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S.B. 124

             1     

SALES AND USE TAX - DEFINITIONS OF

             2     
PERMANENTLY ATTACHED TO REAL PROPERTY

             3     
AND TANGIBLE PERSONAL PROPERTY

             4     
2008 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Howard A. Stephenson

             7     
House Sponsor: Wayne A. Harper

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill amends the Sales and Use Tax Act relating to definitions.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends the definitions of:
             15              .    "permanently attached to real property"; and
             16              .    "tangible personal property"; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill has retrospective operation to January 1, 2008.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-12-102 is amended to read:


             28           59-12-102. Definitions.
             29          As used in this chapter:
             30          (1) (a) "Admission or user fees" includes season passes.
             31          (b) "Admission or user fees" does not include annual membership dues to private
             32      organizations.
             33          (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
             34      Section 59-12-102.1 .
             35          (3) "Agreement combined tax rate" means the sum of the tax rates:
             36          (a) listed under Subsection (4); and
             37          (b) that are imposed within a local taxing jurisdiction.
             38          (4) "Agreement sales and use tax" means a tax imposed under:
             39          (a) Subsection 59-12-103 (2)(a)(i);
             40          (b) Subsection 59-12-103 (2)(b)(i);
             41          (c) Subsection 59-12-103 (2)(c)(i);
             42          (d) Subsection 59-12-103 (2)(d)(i);
             43          (e) Subsection 59-12-103 (2)(e)(ii)(A);
             44          (f) Subsection 59-12-103 (2)(e)(iii)(A);
             45          (g) Section 59-12-204 ;
             46          (h) Section 59-12-401 ;
             47          (i) Section 59-12-402 ;
             48          (j) Section 59-12-501 ;
             49          (k) Section 59-12-502 ;
             50          (l) Section 59-12-703 ;
             51          (m) Section 59-12-802 ;
             52          (n) Section 59-12-804 ;
             53          (o) Section 59-12-1001 ;
             54          (p) Section 59-12-1102 ;
             55          (q) Section 59-12-1302 ;
             56          (r) Section 59-12-1402 ;
             57          (s) Section 59-12-1503 ; or
             58          (t) Section 59-12-1703 .


             59          (5) "Aircraft" is as defined in Section 72-10-102 .
             60          (6) "Alcoholic beverage" means a beverage that:
             61          (a) is suitable for human consumption; and
             62          (b) contains .5% or more alcohol by volume.
             63          (7) "Area agency on aging" is as defined in Section 62A-3-101 .
             64          (8) "Assisted amusement device" means an amusement device, skill device, or ride
             65      device that is started and stopped by an individual:
             66          (a) who is not the purchaser or renter of the right to use or operate the amusement
             67      device, skill device, or ride device; and
             68          (b) at the direction of the seller of the right to use the amusement device, skill device,
             69      or ride device.
             70          (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
             71      washing of tangible personal property if the cleaning or washing labor is primarily performed
             72      by an individual:
             73          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             74      property; and
             75          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             76      property.
             77          (10) "Authorized carrier" means:
             78          (a) in the case of vehicles operated over public highways, the holder of credentials
             79      indicating that the vehicle is or will be operated pursuant to both the International Registration
             80      Plan and the International Fuel Tax Agreement;
             81          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             82      certificate or air carrier's operating certificate; or
             83          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             84      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             85          (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
             86      following that is used as the primary source of energy to produce fuel or electricity:
             87          (i) material from a plant or tree; or
             88          (ii) other organic matter that is available on a renewable basis, including:
             89          (A) slash and brush from forests and woodlands;


             90          (B) animal waste;
             91          (C) methane produced:
             92          (I) at landfills; or
             93          (II) as a byproduct of the treatment of wastewater residuals;
             94          (D) aquatic plants; and
             95          (E) agricultural products.
             96          (b) "Biomass energy" does not include:
             97          (i) black liquor;
             98          (ii) treated woods; or
             99          (iii) biomass from municipal solid waste other than methane produced:
             100          (A) at landfills; or
             101          (B) as a byproduct of the treatment of wastewater residuals.
             102          (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             103      property if:
             104          (i) one or more of the items of tangible personal property is food and food ingredients;
             105      and
             106          (ii) the items of tangible personal property are:
             107          (A) distinct and identifiable; and
             108          (B) sold for one price that is not itemized.
             109          (b) "Bundled transaction" does not include the sale of tangible personal property if the
             110      sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
             111      tangible personal property included in the transaction.
             112          (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
             113      and identifiable does not include:
             114          (i) packaging that:
             115          (A) accompanies the sale of the tangible personal property; and
             116          (B) is incidental or immaterial to the sale of the tangible personal property;
             117          (ii) tangible personal property provided free of charge with the purchase of another
             118      item of tangible personal property; or
             119          (iii) an item of tangible personal property included in the definition of "purchase
             120      price."


             121          (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
             122      provided free of charge with the purchase of another item of tangible personal property if the
             123      sales price of the purchased item of tangible personal property does not vary depending on the
             124      inclusion of the tangible personal property provided free of charge.
             125          (13) "Certified automated system" means software certified by the governing board of
             126      the agreement in accordance with Section 59-12-102.1 that:
             127          (a) calculates the agreement sales and use tax imposed within a local taxing
             128      jurisdiction:
             129          (i) on a transaction; and
             130          (ii) in the states that are members of the agreement;
             131          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             132      member of the agreement; and
             133          (c) maintains a record of the transaction described in Subsection (13)(a)(i).
             134          (14) "Certified service provider" means an agent certified:
             135          (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
             136      and
             137          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             138      use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
             139      own purchases.
             140          (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
             141      suitable for general use.
             142          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             143      commission shall make rules:
             144          (i) listing the items that constitute "clothing"; and
             145          (ii) that are consistent with the list of items that constitute "clothing" under the
             146      agreement.
             147          (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             148          (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             149      fuels that does not constitute industrial use under Subsection (42) or residential use under
             150      Subsection (80).
             151          (18) (a) "Common carrier" means a person engaged in or transacting the business of


