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First Substitute H.B. 311

Representative Neil A. Hansen proposes the following substitute bill:


             1     
UTAH STATE RAILROAD MUSEUM

             2     
AUTHORITY

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Neil A. Hansen

             6     
Senate Sponsor: Peter C. Knudson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill creates the "Utah State Railroad Museum Authority."
             11      Highlighted Provisions:
             12          This bill:
             13          .    creates the "Utah State Railroad Museum Authority" and establishes its membership
             14      and procedures;
             15          .    provides for the powers and duties of the executive director and the authority;
             16          .    provides that the authority's financial obligations are not obligations of the state;
             17          .    provides that the authority is responsible for the maintenance of its properties;
             18          .    exempts the authority from the Funds Consolidation Act, Budgetary Procedures
             19      Act, Utah Procurement Code, Utah State Personnel Management Act, and the
             20      Department of Administrative Services; and
             21          .    exempts the authority and its operators from state sales and use tax.
             22      Monies Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          This bill provides an effective date.


             26      Utah Code Sections Affected:
             27      AMENDS:
             28          59-12-104, as last amended by Laws of Utah 2008, Second Special Session, Chapter 2
             29      ENACTS:
             30          9-3-501, Utah Code Annotated 1953
             31          9-3-502, Utah Code Annotated 1953
             32          9-3-503, Utah Code Annotated 1953
             33          9-3-504, Utah Code Annotated 1953
             34          9-3-505, Utah Code Annotated 1953
             35          9-3-506, Utah Code Annotated 1953
             36          9-3-507, Utah Code Annotated 1953
             37          9-3-508, Utah Code Annotated 1953
             38          9-3-509, Utah Code Annotated 1953
             39          9-3-510, Utah Code Annotated 1953
             40          9-3-511, Utah Code Annotated 1953
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 9-3-501 is enacted to read:
             44     
Part 5. Utah State Railroad Museum Authority

             45          9-3-501. Title.
             46          This part is known as the "Utah State Railroad Museum Authority."
             47          Section 2. Section 9-3-502 is enacted to read:
             48          9-3-502. Creation -- Members -- Chair -- Powers -- Quorum -- Per diem and
             49      expenses.
             50          (1) There is created an independent state agency and a body politic and corporate
             51      known as the "Utah State Railroad Museum Authority," hereafter referred to in this part as "the
             52      authority."
             53          (2) The authority is composed of 11 members as follows:
             54          (a) one member of the county legislative body of Weber County appointed by that
             55      legislative body;
             56          (b) two members of the county legislative body of Box Elder County appointed by that


             57      legislative body;
             58          (c) the executive director of the Department of Transportation or the director's
             59      designee; and
             60          (d) the governor shall appoint seven public members, as follows:
             61          (i) two persons representing the tourism industry, one each from Weber and Box Elder
             62      Counties;
             63          (ii) one person representing the public at large; and
             64          (iii) four persons representing railroad historic and heritage preservation organizations
             65      active in Weber and Box Elder Counties, as follows:
             66          (A) one person representing the Railroad and Locomotive Historical Society Golden
             67      Spike Chapter;
             68          (B) one person representing the Union Station Foundation;
             69          (C) one person representing the Golden Spike Heritage Foundation; and
             70          (D) one person representing the Golden Spike Historic Site.
             71          (3) All members shall be residents of the state.
             72          (4) (a) Except as required by Subsection (4)(b), the governor shall appoint the seven
             73      public members for four-year terms beginning July 1.
             74          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             75      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             76      authority members appointed under Subsection (2)(d) are staggered so that approximately half
             77      of the seven public members are appointed every two years.
             78          (5) Any of the seven public members may be removed from office by the governor or
             79      for cause by an affirmative vote of six members of the authority.
             80          (6) When a vacancy occurs in the public membership for any reason, the governor shall
             81      appoint a replacement for the unexpired term.
             82          (7) Each public member shall hold office for the term of the member's appointment and
             83      until a successor has been appointed and qualified.
             84          (8) A public member is eligible for reappointment, but may not serve more than two
             85      full consecutive terms.
             86          (9) The governor shall appoint the chair of the authority from among its members.
             87          (10) (a) The members shall elect from among their number a vice chair and other


             88      officers as they may determine.
             89          (b) The officers serve as the executive committee for the authority.
             90          (11) The powers of the authority are vested in its members.
             91          (12) (a) Six members constitute a quorum for transaction of authority business.
             92          (b) An affirmative vote of at least six members is necessary for an action to be taken
             93      by the authority.
             94          (13) (a) A member who is not a government employee receives no compensation or
             95      benefits for the member's services, but may receive per diem and expenses incurred in the
             96      performance of the member's official duties at rates established by the Division of Finance
             97      under Sections 63A-3-106 and 63A-3-107 .
             98          (b) A state government officer or employee member who does not receive salary, per
             99      diem, or expenses from the member's agency for the member's service may receive per diem
             100      and expenses incurred in the performance of official duties from the authority at rates
             101      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             102          (c) A local government member who does not receive salary, per diem, or expenses for
             103      the member's service from the entity that the member represents may receive per diem and
             104      expenses incurred in the performance of the member's official duties at rates established by the
             105      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             106          (d) A member may decline to receive per diem and expenses for the member's services.
             107          Section 3. Section 9-3-503 is enacted to read:
             108          9-3-503. Executive director -- Powers and duties.
             109          (1) (a) The members of the authority shall appoint an executive director who is an
             110      employee of the authority, but who may not be a member of the authority.
             111          (b) The executive director serves at the pleasure of the members and receives
             112      compensation as set by the members and approved by the governor.
             113          (2) The executive director shall:
             114          (a) administer, manage, and direct the affairs and activities of the authority in
             115      accordance with the policies, control, and direction of the members of the authority;
             116          (b) approve all accounts for allowable expenses of the authority or of any of its
             117      employees and expenses incidental to the operation of the authority;
             118          (c) attend meetings of the authority;


