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Fifth Substitute S.B. 245

Representative David Clark proposes the following substitute bill:


             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 within its boundaries;
             25          .    repeals a purpose statement;


             26          .    provides a part title;
             27          .    defines terms;
             28          .    provides that a county legislative body may expend certain local sales and use tax
             29      revenues for an airport facility in addition to other purposes allowed by statute;
             30          .    addresses provisions relating to ordinances and bonding for purposes of the local
             31      sales and use tax to fund tourism, recreation, cultural, convention, and airport
             32      facilities;
             33          .    authorizes a county of the second class to impose a local option sales and use tax to
             34      fund certain airport, highway, or public transit projects or services;
             35          .    addresses the procedures and requirements for imposing the local option sales and
             36      use tax to fund certain airport, highway, or public transit projects or services,
             37      including providing that the sales and use tax is an agreement sales and use tax;
             38          .    imposes a state sales and use tax under certain circumstances;
             39          .    addresses the procedures and requirements for imposing the state sales and use tax,
             40      including providing that:
             41              .    the sales and use tax is an agreement sales and use tax; and
             42              .    the revenues are distributed to certain public transit districts;
             43          .    modifies the sources of funding for the Local Transportation Corridor Preservation
             44      Fund;
             45          .    creates a special revenue fund known as the County of the Second Class State
             46      Highway Projects Fund, including:
             47              .    addressing funding of the fund; and
             48              .    addressing the purposes for which fund monies may be expended;
             49          .    provides that an airport operator may not use airport revenue to contribute to
             50      constructing, equipping, maintaining, or operating a fixed guideway; and
             51          .    makes technical changes.
             52      Monies Appropriated in this Bill:
             53          None
             54      Other Special Clauses:
             55          This bill provides effective dates.
             56          This bill coordinates with H.B. 206, Tax Amendments, to make substantive and


             57      technical amendments, including enacting Sections 59-12-1904, 59-12-1905, 59-12-1906,
             58      59-12-2005, 59-12-2006, and 59-12-2007.
             59      Utah Code Sections Affected:
             60      AMENDS:
             61          11-41-102, as last amended by Laws of Utah 2007, Chapter 9
             62          17-31-5.5, as last amended by Laws of Utah 2007, Chapter 3
             63          41-1a-1222, as last amended by Laws of Utah 2007, Chapters 201 and 274
             64          59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
             65          59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
             66          59-12-104.2, as last amended by Laws of Utah 2003, Chapter 312
             67          59-12-108, as last amended by Laws of Utah 2007, Chapter 9
             68          59-12-602, as last amended by Laws of Utah 1995, Chapter 248
             69          59-12-603, as last amended by Laws of Utah 2007, Chapters 3, 9, and 219
             70          72-2-117.5, as last amended by Laws of Utah 2007, Chapters 181 and 201
             71          72-2-121, as last amended by Laws of Utah 2007, Chapter 201
             72          72-10-102, as last amended by Laws of Utah 2003, Chapter 183
             73      ENACTS:
             74          59-12-601.1, Utah Code Annotated 1953
             75          59-12-1901, Utah Code Annotated 1953
             76          59-12-1902, Utah Code Annotated 1953
             77          59-12-1903, Utah Code Annotated 1953
             78          59-12-2001, Utah Code Annotated 1953
             79          59-12-2002, Utah Code Annotated 1953
             80          59-12-2003, Utah Code Annotated 1953
             81          59-12-2004, Utah Code Annotated 1953
             82          72-2-121.2, Utah Code Annotated 1953
             83          72-10-215, Utah Code Annotated 1953
             84      REPEALS:
             85          59-12-601, as last amended by Laws of Utah 1991, Chapter 265
             86     
             87      Be it enacted by the Legislature of the state of Utah:


             88          Section 1. Section 11-41-102 is amended to read:
             89           11-41-102. Definitions.
             90          As used in this chapter:
             91          (1) "Agreement" means an oral or written agreement between a:
             92          (a) (i) county; or
             93          (ii) municipality; and
             94          (b) person.
             95          (2) "Municipality" means a:
             96          (a) city; or
             97          (b) town.
             98          (3) "Payment" includes:
             99          (a) a payment;
             100          (b) a rebate;
             101          (c) a refund; or
             102          (d) an amount similar to Subsections (3)(a) through (c).
             103          (4) "Regional retail business" means a:
             104          (a) retail business that occupies a floor area of more than 80,000 square feet;
             105          (b) dealer as defined in Section 41-1a-102 ;
             106          (c) retail shopping facility that has at least two anchor tenants if the total number of
             107      anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
             108      feet; or
             109          (d) grocery store that occupies a floor area of more than 30,000 square feet.
             110          (5) (a) "Sales and use tax" means a tax:
             111          (i) imposed on transactions within a:
             112          (A) county; or
             113          (B) municipality; and
             114          (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
             115      Sales and Use Tax Act.
             116          (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
             117      authorized under:
             118          (i) Subsection 59-12-103 (2)(a)(i);


             119          (ii) Subsection 59-12-103 (2)(b)(i);
             120          (iii) Subsection 59-12-103 (2)(c)(i);
             121          (iv) Subsection 59-12-103 (2)(d)(i)(A);
             122          (v) Subsection 59-12-103 (2)(e)(ii)(A);
             123          (vi) Subsection 59-12-103 (2)(e)(iii)(A);
             124          (vii) Section 59-12-301 ;
             125          (viii) Section 59-12-352 ;
             126          (ix) Section 59-12-353 ;
             127          (x) Section 59-12-603 ; or
             128          (xi) Section 59-12-1201 .
             129          (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
             130          (i) to a person;
             131          (ii) by a:
             132          (A) county; or
             133          (B) municipality;
             134          (iii) to induce the person to locate or relocate a regional retail business within the:
             135          (A) county; or
             136          (B) municipality; and
             137          (iv) that are derived from a sales and use tax.
             138          (b) "Sales and use tax incentive payment" does not include funding for public
             139      infrastructure.
             140          Section 2. Section 17-31-5.5 is amended to read:
             141           17-31-5.5. Independent audit -- Report to county legislative body -- Content.
             142          (1) The legislative body of each county imposing the transient room tax provided for in
             143      Section 59-12-301 shall annually engage an independent auditor to perform an audit to verify
             144      that transient room tax funds are used only as authorized by this chapter and to report the
             145      findings of the audit to the county legislative body.
             146          (2) Subsection (1) applies to the tourism, recreation, cultural, [and] convention, and
             147      airport facilities tax provided for in Section 59-12-603 , except that the audit verification
             148      required under this Subsection (2) shall be for the uses authorized under Section 59-12-603 .
             149          (3) The report required under Subsection (1) shall include a breakdown of expenditures


             150      into the following categories:
             151          (a) for the transient room tax, identification of expenditures for:
             152          (i) establishing and promoting:
             153          (A) recreation;
             154          (B) tourism;
             155          (C) film production; and
             156          (D) conventions;
             157          (ii) acquiring, leasing, constructing, furnishing, or operating:
             158          (A) convention meeting rooms;
             159          (B) exhibit halls;
             160          (C) visitor information centers;
             161          (D) museums; and
             162          (E) related facilities;
             163          (iii) acquiring or leasing land required for or related to the purposes listed in
             164      Subsection (3)(a)(ii);
             165          (iv) mitigation costs as identified in Subsection 17-31-2 (1)(d); and
             166          (v) making the annual payment of principal, interest, premiums, and necessary reserves
             167      for any or the aggregate of bonds issued to pay for costs referred to in Subsections
             168      17-31-2 (2)(c) and (3)(a); and
             169          (b) for the tourism, recreation, cultural, [and] convention, and airport facilities tax,
             170      identification of expenditures for:
             171          (i) financing tourism promotion, which means an activity to develop, encourage,
             172      solicit, or market tourism that attracts transient guests to the county, including planning,
             173      product development, and advertising;
             174          (ii) the development, operation, and maintenance of the following facilities as defined
             175      in Section 59-12-602 :
             176          (A) [tourist facilities] an airport facility;
             177          (B) [recreation facilities] a convention facility;
             178          (C) a cultural [facilities; and] facility;
             179          (D) [convention facilities] a recreation facility; and
             180          (E) a tourist facility; and


             181          (iii) a pledge as security for evidences of indebtedness under Subsection 59-12-603 (3).
             182          (4) A county legislative body shall provide a copy of a report it receives under this
             183      section to:
             184          (a) the Governor's Office of Economic Development;
             185          (b) its tourism tax advisory board; and
             186          (c) the Office of the Legislative Fiscal Analyst.
             187          Section 3. Section 41-1a-1222 is amended to read:
             188           41-1a-1222. Local option highway construction and transportation corridor
             189      preservation fee -- Exemptions -- Deposit -- County ordinance -- Notice.
             190          (1) (a) (i) A county legislative body may impose a local option highway construction
             191      and transportation corridor preservation fee of up to $10 on each motor vehicle registration
             192      within the county.
             193          (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
             194          (b) If imposed under Subsection (1)(a), at the time application is made for registration
             195      or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
             196      option highway construction and transportation corridor preservation fee established by the
             197      county legislative body.
             198          (c) The following are exempt from the fee required under Subsection (1)(a):
             199          (i) a motor vehicle that is exempt from the registration fee under Section 41-1a-1209 or
             200      Subsection 41-1a-419 (3);
             201          (ii) a commercial vehicle with an apportioned registration under Section 41-1a-301 ;
             202      and
             203          (iii) a motor vehicle with a Purple Heart special group license plate issued in
             204      accordance with Section 41-1a-421 .
             205          (2) (a) Except as provided in Subsection (2)(b), the revenue generated under this
             206      section shall be:
             207          (i) deposited in the Local Transportation Corridor Preservation Fund created in Section
             208      72-2-117.5 ;
             209          (ii) credited to the county from which it is generated; and
             210          (iii) used and distributed in accordance with Section 72-2-117.5 .
             211          (b) [Seventy percent of the] The revenue generated by a fee imposed under this section


             212      in a county of the first class shall be[:] deposited or transferred as follows:
             213          (i) 50% of the revenue shall be:
             214          [(i)] (A) deposited in the County of the First Class State Highway Projects Fund
             215      created in Section 72-2-121 ; and
             216          [(ii)] (B) used in accordance with Section 72-2-121 [.];
             217          (ii) 20% of the revenue shall be:
             218          (A) transferred to the legislative body of a city of the first class:
             219          (I) located in a county of the first class; and
             220          (II) that has:
             221          (Aa) an international airport within its boundaries; and
             222          (Bb) a United States customs office on the premises of the international airport
             223      described in Subsection (2)(b)(ii)(A)(II)(Aa); and
             224          (B) used by the city described in Subsection (2)(b)(ii)(A) for highway construction,
             225      reconstruction, or maintenance projects; and
             226          (iii) 30% of the revenue shall be deposited, credited, and used as provided in
             227      Subsection (2)(a).
             228          (3) To impose or change the amount of a fee under this section, the county legislative
             229      body shall pass an ordinance:
             230          (a) approving the fee;
             231          (b) setting the amount of the fee; and
             232          (c) providing an effective date for the fee as provided in Subsection (4).
             233          (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
             234      the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
             235      meeting the requirements of Subsection (4)(b) from the county prior to April 1.
             236          (b) The notice described in Subsection (4)(a) shall:
             237          (i) state that the county will enact, change, or repeal a fee under this part;
             238          (ii) include a copy of the ordinance imposing the fee; and
             239          (iii) if the county enacts or changes the fee under this section, state the amount of the
             240      fee.
             241          Section 4. Section 59-12-102 is amended to read:
             242           59-12-102. Definitions.


             243          As used in this chapter:
             244          (1) (a) "Admission or user fees" includes season passes.
             245          (b) "Admission or user fees" does not include annual membership dues to private
             246      organizations.
             247          (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
             248      Section 59-12-102.1 .
             249          (3) "Agreement combined tax rate" means the sum of the tax rates:
             250          (a) listed under Subsection (4); and
             251          (b) that are imposed within a local taxing jurisdiction.
             252          (4) "Agreement sales and use tax" means a tax imposed under:
             253          (a) Subsection 59-12-103 (2)(a)(i)(A);
             254          (b) Subsection 59-12-103 (2)(b)(i);
             255          (c) Subsection 59-12-103 (2)(c)(i);
             256          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             257          (e) Subsection 59-12-103 (2)(e)(ii)(A)(I);
             258          (f) Subsection 59-12-103 (2)(e)(iii)(A)(I);
             259          (g) Section 59-12-204 ;
             260          (h) Section 59-12-401 ;
             261          (i) Section 59-12-402 ;
             262          (j) Section 59-12-501 ;
             263          (k) Section 59-12-502 ;
             264          (l) Section 59-12-703 ;
             265          (m) Section 59-12-802 ;
             266          (n) Section 59-12-804 ;
             267          (o) Section 59-12-1001 ;
             268          (p) Section 59-12-1102 ;
             269          (q) Section 59-12-1302 ;
             270          (r) Section 59-12-1402 ;
             271          (s) Section 59-12-1503 ; [or]
             272          (t) Section 59-12-1703 [.];
             273          (u) Section 59-12-1903 ; or


             274          (v) Section 59-12-2003 .
             275          (5) "Aircraft" is as defined in Section 72-10-102 .
             276          (6) "Alcoholic beverage" means a beverage that:
             277          (a) is suitable for human consumption; and
             278          (b) contains .5% or more alcohol by volume.
             279          (7) "Area agency on aging" is as defined in Section 62A-3-101 .
             280          (8) "Assisted amusement device" means an amusement device, skill device, or ride
             281      device that is started and stopped by an individual:
             282          (a) who is not the purchaser or renter of the right to use or operate the amusement
             283      device, skill device, or ride device; and
             284          (b) at the direction of the seller of the right to use the amusement device, skill device,
             285      or ride device.
             286          (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
             287      washing of tangible personal property if the cleaning or washing labor is primarily performed
             288      by an individual:
             289          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             290      property; and
             291          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             292      property.
             293          (10) "Authorized carrier" means:
             294          (a) in the case of vehicles operated over public highways, the holder of credentials
             295      indicating that the vehicle is or will be operated pursuant to both the International Registration
             296      Plan and the International Fuel Tax Agreement;
             297          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             298      certificate or air carrier's operating certificate; or
             299          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             300      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             301          (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
             302      following that is used as the primary source of energy to produce fuel or electricity:
             303          (i) material from a plant or tree; or
             304          (ii) other organic matter that is available on a renewable basis, including:


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


             336      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
             344      jurisdiction:
             345          (i) on a transaction; and
             346          (ii) in the states that are members of the agreement;
             347          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             348      member of the agreement; and
             349          (c) maintains a record of the transaction described in Subsection (13)(a)(i).
             350          (14) "Certified service provider" means an agent certified:
             351          (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
             352      and
             353          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             354      use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
             355      own purchases.
             356          (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
             357      suitable for general use.
             358          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             359      commission shall make rules:
             360          (i) listing the items that constitute "clothing"; and
             361          (ii) that are consistent with the list of items that constitute "clothing" under the
             362      agreement.
             363          (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             364          (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             365      fuels that does not constitute industrial use under Subsection (42) or residential use under
             366      Subsection (80).


