H.B. 403

1

SALES AND USE TAX AND INCOME TAX
2 AMENDMENTS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Kay L. McIff
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill amends the Refundable Tax Credit Act and the Sales and Use Tax Act relating
11 to the sales and use taxation of food and food ingredients and to enact a refundable low
12 income tax credit.
13 Highlighted Provisions:
14 This bill:
15 . defines terms;
16 . enacts a refundable low income tax credit;
17 . provides that the tax credit is subject to apportionment for a nonresident individual
18 or part-year resident individual;
19 . provides that the State Tax Commission shall make transfers from the General Fund
20 to the Education Fund equal to the amount of the low income tax credit claimed;
21 . grants rulemaking authority to the State Tax Commission;
22 . provides that amounts paid or charged for food and food ingredients are subject to
23 the state sales and use tax at a tax rate of 4.70% rather than 1.75%;
24 . provides that amounts paid or charged for food and food ingredients are subject to
25 local sales and use taxes;
26 . repeals provisions relating to the sales and use taxation of a bundled transaction
27 attributable to food and food ingredients and tangible personal property other than

28 food and food ingredients;
29 . addresses whether revenue collected from amounts paid or charged for food and
30 food ingredients or a bundled transaction attributable to food and food ingredients
31 and tangible personal property other than food ingredients are subject to certain
32 provisions designating the state sales and use tax for particular purposes; and
33 . makes technical changes.
34 Monies Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 This bill provides an effective date.
38 This bill provides for retrospective operation.
39 Utah Code Sections Affected:
40 AMENDS:
41 10-1-405, as last amended by Laws of Utah 2008, Chapters 382 and 384
42 11-41-102, as last amended by Laws of Utah 2008, Chapters 286 and 384
43 59-12-102, as last amended by Laws of Utah 2008, Chapters 3, 28, 286, 323, 382, and
44 384
45 59-12-103, as last amended by Laws of Utah 2008, Second Special Session, Chapter 5
46 59-12-108, as last amended by Laws of Utah 2008, Chapters 286, 382, and 384
47 59-12-401, as last amended by Laws of Utah 2008, Chapter 384
48 59-12-402, as last amended by Laws of Utah 2008, Chapter 384
49 59-12-501, as last amended by Laws of Utah 2008, Chapters 7 and 384
50 59-12-502, as last amended by Laws of Utah 2008, Chapter 384
51 59-12-703, as last amended by Laws of Utah 2008, Chapters 382 and 384
52 59-12-802, as last amended by Laws of Utah 2008, Chapter 384
53 59-12-804, as last amended by Laws of Utah 2008, Chapter 384
54 59-12-1001, as last amended by Laws of Utah 2008, Chapters 382 and 384
55 59-12-1302, as last amended by Laws of Utah 2008, Chapters 382 and 384
56 59-12-1402, as last amended by Laws of Utah 2008, Chapters 382 and 384
57 59-12-1503, as last amended by Laws of Utah 2008, Chapters 382 and 384
58 59-12-1703, as last amended by Laws of Utah 2008, Chapters 382 and 384

59 59-12-1903, as enacted by Laws of Utah 2008, Chapter 286
60 59-12-2003, as enacted by Laws of Utah 2008, Chapter 286
61 59-12-2103, as enacted by Laws of Utah 2008, Chapter 323
62 ENACTS:
63 59-10-1102.1, Utah Code Annotated 1953
64 59-10-1108, Utah Code Annotated 1953
65
66 Be it enacted by the Legislature of the state of Utah:
67 Section 1. Section 10-1-405 is amended to read:
68 10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
69 Rulemaking authority -- Charge for services.
70 (1) Subject to the other provisions of this section, the commission shall collect,
71 enforce, and administer any municipal telecommunications license tax imposed under this part
72 pursuant to:
73 (a) the same procedures used in the administration, collection, and enforcement of the
74 state sales and use tax under:
75 (i) Title 59, Chapter 1, General Taxation Policies; and
76 (ii) Title 59, Chapter 12, Part 1, Tax Collection:
77 (A) except for:
78 (I) Subsection 59-12-103 (2)[(g)](f);
79 (II) Section 59-12-104 ;
80 (III) Section 59-12-104.1 ;
81 (IV) Section 59-12-104.2 ;
82 (V) Section 59-12-104.3 ;
83 (VI) Section 59-12-107.1 ; and
84 (VII) Section 59-12-123 ; and
85 (B) except that for purposes of Section 59-12-110 , the term "taxpayer" may include a
86 customer from whom a municipal telecommunications license tax is recovered in accordance
87 with Subsection 10-1-403 (2); and
88 (b) a uniform interlocal agreement:
89 (i) between:

90 (A) the municipality that imposes the municipal telecommunications license tax; and
91 (B) the commission;
92 (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
93 (iii) that complies with Subsection (2)(a); and
94 (iv) that is developed by rule in accordance with Subsection (2)(b).
95 (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
96 the commission shall:
97 (i) transmit monies collected under this part:
98 (A) monthly; and
99 (B) by electronic funds transfer by the commission to the municipality;
100 (ii) conduct audits of the municipal telecommunications license tax;
101 (iii) charge the municipality for the commission's services under this section in an
102 amount:
103 (A) sufficient to reimburse the commission for the cost to the commission in rendering
104 the services; and
105 (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
106 license tax imposed by the ordinance of the municipality; and
107 (iv) collect, enforce, and administer the municipal telecommunications license tax
108 authorized under this part pursuant to the same procedures used in the administration,
109 collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
110 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
111 commission shall develop a uniform interlocal agreement that meets the requirements of this
112 section.
113 (3) The administrative fee charged under Subsection (2)(a) shall be:
114 (a) deposited in the Sales and Use Tax Administrative Fees Account; and
115 (b) used for administration of municipal telecommunications license taxes under this
116 part.
117 (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
118 telecommunications license tax under this part at a rate that exceeds 3.5%:
119 (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
120 shall collect the municipal telecommunications license tax:

121 (i) within the municipality;
122 (ii) at a rate of 3.5%; and
123 (iii) from a telecommunications provider required to pay the municipal
124 telecommunications license tax on or after July 1, 2007; and
125 (b) the commission shall collect a municipal telecommunications license tax within the
126 municipality at the rate imposed by the municipality if:
127 (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
128 telecommunications license tax under this part at a rate of up to 3.5%;
129 (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
130 the rate of the municipal telecommunications license tax; and
131 (iii) a telecommunications provider is required to pay the municipal
132 telecommunications license tax on or after the day on which the ordinance described in
133 Subsection (4)(b)(ii) takes effect.
134 Section 2. Section 11-41-102 is amended to read:
135 11-41-102. Definitions.
136 As used in this chapter:
137 (1) "Agreement" means an oral or written agreement between a:
138 (a) (i) county; or
139 (ii) municipality; and
140 (b) person.
141 (2) "Municipality" means a:
142 (a) city; or
143 (b) town.
144 (3) "Payment" includes:
145 (a) a payment;
146 (b) a rebate;
147 (c) a refund; or
148 (d) an amount similar to Subsections (3)(a) through (c).
149 (4) "Regional retail business" means a:
150 (a) retail business that occupies a floor area of more than 80,000 square feet;
151 (b) dealer as defined in Section 41-1a-102 ;

152 (c) retail shopping facility that has at least two anchor tenants if the total number of
153 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
154 feet; or
155 (d) grocery store that occupies a floor area of more than 30,000 square feet.
156 (5) (a) "Sales and use tax" means a tax:
157 (i) imposed on transactions within a:
158 (A) county; or
159 (B) municipality; and
160 (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
161 Sales and Use Tax Act.
162 (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
163 authorized under:
164 (i) Subsection 59-12-103 (2)(a)(i);
165 (ii) Subsection 59-12-103 (2)(b)(i);
166 [(iii) Subsection 59-12-103 (2)(c)(i);]
167 [(iv) Subsection 59-12-103 (2)(d)(i)(A);]
168 [(v)] (iii) Section 59-12-301 ;
169 [(vi)] (iv) Section 59-12-352 ;
170 [(vii)] (v) Section 59-12-353 ;
171 [(viii)] (vi) Section 59-12-603 ; or
172 [(ix)] (vii) Section 59-12-1201 .
173 (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
174 (i) to a person;
175 (ii) by a:
176 (A) county; or
177 (B) municipality;
178 (iii) to induce the person to locate or relocate a regional retail business within the:
179 (A) county; or
180 (B) municipality; and
181 (iv) that are derived from a sales and use tax.
182 (b) "Sales and use tax incentive payment" does not include funding for public

183 infrastructure.
184 Section 3. Section 59-10-1102.1 is enacted to read:
185 59-10-1102.1. Apportionment of tax credit.
186 A nonresident individual or a part-year resident individual that claims a tax credit in
187 accordance with Section 59-10-1108 may only claim an apportioned amount of the tax credit
188 equal to:
189 (1) for a nonresident individual, the product of:
190 (a) the state income tax percentage for the nonresident individual; and
191 (b) the amount of the tax credit that the nonresident individual would have been
192 allowed to claim but for the apportionment requirements of this section; or
193 (2) for a part-year resident individual, the product of:
194 (a) the state income tax percentage for the part-year resident individual; and
195 (b) the amount of the tax credit that the part-year resident individual would have been
196 allowed to claim but for the apportionment requirements of this section.
197 Section 4. Section 59-10-1108 is enacted to read:
198 59-10-1108. Refundable low income tax credit -- Procedures for refund --
199 Transfers from General Fund to Education Fund -- Rulemaking authority.
200 (1) As used in this section, "federal earned income tax credit" means the amount of the
201 federal earned income tax credit a claimant claims as allowed:
202 (a) in accordance with Section 32, Internal Revenue Code;
203 (b) for the taxable year; and
204 (c) on the claimant's federal individual income tax return.
205 (2) Except as provided in Section 59-10-1102.1 and subject to Subsections (3) and (4),
206 a claimant may claim a refundable low income tax credit equal to 6% of the federal earned
207 income tax credit.
208 (3) For purposes of this section, if a husband and wife file a single return jointly, the
209 husband and wife are considered to be one claimant.
210 (4) A claimant may not carry forward or carry back a tax credit provided for under this
211 section.
212 (5) (a) In accordance with any rules prescribed by the commission under Subsection
213 (5)(b), the commission shall:

214 (i) make a refund to a claimant that claims a tax credit under this section if the amount
215 of the tax credit exceeds the claimant's tax liability under this chapter; and
216 (ii) transfer at least annually from the General Fund into the Education Fund an amount
217 equal to the amount of tax credit claimed under this section.
218 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
219 commission may make rules providing procedures for making:
220 (i) a refund to a claimant as required by Subsection (5)(a)(i); or
221 (ii) transfers from the General Fund into the Education Fund as required by Subsection
222 (5)(a)(ii).
223 Section 5. Section 59-12-102 is amended to read:
224 59-12-102. Definitions.
225 As used in this chapter:
226 (1) "800 service" means a telecommunications service that:
227 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
228 (b) is typically marketed:
229 (i) under the name 800 toll-free calling;
230 (ii) under the name 855 toll-free calling;
231 (iii) under the name 866 toll-free calling;
232 (iv) under the name 877 toll-free calling;
233 (v) under the name 888 toll-free calling; or
234 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
235 Federal Communications Commission.
236 (2) (a) "900 service" means an inbound toll telecommunications service that:
237 (i) a subscriber purchases;
238 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
239 the subscriber's:
240 (A) prerecorded announcement; or
241 (B) live service; and
242 (iii) is typically marketed:
243 (A) under the name 900 service; or
244 (B) under a name similar to Subsection (2)[(c)](a)(iii)(A) as designated by the Federal