             119          (d) keep a record of the proceedings of the authority;
             120          (e) maintain and be the custodian of all books, documents, and papers filed with the
             121      authority;
             122          (f) document and maintain records concerning ownership of all assets owned or under
             123      the control of the authority; and
             124          (g) perform other duties as directed by the members of the authority in carrying out the
             125      purposes of this part.
             126          Section 4. Section 9-3-504 is enacted to read:
             127          9-3-504. Member or employee -- Disclosure of interest.
             128          (1) A member or employee of the authority who has, will have, or later acquires an
             129      interest, direct or indirect, in a transaction with the authority shall immediately disclose the
             130      nature and extent of that interest in writing to the authority as soon as the individual has
             131      knowledge of the actual or prospective interest.
             132          (2) The disclosure shall be entered upon the minutes of the authority.
             133          (3) After making the disclosure, the member or employee may participate in any action
             134      by the authority authorizing the transaction.
             135          Section 5. Section 9-3-505 is enacted to read:
             136          9-3-505. Officer or employee -- No forfeiture of office or employment.
             137          Notwithstanding any other provision of law, an officer or employee of this state does
             138      not forfeit the office or employment with the state by reason of acceptance of membership on
             139      the authority or service on it.
             140          Section 6. Section 9-3-506 is enacted to read:
             141          9-3-506. Authority -- Powers.
             142          (1) The authority shall facilitate:
             143          (a) or operate and maintain a scenic and historic railroad in and around Weber and Box
             144      Elder Counties;
             145          (b) or operate and maintain one or more railroad history museums in and around Weber
             146      and Box Elder Counties;
             147          (c) the restoration, preservation, and public display of railroad artifacts and heritage in
             148      and around Weber and Box Elder Counties; and
             149          (d) the restoration, preservation, and operation of historically significant railroad


             150      related properties in and around Weber and Box Elder Counties for public benefit.
             151          (2) The authority has perpetual succession as a body politic and corporate and may:
             152          (a) adopt, amend, and repeal policies and procedures for the regulation of its affairs and
             153      the conduct of its business;
             154          (b) sue and be sued in its own name;
             155          (c) maintain an office at a place or places it designates within the state;
             156          (d) adopt, amend, and repeal bylaws and rules, consistent with this part, to carry into
             157      effect the powers and purposes of the authority and the conduct of its business;
             158          (e) purchase, lease, sell, and otherwise dispose of property and rights-of-way;
             159          (f) employ experts and other professionals it considers necessary;
             160          (g) employ and retain independent legal counsel;
             161          (h) make and execute contracts and all other instruments necessary or convenient for
             162      the performance of its duties under this part as described in Subsection (1);
             163          (i) procure insurance for liability and against any loss in connection with its property
             164      and other assets in amounts and from insurers it considers desirable;
             165          (j) receive appropriations from the Legislature and receive other public moneys and
             166      accept aid or contributions from any source of money, property, labor, or other things of value
             167      to be held, used, and applied to carry out the purposes of this part, subject to the conditions
             168      upon which the grants and contributions are made, including gifts or grants from a department,
             169      agency, or instrumentality of the United States or of this state for any purpose consistent with
             170      this part;
             171          (k) enter into agreements with a department, agency, or instrumentality of the United
             172      States or this state for the purpose of providing for the operation and maintenance of a scenic
             173      railway in and around Weber and Box Elder Counties; and
             174          (l) do any act necessary or convenient to the exercise of the powers granted to the
             175      authority by this part.
             176          (3) (a) All monies received by the authority under Subsection (2)(j) and from any other
             177      source are for the exclusive use of the authority in the performance and exercise of its duties
             178      under this part as described in Subsection (1).
             179          (b) Monies received by the authority may not be used for any other purpose or by any
             180      other entity.


             181          Section 7. Section 9-3-507 is enacted to read:
             182          9-3-507. Notes, bonds, other obligation -- Not debt liability -- Expenses payable
             183      from funds provided -- Agency without authority to incur liability on behalf of state.
             184          (1) (a) An obligation or liability of the authority does not constitute:
             185          (i) a debt or liability of the state or of any of its political subdivisions; or
             186          (ii) the loaning of credit of the state or of any of its political subdivisions.
             187          (b) An obligation or liability of the authority is payable only from funds of the
             188      authority.
             189          (2) An obligation of the authority shall contain a statement to the effect:
             190          (a) that the authority is obligated to pay the obligation solely from the revenues or other
             191      funds of the authority;
             192          (b) that neither the state nor its political subdivisions are obligated to pay it; and
             193          (c) that neither the faith and credit nor the taxing power of the state or any of its
             194      political subdivisions is pledged to the payment of it.
             195          (3) (a) Expenses incurred in carrying out this part are payable solely from funds of the
             196      authority provided under this part.
             197          (b) Nothing in this part authorizes the authority to incur indebtedness or liability on
             198      behalf of or payable by the state or any of its political subdivisions.
             199          Section 8. Section 9-3-508 is enacted to read:
             200          9-3-508. Relation to certain acts.
             201          (1) The authority is exempt from:
             202          (a) Title 51, Chapter 5, Funds Consolidation Act;
             203          (b) Title 63A, Chapter 1, Department of Administrative Services;
             204          (c) Title 63G, Chapter 6, Utah Procurement Code;
             205          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             206          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             207          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             208      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             209          Section 9. Section 9-3-509 is enacted to read:
             210          9-3-509. Duty to maintain rails and operating equipment.
             211          (1) The authority shall maintain the rails, bed, right-of-way, and related property owned


