Download Zipped Introduced WordPerfect HB0065.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 65

             1     

REPORTING OF CERTAIN TRANSACTIONS

             2     
EXEMPT FROM SALES AND USE TAXES

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Julie Fisher

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      Committee Note:
             10          The Revenue and Taxation Interim Committee recommended this bill.
             11      General Description:
             12          This bill amends the Penalties, Interest, and Confidentiality of Information part and the
             13      Sales and Use Tax Act relating to reporting requirements for certain transactions
             14      exempt from sales and use taxes.
             15      Highlighted Provisions:
             16          This bill:
             17          .    repeals the requirement for an owner or purchaser to report transactions exempt
             18      from state and local sales and use taxes with respect to:
             19              .    exemptions for certain machinery, equipment, or parts; and
             20              .    the exemption relating to semiconductors;
             21          .    repeals penalty provisions relating to the transaction reporting requirements that are
             22      repealed;
             23          .    repeals the requirement that the State Tax Commission provide to the Legislature
             24      the total amount of sales or uses:
             25              .    exempt under the exemption relating to semiconductors; and
             26              .    reported to the commission in accordance with the transaction reporting
             27      requirements that are repealed;


             28          .    requires the State Tax Commission to estimate the cost of the exemptions for
             29      certain machinery, equipment, or parts for purposes of reviewing the exemptions
             30      and reporting to the Revenue and Taxation Interim Committee; and
             31          .    makes technical changes.
             32      Monies Appropriated in this Bill:
             33          None
             34      Other Special Clauses:
             35          This bill takes effect on July 1, 2009.
             36      Utah Code Sections Affected:
             37      AMENDS:
             38          59-1-401, as last amended by Laws of Utah 2008, Chapter 382
             39          59-1-403, as last amended by Laws of Utah 2008, Chapters 3, 382, and 384
             40          59-12-104, as last amended by Laws of Utah 2008, Second Special Session, Chapter 2
             41          62A-11-328, as last amended by Laws of Utah 2007, Chapter 250
             42      REPEALS:
             43          59-12-105, as last amended by Laws of Utah 2008, Chapter 384
             44     
             45      Be it enacted by the Legislature of the state of Utah:
             46          Section 1. Section 59-1-401 is amended to read:
             47           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             48      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             49      interest.
             50          (1) As used in this section:
             51          (a) (i) "Nonqualifying obligation" means a charge, fee, payment, or tax administered by
             52      the commission.
             53          (ii) "Nonqualifying obligation" does not include:
             54          (A) beginning on the phase I activation date, a phase I obligation; or
             55          (B) beginning on the phase II activation date, a phase II obligation.
             56          (b) "Phase I activation date" means the earlier of:
             57          (i) the day on which the commission's GenTax system is activated to administer all
             58      phase I obligations; or


             59          (ii) May 1, 2008.
             60          (c) "Phase I obligation" means:
             61          (i) a fee under Section 19-6-808 ;
             62          (ii) a tax under Chapter 10, Part 1, Determination and Reporting of Tax Liability and
             63      Information;
             64          (iii) a tax under Chapter 10, Part 2, Trusts and Estates;
             65          (iv) a tax under Chapter 10, Part 12, Single Rate Individual Income Tax Act; or
             66          (v) a tax under Chapter 12, Sales and Use Tax Act.
             67          (d) "Phase II activation date" means the earlier of:
             68          (i) the day on which the commission's GenTax system is activated to administer all
             69      phase II obligations; or
             70          (ii) May 4, 2009.
             71          (e) (i) "Phase II obligation" means:
             72          (A) a payment under Chapter 6, Mineral Production Tax Withholding;
             73          (B) a tax under Chapter 7, Corporate Franchise and Income Taxes;
             74          (C) a payment under Chapter 10, Part 4, Withholding of Tax; or
             75          (D) a tax paid on a return filed in accordance with Section 59-10-507 .
             76          (ii) "Phase II obligation" does not include a payment of estimated tax under Section
             77      59-7-504 .
             78          (2) (a) The due date for filing a return is:
             79          (i) if the person filing the return is not allowed by law an extension of time for filing
             80      the return, the day on which the return is due as provided by law; or
             81          (ii) if the person filing the return is allowed by law an extension of time for filing the
             82      return, the last day of that extension of time.
             83          (b) (i) A penalty in the amount described in Subsection (2)(b)(ii) is imposed if:
             84          (A) a person is required to file a return with respect to a nonqualifying obligation; and
             85          (B) the person described in Subsection (2)(b)(i)(A) files the return after the due date
             86      described in Subsection (2)(a).
             87          (ii) For purposes of Subsection (2)(b)(i), the penalty is an amount equal to the greater
             88      of:
             89          (A) $20; or


             90          (B) 10% of the unpaid nonqualifying obligation due on the return.
             91          (c) (i) A penalty in the amount described in Subsection (2)(c)(ii) is imposed if a person:
             92          (A) (I) is required to file a return:
             93          (Aa) on or after the phase I activation date; and
             94          (Bb) with respect to a phase I obligation; and
             95          (II) files the return after the due date described in Subsection (2)(a); or
             96          (B) (I) is required to file a return:
             97          (Aa) on or after the phase II activation date; and
             98          (Bb) with respect to a phase II obligation; and
             99          (II) files the return after the due date described in Subsection (2)(a).
             100          (ii) For purposes of Subsection (2)(c)(i), the penalty is an amount equal to the greater
             101      of:
             102          (A) $20; or
             103          (B) (I) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             104      the return is filed no later than five days after the due date described in Subsection (2)(a);
             105          (II) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             106      return is filed more than five days after the due date but no later than 15 days after the due date
             107      described in Subsection (2)(a); or
             108          (III) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             109      return is filed more than 15 days after the due date described in Subsection (2)(a).
             110          (d) This Subsection (2) does not apply to:
             111          (i) an amended return; or
             112          (ii) a return with no tax due.
             113          (3) (a) If a person fails to pay a tax, fee, or charge due, the person is subject to a penalty
             114      as provided in this Subsection (3).
             115          (b) (i) A penalty in the amount described in Subsection (3)(b)(ii) is imposed if:
             116          (A) a person files a return with respect to a nonqualifying obligation on or before the
             117      due date for filing a return described in Subsection (2)(a), but fails to pay the nonqualifying
             118      obligation due on the return on or before that due date;
             119          (B) a person:
             120          (I) is subject to a penalty under Subsection (2)(b); and


             121          (II) fails to pay a nonqualifying obligation due on a return within a 90-day period after
             122      the due date for filing a return described in Subsection (2)(a);
             123          (C) a person:
             124          (I) is mailed a notice of deficiency; and
             125          (II) within a 30-day period after the day on which the notice of deficiency described in
             126      Subsection (3)(b)(i)(C)(I) is mailed:
             127          (Aa) does not file a petition for redetermination or a request for agency action; and
             128          (Bb) fails to pay a nonqualifying obligation due on a return;
             129          (D) (I) the commission:
             130          (Aa) issues an order constituting final agency action resulting from a timely filed
             131      petition for redetermination or a timely filed request for agency action; or
             132          (Bb) is considered to have denied a request for reconsideration under Subsection
             133      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             134      request for agency action; and
             135          (II) a person fails to pay a nonqualifying obligation due on a return within a 30-day
             136      period after the date the commission:
             137          (Aa) issues the order constituting final agency action described in Subsection
             138      (3)(b)(i)(D)(I)(Aa); or
             139          (Bb) is considered to have denied the request for reconsideration described in
             140      Subsection (3)(b)(i)(D)(I)(Bb); or
             141          (E) a person fails to pay a nonqualifying obligation within a 30-day period after the
             142      date of a final judicial decision resulting from a timely filed petition for judicial review.
             143          (ii) For purposes of Subsection (3)(b)(i), the penalty is an amount equal to the greater
             144      of:
             145          (A) $20; or
             146          (B) 10% of the unpaid nonqualifying obligation due on the return.
             147          (c) (i) This Subsection (3)(c) applies to a penalty:
             148          (A) imposed on or after the phase I activation date with respect to a phase I obligation;
             149      or
             150          (B) imposed on or after the phase II activation date with respect to a phase II
             151      obligation.