245 Communications Commission.
246 (b) "900 service" does not include a charge for:
247 (i) a collection service a seller of a telecommunications service provides to a
248 subscriber; or
249 (ii) the following a subscriber sells to the subscriber's customer:
250 (A) a product; or
251 (B) a service.
252 (3) (a) "Admission or user fees" includes season passes.
253 (b) "Admission or user fees" does not include annual membership dues to private
254 organizations.
255 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
256 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
257 Agreement after November 12, 2002.
258 (5) "Agreement combined tax rate" means the sum of the tax rates:
259 (a) listed under Subsection (6); and
260 (b) that are imposed within a local taxing jurisdiction.
261 (6) "Agreement sales and use tax" means a tax imposed under:
262 (a) Subsection 59-12-103 (2)(a)(i)(A);
263 (b) Subsection 59-12-103 (2)(b)(i);
264 [(c) Subsection 59-12-103 (2)(c)(i);]
265 [(d) Subsection 59-12-103 (2)(d)(i)(A)(I);]
266 [(e)] (c) Section 59-12-204 ;
267 [(f)] (d) Section 59-12-401 ;
268 [(g)] (e) Section 59-12-402 ;
269 [(h)] (f) Section 59-12-501 ;
270 [(i)] (g) Section 59-12-502 ;
271 [(j)] (h) Section 59-12-703 ;
272 [(k)] (i) Section 59-12-802 ;
273 [(l)] (j) Section 59-12-804 ;
274 [(m)] (k) Section 59-12-1001 ;
275 [(n)] (l) Section 59-12-1102 ;

276 [(o)] (m) Section 59-12-1302 ;
277 [(p)] (n) Section 59-12-1402 ;
278 [(q)] (o) Section 59-12-1503 ;
279 [(r)] (p) Section 59-12-1703 ;
280 [(s)] (q) Section 59-12-1802 ;
281 [(t)] (r) Section 59-12-1903 ;
282 [(u)] (s) Section 59-12-2003 ; or
283 [(v)] (t) Section 59-12-2103 .
284 (7) "Aircraft" is as defined in Section 72-10-102 .
285 (8) "Alcoholic beverage" means a beverage that:
286 (a) is suitable for human consumption; and
287 (b) contains .5% or more alcohol by volume.
288 (9) (a) "Ancillary service" means a service associated with, or incidental to, the
289 provision of telecommunications service.
290 (b) "Ancillary service" includes:
291 (i) a conference bridging service;
292 (ii) a detailed communications billing service;
293 (iii) directory assistance;
294 (iv) a vertical service; or
295 (v) a voice mail service.
296 (10) "Area agency on aging" is as defined in Section 62A-3-101 .
297 (11) "Assisted amusement device" means an amusement device, skill device, or ride
298 device that is started and stopped by an individual:
299 (a) who is not the purchaser or renter of the right to use or operate the amusement
300 device, skill device, or ride device; and
301 (b) at the direction of the seller of the right to use the amusement device, skill device,
302 or ride device.
303 (12) "Assisted cleaning or washing of tangible personal property" means cleaning or
304 washing of tangible personal property if the cleaning or washing labor is primarily performed
305 by an individual:
306 (a) who is not the purchaser of the cleaning or washing of the tangible personal

307 property; and
308 (b) at the direction of the seller of the cleaning or washing of the tangible personal
309 property.
310 (13) "Authorized carrier" means:
311 (a) in the case of vehicles operated over public highways, the holder of credentials
312 indicating that the vehicle is or will be operated pursuant to both the International Registration
313 Plan and the International Fuel Tax Agreement;
314 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
315 certificate or air carrier's operating certificate; or
316 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
317 stock, the holder of a certificate issued by the United States Surface Transportation Board.
318 (14) (a) Except as provided in Subsection (14)(b), "biomass energy" means any of the
319 following that is used as the primary source of energy to produce fuel or electricity:
320 (i) material from a plant or tree; or
321 (ii) other organic matter that is available on a renewable basis, including:
322 (A) slash and brush from forests and woodlands;
323 (B) animal waste;
324 (C) methane produced:
325 (I) at landfills; or
326 (II) as a byproduct of the treatment of wastewater residuals;
327 (D) aquatic plants; and
328 (E) agricultural products.
329 (b) "Biomass energy" does not include:
330 (i) black liquor;
331 (ii) treated woods; or
332 (iii) biomass from municipal solid waste other than methane produced:
333 (A) at landfills; or
334 (B) as a byproduct of the treatment of wastewater residuals.
335 (15) (a) "Bundled transaction" means the sale of two or more items of tangible personal
336 property, products, or services if the tangible personal property, products, or services are:
337 (i) distinct and identifiable; and

