideways with certain airport revenue.
             16      Highlighted Provisions:
             17          This bill:
             18          .    addresses an audit relating to the local sales and use tax to fund tourism, recreation,
             19      cultural, convention, and airport facilities;
             20          .    reallocates a portion of the revenue received from the local option highway
             21      construction and transportation corridor preservation fee imposed in a county of the
             22      first class from the County of the First Class State Highway Projects Fund to the
             23      legislative body of a city of the first class located within a county of the first class
             24      that has an international airport with a United States customs office within its
             25      boundaries;
             26          .    addresses amounts a seller may retain as a seller discount;
             27          .    repeals a purpose statement;
             28          .    provides part titles;
             29          .    defines terms;


             30          .    provides that a county legislative body may expend certain local sales and use tax
             31      revenues for an airport facility in addition to other purposes allowed by statute;
             32          .    addresses provisions relating to ordinances and bonding for purposes of the local
             33      sales and use tax to fund tourism, recreation, cultural, convention, and airport
             34      facilities;
             35          .    authorizes a county of the second class to impose a local option sales and use tax to
             36      fund certain airport, highway, or public transit projects or services;
             37          .    addresses the procedures and requirements for imposing the local option sales and
             38      use tax to fund certain airport, highway, or public transit projects or services,
             39      including providing that the sales and use tax is an agreement sales and use tax;
             40          .    imposes a state sales and use tax under certain circumstances;
             41          .    addresses the procedures and requirements for imposing the state sales and use tax,
             42      including providing that:
             43              .    the sales and use tax is an agreement sales and use tax; and
             44              .    the revenues are distributed to certain public transit districts;
             45          .    modifies the sources of funding for the Local Transportation Corridor Preservation
             46      Fund;
             47          .    creates a special revenue fund known as the County of the Second Class State
             48      Highway Projects Fund, including:
             49              .    addressing funding of the fund; and
             50              .    addressing the purposes for which fund monies may be expended;
             51          .    provides that an airport operator may not use airport revenue to contribute to
             52      constructing, equipping, maintaining, or operating a fixed guideway; and
             53          .    makes technical changes.
             54      Monies Appropriated in this Bill:
             55          None
             56      Other Special Clauses:
             57          This bill provides effective dates.


             58          This bill coordinates with H.B. 206, Tax Amendments, to make substantive and
             59      technical amendments, including enacting Sections 59-12-1904, 59-12-1905,
             60      59-12-1906, 59-12-2005, 59-12-2006, and 59-12-2007.
             61      Utah Code Sections Affected:
             62      AMENDS:
             63          11-41-102, as last amended by Laws of Utah 2007, Chapter 9
             64          17-31-5.5, as last amended by Laws of Utah 2007, Chapter 3
             65          41-1a-1222, as last amended by Laws of Utah 2007, Chapters 201 and 274
             66          59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
             67          59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
             68          59-12-104.2, as last amended by Laws of Utah 2003, Chapter 312
             69          59-12-108, as last amended by Laws of Utah 2007, Chapter 9
             70          59-12-602, as last amended by Laws of Utah 1995, Chapter 248
             71          59-12-603, as last amended by Laws of Utah 2007, Chapters 3, 9, and 219
             72          72-2-117.5, as last amended by Laws of Utah 2007, Chapters 181 and 201
             73          72-2-121, as last amended by Laws of Utah 2007, Chapter 201
             74          72-10-102, as last amended by Laws of Utah 2003, Chapter 183
             75      ENACTS:
             76          59-12-601.1, Utah Code Annotated 1953
             77          59-12-1901, Utah Code Annotated 1953
             78          59-12-1902, Utah Code Annotated 1953
             79          59-12-1903, Utah Code Annotated 1953
             80          59-12-2001, Utah Code Annotated 1953
             81          59-12-2002, Utah Code Annotated 1953
             82          59-12-2003, Utah Code Annotated 1953
             83          59-12-2004, Utah Code Annotated 1953
             84          72-2-121.2, Utah Code Annotated 1953
             85          72-10-215, Utah Code Annotated 1953


             86      REPEALS:
             87          59-12-601, as last amended by Laws of Utah 1991, Chapter 265
             88     
             89      Be it enacted by the Legislature of the state of Utah:
             90          Section 1. Section 11-41-102 is amended to read:
             91           11-41-102. Definitions.
             92          As used in this chapter:
             93          (1) "Agreement" means an oral or written agreement between a:
             94          (a) (i) county; or
             95          (ii) municipality; and
             96          (b) person.
             97          (2) "Municipality" means a:
             98          (a) city; or
             99          (b) town.
             100          (3) "Payment" includes:
             101          (a) a payment;
             102          (b) a rebate;
             103          (c) a refund; or
             104          (d) an amount similar to Subsections (3)(a) through (c).
             105          (4) "Regional retail business" means a:
             106          (a) retail business that occupies a floor area of more than 80,000 square feet;
             107          (b) dealer as defined in Section 41-1a-102 ;
             108          (c) retail shopping facility that has at least two anchor tenants if the total number of
             109      anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
             110      feet; or
             111          (d) grocery store that occupies a floor area of more than 30,000 square feet.
             112          (5) (a) "Sales and use tax" means a tax:
             113          (i) imposed on transactions within a:


             114          (A) county; or
             115          (B) municipality; and
             116          (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
             117      Sales and Use Tax Act.
             118          (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
             119      authorized under:
             120          (i) Subsection 59-12-103 (2)(a)(i);
             121          (ii) Subsection 59-12-103 (2)(b)(i);
             122          (iii) Subsection 59-12-103 (2)(c)(i);
             123          (iv) Subsection 59-12-103 (2)(d)(i)(A);
             124          (v) Subsection 59-12-103 (2)(e)(ii)(A);
             125          (vi) Subsection 59-12-103 (2)(e)(iii)(A);
             126          (vii) Section 59-12-301 ;
             127          (viii) Section 59-12-352 ;
             128          (ix) Section 59-12-353 ;
             129          (x) Section 59-12-603 ; or
             130          (xi) Section 59-12-1201 .
             131          (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
             132          (i) to a person;
             133          (ii) by a:
             134          (A) county; or
             135          (B) municipality;
             136          (iii) to induce the person to locate or relocate a regional retail business within the:
             137          (A) county; or
             138          (B) municipality; and
             139          (iv) that are derived from a sales and use tax.
             140          (b) "Sales and use tax incentive payment" does not include funding for public
             141      infrastructure.


             142          Section 2. Section 17-31-5.5 is amended to read:
             143           17-31-5.5. Independent audit -- Report to county legislative body -- Content.
             144          (1) The legislative body of each county imposing the transient room tax provided for in
             145      Section 59-12-301 shall annually engage an independent auditor to perform an audit to verify
             146      that transient room tax funds are used only as authorized by this chapter and to report the
             147      findings of the audit to the county legislative body.
             148          (2) Subsection (1) applies to the tourism, recreation, cultural, [and] convention, and
             149      airport facilities tax provided for in Section 59-12-603 , except that the audit verification
             150      required under this Subsection (2) shall be for the uses authorized under Section 59-12-603 .
             151          (3) The report required under Subsection (1) shall include a breakdown of expenditures
             152      into the following categories:
             153          (a) for the transient room tax, identification of expenditures for:
             154          (i) establishing and promoting:
             155          (A) recreation;
             156          (B) tourism;
             157          (C) film production; and
             158          (D) conventions;
             159          (ii) acquiring, leasing, constructing, furnishing, or operating:
             160          (A) convention meeting rooms;
             161          (B) exhibit halls;
             162          (C) visitor information centers;
             163          (D) museums; and
             164          (E) related facilities;
             165          (iii) acquiring or leasing land required for or related to the purposes listed in Subsection
             166      (3)(a)(ii);
             167          (iv) mitigation costs as identified in Subsection 17-31-2 (1)(d); and
             168          (v) making the annual payment of principal, interest, premiums, and necessary reserves
             169      for any or the aggregate of bonds issued to pay for costs referred to in Subsections


             170      17-31-2 (2)(c) and (3)(a); and
             171          (b) for the tourism, recreation, cultural, [and] convention, and airport facilities tax,
             172      identification of expenditures for:
             173          (i) financing tourism promotion, which means an activity to develop, encourage, solicit,
             174      or market tourism that attracts transient guests to the county, including planning, product
             175      development, and advertising;
             176          (ii) the development, operation, and maintenance of the following facilities as defined in
             177      Section 59-12-602 :
             178          (A) [tourist facilities] an airport facility;
             179          (B) [recreation facilities] a convention facility;
             180          (C) a cultural [facilities; and] facility;
             181          (D) [convention facilities] a recreation facility; and
             182          (E) a tourist facility; and
             183          (iii) a pledge as security for evidences of indebtedness under Subsection 59-12-603 (3).
             184          (4) A county legislative body shall provide a copy of a report it receives under this
             185      section to:
             186          (a) the Governor's Office of Economic Development;
             187          (b) its tourism tax advisory board; and
             188          (c) the Office of the Legislative Fiscal Analyst.
             189          Section 3. Section 41-1a-1222 is amended to read:
             190           41-1a-1222. Local option highway construction and transportation corridor
             191      preservation fee -- Exemptions -- Deposit -- Transfer -- County ordinance -- Notice.
             192          (1) (a) (i) A county legislative body may impose a local option highway construction
             193      and transportation corridor preservation fee of up to $10 on each motor vehicle registration
             194      within the county.
             195          (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
             196          (b) If imposed under Subsection (1)(a), at the time application is made for registration
             197      or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local


             198      option highway construction and transportation corridor preservation fee established by the
             199      county legislative body.
             200          (c) The following are exempt from the fee required under Subsection (1)(a):
             201          (i) a motor vehicle that is exempt from the registration fee under Section 41-1a-1209 or
             202      Subsection 41-1a-419 (3);
             203          (ii) a commercial vehicle with an apportioned registration under Section 41-1a-301 ; and
             204          (iii) a motor vehicle with a Purple Heart special group license plate issued in accordance
             205      with Section 41-1a-421 .
             206          (2) (a) Except as provided in Subsection (2)(b), the revenue generated under this
             207      section shall be:
             208          (i) deposited in the Local Transportation Corridor Preservation Fund created in Section
             209      72-2-117.5 ;
             210          (ii) credited to the county from which it is generated; and
             211          (iii) used and distributed in accordance with Section 72-2-117.5 .
             212          (b) [Seventy percent of the] The revenue generated by a fee imposed under this section
             213      in a county of the first class shall be[:] deposited or transferred as follows:
             214          (i) 50% of the revenue shall be:
             215          [(i)] (A) deposited in the County of the First Class State Highway Projects Fund
             216      created in Section 72-2-121 ; and
             217          [(ii)] (B) used in accordance with Section 72-2-121 [.];
             218          (ii) 20% of the revenue shall be:
             219          (A) transferred to the legislative body of a city of the first class:
             220          (I) located in a county of the first class; and
             221          (II) that has:
             222          (Aa) an international airport within its boundaries; and
             223          (Bb) a United States customs office on the premises of the international airport
             224      described in Subsection (2)(b)(ii)(A)(II)(Aa); and
             225          (B) used by the city described in Subsection (2)(b)(ii)(A) for highway construction,


             226      reconstruction, or maintenance projects; and
             227          (iii) 30% of the revenue shall be deposited, credited, and used as provided in Subsection
             228      (2)(a).
             229          (3) To impose or change the amount of a fee under this section, the county legislative
             230      body shall pass an ordinance:
             231          (a) approving the fee;
             232          (b) setting the amount of the fee; and
             233          (c) providing an effective date for the fee as provided in Subsection (4).
             234          (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
             235      the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
             236      meeting the requirements of Subsection (4)(b) from the county prior to April 1.
             237          (b) The notice described in Subsection (4)(a) shall:
             238          (i) state that the county will enact, change, or repeal a fee under this part;
             239          (ii) include a copy of the ordinance imposing the fee; and
             240          (iii) if the county enacts or changes the fee under this section, state the amount of the
             241      fee.
             242          Section 4. Section 59-12-102 is amended to read:
             243           59-12-102. Definitions.
             244          As used in this chapter:
             245          (1) (a) "Admission or user fees" includes season passes.
             246          (b) "Admission or user fees" does not include annual membership dues to private
             247      organizations.
             248          (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
             249      Section 59-12-102.1 .
             250          (3) "Agreement combined tax rate" means the sum of the tax rates:
             251          (a) listed under Subsection (4); and
             252          (b) that are imposed within a local taxing jurisdiction.
             253          (4) "Agreement sales and use tax" means a tax imposed under:


             254          (a) Subsection 59-12-103 (2)(a)(i)(A);
             255          (b) Subsection 59-12-103 (2)(b)(i);
             256          (c) Subsection 59-12-103 (2)(c)(i);
             257          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             258          (e) Subsection 59-12-103 (2)(e)(ii)(A)(I);
             259          (f) Subsection 59-12-103 (2)(e)(iii)(A)(I);
             260          (g) Section 59-12-204 ;
             261          (h) Section 59-12-401 ;
             262          (i) Section 59-12-402 ;
             263          (j) Section 59-12-501 ;
             264          (k) Section 59-12-502 ;
             265          (l) Section 59-12-703 ;
             266          (m) Section 59-12-802 ;
             267          (n) Section 59-12-804 ;
             268          (o) Section 59-12-1001 ;
             269          (p) Section 59-12-1102 ;
             270          (q) Section 59-12-1302 ;
             271          (r) Section 59-12-1402 ;
             272          (s) Section 59-12-1503 ; [or]
             273          (t) Section 59-12-1703 [.];
             274          (u) Section 59-12-1903 ; or
             275          (v) Section 59-12-2003 .
             276          (5) "Aircraft" is as defined in Section 72-10-102 .
             277          (6) "Alcoholic beverage" means a beverage that:
             278          (a) is suitable for human consumption; and
             279          (b) contains .5% or more alcohol by volume.
             280          (7) "Area agency on aging" is as defined in Section 62A-3-101 .
             281          (8) "Assisted amusement device" means an amusement device, skill device, or ride


             282      device that is started and stopped by an individual:
             283          (a) who is not the purchaser or renter of the right to use or operate the amusement
             284      device, skill device, or ride device; and
             285          (b) at the direction of the seller of the right to use the amusement device, skill device, or
             286      ride device.
             287          (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
             288      washing of tangible personal property if the cleaning or washing labor is primarily performed by
             289      an individual:
             290          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             291      property; and
             292          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             293      property.
             294          (10) "Authorized carrier" means:
             295          (a) in the case of vehicles operated over public highways, the holder of credentials
             296      indicating that the vehicle is or will be operated pursuant to both the International Registration
             297      Plan and the International Fuel Tax Agreement;
             298          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             299      certificate or air carrier's operating certificate; or
             300          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             301      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             302          (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
             303      following that is used as the primary source of energy to produce fuel or electricity:
             304          (i) material from a plant or tree; or
             305          (ii) other organic matter that is available on a renewable basis, including:
             306          (A) slash and brush from forests and woodlands;
             307          (B) animal waste;
             308          (C) methane produced:
             309          (I) at landfills; or


             310          (II) as a byproduct of the treatment of wastewater residuals;
             311          (D) aquatic plants; and
             312          (E) agricultural products.
             313          (b) "Biomass energy" does not include:
             314          (i) black liquor;
             315          (ii) treated woods; or
             316          (iii) biomass from municipal solid waste other than methane produced:
             317          (A) at landfills; or
             318          (B) as a byproduct of the treatment of wastewater residuals.
             319          (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             320      property if:
             321          (i) one or more of the items of tangible personal property is food and food ingredients;
             322      and
             323          (ii) the items of tangible personal property are:
             324          (A) distinct and identifiable; and
             325          (B) sold for one price that is not itemized.
             326          (b) "Bundled transaction" does not include the sale of tangible personal property if the
             327      sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
             328      tangible personal property included in the transaction.
             329          (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
             330      and identifiable does not include:
             331          (i) packaging that:
             332          (A) accompanies the sale of the tangible personal property; and
             333          (B) is incidental or immaterial to the sale of the tangible personal property;
             334          (ii) tangible personal property provided free of charge with the purchase of another item
             335      of tangible personal property; or
             336          (iii) an item of tangible personal property included in the definition of "purchase price."
             337          (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is


             338      provided free of charge with the purchase of another item of tangible personal property if the
             339      sales price of the purchased item of tangible personal property does not vary depending on the
             340      inclusion of the tangible personal property provided free of charge.
             341          (13) "Certified automated system" means software certified by the governing board of
             342      the agreement in accordance with Section 59-12-102.1 that:
             343          (a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
             344          (i) on a transaction; and
             345          (ii) in the states that are members of the agreement;
             346          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             347      member of the agreement; and
             348          (c) maintains a record of the transaction described in Subsection (13)(a)(i).
             349          (14) "Certified service provider" means an agent certified:
             350          (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
             351      and
             352          (b) to perform all of a seller's sales and use tax functions for an agreement sales and use
             353      tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
             354      own purchases.
             355          (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
             356      suitable for general use.
             357          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             358      commission shall make rules:
             359          (i) listing the items that constitute "clothing"; and
             360          (ii) that are consistent with the list of items that constitute "clothing" under the
             361      agreement.
             362          (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             363          (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             364      fuels that does not constitute industrial use under Subsection (42) or residential use under
             365      Subsection (80).