             152      transporting passengers, freight, merchandise, or other property for hire within this state.
             153          (b) (i) "Common carrier" does not include a person who, at the time the person is
             154      traveling to or from that person's place of employment, transports a passenger to or from the
             155      passenger's place of employment.
             156          (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
             157      Utah Administrative Rulemaking Act, the commission may make rules defining what
             158      constitutes a person's place of employment.
             159          (19) "Component part" includes:
             160          (a) poultry, dairy, and other livestock feed, and their components;
             161          (b) baling ties and twine used in the baling of hay and straw;
             162          (c) fuel used for providing temperature control of orchards and commercial
             163      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             164      off-highway type farm machinery; and
             165          (d) feed, seeds, and seedlings.
             166          (20) "Computer" means an electronic device that accepts information:
             167          (a) (i) in digital form; or
             168          (ii) in a form similar to digital form; and
             169          (b) manipulates that information for a result based on a sequence of instructions.
             170          (21) "Computer software" means a set of coded instructions designed to cause:
             171          (a) a computer to perform a task; or
             172          (b) automatic data processing equipment to perform a task.
             173          (22) "Construction materials" means any tangible personal property that will be
             174      converted into real property.
             175          (23) "Delivered electronically" means delivered to a purchaser by means other than
             176      tangible storage media.
             177          (24) (a) "Delivery charge" means a charge:
             178          (i) by a seller of:
             179          (A) tangible personal property; or
             180          (B) services; and
             181          (ii) for preparation and delivery of the tangible personal property or services described
             182      in Subsection (24)(a)(i) to a location designated by the purchaser.


             183          (b) "Delivery charge" includes a charge for the following:
             184          (i) transportation;
             185          (ii) shipping;
             186          (iii) postage;
             187          (iv) handling;
             188          (v) crating; or
             189          (vi) packing.
             190          (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
             191          (i) a bridge;
             192          (ii) a crown if that crown covers at least 75% of a tooth structure;
             193          (iii) a denture;
             194          (iv) an implant;
             195          (v) an orthodontic device designed to:
             196          (A) retain the position or spacing of teeth; and
             197          (B) replace a missing tooth;
             198          (vi) a partial denture; or
             199          (vii) a device similar to Subsections (25)(a)(i) through (vi).
             200          (b) "Dental prosthesis" does not include an appliance or device, other than a device
             201      described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
             202      apply force to the teeth and their supporting structures to:
             203          (i) produce changes in their relationship to each other; and
             204          (ii) control their growth and development.
             205          (26) "Dietary supplement" means a product, other than tobacco, that:
             206          (a) is intended to supplement the diet;
             207          (b) contains one or more of the following dietary ingredients:
             208          (i) a vitamin;
             209          (ii) a mineral;
             210          (iii) an herb or other botanical;
             211          (iv) an amino acid;
             212          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             213      dietary intake; or


             214          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             215      described in Subsections (26)(b)(i) through (v);
             216          (c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
             217          (A) tablet form;
             218          (B) capsule form;
             219          (C) powder form;
             220          (D) softgel form;
             221          (E) gelcap form; or
             222          (F) liquid form; or
             223          (ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
             224      a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
             225          (A) as conventional food; and
             226          (B) for use as a sole item of:
             227          (I) a meal; or
             228          (II) the diet; and
             229          (d) is required to be labeled as a dietary supplement:
             230          (i) identifiable by the "Supplemental Facts" box found on the label; and
             231          (ii) as required by 21 C.F.R. Sec. 101.36.
             232          (27) (a) "Direct mail" means printed material delivered or distributed by United States
             233      mail or other delivery service:
             234          (i) to:
             235          (A) a mass audience; or
             236          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             237          (ii) if the cost of the printed material is not billed directly to the recipients.
             238          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             239      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             240          (c) "Direct mail" does not include multiple items of printed material delivered to a
             241      single address.
             242          (28) (a) "Disposable home medical equipment or supplies" means medical equipment
             243      or supplies that:
             244          (i) cannot withstand repeated use; and


             245          (ii) are purchased by, for, or on behalf of a person other than:
             246          (A) a health care facility as defined in Section 26-21-2 ;
             247          (B) a health care provider as defined in Section 78-14-3 ;
             248          (C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
             249          (D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
             250          (b) "Disposable home medical equipment or supplies" does not include:
             251          (i) a drug;
             252          (ii) durable medical equipment;
             253          (iii) a hearing aid;
             254          (iv) a hearing aid accessory;
             255          (v) mobility enhancing equipment; or
             256          (vi) tangible personal property used to correct impaired vision, including:
             257          (A) eyeglasses; or
             258          (B) contact lenses.
             259          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             260      commission may by rule define what constitutes medical equipment or supplies.
             261          (29) (a) "Drug" means a compound, substance, or preparation, or a component of a
             262      compound, substance, or preparation that is:
             263          (i) recognized in:
             264          (A) the official United States Pharmacopoeia;
             265          (B) the official Homeopathic Pharmacopoeia of the United States;
             266          (C) the official National Formulary; or
             267          (D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
             268          (ii) intended for use in the:
             269          (A) diagnosis of disease;
             270          (B) cure of disease;
             271          (C) mitigation of disease;
             272          (D) treatment of disease; or
             273          (E) prevention of disease; or
             274          (iii) intended to affect:
             275          (A) the structure of the body; or


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


             307          (i) regardless of whether the substances are in:
             308          (A) liquid form;
             309          (B) concentrated form;
             310          (C) solid form;
             311          (D) frozen form;
             312          (E) dried form; or
             313          (F) dehydrated form; and
             314          (ii) that are:
             315          (A) sold for:
             316          (I) ingestion by humans; or
             317          (II) chewing by humans; and
             318          (B) consumed for the substance's:
             319          (I) taste; or
             320          (II) nutritional value.
             321          (b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).
             322          (c) "Food and food ingredients" does not include:
             323          (i) an alcoholic beverage;
             324          (ii) tobacco; or
             325          (iii) prepared food.
             326          (35) (a) "Fundraising sales" means sales:
             327          (i) (A) made by a school; or
             328          (B) made by a school student;
             329          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             330      materials, or provide transportation; and
             331          (iii) that are part of an officially sanctioned school activity.
             332          (b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity"
             333      means a school activity:
             334          (i) that is conducted in accordance with a formal policy adopted by the school or school
             335      district governing the authorization and supervision of fundraising activities;
             336          (ii) that does not directly or indirectly compensate an individual teacher or other
             337      educational personnel by direct payment, commissions, or payment in kind; and