338 (ii) sold for one nonitemized price.
339 (b) "Bundled transaction" does not include:
340 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
341 the basis of the selection by the purchaser of the items of tangible personal property included in
342 the transaction;
343 (ii) the sale of real property;
344 (iii) the sale of services to real property;
345 (iv) the retail sale of tangible personal property and a service if:
346 (A) the tangible personal property:
347 (I) is essential to the use of the service; and
348 (II) is provided exclusively in connection with the service; and
349 (B) the service is the true object of the transaction;
350 (v) the retail sale of two services if:
351 (A) one service is provided that is essential to the use or receipt of a second service;
352 (B) the first service is provided exclusively in connection with the second service; and
353 (C) the second service is the true object of the transaction;
354 (vi) a transaction that includes tangible personal property or a product subject to
355 taxation under this chapter and tangible personal property or a product that is not subject to
356 taxation under this chapter if the:
357 (A) seller's purchase price of the tangible personal property or product subject to
358 taxation under this chapter is de minimis; or
359 (B) seller's sales price of the tangible personal property or product subject to taxation
360 under this chapter is de minimis; and
361 (vii) the retail sale of tangible personal property that is not subject to taxation under
362 this chapter and tangible personal property that is subject to taxation under this chapter if:
363 (A) that retail sale includes:
364 (I) food and food ingredients;
365 (II) a drug;
366 (III) durable medical equipment;
367 (IV) mobility enhancing equipment;
368 (V) an over-the-counter drug;

369 (VI) a prosthetic device; or
370 (VII) a medical supply; and
371 (B) subject to Subsection (15)(f):
372 (I) the seller's purchase price of the tangible personal property subject to taxation under
373 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
374 (II) the seller's sales price of the tangible personal property subject to taxation under
375 this chapter is 50% or less of the seller's total sales price of that retail sale.
376 (c) (i) For purposes of Subsection (15)(a) (i), tangible personal property, a product, or a
377 service that is distinct and identifiable does not include:
378 (A) packaging that:
379 (I) accompanies the sale of the tangible personal property, product, or service; and
380 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
381 service;
382 (B) tangible personal property, a product, or a service provided free of charge with the
383 purchase of another item of tangible personal property, a product, or a service; or
384 (C) an item of tangible personal property, a product, or a service included in the
385 definition of "purchase price."
386 (ii) For purposes of Subsection (15)(c)(i)(B), an item of tangible personal property, a
387 product, or a service is provided free of charge with the purchase of another item of tangible
388 personal property, a product, or a service if the sales price of the purchased item of tangible
389 personal property, product, or service does not vary depending on the inclusion of the tangible
390 personal property, product, or service provided free of charge.
391 (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
392 does not include a price that is separately identified by product on the following, regardless of
393 whether the following is in paper format or electronic format:
394 (A) a binding sales document; or
395 (B) another supporting sales-related document that is available to a purchaser.
396 (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
397 supporting sales-related document that is available to a purchaser includes:
398 (A) a bill of sale;
399 (B) a contract;

400 (C) an invoice;
401 (D) a lease agreement;
402 (E) a periodic notice of rates and services;
403 (F) a price list;
404 (G) a rate card;
405 (H) a receipt; or
406 (I) a service agreement.
407 (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
408 property or a product subject to taxation under this chapter is de minimis if:
409 (A) the seller's purchase price of the tangible personal property or product is 10% or
410 less of the seller's total purchase price of the bundled transaction; or
411 (B) the seller's sales price of the tangible personal property or product is 10% or less of
412 the seller's total sales price of the bundled transaction.
413 (ii) For purposes of Subsection (15)(b)(vi), a seller:
414 (A) shall use the seller's purchase price or the seller's sales price to determine if the
415 purchase price or sales price of the tangible personal property or product subject to taxation
416 under this chapter is de minimis; and
417 (B) may not use a combination of the seller's purchase price and the seller's sales price
418 to determine if the purchase price or sales price of the tangible personal property or product
419 subject to taxation under this chapter is de minimis.
420 (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
421 contract to determine if the sales price of tangible personal property or a product is de minimis.
422 (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
423 the seller's purchase price and the seller's sales price to determine if tangible personal property
424 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
425 price of that retail sale.
426 (16) "Certified automated system" means software certified by the governing board of
427 the agreement in accordance with Section 59-12-102.1 that:
428 (a) calculates the agreement sales and use tax imposed within a local taxing
429 jurisdiction:
430 (i) on a transaction; and

431 (ii) in the states that are members of the agreement;
432 (b) determines the amount of agreement sales and use tax to remit to a state that is a
433 member of the agreement; and
434 (c) maintains a record of the transaction described in Subsection (16)(a)(i).
435 (17) "Certified service provider" means an agent certified:
436 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
437 and
438 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
439 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
440 own purchases.
441 (18) (a) Subject to Subsection (18)(b), "clothing" means all human wearing apparel
442 suitable for general use.
443 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
444 commission shall make rules:
445 (i) listing the items that constitute "clothing"; and
446 (ii) that are consistent with the list of items that constitute "clothing" under the
447 agreement.
448 (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
449 (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
450 fuels that does not constitute industrial use under Subsection (46) or residential use under
451 Subsection (91).
452 (21) (a) "Common carrier" means a person engaged in or transacting the business of
453 transporting passengers, freight, merchandise, or other property for hire within this state.
454 (b) (i) "Common carrier" does not include a person who, at the time the person is
455 traveling to or from that person's place of employment, transports a passenger to or from the
456 passenger's place of employment.
457 (ii) For purposes of Subsection (21)(b)(i), in accordance with Title 63G, Chapter 3,
458 Utah Administrative Rulemaking Act, the commission may make rules defining what
459 constitutes a person's place of employment.
460 (22) "Component part" includes:
461 (a) poultry, dairy, and other livestock feed, and their components;