             366          (18) (a) "Common carrier" means a person engaged in or transacting the business of
             367      transporting passengers, freight, merchandise, or other property for hire within this state.
             368          (b) (i) "Common carrier" does not include a person who, at the time the person is
             369      traveling to or from that person's place of employment, transports a passenger to or from the
             370      passenger's place of employment.
             371          (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
             372      Utah Administrative Rulemaking Act, the commission may make rules defining what constitutes
             373      a person's place of employment.
             374          (19) "Component part" includes:
             375          (a) poultry, dairy, and other livestock feed, and their components;
             376          (b) baling ties and twine used in the baling of hay and straw;
             377          (c) fuel used for providing temperature control of orchards and commercial
             378      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             379      off-highway type farm machinery; and
             380          (d) feed, seeds, and seedlings.
             381          (20) "Computer" means an electronic device that accepts information:
             382          (a) (i) in digital form; or
             383          (ii) in a form similar to digital form; and
             384          (b) manipulates that information for a result based on a sequence of instructions.
             385          (21) "Computer software" means a set of coded instructions designed to cause:
             386          (a) a computer to perform a task; or
             387          (b) automatic data processing equipment to perform a task.
             388          (22) "Construction materials" means any tangible personal property that will be
             389      converted into real property.
             390          (23) "Delivered electronically" means delivered to a purchaser by means other than
             391      tangible storage media.
             392          (24) (a) "Delivery charge" means a charge:
             393          (i) by a seller of:


             394          (A) tangible personal property; or
             395          (B) services; and
             396          (ii) for preparation and delivery of the tangible personal property or services described
             397      in Subsection (24)(a)(i) to a location designated by the purchaser.
             398          (b) "Delivery charge" includes a charge for the following:
             399          (i) transportation;
             400          (ii) shipping;
             401          (iii) postage;
             402          (iv) handling;
             403          (v) crating; or
             404          (vi) packing.
             405          (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
             406          (i) a bridge;
             407          (ii) a crown if that crown covers at least 75% of a tooth structure;
             408          (iii) a denture;
             409          (iv) an implant;
             410          (v) an orthodontic device designed to:
             411          (A) retain the position or spacing of teeth; and
             412          (B) replace a missing tooth;
             413          (vi) a partial denture; or
             414          (vii) a device similar to Subsections (25)(a)(i) through (vi).
             415          (b) "Dental prosthesis" does not include an appliance or device, other than a device
             416      described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
             417      apply force to the teeth and their supporting structures to:
             418          (i) produce changes in their relationship to each other; and
             419          (ii) control their growth and development.
             420          (26) "Dietary supplement" means a product, other than tobacco, that:
             421          (a) is intended to supplement the diet;


             422          (b) contains one or more of the following dietary ingredients:
             423          (i) a vitamin;
             424          (ii) a mineral;
             425          (iii) an herb or other botanical;
             426          (iv) an amino acid;
             427          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             428      dietary intake; or
             429          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             430      described in Subsections (26)(b)(i) through (v);
             431          (c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
             432          (A) tablet form;
             433          (B) capsule form;
             434          (C) powder form;
             435          (D) softgel form;
             436          (E) gelcap form; or
             437          (F) liquid form; or
             438          (ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
             439      a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
             440          (A) as conventional food; and
             441          (B) for use as a sole item of:
             442          (I) a meal; or
             443          (II) the diet; and
             444          (d) is required to be labeled as a dietary supplement:
             445          (i) identifiable by the "Supplemental Facts" box found on the label; and
             446          (ii) as required by 21 C.F.R. Sec. 101.36.
             447          (27) (a) "Direct mail" means printed material delivered or distributed by United States
             448      mail or other delivery service:
             449          (i) to:


             450          (A) a mass audience; or
             451          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             452          (ii) if the cost of the printed material is not billed directly to the recipients.
             453          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             454      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             455          (c) "Direct mail" does not include multiple items of printed material delivered to a single
             456      address.
             457          (28) (a) "Disposable home medical equipment or supplies" means medical equipment or
             458      supplies that:
             459          (i) cannot withstand repeated use; and
             460          (ii) are purchased by, for, or on behalf of a person other than:
             461          (A) a health care facility as defined in Section 26-21-2 ;
             462          (B) a health care provider as defined in Section 78-14-3 ;
             463          (C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
             464          (D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
             465          (b) "Disposable home medical equipment or supplies" does not include:
             466          (i) a drug;
             467          (ii) durable medical equipment;
             468          (iii) a hearing aid;
             469          (iv) a hearing aid accessory;
             470          (v) mobility enhancing equipment; or
             471          (vi) tangible personal property used to correct impaired vision, including:
             472          (A) eyeglasses; or
             473          (B) contact lenses.
             474          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             475      commission may by rule define what constitutes medical equipment or supplies.
             476          (29) (a) "Drug" means a compound, substance, or preparation, or a component of a
             477      compound, substance, or preparation that is:


             478          (i) recognized in:
             479          (A) the official United States Pharmacopoeia;
             480          (B) the official Homeopathic Pharmacopoeia of the United States;
             481          (C) the official National Formulary; or
             482          (D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
             483          (ii) intended for use in the:
             484          (A) diagnosis of disease;
             485          (B) cure of disease;
             486          (C) mitigation of disease;
             487          (D) treatment of disease; or
             488          (E) prevention of disease; or
             489          (iii) intended to affect:
             490          (A) the structure of the body; or
             491          (B) any function of the body.
             492          (b) "Drug" does not include:
             493          (i) food and food ingredients;
             494          (ii) a dietary supplement;
             495          (iii) an alcoholic beverage; or
             496          (iv) a prosthetic device.
             497          (30) (a) Except as provided in Subsection (30)(c), "durable medical equipment" means
             498      equipment that:
             499          (i) can withstand repeated use;
             500          (ii) is primarily and customarily used to serve a medical purpose;
             501          (iii) generally is not useful to a person in the absence of illness or injury; and
             502          (iv) is not worn in or on the body.
             503          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             504      equipment described in Subsection (30)(a).
             505          (c) Notwithstanding Subsection (30)(a), "durable medical equipment" does not include


             506      mobility enhancing equipment.
             507          (31) "Electronic" means:
             508          (a) relating to technology; and
             509          (b) having:
             510          (i) electrical capabilities;
             511          (ii) digital capabilities;
             512          (iii) magnetic capabilities;
             513          (iv) wireless capabilities;
             514          (v) optical capabilities;
             515          (vi) electromagnetic capabilities; or
             516          (vii) capabilities similar to Subsections (31)(b)(i) through (vi).
             517          (32) "Employee" is as defined in Section 59-10-401 .
             518          (33) "Fixed guideway" means a public transit facility that uses and occupies:
             519          (a) rail for the use of public transit; or
             520          (b) a separate right-of-way for the use of public transit.
             521          (34) (a) "Food and food ingredients" means substances:
             522          (i) regardless of whether the substances are in:
             523          (A) liquid form;
             524          (B) concentrated form;
             525          (C) solid form;
             526          (D) frozen form;
             527          (E) dried form; or
             528          (F) dehydrated form; and
             529          (ii) that are:
             530          (A) sold for:
             531          (I) ingestion by humans; or
             532          (II) chewing by humans; and
             533          (B) consumed for the substance's:


             534          (I) taste; or
             535          (II) nutritional value.
             536          (b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).
             537          (c) "Food and food ingredients" does not include:
             538          (i) an alcoholic beverage;
             539          (ii) tobacco; or
             540          (iii) prepared food.
             541          (35) (a) "Fundraising sales" means sales:
             542          (i) (A) made by a school; or
             543          (B) made by a school student;
             544          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             545      materials, or provide transportation; and
             546          (iii) that are part of an officially sanctioned school activity.
             547          (b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity" means
             548      a school activity:
             549          (i) that is conducted in accordance with a formal policy adopted by the school or school
             550      district governing the authorization and supervision of fundraising activities;
             551          (ii) that does not directly or indirectly compensate an individual teacher or other
             552      educational personnel by direct payment, commissions, or payment in kind; and
             553          (iii) the net or gross revenues from which are deposited in a dedicated account
             554      controlled by the school or school district.
             555          (36) "Geothermal energy" means energy contained in heat that continuously flows
             556      outward from the earth that is used as the sole source of energy to produce electricity.
             557          (37) "Governing board of the agreement" means the governing board of the agreement
             558      that is:
             559          (a) authorized to administer the agreement; and
             560          (b) established in accordance with the agreement.
             561          (38) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:


             562          (i) the executive branch of the state, including all departments, institutions, boards,
             563      divisions, bureaus, offices, commissions, and committees;
             564          (ii) the judicial branch of the state, including the courts, the Judicial Council, the Office
             565      of the Court Administrator, and similar administrative units in the judicial branch;
             566          (iii) the legislative branch of the state, including the House of Representatives, the
             567      Senate, the Legislative Printing Office, the Office of Legislative Research and General Counsel,
             568      the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
             569          (iv) the National Guard;
             570          (v) an independent entity as defined in Section 63E-1-102 ; or
             571          (vi) a political subdivision as defined in Section 17B-1-102 .
             572          (b) "Governmental entity" does not include the state systems of public and higher
             573      education, including:
             574          (i) a college campus of the Utah College of Applied Technology;
             575          (ii) a school;
             576          (iii) the State Board of Education;
             577          (iv) the State Board of Regents; or
             578          (v) a state institution of higher education as defined in Section 53B-3-102 .
             579          (39) (a) "Hearing aid" means:
             580          (i) an instrument or device having an electronic component that is designed to:
             581          (A) (I) improve impaired human hearing; or
             582          (II) correct impaired human hearing; and
             583          (B) (I) be worn in the human ear; or
             584          (II) affixed behind the human ear;
             585          (ii) an instrument or device that is surgically implanted into the cochlea; or
             586          (iii) a telephone amplifying device.
             587          (b) "Hearing aid" does not include:
             588          (i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
             589      having an electronic component that is designed to be worn on the body;


             590          (ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
             591      designed to be used by one individual, including:
             592          (A) a personal amplifying system;
             593          (B) a personal FM system;
             594          (C) a television listening system; or
             595          (D) a device or system similar to a device or system described in Subsections
             596      (39)(b)(ii)(A) through (C); or
             597          (iii) an assistive listening device or system designed to be used by more than one
             598      individual, including:
             599          (A) a device or system installed in:
             600          (I) an auditorium;
             601          (II) a church;
             602          (III) a conference room;
             603          (IV) a synagogue; or
             604          (V) a theater; or
             605          (B) a device or system similar to a device or system described in Subsections
             606      (39)(b)(iii)(A)(I) through (V).
             607          (40) (a) "Hearing aid accessory" means a hearing aid:
             608          (i) component;
             609          (ii) attachment; or
             610          (iii) accessory.
             611          (b) "Hearing aid accessory" includes:
             612          (i) a hearing aid neck loop;
             613          (ii) a hearing aid cord;
             614          (iii) a hearing aid ear mold;
             615          (iv) hearing aid tubing;
             616          (v) a hearing aid ear hook; or
             617          (vi) a hearing aid remote control.


             618          (c) "Hearing aid accessory" does not include:
             619          (i) a component, attachment, or accessory designed to be used only with an:
             620          (A) instrument or device described in Subsection (39)(b)(i); or
             621          (B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or
             622          (ii) a hearing aid battery.
             623          (41) "Hydroelectric energy" means water used as the sole source of energy to produce
             624      electricity.
             625          (42) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             626      other fuels:
             627          (a) in mining or extraction of minerals;
             628          (b) in agricultural operations to produce an agricultural product up to the time of
             629      harvest or placing the agricultural product into a storage facility, including:
             630          (i) commercial greenhouses;
             631          (ii) irrigation pumps;
             632          (iii) farm machinery;
             633          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             634      registered under Title 41, Chapter 1a, Part 2, Registration; and
             635          (v) other farming activities;
             636          (c) in manufacturing tangible personal property at an establishment described in SIC
             637      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             638      Executive Office of the President, Office of Management and Budget;
             639          (d) by a scrap recycler if:
             640          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             641      one or more of the following items into prepared grades of processed materials for use in new
             642      products:
             643          (A) iron;
             644          (B) steel;
             645          (C) nonferrous metal;


             646          (D) paper;
             647          (E) glass;
             648          (F) plastic;
             649          (G) textile; or
             650          (H) rubber; and
             651          (ii) the new products under Subsection (42)(d)(i) would otherwise be made with
             652      nonrecycled materials; or
             653          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             654      cogeneration facility as defined in Section 54-2-1 .
             655          (43) (a) Except as provided in Subsection (43)(b), "installation charge" means a charge
             656      for installing tangible personal property.
             657          (b) Notwithstanding Subsection (43)(a), "installation charge" does not include a charge
             658      for repairs or renovations of tangible personal property.
             659          (44) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             660      personal property for:
             661          (i) (A) a fixed term; or
             662          (B) an indeterminate term; and
             663          (ii) consideration.
             664          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             665      amount of consideration may be increased or decreased by reference to the amount realized
             666      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             667      Code.
             668          (c) "Lease" or "rental" does not include:
             669          (i) a transfer of possession or control of property under a security agreement or
             670      deferred payment plan that requires the transfer of title upon completion of the required
             671      payments;
             672          (ii) a transfer of possession or control of property under an agreement that requires the
             673      transfer of title:


             674          (A) upon completion of required payments; and
             675          (B) if the payment of an option price does not exceed the greater of:
             676          (I) $100; or
             677          (II) 1% of the total required payments; or
             678          (iii) providing tangible personal property along with an operator for a fixed period of
             679      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             680      designed.
             681          (d) For purposes of Subsection (44)(c)(iii), an operator is necessary for equipment to
             682      perform as designed if the operator's duties exceed the:
             683          (i) set-up of tangible personal property;
             684          (ii) maintenance of tangible personal property; or
             685          (iii) inspection of tangible personal property.
             686          (45) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             687      if the tangible storage media is not physically transferred to the purchaser.
             688          (46) "Local taxing jurisdiction" means a:
             689          (a) county that is authorized to impose an agreement sales and use tax;
             690          (b) city that is authorized to impose an agreement sales and use tax; or
             691          (c) town that is authorized to impose an agreement sales and use tax.
             692          (47) "Manufactured home" is as defined in Section 58-56-3 .
             693          (48) For purposes of Section 59-12-104 , "manufacturing facility" means:
             694          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             695      Industrial Classification Manual of the federal Executive Office of the President, Office of
             696      Management and Budget;
             697          (b) a scrap recycler if:
             698          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             699      one or more of the following items into prepared grades of processed materials for use in new
             700      products:
             701          (A) iron;


             702          (B) steel;
             703          (C) nonferrous metal;
             704          (D) paper;
             705          (E) glass;
             706          (F) plastic;
             707          (G) textile; or
             708          (H) rubber; and
             709          (ii) the new products under Subsection (48)(b)(i) would otherwise be made with
             710      nonrecycled materials; or
             711          (c) a cogeneration facility as defined in Section 54-2-1 .
             712          (49) "Member of the immediate family of the producer" means a person who is related
             713      to a producer described in Subsection 59-12-104 (20)(a) as a:
             714          (a) child or stepchild, regardless of whether the child or stepchild is:
             715          (i) an adopted child or adopted stepchild; or
             716          (ii) a foster child or foster stepchild;
             717          (b) grandchild or stepgrandchild;
             718          (c) grandparent or stepgrandparent;
             719          (d) nephew or stepnephew;
             720          (e) niece or stepniece;
             721          (f) parent or stepparent;
             722          (g) sibling or stepsibling;
             723          (h) spouse;
             724          (i) person who is the spouse of a person described in Subsections (49)(a) through (g);
             725      or
             726          (j) person similar to a person described in Subsections (49)(a) through (i) as determined
             727      by the commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative
             728      Rulemaking Act.
             729          (50) "Mobile home" is as defined in Section 58-56-3 .