             152          (ii) (A) The penalty described in Subsection (3)(c)(ii)(B) applies if a person:
             153          (I) with respect to a phase I obligation:
             154          (Aa) files a return on or before the due date for filing a return described in Subsection
             155      (2)(a); and
             156          (Bb) fails to pay the phase I obligation due on the return on or before the due date
             157      described in Subsection (2)(a); or
             158          (II) with respect to a phase II obligation:
             159          (Aa) files a return on or before the due date for filing a return described in Subsection
             160      (2)(a); and
             161          (Bb) fails to pay the phase II obligation due on the return on or before the due date
             162      described in Subsection (2)(a).
             163          (B) For purposes of Subsection (3)(c)(ii)(A), the penalty is an amount equal to the
             164      greater of:
             165          (I) $20; or
             166          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             167      the phase I obligation or phase II obligation due on the return is paid no later than five days
             168      after the due date for filing a return described in Subsection (2)(a);
             169          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             170      phase I obligation or phase II obligation due on the return is paid more than five days after the
             171      due date for filing a return described in Subsection (2)(a) but no later than 15 days after that
             172      due date; or
             173          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             174      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             175      due date for filing a return described in Subsection (2)(a).
             176          (iii) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iii)(B) if the
             177      person:
             178          (I) is subject to a penalty under Subsection (2)(c); and
             179          (II) fails to pay a phase I obligation or phase II obligation due on a return within a
             180      90-day period after the due date for filing a return described in Subsection (2)(a).
             181          (B) For purposes of Subsection (3)(c)(iii)(A), the penalty is an amount equal to the
             182      greater of:


             183          (I) $20; or
             184          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             185      the phase I obligation or phase II obligation due on the return is paid no later than five days
             186      after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II);
             187          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             188      phase I obligation or phase II obligation due on the return is paid more than five days after the
             189      last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II) but no later than 15 days
             190      after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II); or
             191          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             192      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             193      last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II).
             194          (iv) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iv)(B) if the
             195      person:
             196          (I) is mailed a notice of deficiency; and
             197          (II) within a 30-day period after the day on which the notice of deficiency described in
             198      Subsection (3)(c)(iv)(A)(I) is mailed:
             199          (Aa) does not file a petition for redetermination or a request for agency action; and
             200          (Bb) fails to pay a phase I obligation or phase II obligation due on a return.
             201          (B) For purposes of Subsection (3)(c)(iv)(A), the penalty is an amount equal to the
             202      greater of:
             203          (I) $20; or
             204          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             205      the phase I obligation or phase II obligation due on the return is paid no later than five days
             206      after the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II);
             207          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             208      phase I obligation or phase II obligation due on the return is paid more than five days after the
             209      last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II) but no later than 15 days
             210      after the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II); or
             211          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             212      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             213      last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II).


             214          (v) (A) A person is subject to a penalty as provided in Subsection (3)(c)(v)(B) if:
             215          (I) the commission:
             216          (Aa) issues an order constituting final agency action resulting from a timely filed
             217      petition for redetermination or a timely filed request for agency action; or
             218          (Bb) is considered to have denied a request for reconsideration under Subsection
             219      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             220      request for agency action; and
             221          (II) the person fails to pay a phase I obligation or phase II obligation due on a return
             222      within a 30-day period after the date the commission:
             223          (Aa) issues the order constituting final agency action described in Subsection
             224      (3)(c)(v)(A)(I)(Aa); or
             225          (Bb) is considered to have denied the request for reconsideration described in
             226      Subsection (3)(c)(v)(A)(I)(Bb).
             227          (B) For purposes of Subsection (3)(c)(v)(A), the penalty is an amount equal to the
             228      greater of:
             229          (I) $20; or
             230          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             231      the phase I obligation or phase II obligation due on the return is paid no later than five days
             232      after the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II);
             233          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             234      phase I obligation or phase II obligation due on the return is paid more than five days after the
             235      last day of the 30-day period described in Subsection (3)(c)(v)(A)(II) but no later than 15 days
             236      after the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II); or
             237          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             238      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             239      last day of the 30-day period described in Subsection (3)(c)(v)(A)(II).
             240          (vi) (A) A person is subject to a penalty as provided in Subsection (3)(c)(vi)(B) if
             241      within a 30-day period after the date of a final judicial decision resulting from a timely filed
             242      petition for judicial review, the person fails to pay a phase I obligation or phase II obligation.
             243          (B) For purposes of Subsection (3)(c)(vi)(A), the penalty is an amount equal to the
             244      greater of:


             245          (I) $20; or
             246          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             247      the phase I obligation or phase II obligation due on the return is paid no later than five days
             248      after the last day of the 30-day period described in Subsection (3)(c)(vi)(A);
             249          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             250      phase I obligation or phase II obligation due on the return is paid more than five days after the
             251      last day of the 30-day period described in Subsection (3)(c)(vi)(A) but no later than 15 days
             252      after the last day of the 30-day period described in Subsection (3)(c)(vi)(A); or
             253          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             254      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             255      last day of the 30-day period described in Subsection (3)(c)(vi)(A).
             256          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
             257      quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 , there
             258      shall be added a penalty in an amount determined by applying the interest rate provided under
             259      Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
             260      of the underpayment.
             261          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             262      excess of the required installment over the amount, if any, of the installment paid on or before
             263      the due date for the installment.
             264          (ii) The period of the underpayment shall run from the due date for the installment to
             265      whichever of the following dates is the earlier:
             266          (A) the original due date of the tax return, without extensions, for the taxable year; or
             267          (B) with respect to any portion of the underpayment, the date on which that portion is
             268      paid.
             269          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             270      against unpaid required installments in the order in which the installments are required to be
             271      paid.
             272          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             273      person allowed by law an extension of time for filing a corporate franchise or income tax return
             274      under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
             275      under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in


             276      Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
             277      including the extension of time, the person fails to pay:
             278          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             279      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b); or
             280          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             281      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             282          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             283      extension of time for filing the return is an amount equal to 2% of the unpaid tax due on the
             284      return.
             285          (6) If a person does not file a return within an extension of time allowed by Section
             286      59-7-505 or 59-10-516 , the person:
             287          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             288          (b) is subject to a penalty in an amount equal to the sum of:
             289          (i) a late file penalty in an amount equal to the greater of:
             290          (A) $20; or
             291          (B) 10% of the unpaid tax due on the return; and
             292          (ii) a late pay penalty in an amount equal to the greater of:
             293          (A) $20; or
             294          (B) 10% of the unpaid tax due on the return.
             295          (7) (a) Additional penalties for underpayments of tax are as provided in this Subsection
             296      (7)(a).
             297          (i) Except as provided in Subsection (7)(c), if any underpayment of tax is due to
             298      negligence, the penalty is 10% of the underpayment.
             299          (ii) Except as provided in Subsection (7)(d), if any underpayment of tax is due to
             300      intentional disregard of law or rule, the penalty is 15% of the underpayment.
             301          (iii) For intent to evade the tax, the penalty is the greater of $500 per period or 50% of
             302      the tax due.
             303          (iv) If the underpayment is due to fraud with intent to evade the tax, the penalty is the
             304      greater of $500 per period or 100% of the underpayment.
             305          (b) If the commission determines that a person is liable for a penalty imposed under
             306      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the taxpayer of the proposed