462 (b) baling ties and twine used in the baling of hay and straw;
463 (c) fuel used for providing temperature control of orchards and commercial
464 greenhouses doing a majority of their business in wholesale sales, and for providing power for
465 off-highway type farm machinery; and
466 (d) feed, seeds, and seedlings.
467 (23) "Computer" means an electronic device that accepts information:
468 (a) (i) in digital form; or
469 (ii) in a form similar to digital form; and
470 (b) manipulates that information for a result based on a sequence of instructions.
471 (24) "Computer software" means a set of coded instructions designed to cause:
472 (a) a computer to perform a task; or
473 (b) automatic data processing equipment to perform a task.
474 (25) (a) "Conference bridging service" means an ancillary service that links two or
475 more participants of an audio conference call or video conference call.
476 (b) "Conference bridging service" includes providing a telephone number as part of the
477 ancillary service described in Subsection (25)(a).
478 (c) "Conference bridging service" does not include a telecommunications service used
479 to reach the ancillary service described in Subsection (25)(a).
480 (26) "Construction materials" means any tangible personal property that will be
481 converted into real property.
482 (27) "Delivered electronically" means delivered to a purchaser by means other than
483 tangible storage media.
484 (28) (a) "Delivery charge" means a charge:
485 (i) by a seller of:
486 (A) tangible personal property;
487 (B) a product transferred electronically; or
488 (C) services; and
489 (ii) for preparation and delivery of the tangible personal property, product transferred
490 electronically, or services described in Subsection (28)(a)(i) to a location designated by the
491 purchaser.
492 (b) "Delivery charge" includes a charge for the following:

493 (i) transportation;
494 (ii) shipping;
495 (iii) postage;
496 (iv) handling;
497 (v) crating; or
498 (vi) packing.
499 (29) "Detailed telecommunications billing service" means an ancillary service of
500 separately stating information pertaining to individual calls on a customer's billing statement.
501 (30) "Dietary supplement" means a product, other than tobacco, that:
502 (a) is intended to supplement the diet;
503 (b) contains one or more of the following dietary ingredients:
504 (i) a vitamin;
505 (ii) a mineral;
506 (iii) an herb or other botanical;
507 (iv) an amino acid;
508 (v) a dietary substance for use by humans to supplement the diet by increasing the total
509 dietary intake; or
510 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
511 described in Subsections (30)(b)(i) through (v);
512 (c) (i) except as provided in Subsection (30)(c)(ii), is intended for ingestion in:
513 (A) tablet form;
514 (B) capsule form;
515 (C) powder form;
516 (D) softgel form;
517 (E) gelcap form; or
518 (F) liquid form; or
519 (ii) notwithstanding Subsection (30)(c)(i), if the product is not intended for ingestion in
520 a form described in Subsections (30)(c)(i)(A) through (F), is not represented:
521 (A) as conventional food; and
522 (B) for use as a sole item of:
523 (I) a meal; or

524 (II) the diet; and
525 (d) is required to be labeled as a dietary supplement:
526 (i) identifiable by the "Supplemental Facts" box found on the label; and
527 (ii) as required by 21 C.F.R. Sec. 101.36.
528 (31) (a) "Direct mail" means printed material delivered or distributed by United States
529 mail or other delivery service:
530 (i) to:
531 (A) a mass audience; or
532 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
533 (ii) if the cost of the printed material is not billed directly to the recipients.
534 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
535 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
536 (c) "Direct mail" does not include multiple items of printed material delivered to a
537 single address.
538 (32) "Directory assistance" means an ancillary service of providing:
539 (a) address information; or
540 (b) telephone number information.
541 (33) (a) "Disposable home medical equipment or supplies" means medical equipment
542 or supplies that:
543 (i) cannot withstand repeated use; and
544 (ii) are purchased by, for, or on behalf of a person other than:
545 (A) a health care facility as defined in Section 26-21-2 ;
546 (B) a health care provider as defined in Section 78B-3-403 ;
547 (C) an office of a health care provider described in Subsection (33)(a)(ii)(B); or
548 (D) a person similar to a person described in Subsections (33)(a)(ii)(A) through (C).
549 (b) "Disposable home medical equipment or supplies" does not include:
550 (i) a drug;
551 (ii) durable medical equipment;
552 (iii) a hearing aid;
553 (iv) a hearing aid accessory;
554 (v) mobility enhancing equipment; or

555 (vi) tangible personal property used to correct impaired vision, including:
556 (A) eyeglasses; or
557 (B) contact lenses.
558 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
559 commission may by rule define what constitutes medical equipment or supplies.
560 (34) (a) "Drug" means a compound, substance, or preparation, or a component of a
561 compound, substance, or preparation that is:
562 (i) recognized in:
563 (A) the official United States Pharmacopoeia;
564 (B) the official Homeopathic Pharmacopoeia of the United States;
565 (C) the official National Formulary; or
566 (D) a supplement to a publication listed in Subsections (34)(a)(i)(A) through (C);
567 (ii) intended for use in the:
568 (A) diagnosis of disease;
569 (B) cure of disease;
570 (C) mitigation of disease;
571 (D) treatment of disease; or
572 (E) prevention of disease; or
573 (iii) intended to affect:
574 (A) the structure of the body; or
575 (B) any function of the body.
576 (b) "Drug" does not include:
577 (i) food and food ingredients;
578 (ii) a dietary supplement;
579 (iii) an alcoholic beverage; or
580 (iv) a prosthetic device.
581 (35) (a) Except as provided in Subsection (35)(c), "durable medical equipment" means
582 equipment that:
583 (i) can withstand repeated use;
584 (ii) is primarily and customarily used to serve a medical purpose;
585 (iii) generally is not useful to a person in the absence of illness or injury; and