             338          (iii) the net or gross revenues from which are deposited in a dedicated account
             339      controlled by the school or school district.
             340          (36) "Geothermal energy" means energy contained in heat that continuously flows
             341      outward from the earth that is used as the sole source of energy to produce electricity.
             342          (37) "Governing board of the agreement" means the governing board of the agreement
             343      that is:
             344          (a) authorized to administer the agreement; and
             345          (b) established in accordance with the agreement.
             346          (38) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             347          (i) the executive branch of the state, including all departments, institutions, boards,
             348      divisions, bureaus, offices, commissions, and committees;
             349          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             350      Office of the Court Administrator, and similar administrative units in the judicial branch;
             351          (iii) the legislative branch of the state, including the House of Representatives, the
             352      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             353      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             354      Analyst;
             355          (iv) the National Guard;
             356          (v) an independent entity as defined in Section 63E-1-102 ; or
             357          (vi) a political subdivision as defined in Section 17B-1-102 .
             358          (b) "Governmental entity" does not include the state systems of public and higher
             359      education, including:
             360          (i) a college campus of the Utah College of Applied Technology;
             361          (ii) a school;
             362          (iii) the State Board of Education;
             363          (iv) the State Board of Regents; or
             364          (v) a state institution of higher education as defined in Section 53B-3-102 .
             365          (39) (a) "Hearing aid" means:
             366          (i) an instrument or device having an electronic component that is designed to:
             367          (A) (I) improve impaired human hearing; or
             368          (II) correct impaired human hearing; and


             369          (B) (I) be worn in the human ear; or
             370          (II) affixed behind the human ear;
             371          (ii) an instrument or device that is surgically implanted into the cochlea; or
             372          (iii) a telephone amplifying device.
             373          (b) "Hearing aid" does not include:
             374          (i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
             375      having an electronic component that is designed to be worn on the body;
             376          (ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
             377      designed to be used by one individual, including:
             378          (A) a personal amplifying system;
             379          (B) a personal FM system;
             380          (C) a television listening system; or
             381          (D) a device or system similar to a device or system described in Subsections
             382      (39)(b)(ii)(A) through (C); or
             383          (iii) an assistive listening device or system designed to be used by more than one
             384      individual, including:
             385          (A) a device or system installed in:
             386          (I) an auditorium;
             387          (II) a church;
             388          (III) a conference room;
             389          (IV) a synagogue; or
             390          (V) a theater; or
             391          (B) a device or system similar to a device or system described in Subsections
             392      (39)(b)(iii)(A)(I) through (V).
             393          (40) (a) "Hearing aid accessory" means a hearing aid:
             394          (i) component;
             395          (ii) attachment; or
             396          (iii) accessory.
             397          (b) "Hearing aid accessory" includes:
             398          (i) a hearing aid neck loop;
             399          (ii) a hearing aid cord;


             400          (iii) a hearing aid ear mold;
             401          (iv) hearing aid tubing;
             402          (v) a hearing aid ear hook; or
             403          (vi) a hearing aid remote control.
             404          (c) "Hearing aid accessory" does not include:
             405          (i) a component, attachment, or accessory designed to be used only with an:
             406          (A) instrument or device described in Subsection (39)(b)(i); or
             407          (B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or
             408          (ii) a hearing aid battery.
             409          (41) "Hydroelectric energy" means water used as the sole source of energy to produce
             410      electricity.
             411          (42) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             412      other fuels:
             413          (a) in mining or extraction of minerals;
             414          (b) in agricultural operations to produce an agricultural product up to the time of
             415      harvest or placing the agricultural product into a storage facility, including:
             416          (i) commercial greenhouses;
             417          (ii) irrigation pumps;
             418          (iii) farm machinery;
             419          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             420      registered under Title 41, Chapter 1a, Part 2, Registration; and
             421          (v) other farming activities;
             422          (c) in manufacturing tangible personal property at an establishment described in SIC
             423      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             424      Executive Office of the President, Office of Management and Budget;
             425          (d) by a scrap recycler if:
             426          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             427      one or more of the following items into prepared grades of processed materials for use in new
             428      products:
             429          (A) iron;
             430          (B) steel;


             431          (C) nonferrous metal;
             432          (D) paper;
             433          (E) glass;
             434          (F) plastic;
             435          (G) textile; or
             436          (H) rubber; and
             437          (ii) the new products under Subsection (42)(d)(i) would otherwise be made with
             438      nonrecycled materials; or
             439          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             440      cogeneration facility as defined in Section 54-2-1 .
             441          (43) (a) Except as provided in Subsection (43)(b), "installation charge" means a charge
             442      for installing tangible personal property.
             443          (b) Notwithstanding Subsection (43)(a), "installation charge" does not include a charge
             444      for repairs or renovations of tangible personal property.
             445          (44) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             446      personal property for:
             447          (i) (A) a fixed term; or
             448          (B) an indeterminate term; and
             449          (ii) consideration.
             450          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             451      amount of consideration may be increased or decreased by reference to the amount realized
             452      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             453      Code.
             454          (c) "Lease" or "rental" does not include:
             455          (i) a transfer of possession or control of property under a security agreement or
             456      deferred payment plan that requires the transfer of title upon completion of the required
             457      payments;
             458          (ii) a transfer of possession or control of property under an agreement that requires the
             459      transfer of title:
             460          (A) upon completion of required payments; and
             461          (B) if the payment of an option price does not exceed the greater of:


             462          (I) $100; or
             463          (II) 1% of the total required payments; or
             464          (iii) providing tangible personal property along with an operator for a fixed period of
             465      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             466      designed.
             467          (d) For purposes of Subsection (44)(c)(iii), an operator is necessary for equipment to
             468      perform as designed if the operator's duties exceed the:
             469          (i) set-up of tangible personal property;
             470          (ii) maintenance of tangible personal property; or
             471          (iii) inspection of tangible personal property.
             472          (45) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             473      if the tangible storage media is not physically transferred to the purchaser.
             474          (46) "Local taxing jurisdiction" means a:
             475          (a) county that is authorized to impose an agreement sales and use tax;
             476          (b) city that is authorized to impose an agreement sales and use tax; or
             477          (c) town that is authorized to impose an agreement sales and use tax.
             478          (47) "Manufactured home" is as defined in Section 58-56-3 .
             479          (48) For purposes of Section 59-12-104 , "manufacturing facility" means:
             480          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             481      Industrial Classification Manual of the federal Executive Office of the President, Office of
             482      Management and Budget;
             483          (b) a scrap recycler if:
             484          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             485      one or more of the following items into prepared grades of processed materials for use in new
             486      products:
             487          (A) iron;
             488          (B) steel;
             489          (C) nonferrous metal;
             490          (D) paper;
             491          (E) glass;
             492          (F) plastic;