             730          (51) "Mobile telecommunications service" is as defined in the Mobile
             731      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             732          (52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"
             733      means equipment that is:
             734          (i) primarily and customarily used to provide or increase the ability to move from one
             735      place to another;
             736          (ii) appropriate for use in a:
             737          (A) home; or
             738          (B) motor vehicle; and
             739          (iii) not generally used by persons with normal mobility.
             740          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             741      the equipment described in Subsection (52)(a).
             742          (c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
             743      include:
             744          (i) a motor vehicle;
             745          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             746      vehicle manufacturer;
             747          (iii) durable medical equipment; or
             748          (iv) a prosthetic device.
             749          (53) "Model 1 seller" means a seller that has selected a certified service provider as the
             750      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             751      use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             752      seller's own purchases.
             753          (54) "Model 2 seller" means a seller that:
             754          (a) except as provided in Subsection (54)(b), has selected a certified automated system
             755      to perform the seller's sales tax functions for agreement sales and use taxes; and
             756          (b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
             757      sales tax:


             758          (i) collected by the seller; and
             759          (ii) to the appropriate local taxing jurisdiction.
             760          (55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:
             761          (i) sales in at least five states that are members of the agreement;
             762          (ii) total annual sales revenues of at least $500,000,000;
             763          (iii) a proprietary system that calculates the amount of tax:
             764          (A) for an agreement sales and use tax; and
             765          (B) due to each local taxing jurisdiction; and
             766          (iv) entered into a performance agreement with the governing board of the agreement.
             767          (b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of
             768      sellers using the same proprietary system.
             769          (56) "Modular home" means a modular unit as defined in Section 58-56-3 .
             770          (57) "Motor vehicle" is as defined in Section 41-1a-102 .
             771          (58) "Oil shale" means a group of fine black to dark brown shales containing bituminous
             772      material that yields petroleum upon distillation.
             773          (59) (a) "Other fuels" means products that burn independently to produce heat or
             774      energy.
             775          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             776      personal property.
             777          (60) "Pawnbroker" is as defined in Section 13-32a-102 .
             778          (61) "Pawn transaction" is as defined in Section 13-32a-102 .
             779          (62) (a) "Permanently attached to real property" means that for tangible personal
             780      property attached to real property:
             781          (i) the attachment of the tangible personal property to the real property:
             782          (A) is essential to the use of the tangible personal property; and
             783          (B) suggests that the tangible personal property will remain attached to the real
             784      property in the same place over the useful life of the tangible personal property; or
             785          (ii) if the tangible personal property is detached from the real property, the detachment


             786      would:
             787          (A) cause substantial damage to the tangible personal property; or
             788          (B) require substantial alteration or repair of the real property to which the tangible
             789      personal property is attached.
             790          (b) "Permanently attached to real property" includes:
             791          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             792          (A) essential to the operation of the tangible personal property; and
             793          (B) attached only to facilitate the operation of the tangible personal property;
             794          (ii) a temporary detachment of tangible personal property from real property for a repair
             795      or renovation if the repair or renovation is performed where the tangible personal property and
             796      real property are located; or
             797          (iii) an attachment of the following tangible personal property to real property,
             798      regardless of whether the attachment to real property is only through a line that supplies water,
             799      electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
             800      rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
             801          (A) property attached to oil, gas, or water pipelines, other than the property listed in
             802      Subsection (62)(c)(iii);
             803          (B) a hot water heater;
             804          (C) a water softener system; or
             805          (D) a water filtration system, other than a water filtration system manufactured as part
             806      of a refrigerator.
             807          (c) "Permanently attached to real property" does not include:
             808          (i) the attachment of portable or movable tangible personal property to real property if
             809      that portable or movable tangible personal property is attached to real property only for:
             810          (A) convenience;
             811          (B) stability; or
             812          (C) for an obvious temporary purpose;
             813          (ii) the detachment of tangible personal property from real property other than the


             814      detachment described in Subsection (62)(b)(ii); or
             815          (iii) an attachment of the following tangible personal property to real property if the
             816      attachment to real property is only through a line that supplies water, electricity, gas, telephone,
             817      cable, or supplies a similar item as determined by the commission by rule made in accordance
             818      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
             819          (A) a refrigerator;
             820          (B) a washer;
             821          (C) a dryer;
             822          (D) a stove;
             823          (E) a television;
             824          (F) a computer;
             825          (G) a telephone; or
             826          (H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
             827      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             828      Administrative Rulemaking Act.
             829          (63) "Person" includes any individual, firm, partnership, joint venture, association,
             830      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             831      municipality, district, or other local governmental entity of the state, or any group or
             832      combination acting as a unit.
             833          (64) "Place of primary use":
             834          (a) for telephone service other than mobile telecommunications service, means the
             835      street address representative of where the purchaser's use of the telephone service primarily
             836      occurs, which shall be:
             837          (i) the residential street address of the purchaser; or
             838          (ii) the primary business street address of the purchaser; or
             839          (b) for mobile telecommunications service, is as defined in the Mobile
             840      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             841          (65) "Postproduction" means an activity related to the finishing or duplication of a


             842      medium described in Subsection 59-12-104 (56)(a).
             843          (66) (a) "Prepared food" means:
             844          (i) food:
             845          (A) sold in a heated state; or
             846          (B) heated by a seller;
             847          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             848      item; or
             849          (iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
             850      by the seller, including a:
             851          (A) plate;
             852          (B) knife;
             853          (C) fork;
             854          (D) spoon;
             855          (E) glass;
             856          (F) cup;
             857          (G) napkin; or
             858          (H) straw.
             859          (b) "Prepared food" does not include:
             860          (i) food that a seller only:
             861          (A) cuts;
             862          (B) repackages; or
             863          (C) pasteurizes; or
             864          (ii) (A) the following:
             865          (I) raw egg;
             866          (II) raw fish;
             867          (III) raw meat;
             868          (IV) raw poultry; or
             869          (V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);


             870      and
             871          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             872      Food and Drug Administration's Food Code that a consumer cook the items described in
             873      Subsection (66)(b)(ii)(A) to prevent food borne illness; or
             874          (iii) the following if sold without eating utensils provided by the seller:
             875          (A) food and food ingredients sold by a seller if the seller's proper primary classification
             876      under the 2002 North American Industry Classification System of the federal Executive Office
             877      of the President, Office of Management and Budget, is manufacturing in Sector 311, Food
             878      Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
             879          (B) food and food ingredients sold in an unheated state:
             880          (I) by weight or volume; and
             881          (II) as a single item; or
             882          (C) a bakery item, including:
             883          (I) a bagel;
             884          (II) a bar;
             885          (III) a biscuit;
             886          (IV) bread;
             887          (V) a bun;
             888          (VI) a cake;
             889          (VII) a cookie;
             890          (VIII) a croissant;
             891          (IX) a danish;
             892          (X) a donut;
             893          (XI) a muffin;
             894          (XII) a pastry;
             895          (XIII) a pie;
             896          (XIV) a roll;
             897          (XV) a tart;


             898          (XVI) a torte; or
             899          (XVII) a tortilla.
             900          (c) Notwithstanding Subsection (66)(a)(iii), an eating utensil provided by the seller does
             901      not include the following used to transport the food:
             902          (i) a container; or
             903          (ii) packaging.
             904          (67) "Prescription" means an order, formula, or recipe that is issued:
             905          (a) (i) orally;
             906          (ii) in writing;
             907          (iii) electronically; or
             908          (iv) by any other manner of transmission; and
             909          (b) by a licensed practitioner authorized by the laws of a state.
             910          (68) (a) Except as provided in Subsection (68)(b)(ii) or (iii), "prewritten computer
             911      software" means computer software that is not designed and developed:
             912          (i) by the author or other creator of the computer software; and
             913          (ii) to the specifications of a specific purchaser.
             914          (b) "Prewritten computer software" includes:
             915          (i) a prewritten upgrade to computer software if the prewritten upgrade to the
             916      computer software is not designed and developed:
             917          (A) by the author or other creator of the computer software; and
             918          (B) to the specifications of a specific purchaser;
             919          (ii) notwithstanding Subsection (68)(a), computer software designed and developed by
             920      the author or other creator of the computer software to the specifications of a specific purchaser
             921      if the computer software is sold to a person other than the purchaser; or
             922          (iii) notwithstanding Subsection (68)(a) and except as provided in Subsection (68)(c),
             923      prewritten computer software or a prewritten portion of prewritten computer software:
             924          (A) that is modified or enhanced to any degree; and
             925          (B) if the modification or enhancement described in Subsection (68)(b)(iii)(A) is


             926      designed and developed to the specifications of a specific purchaser.
             927          (c) Notwithstanding Subsection (68)(b)(iii), "prewritten computer software" does not
             928      include a modification or enhancement described in Subsection (68)(b)(iii) if the charges for the
             929      modification or enhancement are:
             930          (i) reasonable; and
             931          (ii) separately stated on the invoice or other statement of price provided to the
             932      purchaser.
             933          (69) (a) "Prosthetic device" means a device that is worn on or in the body to:
             934          (i) artificially replace a missing portion of the body;
             935          (ii) prevent or correct a physical deformity or physical malfunction; or
             936          (iii) support a weak or deformed portion of the body.
             937          (b) "Prosthetic device" includes:
             938          (i) parts used in the repairs or renovation of a prosthetic device;
             939          (ii) replacement parts for a prosthetic device; or
             940          (iii) a dental prosthesis.
             941          (c) "Prosthetic device" does not include:
             942          (i) corrective eyeglasses;
             943          (ii) contact lenses; or
             944          (iii) hearing aids.
             945          (70) (a) "Protective equipment" means an item:
             946          (i) for human wear; and
             947          (ii) that is:
             948          (A) designed as protection:
             949          (I) to the wearer against injury or disease; or
             950          (II) against damage or injury of other persons or property; and
             951          (B) not suitable for general use.
             952          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             953      commission shall make rules:


             954          (i) listing the items that constitute "protective equipment"; and
             955          (ii) that are consistent with the list of items that constitute "protective equipment" under
             956      the agreement.
             957          (71) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             958      printed matter, other than a photocopy:
             959          (i) regardless of:
             960          (A) characteristics;
             961          (B) copyright;
             962          (C) form;
             963          (D) format;
             964          (E) method of reproduction; or
             965          (F) source; and
             966          (ii) made available in printed or electronic format.
             967          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             968      commission may by rule define the term "photocopy."
             969          (72) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             970          (i) valued in money; and
             971          (ii) for which tangible personal property or services are:
             972          (A) sold;
             973          (B) leased; or
             974          (C) rented.
             975          (b) "Purchase price" and "sales price" include:
             976          (i) the seller's cost of the tangible personal property or services sold;
             977          (ii) expenses of the seller, including:
             978          (A) the cost of materials used;
             979          (B) a labor cost;
             980          (C) a service cost;
             981          (D) interest;


             982          (E) a loss;
             983          (F) the cost of transportation to the seller; or
             984          (G) a tax imposed on the seller; or
             985          (iii) a charge by the seller for any service necessary to complete the sale.
             986          (c) "Purchase price" and "sales price" do not include:
             987          (i) a discount:
             988          (A) in a form including:
             989          (I) cash;
             990          (II) term; or
             991          (III) coupon;
             992          (B) that is allowed by a seller;
             993          (C) taken by a purchaser on a sale; and
             994          (D) that is not reimbursed by a third party; or
             995          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             996      provided to the purchaser:
             997          (A) the amount of a trade-in;
             998          (B) the following from credit extended on the sale of tangible personal property or
             999      services:
             1000          (I) interest charges;
             1001          (II) financing charges; or
             1002          (III) carrying charges;
             1003          (C) a tax or fee legally imposed directly on the consumer;
             1004          (D) a delivery charge; or
             1005          (E) an installation charge.
             1006          (73) "Purchaser" means a person to whom:
             1007          (a) a sale of tangible personal property is made; or
             1008          (b) a service is furnished.
             1009          (74) "Regularly rented" means:


             1010          (a) rented to a guest for value three or more times during a calendar year; or
             1011          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1012      value.
             1013          (75) "Renewable energy" means:
             1014          (a) biomass energy;
             1015          (b) hydroelectric energy;
             1016          (c) geothermal energy;
             1017          (d) solar energy; or
             1018          (e) wind energy.
             1019          (76) (a) "Renewable energy production facility" means a facility that:
             1020          (i) uses renewable energy to produce electricity; and
             1021          (ii) has a production capacity of 20 kilowatts or greater.
             1022          (b) A facility is a renewable energy production facility regardless of whether the facility
             1023      is:
             1024          (i) connected to an electric grid; or
             1025          (ii) located on the premises of an electricity consumer.
             1026          (77) "Rental" is as defined in Subsection (44).
             1027          (78) "Repairs or renovations of tangible personal property" means:
             1028          (a) a repair or renovation of tangible personal property that is not permanently attached
             1029      to real property; or
             1030          (b) attaching tangible personal property to other tangible personal property if the other
             1031      tangible personal property to which the tangible personal property is attached is not
             1032      permanently attached to real property.
             1033          (79) "Research and development" means the process of inquiry or experimentation
             1034      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1035      preparing those devices, technologies, or applications for marketing.
             1036          (80) "Residential use" means the use in or around a home, apartment building, sleeping
             1037      quarters, and similar facilities or accommodations.


             1038          (81) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1039      than:
             1040          (a) resale;
             1041          (b) sublease; or
             1042          (c) subrent.
             1043          (82) (a) "Retailer" means any person engaged in a regularly organized business in
             1044      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1045      who is selling to the user or consumer and not for resale.
             1046          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1047      engaged in the business of selling to users or consumers within the state.
             1048          (83) (a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
             1049      in any manner, of tangible personal property or any other taxable transaction under Subsection
             1050      59-12-103 (1), for consideration.
             1051          (b) "Sale" includes:
             1052          (i) installment and credit sales;
             1053          (ii) any closed transaction constituting a sale;
             1054          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1055      chapter;
             1056          (iv) any transaction if the possession of property is transferred but the seller retains the
             1057      title as security for the payment of the price; and
             1058          (v) any transaction under which right to possession, operation, or use of any article of
             1059      tangible personal property is granted under a lease or contract and the transfer of possession
             1060      would be taxable if an outright sale were made.
             1061          (84) "Sale at retail" is as defined in Subsection (81).
             1062          (85) "Sale-leaseback transaction" means a transaction by which title to tangible personal
             1063      property that is subject to a tax under this chapter is transferred:
             1064          (a) by a purchaser-lessee;
             1065          (b) to a lessor;


             1066          (c) for consideration; and
             1067          (d) if:
             1068          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1069      of the tangible personal property;
             1070          (ii) the sale of the tangible personal property to the lessor is intended as a form of
             1071      financing:
             1072          (A) for the property; and
             1073          (B) to the purchaser-lessee; and
             1074          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee is
             1075      required to:
             1076          (A) capitalize the property for financial reporting purposes; and
             1077          (B) account for the lease payments as payments made under a financing arrangement.
             1078          (86) "Sales price" is as defined in Subsection (72).
             1079          (87) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1080      amounts charged by a school:
             1081          (i) sales that are directly related to the school's educational functions or activities
             1082      including:
             1083          (A) the sale of:
             1084          (I) textbooks;
             1085          (II) textbook fees;
             1086          (III) laboratory fees;
             1087          (IV) laboratory supplies; or
             1088          (V) safety equipment;
             1089          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1090      that:
             1091          (I) a student is specifically required to wear as a condition of participation in a
             1092      school-related event or school-related activity; and
             1093          (II) is not readily adaptable to general or continued usage to the extent that it takes the


             1094      place of ordinary clothing;
             1095          (C) sales of the following if the net or gross revenues generated by the sales are
             1096      deposited into a school district fund or school fund dedicated to school meals:
             1097          (I) food and food ingredients; or
             1098          (II) prepared food; or
             1099          (D) transportation charges for official school activities; or
             1100          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1101      event or school-related activity.
             1102          (b) "Sales relating to schools" does not include:
             1103          (i) bookstore sales of items that are not educational materials or supplies;
             1104          (ii) except as provided in Subsection (87)(a)(i)(B):
             1105          (A) clothing;
             1106          (B) clothing accessories or equipment;
             1107          (C) protective equipment; or
             1108          (D) sports or recreational equipment; or
             1109          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1110      event or school-related activity if the amounts paid or charged are passed through to a person:
             1111          (A) other than a:
             1112          (I) school;
             1113          (II) nonprofit organization authorized by a school board or a governing body of a
             1114      private school to organize and direct a competitive secondary school activity; or
             1115          (III) nonprofit association authorized by a school board or a governing body of a
             1116      private school to organize and direct a competitive secondary school activity; and
             1117          (B) that is required to collect sales and use taxes under this chapter.
             1118          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1119      commission may make rules defining the term "passed through."
             1120          (88) For purposes of this section and Section 59-12-104 , "school":
             1121          (a) means:


             1122          (i) an elementary school or a secondary school that:
             1123          (A) is a:
             1124          (I) public school; or
             1125          (II) private school; and
             1126          (B) provides instruction for one or more grades kindergarten through 12; or
             1127          (ii) a public school district; and
             1128          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1129          (89) "Seller" means a person that makes a sale, lease, or rental of:
             1130          (a) tangible personal property; or
             1131          (b) a service.
             1132          (90) (a) "Semiconductor fabricating, processing, research, or development materials"
             1133      means tangible personal property:
             1134          (i) used primarily in the process of:
             1135          (A) (I) manufacturing a semiconductor;
             1136          (II) fabricating a semiconductor; or
             1137          (III) research or development of a:
             1138          (Aa) semiconductor; or
             1139          (Bb) semiconductor manufacturing process; or
             1140          (B) maintaining an environment suitable for a semiconductor; or
             1141          (ii) consumed primarily in the process of:
             1142          (A) (I) manufacturing a semiconductor;
             1143          (II) fabricating a semiconductor; or
             1144          (III) research or development of a:
             1145          (Aa) semiconductor; or
             1146          (Bb) semiconductor manufacturing process; or
             1147          (B) maintaining an environment suitable for a semiconductor.
             1148          (b) "Semiconductor fabricating, processing, research, or development materials"
             1149      includes:


             1150          (i) parts used in the repairs or renovations of tangible personal property described in
             1151      Subsection (90)(a); or
             1152          (ii) a chemical, catalyst, or other material used to:
             1153          (A) produce or induce in a semiconductor a:
             1154          (I) chemical change; or
             1155          (II) physical change;
             1156          (B) remove impurities from a semiconductor; or
             1157          (C) improve the marketable condition of a semiconductor.
             1158          (91) "Senior citizen center" means a facility having the primary purpose of providing
             1159      services to the aged as defined in Section 62A-3-101 .
             1160          (92) "Simplified electronic return" means the electronic return:
             1161          (a) described in Section 318(C) of the agreement; and
             1162          (b) approved by the governing board of the agreement.
             1163          (93) "Solar energy" means the sun used as the sole source of energy for producing
             1164      electricity.
             1165          (94) (a) "Sports or recreational equipment" means an item:
             1166          (i) designed for human use; and
             1167          (ii) that is:
             1168          (A) worn in conjunction with:
             1169          (I) an athletic activity; or
             1170          (II) a recreational activity; and
             1171          (B) not suitable for general use.
             1172          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1173      commission shall make rules:
             1174          (i) listing the items that constitute "sports or recreational equipment"; and
             1175          (ii) that are consistent with the list of items that constitute "sports or recreational
             1176      equipment" under the agreement.
             1177          (95) "State" means the state of Utah, its departments, and agencies.