586 (iv) is not worn in or on the body.
587 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
588 equipment described in Subsection (35)(a).
589 (c) Notwithstanding Subsection (35)(a), "durable medical equipment" does not include
590 mobility enhancing equipment.
591 (36) "Electronic" means:
592 (a) relating to technology; and
593 (b) having:
594 (i) electrical capabilities;
595 (ii) digital capabilities;
596 (iii) magnetic capabilities;
597 (iv) wireless capabilities;
598 (v) optical capabilities;
599 (vi) electromagnetic capabilities; or
600 (vii) capabilities similar to Subsections (36)(b)(i) through (vi).
601 (37) "Employee" is as defined in Section 59-10-401 .
602 (38) "Fixed guideway" means a public transit facility that uses and occupies:
603 (a) rail for the use of public transit; or
604 (b) a separate right-of-way for the use of public transit.
605 (39) "Fixed wireless service" means a telecommunications service that provides radio
606 communication between fixed points.
607 (40) (a) "Food and food ingredients" means substances:
608 (i) regardless of whether the substances are in:
609 (A) liquid form;
610 (B) concentrated form;
611 (C) solid form;
612 (D) frozen form;
613 (E) dried form; or
614 (F) dehydrated form; and
615 (ii) that are:
616 (A) sold for:

617 (I) ingestion by humans; or
618 (II) chewing by humans; and
619 (B) consumed for the substance's:
620 (I) taste; or
621 (II) nutritional value.
622 (b) "Food and food ingredients" includes an item described in Subsection (75)(b)(iii).
623 (c) "Food and food ingredients" does not include:
624 (i) an alcoholic beverage;
625 (ii) tobacco; or
626 (iii) prepared food.
627 (41) (a) "Fundraising sales" means sales:
628 (i) (A) made by a school; or
629 (B) made by a school student;
630 (ii) that are for the purpose of raising funds for the school to purchase equipment,
631 materials, or provide transportation; and
632 (iii) that are part of an officially sanctioned school activity.
633 (b) For purposes of Subsection (41)(a)(iii), "officially sanctioned school activity"
634 means a school activity:
635 (i) that is conducted in accordance with a formal policy adopted by the school or school
636 district governing the authorization and supervision of fundraising activities;
637 (ii) that does not directly or indirectly compensate an individual teacher or other
638 educational personnel by direct payment, commissions, or payment in kind; and
639 (iii) the net or gross revenues from which are deposited in a dedicated account
640 controlled by the school or school district.
641 (42) "Geothermal energy" means energy contained in heat that continuously flows
642 outward from the earth that is used as the sole source of energy to produce electricity.
643 (43) "Governing board of the agreement" means the governing board of the agreement
644 that is:
645 (a) authorized to administer the agreement; and
646 (b) established in accordance with the agreement.
647 (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:

648 (i) the executive branch of the state, including all departments, institutions, boards,
649 divisions, bureaus, offices, commissions, and committees;
650 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
651 Office of the Court Administrator, and similar administrative units in the judicial branch;
652 (iii) the legislative branch of the state, including the House of Representatives, the
653 Senate, the Legislative Printing Office, the Office of Legislative Research and General
654 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
655 Analyst;
656 (iv) the National Guard;
657 (v) an independent entity as defined in Section 63E-1-102 ; or
658 (vi) a political subdivision as defined in Section 17B-1-102 .
659 (b) "Governmental entity" does not include the state systems of public and higher
660 education, including:
661 (i) a college campus of the Utah College of Applied Technology;
662 (ii) a school;
663 (iii) the State Board of Education;
664 (iv) the State Board of Regents; or
665 (v) a state institution of higher education as defined in Section 53B-3-102 .
666 (45) "Hydroelectric energy" means water used as the sole source of energy to produce
667 electricity.
668 (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
669 other fuels:
670 (a) in mining or extraction of minerals;
671 (b) in agricultural operations to produce an agricultural product up to the time of
672 harvest or placing the agricultural product into a storage facility, including:
673 (i) commercial greenhouses;
674 (ii) irrigation pumps;
675 (iii) farm machinery;
676 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
677 registered under Title 41, Chapter 1a, Part 2, Registration; and
678 (v) other farming activities;

679 (c) in manufacturing tangible personal property at an establishment described in SIC
680 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
681 Executive Office of the President, Office of Management and Budget;
682 (d) by a scrap recycler if:
683 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
684 one or more of the following items into prepared grades of processed materials for use in new
685 products:
686 (A) iron;
687 (B) steel;
688 (C) nonferrous metal;
689 (D) paper;
690 (E) glass;
691 (F) plastic;
692 (G) textile; or
693 (H) rubber; and
694 (ii) the new products under Subsection (46)(d)(i) would otherwise be made with
695 nonrecycled materials; or
696 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
697 cogeneration facility as defined in Section 54-2-1 .
698 (47) (a) Except as provided in Subsection (47)(b), "installation charge" means a charge
699 for installing:
700 (i) tangible personal property; or
701 (ii) a product transferred electronically.
702 (b) "Installation charge" does not include a charge for repairs or renovations of:
703 (i) tangible personal property; or
704 (ii) a product transferred electronically.
705 (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
706 personal property or a product transferred electronically for:
707 (i) (A) a fixed term; or
708 (B) an indeterminate term; and
709 (ii) consideration.