             493          (G) textile; or
             494          (H) rubber; and
             495          (ii) the new products under Subsection (48)(b)(i) would otherwise be made with
             496      nonrecycled materials; or
             497          (c) a cogeneration facility as defined in Section 54-2-1 .
             498          (49) "Member of the immediate family of the producer" means a person who is related
             499      to a producer described in Subsection 59-12-104 (20)(a) as a:
             500          (a) child or stepchild, regardless of whether the child or stepchild is:
             501          (i) an adopted child or adopted stepchild; or
             502          (ii) a foster child or foster stepchild;
             503          (b) grandchild or stepgrandchild;
             504          (c) grandparent or stepgrandparent;
             505          (d) nephew or stepnephew;
             506          (e) niece or stepniece;
             507          (f) parent or stepparent;
             508          (g) sibling or stepsibling;
             509          (h) spouse;
             510          (i) person who is the spouse of a person described in Subsections (49)(a) through (g);
             511      or
             512          (j) person similar to a person described in Subsections (49)(a) through (i) as
             513      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             514      Administrative Rulemaking Act.
             515          (50) "Mobile home" is as defined in Section 58-56-3 .
             516          (51) "Mobile telecommunications service" is as defined in the Mobile
             517      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             518          (52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"
             519      means equipment that is:
             520          (i) primarily and customarily used to provide or increase the ability to move from one
             521      place to another;
             522          (ii) appropriate for use in a:
             523          (A) home; or


             524          (B) motor vehicle; and
             525          (iii) not generally used by persons with normal mobility.
             526          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             527      the equipment described in Subsection (52)(a).
             528          (c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
             529      include:
             530          (i) a motor vehicle;
             531          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             532      vehicle manufacturer;
             533          (iii) durable medical equipment; or
             534          (iv) a prosthetic device.
             535          (53) "Model 1 seller" means a seller that has selected a certified service provider as the
             536      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             537      use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             538      seller's own purchases.
             539          (54) "Model 2 seller" means a seller that:
             540          (a) except as provided in Subsection (54)(b), has selected a certified automated system
             541      to perform the seller's sales tax functions for agreement sales and use taxes; and
             542          (b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
             543      sales tax:
             544          (i) collected by the seller; and
             545          (ii) to the appropriate local taxing jurisdiction.
             546          (55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:
             547          (i) sales in at least five states that are members of the agreement;
             548          (ii) total annual sales revenues of at least $500,000,000;
             549          (iii) a proprietary system that calculates the amount of tax:
             550          (A) for an agreement sales and use tax; and
             551          (B) due to each local taxing jurisdiction; and
             552          (iv) entered into a performance agreement with the governing board of the agreement.
             553          (b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of
             554      sellers using the same proprietary system.


             555          (56) "Modular home" means a modular unit as defined in Section 58-56-3 .
             556          (57) "Motor vehicle" is as defined in Section 41-1a-102 .
             557          (58) "Oil shale" means a group of fine black to dark brown shales containing
             558      bituminous material that yields petroleum upon distillation.
             559          (59) (a) "Other fuels" means products that burn independently to produce heat or
             560      energy.
             561          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             562      personal property.
             563          (60) "Pawnbroker" is as defined in Section 13-32a-102 .
             564          (61) "Pawn transaction" is as defined in Section 13-32a-102 .
             565          (62) (a) "Permanently attached to real property" means that for tangible personal
             566      property attached to real property:
             567          (i) the attachment of the tangible personal property to the real property:
             568          (A) is essential to the use of the tangible personal property; and
             569          (B) suggests that the tangible personal property will remain attached to the real
             570      property in the same place over the useful life of the tangible personal property; or
             571          (ii) if the tangible personal property is detached from the real property, the detachment
             572      would:
             573          (A) cause substantial damage to the tangible personal property; or
             574          (B) require substantial alteration or repair of the real property to which the tangible
             575      personal property is attached.
             576          (b) "Permanently attached to real property" includes:
             577          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             578          (A) essential to the operation of the tangible personal property; and
             579          (B) attached only to facilitate the operation of the tangible personal property;
             580          (ii) a temporary detachment of tangible personal property from real property for a
             581      repair or renovation if the repair or renovation is performed where the tangible personal
             582      property and real property are located; or
             583          [(iii) an attachment of the following tangible personal property to real property,
             584      regardless of whether the attachment to real property is only through a line that supplies water,
             585      electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by


             586      rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:]
             587          [(A)] (iii) property attached to oil, gas, or water pipelines, other than the property listed
             588      in Subsection (62)(c)(iii)[;].
             589          [(B) a hot water heater;]
             590          [(C) a water softener system; or]
             591          [(D) a water filtration system, other than a water filtration system manufactured as part
             592      of a refrigerator.]
             593          (c) "Permanently attached to real property" does not include:
             594          (i) the attachment of portable or movable tangible personal property to real property if
             595      that portable or movable tangible personal property is attached to real property only for:
             596          (A) convenience;
             597          (B) stability; or
             598          (C) for an obvious temporary purpose;
             599          (ii) the detachment of tangible personal property from real property other than the
             600      detachment described in Subsection (62)(b)(ii); [or]
             601          (iii) an attachment of the following tangible personal property to real property if the
             602      attachment to real property is only through a line that supplies water, electricity, gas, telephone,
             603      cable, or supplies a similar item as determined by the commission by rule made in accordance
             604      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
             605          (A) a refrigerator;
             606          (B) a washer;
             607          (C) a dryer;
             608          (D) a stove;
             609          (E) a television;
             610          (F) a computer;
             611          (G) a telephone; or
             612          (H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
             613      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             614      Administrative Rulemaking Act[.]; or
             615          (iv) the following if attached to real property, regardless of whether the attachment to
             616      real property is only through a line that supplies water, electricity, gas, telephone, cable, or