             307      penalty.
             308          (i) The notice of proposed penalty shall:
             309          (A) set forth the basis of the assessment; and
             310          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             311          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             312      penalty is proposed may:
             313          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             314      or
             315          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             316          (iii) Any person against whom a penalty has been proposed in accordance with this
             317      Subsection (7) may contest the proposed penalty by filing a petition for an adjudicative
             318      proceeding with the commission.
             319          (iv) (A) If the commission determines that a person is liable for a penalty under this
             320      Subsection (7), the commission shall assess the penalty and give notice and demand for
             321      payment.
             322          (B) The notice and demand for payment described in Subsection (7)(b)(iv)(A) shall be
             323      mailed by certified mail, postage prepaid, to the person's last-known address.
             324          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             325      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             326          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             327      determining that:
             328          (A) the seller meets one or more of the criteria described in Subsection
             329      59-12-107 (1)(a); and
             330          (B) the commission or a county, city, or town may require the seller to collect a tax
             331      under Subsection 59-12-103 (2)(a) or (b); or
             332          (ii) the commission issues a final unappealable administrative order determining that:
             333          (A) the seller meets one or more of the criteria described in Subsection
             334      59-12-107 (1)(a); and
             335          (B) the commission or a county, city, or town may require the seller to collect a tax
             336      under Subsection 59-12-103 (2)(a) or (b).
             337          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not


             338      subject to the penalty under Subsection (7)(a)(ii) if:
             339          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             340      determining that:
             341          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             342      and
             343          (II) the commission or a county, city, or town may require the seller to collect a tax
             344      under Subsection 59-12-103 (2)(a) or (b); or
             345          (B) the commission issues a final unappealable administrative order determining that:
             346          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             347      and
             348          (II) the commission or a county, city, or town may require the seller to collect a tax
             349      under Subsection 59-12-103 (2)(a) or (b); and
             350          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             351      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             352      establishment of new law.
             353          (8) [Except as provided in Section 59-12-105 , the] The penalty for failure to file an
             354      information return, information report, or a complete supporting schedule is $50 for each
             355      information return, information report, or supporting schedule up to a maximum of $1,000.
             356          (9) If any taxpayer, in furtherance of a frivolous position, has a prima facie intent to
             357      delay or impede administration of the tax law and files a purported return that fails to contain
             358      information from which the correctness of reported tax liability can be determined or that
             359      clearly indicates that the tax liability shown must be substantially incorrect, the penalty is $500.
             360          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             361      Subsection 59-12-108 (1)(a)(ii):
             362          (i) is subject to a penalty described in Subsection (2); and
             363          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             364      allowable under Subsection 59-12-108 (2).
             365          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             366      required by Subsection 59-12-108 (1)(a)(ii)(B):
             367          (i) is subject to a penalty described in Subsection (2); and
             368          (ii) may not retain the percentage of sales and use taxes that would otherwise be


             369      allowable under Subsection 59-12-108 (2).
             370          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
             371          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             372      following documents:
             373          (A) a return;
             374          (B) an affidavit;
             375          (C) a claim; or
             376          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             377          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
             378      will be used in connection with any material matter administered by the commission; and
             379          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             380      with any material matter administered by the commission, would result in an understatement of
             381      another person's liability for a tax, fee, or charge administered by the commission.
             382          (b) The following acts apply to Subsection (11)(a)(i):
             383          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             384          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             385          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             386          (iv) advising in the preparation or presentation of any portion of a document described
             387      in Subsection (11)(a)(i);
             388          (v) aiding in the preparation or presentation of any portion of a document described in
             389      Subsection (11)(a)(i);
             390          (vi) assisting in the preparation or presentation of any portion of a document described
             391      in Subsection (11)(a)(i); or
             392          (vii) counseling in the preparation or presentation of any portion of a document
             393      described in Subsection (11)(a)(i).
             394          (c) For purposes of Subsection (11)(a), the penalty:
             395          (i) shall be imposed by the commission;
             396          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             397      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             398          (iii) is in addition to any other penalty provided by law.
             399          (d) The commission may seek a court order to enjoin a person from engaging in


             400      conduct that is subject to a penalty under this Subsection (11).
             401          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             402      commission may make rules prescribing the documents that are similar to Subsections
             403      (11)(a)(i)(A) through (C).
             404          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             405      provided in Subsections (12)(b) through (e).
             406          (b) (i) Any person who is required by this title or any laws the commission administers
             407      or regulates to register with or obtain a license or permit from the commission, who operates
             408      without having registered or secured a license or permit, or who operates when the registration,
             409      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             410          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             411      penalty may not:
             412          (A) be less than $500; or
             413          (B) exceed $1,000.
             414          (c) (i) Any person who, with intent to evade any tax or requirement of this title or any
             415      lawful requirement of the commission, fails to make, render, sign, or verify any return or to
             416      supply any information within the time required by law, or who makes, renders, signs, or
             417      verifies any false or fraudulent return or statement, or who supplies any false or fraudulent
             418      information, is guilty of a third degree felony.
             419          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             420      penalty may not:
             421          (A) be less than $1,000; or
             422          (B) exceed $5,000.
             423          (d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax or
             424      the payment of a tax is, in addition to other penalties provided by law, guilty of a second degree
             425      felony.
             426          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             427      penalty may not:
             428          (A) be less than $1,500; or
             429          (B) exceed $25,000.
             430          (e) (i) A person is guilty of a second degree felony if that person commits an act:


             431          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             432      documents:
             433          (I) a return;
             434          (II) an affidavit;
             435          (III) a claim; or
             436          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             437          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
             438      Subsection (12)(e)(i)(A):
             439          (I) is false or fraudulent as to any material matter; and
             440          (II) could be used in connection with any material matter administered by the
             441      commission.
             442          (ii) The following acts apply to Subsection (12)(e)(i):
             443          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             444          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             445          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             446          (D) advising in the preparation or presentation of any portion of a document described
             447      in Subsection (12)(e)(i)(A);
             448          (E) aiding in the preparation or presentation of any portion of a document described in
             449      Subsection (12)(e)(i)(A);
             450          (F) assisting in the preparation or presentation of any portion of a document described
             451      in Subsection (12)(e)(i)(A); or
             452          (G) counseling in the preparation or presentation of any portion of a document
             453      described in Subsection (12)(e)(i)(A).
             454          (iii) This Subsection (12)(e) applies:
             455          (A) regardless of whether the person for which the document described in Subsection
             456      (12)(e)(i)(A) is prepared or presented:
             457          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             458          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
             459          (B) in addition to any other penalty provided by law.
             460          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             461      penalty may not:


             462          (A) be less than $1,500; or
             463          (B) exceed $25,000.
             464          (v) The commission may seek a court order to enjoin a person from engaging in
             465      conduct that is subject to a penalty under this Subsection (12)(e).
             466          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             467      the commission may make rules prescribing the documents that are similar to Subsections
             468      (12)(e)(i)(A)(I) through (III).
             469          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             470      the later of six years:
             471          (i) from the date the tax should have been remitted; or
             472          (ii) after the day on which the person commits the criminal offense.
             473          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             474      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             475      this part.
             476          Section 2. Section 59-1-403 is amended to read:
             477           59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
             478          (1) (a) Any of the following may not divulge or make known in any manner any
             479      information gained by that person from any return filed with the commission:
             480          (i) a tax commissioner;
             481          (ii) an agent, clerk, or other officer or employee of the commission; or
             482          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
             483      town.
             484          (b) An official charged with the custody of a return filed with the commission is not
             485      required to produce the return or evidence of anything contained in the return in any action or
             486      proceeding in any court, except:
             487          (i) in accordance with judicial order;
             488          (ii) on behalf of the commission in any action or proceeding under:
             489          (A) this title; or
             490          (B) other law under which persons are required to file returns with the commission;
             491          (iii) on behalf of the commission in any action or proceeding to which the commission
             492      is a party; or