710 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
711 amount of consideration may be increased or decreased by reference to the amount realized
712 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
713 Code.
714 (c) "Lease" or "rental" does not include:
715 (i) a transfer of possession or control of property under a security agreement or
716 deferred payment plan that requires the transfer of title upon completion of the required
717 payments;
718 (ii) a transfer of possession or control of property under an agreement that requires the
719 transfer of title:
720 (A) upon completion of required payments; and
721 (B) if the payment of an option price does not exceed the greater of:
722 (I) $100; or
723 (II) 1% of the total required payments; or
724 (iii) providing tangible personal property along with an operator for a fixed period of
725 time or an indeterminate period of time if the operator is necessary for equipment to perform as
726 designed.
727 (d) For purposes of Subsection (48)(c)(iii), an operator is necessary for equipment to
728 perform as designed if the operator's duties exceed the:
729 (i) set-up of tangible personal property;
730 (ii) maintenance of tangible personal property; or
731 (iii) inspection of tangible personal property.
732 (49) "Load and leave" means delivery to a purchaser by use of a tangible storage media
733 if the tangible storage media is not physically transferred to the purchaser.
734 (50) "Local taxing jurisdiction" means a:
735 (a) county that is authorized to impose an agreement sales and use tax;
736 (b) city that is authorized to impose an agreement sales and use tax; or
737 (c) town that is authorized to impose an agreement sales and use tax.
738 (51) "Manufactured home" is as defined in Section 58-56-3 .
739 (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
740 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard

741 Industrial Classification Manual of the federal Executive Office of the President, Office of
742 Management and Budget;
743 (b) a scrap recycler if:
744 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
745 one or more of the following items into prepared grades of processed materials for use in new
746 products:
747 (A) iron;
748 (B) steel;
749 (C) nonferrous metal;
750 (D) paper;
751 (E) glass;
752 (F) plastic;
753 (G) textile; or
754 (H) rubber; and
755 (ii) the new products under Subsection (52)(b)(i) would otherwise be made with
756 nonrecycled materials; or
757 (c) a cogeneration facility as defined in Section 54-2-1 .
758 (53) "Member of the immediate family of the producer" means a person who is related
759 to a producer described in Subsection 59-12-104 (20)(a) as a:
760 (a) child or stepchild, regardless of whether the child or stepchild is:
761 (i) an adopted child or adopted stepchild; or
762 (ii) a foster child or foster stepchild;
763 (b) grandchild or stepgrandchild;
764 (c) grandparent or stepgrandparent;
765 (d) nephew or stepnephew;
766 (e) niece or stepniece;
767 (f) parent or stepparent;
768 (g) sibling or stepsibling;
769 (h) spouse;
770 (i) person who is the spouse of a person described in Subsections (53)(a) through (g);
771 or

772 (j) person similar to a person described in Subsections (53)(a) through (i) as
773 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
774 Administrative Rulemaking Act.
775 (54) "Mobile home" is as defined in Section 58-56-3 .
776 (55) "Mobile telecommunications service" is as defined in the Mobile
777 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
778 (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
779 the technology used, if:
780 (i) the origination point of the conveyance, routing, or transmission is not fixed;
781 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
782 (iii) the origination point described in Subsection (56)(a)(i) and the termination point
783 described in Subsection (56)(a)(ii) are not fixed.
784 (b) "Mobile wireless service" includes a telecommunications service that is provided
785 by a commercial mobile radio service provider.
786 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
787 commission may by rule define "commercial mobile radio service provider."
788 (57) (a) Except as provided in Subsection (57)(c), "mobility enhancing equipment"
789 means equipment that is:
790 (i) primarily and customarily used to provide or increase the ability to move from one
791 place to another;
792 (ii) appropriate for use in a:
793 (A) home; or
794 (B) motor vehicle; and
795 (iii) not generally used by persons with normal mobility.
796 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
797 the equipment described in Subsection (57)(a).
798 (c) Notwithstanding Subsection (57)(a), "mobility enhancing equipment" does not
799 include:
800 (i) a motor vehicle;
801 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
802 vehicle manufacturer;

803 (iii) durable medical equipment; or
804 (iv) a prosthetic device.
805 (58) "Model 1 seller" means a seller that has selected a certified service provider as the
806 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
807 use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
808 seller's own purchases.
809 (59) "Model 2 seller" means a seller that:
810 (a) except as provided in Subsection (59)(b), has selected a certified automated system
811 to perform the seller's sales tax functions for agreement sales and use taxes; and
812 (b) notwithstanding Subsection (59)(a), retains responsibility for remitting all of the
813 sales tax:
814 (i) collected by the seller; and
815 (ii) to the appropriate local taxing jurisdiction.
816 (60) (a) Subject to Subsection (60)(b), "model 3 seller" means a seller that has:
817 (i) sales in at least five states that are members of the agreement;
818 (ii) total annual sales revenues of at least $500,000,000;
819 (iii) a proprietary system that calculates the amount of tax:
820 (A) for an agreement sales and use tax; and
821 (B) due to each local taxing jurisdiction; and
822 (iv) entered into a performance agreement with the governing board of the agreement.
823 (b) For purposes of Subsection (60)(a), "model 3 seller" includes an affiliated group of
824 sellers using the same proprietary system.
825 (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
826 (62) "Motor vehicle" is as defined in Section 41-1a-102 .
827 (63) "Oil shale" means a group of fine black to dark brown shales containing
828 bituminous material that yields petroleum upon distillation.
829 (64) (a) "Other fuels" means products that burn independently to produce heat or
830 energy.
831 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
832 personal property.
833 (65) (a) "Paging service" means a telecommunications service that provides