             617      supplies a similar item as determined by the commission by rule made in accordance with Title
             618      63, Chapter 46a, Utah Administrative Rulemaking Act:
             619          (A) a hot water heater;
             620          (B) a water softener system; or
             621          (C) a water filtration system.
             622          (63) "Person" includes any individual, firm, partnership, joint venture, association,
             623      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             624      municipality, district, or other local governmental entity of the state, or any group or
             625      combination acting as a unit.
             626          (64) "Place of primary use":
             627          (a) for telephone service other than mobile telecommunications service, means the
             628      street address representative of where the purchaser's use of the telephone service primarily
             629      occurs, which shall be:
             630          (i) the residential street address of the purchaser; or
             631          (ii) the primary business street address of the purchaser; or
             632          (b) for mobile telecommunications service, is as defined in the Mobile
             633      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             634          (65) "Postproduction" means an activity related to the finishing or duplication of a
             635      medium described in Subsection 59-12-104 (56)(a).
             636          (66) (a) "Prepared food" means:
             637          (i) food:
             638          (A) sold in a heated state; or
             639          (B) heated by a seller;
             640          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             641      item; or
             642          (iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
             643      by the seller, including a:
             644          (A) plate;
             645          (B) knife;
             646          (C) fork;
             647          (D) spoon;


             648          (E) glass;
             649          (F) cup;
             650          (G) napkin; or
             651          (H) straw.
             652          (b) "Prepared food" does not include:
             653          (i) food that a seller only:
             654          (A) cuts;
             655          (B) repackages; or
             656          (C) pasteurizes; or
             657          (ii) (A) the following:
             658          (I) raw egg;
             659          (II) raw fish;
             660          (III) raw meat;
             661          (IV) raw poultry; or
             662          (V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);
             663      and
             664          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             665      Food and Drug Administration's Food Code that a consumer cook the items described in
             666      Subsection (66)(b)(ii)(A) to prevent food borne illness; or
             667          (iii) the following if sold without eating utensils provided by the seller:
             668          (A) food and food ingredients sold by a seller if the seller's proper primary
             669      classification under the 2002 North American Industry Classification System of the federal
             670      Executive Office of the President, Office of Management and Budget, is manufacturing in
             671      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             672      Manufacturing;
             673          (B) food and food ingredients sold in an unheated state:
             674          (I) by weight or volume; and
             675          (II) as a single item; or
             676          (C) a bakery item, including:
             677          (I) a bagel;
             678          (II) a bar;


             679          (III) a biscuit;
             680          (IV) bread;
             681          (V) a bun;
             682          (VI) a cake;
             683          (VII) a cookie;
             684          (VIII) a croissant;
             685          (IX) a danish;
             686          (X) a donut;
             687          (XI) a muffin;
             688          (XII) a pastry;
             689          (XIII) a pie;
             690          (XIV) a roll;
             691          (XV) a tart;
             692          (XVI) a torte; or
             693          (XVII) a tortilla.
             694          (c) Notwithstanding Subsection (66)(a)(iii), an eating utensil provided by the seller
             695      does not include the following used to transport the food:
             696          (i) a container; or
             697          (ii) packaging.
             698          (67) "Prescription" means an order, formula, or recipe that is issued:
             699          (a) (i) orally;
             700          (ii) in writing;
             701          (iii) electronically; or
             702          (iv) by any other manner of transmission; and
             703          (b) by a licensed practitioner authorized by the laws of a state.
             704          (68) (a) Except as provided in Subsection (68)(b)(ii) or (iii), "prewritten computer
             705      software" means computer software that is not designed and developed:
             706          (i) by the author or other creator of the computer software; and
             707          (ii) to the specifications of a specific purchaser.
             708          (b) "Prewritten computer software" includes:
             709          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer


             710      software is not designed and developed:
             711          (A) by the author or other creator of the computer software; and
             712          (B) to the specifications of a specific purchaser;
             713          (ii) notwithstanding Subsection (68)(a), computer software designed and developed by
             714      the author or other creator of the computer software to the specifications of a specific purchaser
             715      if the computer software is sold to a person other than the purchaser; or
             716          (iii) notwithstanding Subsection (68)(a) and except as provided in Subsection (68)(c),
             717      prewritten computer software or a prewritten portion of prewritten computer software:
             718          (A) that is modified or enhanced to any degree; and
             719          (B) if the modification or enhancement described in Subsection (68)(b)(iii)(A) is
             720      designed and developed to the specifications of a specific purchaser.
             721          (c) Notwithstanding Subsection (68)(b)(iii), "prewritten computer software" does not
             722      include a modification or enhancement described in Subsection (68)(b)(iii) if the charges for
             723      the modification or enhancement are:
             724          (i) reasonable; and
             725          (ii) separately stated on the invoice or other statement of price provided to the
             726      purchaser.
             727          (69) (a) "Prosthetic device" means a device that is worn on or in the body to:
             728          (i) artificially replace a missing portion of the body;
             729          (ii) prevent or correct a physical deformity or physical malfunction; or
             730          (iii) support a weak or deformed portion of the body.
             731          (b) "Prosthetic device" includes:
             732          (i) parts used in the repairs or renovation of a prosthetic device;
             733          (ii) replacement parts for a prosthetic device; or
             734          (iii) a dental prosthesis.
             735          (c) "Prosthetic device" does not include:
             736          (i) corrective eyeglasses;
             737          (ii) contact lenses; or
             738          (iii) hearing aids.
             739          (70) (a) "Protective equipment" means an item:
             740          (i) for human wear; and