             1178          (96) "Storage" means any keeping or retention of tangible personal property or any
             1179      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1180      sale in the regular course of business.
             1181          (97) (a) "Tangible personal property" means personal property that:
             1182          (i) may be:
             1183          (A) seen;
             1184          (B) weighed;
             1185          (C) measured;
             1186          (D) felt; or
             1187          (E) touched; or
             1188          (ii) is in any manner perceptible to the senses.
             1189          (b) "Tangible personal property" includes:
             1190          (i) electricity;
             1191          (ii) water;
             1192          (iii) gas;
             1193          (iv) steam; or
             1194          (v) prewritten computer software.
             1195          (98) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1196      and require further processing other than mechanical blending before becoming finished
             1197      petroleum products.
             1198          (99) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1199      software" means an item listed in Subsection (99)(b) if that item is purchased or leased primarily
             1200      to enable or facilitate one or more of the following to function:
             1201          (i) telecommunications switching or routing equipment, machinery, or software; or
             1202          (ii) telecommunications transmission equipment, machinery, or software.
             1203          (b) The following apply to Subsection (99)(a):
             1204          (i) a pole;
             1205          (ii) software;


             1206          (iii) a supplementary power supply;
             1207          (iv) temperature or environmental equipment or machinery;
             1208          (v) test equipment;
             1209          (vi) a tower; or
             1210          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1211      Subsections (99)(b)(i) through (vi) as determined by the commission by rule made in
             1212      accordance with Subsection (99)(c).
             1213          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1214      commission may by rule define what constitutes equipment, machinery, or software that
             1215      functions similarly to an item listed in Subsections (99)(b)(i) through (vi).
             1216          (100) "Telecommunications equipment, machinery, or software required for 911
             1217      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1218      Sec. 20.18.
             1219          (101) "Telecommunications maintenance or repair equipment, machinery, or software"
             1220      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1221      one or more of the following, regardless of whether the equipment, machinery, or software is
             1222      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1223      following:
             1224          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1225          (b) telecommunications switching or routing equipment, machinery, or software; or
             1226          (c) telecommunications transmission equipment, machinery, or software.
             1227          (102) (a) "Telecommunications switching or routing equipment, machinery, or
             1228      software" means an item listed in Subsection (102)(b) if that item is purchased or leased
             1229      primarily for switching or routing:
             1230          (i) voice communications;
             1231          (ii) data communications; or
             1232          (iii) telephone service.
             1233          (b) The following apply to Subsection (102)(a):


             1234          (i) a bridge;
             1235          (ii) a computer;
             1236          (iii) a cross connect;
             1237          (iv) a modem;
             1238          (v) a multiplexer;
             1239          (vi) plug in circuitry;
             1240          (vii) a router;
             1241          (viii) software;
             1242          (ix) a switch; or
             1243          (x) equipment, machinery, or software that functions similarly to an item listed in
             1244      Subsections (102)(b)(i) through (ix) as determined by the commission by rule made in
             1245      accordance with Subsection (102)(c).
             1246          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1247      commission may by rule define what constitutes equipment, machinery, or software that
             1248      functions similarly to an item listed in Subsections (102)(b)(i) through (ix).
             1249          (103) (a) "Telecommunications transmission equipment, machinery, or software" means
             1250      an item listed in Subsection (103)(b) if that item is purchased or leased primarily for sending,
             1251      receiving, or transporting:
             1252          (i) voice communications;
             1253          (ii) data communications; or
             1254          (iii) telephone service.
             1255          (b) The following apply to Subsection (103)(a):
             1256          (i) an amplifier;
             1257          (ii) a cable;
             1258          (iii) a closure;
             1259          (iv) a conduit;
             1260          (v) a controller;
             1261          (vi) a duplexer;


             1262          (vii) a filter;
             1263          (viii) an input device;
             1264          (ix) an input/output device;
             1265          (x) an insulator;
             1266          (xi) microwave machinery or equipment;
             1267          (xii) an oscillator;
             1268          (xiii) an output device;
             1269          (xiv) a pedestal;
             1270          (xv) a power converter;
             1271          (xvi) a power supply;
             1272          (xvii) a radio channel;
             1273          (xviii) a radio receiver;
             1274          (xix) a radio transmitter;
             1275          (xx) a repeater;
             1276          (xxi) software;
             1277          (xxii) a terminal;
             1278          (xxiii) a timing unit;
             1279          (xxiv) a transformer;
             1280          (xxv) a wire; or
             1281          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1282      Subsections (103)(b)(i) through (xxv) as determined by the commission by rule made in
             1283      accordance with Subsection (103)(c).
             1284          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1285      commission may by rule define what constitutes equipment, machinery, or software that
             1286      functions similarly to an item listed in Subsections (103)(b)(i) through (xxv).
             1287          (104) (a) "Telephone service" means a two-way transmission:
             1288          (i) by:
             1289          (A) wire;


             1290          (B) radio;
             1291          (C) lightwave; or
             1292          (D) other electromagnetic means; and
             1293          (ii) of one or more of the following:
             1294          (A) a sign;
             1295          (B) a signal;
             1296          (C) writing;
             1297          (D) an image;
             1298          (E) sound;
             1299          (F) a message;
             1300          (G) data; or
             1301          (H) other information of any nature.
             1302          (b) "Telephone service" includes:
             1303          (i) mobile telecommunications service;
             1304          (ii) private communications service; or
             1305          (iii) automated digital telephone answering service.
             1306          (c) "Telephone service" does not include a service or a transaction that a state or a
             1307      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             1308      Tax Freedom Act, Pub. L. No. 105-277.
             1309          (105) Notwithstanding where a call is billed or paid, "telephone service address" means:
             1310          (a) if the location described in this Subsection (105)(a) is known, the location of the
             1311      telephone service equipment:
             1312          (i) to which a call is charged; and
             1313          (ii) from which the call originates or terminates;
             1314          (b) if the location described in Subsection (105)(a) is not known but the location
             1315      described in this Subsection (105)(b) is known, the location of the origination point of the signal
             1316      of the telephone service first identified by:
             1317          (i) the telecommunications system of the seller; or


             1318          (ii) if the system used to transport the signal is not that of the seller, information
             1319      received by the seller from its service provider; or
             1320          (c) if the locations described in Subsection (105)(a) or (b) are not known, the location
             1321      of a purchaser's primary place of use.
             1322          (106) (a) "Telephone service provider" means a person that:
             1323          (i) owns, controls, operates, or manages a telephone service; and
             1324          (ii) engages in an activity described in Subsection (106)(a)(i) for the shared use with or
             1325      resale to any person of the telephone service.
             1326          (b) A person described in Subsection (106)(a) is a telephone service provider whether
             1327      or not the Public Service Commission of Utah regulates:
             1328          (i) that person; or
             1329          (ii) the telephone service that the person owns, controls, operates, or manages.
             1330          (107) "Tobacco" means:
             1331          (a) a cigarette;
             1332          (b) a cigar;
             1333          (c) chewing tobacco;
             1334          (d) pipe tobacco; or
             1335          (e) any other item that contains tobacco.
             1336          (108) "Unassisted amusement device" means an amusement device, skill device, or ride
             1337      device that is started and stopped by the purchaser or renter of the right to use or operate the
             1338      amusement device, skill device, or ride device.
             1339          (109) (a) "Use" means the exercise of any right or power over tangible personal
             1340      property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
             1341      property, item, or service.
             1342          (b) "Use" does not include the sale, display, demonstration, or trial of that property in
             1343      the regular course of business and held for resale.
             1344          (110) (a) Subject to Subsection (110)(b), "vehicle" means the following that are
             1345      required to be titled, registered, or titled and registered:


             1346          (i) an aircraft as defined in Section 72-10-102 ;
             1347          (ii) a vehicle as defined in Section 41-1a-102 ;
             1348          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1349          (iv) a vessel as defined in Section 41-1a-102 .
             1350          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1351          (i) a vehicle described in Subsection (110)(a); or
             1352          (ii) (A) a locomotive;
             1353          (B) a freight car;
             1354          (C) railroad work equipment; or
             1355          (D) other railroad rolling stock.
             1356          (111) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1357      exchanging a vehicle as defined in Subsection (110).
             1358          (112) (a) Except as provided in Subsection (112)(b), "waste energy facility" means a
             1359      facility that generates electricity:
             1360          (i) using as the primary source of energy waste materials that would be placed in a
             1361      landfill or refuse pit if it were not used to generate electricity, including:
             1362          (A) tires;
             1363          (B) waste coal; or
             1364          (C) oil shale; and
             1365          (ii) in amounts greater than actually required for the operation of the facility.
             1366          (b) "Waste energy facility" does not include a facility that incinerates:
             1367          (i) municipal solid waste;
             1368          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1369          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1370          (113) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1371          (114) "Wind energy" means wind used as the sole source of energy to produce
             1372      electricity.
             1373          (115) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic


             1374      location by the United States Postal Service.
             1375          Section 5. Section 59-12-103 is amended to read:
             1376           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1377      tax revenues.
             1378          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1379      charged for the following transactions:
             1380          (a) retail sales of tangible personal property made within the state;
             1381          (b) amounts paid:
             1382          (i) to a:
             1383          (A) telephone service provider regardless of whether the telephone service provider is
             1384      municipally or privately owned; or
             1385          (B) telegraph corporation:
             1386          (I) as defined in Section 54-2-1 ; and
             1387          (II) regardless of whether the telegraph corporation is municipally or privately owned;
             1388      and
             1389          (ii) for:
             1390          (A) telephone service, other than mobile telecommunications service, that originates
             1391      and terminates within the boundaries of this state;
             1392          (B) mobile telecommunications service that originates and terminates within the
             1393      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             1394      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1395          (C) telegraph service;
             1396          (c) sales of the following for commercial use:
             1397          (i) gas;
             1398          (ii) electricity;
             1399          (iii) heat;
             1400          (iv) coal;
             1401          (v) fuel oil; or


             1402          (vi) other fuels;
             1403          (d) sales of the following for residential use:
             1404          (i) gas;
             1405          (ii) electricity;
             1406          (iii) heat;
             1407          (iv) coal;
             1408          (v) fuel oil; or
             1409          (vi) other fuels;
             1410          (e) sales of prepared food;
             1411          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1412      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1413      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs,
             1414      races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1415      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             1416      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis
             1417      courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1418      horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition,
             1419      cultural, or athletic activity;
             1420          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1421      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1422          (i) the tangible personal property; and
             1423          (ii) parts used in the repairs or renovations of the tangible personal property described
             1424      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1425      of that tangible personal property;
             1426          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             1427      assisted cleaning or washing of tangible personal property;
             1428          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             1429      accommodations and services that are regularly rented for less than 30 consecutive days;


             1430          (j) amounts paid or charged for laundry or dry cleaning services;
             1431          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1432      this state the tangible personal property is:
             1433          (i) stored;
             1434          (ii) used; or
             1435          (iii) otherwise consumed;
             1436          (l) amounts paid or charged for tangible personal property if within this state the
             1437      tangible personal property is:
             1438          (i) stored;
             1439          (ii) used; or
             1440          (iii) consumed; and
             1441          (m) amounts paid or charged for prepaid telephone calling cards.
             1442          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             1443      is imposed on a transaction described in Subsection (1) equal to the sum of:
             1444          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1445          (A) 4.65%; and
             1446          (B) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1447      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1448      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1449      Part 20, Supplemental State Sales and Use Tax Act; and
             1450          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1451      transaction under this chapter other than this part.
             1452          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1453      on a transaction described in Subsection (1)(d) equal to the sum of:
             1454          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             1455          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1456      transaction under this chapter other than this part.
             1457          (c) Except as provided in Subsection (2)(d) or (e), beginning on January 1, 2007, a


             1458      state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
             1459      equal to the sum of:
             1460          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             1461      a tax rate of 1.75%; and
             1462          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1463      amounts paid or charged for food and food ingredients under this chapter other than this part.
             1464          (d) Except as provided in Subsection (2)(e), if a seller collects a tax in accordance with
             1465      Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state tax and a local
             1466      tax is imposed on the transaction equal to the sum of:
             1467          (i) a state tax imposed on the transaction at a tax rate of:
             1468          (A) the sum of:
             1469          [(A)] (I) 4.65% for a transaction other than a transaction described in Subsection
             1470      (2)(d)(i)(B) or (2)(d)(i)(C); and
             1471          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1472      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1473      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1474      Part 20, Supplemental State Sales and Use Tax Act;
             1475          (B) 2% for a transaction described in Subsection (1)(d); or
             1476          (C) beginning on January 1, 2007, 1.75% on the amounts paid or charged for food and
             1477      food ingredients; and
             1478          (ii) a local tax imposed on the transaction at a tax rate equal to the sum of the following
             1479      tax rates:
             1480          (A) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             1481      and towns in the state impose the tax authorized by Section 59-12-204 ; and
             1482          (B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             1483      state impose the tax authorized by Section 59-12-1102 .
             1484          (e) (i) A state tax and a local tax is imposed on an entire bundled transaction as
             1485      provided in this Subsection (2)(e) if the bundled transaction is attributable to food and food


             1486      ingredients and tangible personal property other than food and food ingredients.
             1487          (ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
             1488      seller other than a seller that collects a tax in accordance with Subsection 59-12-107 (1)(b),
             1489      beginning on January 1, 2007, a state tax and a local tax is imposed on the entire bundled
             1490      transaction equal to the sum of:
             1491          (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
             1492          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             1493          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1494      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1495      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1496      Part 20, Supplemental State Sales and Use Tax Act; and
             1497          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             1498      described in Subsection (2)(a)(ii).
             1499          (iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
             1500      seller in accordance with Subsection 59-12-107 (1)(b), beginning on January 1, 2007, a state tax
             1501      and a local tax is imposed on the entire bundled transaction equal to the sum of:
             1502          (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
             1503          (I) the tax rate described in Subsection (2)(d)(i)(A); and
             1504          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1505      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1506      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1507      Part 20, Supplemental State Sales and Use Tax Act; and
             1508          (B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
             1509      of the following tax rates:
             1510          (I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             1511      and towns in the state impose the tax authorized by Section 59-12-204 ; and
             1512          (II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             1513      state impose the tax authorized by Section 59-12-1102 .


             1514          (f) Subject to Subsections (2)(g) and (h), a tax rate repeal or tax rate change for a tax
             1515      rate imposed under the following shall take effect on the first day of a calendar quarter:
             1516          (i) Subsection (2)(a)(i)(A);
             1517          (ii) Subsection (2)(b)(i);
             1518          (iii) Subsection (2)(c)(i);
             1519          (iv) Subsection (2)(d)(i)(A)(I);
             1520          (v) Subsection (2)(e)(ii)(A)(I); or
             1521          (vi) Subsection (2)(e)(iii)(A)(I).
             1522          (g) (i) For a transaction described in Subsection (2)(g)(iii), a tax rate increase shall take
             1523      effect on the first day of the first billing period that begins after the effective date of the tax rate
             1524      increase if the billing period for the transaction begins before the effective date of a tax rate
             1525      increase imposed under:
             1526          (A) Subsection (2)(a)(i)(A);
             1527          (B) Subsection (2)(b)(i);
             1528          (C) Subsection (2)(c)(i);
             1529          (D) Subsection (2)(d)(i)(A)(I);
             1530          (E) Subsection (2)(e)(ii)(A)(I); or
             1531          (F) Subsection (2)(e)(iii)(A)(I).
             1532          (ii) For a transaction described in Subsection (2)(g)(iii), the repeal of a tax or a tax rate
             1533      decrease shall take effect on the first day of the last billing period that began before the effective
             1534      date of the repeal of the tax or the tax rate decrease if the billing period for the transaction
             1535      begins before the effective date of the repeal of the tax or the tax rate decrease imposed under:
             1536          (A) Subsection (2)(a)(i)(A);
             1537          (B) Subsection (2)(b)(i);
             1538          (C) Subsection (2)(c)(i);
             1539          (D) Subsection (2)(d)(i)(A)(I);
             1540          (E) Subsection (2)(e)(ii)(A)(I); or
             1541          (F) Subsection (2)(e)(iii)(A)(I).


             1542          (iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:
             1543          (A) Subsection (1)(b);
             1544          (B) Subsection (1)(c);
             1545          (C) Subsection (1)(d);
             1546          (D) Subsection (1)(e);
             1547          (E) Subsection (1)(f);
             1548          (F) Subsection (1)(g);
             1549          (G) Subsection (1)(h);
             1550          (H) Subsection (1)(i);
             1551          (I) Subsection (1)(j); or
             1552          (J) Subsection (1)(k).
             1553          (h) (i) For a tax rate described in Subsection (2)(h)(ii), if a tax due on a catalogue sale is
             1554      computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
             1555      change in a tax rate takes effect:
             1556          (A) on the first day of a calendar quarter; and
             1557          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1558          (ii) Subsection (2)(h)(i) applies to the tax rates described in the following:
             1559          (A) Subsection (2)(a)(i)(A);
             1560          (B) Subsection (2)(b)(i);
             1561          (C) Subsection (2)(c)(i);
             1562          (D) Subsection (2)(d)(i)(A)(I);
             1563          (E) Subsection (2)(e)(ii)(A)(I); or
             1564          (F) Subsection (2)(e)(iii)(A)(I).
             1565          (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1566      commission may by rule define the term "catalogue sale."
             1567          (3) (a) Except as provided in Subsections (4) through (10), the following state taxes
             1568      shall be deposited into the General Fund:
             1569          (i) the tax imposed by Subsection (2)(a)(i)(A);


             1570          (ii) the tax imposed by Subsection (2)(b)(i);
             1571          (iii) the tax imposed by Subsection (2)(c)(i);
             1572          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I);
             1573          (v) the tax imposed by Subsection (2)(e)(ii)(A)(I); and
             1574          (vi) the tax imposed by Subsection (2)(e)(iii)(A)(I).
             1575          (b) The following local taxes shall be distributed to a county, city, or town as provided
             1576      in this chapter:
             1577          (i) the tax imposed by Subsection (2)(a)(ii);
             1578          (ii) the tax imposed by Subsection (2)(b)(ii);
             1579          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1580          (iv) the tax imposed by Subsection (2)(e)(ii)(B).
             1581          (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
             1582      state shall receive the county's, city's, or town's proportionate share of the revenues generated
             1583      by the following local taxes as provided in Subsection (3)(c)(ii):
             1584          (A) the local tax described in Subsection (2)(d)(ii); and
             1585          (B) the local tax described in Subsection (2)(e)(iii)(B).
             1586          (ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
             1587      shall determine a county's, city's, or town's proportionate share of the revenues by:
             1588          (A) calculating an amount equal to the population of the unincorporated area of the
             1589      county, city, or town divided by the total population of the state; and
             1590          (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
             1591      amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
             1592      cities, and towns.
             1593          (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for purposes
             1594      of this section shall be derived from the most recent official census or census estimate of the
             1595      United States Census Bureau.
             1596          (B) If a needed population estimate is not available from the United States Census
             1597      Bureau, population figures shall be derived from the estimate from the Utah Population