             493          (iv) on behalf of any party to any action or proceeding under this title if the report or
             494      facts shown by the return are directly involved in the action or proceeding.
             495          (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
             496      admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
             497      pertinent to the action or proceeding.
             498          (2) This section does not prohibit:
             499          (a) a person or that person's duly authorized representative from receiving a copy of
             500      any return or report filed in connection with that person's own tax;
             501          (b) the publication of statistics as long as the statistics are classified to prevent the
             502      identification of particular reports or returns; and
             503          (c) the inspection by the attorney general or other legal representative of the state of the
             504      report or return of any taxpayer:
             505          (i) who brings action to set aside or review a tax based on the report or return;
             506          (ii) against whom an action or proceeding is contemplated or has been instituted under
             507      this title; or
             508          (iii) against whom the state has an unsatisfied money judgment.
             509          (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
             510      commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
             511      Rulemaking Act, provide for a reciprocal exchange of information with:
             512          (i) the United States Internal Revenue Service; or
             513          (ii) the revenue service of any other state.
             514          (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             515      corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
             516      Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
             517      other written statements with the federal government, any other state, any of the political
             518      subdivisions of another state, or any political subdivision of this state, except as limited by
             519      Sections 59-12-209 and 59-12-210 , if the political subdivision, other state, or the federal
             520      government grant substantially similar privileges to this state.
             521          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             522      corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
             523      Utah Administrative Rulemaking Act, provide for the issuance of information concerning the


             524      identity and other information of taxpayers who have failed to file tax returns or to pay any tax
             525      due.
             526          (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
             527      Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
             528      requested by the executive secretary, any records, returns, or other information filed with the
             529      commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
             530      regarding the environmental assurance program participation fee.
             531          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
             532      provide that person sales and purchase volume data reported to the commission on a report,
             533      return, or other information filed with the commission under:
             534          (i) Chapter 13, Part 2, Motor Fuel; or
             535          (ii) Chapter 13, Part 4, Aviation Fuel.
             536          (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
             537      as defined in Section 59-22-202 , the commission shall report to the manufacturer:
             538          (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             539      manufacturer and reported to the commission for the previous calendar year under Section
             540      59-14-407 ; and
             541          (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             542      manufacturer for which a tax refund was granted during the previous calendar year under
             543      Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
             544          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
             545      distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
             546      from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
             547          (h) Notwithstanding Subsection (1), the commission may:
             548          (i) provide to the Division of Consumer Protection within the Department of
             549      Commerce and the attorney general data:
             550          (A) reported to the commission under Section 59-14-212 ; or
             551          (B) related to a violation under Section 59-14-211 ; and
             552          (ii) upon request provide to any person data reported to the commission under
             553      Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
             554          (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee


             555      of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning
             556      and Budget, provide to the committee or office the total amount of revenues collected by the
             557      commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
             558      specified by the committee or office.
             559          [(j) Notwithstanding Subsection (1), the commission shall at the request of the
             560      Legislature provide to the Legislature the total amount of sales or uses exempt under
             561      Subsection 59-12-104 (46) reported to the commission in accordance with Section 59-12-105 .]
             562          [(k)] (j) Notwithstanding Subsection (1), the commission shall make the directory
             563      required by Section 59-14-603 available for public inspection.
             564          [(l)] (k) Notwithstanding Subsection (1), the commission may share information with
             565      federal, state, or local agencies as provided in Subsection 59-14-606 (3).
             566          [(m)] (l) (i) Notwithstanding Subsection (1), the commission shall provide the Office
             567      of Recovery Services within the Department of Human Services any relevant information
             568      obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
             569      who has become obligated to the Office of Recovery Services.
             570          (ii) The information described in Subsection (3)[(m)](l)(i) may be provided by the
             571      Office of Recovery Services to any other state's child support collection agency involved in
             572      enforcing that support obligation.
             573          [(n)] (m) (i) Notwithstanding Subsection (1), upon request from the state court
             574      administrator, the commission shall provide to the state court administrator, the name, address,
             575      telephone number, county of residence, and Social Security number on resident returns filed
             576      under Chapter 10, Individual Income Tax Act.
             577          (ii) The state court administrator may use the information described in Subsection
             578      (3)[(n)](m)(i) only as a source list for the master jury list described in Section 78B-1-106 .
             579          [(o)] (n) Notwithstanding Subsection (1), the commission shall at the request of a
             580      committee, commission, or task force of the Legislature provide to the committee, commission,
             581      or task force of the Legislature any information relating to a tax imposed under Chapter 9,
             582      Taxation of Admitted Insurers, relating to the study required by Section 59-9-101 .
             583          [(p)] (o) (i) As used in this Subsection (3)[(p)](o), "office" means the:
             584          (A) Office of the Legislative Fiscal Analyst; or
             585          (B) Office of Legislative Research and General Counsel.


             586          (ii) Notwithstanding Subsection (1) and except as provided in Subsection
             587      (3)[(p)](o)(iii), the commission shall at the request of an office provide to the office all
             588      information:
             589          (A) gained by the commission; and
             590          (B) required to be attached to or included in returns filed with the commission.
             591          (iii) (A) An office may not request and the commission may not provide to an office a
             592      person's:
             593          (I) address;
             594          (II) name;
             595          (III) Social Security number; or
             596          (IV) taxpayer identification number.
             597          (B) The commission shall in all instances protect the privacy of a person as required by
             598      Subsection (3)[(p)](o)(iii)(A).
             599          (iv) An office may provide information received from the commission in accordance
             600      with this Subsection (3)[(p)](o) only:
             601          (A) as:
             602          (I) a fiscal estimate;
             603          (II) fiscal note information; or
             604          (III) statistical information; and
             605          (B) if the information is classified to prevent the identification of a particular return.
             606          (v) (A) A person may not request information from an office under Title 63G, Chapter
             607      2, Government Records Access and Management Act, or this section, if that office received the
             608      information from the commission in accordance with this Subsection (3)[(p)](o).
             609          (B) An office may not provide to a person that requests information in accordance with
             610      Subsection (3)[(p)](o)(v)(A) any information other than the information the office provides in
             611      accordance with Subsection (3)[(p)](o)(iv).
             612          [(q)] (p) Notwithstanding Subsection (1), the commission may provide to the
             613      governing board of the agreement or a taxing official of another state, the District of Columbia,
             614      the United States, or a territory of the United States:
             615          (i) the following relating to an agreement sales and use tax:
             616          (A) information contained in a return filed with the commission;


             617          (B) information contained in a report filed with the commission;
             618          (C) a schedule related to Subsection (3)[(q)](p)(i)(A) or (B); or
             619          (D) a document filed with the commission; or
             620          (ii) a report of an audit or investigation made with respect to an agreement sales and
             621      use tax.
             622          (4) (a) Reports and returns shall be preserved for at least three years.
             623          (b) After the three-year period provided in Subsection (4)(a) the commission may
             624      destroy a report or return.
             625          (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
             626          (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
             627      the person shall be dismissed from office and be disqualified from holding public office in this
             628      state for a period of five years thereafter.
             629          (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
             630      accordance with Subsection (3)[(p)](o)(iii) or a person that requests information in accordance
             631      with Subsection (3)[(p)](o)(v):
             632          (i) is not guilty of a class A misdemeanor; and
             633          (ii) is not subject to:
             634          (A) dismissal from office in accordance with Subsection (5)(b); or
             635          (B) disqualification from holding public office in accordance with Subsection (5)(b).
             636          (6) Except as provided in Section 59-1-404 , this part does not apply to the property tax.
             637          Section 3. Section 59-12-104 is amended to read:
             638           59-12-104. Exemptions.
             639          The following sales and uses are exempt from the taxes imposed by this chapter:
             640          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             641      under Chapter 13, Motor and Special Fuel Tax Act;
             642          (2) sales to the state, its institutions, and its political subdivisions; however, this
             643      exemption does not apply to sales of:
             644          (a) construction materials except:
             645          (i) construction materials purchased by or on behalf of institutions of the public
             646      education system as defined in Utah Constitution Article X, Section 2, provided the
             647      construction materials are clearly identified and segregated and installed or converted to real