             741          (ii) that is:
             742          (A) designed as protection:
             743          (I) to the wearer against injury or disease; or
             744          (II) against damage or injury of other persons or property; and
             745          (B) not suitable for general use.
             746          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             747      commission shall make rules:
             748          (i) listing the items that constitute "protective equipment"; and
             749          (ii) that are consistent with the list of items that constitute "protective equipment"
             750      under the agreement.
             751          (71) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             752      printed matter, other than a photocopy:
             753          (i) regardless of:
             754          (A) characteristics;
             755          (B) copyright;
             756          (C) form;
             757          (D) format;
             758          (E) method of reproduction; or
             759          (F) source; and
             760          (ii) made available in printed or electronic format.
             761          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             762      commission may by rule define the term "photocopy."
             763          (72) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             764          (i) valued in money; and
             765          (ii) for which tangible personal property or services are:
             766          (A) sold;
             767          (B) leased; or
             768          (C) rented.
             769          (b) "Purchase price" and "sales price" include:
             770          (i) the seller's cost of the tangible personal property or services sold;
             771          (ii) expenses of the seller, including:


             772          (A) the cost of materials used;
             773          (B) a labor cost;
             774          (C) a service cost;
             775          (D) interest;
             776          (E) a loss;
             777          (F) the cost of transportation to the seller; or
             778          (G) a tax imposed on the seller; or
             779          (iii) a charge by the seller for any service necessary to complete the sale.
             780          (c) "Purchase price" and "sales price" do not include:
             781          (i) a discount:
             782          (A) in a form including:
             783          (I) cash;
             784          (II) term; or
             785          (III) coupon;
             786          (B) that is allowed by a seller;
             787          (C) taken by a purchaser on a sale; and
             788          (D) that is not reimbursed by a third party; or
             789          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             790      provided to the purchaser:
             791          (A) the amount of a trade-in;
             792          (B) the following from credit extended on the sale of tangible personal property or
             793      services:
             794          (I) interest charges;
             795          (II) financing charges; or
             796          (III) carrying charges;
             797          (C) a tax or fee legally imposed directly on the consumer;
             798          (D) a delivery charge; or
             799          (E) an installation charge.
             800          (73) "Purchaser" means a person to whom:
             801          (a) a sale of tangible personal property is made; or
             802          (b) a service is furnished.


             803          (74) "Regularly rented" means:
             804          (a) rented to a guest for value three or more times during a calendar year; or
             805          (b) advertised or held out to the public as a place that is regularly rented to guests for
             806      value.
             807          (75) "Renewable energy" means:
             808          (a) biomass energy;
             809          (b) hydroelectric energy;
             810          (c) geothermal energy;
             811          (d) solar energy; or
             812          (e) wind energy.
             813          (76) (a) "Renewable energy production facility" means a facility that:
             814          (i) uses renewable energy to produce electricity; and
             815          (ii) has a production capacity of 20 kilowatts or greater.
             816          (b) A facility is a renewable energy production facility regardless of whether the
             817      facility is:
             818          (i) connected to an electric grid; or
             819          (ii) located on the premises of an electricity consumer.
             820          (77) "Rental" is as defined in Subsection (44).
             821          (78) "Repairs or renovations of tangible personal property" means:
             822          (a) a repair or renovation of tangible personal property that is not permanently attached
             823      to real property; or
             824          (b) attaching tangible personal property to other tangible personal property if the other
             825      tangible personal property to which the tangible personal property is attached is not
             826      permanently attached to real property.
             827          (79) "Research and development" means the process of inquiry or experimentation
             828      aimed at the discovery of facts, devices, technologies, or applications and the process of
             829      preparing those devices, technologies, or applications for marketing.
             830          (80) "Residential use" means the use in or around a home, apartment building, sleeping
             831      quarters, and similar facilities or accommodations.
             832          (81) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             833      than:


             834          (a) resale;
             835          (b) sublease; or
             836          (c) subrent.
             837          (82) (a) "Retailer" means any person engaged in a regularly organized business in
             838      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             839      who is selling to the user or consumer and not for resale.
             840          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             841      engaged in the business of selling to users or consumers within the state.
             842          (83) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             843      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             844      Subsection 59-12-103 (1), for consideration.
             845          (b) "Sale" includes:
             846          (i) installment and credit sales;
             847          (ii) any closed transaction constituting a sale;
             848          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             849      chapter;
             850          (iv) any transaction if the possession of property is transferred but the seller retains the
             851      title as security for the payment of the price; and
             852          (v) any transaction under which right to possession, operation, or use of any article of
             853      tangible personal property is granted under a lease or contract and the transfer of possession
             854      would be taxable if an outright sale were made.
             855          (84) "Sale at retail" is as defined in Subsection (81).
             856          (85) "Sale-leaseback transaction" means a transaction by which title to tangible
             857      personal property that is subject to a tax under this chapter is transferred:
             858          (a) by a purchaser-lessee;
             859          (b) to a lessor;
             860          (c) for consideration; and
             861          (d) if:
             862          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             863      of the tangible personal property;
             864          (ii) the sale of the tangible personal property to the lessor is intended as a form of


             865      financing:
             866          (A) for the property; and
             867          (B) to the purchaser-lessee; and
             868          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             869      is required to:
             870          (A) capitalize the property for financial reporting purposes; and
             871          (B) account for the lease payments as payments made under a financing arrangement.
             872          (86) "Sales price" is as defined in Subsection (72).
             873          (87) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             874      amounts charged by a school:
             875          (i) sales that are directly related to the school's educational functions or activities
             876      including:
             877          (A) the sale of:
             878          (I) textbooks;
             879          (II) textbook fees;
             880          (III) laboratory fees;
             881          (IV) laboratory supplies; or
             882          (V) safety equipment;
             883          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             884      that:
             885          (I) a student is specifically required to wear as a condition of participation in a
             886      school-related event or school-related activity; and
             887          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             888      place of ordinary clothing;
             889          (C) sales of the following if the net or gross revenues generated by the sales are
             890      deposited into a school district fund or school fund dedicated to school meals:
             891          (I) food and food ingredients; or
             892          (II) prepared food; or
             893          (D) transportation charges for official school activities; or
             894          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             895      event or school-related activity.