             1598      Estimates Committee created by executive order of the governor.
             1599          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1600      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1601      through (g):
             1602          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1603          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             1604          (B) for the fiscal year; or
             1605          (ii) $17,500,000.
             1606          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount described
             1607      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Department of
             1608      Natural Resources to:
             1609          (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
             1610      protect sensitive plant and animal species; or
             1611          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1612      act, to political subdivisions of the state to implement the measures described in Subsections
             1613      63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
             1614          (ii) Money transferred to the Department of Natural Resources under Subsection
             1615      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             1616      person to list or attempt to have listed a species as threatened or endangered under the
             1617      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1618          (iii) At the end of each fiscal year:
             1619          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1620      Conservation and Development Fund created in Section 73-10-24 ;
             1621          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1622      Program Subaccount created in Section 73-10c-5 ; and
             1623          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1624      Program Subaccount created in Section 73-10c-5 .
             1625          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in


             1626      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1627      created in Section 4-18-6 .
             1628          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1629      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1630      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water
             1631      rights.
             1632          (ii) At the end of each fiscal year:
             1633          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1634      Conservation and Development Fund created in Section 73-10-24 ;
             1635          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1636      Program Subaccount created in Section 73-10c-5 ; and
             1637          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1638      Program Subaccount created in Section 73-10c-5 .
             1639          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1640      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1641      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1642          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1643      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             1644      Development Fund may also be used to:
             1645          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1646      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1647      quantifying surface and ground water resources and describing the hydrologic systems of an
             1648      area in sufficient detail so as to enable local and state resource managers to plan for and
             1649      accommodate growth in water use without jeopardizing the resource;
             1650          (B) fund state required dam safety improvements; and
             1651          (C) protect the state's interest in interstate water compact allocations, including the
             1652      hiring of technical and legal staff.
             1653          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described


             1654      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1655      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1656          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1657      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount created
             1658      in Section 73-10c-5 for use by the Division of Drinking Water to:
             1659          (i) provide for the installation and repair of collection, treatment, storage, and
             1660      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1661          (ii) develop underground sources of water, including springs and wells; and
             1662          (iii) develop surface water sources.
             1663          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1664      2006, the difference between the following amounts shall be expended as provided in this
             1665      Subsection (5), if that difference is greater than $1:
             1666          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1667      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1668          (ii) $17,500,000.
             1669          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1670          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1671      credits; and
             1672          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1673      restoration.
             1674          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1675      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1676      created in Section 73-10-24 .
             1677          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             1678      remaining difference described in Subsection (5)(a) shall be:
             1679          (A) transferred each fiscal year to the Division of Water Resources as dedicated credits;
             1680      and
             1681          (B) expended by the Division of Water Resources for cloud-seeding projects authorized


             1682      by Title 73, Chapter 15, Modification of Weather.
             1683          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1684      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1685      created in Section 73-10-24 .
             1686          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1687      remaining difference described in Subsection (5)(a) shall be deposited into the Water Resources
             1688      Conservation and Development Fund created in Section 73-10-24 for use by the Division of
             1689      Water Resources for:
             1690          (i) preconstruction costs:
             1691          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1692      26, Bear River Development Act; and
             1693          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1694      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             1695          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1696      Chapter 26, Bear River Development Act;
             1697          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1698      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1699          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             1700      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1701          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             1702      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             1703          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1704      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             1705      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1706      incurred for employing additional technical staff for the administration of water rights.
             1707          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             1708      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             1709      Fund created in Section 73-10-24 .


             1710          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1711      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1712      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             1713      the Transportation Fund created by Section 72-2-102 .
             1714          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies, beginning
             1715      on January 1, 2000, the Division of Finance shall deposit into the Centennial Highway Fund
             1716      Restricted Account created in Section 72-2-118 a portion of the taxes listed under Subsection
             1717      (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable transactions under
             1718      Subsection (1).
             1719          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds have
             1720      been paid off and the highway projects completed that are intended to be paid from revenues
             1721      deposited in the Centennial Highway Fund Restricted Account as determined by the Executive
             1722      Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall
             1723      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion
             1724      of the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate
             1725      on the taxable transactions under Subsection (1).
             1726          (8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
             1727      year 2004-05, the commission shall each year on or before the September 30 immediately
             1728      following the last day of the fiscal year deposit the difference described in Subsection (8)(b) into
             1729      the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is greater
             1730      than $0.
             1731          (b) The difference described in Subsection (8)(a) is equal to the difference between:
             1732          (i) the total amount of the revenues the commission received from sellers collecting the
             1733      taxes described in Subsections (2)(d)(i) and (2)(e)(iii)(A) for the fiscal year immediately
             1734      preceding the September 30 described in Subsection (8)(a); and
             1735          (ii) $7,279,673.
             1736          (9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             1737      Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after July


             1738      1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund Restricted
             1739      Account created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal
             1740      to 8.3% of the revenues collected from the following taxes, which represents a portion of the
             1741      approximately 17% of sales and use tax revenues generated annually by the sales and use tax on
             1742      vehicles and vehicle-related products:
             1743          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1744          (ii) the tax imposed by Subsection (2)(b)(i);
             1745          (iii) the tax imposed by Subsection (2)(c)(i); and
             1746          (iv) the tax imposed by Subsection (2)(e)(ii)(A)(I).
             1747          (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             1748      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             1749      highway projects completed that are intended to be paid from revenues deposited in the
             1750      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             1751      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             1752      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             1753      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             1754      which represents a portion of the approximately 17% of sales and use tax revenues generated
             1755      annually by the sales and use tax on vehicles and vehicle-related products:
             1756          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1757          (ii) the tax imposed by Subsection (2)(b)(i);
             1758          (iii) the tax imposed by Subsection (2)(c)(i); and
             1759          (iv) the tax imposed by Subsection (2)(e)(ii)(A)(I).
             1760          (10) (a) Notwithstanding Subsection (3)(a) and until Subsection (10)(b) applies, the
             1761      Division of Finance shall annually deposit $90,000,000 of the revenues generated by the taxes
             1762      listed under Subsection (3)(a) into the Critical Highway Needs Fund created by Section
             1763      72-2-125 .
             1764          (b) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             1765      Subsections (7) and (9), when the general obligation bonds authorized by Section 63B-16-101


             1766      have been paid off and the highway projects completed that are included in the prioritized
             1767      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             1768      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             1769      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             1770      of 2005 created by Section 72-2-124 .
             1771          Section 6. Section 59-12-104.2 is amended to read:
             1772           59-12-104.2. Exemption for accommodations and services taxed by the Navajo
             1773      Nation.
             1774          (1) As used in this section "tribal taxing area" means the geographical area that:
             1775          (a) is subject to the taxing authority of the Navajo Nation; and
             1776          (b) consists of:
             1777          (i) notwithstanding the issuance of a patent, all land:
             1778          (A) within the limits of an Indian reservation under the jurisdiction of the federal
             1779      government; and
             1780          (B) including any rights-of-way running through the reservation; and
             1781          (ii) all Indian allotments the Indian titles to which have not been extinguished, including
             1782      any rights-of-way running through an Indian allotment.
             1783          (2) (a) Beginning July 1, 2001, amounts paid by or charged to a purchaser for
             1784      accommodations and services described in Subsection 59-12-103 (1)(i) are exempt from the tax
             1785      imposed by Subsection 59-12-103 (2)(a)(i) to the extent permitted under Subsection (2)(b) if:
             1786          (i) the accommodations and services described in Subsection 59-12-103 (1)(i) are
             1787      provided within:
             1788          (A) the state; and
             1789          (B) a tribal taxing area;
             1790          (ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to
             1791      the purchaser for the accommodations and services described in Subsection 59-12-103 (1)(i);
             1792          (iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without regard
             1793      to whether or not the purchaser that pays or is charged for the accommodations and services is


             1794      an enrolled member of the Navajo Nation; and
             1795          (iv) the requirements of Subsection (4) are met.
             1796          (b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for
             1797      accommodations and services described in Subsection (2)(a) are subject to a tax imposed by
             1798      Subsection 59-12-103 (2)(a)(i)(A):
             1799          (i) the seller shall collect and pay to the state the difference described in Subsection (3)
             1800      if that difference is greater than $0; and
             1801          (ii) a person may not require the state to provide a refund, a credit, or similar tax relief
             1802      if the difference described in Subsection (3) is equal to or less than $0.
             1803          (3) The difference described in Subsection (2)(b) is equal to the difference between:
             1804          (a) the amount of tax imposed by Subsection 59-12-103 (2)(a)(i)(A) on the amounts
             1805      paid by or charged to a purchaser for accommodations and services described in Subsection
             1806      59-12-103 (1)(i); less
             1807          (b) the tax imposed and collected by the Navajo Nation on the amounts paid by or
             1808      charged to a purchaser for the accommodations and services described in Subsection
             1809      59-12-103 (1)(i).
             1810          (4) (a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax
             1811      imposed on amounts paid by or charged to a purchaser for accommodations and services
             1812      described in Subsection 59-12-103 (1)(i), any change in the amount of the exemption under
             1813      Subsection (2) as a result of the change in the tax rate is not effective until the first day of the
             1814      calendar quarter after a 90-day period beginning on the date the commission receives notice
             1815      meeting the requirements of Subsection (4)(b) from the Navajo Nation.
             1816          (b) The notice described in Subsection (4)(a) shall state:
             1817          (i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             1818      amounts paid by or charged to a purchaser for accommodations and services described in
             1819      Subsection 59-12-103 (1)(i);
             1820          (ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i); and
             1821          (iii) the new rate of the tax described in Subsection (4)(b)(i).


             1822          (5) Beginning with the 2006 interim, the Revenue and Taxation Interim Committee:
             1823          (a) shall review the exemption provided for in this section one or more times every five
             1824      years;
             1825          (b) shall determine on or before the November interim meeting of the year in which the
             1826      Revenue and Taxation Interim Committee reviews the exemption provided for in this section
             1827      whether the exemption should be:
             1828          (i) continued;
             1829          (ii) modified; or
             1830          (iii) repealed; and
             1831          (c) may review any other issue related to the exemption provided for in this section as
             1832      determined by the Revenue and Taxation Interim Committee.
             1833          Section 7. Section 59-12-108 is amended to read:
             1834           59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
             1835      Certain amounts allocated to local taxing jurisdictions.
             1836          (1) (a) Notwithstanding Section 59-12-107 , a seller that has a tax liability under this
             1837      chapter of $50,000 or more for the previous calendar year shall:
             1838          (i) file a return with the commission:
             1839          (A) monthly on or before the last day of the month immediately following the month for
             1840      which the seller collects a tax under this chapter; and
             1841          (B) for the month for which the seller collects a tax under this chapter; and
             1842          (ii) remit with the return required by Subsection (1)(a)(i) the amount the person is
             1843      required to remit to the commission for each tax, fee, or charge described in Subsection (1)(b):
             1844          (A) if that seller's tax liability under this chapter for the previous calendar year is less
             1845      than $96,000, by any method permitted by the commission; or
             1846          (B) if that seller's tax liability under this chapter for the previous calendar year is
             1847      $96,000 or more, by electronic funds transfer.
             1848          (b) Subsections (1)(a)(i) and (ii) apply to the following taxes, fees, or charges:
             1849          (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;


             1850          (ii) a fee under Section 19-6-716 ;
             1851          (iii) a fee under Section 19-6-805 ;
             1852          (iv) a charge under Section 69-2-5.5 ; or
             1853          (v) a tax under this chapter.
             1854          (c) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63, Chapter 46a,
             1855      Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
             1856      for making same-day payments other than by electronic funds transfer if making payments by
             1857      electronic funds transfer fails.
             1858          (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1859      commission shall establish by rule procedures and requirements for determining the amount a
             1860      seller is required to remit to the commission under this Subsection (1).
             1861          (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
             1862      seller described in Subsection (4) may retain each month the amount allowed by this Subsection
             1863      (2).
             1864          (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
             1865      each month 1.31% of any amounts the seller is required to remit to the commission:
             1866          (i) for a transaction described in Subsection 59-12-103 (1) that is subject to a state tax
             1867      and a local tax imposed in accordance with the following, for the month for which the seller is
             1868      filing a return in accordance with Subsection (1):
             1869          (A) Subsection 59-12-103 (2)(a);
             1870          (B) Subsection 59-12-103 (2)(b);
             1871          (C) Subsection 59-12-103 (2)(d), except for the state tax and the local tax imposed on
             1872      the amounts paid or charged for food and food ingredients in accordance with Subsections
             1873      59-12-103 (2)(d)(i)(C) and (2)(d)(ii); and
             1874          (D) Subsection 59-12-103 (2)(e); and
             1875          (ii) for an agreement sales and use tax.
             1876          (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             1877      retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described


             1878      in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed in
             1879      accordance with Subsection 59-12-103 (2)(c).
             1880          (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
             1881      equal to the sum of:
             1882          (A) 1.31% of any amounts the seller is required to remit to the commission for:
             1883          (I) the state tax and the local tax imposed in accordance with Subsection
             1884      59-12-103 (2)(c);
             1885          (II) the month for which the seller is filing a return in accordance with Subsection (1);
             1886      and
             1887          (III) an agreement sales and use tax; and
             1888          (B) 1.31% of the difference between:
             1889          (I) the amounts the seller would have been required to remit to the commission:
             1890          (Aa) in accordance with Subsection 59-12-103 (2)(a) if the transaction had been subject
             1891      to the state tax and the local tax imposed in accordance with Subsection 59-12-103 (2)(a);
             1892          (Bb) for the month for which the seller is filing a return in accordance with Subsection
             1893      (1); and
             1894          (Cc) for an agreement sales and use tax; and
             1895          (II) the amounts the seller is required to remit to the commission for:
             1896          (Aa) the state tax and the local tax imposed in accordance with Subsection
             1897      59-12-103 (2)(c);
             1898          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             1899      and
             1900          (Cc) an agreement sales and use tax.
             1901          (d) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             1902      retain each month the amount calculated under Subsection (2)(d)(ii) for a transaction described
             1903      in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed on the
             1904      amounts paid or charged for food and food ingredients in accordance with Subsections
             1905      59-12-103 (2)(d)(i)(C) and (2)(d)(ii).


             1906          (ii) For purposes of Subsection (2)(d)(i), the amount a seller may retain is an amount
             1907      equal to the sum of:
             1908          (A) 1.31% of any amounts the seller is required to remit to the commission for:
             1909          (I) the state tax and the local tax imposed on the amounts paid or charged for food and
             1910      food ingredients in accordance with Subsections 59-12-103 (2)(d)(i)(C) and (2)(d)(ii);
             1911          (II) the month for which the seller is filing a return in accordance with Subsection (1);
             1912      and
             1913          (III) an agreement sales and use tax; and
             1914          (B) 1.31% of the difference between:
             1915          (I) the amounts the seller would have been required to remit to the commission:
             1916          (Aa) in accordance with Subsections 59-12-103 (2)(d)(i)(A)(I) and (2)(d)(ii) if the
             1917      transaction had been subject to the state tax and the local tax imposed in accordance with
             1918      Subsections 59-12-103 (2)(d)(i)(A)(I) and (2)(d)(ii);
             1919          (Bb) for the month for which the seller is filing a return in accordance with Subsection
             1920      (1); and
             1921          (Cc) for an agreement sales and use tax; and
             1922          (II) the amounts the seller is required to remit to the commission for:
             1923          (Aa) the state tax and the local tax imposed in accordance with Subsections
             1924      59-12-103 (2)(d)(i)(C) and (2)(d)(ii);
             1925          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             1926      and
             1927          (Cc) an agreement sales and use tax.
             1928          (e) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
             1929      each month 1% of any amounts the seller is required to remit to the commission:
             1930          (i) for the month for which the seller is filing a return in accordance with Subsection
             1931      (1); and
             1932          (ii) under:
             1933          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;


             1934          (B) Subsection 59-12-603 (1)(a)(i)(A); or
             1935          (C) Subsection 59-12-603 (1)(a)(i)(B).
             1936          (3) A state government entity that is required to remit taxes monthly in accordance with
             1937      Subsection (1) may not retain any amount under Subsection (2).
             1938          (4) A seller that has a tax liability under this chapter for the previous calendar year of
             1939      less than $50,000 may:
             1940          (a) voluntarily meet the requirements of Subsection (1); and
             1941          (b) if the seller voluntarily meets the requirements of Subsection (1), retain the amounts
             1942      allowed by Subsection (2).
             1943          (5) Penalties for late payment shall be as provided in Section 59-1-401 .
             1944          (6) (a) [For] Except as provided in Subsection (6)(c), for any amounts required to be
             1945      remitted to the commission under this part, the commission shall each month calculate an
             1946      amount equal to the difference between:
             1947          (i) the total amount retained for that month by all sellers had the percentages listed
             1948      under Subsections (2)(b), (2)(c)(ii), and (2)(d)(ii) been 1.5%; and
             1949          (ii) the total amount retained for that month by all sellers at the percentages listed under
             1950      Subsections (2)(b), (2)(c)(ii), and (2)(d)(ii).
             1951          (b) The commission shall each month allocate the amount calculated under Subsection
             1952      (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
             1953      tax that the commission distributes to each county, city, and town for that month compared to
             1954      the total agreement sales and use tax that the commission distributes for that month to all
             1955      counties, cities, and towns.
             1956          (c) The amount the commission calculates under Subsection (6)(a) may not include an
             1957      amount collected from a tax that:
             1958          (i) the state imposes within a county, city, or town, including the unincorporated area of
             1959      a county; and
             1960          (ii) is not imposed within the entire state.
             1961          Section 8. Section 59-12-601.1 is enacted to read:


             1962     
Part 6. Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act

             1963          59-12-601.1. Title.
             1964          This part is known as the "Tourism, Recreation, Cultural, Convention, and Airport
             1965      Facilities Tax Act."
             1966          Section 9. Section 59-12-602 is amended to read:
             1967           59-12-602. Definitions.
             1968          As used in this part:
             1969          (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
             1970      significance, as defined by the Transportation Commission by rule made in accordance with
             1971      Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             1972          (b) "Airport facility" includes:
             1973          (i) an appurtenance to an airport, including a fixed guideway as defined in Section
             1974      59-12-1702 that provides transportation service to or from the airport;
             1975          (ii) a control tower, including a radar system;
             1976          (iii) a public area of an airport; or
             1977          (iv) a terminal facility.
             1978          [(1)] (2) "Convention facility" means any publicly owned or operated convention
             1979      center, sports arena, or other facility at which conventions, conferences, and other gatherings
             1980      are held and whose primary business or function is to host such conventions, conferences, and
             1981      other gatherings.
             1982          [(2)] (3) "Cultural facility" means any publicly owned or operated museum, theater, art
             1983      center, music hall, or other cultural or arts facility.
             1984          [(3)] (4) "Recreation facility" or "tourist facility" means any publicly owned or operated
             1985      park, campground, marina, dock, golf course, water park, historic park, monument,
             1986      planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
             1987          [(4)] (5) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda
             1988      fountain, or fast-food service where food is prepared for immediate consumption.
             1989          (b) "Restaurant" does not include:


             1990          (i) any retail establishment whose primary business or function is the sale of fuel or
             1991      food items for off-premise, but not immediate, consumption; and
             1992          (ii) a theater that sells food items, but not a dinner theater.
             1993          Section 10. Section 59-12-603 is amended to read:
             1994           59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
             1995      ordinance required -- Advisory board -- Administration -- Collection -- Distribution --
             1996      Enactment or repeal of tax or tax rate change -- Effective date -- Notice requirements.
             1997          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
             1998      part, impose a tax as follows:
             1999          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
             2000      on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
             2001      and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
             2002      vehicle that is being repaired pursuant to a repair or an insurance agreement; and
             2003          (B) beginning on or after January 1, 1999, a county legislative body of any county
             2004      imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
             2005      Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals of
             2006      motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made for
             2007      the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to
             2008      a repair or an insurance agreement;
             2009          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
             2010      sales of the following that are sold by a restaurant:
             2011          (A) prepared food; or
             2012          (B) food and food ingredients; and
             2013          (iii) a county legislative body of a county of the first class may impose a tax of not to
             2014      exceed .5% on charges for the accommodations and services described in Subsection
             2015      59-12-103 (1)(i).
             2016          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
             2017      17-31-5.5 .