             648      property which is owned by institutions of the public education system; and
             649          (ii) construction materials purchased by the state, its institutions, or its political
             650      subdivisions which are installed or converted to real property by employees of the state, its
             651      institutions, or its political subdivisions; or
             652          (b) tangible personal property in connection with the construction, operation,
             653      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             654      providing additional project capacity, as defined in Section 11-13-103 ;
             655          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             656          (i) the proceeds of each sale do not exceed $1; and
             657          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             658      the cost of the item described in Subsection (3)(b) as goods consumed; and
             659          (b) Subsection (3)(a) applies to:
             660          (i) food and food ingredients; or
             661          (ii) prepared food;
             662          (4) sales of the following to a commercial airline carrier for in-flight consumption:
             663          (a) food and food ingredients;
             664          (b) prepared food; or
             665          (c) services related to Subsection (4)(a) or (b);
             666          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             667      and equipment:
             668          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             669      North American Industry Classification System of the federal Executive Office of the
             670      President, Office of Management and Budget; and
             671          (II) for:
             672          (Aa) installation in an aircraft, including services relating to the installation of parts or
             673      equipment in the aircraft;
             674          (Bb) renovation of an aircraft; or
             675          (Cc) repair of an aircraft; or
             676          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             677      commerce; or
             678          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an


             679      aircraft operated by a common carrier in interstate or foreign commerce; and
             680          (b) notwithstanding the time period of Subsection 59-12-110 (2) for filing for a refund,
             681      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             682      refund:
             683          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             684          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             685          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             686      the sale prior to filing for the refund;
             687          (iv) for sales and use taxes paid under this chapter on the sale;
             688          (v) in accordance with Section 59-12-110 ; and
             689          (vi) subject to any extension allowed for filing for a refund under Section 59-12-110 , if
             690      the person files for the refund on or before September 30, 2011;
             691          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             692      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             693      exhibitor, distributor, or commercial television or radio broadcaster;
             694          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             695      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             696      washing of tangible personal property;
             697          (b) if a seller that sells at the same business location assisted cleaning or washing of
             698      tangible personal property and cleaning or washing of tangible personal property that is not
             699      assisted cleaning or washing of tangible personal property, the exemption described in
             700      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             701      or washing of the tangible personal property; and
             702          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             703      Utah Administrative Rulemaking Act, the commission may make rules:
             704          (i) governing the circumstances under which sales are at the same business location;
             705      and
             706          (ii) establishing the procedures and requirements for a seller to separately account for
             707      sales of assisted cleaning or washing of tangible personal property;
             708          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             709      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are


             710      fulfilled;
             711          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             712      this state if the vehicle is:
             713          (a) not registered in this state; and
             714          (b) (i) not used in this state; or
             715          (ii) used in this state:
             716          (A) if the vehicle is not used to conduct business, for a time period that does not
             717      exceed the longer of:
             718          (I) 30 days in any calendar year; or
             719          (II) the time period necessary to transport the vehicle to the borders of this state; or
             720          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             721      the vehicle to the borders of this state;
             722          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             723          (i) the item is intended for human use; and
             724          (ii) (A) a prescription was issued for the item; or
             725          (B) the item was purchased by a hospital or other medical facility; and
             726          (b) (i) Subsection (10)(a) applies to:
             727          (A) a drug;
             728          (B) a syringe; or
             729          (C) a stoma supply; and
             730          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             731      commission may by rule define the terms:
             732          (A) "syringe"; or
             733          (B) "stoma supply";
             734          (11) sales or use of property, materials, or services used in the construction of or
             735      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             736          (12) (a) sales of an item described in Subsection (12)(c) served by:
             737          (i) the following if the item described in Subsection (12)(c) is not available to the
             738      general public:
             739          (A) a church; or
             740          (B) a charitable institution;


             741          (ii) an institution of higher education if:
             742          (A) the item described in Subsection (12)(c) is not available to the general public; or
             743          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             744      offered by the institution of higher education; or
             745          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             746          (i) a medical facility; or
             747          (ii) a nursing facility; and
             748          (c) Subsections (12)(a) and (b) apply to:
             749          (i) food and food ingredients;
             750          (ii) prepared food; or
             751          (iii) alcoholic beverages;
             752          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             753      or a product transferred electronically by a person:
             754          (i) regardless of the number of transactions involving the sale of that tangible personal
             755      property or product transferred electronically by that person; and
             756          (ii) not regularly engaged in the business of selling that type of tangible personal
             757      property or product transferred electronically;
             758          (b) this Subsection (13) does not apply if:
             759          (i) the sale is one of a series of sales of a character to indicate that the person is
             760      regularly engaged in the business of selling that type of tangible personal property or product
             761      transferred electronically;
             762          (ii) the person holds that person out as regularly engaged in the business of selling that
             763      type of tangible personal property or product transferred electronically;
             764          (iii) the person sells an item of tangible personal property or product transferred
             765      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             766          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             767      this state in which case the tax is based upon:
             768          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             769      sold; or
             770          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             771      value of the vehicle or vessel being sold at the time of the sale as determined by the


             772      commission; and
             773          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             774      commission shall make rules establishing the circumstances under which:
             775          (i) a person is regularly engaged in the business of selling a type of tangible personal
             776      property or product transferred electronically;
             777          (ii) a sale of tangible personal property or a product transferred electronically is one of
             778      a series of sales of a character to indicate that a person is regularly engaged in the business of
             779      selling that type of tangible personal property or product transferred electronically; or
             780          (iii) a person holds that person out as regularly engaged in the business of selling a type
             781      of tangible personal property or product transferred electronically;
             782          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             783      July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
             784      facility, for the following:
             785          (i) machinery and equipment that:
             786          (A) is used:
             787          (I) for a manufacturing facility other than a manufacturing facility that is a scrap
             788      recycler described in Subsection 59-12-102 (52)(b):
             789          (Aa) in the manufacturing process; and
             790          (Bb) to manufacture an item sold as tangible personal property; or
             791          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             792      59-12-102 (52)(b), to process an item sold as tangible personal property; and
             793          (B) has an economic life of three or more years; and
             794          (ii) normal operating repair or replacement parts that:
             795          (A) have an economic life of three or more years; and
             796          (B) are used:
             797          (I) for a manufacturing facility in the state other than a manufacturing facility that is a
             798      scrap recycler described in Subsection 59-12-102 (52)(b), in the manufacturing process; or
             799          (II) for a manufacturing facility in the state that is a scrap recycler described in
             800      Subsection 59-12-102 (52)(b), to process an item sold as tangible personal property;
             801          (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             802      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,


             803      for the following:
             804          (A) machinery and equipment that:
             805          (I) is used:
             806          (Aa) in the manufacturing process; and
             807          (Bb) to manufacture an item sold as tangible personal property; and
             808          (II) has an economic life of three or more years; and
             809          (B) normal operating repair or replacement parts that:
             810          (I) are used in the manufacturing process in a manufacturing facility in the state; and
             811          (II) have an economic life of three or more years; and
             812          (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
             813      2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
             814      claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
             815          (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
             816      and
             817          (B) in accordance with Section 59-12-110 ;
             818          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             819      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             820      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             821      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             822      of the 2002 North American Industry Classification System of the federal Executive Office of
             823      the President, Office of Management and Budget:
             824          (i) machinery and equipment that:
             825          (A) are used in:
             826          (I) the production process, other than the production of real property; or
             827          (II) research and development; and
             828          (B) have an economic life of three or more years; and
             829          (ii) normal operating repair or replacement parts that:
             830          (A) have an economic life of three or more years; and
             831          (B) are used in:
             832          (I) the production process, other than the production of real property, in an
             833      establishment described in this Subsection (14)(c) in the state; or