             896          (b) "Sales relating to schools" does not include:
             897          (i) bookstore sales of items that are not educational materials or supplies;
             898          (ii) except as provided in Subsection (87)(a)(i)(B):
             899          (A) clothing;
             900          (B) clothing accessories or equipment;
             901          (C) protective equipment; or
             902          (D) sports or recreational equipment; or
             903          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             904      event or school-related activity if the amounts paid or charged are passed through to a person:
             905          (A) other than a:
             906          (I) school;
             907          (II) nonprofit organization authorized by a school board or a governing body of a
             908      private school to organize and direct a competitive secondary school activity; or
             909          (III) nonprofit association authorized by a school board or a governing body of a
             910      private school to organize and direct a competitive secondary school activity; and
             911          (B) that is required to collect sales and use taxes under this chapter.
             912          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             913      commission may make rules defining the term "passed through."
             914          (88) For purposes of this section and Section 59-12-104 , "school":
             915          (a) means:
             916          (i) an elementary school or a secondary school that:
             917          (A) is a:
             918          (I) public school; or
             919          (II) private school; and
             920          (B) provides instruction for one or more grades kindergarten through 12; or
             921          (ii) a public school district; and
             922          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             923          (89) "Seller" means a person that makes a sale, lease, or rental of:
             924          (a) tangible personal property; or
             925          (b) a service.
             926          (90) (a) "Semiconductor fabricating, processing, research, or development materials"


             927      means tangible personal property:
             928          (i) used primarily in the process of:
             929          (A) (I) manufacturing a semiconductor;
             930          (II) fabricating a semiconductor; or
             931          (III) research or development of a:
             932          (Aa) semiconductor; or
             933          (Bb) semiconductor manufacturing process; or
             934          (B) maintaining an environment suitable for a semiconductor; or
             935          (ii) consumed primarily in the process of:
             936          (A) (I) manufacturing a semiconductor;
             937          (II) fabricating a semiconductor; or
             938          (III) research or development of a:
             939          (Aa) semiconductor; or
             940          (Bb) semiconductor manufacturing process; or
             941          (B) maintaining an environment suitable for a semiconductor.
             942          (b) "Semiconductor fabricating, processing, research, or development materials"
             943      includes:
             944          (i) parts used in the repairs or renovations of tangible personal property described in
             945      Subsection (90)(a); or
             946          (ii) a chemical, catalyst, or other material used to:
             947          (A) produce or induce in a semiconductor a:
             948          (I) chemical change; or
             949          (II) physical change;
             950          (B) remove impurities from a semiconductor; or
             951          (C) improve the marketable condition of a semiconductor.
             952          (91) "Senior citizen center" means a facility having the primary purpose of providing
             953      services to the aged as defined in Section 62A-3-101 .
             954          (92) "Simplified electronic return" means the electronic return:
             955          (a) described in Section 318(C) of the agreement; and
             956          (b) approved by the governing board of the agreement.
             957          (93) "Solar energy" means the sun used as the sole source of energy for producing


             958      electricity.
             959          (94) (a) "Sports or recreational equipment" means an item:
             960          (i) designed for human use; and
             961          (ii) that is:
             962          (A) worn in conjunction with:
             963          (I) an athletic activity; or
             964          (II) a recreational activity; and
             965          (B) not suitable for general use.
             966          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             967      commission shall make rules:
             968          (i) listing the items that constitute "sports or recreational equipment"; and
             969          (ii) that are consistent with the list of items that constitute "sports or recreational
             970      equipment" under the agreement.
             971          (95) "State" means the state of Utah, its departments, and agencies.
             972          (96) "Storage" means any keeping or retention of tangible personal property or any
             973      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             974      sale in the regular course of business.
             975          (97) (a) "Tangible personal property" means personal property that:
             976          (i) may be:
             977          (A) seen;
             978          (B) weighed;
             979          (C) measured;
             980          (D) felt; or
             981          (E) touched; or
             982          (ii) is in any manner perceptible to the senses.
             983          (b) "Tangible personal property" includes:
             984          (i) electricity;
             985          (ii) water;
             986          (iii) gas;
             987          (iv) steam; or
             988          (v) prewritten computer software.


             989          (c) "Tangible personal property" does not include the following if attached to real
             990      property, regardless of whether the attachment to real property is only through a line that
             991      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             992      commission by rule made in accordance with Title 63, Chapter 46a, Utah Administrative
             993      Rulemaking Act:
             994          (i) a hot water heater;
             995          (ii) a water softener system; or
             996          (iii) a water filtration system.
             997          (98) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             998      and require further processing other than mechanical blending before becoming finished
             999      petroleum products.
             1000          (99) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1001      software" means an item listed in Subsection (99)(b) if that item is purchased or leased
             1002      primarily to enable or facilitate one or more of the following to function:
             1003          (i) telecommunications switching or routing equipment, machinery, or software; or
             1004          (ii) telecommunications transmission equipment, machinery, or software.
             1005          (b) The following apply to Subsection (99)(a):
             1006          (i) a pole;
             1007          (ii) software;
             1008          (iii) a supplementary power supply;
             1009          (iv) temperature or environmental equipment or machinery;
             1010          (v) test equipment;
             1011          (vi) a tower; or
             1012          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1013      Subsections (99)(b)(i) through (vi) as determined by the commission by rule made in
             1014      accordance with Subsection (99)(c).
             1015          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1016      commission may by rule define what constitutes equipment, machinery, or software that
             1017      functions similarly to an item listed in Subsections (99)(b)(i) through (vi).
             1018          (100) "Telecommunications equipment, machinery, or software required for 911
             1019      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.


             1020      Sec. 20.18.
             1021          (101) "Telecommunications maintenance or repair equipment, machinery, or software"
             1022      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1023      one or more of the following, regardless of whether the equipment, machinery, or software is
             1024      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1025      following:
             1026          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1027          (b) telecommunications switching or routing equipment, machinery, or software; or
             1028          (c) telecommunications transmission equipment, machinery, or software.
             1029          (102) (a) "Telecommunications switching or routing equipment, machinery, or
             1030      software" means an item listed in Subsection (102)(b) if that item is purchased or leased
             1031      primarily for switching or routing:
             1032          (i) voice communications;
             1033          (ii) data communications; or
             1034          (iii) telephone service.
             1035          (b) The following apply to Subsection (102)(a):
             1036          (i) a bridge;
             1037          (ii) a computer;
             1038          (iii) a cross connect;
             1039          (iv) a modem;
             1040          (v) a multiplexer;
             1041          (vi) plug in circuitry;
             1042          (vii) a router;
             1043          (viii) software;
             1044          (ix) a switch; or
             1045          (x) equipment, machinery, or software that functions similarly to an item listed in
             1046      Subsections (102)(b)(i) through (ix) as determined by the commission by rule made in
             1047      accordance with Subsection (102)(c).
             1048          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1049      commission may by rule define what constitutes equipment, machinery, or software that
             1050      functions similarly to an item listed in Subsections (102)(b)(i) through (ix).