             2018          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
             2019      for in Subsections (1)(a)(i) through (iii) may be used for [the purposes of]:
             2020          (i) financing tourism promotion; and
             2021          (ii) the development, operation, and maintenance of [tourist, recreation, cultural, and
             2022      convention facilities as defined in Section 59-12-602 .]:
             2023          (A) an airport facility;
             2024          (B) a convention facility;
             2025          (C) a cultural facility;
             2026          (D) a recreation facility; or
             2027          (E) a tourist facility.
             2028          (b) A county of the first class shall expend at least $450,000 each year of the revenues
             2029      from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
             2030      marketing and ticketing system designed to:
             2031          (i) promote tourism in ski areas within the county by persons that do not reside within
             2032      the state; and
             2033          (ii) combine the sale of:
             2034          (A) ski lift tickets; and
             2035          (B) accommodations and services described in Subsection 59-12-103 (1)(i).
             2036          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
             2037      evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
             2038      Government Bonding Act, or a community development and renewal agency under Title 17C,
             2039      Chapter 1, Part 5, Agency Bonds, to finance [tourism, recreation, cultural, and convention
             2040      facilities.]:
             2041          (a) an airport facility;
             2042          (b) a convention facility;
             2043          (c) a cultural facility;
             2044          (d) a recreation facility; or
             2045          (e) a tourist facility.


             2046          (4) (a) In order to impose the tax under Subsection (1), each county legislative body
             2047      shall [annually] adopt an ordinance imposing the tax.
             2048          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
             2049      same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
             2050      those items and sales described in Subsection (1).
             2051          (c) The name of the county as the taxing agency shall be substituted for that of the state
             2052      where necessary, and an additional license is not required if one has been or is issued under
             2053      Section 59-12-106 .
             2054          (5) In order to maintain in effect its tax ordinance adopted under this part, each county
             2055      legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
             2056      Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
             2057      amendments to Part 1, Tax Collection.
             2058          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
             2059      board in accordance with Section 17-31-8 , the county legislative body of the county of the first
             2060      class shall create a tax advisory board in accordance with this Subsection (6).
             2061          (b) The tax advisory board shall be composed of nine members appointed as follows:
             2062          (i) four members shall be appointed by the county legislative body of the county of the
             2063      first class as follows:
             2064          (A) one member shall be a resident of the unincorporated area of the county;
             2065          (B) two members shall be residents of the incorporated area of the county; and
             2066          (C) one member shall be a resident of the unincorporated or incorporated area of the
             2067      county; and
             2068          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
             2069      towns within the county of the first class appointed by an organization representing all mayors
             2070      of cities and towns within the county of the first class.
             2071          (c) Five members of the tax advisory board constitute a quorum.
             2072          (d) The county legislative body of the county of the first class shall determine:
             2073          (i) terms of the members of the tax advisory board;


             2074          (ii) procedures and requirements for removing a member of the tax advisory board;
             2075          (iii) voting requirements, except that action of the tax advisory board shall be by at least
             2076      a majority vote of a quorum of the tax advisory board;
             2077          (iv) chairs or other officers of the tax advisory board;
             2078          (v) how meetings are to be called and the frequency of meetings; and
             2079          (vi) the compensation, if any, of members of the tax advisory board.
             2080          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
             2081      body of the county of the first class on the expenditure of revenues collected within the county
             2082      of the first class from the taxes described in Subsection (1)(a).
             2083          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
             2084      shall be administered, collected, and enforced in accordance with:
             2085          (A) the same procedures used to administer, collect, and enforce the tax under:
             2086          (I) Part 1, Tax Collection; or
             2087          (II) Part 2, Local Sales and Use Tax Act; and
             2088          (B) Chapter 1, General Taxation Policies.
             2089          (ii) A tax under this part is not subject to Section 59-12-107.1 or Subsections
             2090      59-12-205 (2) through (7).
             2091          (b) Except as provided in Subsection (7)(c):
             2092          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
             2093      commission shall distribute the revenues to the county imposing the tax; and
             2094          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
             2095      according to the distribution formula provided in Subsection (8).
             2096          (c) The commission shall deduct from the distributions under Subsection (7)(b) an
             2097      administrative charge for collecting the tax as provided in Section 59-12-206 .
             2098          (8) The commission shall distribute the revenues generated by the tax under Subsection
             2099      (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
             2100      following formula:
             2101          (a) the commission shall distribute 70% of the revenues based on the percentages


             2102      generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
             2103      the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
             2104          (b) the commission shall distribute 30% of the revenues based on the percentages
             2105      generated by dividing the population of each county collecting a tax under Subsection
             2106      (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
             2107          (9) (a) For purposes of this Subsection (9):
             2108          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             2109      Annexation to County.
             2110          (ii) "Annexing area" means an area that is annexed into a county.
             2111          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
             2112      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             2113      change shall take effect:
             2114          (A) on the first day of a calendar quarter; and
             2115          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2116      the requirements of Subsection (9)(b)(ii) from the county.
             2117          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
             2118          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             2119          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
             2120          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
             2121          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2122      (9)(b)(ii)(A), the rate of the tax.
             2123          (c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             2124      (9)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             2125      first billing period:
             2126          (A) that begins after the effective date of the enactment of the tax or the tax rate
             2127      increase; and
             2128          (B) if the billing period for the transaction begins before the effective date of the
             2129      enactment of the tax or the tax rate increase imposed under Subsection (1).


             2130          (ii) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             2131      (9)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2132      billing period:
             2133          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             2134      and
             2135          (B) if the billing period for the transaction begins before the effective date of the repeal
             2136      of the tax or the tax rate decrease imposed under Subsection (1).
             2137          (iii) Subsections (9)(c)(i) and (ii) apply to transactions subject to a tax under:
             2138          (A) Subsection 59-12-103 (1)(e);
             2139          (B) Subsection 59-12-103 (1)(i); or
             2140          (C) Subsection 59-12-103 (1)(k).
             2141          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
             2142      after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
             2143      tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             2144          (A) on the first day of a calendar quarter; and
             2145          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2146      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             2147          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             2148          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
             2149      repeal, or change in the rate of a tax under this part for the annexing area;
             2150          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             2151          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
             2152          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2153      (9)(d)(ii)(A), the rate of the tax.
             2154          (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             2155      (9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             2156      first billing period:
             2157          (A) that begins after the effective date of the enactment of the tax or the tax rate


             2158      increase; and
             2159          (B) if the billing period for the transaction begins before the effective date of the
             2160      enactment of the tax or the tax rate increase imposed under Subsection (1).
             2161          (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             2162      (9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2163      billing period:
             2164          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             2165      and
             2166          (B) if the billing period for the transaction begins before the effective date of the repeal
             2167      of the tax or the tax rate decrease imposed under Subsection (1).
             2168          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             2169          (A) Subsection 59-12-103 (1)(e);
             2170          (B) Subsection 59-12-103 (1)(i); or
             2171          (C) Subsection 59-12-103 (1)(k).
             2172          Section 11. Section 59-12-1901 is enacted to read:
             2173     
Part 19. County of the Second Class Airport, Highway, and Public

             2174     
Transit Sales and Use Tax Act

             2175          59-12-1901. Title.
             2176          This part is known as the "County of the Second Class Airport, Highway, and Public
             2177      Transit Sales and Use Tax Act."
             2178          Section 12. Section 59-12-1902 is enacted to read:
             2179          59-12-1902. Definitions.
             2180          As used in this part:
             2181          (1) "Airport facility" is as defined in Section 59-12-602 .
             2182          (2) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             2183      Annexation to County.
             2184          (3) "Annexing area" means an area that is annexed into a county.
             2185          (4) "Fixed guideway" is as defined in Section 59-12-1702 .


             2186          (5) "Local highway of regional significance" means a local highway that is a:
             2187          (a) principal arterial highway as defined in Section 72-4-102.5 ;
             2188          (b) minor arterial highway as defined in Section 72-4-102.5 ;
             2189          (c) major collector highway as defined in Section 72-4-102.5 ; or
             2190          (d) minor collector road as defined in Section 72-4-102.5 .
             2191          (6) "Public transit" is as defined in Section 59-12-1502 .
             2192          Section 13. Section 59-12-1903 is enacted to read:
             2193          59-12-1903. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             2194      from the tax -- Administration, collection, and enforcement of tax by commission --
             2195      Administrative fee -- Enactment or repeal of tax or tax rate change -- Annexation --
             2196      Notice.
             2197          (1) (a) Subject to the other provisions of this section and except as provided in
             2198      Subsection (2), beginning on January 1, 2009, a county legislative body of a county of the
             2199      second class may impose a sales and use tax on the transactions:
             2200          (i) described in Subsection 59-12-103 (1); and
             2201          (ii) within the county, including the cities and towns within the county.
             2202          (b) For purposes of Subsection (1)(a), a county legislative body may impose a tax at a
             2203      rate of:
             2204          (i) .10%, to be:
             2205          (A) as determined by the county legislative body, deposited as provided in Subsection
             2206      (4)(c)(i) into the County of the Second Class State Highway Projects Fund created by Section
             2207      72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             2208          (B) as determined by the county legislative body, expended for a project or service
             2209      relating to an airport facility:
             2210          (I) if that airport facility is part of the regional transportation plan of the area
             2211      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2212      and
             2213          (II) for the portion of the project or service that is performed within the county; or


             2214          (C) as determined by the county legislative body, deposited or expended for a
             2215      combination of Subsections (1)(b)(i)(A) and (B); or
             2216          (ii) .25%, to be expended as follows:
             2217          (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
             2218      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             2219      provided in Section 72-2-121.2 ;
             2220          (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
             2221      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             2222      distributed in accordance with Section 72-2-117.5 ; and
             2223          (C) as determined by the county legislative body, .10% to be:
             2224          (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
             2225      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             2226      Section 72-2-121.2 ;
             2227          (II) expended for:
             2228          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
             2229      Highways Act;
             2230          (Bb) a local highway of regional significance; or
             2231          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             2232          (III) expended for a project or service relating to a system for public transit for the
             2233      portion of the project or service that is performed within the county;
             2234          (IV) expended for a project or service relating to a fixed guideway for the portion of
             2235      the project or service that is performed within the county;
             2236          (V) expended for a project or service relating to an airport facility:
             2237          (Aa) if that airport facility is part of the regional transportation plan of the area
             2238      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2239      and
             2240          (Bb) for the portion of the project or service that is performed within the county; or
             2241          (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through


             2242      (V).
             2243          (c) If a county legislative body imposes a tax under this part, the county legislative body
             2244      may not impose a tax under Part 17, County Option Sales and Use Tax for Transportation Act.
             2245          (d) For purposes of this Subsection (1), the location of a transaction shall be determined
             2246      in accordance with Section 59-12-207 .
             2247          (2) (a) A county legislative body may not impose a tax under this part on:
             2248          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             2249      exempt from taxation under Section 59-12-104 ;
             2250          (ii) any amounts paid or charged by a seller that collects a tax under Subsection
             2251      59-12-107 (1)(b); or
             2252          (iii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             2253      ingredients.
             2254          (b) A county legislative body imposing a tax under this part shall impose the tax on
             2255      amounts paid or charged for food and food ingredients if:
             2256          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             2257      food and food ingredients and tangible personal property other than food and food ingredients;
             2258      and
             2259          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             2260      accordance with Subsection 59-12-107 (1)(b).
             2261          (3) To impose a tax under this part, a county legislative body shall obtain approval from
             2262      a majority of the members of the county legislative body.
             2263          (4) (a) Except as provided in Subsection (4)(b) or (c) or (6), the commission shall
             2264      transmit revenues collected within a county from a tax under this part that are required to be
             2265      expended for a purpose described in Subsection (1)(b)(ii)(C):
             2266          (i) to the county legislative body;
             2267          (ii) monthly; and
             2268          (iii) by electronic funds transfer.
             2269          (b) Except as provided in Subsection (6), the commission shall transfer the revenues


             2270      described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
             2271      Chapter 2a, Part 8, Public Transit District Act, if the county legislative body:
             2272          (i) provides written notice to the commission requesting the transfer; and
             2273          (ii) designates the public transit district to which the county legislative body requests
             2274      the commission to transfer the revenues described in Subsection (4)(a).
             2275          (c) Except as provided in Subsection (6), the commission shall deposit revenues
             2276      collected within a county from a tax under this part that:
             2277          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             2278      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             2279          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into
             2280      the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             2281          (iii) a county legislative body determines to expend for a purpose described in
             2282      Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class State Highway
             2283      Projects Fund created by Section 72-2-121.2 if the county legislative body provides written
             2284      notice to the commission requesting the deposit.
             2285          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             2286      collect, and enforce a tax under this part in accordance with:
             2287          (i) the same procedures used to administer, collect, and enforce the tax under:
             2288          (A) Part 1, Tax Collection; or
             2289          (B) Part 2, Local Sales and Use Tax Act; and
             2290          (ii) Chapter 1, General Taxation Policies.
             2291          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
             2292          (6) (a) The commission may retain an amount of tax collected under this part of not to
             2293      exceed the lesser of:
             2294          (i) 1.5%; or
             2295          (ii) an amount equal to the cost to the commission of administering this part.
             2296          (b) Any amount the commission retains under Subsection (6)(a) shall be:
             2297          (i) deposited into the Sales and Use Tax Administrative Fees Account; and


             2298          (ii) used as provided in Subsection 59-12-206 (2).
             2299          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             2300      a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             2301      repeal, or change shall take effect:
             2302          (A) on the first day of a calendar quarter; and
             2303          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2304      the requirements of Subsection (7)(a)(ii) from the county.
             2305          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             2306          (A) that the county will enact, repeal, or change the rate of a tax under this part;
             2307          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             2308          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             2309          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2310      (7)(a)(ii)(A), the rate of the tax.
             2311          (b) (i) For a transaction described in Subsection (7)(b)(iii), if the billing period for the
             2312      transaction begins before the effective date of the enactment of the tax or the tax rate increase
             2313      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             2314      day of the first billing period that begins after the effective date of the enactment of the tax or
             2315      the tax rate increase.
             2316          (ii) For a transaction described in Subsection (7)(b)(iii), if the billing period for the
             2317      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             2318      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             2319      first day of the last billing period that began before the effective date of the repeal of the tax or
             2320      the tax rate decrease.
             2321          (iii) Subsections (7)(b)(i) and (ii) apply to transactions subject to a tax under:
             2322          (A) Subsection 59-12-103 (1)(b);
             2323          (B) Subsection 59-12-103 (1)(c);
             2324          (C) Subsection 59-12-103 (1)(d);
             2325          (D) Subsection 59-12-103 (1)(e);


             2326          (E) Subsection 59-12-103 (1)(f);
             2327          (F) Subsection 59-12-103 (1)(g);
             2328          (G) Subsection 59-12-103 (1)(h);
             2329          (H) Subsection 59-12-103 (1)(i);
             2330          (I) Subsection 59-12-103 (1)(j); or
             2331          (J) Subsection 59-12-103 (1)(k).
             2332          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2333      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2334      described in Subsection (7)(a)(i) takes effect:
             2335          (A) on the first day of a calendar quarter; and
             2336          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2337      rate of the tax under Subsection (7)(a)(i).
             2338          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2339      commission may by rule define the term "catalogue sale."
             2340          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             2341      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             2342      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             2343      effect:
             2344          (A) on the first day of a calendar quarter; and
             2345          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2346      the requirements of Subsection (7)(d)(ii) from the county that annexes the annexing area.
             2347          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             2348          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment,
             2349      repeal, or change in the rate of a tax under this part for the annexing area;
             2350          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             2351          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             2352          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2353      (7)(d)(ii)(A), the rate of the tax.