             834          (II) research and development in an establishment described in this Subsection (14)(c)
             835      in the state;
             836          (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             837      Utah Administrative Rulemaking Act, the commission:
             838          (i) shall by rule define the term "establishment"; and
             839          (ii) may by rule define what constitutes:
             840          (A) processing an item sold as tangible personal property;
             841          (B) the production process, other than the production of real property; or
             842          (C) research and development; and
             843          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             844      commission shall:
             845          (i) review the exemptions described in this Subsection (14) and make
             846      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             847      exemptions should be continued, modified, or repealed; and
             848          (ii) include in its report:
             849          (A) an estimate of the cost of the exemptions;
             850          (B) the purpose and effectiveness of the exemptions; and
             851          (C) the benefits of the exemptions to the state;
             852          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             853          (i) tooling;
             854          (ii) special tooling;
             855          (iii) support equipment;
             856          (iv) special test equipment; or
             857          (v) parts used in the repairs or renovations of tooling or equipment described in
             858      Subsections (15)(a)(i) through (iv); and
             859          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             860          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             861      performance of any aerospace or electronics industry contract with the United States
             862      government or any subcontract under that contract; and
             863          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             864      title to the tooling, equipment, or parts is vested in the United States government as evidenced


             865      by:
             866          (A) a government identification tag placed on the tooling, equipment, or parts; or
             867          (B) listing on a government-approved property record if placing a government
             868      identification tag on the tooling, equipment, or parts is impractical;
             869          (16) sales of newspapers or newspaper subscriptions;
             870          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             871      product transferred electronically traded in as full or part payment of the purchase price, except
             872      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             873      trade-ins are limited to other vehicles only, and the tax is based upon:
             874          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             875      vehicle being traded in; or
             876          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             877      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             878      commission; and
             879          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             880      following items of tangible personal property or products transferred electronically traded in as
             881      full or part payment of the purchase price:
             882          (i) money;
             883          (ii) electricity;
             884          (iii) water;
             885          (iv) gas; or
             886          (v) steam;
             887          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             888      or a product transferred electronically used or consumed primarily and directly in farming
             889      operations, regardless of whether the tangible personal property or product transferred
             890      electronically:
             891          (A) becomes part of real estate; or
             892          (B) is installed by a:
             893          (I) farmer;
             894          (II) contractor; or
             895          (III) subcontractor; or


             896          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             897      product transferred electronically if the tangible personal property or product transferred
             898      electronically is exempt under Subsection (18)(a)(i); and
             899          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             900      subject to the taxes imposed by this chapter:
             901          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             902      incidental to farming:
             903          (I) machinery;
             904          (II) equipment;
             905          (III) materials; or
             906          (IV) supplies; and
             907          (B) tangible personal property that is considered to be used in a manner that is
             908      incidental to farming includes:
             909          (I) hand tools; or
             910          (II) maintenance and janitorial equipment and supplies;
             911          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             912      transferred electronically if the tangible personal property or product transferred electronically
             913      is used in an activity other than farming; and
             914          (B) tangible personal property or a product transferred electronically that is considered
             915      to be used in an activity other than farming includes:
             916          (I) office equipment and supplies; or
             917          (II) equipment and supplies used in:
             918          (Aa) the sale or distribution of farm products;
             919          (Bb) research; or
             920          (Cc) transportation; or
             921          (iii) a vehicle required to be registered by the laws of this state during the period
             922      ending two years after the date of the vehicle's purchase;
             923          (19) sales of hay;
             924          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             925      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             926      garden, farm, or other agricultural produce is sold by:


             927          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             928      agricultural produce;
             929          (b) an employee of the producer described in Subsection (20)(a); or
             930          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             931          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             932      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             933          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             934      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             935      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             936      manufacturer, processor, wholesaler, or retailer;
             937          (23) a product stored in the state for resale;
             938          (24) (a) purchases of a product if:
             939          (i) the product is:
             940          (A) purchased outside of this state;
             941          (B) brought into this state:
             942          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             943          (II) by a nonresident person who is not living or working in this state at the time of the
             944      purchase;
             945          (C) used for the personal use or enjoyment of the nonresident person described in
             946      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             947          (D) not used in conducting business in this state; and
             948          (ii) for:
             949          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             950      the product for a purpose for which the product is designed occurs outside of this state;
             951          (B) a boat, the boat is registered outside of this state; or
             952          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             953      outside of this state;
             954          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             955          (i) a lease or rental of a product; or
             956          (ii) a sale of a vehicle exempt under Subsection (33); and
             957          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for


             958      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             959      following:
             960          (i) conducting business in this state if that phrase has the same meaning in this
             961      Subsection (24) as in Subsection (64);
             962          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             963      as in Subsection (64); or
             964          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             965      this Subsection (24) as in Subsection (64);
             966          (25) a product purchased for resale in this state, in the regular course of business, either
             967      in its original form or as an ingredient or component part of a manufactured or compounded
             968      product;
             969          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             970      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             971      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             972      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             973      Act;
             974          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             975      person for use in compounding a service taxable under the subsections;
             976          (28) purchases made in accordance with the special supplemental nutrition program for
             977      women, infants, and children established in 42 U.S.C. Sec. 1786;
             978          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             979      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             980      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             981      Manual of the federal Executive Office of the President, Office of Management and Budget;
             982          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             983      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             984          (a) not registered in this state; and
             985          (b) (i) not used in this state; or
             986          (ii) used in this state:
             987          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             988      time period that does not exceed the longer of:


             989          (I) 30 days in any calendar year; or
             990          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             991      the borders of this state; or
             992          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             993      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             994      state;
             995          (31) sales of aircraft manufactured in Utah;
             996          (32) amounts paid for the purchase of telecommunications service for purposes of
             997      providing telecommunications service;
             998          (33) sales, leases, or uses of the following:
             999          (a) a vehicle by an authorized carrier; or
             1000          (b) tangible personal property that is installed on a vehicle:
             1001          (i) sold or leased to or used by an authorized carrier; and
             1002          (ii) before the vehicle is placed in service for the first time;
             1003          (34) (a) 45% of the sales price of any new manufactured home; and
             1004          (b) 100% of the sales price of any used manufactured home;
             1005          (35) sales relating to schools and fundraising sales;
             1006          (36) sales or rentals of durable medical equipment if:
             1007          (a) a person presents a prescription for the durable medical equipment; and
             1008          (b) the durable medical equipment is used for home use only;
             1009          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             1010      Section 72-11-102 ; and
             1011          (b) the commission shall by rule determine the method for calculating sales exempt
             1012      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             1013          (38) sales to a ski resort of:
             1014          (a) snowmaking equipment;
             1015          (b) ski slope grooming equipment;
             1016          (c) passenger ropeways as defined in Section 72-11-102 ; or
             1017          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             1018      described in Subsections (38)(a) through (c);
             1019          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;