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


             398      in Subsection (24)(a)(i) to a location designated by the purchaser.
             399          (b) "Delivery charge" includes a charge for the following:
             400          (i) transportation;
             401          (ii) shipping;
             402          (iii) postage;
             403          (iv) handling;
             404          (v) crating; or
             405          (vi) packing.
             406          (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
             407          (i) a bridge;
             408          (ii) a crown if that crown covers at least 75% of a tooth structure;
             409          (iii) a denture;
             410          (iv) an implant;
             411          (v) an orthodontic device designed to:
             412          (A) retain the position or spacing of teeth; and
             413          (B) replace a missing tooth;
             414          (vi) a partial denture; or
             415          (vii) a device similar to Subsections (25)(a)(i) through (vi).
             416          (b) "Dental prosthesis" does not include an appliance or device, other than a device
             417      described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
             418      apply force to the teeth and their supporting structures to:
             419          (i) produce changes in their relationship to each other; and
             420          (ii) control their growth and development.
             421          (26) "Dietary supplement" means a product, other than tobacco, that:
             422          (a) is intended to supplement the diet;
             423          (b) contains one or more of the following dietary ingredients:
             424          (i) a vitamin;
             425          (ii) a mineral;
             426          (iii) an herb or other botanical;
             427          (iv) an amino acid;
             428          (v) a dietary substance for use by humans to supplement the diet by increasing the total


             429      dietary intake; or
             430          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             431      described in Subsections (26)(b)(i) through (v);
             432          (c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
             433          (A) tablet form;
             434          (B) capsule form;
             435          (C) powder form;
             436          (D) softgel form;
             437          (E) gelcap form; or
             438          (F) liquid form; or
             439          (ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
             440      a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
             441          (A) as conventional food; and
             442          (B) for use as a sole item of:
             443          (I) a meal; or
             444          (II) the diet; and
             445          (d) is required to be labeled as a dietary supplement:
             446          (i) identifiable by the "Supplemental Facts" box found on the label; and
             447          (ii) as required by 21 C.F.R. Sec. 101.36.
             448          (27) (a) "Direct mail" means printed material delivered or distributed by United States
             449      mail or other delivery service:
             450          (i) to:
             451          (A) a mass audience; or
             452          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             453          (ii) if the cost of the printed material is not billed directly to the recipients.
             454          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             455      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             456          (c) "Direct mail" does not include multiple items of printed material delivered to a
             457      single address.
             458          (28) (a) "Disposable home medical equipment or supplies" means medical equipment
             459      or supplies that:


             460          (i) cannot withstand repeated use; and
             461          (ii) are purchased by, for, or on behalf of a person other than:
             462          (A) a health care facility as defined in Section 26-21-2 ;
             463          (B) a health care provider as defined in Section 78-14-3 ;
             464          (C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
             465          (D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
             466          (b) "Disposable home medical equipment or supplies" does not include:
             467          (i) a drug;
             468          (ii) durable medical equipment;
             469          (iii) a hearing aid;
             470          (iv) a hearing aid accessory;
             471          (v) mobility enhancing equipment; or
             472          (vi) tangible personal property used to correct impaired vision, including:
             473          (A) eyeglasses; or
             474          (B) contact lenses.
             475          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             476      commission may by rule define what constitutes medical equipment or supplies.
             477          (29) (a) "Drug" means a compound, substance, or preparation, or a component of a
             478      compound, substance, or preparation that is:
             479          (i) recognized in:
             480          (A) the official United States Pharmacopoeia;
             481          (B) the official Homeopathic Pharmacopoeia of the United States;
             482          (C) the official National Formulary; or
             483          (D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
             484          (ii) intended for use in the:
             485          (A) diagnosis of disease;
             486          (B) cure of disease;
             487          (C) mitigation of disease;
             488          (D) treatment of disease; or
             489          (E) prevention of disease; or
             490          (iii) intended to affect:


             491          (A) the structure of the body; or
             492          (B) any function of the body.
             493          (b) "Drug" does not include:
             494          (i) food and food ingredients;
             495          (ii) a dietary supplement;
             496          (iii) an alcoholic beverage; or
             497          (iv) a prosthetic device.
             498          (30) (a) Except as provided in Subsection (30)(c), "durable medical equipment" means
             499      equipment that:
             500          (i) can withstand repeated use;
             501          (ii) is primarily and customarily used to serve a medical purpose;
             502          (iii) generally is not useful to a person in the absence of illness or injury; and
             503          (iv) is not worn in or on the body.
             504          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             505      equipment described in Subsection (30)(a).
             506          (c) Notwithstanding Subsection (30)(a), "durable medical equipment" does not include
             507      mobility enhancing equipment.
             508          (31) "Electronic" means:
             509          (a) relating to technology; and
             510          (b) having:
             511          (i) electrical capabilities;
             512          (ii) digital capabilities;
             513          (iii) magnetic capabilities;
             514          (iv) wireless capabilities;
             515          (v) optical capabilities;
             516          (vi) electromagnetic capabilities; or
             517          (vii) capabilities similar to Subsections (31)(b)(i) through (vi).
             518          (32) "Employee" is as defined in Section 59-10-401 .
             519          (33) "Fixed guideway" means a public transit facility that uses and occupies:
             520          (a) rail for the use of public transit; or
             521          (b) a separate right-of-way for the use of public transit.


             522          (34) (a) "Food and food ingredients" means substances:
             523          (i) regardless of whether the substances are in:
             524          (A) liquid form;
             525          (B) concentrated form;
             526          (C) solid form;
             527          (D) frozen form;
             528          (E) dried form; or
             529          (F) dehydrated form; and
             530          (ii) that are:
             531          (A) sold for:
             532          (I) ingestion by humans; or
             533          (II) chewing by humans; and
             534          (B) consumed for the substance's:
             535          (I) taste; or
             536          (II) nutritional value.
             537          (b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).
             538          (c) "Food and food ingredients" does not include:
             539          (i) an alcoholic beverage;
             540          (ii) tobacco; or
             541          (iii) prepared food.
             542          (35) (a) "Fundraising sales" means sales:
             543          (i) (A) made by a school; or
             544          (B) made by a school student;
             545          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             546      materials, or provide transportation; and
             547          (iii) that are part of an officially sanctioned school activity.
             548          (b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity"
             549      means a school activity:
             550          (i) that is conducted in accordance with a formal policy adopted by the school or school
             551      district governing the authorization and supervision of fundraising activities;
             552          (ii) that does not directly or indirectly compensate an individual teacher or other


             553      educational personnel by direct payment, commissions, or payment in kind; and
             554          (iii) the net or gross revenues from which are deposited in a dedicated account
             555      controlled by the school or school district.
             556          (36) "Geothermal energy" means energy contained in heat that continuously flows
             557      outward from the earth that is used as the sole source of energy to produce electricity.
             558          (37) "Governing board of the agreement" means the governing board of the agreement
             559      that is:
             560          (a) authorized to administer the agreement; and
             561          (b) established in accordance with the agreement.
             562          (38) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             563          (i) the executive branch of the state, including all departments, institutions, boards,
             564      divisions, bureaus, offices, commissions, and committees;
             565          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             566      Office of the Court Administrator, and similar administrative units in the judicial branch;
             567          (iii) the legislative branch of the state, including the House of Representatives, the
             568      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             569      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             570      Analyst;
             571          (iv) the National Guard;
             572          (v) an independent entity as defined in Section 63E-1-102 ; or
             573          (vi) a political subdivision as defined in Section 17B-1-102 .
             574          (b) "Governmental entity" does not include the state systems of public and higher
             575      education, including:
             576          (i) a college campus of the Utah College of Applied Technology;
             577          (ii) a school;
             578          (iii) the State Board of Education;
             579          (iv) the State Board of Regents; or
             580          (v) a state institution of higher education as defined in Section 53B-3-102 .
             581          (39) (a) "Hearing aid" means:
             582          (i) an instrument or device having an electronic component that is designed to:
             583          (A) (I) improve impaired human hearing; or


             584          (II) correct impaired human hearing; and
             585          (B) (I) be worn in the human ear; or
             586          (II) affixed behind the human ear;
             587          (ii) an instrument or device that is surgically implanted into the cochlea; or
             588          (iii) a telephone amplifying device.
             589          (b) "Hearing aid" does not include:
             590          (i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
             591      having an electronic component that is designed to be worn on the body;
             592          (ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
             593      designed to be used by one individual, including:
             594          (A) a personal amplifying system;
             595          (B) a personal FM system;
             596          (C) a television listening system; or
             597          (D) a device or system similar to a device or system described in Subsections
             598      (39)(b)(ii)(A) through (C); or
             599          (iii) an assistive listening device or system designed to be used by more than one
             600      individual, including:
             601          (A) a device or system installed in:
             602          (I) an auditorium;
             603          (II) a church;
             604          (III) a conference room;
             605          (IV) a synagogue; or
             606          (V) a theater; or
             607          (B) a device or system similar to a device or system described in Subsections
             608      (39)(b)(iii)(A)(I) through (V).
             609          (40) (a) "Hearing aid accessory" means a hearing aid:
             610          (i) component;
             611          (ii) attachment; or
             612          (iii) accessory.
             613          (b) "Hearing aid accessory" includes:
             614          (i) a hearing aid neck loop;


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


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


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


             708          (F) plastic;
             709          (G) textile; or
             710          (H) rubber; and
             711          (ii) the new products under Subsection (48)(b)(i) would otherwise be made with
             712      nonrecycled materials; or
             713          (c) a cogeneration facility as defined in Section 54-2-1 .
             714          (49) "Member of the immediate family of the producer" means a person who is related
             715      to a producer described in Subsection 59-12-104 (20)(a) as a:
             716          (a) child or stepchild, regardless of whether the child or stepchild is:
             717          (i) an adopted child or adopted stepchild; or
             718          (ii) a foster child or foster stepchild;
             719          (b) grandchild or stepgrandchild;
             720          (c) grandparent or stepgrandparent;
             721          (d) nephew or stepnephew;
             722          (e) niece or stepniece;
             723          (f) parent or stepparent;
             724          (g) sibling or stepsibling;
             725          (h) spouse;
             726          (i) person who is the spouse of a person described in Subsections (49)(a) through (g);
             727      or
             728          (j) person similar to a person described in Subsections (49)(a) through (i) as
             729      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             730      Administrative Rulemaking Act.
             731          (50) "Mobile home" is as defined in Section 58-56-3 .
             732          (51) "Mobile telecommunications service" is as defined in the Mobile
             733      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             734          (52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"
             735      means equipment that is:
             736          (i) primarily and customarily used to provide or increase the ability to move from one
             737      place to another;
             738          (ii) appropriate for use in a:


             739          (A) home; or
             740          (B) motor vehicle; and
             741          (iii) not generally used by persons with normal mobility.
             742          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             743      the equipment described in Subsection (52)(a).
             744          (c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
             745      include:
             746          (i) a motor vehicle;
             747          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             748      vehicle manufacturer;
             749          (iii) durable medical equipment; or
             750          (iv) a prosthetic device.
             751          (53) "Model 1 seller" means a seller that has selected a certified service provider as the
             752      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             753      use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             754      seller's own purchases.
             755          (54) "Model 2 seller" means a seller that:
             756          (a) except as provided in Subsection (54)(b), has selected a certified automated system
             757      to perform the seller's sales tax functions for agreement sales and use taxes; and
             758          (b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
             759      sales tax:
             760          (i) collected by the seller; and
             761          (ii) to the appropriate local taxing jurisdiction.
             762          (55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:
             763          (i) sales in at least five states that are members of the agreement;
             764          (ii) total annual sales revenues of at least $500,000,000;
             765          (iii) a proprietary system that calculates the amount of tax:
             766          (A) for an agreement sales and use tax; and
             767          (B) due to each local taxing jurisdiction; and
             768          (iv) entered into a performance agreement with the governing board of the agreement.
             769          (b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of


             770      sellers using the same proprietary system.
             771          (56) "Modular home" means a modular unit as defined in Section 58-56-3 .
             772          (57) "Motor vehicle" is as defined in Section 41-1a-102 .
             773          (58) "Oil shale" means a group of fine black to dark brown shales containing
             774      bituminous material that yields petroleum upon distillation.
             775          (59) (a) "Other fuels" means products that burn independently to produce heat or
             776      energy.
             777          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             778      personal property.
             779          (60) "Pawnbroker" is as defined in Section 13-32a-102 .
             780          (61) "Pawn transaction" is as defined in Section 13-32a-102 .
             781          (62) (a) "Permanently attached to real property" means that for tangible personal
             782      property attached to real property:
             783          (i) the attachment of the tangible personal property to the real property:
             784          (A) is essential to the use of the tangible personal property; and
             785          (B) suggests that the tangible personal property will remain attached to the real
             786      property in the same place over the useful life of the tangible personal property; or
             787          (ii) if the tangible personal property is detached from the real property, the detachment
             788      would:
             789          (A) cause substantial damage to the tangible personal property; or
             790          (B) require substantial alteration or repair of the real property to which the tangible
             791      personal property is attached.
             792          (b) "Permanently attached to real property" includes:
             793          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             794          (A) essential to the operation of the tangible personal property; and
             795          (B) attached only to facilitate the operation of the tangible personal property;
             796          (ii) a temporary detachment of tangible personal property from real property for a
             797      repair or renovation if the repair or renovation is performed where the tangible personal
             798      property and real property are located; or
             799          (iii) an attachment of the following tangible personal property to real property,
             800      regardless of whether the attachment to real property is only through a line that supplies water,


             801      electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
             802      rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
             803          (A) property attached to oil, gas, or water pipelines, other than the property listed in
             804      Subsection (62)(c)(iii);
             805          (B) a hot water heater;
             806          (C) a water softener system; or
             807          (D) a water filtration system, other than a water filtration system manufactured as part
             808      of a refrigerator.
             809          (c) "Permanently attached to real property" does not include:
             810          (i) the attachment of portable or movable tangible personal property to real property if
             811      that portable or movable tangible personal property is attached to real property only for:
             812          (A) convenience;
             813          (B) stability; or
             814          (C) for an obvious temporary purpose;
             815          (ii) the detachment of tangible personal property from real property other than the
             816      detachment described in Subsection (62)(b)(ii); or
             817          (iii) an attachment of the following tangible personal property to real property if the
             818      attachment to real property is only through a line that supplies water, electricity, gas, telephone,
             819      cable, or supplies a similar item as determined by the commission by rule made in accordance
             820      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
             821          (A) a refrigerator;
             822          (B) a washer;
             823          (C) a dryer;
             824          (D) a stove;
             825          (E) a television;
             826          (F) a computer;
             827          (G) a telephone; or
             828          (H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
             829      determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
             830      Administrative Rulemaking Act.
             831          (63) "Person" includes any individual, firm, partnership, joint venture, association,


             832      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             833      municipality, district, or other local governmental entity of the state, or any group or
             834      combination acting as a unit.
             835          (64) "Place of primary use":
             836          (a) for telephone service other than mobile telecommunications service, means the
             837      street address representative of where the purchaser's use of the telephone service primarily
             838      occurs, which shall be:
             839          (i) the residential street address of the purchaser; or
             840          (ii) the primary business street address of the purchaser; or
             841          (b) for mobile telecommunications service, is as defined in the Mobile
             842      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             843          (65) "Postproduction" means an activity related to the finishing or duplication of a
             844      medium described in Subsection 59-12-104 (56)(a).
             845          (66) (a) "Prepared food" means:
             846          (i) food:
             847          (A) sold in a heated state; or
             848          (B) heated by a seller;
             849          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             850      item; or
             851          (iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
             852      by the seller, including a:
             853          (A) plate;
             854          (B) knife;
             855          (C) fork;
             856          (D) spoon;
             857          (E) glass;
             858          (F) cup;
             859          (G) napkin; or
             860          (H) straw.
             861          (b) "Prepared food" does not include:
             862          (i) food that a seller only:


             863          (A) cuts;
             864          (B) repackages; or
             865          (C) pasteurizes; or
             866          (ii) (A) the following:
             867          (I) raw egg;
             868          (II) raw fish;
             869          (III) raw meat;
             870          (IV) raw poultry; or
             871          (V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);
             872      and
             873          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             874      Food and Drug Administration's Food Code that a consumer cook the items described in
             875      Subsection (66)(b)(ii)(A) to prevent food borne illness; or
             876          (iii) the following if sold without eating utensils provided by the seller:
             877          (A) food and food ingredients sold by a seller if the seller's proper primary
             878      classification under the 2002 North American Industry Classification System of the federal
             879      Executive Office of the President, Office of Management and Budget, is manufacturing in
             880      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             881      Manufacturing;
             882          (B) food and food ingredients sold in an unheated state:
             883          (I) by weight or volume; and
             884          (II) as a single item; or
             885          (C) a bakery item, including:
             886          (I) a bagel;
             887          (II) a bar;
             888          (III) a biscuit;
             889          (IV) bread;
             890          (V) a bun;
             891          (VI) a cake;
             892          (VII) a cookie;
             893          (VIII) a croissant;


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


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


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


             987          (G) a tax imposed on the seller; or
             988          (iii) a charge by the seller for any service necessary to complete the sale.
             989          (c) "Purchase price" and "sales price" do not include:
             990          (i) a discount:
             991          (A) in a form including:
             992          (I) cash;
             993          (II) term; or
             994          (III) coupon;
             995          (B) that is allowed by a seller;
             996          (C) taken by a purchaser on a sale; and
             997          (D) that is not reimbursed by a third party; or
             998          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             999      provided to the purchaser:
             1000          (A) the amount of a trade-in;
             1001          (B) the following from credit extended on the sale of tangible personal property or
             1002      services:
             1003          (I) interest charges;
             1004          (II) financing charges; or
             1005          (III) carrying charges;
             1006          (C) a tax or fee legally imposed directly on the consumer;
             1007          (D) a delivery charge; or
             1008          (E) an installation charge.
             1009          (73) "Purchaser" means a person to whom:
             1010          (a) a sale of tangible personal property is made; or
             1011          (b) a service is furnished.
             1012          (74) "Regularly rented" means:
             1013          (a) rented to a guest for value three or more times during a calendar year; or
             1014          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1015      value.
             1016          (75) "Renewable energy" means:
             1017          (a) biomass energy;


             1018          (b) hydroelectric energy;
             1019          (c) geothermal energy;
             1020          (d) solar energy; or
             1021          (e) wind energy.
             1022          (76) (a) "Renewable energy production facility" means a facility that:
             1023          (i) uses renewable energy to produce electricity; and
             1024          (ii) has a production capacity of 20 kilowatts or greater.
             1025          (b) A facility is a renewable energy production facility regardless of whether the
             1026      facility is:
             1027          (i) connected to an electric grid; or
             1028          (ii) located on the premises of an electricity consumer.
             1029          (77) "Rental" is as defined in Subsection (44).
             1030          (78) "Repairs or renovations of tangible personal property" means:
             1031          (a) a repair or renovation of tangible personal property that is not permanently attached
             1032      to real property; or
             1033          (b) attaching tangible personal property to other tangible personal property if the other
             1034      tangible personal property to which the tangible personal property is attached is not
             1035      permanently attached to real property.
             1036          (79) "Research and development" means the process of inquiry or experimentation
             1037      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1038      preparing those devices, technologies, or applications for marketing.
             1039          (80) "Residential use" means the use in or around a home, apartment building, sleeping
             1040      quarters, and similar facilities or accommodations.
             1041          (81) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1042      than:
             1043          (a) resale;
             1044          (b) sublease; or
             1045          (c) subrent.
             1046          (82) (a) "Retailer" means any person engaged in a regularly organized business in
             1047      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1048      who is selling to the user or consumer and not for resale.