             1051          (103) (a) "Telecommunications transmission equipment, machinery, or software"
             1052      means an item listed in Subsection (103)(b) if that item is purchased or leased primarily for
             1053      sending, receiving, or transporting:
             1054          (i) voice communications;
             1055          (ii) data communications; or
             1056          (iii) telephone service.
             1057          (b) The following apply to Subsection (103)(a):
             1058          (i) an amplifier;
             1059          (ii) a cable;
             1060          (iii) a closure;
             1061          (iv) a conduit;
             1062          (v) a controller;
             1063          (vi) a duplexer;
             1064          (vii) a filter;
             1065          (viii) an input device;
             1066          (ix) an input/output device;
             1067          (x) an insulator;
             1068          (xi) microwave machinery or equipment;
             1069          (xii) an oscillator;
             1070          (xiii) an output device;
             1071          (xiv) a pedestal;
             1072          (xv) a power converter;
             1073          (xvi) a power supply;
             1074          (xvii) a radio channel;
             1075          (xviii) a radio receiver;
             1076          (xix) a radio transmitter;
             1077          (xx) a repeater;
             1078          (xxi) software;
             1079          (xxii) a terminal;
             1080          (xxiii) a timing unit;
             1081          (xxiv) a transformer;


             1082          (xxv) a wire; or
             1083          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1084      Subsections (103)(b)(i) through (xxv) as determined by the commission by rule made in
             1085      accordance with Subsection (103)(c).
             1086          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1087      commission may by rule define what constitutes equipment, machinery, or software that
             1088      functions similarly to an item listed in Subsections (103)(b)(i) through (xxv).
             1089          (104) (a) "Telephone service" means a two-way transmission:
             1090          (i) by:
             1091          (A) wire;
             1092          (B) radio;
             1093          (C) lightwave; or
             1094          (D) other electromagnetic means; and
             1095          (ii) of one or more of the following:
             1096          (A) a sign;
             1097          (B) a signal;
             1098          (C) writing;
             1099          (D) an image;
             1100          (E) sound;
             1101          (F) a message;
             1102          (G) data; or
             1103          (H) other information of any nature.
             1104          (b) "Telephone service" includes:
             1105          (i) mobile telecommunications service;
             1106          (ii) private communications service; or
             1107          (iii) automated digital telephone answering service.
             1108          (c) "Telephone service" does not include a service or a transaction that a state or a
             1109      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             1110      Tax Freedom Act, Pub. L. No. 105-277.
             1111          (105) Notwithstanding where a call is billed or paid, "telephone service address"
             1112      means:


             1113          (a) if the location described in this Subsection (105)(a) is known, the location of the
             1114      telephone service equipment:
             1115          (i) to which a call is charged; and
             1116          (ii) from which the call originates or terminates;
             1117          (b) if the location described in Subsection (105)(a) is not known but the location
             1118      described in this Subsection (105)(b) is known, the location of the origination point of the
             1119      signal of the telephone service first identified by:
             1120          (i) the telecommunications system of the seller; or
             1121          (ii) if the system used to transport the signal is not that of the seller, information
             1122      received by the seller from its service provider; or
             1123          (c) if the locations described in Subsection (105)(a) or (b) are not known, the location
             1124      of a purchaser's primary place of use.
             1125          (106) (a) "Telephone service provider" means a person that:
             1126          (i) owns, controls, operates, or manages a telephone service; and
             1127          (ii) engages in an activity described in Subsection (106)(a)(i) for the shared use with or
             1128      resale to any person of the telephone service.
             1129          (b) A person described in Subsection (106)(a) is a telephone service provider whether
             1130      or not the Public Service Commission of Utah regulates:
             1131          (i) that person; or
             1132          (ii) the telephone service that the person owns, controls, operates, or manages.
             1133          (107) "Tobacco" means:
             1134          (a) a cigarette;
             1135          (b) a cigar;
             1136          (c) chewing tobacco;
             1137          (d) pipe tobacco; or
             1138          (e) any other item that contains tobacco.
             1139          (108) "Unassisted amusement device" means an amusement device, skill device, or
             1140      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1141      the amusement device, skill device, or ride device.
             1142          (109) (a) "Use" means the exercise of any right or power over tangible personal
             1143      property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that


             1144      property, item, or service.
             1145          (b) "Use" does not include the sale, display, demonstration, or trial of that property in
             1146      the regular course of business and held for resale.
             1147          (110) (a) Subject to Subsection (110)(b), "vehicle" means the following that are
             1148      required to be titled, registered, or titled and registered:
             1149          (i) an aircraft as defined in Section 72-10-102 ;
             1150          (ii) a vehicle as defined in Section 41-1a-102 ;
             1151          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1152          (iv) a vessel as defined in Section 41-1a-102 .
             1153          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1154          (i) a vehicle described in Subsection (110)(a); or
             1155          (ii) (A) a locomotive;
             1156          (B) a freight car;
             1157          (C) railroad work equipment; or
             1158          (D) other railroad rolling stock.
             1159          (111) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1160      exchanging a vehicle as defined in Subsection (110).
             1161          (112) (a) Except as provided in Subsection (112)(b), "waste energy facility" means a
             1162      facility that generates electricity:
             1163          (i) using as the primary source of energy waste materials that would be placed in a
             1164      landfill or refuse pit if it were not used to generate electricity, including:
             1165          (A) tires;
             1166          (B) waste coal; or
             1167          (C) oil shale; and
             1168          (ii) in amounts greater than actually required for the operation of the facility.
             1169          (b) "Waste energy facility" does not include a facility that incinerates:
             1170          (i) municipal solid waste;
             1171          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1172          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1173          (113) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1174          (114) "Wind energy" means wind used as the sole source of energy to produce


             1175      electricity.
             1176          (115) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1177      location by the United States Postal Service.
             1178          Section 2. Retrospective operation.
             1179          This bill has retrospective operation to January 1, 2008.




Legislative Review Note
    as of 1-9-08 12:53 PM


Office of Legislative Research and General Counsel


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