             2354          (e) (i) For a transaction described in Subsection (7)(e)(iii), if the billing period for the
             2355      transaction begins before the effective date of the enactment of the tax or a tax rate increase
             2356      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             2357      day of the first billing period that begins after the effective date of the enactment of the tax or
             2358      the tax rate increase.
             2359          (ii) For a transaction described in Subsection (7)(e)(iii), if the billing period for the
             2360      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             2361      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             2362      first day of the last billing period that began before the effective date of the repeal of the tax or
             2363      the tax rate decrease.
             2364          (iii) Subsections (7)(e)(i) and (ii) apply to transactions subject to a tax under:
             2365          (A) Subsection 59-12-103 (1)(b);
             2366          (B) Subsection 59-12-103 (1)(c);
             2367          (C) Subsection 59-12-103 (1)(d);
             2368          (D) Subsection 59-12-103 (1)(e);
             2369          (E) Subsection 59-12-103 (1)(f);
             2370          (F) Subsection 59-12-103 (1)(g);
             2371          (G) Subsection 59-12-103 (1)(h);
             2372          (H) Subsection 59-12-103 (1)(i);
             2373          (I) Subsection 59-12-103 (1)(j); or
             2374          (J) Subsection 59-12-103 (1)(k).
             2375          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2376      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2377      described in Subsection (7)(d)(i) takes effect:
             2378          (A) on the first day of a calendar quarter; and
             2379          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2380      rate under Subsection (7)(d)(i).
             2381          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the


             2382      commission may by rule define the term "catalogue sale."
             2383          Section 14. Section 59-12-2001 is enacted to read:
             2384     
Part 20. Supplemental State Sales and Use Tax Act

             2385          59-12-2001. Title.
             2386          This part is known as the "Supplemental State Sales and Use Tax Act."
             2387          Section 15. Section 59-12-2002 is enacted to read:
             2388          59-12-2002. Definitions.
             2389          As used in this part, "public transit district" means a public transit district organized
             2390      under Title 17B, Chapter 2a, Part 8, Public Transit District Act.
             2391          Section 16. Section 59-12-2003 is enacted to read:
             2392          59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
             2393      transit districts.
             2394          (1) Subject to the other provisions of this section and except as provided in Subsection
             2395      (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part within a city,
             2396      town, or the unincorporated area of a county of the first or second class if, on January 1, 2008,
             2397      there is a public transit district within any portion of that county of the first or second class.
             2398          (2) The state may not impose a tax under this part within a county of the first or second
             2399      class if within all of the cities, towns, and the unincorporated area of the county of the first or
             2400      second class there is imposed a sales and use tax of:
             2401          (a) .30% under Section 59-12-501 ;
             2402          (b) .30% under Section 59-12-1001 ; or
             2403          (c) .30% under Section 59-12-1503 .
             2404          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
             2405      rate imposed within a city, town, or the unincorporated area of a county of the first or second
             2406      class is a percentage equal to the difference between:
             2407          (i) .30%; and
             2408          (ii) (A) for a city within the county of the first or second class, the highest tax rate
             2409      imposed within that city under:


             2410          (I) Section 59-12-501 ;
             2411          (II) Section 59-12-1001 ; or
             2412          (III) Section 59-12-1503 ;
             2413          (B) for a town within the county of the first or second class, the highest tax rate
             2414      imposed within that town under:
             2415          (I) Section 59-12-501 ;
             2416          (II) Section 59-12-1001 ; or
             2417          (III) Section 59-12-1503 ; or
             2418          (C) for the unincorporated area of the county of the first or second class, the highest tax
             2419      rate imposed within that unincorporated area under:
             2420          (I) Section 59-12-501 ;
             2421          (II) Section 59-12-1001 ; or
             2422          (III) Section 59-12-1503 .
             2423          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
             2424      a county of the first or second class, the highest tax rate imposed under Section 59-12-501 ,
             2425      59-12-1001 , or 59-12-1503 within that city, town, or unincorporated area of the county of the
             2426      first or second class is .30%, the state may not impose a tax under this part within that city,
             2427      town, or unincorporated area.
             2428          (4) (a) The state may not impose a tax under this part on:
             2429          (i) a transaction described in Subsection 59-12-103 (1)(d);
             2430          (ii) except as provided in Subsection (4)(b), a transaction described in Subsection
             2431      59-12-103 (2)(c); or
             2432          (iii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2433      are exempt from taxation under Section 59-12-104 .
             2434          (b) The state shall impose a tax under this part on amounts paid or charged for food and
             2435      food ingredients if:
             2436          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             2437      food and ingredients and tangible personal property other than food and food ingredients; and


             2438          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             2439      accordance with Subsection 59-12-107 (1)(b).
             2440          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
             2441      accordance with Section 59-12-207 .
             2442          (6) The commission shall distribute the revenues the state collects from the sales and
             2443      use tax under this part, after subtracting amounts a seller retains in accordance with Section
             2444      59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
             2445          (a) within which the state imposes a tax under this part; and
             2446          (b) in proportion to the revenues collected from the sales and use tax under this part
             2447      within each city, town, and unincorporated area within which the state imposes a tax under this
             2448      part.
             2449          Section 17. Section 59-12-2004 is enacted to read:
             2450          59-12-2004. Enactment or repeal of tax -- Effective date -- Administration,
             2451      collection, and enforcement of tax.
             2452          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             2453      imposed under this part shall take effect on the first day of a calendar quarter.
             2454          (2) (a) For a transaction described in Subsection (2)(c), the enactment of a tax or a tax
             2455      rate increase shall take effect on the first day of the first billing period that begins after the
             2456      effective date of the enactment of the tax or the tax rate increase if the billing period for the
             2457      transaction begins before the effective date of the enactment of the tax or the tax rate increase
             2458      under this part.
             2459          (b) For a transaction described in Subsection (2)(c), the repeal of a tax or a tax rate
             2460      decrease shall take effect on the first day of the last billing period that began before the effective
             2461      date of the repeal of the tax or the tax rate decrease if the billing period for the transaction
             2462      begins before the effective date of the repeal of the tax or the tax rate decrease imposed under
             2463      this part.
             2464          (c) Subsections (2)(a) and (b) apply to transactions subject to a tax under:
             2465          (i) Subsection 59-12-103 (1)(b);


             2466          (ii) Subsection 59-12-103 (1)(c);
             2467          (iii) Subsection 59-12-103 (1)(d);
             2468          (iv) Subsection 59-12-103 (1)(e);
             2469          (v) Subsection 59-12-103 (1)(f);
             2470          (vi) Subsection 59-12-103 (1)(g);
             2471          (vii) Subsection 59-12-103 (1)(h);
             2472          (viii) Subsection 59-12-103 (1)(i);
             2473          (ix) Subsection 59-12-103 (1)(j); or
             2474          (x) Subsection 59-12-103 (1)(k).
             2475          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2476      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2477      under this part takes effect:
             2478          (i) on the first day of a calendar quarter; and
             2479          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2480      rate of the tax under this part.
             2481          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2482      commission may by rule define the term "catalogue sale."
             2483          (4) The commission shall administer, collect, and enforce a tax under this part in
             2484      accordance with:
             2485          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             2486      Tax Collection; and
             2487          (b) Chapter 1, General Taxation Policies.
             2488          Section 18. Section 72-2-117.5 is amended to read:
             2489           72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
             2490          (1) As used in this section:
             2491          (a) "Council of governments" means a decision-making body in each county composed
             2492      of the county governing body and the mayors of each municipality in the county.
             2493          (b) "Metropolitan planning organization" has the same meaning as defined in Section


             2494      72-1-208.5 .
             2495          (2) There is created the Local Transportation Corridor Preservation Fund within the
             2496      Transportation Fund.
             2497          (3) The fund shall be funded from the following sources:
             2498          (a) a local option highway construction and transportation corridor preservation fee
             2499      imposed under Section 41-1a-1222 ;
             2500          (b) appropriations made to the fund by the Legislature;
             2501          (c) contributions from other public and private sources for deposit into the fund;
             2502          (d) interest earnings on cash balances;
             2503          (e) all monies collected from rents and sales of real property acquired with fund monies;
             2504          (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             2505      as authorized by Title 63B, Bonds; [and]
             2506          (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii) and
             2507      required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund[.]; and
             2508          (h) sales and use tax revenues required by Section 59-12-1903 to be deposited into the
             2509      fund.
             2510          (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
             2511      are nonlapsing.
             2512          (b) The State Tax Commission shall provide the department with sufficient data for the
             2513      department to allocate the revenues:
             2514          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             2515      construction and transportation corridor preservation fee under Section 41-1a-1222 ; [and]
             2516          (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
             2517      option sales and use tax for transportation[.]; and
             2518          (iii) provided under Subsection (3)(h) to each county of the second class imposing the
             2519      sales and use tax authorized by Section 59-12-1903 .
             2520          (c) The monies allocated under Subsection (4)(b):
             2521          (i) shall be used for the purposes provided in this section for each county; and


             2522          (ii) are allocated to each county as provided in this section:
             2523          (A) with the condition that the state will not be charged for any asset purchased with
             2524      the monies allocated under Subsection (4)(b); and
             2525          (B) are considered a local matching contribution for the purposes described under
             2526      Section 72-2-123 if used on a state highway.
             2527          (d) Administrative costs of the department to implement this section shall be paid from
             2528      the fund.
             2529          (5) (a) The department shall authorize the expenditure of fund monies to allow a
             2530      highway authority to acquire real property or any interests in real property for state, county, and
             2531      municipal highway corridors subject to:
             2532          (i) monies available in the fund to each county under Subsection (4)(b); and
             2533          (ii) the provisions of this section.
             2534          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             2535      section.
             2536          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             2537      under this section but limited to a total of 5% of the purchase price of the property.
             2538          (B) Any additional maintenance cost shall be paid from funds other than under this
             2539      section.
             2540          (C) Revenue generated by any property acquired under this section is excluded from the
             2541      limitations under this Subsection (5)(c)(i).
             2542          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             2543      under this section.
             2544          (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             2545      authority for countywide transportation planning if:
             2546          (i) the county is not included in a metropolitan planning organization;
             2547          (ii) the transportation planning is part of the county's continuing, cooperative, and
             2548      comprehensive process for transportation planning, corridor preservation, right-of-way
             2549      acquisition, and project programming;


             2550          (iii) no more than four years allocation every 20 years to each county is used for
             2551      transportation planning under this Subsection (5)(d); and
             2552          (iv) the county otherwise qualifies to use the fund monies as provided under this
             2553      section.
             2554          (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             2555      authority for transportation corridor planning that is part of the corridor elements of an ongoing
             2556      work program of transportation projects.
             2557          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             2558      direction of:
             2559          (A) the metropolitan planning organization if the county is within the boundaries of a
             2560      metropolitan planning organization; or
             2561          (B) the department if the county is not within the boundaries of a metropolitan planning
             2562      organization.
             2563          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             2564      preserve highway corridors, promote long-term statewide transportation planning, save on
             2565      acquisition costs, and promote the best interests of the state in a manner which minimizes
             2566      impact on prime agricultural land.
             2567          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
             2568      a highway corridor that is right-of-way:
             2569          (A) in a county of the first or second class for a:
             2570          (I) state highway;
             2571          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             2572          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             2573          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             2574          (B) in a county of the third, fourth, fifth, or sixth class for a:
             2575          (I) state highway;
             2576          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             2577          (III) a minor arterial highway as defined in Section 72-4-102.5 ;


             2578          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             2579          (V) a minor collector road as defined in Section 72-4-102.5 .
             2580          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             2581      highway corridor that is primarily a recreational trail as defined under Section 63-11a-101 .
             2582          (b) (i) The department shall develop and implement a program to educate highway
             2583      authorities on the objectives, application process, use, and responsibilities of the Local
             2584      Transportation Corridor Preservation Fund as provided under this section to promote the most
             2585      efficient and effective use of fund monies including priority use on designated high priority
             2586      corridor preservation projects.
             2587          (ii) The department shall develop a model transportation corridor property acquisition
             2588      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             2589      acquire real property or any interests in real property under this section.
             2590          (c) The department shall authorize the expenditure of fund monies after determining
             2591      that the expenditure is being made in accordance with this section from applications that are:
             2592          (i) made by a highway authority;
             2593          (ii) endorsed by the council of governments; and
             2594          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             2595          (7) (a) (i) A council of governments shall establish a council of governments
             2596      endorsement process which includes prioritization and application procedures for use of the
             2597      monies allocated to each county under this section.
             2598          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             2599      endorsement of the preservation project by the:
             2600          (A) metropolitan planning organization if the county is within the boundaries of a
             2601      metropolitan planning organization; or
             2602          (B) the department if the county is not within the boundaries of a metropolitan planning
             2603      organization.
             2604          (b) All fund monies shall be prioritized by each highway authority and council of
             2605      governments based on considerations, including:


             2606          (i) areas with rapidly expanding population;
             2607          (ii) the willingness of local governments to complete studies and impact statements that
             2608      meet department standards;
             2609          (iii) the preservation of corridors by the use of local planning and zoning processes;
             2610          (iv) the availability of other public and private matching funds for a project;
             2611          (v) the cost-effectiveness of the preservation projects;
             2612          (vi) long and short-term maintenance costs for property acquired; and
             2613          (vii) whether the transportation corridor is included as part of:
             2614          (A) the county and municipal master plan; and
             2615          (B) (I) the statewide long range plan; or
             2616          (II) the regional transportation plan of the area metropolitan planning organization if
             2617      one exists for the area.
             2618          (c) The council of governments shall:
             2619          (i) establish a priority list of highway corridor preservation projects within the county;
             2620          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
             2621      approval; and
             2622          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
             2623      members of the county legislative body.
             2624          (d) A county's council of governments may only submit one priority list described in
             2625      Subsection (7)(c)(i) per calendar year.
             2626          (e) A county legislative body may only consider and approve one priority list described
             2627      in Subsection (7)(c)(i) per calendar year.
             2628          (8) (a) Unless otherwise provided by written agreement with another highway authority,
             2629      the highway authority that holds the deed to the property is responsible for maintenance of the
             2630      property.
             2631          (b) The transfer of ownership for property acquired under this section from one
             2632      highway authority to another shall include a recorded deed for the property and a written
             2633      agreement between the highway authorities.


             2634          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             2635      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             2636      funds under this section.
             2637          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             2638      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             2639      bonds or other obligations.
             2640          (10) (a) A highway authority may not apply for monies under this section to purchase a
             2641      right-of-way for a state highway unless the highway authority has:
             2642          (i) a transportation corridor property acquisition policy or ordinance in effect that meets
             2643      federal requirements for the acquisition of real property or any interests in real property under
             2644      this section; and
             2645          (ii) an access management policy or ordinance in effect that meets the requirements
             2646      under Subsection 72-2-117 (9).
             2647          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             2648      written agreement with the department for the acquisition of real property or any interests in
             2649      real property under this section.
             2650          Section 19. Section 72-2-121 is amended to read:
             2651           72-2-121. County of the First Class State Highway Projects Fund.
             2652          (1) There is created a special revenue fund entitled the County of the First Class State
             2653      Highway Projects Fund.
             2654          (2) The fund consists of monies generated from the following revenue sources:
             2655          (a) any voluntary contributions received for new construction, major renovations, and
             2656      improvements to state highways within a county of the first class;
             2657          (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)(ii)
             2658      deposited in or transferred to the fund;
             2659          (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii) and
             2660      required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund; and
             2661          (d) a portion of the local option highway construction and transportation corridor


             2662      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
             2663      transferred to the fund.
             2664          (3) (a) The fund shall earn interest.
             2665          (b) All interest earned on fund monies shall be deposited into the fund.
             2666          (4) The executive director may use fund monies only:
             2667          (a) to pay debt service and bond issuance costs for bonds issued under Section
             2668      63B-16-102 ; and
             2669          (b) for right-of-way acquisition, new construction, major renovations, and
             2670      improvements to state highways within a county of the first class and to pay any debt service
             2671      and bond issuance costs related to those projects.
             2672          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
             2673      fund and bond proceeds from bonds issued under Section 63B-16-102 are considered a local
             2674      matching contribution for the purposes described under Section 72-2-123 .
             2675          (6) The additional administrative costs of the department to administer this fund shall be
             2676      paid from the monies in the fund.
             2677          Section 20. Section 72-2-121.2 is enacted to read:
             2678          72-2-121.2. County of the Second Class State Highway Projects Fund.
             2679          (1) As used in this section, "fund" means the County of the Second Class State
             2680      Highway Projects Fund created by this section.
             2681          (2) There is created within the Transportation Fund a special revenue fund known as
             2682      the County of the Second Class State Highway Projects Fund.
             2683          (3) The fund shall be funded by monies collected from:
             2684          (a) any voluntary contributions the department receives for new construction, major
             2685      renovations, and improvements to state highways within a county of the second class; and
             2686          (b) the sales and use tax described in:
             2687          (i) Subsection 59-12-1903 (1)(b)(i);
             2688          (ii) Subsection 59-12-1903 (1)(b)(ii)(A); or
             2689          (iii) Subsection 59-12-1903 (1)(b)(ii)(C)(I) as determined by the county legislative body