             1049          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1050      engaged in the business of selling to users or consumers within the state.
             1051          (83) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1052      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1053      Subsection 59-12-103 (1), for consideration.
             1054          (b) "Sale" includes:
             1055          (i) installment and credit sales;
             1056          (ii) any closed transaction constituting a sale;
             1057          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1058      chapter;
             1059          (iv) any transaction if the possession of property is transferred but the seller retains the
             1060      title as security for the payment of the price; and
             1061          (v) any transaction under which right to possession, operation, or use of any article of
             1062      tangible personal property is granted under a lease or contract and the transfer of possession
             1063      would be taxable if an outright sale were made.
             1064          (84) "Sale at retail" is as defined in Subsection (81).
             1065          (85) "Sale-leaseback transaction" means a transaction by which title to tangible
             1066      personal property that is subject to a tax under this chapter is transferred:
             1067          (a) by a purchaser-lessee;
             1068          (b) to a lessor;
             1069          (c) for consideration; and
             1070          (d) if:
             1071          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1072      of the tangible personal property;
             1073          (ii) the sale of the tangible personal property to the lessor is intended as a form of
             1074      financing:
             1075          (A) for the property; and
             1076          (B) to the purchaser-lessee; and
             1077          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1078      is required to:
             1079          (A) capitalize the property for financial reporting purposes; and


             1080          (B) account for the lease payments as payments made under a financing arrangement.
             1081          (86) "Sales price" is as defined in Subsection (72).
             1082          (87) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1083      amounts charged by a school:
             1084          (i) sales that are directly related to the school's educational functions or activities
             1085      including:
             1086          (A) the sale of:
             1087          (I) textbooks;
             1088          (II) textbook fees;
             1089          (III) laboratory fees;
             1090          (IV) laboratory supplies; or
             1091          (V) safety equipment;
             1092          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1093      that:
             1094          (I) a student is specifically required to wear as a condition of participation in a
             1095      school-related event or school-related activity; and
             1096          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1097      place of ordinary clothing;
             1098          (C) sales of the following if the net or gross revenues generated by the sales are
             1099      deposited into a school district fund or school fund dedicated to school meals:
             1100          (I) food and food ingredients; or
             1101          (II) prepared food; or
             1102          (D) transportation charges for official school activities; or
             1103          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1104      event or school-related activity.
             1105          (b) "Sales relating to schools" does not include:
             1106          (i) bookstore sales of items that are not educational materials or supplies;
             1107          (ii) except as provided in Subsection (87)(a)(i)(B):
             1108          (A) clothing;
             1109          (B) clothing accessories or equipment;
             1110          (C) protective equipment; or


             1111          (D) sports or recreational equipment; or
             1112          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1113      event or school-related activity if the amounts paid or charged are passed through to a person:
             1114          (A) other than a:
             1115          (I) school;
             1116          (II) nonprofit organization authorized by a school board or a governing body of a
             1117      private school to organize and direct a competitive secondary school activity; or
             1118          (III) nonprofit association authorized by a school board or a governing body of a
             1119      private school to organize and direct a competitive secondary school activity; and
             1120          (B) that is required to collect sales and use taxes under this chapter.
             1121          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1122      commission may make rules defining the term "passed through."
             1123          (88) For purposes of this section and Section 59-12-104 , "school":
             1124          (a) means:
             1125          (i) an elementary school or a secondary school that:
             1126          (A) is a:
             1127          (I) public school; or
             1128          (II) private school; and
             1129          (B) provides instruction for one or more grades kindergarten through 12; or
             1130          (ii) a public school district; and
             1131          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1132          (89) "Seller" means a person that makes a sale, lease, or rental of:
             1133          (a) tangible personal property; or
             1134          (b) a service.
             1135          (90) (a) "Semiconductor fabricating, processing, research, or development materials"
             1136      means tangible personal property:
             1137          (i) used primarily in the process of:
             1138          (A) (I) manufacturing a semiconductor;
             1139          (II) fabricating a semiconductor; or
             1140          (III) research or development of a:
             1141          (Aa) semiconductor; or


             1142          (Bb) semiconductor manufacturing process; or
             1143          (B) maintaining an environment suitable for a semiconductor; or
             1144          (ii) consumed primarily in the process of:
             1145          (A) (I) manufacturing a semiconductor;
             1146          (II) fabricating a semiconductor; or
             1147          (III) research or development of a:
             1148          (Aa) semiconductor; or
             1149          (Bb) semiconductor manufacturing process; or
             1150          (B) maintaining an environment suitable for a semiconductor.
             1151          (b) "Semiconductor fabricating, processing, research, or development materials"
             1152      includes:
             1153          (i) parts used in the repairs or renovations of tangible personal property described in
             1154      Subsection (90)(a); or
             1155          (ii) a chemical, catalyst, or other material used to:
             1156          (A) produce or induce in a semiconductor a:
             1157          (I) chemical change; or
             1158          (II) physical change;
             1159          (B) remove impurities from a semiconductor; or
             1160          (C) improve the marketable condition of a semiconductor.
             1161          (91) "Senior citizen center" means a facility having the primary purpose of providing
             1162      services to the aged as defined in Section 62A-3-101 .
             1163          (92) "Simplified electronic return" means the electronic return:
             1164          (a) described in Section 318(C) of the agreement; and
             1165          (b) approved by the governing board of the agreement.
             1166          (93) "Solar energy" means the sun used as the sole source of energy for producing
             1167      electricity.
             1168          (94) (a) "Sports or recreational equipment" means an item:
             1169          (i) designed for human use; and
             1170          (ii) that is:
             1171          (A) worn in conjunction with:
             1172          (I) an athletic activity; or


             1173          (II) a recreational activity; and
             1174          (B) not suitable for general use.
             1175          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1176      commission shall make rules:
             1177          (i) listing the items that constitute "sports or recreational equipment"; and
             1178          (ii) that are consistent with the list of items that constitute "sports or recreational
             1179      equipment" under the agreement.
             1180          (95) "State" means the state of Utah, its departments, and agencies.
             1181          (96) "Storage" means any keeping or retention of tangible personal property or any
             1182      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1183      sale in the regular course of business.
             1184          (97) (a) "Tangible personal property" means personal property that:
             1185          (i) may be:
             1186          (A) seen;
             1187          (B) weighed;
             1188          (C) measured;
             1189          (D) felt; or
             1190          (E) touched; or
             1191          (ii) is in any manner perceptible to the senses.
             1192          (b) "Tangible personal property" includes:
             1193          (i) electricity;
             1194          (ii) water;
             1195          (iii) gas;
             1196          (iv) steam; or
             1197          (v) prewritten computer software.
             1198          (98) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1199      and require further processing other than mechanical blending before becoming finished
             1200      petroleum products.
             1201          (99) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1202      software" means an item listed in Subsection (99)(b) if that item is purchased or leased
             1203      primarily to enable or facilitate one or more of the following to function:


             1204          (i) telecommunications switching or routing equipment, machinery, or software; or
             1205          (ii) telecommunications transmission equipment, machinery, or software.
             1206          (b) The following apply to Subsection (99)(a):
             1207          (i) a pole;
             1208          (ii) software;
             1209          (iii) a supplementary power supply;
             1210          (iv) temperature or environmental equipment or machinery;
             1211          (v) test equipment;
             1212          (vi) a tower; or
             1213          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1214      Subsections (99)(b)(i) through (vi) as determined by the commission by rule made in
             1215      accordance with Subsection (99)(c).
             1216          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1217      commission may by rule define what constitutes equipment, machinery, or software that
             1218      functions similarly to an item listed in Subsections (99)(b)(i) through (vi).
             1219          (100) "Telecommunications equipment, machinery, or software required for 911
             1220      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1221      Sec. 20.18.
             1222          (101) "Telecommunications maintenance or repair equipment, machinery, or software"
             1223      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1224      one or more of the following, regardless of whether the equipment, machinery, or software is
             1225      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1226      following:
             1227          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1228          (b) telecommunications switching or routing equipment, machinery, or software; or
             1229          (c) telecommunications transmission equipment, machinery, or software.
             1230          (102) (a) "Telecommunications switching or routing equipment, machinery, or
             1231      software" means an item listed in Subsection (102)(b) if that item is purchased or leased
             1232      primarily for switching or routing:
             1233          (i) voice communications;
             1234          (ii) data communications; or


             1235          (iii) telephone service.
             1236          (b) The following apply to Subsection (102)(a):
             1237          (i) a bridge;
             1238          (ii) a computer;
             1239          (iii) a cross connect;
             1240          (iv) a modem;
             1241          (v) a multiplexer;
             1242          (vi) plug in circuitry;
             1243          (vii) a router;
             1244          (viii) software;
             1245          (ix) a switch; or
             1246          (x) equipment, machinery, or software that functions similarly to an item listed in
             1247      Subsections (102)(b)(i) through (ix) as determined by the commission by rule made in
             1248      accordance with Subsection (102)(c).
             1249          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1250      commission may by rule define what constitutes equipment, machinery, or software that
             1251      functions similarly to an item listed in Subsections (102)(b)(i) through (ix).
             1252          (103) (a) "Telecommunications transmission equipment, machinery, or software"
             1253      means an item listed in Subsection (103)(b) if that item is purchased or leased primarily for
             1254      sending, receiving, or transporting:
             1255          (i) voice communications;
             1256          (ii) data communications; or
             1257          (iii) telephone service.
             1258          (b) The following apply to Subsection (103)(a):
             1259          (i) an amplifier;
             1260          (ii) a cable;
             1261          (iii) a closure;
             1262          (iv) a conduit;
             1263          (v) a controller;
             1264          (vi) a duplexer;
             1265          (vii) a filter;


             1266          (viii) an input device;
             1267          (ix) an input/output device;
             1268          (x) an insulator;
             1269          (xi) microwave machinery or equipment;
             1270          (xii) an oscillator;
             1271          (xiii) an output device;
             1272          (xiv) a pedestal;
             1273          (xv) a power converter;
             1274          (xvi) a power supply;
             1275          (xvii) a radio channel;
             1276          (xviii) a radio receiver;
             1277          (xix) a radio transmitter;
             1278          (xx) a repeater;
             1279          (xxi) software;
             1280          (xxii) a terminal;
             1281          (xxiii) a timing unit;
             1282          (xxiv) a transformer;
             1283          (xxv) a wire; or
             1284          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1285      Subsections (103)(b)(i) through (xxv) as determined by the commission by rule made in
             1286      accordance with Subsection (103)(c).
             1287          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1288      commission may by rule define what constitutes equipment, machinery, or software that
             1289      functions similarly to an item listed in Subsections (103)(b)(i) through (xxv).
             1290          (104) (a) "Telephone service" means a two-way transmission:
             1291          (i) by:
             1292          (A) wire;
             1293          (B) radio;
             1294          (C) lightwave; or
             1295          (D) other electromagnetic means; and
             1296          (ii) of one or more of the following:


             1297          (A) a sign;
             1298          (B) a signal;
             1299          (C) writing;
             1300          (D) an image;
             1301          (E) sound;
             1302          (F) a message;
             1303          (G) data; or
             1304          (H) other information of any nature.
             1305          (b) "Telephone service" includes:
             1306          (i) mobile telecommunications service;
             1307          (ii) private communications service; or
             1308          (iii) automated digital telephone answering service.
             1309          (c) "Telephone service" does not include a service or a transaction that a state or a
             1310      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             1311      Tax Freedom Act, Pub. L. No. 105-277.
             1312          (105) Notwithstanding where a call is billed or paid, "telephone service address"
             1313      means:
             1314          (a) if the location described in this Subsection (105)(a) is known, the location of the
             1315      telephone service equipment:
             1316          (i) to which a call is charged; and
             1317          (ii) from which the call originates or terminates;
             1318          (b) if the location described in Subsection (105)(a) is not known but the location
             1319      described in this Subsection (105)(b) is known, the location of the origination point of the
             1320      signal of the telephone service first identified by:
             1321          (i) the telecommunications system of the seller; or
             1322          (ii) if the system used to transport the signal is not that of the seller, information
             1323      received by the seller from its service provider; or
             1324          (c) if the locations described in Subsection (105)(a) or (b) are not known, the location
             1325      of a purchaser's primary place of use.
             1326          (106) (a) "Telephone service provider" means a person that:
             1327          (i) owns, controls, operates, or manages a telephone service; and


             1328          (ii) engages in an activity described in Subsection (106)(a)(i) for the shared use with or
             1329      resale to any person of the telephone service.
             1330          (b) A person described in Subsection (106)(a) is a telephone service provider whether
             1331      or not the Public Service Commission of Utah regulates:
             1332          (i) that person; or
             1333          (ii) the telephone service that the person owns, controls, operates, or manages.
             1334          (107) "Tobacco" means:
             1335          (a) a cigarette;
             1336          (b) a cigar;
             1337          (c) chewing tobacco;
             1338          (d) pipe tobacco; or
             1339          (e) any other item that contains tobacco.
             1340          (108) "Unassisted amusement device" means an amusement device, skill device, or
             1341      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1342      the amusement device, skill device, or ride device.
             1343          (109) (a) "Use" means the exercise of any right or power over tangible personal
             1344      property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
             1345      property, item, or service.
             1346          (b) "Use" does not include the sale, display, demonstration, or trial of that property in
             1347      the regular course of business and held for resale.
             1348          (110) (a) Subject to Subsection (110)(b), "vehicle" means the following that are
             1349      required to be titled, registered, or titled and registered:
             1350          (i) an aircraft as defined in Section 72-10-102 ;
             1351          (ii) a vehicle as defined in Section 41-1a-102 ;
             1352          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1353          (iv) a vessel as defined in Section 41-1a-102 .
             1354          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1355          (i) a vehicle described in Subsection (110)(a); or
             1356          (ii) (A) a locomotive;
             1357          (B) a freight car;
             1358          (C) railroad work equipment; or