             212      by the authority upon which the authority's train operates in compliance with state and federal
             213      statutes, rules, and regulations.
             214          (2) The authority shall require any party from whom it leases, or otherwise utilizes
             215      rails, bed, right-of-way, motive power, rolling stock, and related property that the property be
             216      delivered and maintained in compliance with state and federal statutes, rules, and regulations.
             217          Section 10. Section 9-3-510 is enacted to read:
             218          9-3-510. Lease of rails or equipment from Department of Transportation and
             219      Division of Parks and Recreation.
             220          The Department of Transportation and the Division of Parks and Recreation may jointly
             221      lease the rails, bed, right-of-way, and related property for the operation of a scenic and historic
             222      railroad in and around Weber and Box Elder Counties, for not more than $1 per year to the
             223      authority.
             224          Section 11. Section 9-3-511 is enacted to read:
             225          9-3-511. Sales tax exemption.
             226          The authority and its operators are exempt from sales and use tax as provided in Section
             227      59-12-104 , in carrying out their duties and exercising their powers under this part.
             228          Section 12. Section 59-12-104 is amended to read:
             229           59-12-104. Exemptions.
             230          The following sales and uses are exempt from the taxes imposed by this chapter:
             231          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             232      under Chapter 13, Motor and Special Fuel Tax Act;
             233          (2) sales to the state, its institutions, and its political subdivisions; however, this
             234      exemption does not apply to sales of:
             235          (a) construction materials except:
             236          (i) construction materials purchased by or on behalf of institutions of the public
             237      education system as defined in Utah Constitution Article X, Section 2, provided the
             238      construction materials are clearly identified and segregated and installed or converted to real
             239      property which is owned by institutions of the public education system; and
             240          (ii) construction materials purchased by the state, its institutions, or its political
             241      subdivisions which are installed or converted to real property by employees of the state, its
             242      institutions, or its political subdivisions; or


             243          (b) tangible personal property in connection with the construction, operation,
             244      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             245      providing additional project capacity, as defined in Section 11-13-103 ;
             246          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             247          (i) the proceeds of each sale do not exceed $1; and
             248          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             249      the cost of the item described in Subsection (3)(b) as goods consumed; and
             250          (b) Subsection (3)(a) applies to:
             251          (i) food and food ingredients; or
             252          (ii) prepared food;
             253          (4) sales of the following to a commercial airline carrier for in-flight consumption:
             254          (a) food and food ingredients;
             255          (b) prepared food; or
             256          (c) services related to Subsection (4)(a) or (b);
             257          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             258      and equipment:
             259          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             260      North American Industry Classification System of the federal Executive Office of the
             261      President, Office of Management and Budget; and
             262          (II) for:
             263          (Aa) installation in an aircraft, including services relating to the installation of parts or
             264      equipment in the aircraft;
             265          (Bb) renovation of an aircraft; or
             266          (Cc) repair of an aircraft; or
             267          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             268      commerce; or
             269          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             270      aircraft operated by a common carrier in interstate or foreign commerce; and
             271          (b) notwithstanding the time period of Subsection 59-12-110 (2) for filing for a refund,
             272      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             273      refund:


             274          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             275          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             276          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             277      the sale prior to filing for the refund;
             278          (iv) for sales and use taxes paid under this chapter on the sale;
             279          (v) in accordance with Section 59-12-110 ; and
             280          (vi) subject to any extension allowed for filing for a refund under Section 59-12-110 , if
             281      the person files for the refund on or before September 30, 2011;
             282          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             283      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             284      exhibitor, distributor, or commercial television or radio broadcaster;
             285          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             286      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             287      washing of tangible personal property;
             288          (b) if a seller that sells at the same business location assisted cleaning or washing of
             289      tangible personal property and cleaning or washing of tangible personal property that is not
             290      assisted cleaning or washing of tangible personal property, the exemption described in
             291      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             292      or washing of the tangible personal property; and
             293          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             294      Utah Administrative Rulemaking Act, the commission may make rules:
             295          (i) governing the circumstances under which sales are at the same business location;
             296      and
             297          (ii) establishing the procedures and requirements for a seller to separately account for
             298      sales of assisted cleaning or washing of tangible personal property;
             299          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             300      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             301      fulfilled;
             302          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             303      this state if the vehicle is:
             304          (a) not registered in this state; and