             1020          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             1021      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             1022      59-12-102 ;
             1023          (b) if a seller that sells or rents at the same business location the right to use or operate
             1024      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             1025      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             1026      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             1027      amusement, entertainment, or recreation for the assisted amusement devices; and
             1028          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             1029      Utah Administrative Rulemaking Act, the commission may make rules:
             1030          (i) governing the circumstances under which sales are at the same business location;
             1031      and
             1032          (ii) establishing the procedures and requirements for a seller to separately account for
             1033      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             1034      assisted amusement devices;
             1035          (41) (a) sales of photocopies by:
             1036          (i) a governmental entity; or
             1037          (ii) an entity within the state system of public education, including:
             1038          (A) a school; or
             1039          (B) the State Board of Education; or
             1040          (b) sales of publications by a governmental entity;
             1041          (42) amounts paid for admission to an athletic event at an institution of higher
             1042      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             1043      20 U.S.C. Sec. 1681 et seq.;
             1044          (43) sales of telecommunications service charged to a prepaid telephone calling card;
             1045          (44) (a) sales made to or by:
             1046          (i) an area agency on aging; or
             1047          (ii) a senior citizen center owned by a county, city, or town; or
             1048          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             1049          (45) sales or leases of semiconductor fabricating, processing, research, or development
             1050      materials regardless of whether the semiconductor fabricating, processing, research, or


             1051      development materials:
             1052          (a) actually come into contact with a semiconductor; or
             1053          (b) ultimately become incorporated into real property;
             1054          (46) an amount paid by or charged to a purchaser for accommodations and services
             1055      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             1056      59-12-104.2 ;
             1057          (47) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             1058      sports event registration certificate in accordance with Section 41-3-306 for the event period
             1059      specified on the temporary sports event registration certificate;
             1060          (48) sales or uses of electricity, if the sales or uses are:
             1061          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             1062      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             1063      source, as designated in the tariff by the Public Service Commission of Utah; and
             1064          (b) for an amount of electricity that is:
             1065          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             1066      under the tariff described in Subsection (48)(a); and
             1067          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             1068      Subsection (48)(a) that may be purchased under the tariff described in Subsection (48)(a);
             1069          (49) sales or rentals of mobility enhancing equipment if a person presents a
             1070      prescription for the mobility enhancing equipment;
             1071          (50) sales of water in a:
             1072          (a) pipe;
             1073          (b) conduit;
             1074          (c) ditch; or
             1075          (d) reservoir;
             1076          (51) sales of currency or coinage that constitute legal tender of the United States or of a
             1077      foreign nation;
             1078          (52) (a) sales of an item described in Subsection (52)(b) if the item:
             1079          (i) does not constitute legal tender of any nation; and
             1080          (ii) has a gold, silver, or platinum content of 80% or more; and
             1081          (b) Subsection (52)(a) applies to a gold, silver, or platinum:


             1082          (i) ingot;
             1083          (ii) bar;
             1084          (iii) medallion; or
             1085          (iv) decorative coin;
             1086          (53) amounts paid on a sale-leaseback transaction;
             1087          (54) sales of a prosthetic device:
             1088          (a) for use on or in a human; and
             1089          (b) (i) for which a prescription is required; or
             1090          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             1091          (55) (a) except as provided in Subsection (55)(b), purchases, leases, or rentals of
             1092      machinery or equipment by an establishment described in Subsection (55)(c) if the machinery
             1093      or equipment is primarily used in the production or postproduction of the following media for
             1094      commercial distribution:
             1095          (i) a motion picture;
             1096          (ii) a television program;
             1097          (iii) a movie made for television;
             1098          (iv) a music video;
             1099          (v) a commercial;
             1100          (vi) a documentary; or
             1101          (vii) a medium similar to Subsections (55)(a)(i) through (vi) as determined by the
             1102      commission by administrative rule made in accordance with Subsection (55)(d); or
             1103          (b) notwithstanding Subsection (55)(a), purchases, leases, or rentals of machinery or
             1104      equipment by an establishment described in Subsection (55)(c) that is used for the production
             1105      or postproduction of the following are subject to the taxes imposed by this chapter:
             1106          (i) a live musical performance;
             1107          (ii) a live news program; or
             1108          (iii) a live sporting event;
             1109          (c) the following establishments listed in the 1997 North American Industry
             1110      Classification System of the federal Executive Office of the President, Office of Management
             1111      and Budget, apply to Subsections (55)(a) and (b):
             1112          (i) NAICS Code 512110; or


             1113          (ii) NAICS Code 51219; and
             1114          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1115      commission may by rule:
             1116          (i) prescribe what constitutes a medium similar to Subsections (55)(a)(i) through (vi);
             1117      or
             1118          (ii) define:
             1119          (A) "commercial distribution";
             1120          (B) "live musical performance";
             1121          (C) "live news program"; or
             1122          (D) "live sporting event";
             1123          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             1124      or before June 30, 2019, of machinery or equipment that:
             1125          (i) is leased or purchased for or by a facility that:
             1126          (A) is a renewable energy production facility;
             1127          (B) is located in the state; and
             1128          (C) (I) becomes operational on or after July 1, 2004; or
             1129          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             1130      2004 as a result of the use of the machinery or equipment;
             1131          (ii) has an economic life of five or more years; and
             1132          (iii) is used to make the facility or the increase in capacity of the facility described in
             1133      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             1134      transmission grid including:
             1135          (A) a wind turbine;
             1136          (B) generating equipment;
             1137          (C) a control and monitoring system;
             1138          (D) a power line;
             1139          (E) substation equipment;
             1140          (F) lighting;
             1141          (G) fencing;
             1142          (H) pipes; or
             1143          (I) other equipment used for locating a power line or pole; and


             1144          (b) this Subsection (56) does not apply to:
             1145          (i) machinery or equipment used in construction of:
             1146          (A) a new renewable energy production facility; or
             1147          (B) the increase in the capacity of a renewable energy production facility;
             1148          (ii) contracted services required for construction and routine maintenance activities;
             1149      and
             1150          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             1151      of the facility described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or
             1152      acquired after:
             1153          (A) the renewable energy production facility described in Subsection (56)(a)(i) is
             1154      operational as described in Subsection (56)(a)(iii); or
             1155          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             1156      in Subsection (56)(a)(iii);
             1157          (57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             1158      or before June 30, 2019, of machinery or equipment that:
             1159          (i) is leased or purchased for or by a facility that:
             1160          (A) is a waste energy production facility;
             1161          (B) is located in the state; and
             1162          (C) (I) becomes operational on or after July 1, 2004; or
             1163          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             1164      2004 as a result of the use of the machinery or equipment;
             1165          (ii) has an economic life of five or more years; and
             1166          (iii) is used to make the facility or the increase in capacity of the facility described in
             1167      Subsection (57)(a)(i) operational up to the point of interconnection with an existing
             1168      transmission grid including:
             1169          (A) generating equipment;
             1170          (B) a control and monitoring system;
             1171          (C) a power line;
             1172          (D) substation equipment;
             1173          (E) lighting;
             1174          (F) fencing;


             1175          (G) pipes; or
             1176          (H) other equipment used for locating a power line or pole; and
             1177          (b) this Subsection (57) does not apply to:
             1178          (i) machinery or equipment used in construction of:
             1179          (A) a new waste energy facility; or
             1180          (B) the increase in the capacity of a waste energy facility;
             1181          (ii) contracted services required for construction and routine maintenance activities;
             1182      and
             1183          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             1184      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             1185          (A) the waste energy facility described in Subsection (57)(a)(i) is operational as
             1186      described in Subsection (57)(a)(iii); or
             1187          (B) the increased capacity described in Subsection (57)(a)(i) is operational as described
             1188      in Subsection (57)(a)(iii);
             1189          (58) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             1190      or before June 30, 2019, of machinery or equipment that:
             1191          (i) is leased or purchased for or by a facility that:
             1192          (A) is located in the state;
             1193          (B) produces fuel from biomass energy including:
             1194          (I) methanol; or
             1195          (II) ethanol; and
             1196          (C) (I) becomes operational on or after July 1, 2004; or
             1197          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             1198      a result of the installation of the machinery or equipment;
             1199          (ii) has an economic life of five or more years; and
             1200          (iii) is installed on the facility described in Subsection (58)(a)(i);
             1201          (b) this Subsection (58) does not apply to:
             1202          (i) machinery or equipment used in construction of:
             1203          (A) a new facility described in Subsection (58)(a)(i); or
             1204          (B) the increase in capacity of the facility described in Subsection (58)(a)(i); or
             1205          (ii) contracted services required for construction and routine maintenance activities;