             1359          (D) other railroad rolling stock.
             1360          (111) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1361      exchanging a vehicle as defined in Subsection (110).
             1362          (112) (a) Except as provided in Subsection (112)(b), "waste energy facility" means a
             1363      facility that generates electricity:
             1364          (i) using as the primary source of energy waste materials that would be placed in a
             1365      landfill or refuse pit if it were not used to generate electricity, including:
             1366          (A) tires;
             1367          (B) waste coal; or
             1368          (C) oil shale; and
             1369          (ii) in amounts greater than actually required for the operation of the facility.
             1370          (b) "Waste energy facility" does not include a facility that incinerates:
             1371          (i) municipal solid waste;
             1372          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1373          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1374          (113) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1375          (114) "Wind energy" means wind used as the sole source of energy to produce
             1376      electricity.
             1377          (115) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1378      location by the United States Postal Service.
             1379          Section 5. Section 59-12-103 is amended to read:
             1380           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1381      tax revenues.
             1382          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1383      charged for the following transactions:
             1384          (a) retail sales of tangible personal property made within the state;
             1385          (b) amounts paid:
             1386          (i) to a:
             1387          (A) telephone service provider regardless of whether the telephone service provider is
             1388      municipally or privately owned; or
             1389          (B) telegraph corporation:


             1390          (I) as defined in Section 54-2-1 ; and
             1391          (II) regardless of whether the telegraph corporation is municipally or privately owned;
             1392      and
             1393          (ii) for:
             1394          (A) telephone service, other than mobile telecommunications service, that originates
             1395      and terminates within the boundaries of this state;
             1396          (B) mobile telecommunications service that originates and terminates within the
             1397      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             1398      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1399          (C) telegraph service;
             1400          (c) sales of the following for commercial use:
             1401          (i) gas;
             1402          (ii) electricity;
             1403          (iii) heat;
             1404          (iv) coal;
             1405          (v) fuel oil; or
             1406          (vi) other fuels;
             1407          (d) sales of the following for residential use:
             1408          (i) gas;
             1409          (ii) electricity;
             1410          (iii) heat;
             1411          (iv) coal;
             1412          (v) fuel oil; or
             1413          (vi) other fuels;
             1414          (e) sales of prepared food;
             1415          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1416      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1417      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             1418      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1419      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             1420      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,


             1421      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1422      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             1423      exhibition, cultural, or athletic activity;
             1424          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1425      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1426          (i) the tangible personal property; and
             1427          (ii) parts used in the repairs or renovations of the tangible personal property described
             1428      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1429      of that tangible personal property;
             1430          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             1431      assisted cleaning or washing of tangible personal property;
             1432          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             1433      accommodations and services that are regularly rented for less than 30 consecutive days;
             1434          (j) amounts paid or charged for laundry or dry cleaning services;
             1435          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1436      this state the tangible personal property is:
             1437          (i) stored;
             1438          (ii) used; or
             1439          (iii) otherwise consumed;
             1440          (l) amounts paid or charged for tangible personal property if within this state the
             1441      tangible personal property is:
             1442          (i) stored;
             1443          (ii) used; or
             1444          (iii) consumed; and
             1445          (m) amounts paid or charged for prepaid telephone calling cards.
             1446          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             1447      is imposed on a transaction described in Subsection (1) equal to the sum of:
             1448          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1449          (A) 4.65%; and
             1450          (B) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1451      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in


             1452      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1453      Part 20, Supplemental State Sales and Use Tax Act; and
             1454          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1455      transaction under this chapter other than this part.
             1456          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1457      on a transaction described in Subsection (1)(d) equal to the sum of:
             1458          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             1459          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1460      transaction under this chapter other than this part.
             1461          (c) Except as provided in Subsection (2)(d) or (e), beginning on January 1, 2007, a
             1462      state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
             1463      equal to the sum of:
             1464          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             1465      a tax rate of 1.75%; and
             1466          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1467      amounts paid or charged for food and food ingredients under this chapter other than this part.
             1468          (d) Except as provided in Subsection (2)(e), if a seller collects a tax in accordance with
             1469      Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state tax and a local
             1470      tax is imposed on the transaction equal to the sum of:
             1471          (i) a state tax imposed on the transaction at a tax rate of:
             1472          (A) the sum of:
             1473          [(A)] (I) 4.65% for a transaction other than a transaction described in Subsection
             1474      (2)(d)(i)(B) or (2)(d)(i)(C); and
             1475          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1476      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1477      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1478      Part 20, Supplemental State Sales and Use Tax Act;
             1479          (B) 2% for a transaction described in Subsection (1)(d); or
             1480          (C) beginning on January 1, 2007, 1.75% on the amounts paid or charged for food and
             1481      food ingredients; and
             1482          (ii) a local tax imposed on the transaction at a tax rate equal to the sum of the following


             1483      tax rates:
             1484          (A) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             1485      and towns in the state impose the tax authorized by Section 59-12-204 ; and
             1486          (B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             1487      state impose the tax authorized by Section 59-12-1102 .
             1488          (e) (i) A state tax and a local tax is imposed on an entire bundled transaction as
             1489      provided in this Subsection (2)(e) if the bundled transaction is attributable to food and food
             1490      ingredients and tangible personal property other than food and food ingredients.
             1491          (ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
             1492      seller other than a seller that collects a tax in accordance with Subsection 59-12-107 (1)(b),
             1493      beginning on January 1, 2007, a state tax and a local tax is imposed on the entire bundled
             1494      transaction equal to the sum of:
             1495          (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
             1496          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             1497          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1498      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1499      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1500      Part 20, Supplemental State Sales and Use Tax Act; and
             1501          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             1502      described in Subsection (2)(a)(ii).
             1503          (iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
             1504      a seller in accordance with Subsection 59-12-107 (1)(b), beginning on January 1, 2007, a state
             1505      tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
             1506          (A) a state tax imposed on the entire bundled transaction [at] equal to the sum of:
             1507          (I) the tax rate described in Subsection (2)(d)(i)(A); and
             1508          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1509      and Use Tax Act, if the location of the transaction as determined under Section 59-12-207 is in
             1510      a city, town, or the unincorporated area of a county in which the state imposes the tax under
             1511      Part 20, Supplemental State Sales and Use Tax Act; and
             1512          (B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
             1513      of the following tax rates:


             1514          (I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             1515      and towns in the state impose the tax authorized by Section 59-12-204 ; and
             1516          (II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             1517      state impose the tax authorized by Section 59-12-1102 .
             1518          (f) Subject to Subsections (2)(g) and (h), a tax rate repeal or tax rate change for a tax
             1519      rate imposed under the following shall take effect on the first day of a calendar quarter:
             1520          (i) Subsection (2)(a)(i)(A);
             1521          (ii) Subsection (2)(b)(i);
             1522          (iii) Subsection (2)(c)(i);
             1523          (iv) Subsection (2)(d)(i)(A)(I);
             1524          (v) Subsection (2)(e)(ii)(A)(I); or
             1525          (vi) Subsection (2)(e)(iii)(A)(I).
             1526          (g) (i) For a transaction described in Subsection (2)(g)(iii), a tax rate increase shall take
             1527      effect on the first day of the first billing period that begins after the effective date of the tax rate
             1528      increase if the billing period for the transaction begins before the effective date of a tax rate
             1529      increase imposed under:
             1530          (A) Subsection (2)(a)(i)(A);
             1531          (B) Subsection (2)(b)(i);
             1532          (C) Subsection (2)(c)(i);
             1533          (D) Subsection (2)(d)(i)(A)(I);
             1534          (E) Subsection (2)(e)(ii)(A)(I); or
             1535          (F) Subsection (2)(e)(iii)(A)(I).
             1536          (ii) For a transaction described in Subsection (2)(g)(iii), the repeal of a tax or a tax rate
             1537      decrease shall take effect on the first day of the last billing period that began before the
             1538      effective date of the repeal of the tax or the tax rate decrease if the billing period for the
             1539      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             1540      imposed under:
             1541          (A) Subsection (2)(a)(i)(A);
             1542          (B) Subsection (2)(b)(i);
             1543          (C) Subsection (2)(c)(i);
             1544          (D) Subsection (2)(d)(i)(A)(I);


             1545          (E) Subsection (2)(e)(ii)(A)(I); or
             1546          (F) Subsection (2)(e)(iii)(A)(I).
             1547          (iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:
             1548          (A) Subsection (1)(b);
             1549          (B) Subsection (1)(c);
             1550          (C) Subsection (1)(d);
             1551          (D) Subsection (1)(e);
             1552          (E) Subsection (1)(f);
             1553          (F) Subsection (1)(g);
             1554          (G) Subsection (1)(h);
             1555          (H) Subsection (1)(i);
             1556          (I) Subsection (1)(j); or
             1557          (J) Subsection (1)(k).
             1558          (h) (i) For a tax rate described in Subsection (2)(h)(ii), if a tax due on a catalogue sale
             1559      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             1560      or change in a tax rate takes effect:
             1561          (A) on the first day of a calendar quarter; and
             1562          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1563          (ii) Subsection (2)(h)(i) applies to the tax rates described in the following:
             1564          (A) Subsection (2)(a)(i)(A);
             1565          (B) Subsection (2)(b)(i);
             1566          (C) Subsection (2)(c)(i);
             1567          (D) Subsection (2)(d)(i)(A)(I);
             1568          (E) Subsection (2)(e)(ii)(A)(I); or
             1569          (F) Subsection (2)(e)(iii)(A)(I).
             1570          (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             1571      the commission may by rule define the term "catalogue sale."
             1572          (3) (a) Except as provided in Subsections (4) through (10), the following state taxes
             1573      shall be deposited into the General Fund:
             1574          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1575          (ii) the tax imposed by Subsection (2)(b)(i);


             1576          (iii) the tax imposed by Subsection (2)(c)(i);
             1577          (iv) the tax imposed by Subsection (2) (d)(i)(A)(I);
             1578          (v) the tax imposed by Subsection (2)(e)(ii)(A)(I); and
             1579          (vi) the tax imposed by Subsection (2)(e)(iii)(A)(I).
             1580          (b) The following local taxes shall be distributed to a county, city, or town as provided
             1581      in this chapter:
             1582          (i) the tax imposed by Subsection (2)(a)(ii);
             1583          (ii) the tax imposed by Subsection (2)(b)(ii);
             1584          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1585          (iv) the tax imposed by Subsection (2)(e)(ii)(B).
             1586          (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
             1587      state shall receive the county's, city's, or town's proportionate share of the revenues generated
             1588      by the following local taxes as provided in Subsection (3)(c)(ii):
             1589          (A) the local tax described in Subsection (2)(d)(ii); and
             1590          (B) the local tax described in Subsection (2)(e)(iii)(B).
             1591          (ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
             1592      shall determine a county's, city's, or town's proportionate share of the revenues by:
             1593          (A) calculating an amount equal to the population of the unincorporated area of the
             1594      county, city, or town divided by the total population of the state; and
             1595          (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
             1596      amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
             1597      cities, and towns.
             1598          (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
             1599      purposes of this section shall be derived from the most recent official census or census estimate
             1600      of the United States Census Bureau.
             1601          (B) If a needed population estimate is not available from the United States Census
             1602      Bureau, population figures shall be derived from the estimate from the Utah Population
             1603      Estimates Committee created by executive order of the governor.
             1604          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1605      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1606      through (g):


             1607          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1608          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             1609          (B) for the fiscal year; or
             1610          (ii) $17,500,000.
             1611          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             1612      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             1613      Department of Natural Resources to:
             1614          (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
             1615      protect sensitive plant and animal species; or
             1616          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1617      act, to political subdivisions of the state to implement the measures described in Subsections
             1618      63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
             1619          (ii) Money transferred to the Department of Natural Resources under Subsection
             1620      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             1621      person to list or attempt to have listed a species as threatened or endangered under the
             1622      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1623          (iii) At the end of each fiscal year:
             1624          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1625      Conservation and Development Fund created in Section 73-10-24 ;
             1626          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1627      Program Subaccount created in Section 73-10c-5 ; and
             1628          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1629      Program Subaccount created in Section 73-10c-5 .
             1630          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             1631      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1632      created in Section 4-18-6 .
             1633          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1634      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1635      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             1636      water rights.
             1637          (ii) At the end of each fiscal year:


             1638          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1639      Conservation and Development Fund created in Section 73-10-24 ;
             1640          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1641      Program Subaccount created in Section 73-10c-5 ; and
             1642          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1643      Program Subaccount created in Section 73-10c-5 .
             1644          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1645      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1646      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1647          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1648      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             1649      Development Fund may also be used to:
             1650          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1651      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1652      quantifying surface and ground water resources and describing the hydrologic systems of an
             1653      area in sufficient detail so as to enable local and state resource managers to plan for and
             1654      accommodate growth in water use without jeopardizing the resource;
             1655          (B) fund state required dam safety improvements; and
             1656          (C) protect the state's interest in interstate water compact allocations, including the
             1657      hiring of technical and legal staff.
             1658          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1659      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1660      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1661          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1662      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             1663      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             1664          (i) provide for the installation and repair of collection, treatment, storage, and
             1665      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1666          (ii) develop underground sources of water, including springs and wells; and
             1667          (iii) develop surface water sources.
             1668          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,


             1669      2006, the difference between the following amounts shall be expended as provided in this
             1670      Subsection (5), if that difference is greater than $1:
             1671          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1672      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1673          (ii) $17,500,000.
             1674          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1675          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1676      credits; and
             1677          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1678      restoration.
             1679          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1680      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1681      created in Section 73-10-24 .
             1682          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             1683      remaining difference described in Subsection (5)(a) shall be:
             1684          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             1685      credits; and
             1686          (B) expended by the Division of Water Resources for cloud-seeding projects
             1687      authorized by Title 73, Chapter 15, Modification of Weather.
             1688          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1689      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1690      created in Section 73-10-24 .
             1691          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1692      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             1693      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             1694      Division of Water Resources for:
             1695          (i) preconstruction costs:
             1696          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1697      26, Bear River Development Act; and
             1698          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1699      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;


             1700          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1701      Chapter 26, Bear River Development Act;
             1702          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1703      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1704          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             1705      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1706          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             1707      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             1708          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1709      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             1710      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1711      incurred for employing additional technical staff for the administration of water rights.
             1712          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             1713      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             1714      Fund created in Section 73-10-24 .
             1715          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1716      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1717      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             1718      the Transportation Fund created by Section 72-2-102 .
             1719          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             1720      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             1721      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             1722      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             1723      transactions under Subsection (1).
             1724          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             1725      have been paid off and the highway projects completed that are intended to be paid from
             1726      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             1727      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             1728      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             1729      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             1730      by a 1/64% tax rate on the taxable transactions under Subsection (1).