             305          (b) (i) not used in this state; or
             306          (ii) used in this state:
             307          (A) if the vehicle is not used to conduct business, for a time period that does not
             308      exceed the longer of:
             309          (I) 30 days in any calendar year; or
             310          (II) the time period necessary to transport the vehicle to the borders of this state; or
             311          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             312      the vehicle to the borders of this state;
             313          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             314          (i) the item is intended for human use; and
             315          (ii) (A) a prescription was issued for the item; or
             316          (B) the item was purchased by a hospital or other medical facility; and
             317          (b) (i) Subsection (10)(a) applies to:
             318          (A) a drug;
             319          (B) a syringe; or
             320          (C) a stoma supply; and
             321          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             322      commission may by rule define the terms:
             323          (A) "syringe"; or
             324          (B) "stoma supply";
             325          (11) sales or use of property, materials, or services used in the construction of or
             326      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             327          (12) (a) sales of an item described in Subsection (12)(c) served by:
             328          (i) the following if the item described in Subsection (12)(c) is not available to the
             329      general public:
             330          (A) a church; or
             331          (B) a charitable institution;
             332          (ii) an institution of higher education if:
             333          (A) the item described in Subsection (12)(c) is not available to the general public; or
             334          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             335      offered by the institution of higher education; or


             336          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             337          (i) a medical facility; or
             338          (ii) a nursing facility; and
             339          (c) Subsections (12)(a) and (b) apply to:
             340          (i) food and food ingredients;
             341          (ii) prepared food; or
             342          (iii) alcoholic beverages;
             343          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             344      or a product transferred electronically by a person:
             345          (i) regardless of the number of transactions involving the sale of that tangible personal
             346      property or product transferred electronically by that person; and
             347          (ii) not regularly engaged in the business of selling that type of tangible personal
             348      property or product transferred electronically;
             349          (b) this Subsection (13) does not apply if:
             350          (i) the sale is one of a series of sales of a character to indicate that the person is
             351      regularly engaged in the business of selling that type of tangible personal property or product
             352      transferred electronically;
             353          (ii) the person holds that person out as regularly engaged in the business of selling that
             354      type of tangible personal property or product transferred electronically;
             355          (iii) the person sells an item of tangible personal property or product transferred
             356      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             357          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             358      this state in which case the tax is based upon:
             359          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             360      sold; or
             361          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             362      value of the vehicle or vessel being sold at the time of the sale as determined by the
             363      commission; and
             364          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             365      commission shall make rules establishing the circumstances under which:
             366          (i) a person is regularly engaged in the business of selling a type of tangible personal


             367      property or product transferred electronically;
             368          (ii) a sale of tangible personal property or a product transferred electronically is one of
             369      a series of sales of a character to indicate that a person is regularly engaged in the business of
             370      selling that type of tangible personal property or product transferred electronically; or
             371          (iii) a person holds that person out as regularly engaged in the business of selling a type
             372      of tangible personal property or product transferred electronically;
             373          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             374      July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
             375      facility, for the following:
             376          (i) machinery and equipment that:
             377          (A) is used:
             378          (I) for a manufacturing facility other than a manufacturing facility that is a scrap
             379      recycler described in Subsection 59-12-102 (52)(b):
             380          (Aa) in the manufacturing process; and
             381          (Bb) to manufacture an item sold as tangible personal property; or
             382          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             383      59-12-102 (52)(b), to process an item sold as tangible personal property; and
             384          (B) has an economic life of three or more years; and
             385          (ii) normal operating repair or replacement parts that:
             386          (A) have an economic life of three or more years; and
             387          (B) are used:
             388          (I) for a manufacturing facility in the state other than a manufacturing facility that is a
             389      scrap recycler described in Subsection 59-12-102 (52)(b), in the manufacturing process; or
             390          (II) for a manufacturing facility in the state that is a scrap recycler described in
             391      Subsection 59-12-102 (52)(b), to process an item sold as tangible personal property;
             392          (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             393      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             394      for the following:
             395          (A) machinery and equipment that:
             396          (I) is used:
             397          (Aa) in the manufacturing process; and


             398          (Bb) to manufacture an item sold as tangible personal property; and
             399          (II) has an economic life of three or more years; and
             400          (B) normal operating repair or replacement parts that:
             401          (I) are used in the manufacturing process in a manufacturing facility in the state; and
             402          (II) have an economic life of three or more years; and
             403          (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
             404      2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
             405      claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
             406          (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
             407      and
             408          (B) in accordance with Section 59-12-110 ;
             409          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             410      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             411      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             412      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             413      of the 2002 North American Industry Classification System of the federal Executive Office of
             414      the President, Office of Management and Budget:
             415          (i) machinery and equipment that:
             416          (A) are used in:
             417          (I) the production process, other than the production of real property; or
             418          (II) research and development; and
             419          (B) have an economic life of three or more years; and
             420          (ii) normal operating repair or replacement parts that:
             421          (A) have an economic life of three or more years; and
             422          (B) are used in:
             423          (I) the production process, other than the production of real property, in an
             424      establishment described in this Subsection (14)(c) in the state; or
             425          (II) research and development in an establishment described in this Subsection (14)(c)
             426      in the state;
             427          (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             428      Utah Administrative Rulemaking Act, the commission:


             429          (i) shall by rule define the term "establishment"; and
             430          (ii) may by rule define what constitutes:
             431          (A) processing an item sold as tangible personal property;
             432          (B) the production process, other than the production of real property; or
             433          (C) research and development; and
             434          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             435      commission shall:
             436          (i) review the exemptions described in this Subsection (14) and make
             437      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             438      exemptions should be continued, modified, or repealed; and
             439          (ii) include in its report:
             440          (A) the cost of the exemptions;
             441          (B) the purpose and effectiveness of the exemptions; and
             442          (C) the benefits of the exemptions to the state;
             443          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             444          (i) tooling;
             445          (ii) special tooling;
             446          (iii) support equipment;
             447          (iv) special test equipment; or
             448          (v) parts used in the repairs or renovations of tooling or equipment described in
             449      Subsections (15)(a)(i) through (iv); and
             450          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             451          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             452      performance of any aerospace or electronics industry contract with the United States
             453      government or any subcontract under that contract; and
             454          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             455      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             456      by:
             457          (A) a government identification tag placed on the tooling, equipment, or parts; or
             458          (B) listing on a government-approved property record if placing a government
             459      identification tag on the tooling, equipment, or parts is impractical;


             460          (16) sales of newspapers or newspaper subscriptions;
             461          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             462      product transferred electronically traded in as full or part payment of the purchase price, except
             463      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             464      trade-ins are limited to other vehicles only, and the tax is based upon:
             465          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             466      vehicle being traded in; or
             467          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             468      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             469      commission; and
             470          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             471      following items of tangible personal property or products transferred electronically traded in as
             472      full or part payment of the purchase price:
             473          (i) money;
             474          (ii) electricity;
             475          (iii) water;
             476          (iv) gas; or
             477          (v) steam;
             478          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             479      or a product transferred electronically used or consumed primarily and directly in farming
             480      operations, regardless of whether the tangible personal property or product transferred
             481      electronically:
             482          (A) becomes part of real estate; or
             483          (B) is installed by a:
             484          (I) farmer;
             485          (II) contractor; or
             486          (III) subcontractor; or
             487          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             488      product transferred electronically if the tangible personal property or product transferred
             489      electronically is exempt under Subsection (18)(a)(i); and
             490          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are


             491      subject to the taxes imposed by this chapter:
             492          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             493      incidental to farming:
             494          (I) machinery;
             495          (II) equipment;
             496          (III) materials; or
             497          (IV) supplies; and
             498          (B) tangible personal property that is considered to be used in a manner that is
             499      incidental to farming includes:
             500          (I) hand tools; or
             501          (II) maintenance and janitorial equipment and supplies;
             502          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             503      transferred electronically if the tangible personal property or product transferred electronically
             504      is used in an activity other than farming; and
             505          (B) tangible personal property or a product transferred electronically that is considered
             506      to be used in an activity other than farming includes:
             507          (I) office equipment and supplies; or
             508          (II) equipment and supplies used in:
             509          (Aa) the sale or distribution of farm products;
             510          (Bb) research; or
             511          (Cc) transportation; or
             512          (iii) a vehicle required to be registered by the laws of this state during the period
             513      ending two years after the date of the vehicle's purchase;
             514          (19) sales of hay;
             515          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             516      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             517      garden, farm, or other agricultural produce is sold by:
             518          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             519      agricultural produce;
             520          (b) an employee of the producer described in Subsection (20)(a); or
             521          (c) a member of the immediate family of the producer described in Subsection (20)(a);


             522          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             523      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             524          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             525      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             526      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             527      manufacturer, processor, wholesaler, or retailer;
             528          (23) a product stored in the state for resale;
             529          (24) (a) purchases of a product if:
             530          (i) the product is:
             531          (A) purchased outside of this state;
             532          (B) brought into this state:
             533          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             534          (II) by a nonresident person who is not living or working in this state at the time of the
             535      purchase;
             536          (C) used for the personal use or enjoyment of the nonresident person described in
             537      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             538          (D) not used in conducting business in this state; and
             539          (ii) for:
             540          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             541      the product for a purpose for which the product is designed occurs outside of this state;
             542          (B) a boat, the boat is registered outside of this state; or
             543          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             544      outside of this state;
             545          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             546          (i) a lease or rental of a product; or
             547          (ii) a sale of a vehicle exempt under Subsection (33); and
             548          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             549      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             550      following:
             551          (i) conducting business in this state if that phrase has the same meaning in this
             552      Subsection (24) as in Subsection (64);


             553          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             554      as in Subsection (64); or
             555          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             556      this Subsection (24) as in Subsection (64);
             557          (25) a product purchased for resale in this state, in the regular course of business, either
             558      in its original form or as an ingredient or component part of a manufactured or compounded
             559      product;
             560          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             561      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             562      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             563      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             564      Act;
             565          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             566      person for use in compounding a service taxable under the subsections;
             567          (28) purchases made in accordance with the special supplemental nutrition program for
             568      women, infants, and children established in 42 U.S.C. Sec. 1786;
             569          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             570      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             571      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             572      Manual of the federal Executive Office of the President, Office of Management and Budget;
             573          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             574      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             575          (a) not registered in this state; and
             576          (b) (i) not used in this state; or
             577          (ii) used in this state:
             578          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             579      time period that does not exceed the longer of:
             580          (I) 30 days in any calendar year; or
             581          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             582      the borders of this state; or
             583          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time