             2690      of the county of the second class.
             2691          (4) The department shall make a separate accounting for:
             2692          (a) the revenues described in Subsection (3); and
             2693          (b) each county of the second class for which revenues are deposited into the fund.
             2694          (5) (a) The fund shall earn interest.
             2695          (b) Interest earned on fund monies shall be deposited into the fund.
             2696          (6) The executive director may use fund monies only:
             2697          (a) for right-of-way acquisition, new construction, major renovations, and
             2698      improvements to state highways within a county of the second class in an amount that does not
             2699      exceed the amounts deposited for or allocated to that county of the second class in accordance
             2700      with this section;
             2701          (b) to pay any debt service and bond issuance costs related to a purpose described in
             2702      Subsection (6)(a) in an amount that does not exceed the amounts deposited for or allocated to
             2703      that county of the second class described in Subsection (6)(a) in accordance with this section;
             2704      and
             2705          (c) to pay the costs of the department to administer the fund in an amount not to exceed
             2706      interest earned by the fund monies.
             2707          (7) If interest remains in the fund after the executive director pays the costs of the
             2708      department to administer the fund, the interest shall be:
             2709          (a) allocated to each county of the second class for which revenues are deposited into
             2710      the fund in proportion to the deposits made into the fund for that county of the second class;
             2711      and
             2712          (b) expended for the purposes described in Subsection (6).
             2713          (8) Revenues described in Subsection (3)(b) that are deposited into the fund are
             2714      considered to be a local matching contribution for the purposes described in Section 72-2-123 .
             2715          Section 21. Section 72-10-102 is amended to read:
             2716           72-10-102. Definitions.
             2717          As used in this chapter:


             2718          (1) "Acrobatics" means the intentional maneuvers of an aircraft not necessary to air
             2719      navigation.
             2720          (2) "Aeronautics" means transportation by aircraft, air instruction, the operation, repair,
             2721      or maintenance of aircraft, and the design, operation, repair, or maintenance of airports, or
             2722      other air navigation facilities.
             2723          (3) "Aeronautics instructor" means any individual engaged in giving or offering to give
             2724      instruction in aeronautics, flying, or ground subjects, either with or without:
             2725          (a) compensation or other reward;
             2726          (b) advertising the occupation;
             2727          (c) calling his facilities an air school, or any equivalent term; or
             2728          (d) employing or using other instructors.
             2729          (4) "Aircraft" means any contrivance now known or in the future invented, used, or
             2730      designed for navigation of or flight in the air.
             2731          (5) "Air instruction" means the imparting of aeronautical information by any aviation
             2732      instructor or in any air school or flying club.
             2733          (6) "Airport" means any area of land, water, or both, that:
             2734          (a) is used or is made available for landing and takeoff;
             2735          (b) provides facilities for the shelter, supply, and repair of aircraft, and handling of
             2736      passengers and cargo; [and]
             2737          (c) meets the minimum requirements established by the division as to size and design,
             2738      surface, marking, equipment, and operation; and
             2739          (d) includes all areas shown as part of the airport in the current airport layout plan as
             2740      approved by the Federal Aviation Administration.
             2741          (7) "Airport authority" means a political subdivision of the state, other than a county or
             2742      municipality, that is authorized by statute to operate an airport.
             2743          (8) "Airport operator" means a municipality, county, or airport authority that owns or
             2744      operates a commercial airport.
             2745          (9) (a) "Airport revenue" means:


             2746          (i) all fees, charges, rents, or other payments received by or accruing to an airport
             2747      operator for any of the following reasons:
             2748          (A) revenue from air carriers, tenants, lessees, purchasers of airport properties, airport
             2749      permittees making use of airport property and services, and other parties;
             2750          (B) revenue received from the activities of others or the transfer of rights to others
             2751      relating to the airport, including revenue received:
             2752          (I) for the right to conduct an activity on the airport or to use or occupy airport
             2753      property;
             2754          (II) for the sale, transfer, or disposition of airport real or personal property, or any
             2755      interest in that property, including transfer through a condemnation proceeding;
             2756          (III) for the sale of, or the sale or lease of rights in, mineral, natural, or agricultural
             2757      products or water owned by the airport operator to be taken from the airport; and
             2758          (IV) for the right to conduct an activity on, or for the use or disposition of, real or
             2759      personal property or any interest in real or personal property owned or controlled by the airport
             2760      operator and used for an airport-related purpose but not located on the airport; or
             2761          (C) revenue received from activities conducted by the airport operator whether on or
             2762      off the airport, which is directly connected to the airport operator's ownership or operation of
             2763      the airport; and
             2764          (ii) state and local taxes on aviation fuel.
             2765          (b) "Airport revenue" does not include amounts received by an airport operator as
             2766      passenger facility fees pursuant to 49 U.S.C. Sec. 40117.
             2767          [(8)] (10) "Air school" means any person engaged in giving, offering to give, or
             2768      advertising, representing, or holding himself out as giving, with or without compensation or
             2769      other reward, instruction in aeronautics, flying, or ground subjects, or in more than one of these
             2770      subjects.
             2771          [(9)] (11) "Airworthiness" means conformity with requirements prescribed by the
             2772      Federal Aviation Administration regarding the structure or functioning of aircraft, engine, parts,
             2773      or accessories.


             2774          [(10)] (12) "Antique aircraft" means a civil aircraft that is:
             2775          (a) 30 years old or older, calculated as to include the current year;
             2776          (b) primarily a collector's item and used solely for recreational or display purposes;
             2777          (c) not used for daily or regular transportation; and
             2778          (d) not used for commercial operations.
             2779          [(11)] (13) "Civil aircraft" means any aircraft other than a public aircraft.
             2780          [(12)] (14) "Commercial aircraft" means aircraft used for commercial purposes.
             2781          [(13)] (15) "Commercial airport" means a landing area, landing strip, or airport that
             2782      may be used for commercial operations.
             2783          [(14)] (16) "Commercial flight operator" means a person who conducts commercial
             2784      operations.
             2785          [(15)] (17) "Commercial operations" means:
             2786          (a) any operations of an aircraft for compensation or hire or any services performed
             2787      incidental to the operation of any aircraft for which a fee is charged or compensation is
             2788      received, including the servicing, maintaining, and repairing of aircraft, the rental or charter of
             2789      aircraft, the operation of flight or ground schools, the operation of aircraft for the application or
             2790      distribution of chemicals or other substances, and the operation of aircraft for hunting and
             2791      fishing; or
             2792          (b) the brokering or selling of any of these services; but
             2793          (c) does not include any operations of aircraft as common carriers certificated by the
             2794      federal government or the services incidental to those operations.
             2795          [(16)] (18) "Dealer" means any person who is actively engaged in the business of flying
             2796      for demonstration purposes, or selling or exchanging aircraft, and who has an established place
             2797      of business.
             2798          [(17)] (19) "Division" means the Operations Division in the Department of
             2799      Transportation, created in Section 72-1-204 .
             2800          [(18)] (20) "Experimental aircraft" means:
             2801          (a) any aircraft designated by the Federal Aviation Administration or the military as


             2802      experimental and used solely for the purpose of experiments, or tests regarding the structure or
             2803      functioning of aircraft, engines, or their accessories; and
             2804          (b) any aircraft designated by the Federal Aviation Administration as:
             2805          (i) being custom or amateur built; and
             2806          (ii) used for recreational, educational, or display purposes.
             2807          [(19)] (21) "Flight" means any kind of locomotion by aircraft while in the air.
             2808          [(20)] (22) "Flying club" means five or more persons who for neither profit nor reward
             2809      own, lease, or use one or more aircraft for the purpose of instruction, pleasure, or both.
             2810          [(21)] (23) "Glider" means an aircraft heavier than air, similar to an airplane, but
             2811      without a power plant.
             2812          [(22)] (24) "Mechanic" means a person who constructs, repairs, adjusts, inspects, or
             2813      overhauls aircraft, engines, or accessories.
             2814          [(23)] (25) "Parachute jumper" means any person who has passed the required test for
             2815      jumping with a parachute from an aircraft, and has passed an examination showing that he
             2816      possesses the required physical and mental qualifications for the jumping.
             2817          [(24)] (26) "Parachute rigger" means any person who has passed the required test for
             2818      packing, repairing, and maintaining parachutes.
             2819          [(25)] (27) "Passenger aircraft" means aircraft used for transporting persons, in addition
             2820      to the pilot or crew, with or without their necessary personal belongings.
             2821          [(26)] (28) "Person" means any individual, corporation, limited liability company, or
             2822      association of individuals.
             2823          [(27)] (29) "Pilot" means any person who operates the controls of an aircraft while
             2824      in-flight.
             2825          [(28)] (30) "Primary glider" means any glider that has a gliding angle of less than ten to
             2826      one.
             2827          [(29)] (31) "Public aircraft" means an aircraft used exclusively in the service of any
             2828      government or of any political subdivision, including the government of the United States, of
             2829      the District of Columbia, and of any state, territory, or insular possession of the United States,


             2830      but not including any government-owned aircraft engaged in carrying persons or goods for
             2831      commercial purposes.
             2832          [(30)] (32) "Reckless flying" means the operation or piloting of any aircraft recklessly,
             2833      or in a manner as to endanger the property, life, or body of any person, due regard being given
             2834      to the prevailing weather conditions, field conditions, and to the territory being flown over.
             2835          [(31)] (33) "Registration number" means the number assigned by the Federal Aviation
             2836      Administration to any aircraft, whether or not the number includes a letter or letters.
             2837          [(32)] (34) "Secondary glider" means any glider that has a gliding angle between ten to
             2838      one and 16 to one, inclusive.
             2839          [(33)] (35) "Soaring glider" means any glider that has a gliding angle of more than 16 to
             2840      one.
             2841          Section 22. Section 72-10-215 is enacted to read:
             2842          72-10-215. Restrictions on use of airport revenue to finance a fixed guideway.
             2843          An airport operator may not use airport revenue to contribute to the cost of
             2844      constructing, equipping, maintaining, or operating any portion of a fixed guideway as defined in
             2845      Section 59-12-1702 .
             2846          Section 23. Repealer.
             2847          This bill repeals:
             2848          Section 59-12-601, Purpose statement.
             2849          Section 24. Effective dates.
             2850          (1) Except as provided in Subsection (2), this bill takes effect on May 5, 2008.
             2851          (2) The amendments to the following sections take effect on July 1, 2008:
             2852          (a) Section 41-1a-1222 ;
             2853          (b) Section 72-2-117.5 ; and
             2854          (c) Section 72-2-121 .
             2855          Section 25. Coordinating S.B. 245 with H.B. 206 -- Substantive and technical
             2856      amendments.
             2857          If this S.B. 245 and H.B. 206, Tax Amendments, both pass, it is the intent of the


             2858      Legislature that the Office of Legislative Research and General Counsel, in preparing the Utah
             2859      Code database for publication:
             2860          (1) modify Section 59-12-1903 to read:
             2861          " 59-12-1903 . Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             2862      from the tax -- Administration, collection, and enforcement of tax by commission --
             2863      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             2864          (1) (a) Subject to the other provisions of this section and except as provided in
             2865      Subsection (2), beginning on January 1, 2009, a county legislative body of a county of the
             2866      second class may impose a sales and use tax on the transactions:
             2867          (i) described in Subsection 59-12-103 (1); and
             2868          (ii) within the county, including the cities and towns within the county.
             2869          (b) For purposes of Subsection (1)(a), a county legislative body may impose a tax at a
             2870      rate of:
             2871          (i) .10%, to be:
             2872          (A) as determined by the county legislative body, deposited as provided in Subsection
             2873      (4)(c)(i) into the County of the Second Class State Highway Projects Fund created by Section
             2874      72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             2875          (B) as determined by the county legislative body, expended for a project or service
             2876      relating to an airport facility:
             2877          (I) if that airport facility is part of the regional transportation plan of the area
             2878      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2879      and
             2880          (II) for the portion of the project or service that is performed within the county; or
             2881          (C) as determined by the county legislative body, deposited or expended for a
             2882      combination of Subsections (1)(b)(i)(A) and (B); or
             2883          (ii) .25%, to be expended as follows:
             2884          (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
             2885      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as


             2886      provided in Section 72-2-121.2 ;
             2887          (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
             2888      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             2889      distributed in accordance with Section 72-2-117.5 ; and
             2890          (C) as determined by the county legislative body, .10% to be:
             2891          (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
             2892      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             2893      Section 72-2-121.2 ;
             2894          (II) expended for:
             2895          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
             2896      Highways Act;
             2897          (Bb) a local highway of regional significance; or
             2898          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             2899          (III) expended for a project or service relating to a system for public transit for the
             2900      portion of the project or service that is performed within the county;
             2901          (IV) expended for a project or service relating to a fixed guideway for the portion of
             2902      the project or service that is performed within the county;
             2903          (V) expended for a project or service relating to an airport facility:
             2904          (Aa) if that airport facility is part of the regional transportation plan of the area
             2905      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2906      and
             2907          (Bb) for the portion of the project or service that is performed within the county; or
             2908          (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
             2909      (V).
             2910          (c) If a county legislative body imposes a tax under this part, the county legislative body
             2911      may not impose a tax under Part 17, County Option Sales and Use Tax for Transportation Act.
             2912          (d) For purposes of this Subsection (1), the location of a transaction shall be determined
             2913      in accordance with Sections 59-12-211 through 59-12-215 .


             2914          (2) (a) A county legislative body may not impose a tax under this part on:
             2915          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             2916      exempt from taxation under Section 59-12-104 ; or
             2917          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             2918      ingredients.
             2919          (b) A county legislative body imposing a tax under this part shall impose the tax on
             2920      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             2921      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             2922      property other than food and food ingredients.
             2923          (3) To impose a tax under this part, a county legislative body shall obtain approval from
             2924      a majority of the members of the county legislative body.
             2925          (4) (a) Except as provided in Subsection (4)(b) or (c) or (6), the commission shall
             2926      transmit revenues collected within a county from a tax under this part that are required to be
             2927      expended for a purpose described in Subsection (1)(b)(ii)(C):
             2928          (i) to the county legislative body;
             2929          (ii) monthly; and
             2930          (iii) by electronic funds transfer.
             2931          (b) Except as provided in Subsection (6), the commission shall transfer the revenues
             2932      described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
             2933      Chapter 2a, Part 8, Public Transit District Act, if the county legislative body:
             2934          (i) provides written notice to the commission requesting the transfer; and
             2935          (ii) designates the public transit district to which the county legislative body requests
             2936      the commission to transfer the revenues described in Subsection (4)(a).
             2937          (c) Except as provided in Subsection (6), the commission shall deposit revenues
             2938      collected within a county from a tax under this part that:
             2939          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             2940      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             2941          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into


             2942      the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             2943          (iii) a county legislative body determines to expend for a purpose described in
             2944      Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class State Highway
             2945      Projects Fund created by Section 72-2-121.2 if the county legislative body provides written
             2946      notice to the commission requesting the deposit.
             2947          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             2948      collect, and enforce a tax under this part in accordance with:
             2949          (i) the same procedures used to administer, collect, and enforce the tax under:
             2950          (A) Part 1, Tax Collection; or
             2951          (B) Part 2, Local Sales and Use Tax Act; and
             2952          (ii) Chapter 1, General Taxation Policies.
             2953          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             2954          (6) (a) The commission may retain an amount of tax collected under this part of not to
             2955      exceed the lesser of:
             2956          (i) 1.50%; or
             2957          (ii) an amount equal to the cost to the commission of administering this part.
             2958          (b) Any amount the commission retains under Subsection (6)(a) shall be:
             2959          (i) deposited into the Sales and Use Tax Administrative Fees Account; and
             2960          (ii) used as provided in Subsection 59-12-206 (2).
             2961          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             2962      a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             2963      repeal, or change shall take effect:
             2964          (A) on the first day of a calendar quarter; and
             2965          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2966      the requirements of Subsection (7)(a)(ii) from the county.
             2967          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             2968          (A) that the county will enact, repeal, or change the rate of a tax under this part;
             2969          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);


             2970          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             2971          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2972      (7)(a)(ii)(A), the rate of the tax.
             2973          (b) (i) If the billing period for a transaction begins before the effective date of the
             2974      enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
             2975      tax rate increase shall take effect on the first day of the first billing period that begins after the
             2976      effective date of the enactment of the tax or the tax rate increase.
             2977          (ii) If the billing period for a transaction begins before the effective date of the repeal of
             2978      the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             2979      decrease shall take effect on the first day of the last billing period that began before the effective
             2980      date of the repeal of the tax or the tax rate decrease.
             2981          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2982      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2983      described in Subsection (7)(a)(i) takes effect:
             2984          (A) on the first day of a calendar quarter; and
             2985          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2986      rate of the tax under Subsection (7)(a)(i).
             2987          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2988      commission may by rule define the term "catalogue sale."
             2989          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             2990      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             2991      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             2992      effect:
             2993          (A) on the first day of a calendar quarter; and
             2994          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2995      the requirements of Subsection (7)(d)(ii) from the county that annexes the annexing area.
             2996          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             2997          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment,


             2998      repeal, or change in the rate of a tax under this part for the annexing area;
             2999          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             3000          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             3001          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             3002      (7)(d)(ii)(A), the rate of the tax.
             3003          (e) (i) If the billing period for a transaction begins before the effective date of the
             3004      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             3005      rate increase shall take effect on the first day of the first billing period that begins after the
             3006      effective date of the enactment of the tax or the tax rate increase.
             3007          (ii) If the billing period for a transaction begins before the effective date of the repeal of
             3008      the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             3009      decrease shall take effect on the first day of the last billing period that began before the effective
             3010      date of the repeal of the tax or the tax rate decrease.
             3011          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             3012      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             3013      described in Subsection (7)(d)(i) takes effect:
             3014          (A) on the first day of a calendar quarter; and
             3015          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             3016      rate under Subsection (7)(d)(i).
             3017          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             3018      commission may by rule define the term "catalogue sale".";
             3019          (2) insert as newly enacted provisions into the Utah Code database, the following
             3020      sections:
             3021          " 59-12-1904 . Seller or certified service provider reliance on commission information or
             3022      certain systems.
             3023          A seller or certified service provider is not liable for failing to collect a tax at a tax rate
             3024      imposed under this part if:
             3025