             1731          (8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
             1732      year 2004-05, the commission shall each year on or before the September 30 immediately
             1733      following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
             1734      into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is
             1735      greater than $0.
             1736          (b) The difference described in Subsection (8)(a) is equal to the difference between:
             1737          (i) the total amount of the revenues the commission received from sellers collecting the
             1738      taxes described in Subsections (2)(d)(i) and (2)(e)(iii)(A) for the fiscal year immediately
             1739      preceding the September 30 described in Subsection (8)(a); and
             1740          (ii) $7,279,673.
             1741          (9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             1742      Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after
             1743      July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
             1744      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             1745      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             1746      portion of the approximately 17% of sales and use tax revenues generated annually by the sales
             1747      and use tax on vehicles and vehicle-related products:
             1748          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1749          (ii) the tax imposed by Subsection (2)(b)(i);
             1750          (iii) the tax imposed by Subsection (2)(c)(i); and
             1751          (iv) the tax imposed by Subsection (2)(e)(ii)(A)(I).
             1752          (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             1753      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             1754      highway projects completed that are intended to be paid from revenues deposited in the
             1755      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             1756      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             1757      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             1758      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             1759      which represents a portion of the approximately 17% of sales and use tax revenues generated
             1760      annually by the sales and use tax on vehicles and vehicle-related products:
             1761          (i) the tax imposed by Subsection (2)(a)(i)(A);


             1762          (ii) the tax imposed by Subsection (2)(b)(i);
             1763          (iii) the tax imposed by Subsection (2)(c)(i); and
             1764          (iv) the tax imposed by Subsection (2)(e)(ii)(A)(I).
             1765          (10) (a) Notwithstanding Subsection (3)(a) and until Subsection (10)(b) applies, the
             1766      Division of Finance shall annually deposit $90,000,000 of the revenues generated by the taxes
             1767      listed under Subsection (3)(a) into the Critical Highway Needs Fund created by Section
             1768      72-2-125 .
             1769          (b) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             1770      Subsections (7) and (9), when the general obligation bonds authorized by Section 63B-16-101
             1771      have been paid off and the highway projects completed that are included in the prioritized
             1772      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             1773      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             1774      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             1775      of 2005 created by Section 72-2-124 .
             1776          Section 6. Section 59-12-104.2 is amended to read:
             1777           59-12-104.2. Exemption for accommodations and services taxed by the Navajo
             1778      Nation.
             1779          (1) As used in this section "tribal taxing area" means the geographical area that:
             1780          (a) is subject to the taxing authority of the Navajo Nation; and
             1781          (b) consists of:
             1782          (i) notwithstanding the issuance of a patent, all land:
             1783          (A) within the limits of an Indian reservation under the jurisdiction of the federal
             1784      government; and
             1785          (B) including any rights-of-way running through the reservation; and
             1786          (ii) all Indian allotments the Indian titles to which have not been extinguished,
             1787      including any rights-of-way running through an Indian allotment.
             1788          (2) (a) Beginning July 1, 2001, amounts paid by or charged to a purchaser for
             1789      accommodations and services described in Subsection 59-12-103 (1)(i) are exempt from the tax
             1790      imposed by Subsection 59-12-103 (2)(a)(i) to the extent permitted under Subsection (2)(b) if:
             1791          (i) the accommodations and services described in Subsection 59-12-103 (1)(i) are
             1792      provided within:


             1793          (A) the state; and
             1794          (B) a tribal taxing area;
             1795          (ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to
             1796      the purchaser for the accommodations and services described in Subsection 59-12-103 (1)(i);
             1797          (iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without
             1798      regard to whether or not the purchaser that pays or is charged for the accommodations and
             1799      services is an enrolled member of the Navajo Nation; and
             1800          (iv) the requirements of Subsection (4) are met.
             1801          (b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for
             1802      accommodations and services described in Subsection (2)(a) are subject to a tax imposed by
             1803      Subsection 59-12-103 (2)(a)(i)(A):
             1804          (i) the seller shall collect and pay to the state the difference described in Subsection (3)
             1805      if that difference is greater than $0; and
             1806          (ii) a person may not require the state to provide a refund, a credit, or similar tax relief
             1807      if the difference described in Subsection (3) is equal to or less than $0.
             1808          (3) The difference described in Subsection (2)(b) is equal to the difference between:
             1809          (a) the amount of tax imposed by Subsection 59-12-103 (2)(a)(i)(A) on the amounts
             1810      paid by or charged to a purchaser for accommodations and services described in Subsection
             1811      59-12-103 (1)(i); less
             1812          (b) the tax imposed and collected by the Navajo Nation on the amounts paid by or
             1813      charged to a purchaser for the accommodations and services described in Subsection
             1814      59-12-103 (1)(i).
             1815          (4) (a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax
             1816      imposed on amounts paid by or charged to a purchaser for accommodations and services
             1817      described in Subsection 59-12-103 (1)(i), any change in the amount of the exemption under
             1818      Subsection (2) as a result of the change in the tax rate is not effective until the first day of the
             1819      calendar quarter after a 90-day period beginning on the date the commission receives notice
             1820      meeting the requirements of Subsection (4)(b) from the Navajo Nation.
             1821          (b) The notice described in Subsection (4)(a) shall state:
             1822          (i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             1823      amounts paid by or charged to a purchaser for accommodations and services described in


             1824      Subsection 59-12-103 (1)(i);
             1825          (ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i);
             1826      and
             1827          (iii) the new rate of the tax described in Subsection (4)(b)(i).
             1828          (5) Beginning with the 2006 interim, the Revenue and Taxation Interim Committee:
             1829          (a) shall review the exemption provided for in this section one or more times every five
             1830      years;
             1831          (b) shall determine on or before the November interim meeting of the year in which the
             1832      Revenue and Taxation Interim Committee reviews the exemption provided for in this section
             1833      whether the exemption should be:
             1834          (i) continued;
             1835          (ii) modified; or
             1836          (iii) repealed; and
             1837          (c) may review any other issue related to the exemption provided for in this section as
             1838      determined by the Revenue and Taxation Interim Committee.
             1839          Section 7. Section 59-12-108 is amended to read:
             1840           59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
             1841      Certain amounts allocated to local taxing jurisdictions.
             1842          (1) (a) Notwithstanding Section 59-12-107 , a seller that has a tax liability under this
             1843      chapter of $50,000 or more for the previous calendar year shall:
             1844          (i) file a return with the commission:
             1845          (A) monthly on or before the last day of the month immediately following the month
             1846      for which the seller collects a tax under this chapter; and
             1847          (B) for the month for which the seller collects a tax under this chapter; and
             1848          (ii) remit with the return required by Subsection (1)(a)(i) the amount the person is
             1849      required to remit to the commission for each tax, fee, or charge described in Subsection (1)(b):
             1850          (A) if that seller's tax liability under this chapter for the previous calendar year is less
             1851      than $96,000, by any method permitted by the commission; or
             1852          (B) if that seller's tax liability under this chapter for the previous calendar year is
             1853      $96,000 or more, by electronic funds transfer.
             1854          (b) Subsections (1)(a)(i) and (ii) apply to the following taxes, fees, or charges:


             1855          (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             1856          (ii) a fee under Section 19-6-716 ;
             1857          (iii) a fee under Section 19-6-805 ;
             1858          (iv) a charge under Section 69-2-5.5 ; or
             1859          (v) a tax under this chapter.
             1860          (c) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63, Chapter 46a,
             1861      Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
             1862      for making same-day payments other than by electronic funds transfer if making payments by
             1863      electronic funds transfer fails.
             1864          (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1865      commission shall establish by rule procedures and requirements for determining the amount a
             1866      seller is required to remit to the commission under this Subsection (1).
             1867          (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
             1868      seller described in Subsection (4) may retain each month the amount allowed by this
             1869      Subsection (2).
             1870          (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
             1871      each month 1.31% of any amounts the seller is required to remit to the commission:
             1872          (i) for a transaction described in Subsection 59-12-103 (1) that is subject to a state tax
             1873      and a local tax imposed in accordance with the following, for the month for which the seller is
             1874      filing a return in accordance with Subsection (1):
             1875          (A) Subsection 59-12-103 (2)(a);
             1876          (B) Subsection 59-12-103 (2)(b);
             1877          (C) Subsection 59-12-103 (2)(d), except for the state tax and the local tax imposed on
             1878      the amounts paid or charged for food and food ingredients in accordance with Subsections
             1879      59-12-103 (2)(d)(i)(C) and (2)(d)(ii); and
             1880          (D) Subsection 59-12-103 (2)(e); and
             1881          (ii) for an agreement sales and use tax.
             1882          (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             1883      retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
             1884      in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed in
             1885      accordance with Subsection 59-12-103 (2)(c).


             1886          (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
             1887      equal to the sum of:
             1888          (A) 1.31% of any amounts the seller is required to remit to the commission for:
             1889          (I) the state tax and the local tax imposed in accordance with Subsection
             1890      59-12-103 (2)(c);
             1891          (II) the month for which the seller is filing a return in accordance with Subsection (1);
             1892      and
             1893          (III) an agreement sales and use tax; and
             1894          (B) 1.31% of the difference between:
             1895          (I) the amounts the seller would have been required to remit to the commission:
             1896          (Aa) in accordance with Subsection 59-12-103 (2)(a) if the transaction had been subject
             1897      to the state tax and the local tax imposed in accordance with Subsection 59-12-103 (2)(a);
             1898          (Bb) for the month for which the seller is filing a return in accordance with Subsection
             1899      (1); and
             1900          (Cc) for an agreement sales and use tax; and
             1901          (II) the amounts the seller is required to remit to the commission for:
             1902          (Aa) the state tax and the local tax imposed in accordance with Subsection
             1903      59-12-103 (2)(c);
             1904          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             1905      and
             1906          (Cc) an agreement sales and use tax.
             1907          (d) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             1908      retain each month the amount calculated under Subsection (2)(d)(ii) for a transaction described
             1909      in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed on the
             1910      amounts paid or charged for food and food ingredients in accordance with Subsections
             1911      59-12-103 (2)(d)(i)(C) and (2)(d)(ii).
             1912          (ii) For purposes of Subsection (2)(d)(i), the amount a seller may retain is an amount
             1913      equal to the sum of:
             1914          (A) 1.31% of any amounts the seller is required to remit to the commission for:
             1915          (I) the state tax and the local tax imposed on the amounts paid or charged for food and
             1916      food ingredients in accordance with Subsections 59-12-103 (2)(d)(i)(C) and (2)(d)(ii);


             1917          (II) the month for which the seller is filing a return in accordance with Subsection (1);
             1918      and
             1919          (III) an agreement sales and use tax; and
             1920          (B) 1.31% of the difference between:
             1921          (I) the amounts the seller would have been required to remit to the commission:
             1922          (Aa) in accordance with Subsections 59-12-103 (2)(d)(i)(A)(I) and (2)(d)(ii) if the
             1923      transaction had been subject to the state tax and the local tax imposed in accordance with
             1924      Subsections 59-12-103 (2)(d)(i)(A)(I) and (2)(d)(ii);
             1925          (Bb) for the month for which the seller is filing a return in accordance with Subsection
             1926      (1); and
             1927          (Cc) for an agreement sales and use tax; and
             1928          (II) the amounts the seller is required to remit to the commission for:
             1929          (Aa) the state tax and the local tax imposed in accordance with Subsections
             1930      59-12-103 (2)(d)(i)(C) and (2)(d)(ii);
             1931          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             1932      and
             1933          (Cc) an agreement sales and use tax.
             1934          (e) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
             1935      each month 1% of any amounts the seller is required to remit to the commission:
             1936          (i) for the month for which the seller is filing a return in accordance with Subsection
             1937      (1); and
             1938          (ii) under:
             1939          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             1940          (B) Subsection 59-12-603 (1)(a)(i)(A); or
             1941          (C) Subsection 59-12-603 (1)(a)(i)(B).
             1942          (3) A state government entity that is required to remit taxes monthly in accordance
             1943      with Subsection (1) may not retain any amount under Subsection (2).
             1944          (4) A seller that has a tax liability under this chapter for the previous calendar year of
             1945      less than $50,000 may:
             1946          (a) voluntarily meet the requirements of Subsection (1); and
             1947          (b) if the seller voluntarily meets the requirements of Subsection (1), retain the


             1948      amounts allowed by Subsection (2).
             1949          (5) Penalties for late payment shall be as provided in Section 59-1-401 .
             1950          (6) (a) [For] Except as provided in Subsection (6)(c), for any amounts required to be
             1951      remitted to the commission under this part, the commission shall each month calculate an
             1952      amount equal to the difference between:
             1953          (i) the total amount retained for that month by all sellers had the percentages listed
             1954      under Subsections (2)(b), (2)(c)(ii), and (2)(d)(ii) been 1.5%; and
             1955          (ii) the total amount retained for that month by all sellers at the percentages listed
             1956      under Subsections (2)(b), (2)(c)(ii), and (2)(d)(ii).
             1957          (b) The commission shall each month allocate the amount calculated under Subsection
             1958      (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
             1959      tax that the commission distributes to each county, city, and town for that month compared to
             1960      the total agreement sales and use tax that the commission distributes for that month to all
             1961      counties, cities, and towns.
             1962          (c) The amount the commission calculates under Subsection (6)(a) may not include an
             1963      amount collected from a tax that:
             1964          (i) the state imposes within a county, city, or town, including the unincorporated area
             1965      of a county; and
             1966          (ii) is not imposed within the entire state.
             1967          Section 8. Section 59-12-601.1 is enacted to read:
             1968     
Part 6. Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act

             1969          59-12-601.1. Title.
             1970          This part is known as the "Tourism, Recreation, Cultural, Convention, and Airport
             1971      Facilities Tax Act."
             1972          Section 9. Section 59-12-602 is amended to read:
             1973           59-12-602. Definitions.
             1974          As used in this part:
             1975          (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
             1976      significance, as defined by the Transportation Commission by rule made in accordance with
             1977      Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             1978          (b) "Airport facility" includes:


             1979          (i) an appurtenance to an airport, including a fixed guideway as defined in Section
             1980      59-12-1702 that provides transportation service to or from the airport;
             1981          (ii) a control tower, including a radar system;
             1982          (iii) a public area of an airport; or
             1983          (iv) a terminal facility.
             1984          [(1)] (2) "Convention facility" means any publicly owned or operated convention
             1985      center, sports arena, or other facility at which conventions, conferences, and other gatherings
             1986      are held and whose primary business or function is to host such conventions, conferences, and
             1987      other gatherings.
             1988          [(2)] (3) "Cultural facility" means any publicly owned or operated museum, theater, art
             1989      center, music hall, or other cultural or arts facility.
             1990          [(3)] (4) "Recreation facility" or "tourist facility" means any publicly owned or
             1991      operated park, campground, marina, dock, golf course, water park, historic park, monument,
             1992      planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
             1993          [(4)] (5) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda
             1994      fountain, or fast-food service where food is prepared for immediate consumption.
             1995          (b) "Restaurant" does not include:
             1996          (i) any retail establishment whose primary business or function is the sale of fuel or
             1997      food items for off-premise, but not immediate, consumption; and
             1998          (ii) a theater that sells food items, but not a dinner theater.
             1999          Section 10. Section 59-12-603 is amended to read:
             2000           59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
             2001      ordinance required -- Advisory board -- Administration -- Collection -- Distribution --
             2002      Enactment or repeal of tax or tax rate change -- Effective date -- Notice requirements.
             2003          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
             2004      part, impose a tax as follows:
             2005          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
             2006      on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
             2007      and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
             2008      vehicle that is being repaired pursuant to a repair or an insurance agreement; and
             2009          (B) beginning on or after January 1, 1999, a county legislative body of any county


             2010      imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
             2011      Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
             2012      of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
             2013      for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
             2014      to a repair or an insurance agreement;
             2015          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
             2016      sales of the following that are sold by a restaurant:
             2017          (A) prepared food; or
             2018          (B) food and food ingredients; and
             2019          (iii) a county legislative body of a county of the first class may impose a tax of not to
             2020      exceed .5% on charges for the accommodations and services described in Subsection
             2021      59-12-103 (1)(i).
             2022          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
             2023      17-31-5.5 .
             2024          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
             2025      for in Subsections (1)(a)(i) through (iii) may be used for [the purposes of]:
             2026          (i) financing tourism promotion; and
             2027          (ii) the development, operation, and maintenance of [tourist, recreation, cultural, and
             2028      convention facilities as defined in Section 59-12-602 .]:
             2029          (A) an airport facility;
             2030          (B) a convention facility;
             2031          (C) a cultural facility;
             2032          (D) a recreation facility; or
             2033          (E) a tourist facility.
             2034          (b) A county of the first class shall expend at least $450,000 each year of the revenues
             2035      from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
             2036      marketing and ticketing system designed to:
             2037          (i) promote tourism in ski areas within the county by persons that do not reside within
             2038      the state; and
             2039          (ii) combine the sale of:
             2040          (A) ski lift tickets; and


             2041          (B) accommodations and services described in Subsection 59-12-103 (1)(i).
             2042          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
             2043      evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
             2044      Government Bonding Act, or a community development and renewal agency under Title 17C,
             2045      Chapter 1, Part 5, Agency Bonds, to finance [tourism, recreation, cultural, and convention
             2046      facilities.]:
             2047          (a) an airport facility;
             2048          (b) a convention facility;
             2049          (c) a cultural facility;
             2050          (d) a recreation facility; or
             2051          (e) a tourist facility.
             2052          (4) (a) In order to impose the tax under Subsection (1), each county legislative body
             2053      shall [annually] adopt an ordinance imposing the tax.
             2054          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
             2055      same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
             2056      those items and sales described in Subsection (1).
             2057          (c) The name of the county as the taxing agency shall be substituted for that of the state
             2058      where necessary, and an additional license is not required if one has been or is issued under
             2059      Section 59-12-106 .
             2060          (5) In order to maintain in effect its tax ordinance adopted under this part, each county
             2061      legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
             2062      Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
             2063      amendments to Part 1, Tax Collection.
             2064          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
             2065      board in accordance with Section 17-31-8 , the county legislative body of the county of the first
             2066      class shall create a tax advisory board in accordance with this Subsection (6).
             2067          (b) The tax advisory board shall be composed of nine members appointed as follows:
             2068          (i) four members shall be appointed by the county legislative body of the county of the
             2069      first class as follows:
             2070          (A) one member shall be a resident of the unincorporated area of the county;
             2071          (B) two members shall be residents of the incorporated area of the county; and