             584      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             585      state;
             586          (31) sales of aircraft manufactured in Utah;
             587          (32) amounts paid for the purchase of telecommunications service for purposes of
             588      providing telecommunications service;
             589          (33) sales, leases, or uses of the following:
             590          (a) a vehicle by an authorized carrier; or
             591          (b) tangible personal property that is installed on a vehicle:
             592          (i) sold or leased to or used by an authorized carrier; and
             593          (ii) before the vehicle is placed in service for the first time;
             594          (34) (a) 45% of the sales price of any new manufactured home; and
             595          (b) 100% of the sales price of any used manufactured home;
             596          (35) sales relating to schools and fundraising sales;
             597          (36) sales or rentals of durable medical equipment if:
             598          (a) a person presents a prescription for the durable medical equipment; and
             599          (b) the durable medical equipment is used for home use only;
             600          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             601      Section 72-11-102 ; and
             602          (b) the commission shall by rule determine the method for calculating sales exempt
             603      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             604          (38) sales to a ski resort of:
             605          (a) snowmaking equipment;
             606          (b) ski slope grooming equipment;
             607          (c) passenger ropeways as defined in Section 72-11-102 ; or
             608          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             609      described in Subsections (38)(a) through (c);
             610          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             611          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             612      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             613      59-12-102 ;
             614          (b) if a seller that sells or rents at the same business location the right to use or operate


             615      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             616      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             617      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             618      amusement, entertainment, or recreation for the assisted amusement devices; and
             619          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             620      Utah Administrative Rulemaking Act, the commission may make rules:
             621          (i) governing the circumstances under which sales are at the same business location;
             622      and
             623          (ii) establishing the procedures and requirements for a seller to separately account for
             624      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             625      assisted amusement devices;
             626          (41) (a) sales of photocopies by:
             627          (i) a governmental entity; or
             628          (ii) an entity within the state system of public education, including:
             629          (A) a school; or
             630          (B) the State Board of Education; or
             631          (b) sales of publications by a governmental entity;
             632          (42) amounts paid for admission to an athletic event at an institution of higher
             633      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             634      20 U.S.C. Sec. 1681 et seq.;
             635          (43) sales of telecommunications service charged to a prepaid telephone calling card;
             636          (44) (a) sales made to or by:
             637          (i) an area agency on aging; or
             638          (ii) a senior citizen center owned by a county, city, or town; or
             639          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             640          (45) sales or leases of semiconductor fabricating, processing, research, or development
             641      materials regardless of whether the semiconductor fabricating, processing, research, or
             642      development materials:
             643          (a) actually come into contact with a semiconductor; or
             644          (b) ultimately become incorporated into real property;
             645          (46) an amount paid by or charged to a purchaser for accommodations and services


             646      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             647      59-12-104.2 ;
             648          (47) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             649      sports event registration certificate in accordance with Section 41-3-306 for the event period
             650      specified on the temporary sports event registration certificate;
             651          (48) sales or uses of electricity, if the sales or uses are:
             652          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             653      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             654      source, as designated in the tariff by the Public Service Commission of Utah; and
             655          (b) for an amount of electricity that is:
             656          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             657      under the tariff described in Subsection (48)(a); and
             658          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             659      Subsection (48)(a) that may be purchased under the tariff described in Subsection (48)(a);
             660          (49) sales or rentals of mobility enhancing equipment if a person presents a
             661      prescription for the mobility enhancing equipment;
             662          (50) sales of water in a:
             663          (a) pipe;
             664          (b) conduit;
             665          (c) ditch; or
             666          (d) reservoir;
             667          (51) sales of currency or coinage that constitute legal tender of the United States or of a
             668      foreign nation;
             669          (52) (a) sales of an item described in Subsection (52)(b) if the item:
             670          (i) does not constitute legal tender of any nation; and
             671          (ii) has a gold, silver, or platinum content of 80% or more; and
             672          (b) Subsection (52)(a) applies to a gold, silver, or platinum:
             673          (i) ingot;
             674          (ii) bar;
             675          (iii) medallion; or
             676          (iv) decorative coin;


             677          (53) amounts paid on a sale-leaseback transaction;
             678          (54) sales of a prosthetic device:
             679          (a) for use on or in a human; and
             680          (b) (i) for which a prescription is required; or
             681          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             682          (55) (a) except as provided in Subsection (55)(b), purchases, leases, or rentals of
             683      machinery or equipment by an establishment described in Subsection (55)(c) if the machinery
             684      or equipment is primarily used in the production or postproduction of the following media for
             685      commercial distribution:
             686          (i) a motion picture;
             687          (ii) a television program;
             688          (iii) a movie made for television;
             689          (iv) a music video;
             690          (v) a commercial;
             691          (vi) a documentary; or
             692          (vii) a medium similar to Subsections (55)(a)(i) through (vi) as determined by the
             693      commission by administrative rule made in accordance with Subsection (55)(d); or
             694          (b) notwithstanding Subsection (55)(a), purchases, leases, or rentals of machinery or
             695      equipment by an establishment described in Subsection (55)(c) that is used for the production
             696      or postproduction of the following are subject to the taxes imposed by this chapter:
             697          (i) a live musical performance;
             698          (ii) a live news program; or
             699          (iii) a live sporting event;
             700          (c) the following establishments listed in the 1997 North American Industry
             701      Classification System of the federal Executive Office of the President, Office of Management
             702      and Budget, apply to Subsections (55)(a) and (b):
             703          (i) NAICS Code 512110; or
             704          (ii) NAICS Code 51219; and
             705          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             706      commission may by rule:
             707          (i) prescribe what constitutes a medium similar to Subsections (55)(a)(i) through (vi);