             1206      and
             1207          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             1208      described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
             1209          (A) the facility described in Subsection (58)(a)(i) is operational; or
             1210          (B) the increased capacity described in Subsection (58)(a)(i) is operational;
             1211          (59) (a) subject to Subsection (59)(b) or (c), sales of tangible personal property or a
             1212      product transferred electronically to a person within this state if that tangible personal property
             1213      or product transferred electronically is subsequently shipped outside the state and incorporated
             1214      pursuant to contract into and becomes a part of real property located outside of this state;
             1215          (b) the exemption under Subsection (59)(a) is not allowed to the extent that the other
             1216      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             1217      gross receipts, or other similar transaction excise tax on the transaction against which the other
             1218      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             1219          (c) notwithstanding the time period of Subsection 59-12-110 (2)(b) for filing for a
             1220      refund, a person may claim the exemption allowed by this Subsection (59) for a sale by filing
             1221      for a refund:
             1222          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             1223          (ii) as if this Subsection (59) as in effect on July 1, 2008, were in effect on the day on
             1224      which the sale is made;
             1225          (iii) if the person did not claim the exemption allowed by this Subsection (59) for the
             1226      sale prior to filing for the refund;
             1227          (iv) for sales and use taxes paid under this chapter on the sale;
             1228          (v) in accordance with Section 59-12-110 ; and
             1229          (vi) subject to any extension allowed for filing for a refund under Section 59-12-110 , if
             1230      the person files for the refund on or before June 30, 2011;
             1231          (60) purchases:
             1232          (a) of one or more of the following items in printed or electronic format:
             1233          (i) a list containing information that includes one or more:
             1234          (A) names; or
             1235          (B) addresses; or
             1236          (ii) a database containing information that includes one or more:


             1237          (A) names; or
             1238          (B) addresses; and
             1239          (b) used to send direct mail;
             1240          (61) redemptions or repurchases of a product by a person if that product was:
             1241          (a) delivered to a pawnbroker as part of a pawn transaction; and
             1242          (b) redeemed or repurchased within the time period established in a written agreement
             1243      between the person and the pawnbroker for redeeming or repurchasing the product;
             1244          (62) (a) purchases or leases of an item described in Subsection (62)(b) if the item:
             1245          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             1246      and
             1247          (ii) has a useful economic life of one or more years; and
             1248          (b) the following apply to Subsection (62)(a):
             1249          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             1250          (ii) telecommunications equipment, machinery, or software required for 911 service;
             1251          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             1252          (iv) telecommunications switching or routing equipment, machinery, or software; or
             1253          (v) telecommunications transmission equipment, machinery, or software;
             1254          (63) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             1255      personal property or a product transferred electronically that are used in the research and
             1256      development of coal-to-liquids, oil shale, or tar sands technology; and
             1257          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1258      commission may, for purposes of Subsection (63)(a), make rules defining what constitutes
             1259      purchases of tangible personal property or a product transferred electronically that are used in
             1260      the research and development of coal-to-liquids, oil shale, and tar sands technology;
             1261          (64) (a) purchases of tangible personal property or a product transferred electronically
             1262      if:
             1263          (i) the tangible personal property or product transferred electronically is:
             1264          (A) purchased outside of this state;
             1265          (B) brought into this state at any time after the purchase described in Subsection
             1266      (64)(a)(i)(A); and
             1267          (C) used in conducting business in this state; and


             1268          (ii) for:
             1269          (A) tangible personal property or a product transferred electronically other than the
             1270      tangible personal property described in Subsection (64)(a)(ii)(B), the first use of the property
             1271      for a purpose for which the property is designed occurs outside of this state; or
             1272          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             1273      outside of this state;
             1274          (b) the exemption provided for in Subsection (64)(a) does not apply to:
             1275          (i) a lease or rental of tangible personal property or a product transferred electronically;
             1276      or
             1277          (ii) a sale of a vehicle exempt under Subsection (33); and
             1278          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             1279      purposes of Subsection (64)(a), the commission may by rule define what constitutes the
             1280      following:
             1281          (i) conducting business in this state if that phrase has the same meaning in this
             1282      Subsection (64) as in Subsection (24);
             1283          (ii) the first use of tangible personal property or a product transferred electronically if
             1284      that phrase has the same meaning in this Subsection (64) as in Subsection (24); or
             1285          (iii) a purpose for which tangible personal property or a product transferred
             1286      electronically is designed if that phrase has the same meaning in this Subsection (64) as in
             1287      Subsection (24);
             1288          (65) sales of disposable home medical equipment or supplies if:
             1289          (a) a person presents a prescription for the disposable home medical equipment or
             1290      supplies;
             1291          (b) the disposable home medical equipment or supplies are used exclusively by the
             1292      person to whom the prescription described in Subsection (65)(a) is issued; and
             1293          (c) the disposable home medical equipment and supplies are listed as eligible for
             1294      payment under:
             1295          (i) Title XVIII, federal Social Security Act; or
             1296          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             1297          (66) sales:
             1298          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit


             1299      District Act; or
             1300          (b) of tangible personal property to a subcontractor of a public transit district, if the
             1301      tangible personal property is:
             1302          (i) clearly identified; and
             1303          (ii) installed or converted to real property owned by the public transit district;
             1304          (67) sales of construction materials:
             1305          (a) purchased on or after July 1, 2010;
             1306          (b) purchased by, on behalf of, or for the benefit of an international airport:
             1307          (i) located within a county of the first class; and
             1308          (ii) that has a United States customs office on its premises; and
             1309          (c) if the construction materials are:
             1310          (i) clearly identified;
             1311          (ii) segregated; and
             1312          (iii) installed or converted to real property:
             1313          (A) owned or operated by the international airport described in Subsection (67)(b); and
             1314          (B) located at the international airport described in Subsection (67)(b);
             1315          (68) sales of construction materials:
             1316          (a) purchased on or after July 1, 2008;
             1317          (b) purchased by, on behalf of, or for the benefit of a new airport:
             1318          (i) located within a county of the second class; and
             1319          (ii) that is owned or operated by a city in which an airline as defined in Section
             1320      59-2-102 is headquartered; and
             1321          (c) if the construction materials are:
             1322          (i) clearly identified;
             1323          (ii) segregated; and
             1324          (iii) installed or converted to real property:
             1325          (A) owned or operated by the new airport described in Subsection (68)(b);
             1326          (B) located at the new airport described in Subsection (68)(b); and
             1327          (C) as part of the construction of the new airport described in Subsection (68)(b); and
             1328          (69) sales of fuel to a common carrier that is a railroad for use in a locomotive engine.
             1329          Section 4. Section 62A-11-328 is amended to read:


             1330           62A-11-328. Information received from State Tax Commission provided to other
             1331      states' child support collection agencies.
             1332          The office shall, upon request, provide to any other state's child support collection
             1333      agency the information which it receives from the State Tax Commission under Subsection
             1334      59-1-403 (3)[(m)] (l), with regard to a support debt which that agency is involved in enforcing.
             1335          Section 5. Repealer.
             1336          This bill repeals:
             1337          Section 59-12-105, Certain exempt sales to be reported -- Penalties.
             1338          Section 6. Effective date.
             1339          This bill takes effect on July 1, 2009.




Legislative Review Note
    as of 11-25-08 3:50 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]