             2072          (C) one member shall be a resident of the unincorporated or incorporated area of the
             2073      county; and
             2074          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
             2075      towns within the county of the first class appointed by an organization representing all mayors
             2076      of cities and towns within the county of the first class.
             2077          (c) Five members of the tax advisory board constitute a quorum.
             2078          (d) The county legislative body of the county of the first class shall determine:
             2079          (i) terms of the members of the tax advisory board;
             2080          (ii) procedures and requirements for removing a member of the tax advisory board;
             2081          (iii) voting requirements, except that action of the tax advisory board shall be by at
             2082      least a majority vote of a quorum of the tax advisory board;
             2083          (iv) chairs or other officers of the tax advisory board;
             2084          (v) how meetings are to be called and the frequency of meetings; and
             2085          (vi) the compensation, if any, of members of the tax advisory board.
             2086          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
             2087      body of the county of the first class on the expenditure of revenues collected within the county
             2088      of the first class from the taxes described in Subsection (1)(a).
             2089          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
             2090      shall be administered, collected, and enforced in accordance with:
             2091          (A) the same procedures used to administer, collect, and enforce the tax under:
             2092          (I) Part 1, Tax Collection; or
             2093          (II) Part 2, Local Sales and Use Tax Act; and
             2094          (B) Chapter 1, General Taxation Policies.
             2095          (ii) A tax under this part is not subject to Section 59-12-107.1 or Subsections
             2096      59-12-205 (2) through (7).
             2097          (b) Except as provided in Subsection (7)(c):
             2098          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
             2099      commission shall distribute the revenues to the county imposing the tax; and
             2100          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
             2101      according to the distribution formula provided in Subsection (8).
             2102          (c) The commission shall deduct from the distributions under Subsection (7)(b) an


             2103      administrative charge for collecting the tax as provided in Section 59-12-206 .
             2104          (8) The commission shall distribute the revenues generated by the tax under Subsection
             2105      (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
             2106      following formula:
             2107          (a) the commission shall distribute 70% of the revenues based on the percentages
             2108      generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
             2109      the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
             2110          (b) the commission shall distribute 30% of the revenues based on the percentages
             2111      generated by dividing the population of each county collecting a tax under Subsection
             2112      (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
             2113          (9) (a) For purposes of this Subsection (9):
             2114          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             2115      Annexation to County.
             2116          (ii) "Annexing area" means an area that is annexed into a county.
             2117          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
             2118      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             2119      change shall take effect:
             2120          (A) on the first day of a calendar quarter; and
             2121          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2122      the requirements of Subsection (9)(b)(ii) from the county.
             2123          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
             2124          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             2125          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
             2126          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
             2127          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2128      (9)(b)(ii)(A), the rate of the tax.
             2129          (c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             2130      (9)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             2131      first billing period:
             2132          (A) that begins after the effective date of the enactment of the tax or the tax rate
             2133      increase; and


             2134          (B) if the billing period for the transaction begins before the effective date of the
             2135      enactment of the tax or the tax rate increase imposed under Subsection (1).
             2136          (ii) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             2137      (9)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2138      billing period:
             2139          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             2140      and
             2141          (B) if the billing period for the transaction begins before the effective date of the repeal
             2142      of the tax or the tax rate decrease imposed under Subsection (1).
             2143          (iii) Subsections (9)(c)(i) and (ii) apply to transactions subject to a tax under:
             2144          (A) Subsection 59-12-103 (1)(e);
             2145          (B) Subsection 59-12-103 (1)(i); or
             2146          (C) Subsection 59-12-103 (1)(k).
             2147          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
             2148      after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
             2149      tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             2150          (A) on the first day of a calendar quarter; and
             2151          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2152      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             2153          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             2154          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
             2155      repeal, or change in the rate of a tax under this part for the annexing area;
             2156          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             2157          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
             2158          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2159      (9)(d)(ii)(A), the rate of the tax.
             2160          (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             2161      (9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             2162      first billing period:
             2163          (A) that begins after the effective date of the enactment of the tax or the tax rate
             2164      increase; and


             2165          (B) if the billing period for the transaction begins before the effective date of the
             2166      enactment of the tax or the tax rate increase imposed under Subsection (1).
             2167          (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             2168      (9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2169      billing period:
             2170          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             2171      and
             2172          (B) if the billing period for the transaction begins before the effective date of the repeal
             2173      of the tax or the tax rate decrease imposed under Subsection (1).
             2174          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             2175          (A) Subsection 59-12-103 (1)(e);
             2176          (B) Subsection 59-12-103 (1)(i); or
             2177          (C) Subsection 59-12-103 (1)(k).
             2178          Section 11. Section 59-12-1901 is enacted to read:
             2179     
Part 19. County of the Second Class Airport, Highway, and Public

             2180     
Transit Sales and Use Tax Act

             2181          59-12-1901. Title.
             2182          This part is known as the "County of the Second Class Airport, Highway, and Public
             2183      Transit Sales and Use Tax Act."
             2184          Section 12. Section 59-12-1902 is enacted to read:
             2185          59-12-1902. Definitions.
             2186          As used in this part:
             2187          (1) "Airport facility" is as defined in Section 59-12-602 .
             2188          (2) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             2189      Annexation to County.
             2190          (3) "Annexing area" means an area that is annexed into a county.
             2191          (4) "Fixed guideway" is as defined in Section 59-12-1702 .
             2192          (5) "Local highway of regional significance" means a local highway that is a:
             2193          (a) principal arterial highway as defined in Section 72-4-102.5 ;
             2194          (b) minor arterial highway as defined in Section 72-4-102.5 ;
             2195          (c) major collector highway as defined in Section 72-4-102.5 ; or


             2196          (d) minor collector road as defined in Section 72-4-102.5 .
             2197          (6) "Public transit" is as defined in Section 59-12-1502 .
             2198          Section 13. Section 59-12-1903 is enacted to read:
             2199          59-12-1903. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             2200      from the tax -- Administration, collection, and enforcement of tax by commission --
             2201      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             2202          (1) (a) Subject to the other provisions of this section and except as provided in
             2203      Subsection (2), beginning on January 1, 2009, a county legislative body of a county of the
             2204      second class may impose a sales and use tax on the transactions:
             2205          (i) described in Subsection 59-12-103 (1); and
             2206          (ii) within the county, including the cities and towns within the county.
             2207          (b) For purposes of Subsection (1)(a), a county legislative body may impose a tax at a
             2208      rate of:
             2209          (i) .10%, to be:
             2210          (A) as determined by the county legislative body, deposited as provided in Subsection
             2211      (4)(c)(i) into the County of the Second Class State Highway Projects Fund created by Section
             2212      72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             2213          (B) as determined by the county legislative body, expended for a project or service
             2214      relating to an airport facility:
             2215          (I) if that airport facility is part of the regional transportation plan of the area
             2216      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2217      and
             2218          (II) for the portion of the project or service that is performed within the county; or
             2219          (C) as determined by the county legislative body, deposited or expended for a
             2220      combination of Subsections (1)(b)(i)(A) and (B); or
             2221          (ii) .25%, to be expended as follows:
             2222          (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
             2223      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             2224      provided in Section 72-2-121.2 ;
             2225          (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
             2226      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and


             2227      distributed in accordance with Section 72-2-117.5 ; and
             2228          (C) as determined by the county legislative body, .10% to be:
             2229          (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
             2230      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             2231      Section 72-2-121.2 ;
             2232          (II) expended for:
             2233          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
             2234      Highways Act;
             2235          (Bb) a local highway of regional significance; or
             2236          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             2237          (III) expended for a project or service relating to a system for public transit for the
             2238      portion of the project or service that is performed within the county;
             2239          (IV) expended for a project or service relating to a fixed guideway for the portion of
             2240      the project or service that is performed within the county;
             2241          (V) expended for a project or service relating to an airport facility:
             2242          (Aa) if that airport facility is part of the regional transportation plan of the area
             2243      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2244      and
             2245          (Bb) for the portion of the project or service that is performed within the county; or
             2246          (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
             2247      (V).
             2248          (c) If a county legislative body imposes a tax under this part, the county legislative
             2249      body may not impose a tax under Part 17, County Option Sales and Use Tax for Transportation
             2250      Act.
             2251          (d) For purposes of this Subsection (1), the location of a transaction shall be
             2252      determined in accordance with Section 59-12-207 .
             2253          (2) (a) A county legislative body may not impose a tax under this part on:
             2254          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2255      are exempt from taxation under Section 59-12-104 ;
             2256          (ii) any amounts paid or charged by a seller that collects a tax under Subsection
             2257      59-12-107 (1)(b); or


             2258          (iii) except as provided in Subsection (2)(b), amounts paid or charged for food and
             2259      food ingredients.
             2260          (b) A county legislative body imposing a tax under this part shall impose the tax on
             2261      amounts paid or charged for food and food ingredients if:
             2262          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             2263      food and food ingredients and tangible personal property other than food and food ingredients;
             2264      and
             2265          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             2266      accordance with Subsection 59-12-107 (1)(b).
             2267          (3) To impose a tax under this part, a county legislative body shall obtain approval
             2268      from a majority of the members of the county legislative body.
             2269          (4) (a) Except as provided in Subsection (4)(b) or (c) or (6), the commission shall
             2270      transmit revenues collected within a county from a tax under this part that are required to be
             2271      expended for a purpose described in Subsection (1)(b)(ii)(C):
             2272          (i) to the county legislative body;
             2273          (ii) monthly; and
             2274          (iii) by electronic funds transfer.
             2275          (b) Except as provided in Subsection (6), the commission shall transfer the revenues
             2276      described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
             2277      Chapter 2a, Part 8, Public Transit District Act, if the county legislative body:
             2278          (i) provides written notice to the commission requesting the transfer; and
             2279          (ii) designates the public transit district to which the county legislative body requests
             2280      the commission to transfer the revenues described in Subsection (4)(a).
             2281          (c) Except as provided in Subsection (6), the commission shall deposit revenues
             2282      collected within a county from a tax under this part that:
             2283          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             2284      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             2285          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into
             2286      the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             2287          (iii) a county legislative body determines to expend for a purpose described in
             2288      Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class State Highway


             2289      Projects Fund created by Section 72-2-121.2 if the county legislative body provides written
             2290      notice to the commission requesting the deposit.
             2291          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             2292      collect, and enforce a tax under this part in accordance with:
             2293          (i) the same procedures used to administer, collect, and enforce the tax under:
             2294          (A) Part 1, Tax Collection; or
             2295          (B) Part 2, Local Sales and Use Tax Act; and
             2296          (ii) Chapter 1, General Taxation Policies.
             2297          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
             2298          (6) (a) The commission may retain an amount of tax collected under this part of not to
             2299      exceed the lesser of:
             2300          (i) 1.5%; or
             2301          (ii) an amount equal to the cost to the commission of administering this part.
             2302          (b) Any amount the commission retains under Subsection (6)(a) shall be:
             2303          (i) deposited into the Sales and Use Tax Administrative Fees Account; and
             2304          (ii) used as provided in Subsection 59-12-206 (2).
             2305          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             2306      a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             2307      repeal, or change shall take effect:
             2308          (A) on the first day of a calendar quarter; and
             2309          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2310      the requirements of Subsection (7)(a)(ii) from the county.
             2311          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             2312          (A) that the county will enact, repeal, or change the rate of a tax under this part;
             2313          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             2314          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             2315          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2316      (7)(a)(ii)(A), the rate of the tax.
             2317          (b) (i) For a transaction described in Subsection (7)(b)(iii), if the billing period for the
             2318      transaction begins before the effective date of the enactment of the tax or the tax rate increase
             2319      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first


             2320      day of the first billing period that begins after the effective date of the enactment of the tax or
             2321      the tax rate increase.
             2322          (ii) For a transaction described in Subsection (7)(b)(iii), if the billing period for the
             2323      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             2324      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             2325      first day of the last billing period that began before the effective date of the repeal of the tax or
             2326      the tax rate decrease.
             2327          (iii) Subsections (7)(b)(i) and (ii) apply to transactions subject to a tax under:
             2328          (A) Subsection 59-12-103 (1)(b);
             2329          (B) Subsection 59-12-103 (1)(c);
             2330          (C) Subsection 59-12-103 (1)(d);
             2331          (D) Subsection 59-12-103 (1)(e);
             2332          (E) Subsection 59-12-103 (1)(f);
             2333          (F) Subsection 59-12-103 (1)(g);
             2334          (G) Subsection 59-12-103 (1)(h);
             2335          (H) Subsection 59-12-103 (1)(i);
             2336          (I) Subsection 59-12-103 (1)(j); or
             2337          (J) Subsection 59-12-103 (1)(k).
             2338          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2339      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2340      described in Subsection (7)(a)(i) takes effect:
             2341          (A) on the first day of a calendar quarter; and
             2342          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2343      rate of the tax under Subsection (7)(a)(i).
             2344          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2345      the commission may by rule define the term "catalogue sale."
             2346          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             2347      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             2348      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             2349      effect:
             2350          (A) on the first day of a calendar quarter; and


             2351          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2352      the requirements of Subsection (7)(d)(ii) from the county that annexes the annexing area.
             2353          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             2354          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment,
             2355      repeal, or change in the rate of a tax under this part for the annexing area;
             2356          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             2357          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             2358          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2359      (7)(d)(ii)(A), the rate of the tax.
             2360          (e) (i) For a transaction described in Subsection (7)(e)(iii), if the billing period for the
             2361      transaction begins before the effective date of the enactment of the tax or a tax rate increase
             2362      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             2363      day of the first billing period that begins after the effective date of the enactment of the tax or
             2364      the tax rate increase.
             2365          (ii) For a transaction described in Subsection (7)(e)(iii), if the billing period for the
             2366      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             2367      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             2368      first day of the last billing period that began before the effective date of the repeal of the tax or
             2369      the tax rate decrease.
             2370          (iii) Subsections (7)(e)(i) and (ii) apply to transactions subject to a tax under:
             2371          (A) Subsection 59-12-103 (1)(b);
             2372          (B) Subsection 59-12-103 (1)(c);
             2373          (C) Subsection 59-12-103 (1)(d);
             2374          (D) Subsection 59-12-103 (1)(e);
             2375          (E) Subsection 59-12-103 (1)(f);
             2376          (F) Subsection 59-12-103 (1)(g);
             2377          (G) Subsection 59-12-103 (1)(h);
             2378          (H) Subsection 59-12-103 (1)(i);
             2379          (I) Subsection 59-12-103 (1)(j); or
             2380          (J) Subsection 59-12-103 (1)(k).
             2381          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales


             2382      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2383      described in Subsection (7)(d)(i) takes effect:
             2384          (A) on the first day of a calendar quarter; and
             2385          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2386      rate under Subsection (7)(d)(i).
             2387          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2388      the commission may by rule define the term "catalogue sale."
             2389          Section 14. Section 59-12-2001 is enacted to read:
             2390     
Part 20. Supplemental State Sales and Use Tax Act

             2391          59-12-2001. Title.
             2392          This part is known as the "Supplemental State Sales and Use Tax Act."
             2393          Section 15. Section 59-12-2002 is enacted to read:
             2394          59-12-2002. Definitions.
             2395          As used in this part, "public transit district" means a public transit district organized
             2396      under Title 17B, Chapter 2a, Part 8, Public Transit District Act.
             2397          Section 16. Section 59-12-2003 is enacted to read:
             2398          59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
             2399      transit districts.
             2400          (1) Subject to the other provisions of this section and except as provided in Subsection
             2401      (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part within a city,
             2402      town, or the unincorporated area of a county of the first or second class if, on January 1, 2008,
             2403      there is a public transit district within any portion of that county of the first or second class.
             2404          (2) The state may not impose a tax under this part within a county of the first or second
             2405      class if within all of the cities, towns, and the unincorporated area of the county of the first or
             2406      second class there is imposed a sales and use tax of:
             2407          (a) .30% under Section 59-12-501 ;
             2408          (b) .30% under Section 59-12-1001 ; or
             2409          (c) .30% under Section 59-12-1503 .
             2410          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
             2411      rate imposed within a city, town, or the unincorporated area of a county of the first or second
             2412      class is a percentage equal to the difference between:


             2413          (i) .30%; and
             2414          (ii) (A) for a city within the county of the first or second class, the highest tax rate
             2415      imposed within that city under:
             2416          (I) Section 59-12-501 ;
             2417          (II) Section 59-12-1001 ; or
             2418          (III) Section 59-12-1503 ;
             2419          (B) for a town within the county of the first or second class, the highest tax rate
             2420      imposed within that town under:
             2421          (I) Section 59-12-501 ;
             2422          (II) Section 59-12-1001 ; or
             2423          (III) Section 59-12-1503 ; or
             2424          (C) for the unincorporated area of the county of the first or second class, the highest tax
             2425      rate imposed within that unincorporated area under:
             2426          (I) Section 59-12-501 ;
             2427          (II) Section 59-12-1001 ; or
             2428          (III) Section 59-12-1503 .
             2429          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
             2430      a county of the first or second class, the highest tax rate imposed under Section 59-12-501 ,
             2431      59-12-1001 , or 59-12-1503 within that city, town, or unincorporated area of the county of the
             2432      first or second class is .30%, the state may not impose a tax under this part within that city,
             2433      town, or unincorporated area.
             2434          (4) (a) The state may not impose a tax under this part on:
             2435          (i) a transaction described in Subsection 59-12-103 (1)(d);
             2436          (ii) except as provided in Subsection (4)(b), a transaction described in Subsection
             2437      59-12-103 (2)(c); or
             2438          (iii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2439      are exempt from taxation under Section 59-12-104 .
             2440          (b) The state shall impose a tax under this part on amounts paid or charged for food
             2441      and food ingredients if:
             2442          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             2443      food and ingredients and tangible personal property other than food and food ingredients; and


             2444          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             2445      accordance with Subsection 59-12-107 (1)(b).
             2446          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
             2447      accordance with Section 59-12-207 .
             2448          (6) The commission shall distribute the revenues the state collects from the sales and
             2449      use tax under this part, after subtracting amounts a seller retains in accordance with Section
             2450      59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
             2451          (a) within which the state imposes a tax under this part; and
             2452          (b) in proportion to the revenues collected from the sales and use tax under this part
             2453      within each city, town, and unincorporated area within which the state imposes a tax under this
             2454      part.
             2455          Section 17. Section 59-12-2004 is enacted to read:
             2456          59-12-2004. Enactment or repeal of tax -- Effective date -- Administration,
             2457      collection, and enforcement of tax.
             2458          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             2459      imposed under this part shall take effect on the first day of a calendar quarter.
             2460          (2) (a) For a transaction described in Subsection (2)(c), the enactment of a tax or a tax
             2461      rate increase shall take effect on the first day of the first billing period that begins after the
             2462      effective date of the enactment of the tax or the tax rate increase if the billing period for the
             2463      transaction begins before the effective date of the enactment of the tax or the tax rate increase
             2464      under this part.
             2465          (b) For a transaction described in Subsection (2)(c), the repeal of a tax or a tax rate
             2466      decrease shall take effect on the first day of the last billing period that began before the
             2467      effective date of the repeal of the tax or the tax rate decrease if the billing period for the
             2468      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             2469      imposed under this part.
             2470          (c) Subsections (2)(a) and (b) apply to transactions subject to a tax under:
             2471          (i) Subsection 59-12-103 (1)(b);
             2472          (ii) Subsection 59-12-103 (1)(c);
             2473          (iii) Subsection 59-12-103 (1)(d);
             2474          (iv) Subsection 59-12-103 (1)(e);


             2475          (v) Subsection 59-12-103 (1)(f);
             2476          (vi) Subsection 59-12-103 (1)(g);
             2477          (vii) Subsection 59-12-103 (1)(h);
             2478          (viii) Subsection 59-12-103 (1)(i);
             2479          (ix) Subsection 59-12-103 (1)(j); or
             2480          (x) Subsection 59-12-103 (1)(k).
             2481          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2482      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2483      under this part takes effect:
             2484          (i) on the first day of a calendar quarter; and
             2485          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2486      rate of the tax under this part.
             2487          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             2488      commission may by rule define the term "catalogue sale."
             2489          (4) The commission shall administer, collect, and enforce a tax under this part in
             2490      accordance with:
             2491          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             2492      Tax Collection; and
             2493          (b) Chapter 1, General Taxation Policies.
             2494          Section 18. Section 72-2-117.5 is amended to read:
             2495           72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
             2496          (1) As used in this section:
             2497          (a) "Council of governments" means a decision-making body in each county composed
             2498      of the county governing body and the mayors of each municipality in the county.
             2499          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             2500      72-1-208.5 .
             2501          (2) There is created the Local Transportation Corridor Preservation Fund within the
             2502      Transportation Fund.
             2503          (3) The fund shall be funded from the following sources:
             2504          (a) a local option highway construction and transportation corridor preservation fee
             2505      imposed under Section 41-1a-1222 ;


             2506          (b) appropriations made to the fund by the Legislature;
             2507          (c) contributions from other public and private sources for deposit into the fund;
             2508          (d) interest earnings on cash balances;
             2509          (e) all monies collected from rents and sales of real property acquired with fund
             2510      monies;
             2511          (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             2512      as authorized by Title 63B, Bonds; [and]
             2513          (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             2514      and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund[.]; and
             2515          (h) sales and use tax revenues required by Section 59-12-1903 to be deposited into the
             2516      fund.
             2517          (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
             2518      are nonlapsing.
             2519          (b) The State Tax Commission shall provide the department with sufficient data for the
             2520      department to allocate the revenues:
             2521          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             2522      construction and transportation corridor preservation fee under Section 41-1a-1222 ; [and]
             2523          (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
             2524      option sales and use tax for transportation[.]; and
             2525          (iii) provided under Subsection (3)(h) to each county of the second class imposing the
             2526      sales and use tax authorized by Section 59-12-1903 .
             2527          (c) The monies allocated under Subsection (4)(b):
             2528          (i) shall be used for the purposes provided in this section for each county; and
             2529          (ii) are allocated to each county as provided in this section:
             2530          (A) with the condition that the state will not be charged for any asset purchased with
             2531      the monies allocated under Subsection (4)(b); and
             2532          (B) are considered a local matching contribution for the purposes described under
             2533      Section 72-2-123 if used on a state highway.
             2534          (d) Administrative costs of the department to implement this section shall be paid from
             2535      the fund.
             2536          (5) (a) The department shall authorize the expenditure of fund monies to allow a


             2537      highway authority to acquire real property or any interests in real property for state, county, and
             2538      municipal highway corridors subject to:
             2539          (i) monies available in the fund to each county under Subsection (4)(b); and
             2540          (ii) the provisions of this section.
             2541          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             2542      section.
             2543          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             2544      under this section but limited to a total of 5% of the purchase price of the property.
             2545          (B) Any additional maintenance cost shall be paid from funds other than under this
             2546      section.
             2547          (C) Revenue generated by any property acquired under this section is excluded from
             2548      the limitations under this Subsection (5)(c)(i).
             2549          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             2550      under this section.
             2551          (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             2552      authority for countywide transportation planning if:
             2553          (i) the county is not included in a metropolitan planning organization;
             2554          (ii) the transportation planning is part of the county's continuing, cooperative, and
             2555      comprehensive process for transportation planning, corridor preservation, right-of-way
             2556      acquisition, and project programming;
             2557          (iii) no more than four years allocation every 20 years to each county is used for
             2558      transportation planning under this Subsection (5)(d); and
             2559          (iv) the county otherwise qualifies to use the fund monies as provided under this
             2560      section.
             2561          (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county
             2562      highway authority for transportation corridor planning that is part of the corridor elements of an
             2563      ongoing work program of transportation projects.
             2564          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             2565      direction of:
             2566          (A) the metropolitan planning organization if the county is within the boundaries of a
             2567      metropolitan planning organization; or


             2568          (B) the department if the county is not within the boundaries of a metropolitan
             2569      planning organization.
             2570          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             2571      preserve highway corridors, promote long-term statewide transportation planning, save on
             2572      acquisition costs, and promote the best interests of the state in a manner which minimizes
             2573      impact on prime agricultural land.
             2574          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
             2575      a highway corridor that is right-of-way:
             2576          (A) in a county of the first or second class for a:
             2577          (I) state highway;
             2578          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             2579          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             2580          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             2581          (B) in a county of the third, fourth, fifth, or sixth class for a:
             2582          (I) state highway;
             2583          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             2584          (III) a minor arterial highway as defined in Section 72-4-102.5 ;
             2585          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             2586          (V) a minor collector road as defined in Section 72-4-102.5 .
             2587          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             2588      highway corridor that is primarily a recreational trail as defined under Section 63-11a-101 .
             2589          (b) (i) The department shall develop and implement a program to educate highway
             2590      authorities on the objectives, application process, use, and responsibilities of the Local
             2591      Transportation Corridor Preservation Fund as provided under this section to promote the most
             2592      efficient and effective use of fund monies including priority use on designated high priority
             2593      corridor preservation projects.
             2594          (ii) The department shall develop a model transportation corridor property acquisition
             2595      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             2596      acquire real property or any interests in real property under this section.
             2597          (c) The department shall authorize the expenditure of fund monies after determining
             2598      that the expenditure is being made in accordance with this section from applications that are:


             2599          (i) made by a highway authority;
             2600          (ii) endorsed by the council of governments; and
             2601          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             2602          (7) (a) (i) A council of governments shall establish a council of governments
             2603      endorsement process which includes prioritization and application procedures for use of the
             2604      monies allocated to each county under this section.
             2605          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             2606      endorsement of the preservation project by the:
             2607          (A) metropolitan planning organization if the county is within the boundaries of a
             2608      metropolitan planning organization; or
             2609          (B) the department if the county is not within the boundaries of a metropolitan
             2610      planning organization.
             2611          (b) All fund monies shall be prioritized by each highway authority and council of
             2612      governments based on considerations, including:
             2613          (i) areas with rapidly expanding population;
             2614          (ii) the willingness of local governments to complete studies and impact statements
             2615      that meet department standards;
             2616          (iii) the preservation of corridors by the use of local planning and zoning processes;
             2617          (iv) the availability of other public and private matching funds for a project;
             2618          (v) the cost-effectiveness of the preservation projects;
             2619          (vi) long and short-term maintenance costs for property acquired; and
             2620          (vii) whether the transportation corridor is included as part of:
             2621          (A) the county and municipal master plan; and
             2622          (B) (I) the statewide long range plan; or
             2623          (II) the regional transportation plan of the area metropolitan planning organization if
             2624      one exists for the area.
             2625          (c) The council of governments shall:
             2626          (i) establish a priority list of highway corridor preservation projects within the county;
             2627          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
             2628      approval; and
             2629          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the


             2630      members of the county legislative body.
             2631          (d) A county's council of governments may only submit one priority list described in
             2632      Subsection (7)(c)(i) per calendar year.
             2633          (e) A county legislative body may only consider and approve one priority list described
             2634      in Subsection (7)(c)(i) per calendar year.
             2635          (8) (a) Unless otherwise provided by written agreement with another highway
             2636      authority, the highway authority that holds the deed to the property is responsible for
             2637      maintenance of the property.
             2638          (b) The transfer of ownership for property acquired under this section from one
             2639      highway authority to another shall include a recorded deed for the property and a written
             2640      agreement between the highway authorities.
             2641          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             2642      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             2643      funds under this section.
             2644          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             2645      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             2646      bonds or other obligations.
             2647          (10) (a) A highway authority may not apply for monies under this section to purchase a
             2648      right-of-way for a state highway unless the highway authority has:
             2649          (i) a transportation corridor property acquisition policy or ordinance in effect that
             2650      meets federal requirements for the acquisition of real property or any interests in real property
             2651      under this section; and
             2652          (ii) an access management policy or ordinance in effect that meets the requirements
             2653      under Subsection 72-2-117 (9).
             2654          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             2655      written agreement with the department for the acquisition of real property or any interests in
             2656      real property under this section.
             2657          Section 19. Section 72-2-121 is amended to read:
             2658           72-2-121. County of the First Class State Highway Projects Fund.
             2659          (1) There is created a special revenue fund entitled the County of the First Class State
             2660      Highway Projects Fund.


             2661          (2) The fund consists of monies generated from the following revenue sources:
             2662          (a) any voluntary contributions received for new construction, major renovations, and
             2663      improvements to state highways within a county of the first class;
             2664          (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)(ii)
             2665      deposited in or transferred to the fund;
             2666          (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             2667      and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund;
             2668      and
             2669          (d) a portion of the local option highway construction and transportation corridor
             2670      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
             2671      transferred to the fund.
             2672          (3) (a) The fund shall earn interest.
             2673          (b) All interest earned on fund monies shall be deposited into the fund.
             2674          (4) The executive director may use fund monies only:
             2675          (a) to pay debt service and bond issuance costs for bonds issued under Section
             2676      63B-16-102 ; and
             2677          (b) for right-of-way acquisition, new construction, major renovations, and
             2678      improvements to state highways within a county of the first class and to pay any debt service
             2679      and bond issuance costs related to those projects.
             2680          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
             2681      fund and bond proceeds from bonds issued under Section 63B-16-102 are considered a local
             2682      matching contribution for the purposes described under Section 72-2-123 .
             2683          (6) The additional administrative costs of the department to administer this fund shall
             2684      be paid from the monies in the fund.
             2685          Section 20. Section 72-2-121.2 is enacted to read:
             2686          72-2-121.2. County of the Second Class State Highway Projects Fund.
             2687          (1) As used in this section, "fund" means the County of the Second Class State
             2688      Highway Projects Fund created by this section.
             2689          (2) There is created within the Transportation Fund a special revenue fund known as
             2690      the County of the Second Class State Highway Projects Fund.
             2691          (3) The fund shall be funded by monies collected from:


             2692          (a) any voluntary contributions the department receives for new construction, major
             2693      renovations, and improvements to state highways within a county of the second class; and
             2694          (b) the sales and use tax described in:
             2695          (i) Subsection 59-12-1903 (1)(b)(i);
             2696          (ii) Subsection 59-12-1903 (1)(b)(ii)(A); or
             2697          (iii) Subsection 59-12-1903 (1)(b)(ii)(C)(I) as determined by the county legislative body
             2698      of the county of the second class.
             2699          (4) The department shall make a separate accounting for:
             2700          (a) the revenues described in Subsection (3); and
             2701          (b) each county of the second class for which revenues are deposited into the fund.
             2702          (5) (a) The fund shall earn interest.
             2703          (b) Interest earned on fund monies shall be deposited into the fund.
             2704          (6) The executive director may use fund monies only:
             2705          (a) for right-of-way acquisition, new construction, major renovations, and
             2706      improvements to state highways within a county of the second class in an amount that does not
             2707      exceed the amounts deposited for or allocated to that county of the second class in accordance
             2708      with this section;
             2709          (b) to pay any debt service and bond issuance costs related to a purpose described in
             2710      Subsection (6)(a) in an amount that does not exceed the amounts deposited for or allocated to
             2711      that county of the second class described in Subsection (6)(a) in accordance with this section;
             2712      and
             2713          (c) to pay the costs of the department to administer the fund in an amount not to exceed
             2714      interest earned by the fund monies.
             2715          (7) If interest remains in the fund after the executive director pays the costs of the
             2716      department to administer the fund, the interest shall be:
             2717          (a) allocated to each county of the second class for which revenues are deposited into
             2718      the fund in proportion to the deposits made into the fund for that county of the second class;
             2719      and
             2720          (b) expended for the purposes described in Subsection (6).
             2721          (8) Revenues described in Subsection (3)(b) that are deposited into the fund are
             2722      considered to be a local matching contribution for the purposes described in Section 72-2-123 .