             708      or
             709          (ii) define:
             710          (A) "commercial distribution";
             711          (B) "live musical performance";
             712          (C) "live news program"; or
             713          (D) "live sporting event";
             714          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             715      or before June 30, 2019, of machinery or equipment that:
             716          (i) is leased or purchased for or by a facility that:
             717          (A) is a renewable energy production facility;
             718          (B) is located in the state; and
             719          (C) (I) becomes operational on or after July 1, 2004; or
             720          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             721      2004 as a result of the use of the machinery or equipment;
             722          (ii) has an economic life of five or more years; and
             723          (iii) is used to make the facility or the increase in capacity of the facility described in
             724      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             725      transmission grid including:
             726          (A) a wind turbine;
             727          (B) generating equipment;
             728          (C) a control and monitoring system;
             729          (D) a power line;
             730          (E) substation equipment;
             731          (F) lighting;
             732          (G) fencing;
             733          (H) pipes; or
             734          (I) other equipment used for locating a power line or pole; and
             735          (b) this Subsection (56) does not apply to:
             736          (i) machinery or equipment used in construction of:
             737          (A) a new renewable energy production facility; or
             738          (B) the increase in the capacity of a renewable energy production facility;


             739          (ii) contracted services required for construction and routine maintenance activities;
             740      and
             741          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             742      of the facility described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or
             743      acquired after:
             744          (A) the renewable energy production facility described in Subsection (56)(a)(i) is
             745      operational as described in Subsection (56)(a)(iii); or
             746          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             747      in Subsection (56)(a)(iii);
             748          (57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             749      or before June 30, 2019, of machinery or equipment that:
             750          (i) is leased or purchased for or by a facility that:
             751          (A) is a waste energy production facility;
             752          (B) is located in the state; and
             753          (C) (I) becomes operational on or after July 1, 2004; or
             754          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             755      2004 as a result of the use of the machinery or equipment;
             756          (ii) has an economic life of five or more years; and
             757          (iii) is used to make the facility or the increase in capacity of the facility described in
             758      Subsection (57)(a)(i) operational up to the point of interconnection with an existing
             759      transmission grid including:
             760          (A) generating equipment;
             761          (B) a control and monitoring system;
             762          (C) a power line;
             763          (D) substation equipment;
             764          (E) lighting;
             765          (F) fencing;
             766          (G) pipes; or
             767          (H) other equipment used for locating a power line or pole; and
             768          (b) this Subsection (57) does not apply to:
             769          (i) machinery or equipment used in construction of:


             770          (A) a new waste energy facility; or
             771          (B) the increase in the capacity of a waste energy facility;
             772          (ii) contracted services required for construction and routine maintenance activities;
             773      and
             774          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             775      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             776          (A) the waste energy facility described in Subsection (57)(a)(i) is operational as
             777      described in Subsection (57)(a)(iii); or
             778          (B) the increased capacity described in Subsection (57)(a)(i) is operational as described
             779      in Subsection (57)(a)(iii);
             780          (58) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             781      or before June 30, 2019, of machinery or equipment that:
             782          (i) is leased or purchased for or by a facility that:
             783          (A) is located in the state;
             784          (B) produces fuel from biomass energy including:
             785          (I) methanol; or
             786          (II) ethanol; and
             787          (C) (I) becomes operational on or after July 1, 2004; or
             788          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             789      a result of the installation of the machinery or equipment;
             790          (ii) has an economic life of five or more years; and
             791          (iii) is installed on the facility described in Subsection (58)(a)(i);
             792          (b) this Subsection (58) does not apply to:
             793          (i) machinery or equipment used in construction of:
             794          (A) a new facility described in Subsection (58)(a)(i); or
             795          (B) the increase in capacity of the facility described in Subsection (58)(a)(i); or
             796          (ii) contracted services required for construction and routine maintenance activities;
             797      and
             798          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             799      described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
             800          (A) the facility described in Subsection (58)(a)(i) is operational; or


             801          (B) the increased capacity described in Subsection (58)(a)(i) is operational;
             802          (59) (a) subject to Subsection (59)(b) or (c), sales of tangible personal property or a
             803      product transferred electronically to a person within this state if that tangible personal property
             804      or product transferred electronically is subsequently shipped outside the state and incorporated
             805      pursuant to contract into and becomes a part of real property located outside of this state;
             806          (b) the exemption under Subsection (59)(a) is not allowed to the extent that the other
             807      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             808      gross receipts, or other similar transaction excise tax on the transaction against which the other
             809      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             810          (c) notwithstanding the time period of Subsection 59-12-110 (2)(b) for filing for a
             811      refund, a person may claim the exemption allowed by this Subsection (59) for a sale by filing
             812      for a refund:
             813          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             814          (ii) as if this Subsection (59) as in effect on July 1, 2008, were in effect on the day on
             815      which the sale is made;
             816          (iii) if the person did not claim the exemption allowed by this Subsection (59) for the
             817      sale prior to filing for the refund;
             818          (iv) for sales and use taxes paid under this chapter on the sale;
             819          (v) in accordance with Section 59-12-110 ; and
             820          (vi) subject to any extension allowed for filing for a refund under Section 59-12-110 , if
             821      the person files for the refund on or before June 30, 2011;
             822          (60) purchases:
             823          (a) of one or more of the following items in printed or electronic format:
             824          (i) a list containing information that includes one or more:
             825          (A) names; or
             826          (B) addresses; or
             827          (ii) a database containing information that includes one or more:
             828          (A) names; or
             829          (B) addresses; and
             830          (b) used to send direct mail;
             831          (61) redemptions or repurchases of a product by a person if that product was:


             832          (a) delivered to a pawnbroker as part of a pawn transaction; and
             833          (b) redeemed or repurchased within the time period established in a written agreement
             834      between the person and the pawnbroker for redeeming or repurchasing the product;
             835          (62) (a) purchases or leases of an item described in Subsection (62)(b) if the item:
             836          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             837      and
             838          (ii) has a useful economic life of one or more years; and
             839          (b) the following apply to Subsection (62)(a):
             840          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             841          (ii) telecommunications equipment, machinery, or software required for 911 service;
             842          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             843          (iv) telecommunications switching or routing equipment, machinery, or software; or
             844          (v) telecommunications transmission equipment, machinery, or software;
             845          (63) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             846      personal property or a product transferred electronically that are used in the research and
             847      development of coal-to-liquids, oil shale, or tar sands technology; and
             848          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             849      commission may, for purposes of Subsection (63)(a), make rules defining what constitutes
             850      purchases of tangible personal property or a product transferred electronically that are used in
             851      the research and development of coal-to-liquids, oil shale, and tar sands technology;
             852          (64) (a) purchases of tangible personal property or a product transferred electronically
             853      if:
             854          (i) the tangible personal property or product transferred electronically is:
             855          (A) purchased outside of this state;
             856          (B) brought into this state at any time after the purchase described in Subsection
             857      (64)(a)(i)(A); and
             858          (C) used in conducting business in this state; and
             859          (ii) for:
             860          (A) tangible personal property or a product transferred electronically other than the
             861      tangible personal property described in Subsection (64)(a)(ii)(B), the first use of the property
             862      for a purpose for which the property is designed occurs outside of this state; or


             863          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             864      outside of this state;
             865          (b) the exemption provided for in Subsection (64)(a) does not apply to:
             866          (i) a lease or rental of tangible personal property or a product transferred electronically;
             867      or
             868          (ii) a sale of a vehicle exempt under Subsection (33); and
             869          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             870      purposes of Subsection (64)(a), the commission may by rule define what constitutes the
             871      following:
             872          (i) conducting business in this state if that phrase has the same meaning in this
             873      Subsection (64) as in Subsection (24);
             874          (ii) the first use of tangible personal property or a product transferred electronically if
             875      that phrase has the same meaning in this Subsection (64) as in Subsection (24); or
             876          (iii) a purpose for which tangible personal property or a product transferred
             877      electronically is designed if that phrase has the same meaning in this Subsection (64) as in
             878      Subsection (24);
             879          (65) sales of disposable home medical equipment or supplies if:
             880          (a) a person presents a prescription for the disposable home medical equipment or
             881      supplies;
             882          (b) the disposable home medical equipment or supplies are used exclusively by the
             883      person to whom the prescription described in Subsection (65)(a) is issued; and
             884          (c) the disposable home medical equipment and supplies are listed as eligible for
             885      payment under:
             886          (i) Title XVIII, federal Social Security Act; or
             887          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             888          (66) sales:
             889          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             890      District Act; or
             891          (b) of tangible personal property to a subcontractor of a public transit district, if the
             892      tangible personal property is:
             893          (i) clearly identified; and


             894          (ii) installed or converted to real property owned by the public transit district;
             895          (67) sales of construction materials:
             896          (a) purchased on or after July 1, 2010;
             897          (b) purchased by, on behalf of, or for the benefit of an international airport:
             898          (i) located within a county of the first class; and
             899          (ii) that has a United States customs office on its premises; and
             900          (c) if the construction materials are:
             901          (i) clearly identified;
             902          (ii) segregated; and
             903          (iii) installed or converted to real property:
             904          (A) owned or operated by the international airport described in Subsection (67)(b); and
             905          (B) located at the international airport described in Subsection (67)(b);
             906          (68) sales of construction materials:
             907          (a) purchased on or after July 1, 2008;
             908          (b) purchased by, on behalf of, or for the benefit of a new airport:
             909          (i) located within a county of the second class; and
             910          (ii) that is owned or operated by a city in which an airline as defined in Section
             911      59-2-102 is headquartered; and
             912          (c) if the construction materials are:
             913          (i) clearly identified;
             914          (ii) segregated; and
             915          (iii) installed or converted to real property:
             916          (A) owned or operated by the new airport described in Subsection (68)(b);
             917          (B) located at the new airport described in Subsection (68)(b); and
             918          (C) as part of the construction of the new airport described in Subsection (68)(b); [and]
             919          (69) sales of fuel to a common carrier that is a railroad for use in a locomotive
             920      engine[.]; and
             921          (70) sales:
             922          (a) to and by the Utah State Railroad Museum Authority under Title 9, Chapter 3, Part
             923      5, Utah State Railroad Museum Authority; or
             924          (b) of tangible personal property to a subcontractor of the authority, if the tangible


             925      personal property is:
             926          (i) clearly identifiable; and
             927          (ii) installed or converted to real property owned by the authority.
             928          Section 13. Effective date.
             929          This bill takes effect on May 12, 2009, except that the amendments to Section
             930      59-12-104 take effect on July 1, 2009.


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