             2723          Section 21. Section 72-10-102 is amended to read:
             2724           72-10-102. Definitions.
             2725          As used in this chapter:
             2726          (1) "Acrobatics" means the intentional maneuvers of an aircraft not necessary to air
             2727      navigation.
             2728          (2) "Aeronautics" means transportation by aircraft, air instruction, the operation, repair,
             2729      or maintenance of aircraft, and the design, operation, repair, or maintenance of airports, or
             2730      other air navigation facilities.
             2731          (3) "Aeronautics instructor" means any individual engaged in giving or offering to give
             2732      instruction in aeronautics, flying, or ground subjects, either with or without:
             2733          (a) compensation or other reward;
             2734          (b) advertising the occupation;
             2735          (c) calling his facilities an air school, or any equivalent term; or
             2736          (d) employing or using other instructors.
             2737          (4) "Aircraft" means any contrivance now known or in the future invented, used, or
             2738      designed for navigation of or flight in the air.
             2739          (5) "Air instruction" means the imparting of aeronautical information by any aviation
             2740      instructor or in any air school or flying club.
             2741          (6) "Airport" means any area of land, water, or both, that:
             2742          (a) is used or is made available for landing and takeoff;
             2743          (b) provides facilities for the shelter, supply, and repair of aircraft, and handling of
             2744      passengers and cargo; [and]
             2745          (c) meets the minimum requirements established by the division as to size and design,
             2746      surface, marking, equipment, and operation; and
             2747          (d) includes all areas shown as part of the airport in the current airport layout plan as
             2748      approved by the Federal Aviation Administration.
             2749          (7) "Airport authority" means a political subdivision of the state, other than a county or
             2750      municipality, that is authorized by statute to operate an airport.
             2751          (8) "Airport operator" means a municipality, county, or airport authority that owns or
             2752      operates a commercial airport.
             2753          (9) (a) "Airport revenue" means:


             2754          (i) all fees, charges, rents, or other payments received by or accruing to an airport
             2755      operator for any of the following reasons:
             2756          (A) revenue from air carriers, tenants, lessees, purchasers of airport properties, airport
             2757      permittees making use of airport property and services, and other parties;
             2758          (B) revenue received from the activities of others or the transfer of rights to others
             2759      relating to the airport, including revenue received:
             2760          (I) for the right to conduct an activity on the airport or to use or occupy airport
             2761      property;
             2762          (II) for the sale, transfer, or disposition of airport real or personal property, or any
             2763      interest in that property, including transfer through a condemnation proceeding;
             2764          (III) for the sale of, or the sale or lease of rights in, mineral, natural, or agricultural
             2765      products or water owned by the airport operator to be taken from the airport; and
             2766          (IV) for the right to conduct an activity on, or for the use or disposition of, real or
             2767      personal property or any interest in real or personal property owned or controlled by the airport
             2768      operator and used for an airport-related purpose but not located on the airport; or
             2769          (C) revenue received from activities conducted by the airport operator whether on or
             2770      off the airport, which is directly connected to the airport operator's ownership or operation of
             2771      the airport; and
             2772          (ii) state and local taxes on aviation fuel.
             2773          (b) "Airport revenue" does not include amounts received by an airport operator as
             2774      passenger facility fees pursuant to 49 U.S.C. Sec. 40117.
             2775          [(8)] (10) "Air school" means any person engaged in giving, offering to give, or
             2776      advertising, representing, or holding himself out as giving, with or without compensation or
             2777      other reward, instruction in aeronautics, flying, or ground subjects, or in more than one of these
             2778      subjects.
             2779          [(9)] (11) "Airworthiness" means conformity with requirements prescribed by the
             2780      Federal Aviation Administration regarding the structure or functioning of aircraft, engine,
             2781      parts, or accessories.
             2782          [(10)] (12) "Antique aircraft" means a civil aircraft that is:
             2783          (a) 30 years old or older, calculated as to include the current year;
             2784          (b) primarily a collector's item and used solely for recreational or display purposes;


             2785          (c) not used for daily or regular transportation; and
             2786          (d) not used for commercial operations.
             2787          [(11)] (13) "Civil aircraft" means any aircraft other than a public aircraft.
             2788          [(12)] (14) "Commercial aircraft" means aircraft used for commercial purposes.
             2789          [(13)] (15) "Commercial airport" means a landing area, landing strip, or airport that
             2790      may be used for commercial operations.
             2791          [(14)] (16) "Commercial flight operator" means a person who conducts commercial
             2792      operations.
             2793          [(15)] (17) "Commercial operations" means:
             2794          (a) any operations of an aircraft for compensation or hire or any services performed
             2795      incidental to the operation of any aircraft for which a fee is charged or compensation is
             2796      received, including the servicing, maintaining, and repairing of aircraft, the rental or charter of
             2797      aircraft, the operation of flight or ground schools, the operation of aircraft for the application or
             2798      distribution of chemicals or other substances, and the operation of aircraft for hunting and
             2799      fishing; or
             2800          (b) the brokering or selling of any of these services; but
             2801          (c) does not include any operations of aircraft as common carriers certificated by the
             2802      federal government or the services incidental to those operations.
             2803          [(16)] (18) "Dealer" means any person who is actively engaged in the business of flying
             2804      for demonstration purposes, or selling or exchanging aircraft, and who has an established place
             2805      of business.
             2806          [(17)] (19) "Division" means the Operations Division in the Department of
             2807      Transportation, created in Section 72-1-204 .
             2808          [(18)] (20) "Experimental aircraft" means:
             2809          (a) any aircraft designated by the Federal Aviation Administration or the military as
             2810      experimental and used solely for the purpose of experiments, or tests regarding the structure or
             2811      functioning of aircraft, engines, or their accessories; and
             2812          (b) any aircraft designated by the Federal Aviation Administration as:
             2813          (i) being custom or amateur built; and
             2814          (ii) used for recreational, educational, or display purposes.
             2815          [(19)] (21) "Flight" means any kind of locomotion by aircraft while in the air.


             2816          [(20)] (22) "Flying club" means five or more persons who for neither profit nor reward
             2817      own, lease, or use one or more aircraft for the purpose of instruction, pleasure, or both.
             2818          [(21)] (23) "Glider" means an aircraft heavier than air, similar to an airplane, but
             2819      without a power plant.
             2820          [(22)] (24) "Mechanic" means a person who constructs, repairs, adjusts, inspects, or
             2821      overhauls aircraft, engines, or accessories.
             2822          [(23)] (25) "Parachute jumper" means any person who has passed the required test for
             2823      jumping with a parachute from an aircraft, and has passed an examination showing that he
             2824      possesses the required physical and mental qualifications for the jumping.
             2825          [(24)] (26) "Parachute rigger" means any person who has passed the required test for
             2826      packing, repairing, and maintaining parachutes.
             2827          [(25)] (27) "Passenger aircraft" means aircraft used for transporting persons, in
             2828      addition to the pilot or crew, with or without their necessary personal belongings.
             2829          [(26)] (28) "Person" means any individual, corporation, limited liability company, or
             2830      association of individuals.
             2831          [(27)] (29) "Pilot" means any person who operates the controls of an aircraft while
             2832      in-flight.
             2833          [(28)] (30) "Primary glider" means any glider that has a gliding angle of less than ten to
             2834      one.
             2835          [(29)] (31) "Public aircraft" means an aircraft used exclusively in the service of any
             2836      government or of any political subdivision, including the government of the United States, of
             2837      the District of Columbia, and of any state, territory, or insular possession of the United States,
             2838      but not including any government-owned aircraft engaged in carrying persons or goods for
             2839      commercial purposes.
             2840          [(30)] (32) "Reckless flying" means the operation or piloting of any aircraft recklessly,
             2841      or in a manner as to endanger the property, life, or body of any person, due regard being given
             2842      to the prevailing weather conditions, field conditions, and to the territory being flown over.
             2843          [(31)] (33) "Registration number" means the number assigned by the Federal Aviation
             2844      Administration to any aircraft, whether or not the number includes a letter or letters.
             2845          [(32)] (34) "Secondary glider" means any glider that has a gliding angle between ten to
             2846      one and 16 to one, inclusive.


             2847          [(33)] (35) "Soaring glider" means any glider that has a gliding angle of more than 16
             2848      to one.
             2849          Section 22. Section 72-10-215 is enacted to read:
             2850          72-10-215. Restrictions on use of airport revenue to finance a fixed guideway.
             2851          An airport operator may not use airport revenue to contribute to the cost of
             2852      constructing, equipping, maintaining, or operating any portion of a fixed guideway as defined
             2853      in Section 59-12-1702 .
             2854          Section 23. Repealer.
             2855          This bill repeals:
             2856          Section 59-12-601, Purpose statement.
             2857          Section 24. Effective dates.
             2858          (1) Except as provided in Subsection (2), this bill takes effect on May 5, 2008.
             2859          (2) The amendments to the following sections take effect on July 1, 2008:
             2860          (a) Section 41-1a-1222 ;
             2861          (b) Section 72-2-117.5 ; and
             2862          (c) Section 72-2-121 .
             2863          Section 25. Coordinating S.B. 245 with H.B. 206 -- Substantive and technical
             2864      amendments.
             2865          If this S.B. 245 and H.B. 206, Tax Amendments, both pass, it is the intent of the
             2866      Legislature that the Office of Legislative Research and General Counsel, in preparing the Utah
             2867      Code database for publication:
             2868          (1) modify Section 59-12-1903 to read:
             2869          " 59-12-1903 . Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             2870      from the tax -- Administration, collection, and enforcement of tax by commission --
             2871      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             2872          (1) (a) Subject to the other provisions of this section and except as provided in
             2873      Subsection (2), beginning on January 1, 2009, a county legislative body of a county of the
             2874      second class may impose a sales and use tax on the transactions:
             2875          (i) described in Subsection 59-12-103 (1); and
             2876          (ii) within the county, including the cities and towns within the county.
             2877          (b) For purposes of Subsection (1)(a), a county legislative body may impose a tax at a


             2878      rate of:
             2879          (i) .10%, to be:
             2880          (A) as determined by the county legislative body, deposited as provided in Subsection
             2881      (4)(c)(i) into the County of the Second Class State Highway Projects Fund created by Section
             2882      72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             2883          (B) as determined by the county legislative body, expended for a project or service
             2884      relating to an airport facility:
             2885          (I) if that airport facility is part of the regional transportation plan of the area
             2886      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2887      and
             2888          (II) for the portion of the project or service that is performed within the county; or
             2889          (C) as determined by the county legislative body, deposited or expended for a
             2890      combination of Subsections (1)(b)(i)(A) and (B); or
             2891          (ii) .25%, to be expended as follows:
             2892          (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
             2893      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             2894      provided in Section 72-2-121.2 ;
             2895          (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
             2896      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             2897      distributed in accordance with Section 72-2-117.5 ; and
             2898          (C) as determined by the county legislative body, .10% to be:
             2899          (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
             2900      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             2901      Section 72-2-121.2 ;
             2902          (II) expended for:
             2903          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
             2904      Highways Act;
             2905          (Bb) a local highway of regional significance; or
             2906          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             2907          (III) expended for a project or service relating to a system for public transit for the
             2908      portion of the project or service that is performed within the county;


             2909          (IV) expended for a project or service relating to a fixed guideway for the portion of
             2910      the project or service that is performed within the county;
             2911          (V) expended for a project or service relating to an airport facility:
             2912          (Aa) if that airport facility is part of the regional transportation plan of the area
             2913      metropolitan planning organization if a metropolitan planning organization exists for the area;
             2914      and
             2915          (Bb) for the portion of the project or service that is performed within the county; or
             2916          (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
             2917      (V).
             2918          (c) If a county legislative body imposes a tax under this part, the county legislative
             2919      body may not impose a tax under Part 17, County Option Sales and Use Tax for Transportation
             2920      Act.
             2921          (d) For purposes of this Subsection (1), the location of a transaction shall be
             2922      determined in accordance with Sections 59-12-211 through 59-12-215 .
             2923          (2) (a) A county legislative body may not impose a tax under this part on:
             2924          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2925      are exempt from taxation under Section 59-12-104 ; or
             2926          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             2927      ingredients.
             2928          (b) A county legislative body imposing a tax under this part shall impose the tax on
             2929      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             2930      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             2931      property other than food and food ingredients.
             2932          (3) To impose a tax under this part, a county legislative body shall obtain approval
             2933      from a majority of the members of the county legislative body.
             2934          (4) (a) Except as provided in Subsection (4)(b) or (c) or (6), the commission shall
             2935      transmit revenues collected within a county from a tax under this part that are required to be
             2936      expended for a purpose described in Subsection (1)(b)(ii)(C):
             2937          (i) to the county legislative body;
             2938          (ii) monthly; and
             2939          (iii) by electronic funds transfer.


             2940          (b) Except as provided in Subsection (6), the commission shall transfer the revenues
             2941      described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
             2942      Chapter 2a, Part 8, Public Transit District Act, if the county legislative body:
             2943          (i) provides written notice to the commission requesting the transfer; and
             2944          (ii) designates the public transit district to which the county legislative body requests
             2945      the commission to transfer the revenues described in Subsection (4)(a).
             2946          (c) Except as provided in Subsection (6), the commission shall deposit revenues
             2947      collected within a county from a tax under this part that:
             2948          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             2949      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             2950          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into
             2951      the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             2952          (iii) a county legislative body determines to expend for a purpose described in
             2953      Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class State Highway
             2954      Projects Fund created by Section 72-2-121.2 if the county legislative body provides written
             2955      notice to the commission requesting the deposit.
             2956          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             2957      collect, and enforce a tax under this part in accordance with:
             2958          (i) the same procedures used to administer, collect, and enforce the tax under:
             2959          (A) Part 1, Tax Collection; or
             2960          (B) Part 2, Local Sales and Use Tax Act; and
             2961          (ii) Chapter 1, General Taxation Policies.
             2962          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             2963          (6) (a) The commission may retain an amount of tax collected under this part of not to
             2964      exceed the lesser of:
             2965          (i) 1.5%; or
             2966          (ii) an amount equal to the cost to the commission of administering this part.
             2967          (b) Any amount the commission retains under Subsection (6)(a) shall be:
             2968          (i) deposited into the Sales and Use Tax Administrative Fees Account; and
             2969          (ii) used as provided in Subsection 59-12-206 (2).
             2970          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,


             2971      a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             2972      repeal, or change shall take effect:
             2973          (A) on the first day of a calendar quarter; and
             2974          (B) after a 90-day period beginning on the date the commission receives notice meeting
             2975      the requirements of Subsection (7)(a)(ii) from the county.
             2976          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             2977          (A) that the county will enact, repeal, or change the rate of a tax under this part;
             2978          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             2979          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             2980          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             2981      (7)(a)(ii)(A), the rate of the tax.
             2982          (b) (i) If the billing period for a transaction begins before the effective date of the
             2983      enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
             2984      tax rate increase shall take effect on the first day of the first billing period that begins after the
             2985      effective date of the enactment of the tax or the tax rate increase.
             2986          (ii) If the billing period for a transaction begins before the effective date of the repeal
             2987      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             2988      decrease shall take effect on the first day of the last billing period that began before the
             2989      effective date of the repeal of the tax or the tax rate decrease.
             2990          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             2991      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2992      described in Subsection (7)(a)(i) takes effect:
             2993          (A) on the first day of a calendar quarter; and
             2994          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2995      rate of the tax under Subsection (7)(a)(i).
             2996          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2997      the commission may by rule define the term "catalogue sale."
             2998          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             2999      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             3000      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             3001      effect:


             3002          (A) on the first day of a calendar quarter; and
             3003          (B) after a 90-day period beginning on the date the commission receives notice meeting
             3004      the requirements of Subsection (7)(d)(ii) from the county that annexes the annexing area.
             3005          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             3006          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment,
             3007      repeal, or change in the rate of a tax under this part for the annexing area;
             3008          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             3009          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             3010          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             3011      (7)(d)(ii)(A), the rate of the tax.
             3012          (e) (i) If the billing period for a transaction begins before the effective date of the
             3013      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             3014      rate increase shall take effect on the first day of the first billing period that begins after the
             3015      effective date of the enactment of the tax or the tax rate increase.
             3016          (ii) If the billing period for a transaction begins before the effective date of the repeal
             3017      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             3018      decrease shall take effect on the first day of the last billing period that began before the
             3019      effective date of the repeal of the tax or the tax rate decrease.
             3020          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             3021      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             3022      described in Subsection (7)(d)(i) takes effect:
             3023          (A) on the first day of a calendar quarter; and
             3024          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             3025      rate under Subsection (7)(d)(i).
             3026          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             3027      the commission may by rule define the term "catalogue sale."";
             3028