834 transmission of a coded radio signal for the purpose of activating a specific pager.
835 (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
836 includes a transmission by message or sound.
837 (66) "Pawnbroker" is as defined in Section 13-32a-102 .
838 (67) "Pawn transaction" is as defined in Section 13-32a-102 .
839 (68) (a) "Permanently attached to real property" means that for tangible personal
840 property attached to real property:
841 (i) the attachment of the tangible personal property to the real property:
842 (A) is essential to the use of the tangible personal property; and
843 (B) suggests that the tangible personal property will remain attached to the real
844 property in the same place over the useful life of the tangible personal property; or
845 (ii) if the tangible personal property is detached from the real property, the detachment
846 would:
847 (A) cause substantial damage to the tangible personal property; or
848 (B) require substantial alteration or repair of the real property to which the tangible
849 personal property is attached.
850 (b) "Permanently attached to real property" includes:
851 (i) the attachment of an accessory to the tangible personal property if the accessory is:
852 (A) essential to the operation of the tangible personal property; and
853 (B) attached only to facilitate the operation of the tangible personal property;
854 (ii) a temporary detachment of tangible personal property from real property for a
855 repair or renovation if the repair or renovation is performed where the tangible personal
856 property and real property are located; or
857 (iii) property attached to oil, gas, or water pipelines, other than the property listed in
858 Subsection (68)(c)(iii).
859 (c) "Permanently attached to real property" does not include:
860 (i) the attachment of portable or movable tangible personal property to real property if
861 that portable or movable tangible personal property is attached to real property only for:
862 (A) convenience;
863 (B) stability; or
864 (C) for an obvious temporary purpose;

865 (ii) the detachment of tangible personal property from real property other than the
866 detachment described in Subsection (68)(b)(ii);
867 (iii) an attachment of the following tangible personal property to real property if the
868 attachment to real property is only through a line that supplies water, electricity, gas,
869 telecommunications, cable, or supplies a similar item as determined by the commission by rule
870 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
871 (A) a refrigerator;
872 (B) a washer;
873 (C) a dryer;
874 (D) a stove;
875 (E) a television;
876 (F) a computer;
877 (G) a telephone; or
878 (H) tangible personal property similar to Subsections (68)(c)(iii)(A) through (G) as
879 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
880 Administrative Rulemaking Act; or
881 (iv) the following if attached to real property, regardless of whether the attachment to
882 real property is only through a line that supplies water, electricity, gas, telephone, cable, or
883 supplies a similar item as determined by the commission by rule made in accordance with Title
884 63G, Chapter 3, Utah Administrative Rulemaking Act:
885 (A) a hot water heater;
886 (B) a water softener system; or
887 (C) a water filtration system.
888 (69) "Person" includes any individual, firm, partnership, joint venture, association,
889 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
890 municipality, district, or other local governmental entity of the state, or any group or
891 combination acting as a unit.
892 (70) "Place of primary use":
893 (a) for telecommunications service other than mobile telecommunications service,
894 means the street address representative of where the purchaser's use of the telecommunications
895 service primarily occurs, which shall be:

896 (i) the residential street address of the purchaser; or
897 (ii) the primary business street address of the purchaser; or
898 (b) for mobile telecommunications service, is as defined in the Mobile
899 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
900 (71) (a) "Postpaid calling service" means a telecommunications service a person
901 obtains by making a payment on a call-by-call basis:
902 (i) through the use of a:
903 (A) bank card;
904 (B) credit card;
905 (C) debit card; or
906 (D) travel card; or
907 (ii) by a charge made to a telephone number that is not associated with the origination
908 or termination of the telecommunications service.
909 (b) "Postpaid calling service" includes a service that would be a prepaid wireless
910 calling service if the service were exclusively a telecommunications service.
911 (72) "Postproduction" means an activity related to the finishing or duplication of a
912 medium described in Subsection 59-12-104 (55)(a).
913 (73) "Prepaid calling service" means a telecommunications service:
914 (a) that allows a purchaser access to telecommunications service that is exclusively
915 telecommunications service;
916 (b) that:
917 (i) is paid for in advance; and
918 (ii) enables the origination of a call using an:
919 (A) access number; or
920 (B) authorization code;
921 (c) that is dialed:
922 (i) manually; or
923 (ii) electronically; and
924 (d) sold in predetermined units or dollars that decline:
925 (i) by a known amount; and
926 (ii) with use.

927 (74) "Prepaid wireless calling service" means a telecommunications service:
928 (a) that provides the right to utilize:
929 (i) mobile wireless service; and
930 (ii) other service that is not a telecommunications service, including:
931 (A) the download of a product transferred electronically;
932 (B) a content service; or
933 (C) an ancillary service;
934 (b) that:
935 (i) is paid for in advance; and
936 (ii) enables the origination of a call using an:
937 (A) access number; or
938 (B) authorization code;
939 (c) that is dialed:
940 (i) manually; or
941 (ii) electronically; and
942 (d) sold in predetermined units or dollars that decline:
943 (i) by a known amount; and
944 (ii) with use.
945 (75) (a) "Prepared food" means:
946 (i) food:
947 (A) sold in a heated state; or
948 (B) heated by a seller;
949 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
950 item; or
951 (iii) except as provided in Subsection (75)(c), food sold with an eating utensil provided
952 by the seller, including a:
953 (A) plate;
954 (B) knife;
955 (C) fork;
956 (D) spoon;
957 (E) glass;

958 (F) cup;
959 (G) napkin; or
960 (H) straw.
961 (b) "Prepared food" does not include:
962 (i) food that a seller only:
963 (A) cuts;
964 (B) repackages; or
965 (C) pasteurizes; or
966 (ii) (A) the following:
967 (I) raw egg;
968 (II) raw fish;
969 (III) raw meat;
970 (IV) raw poultry; or
971 (V) a food containing an item described in Subsections (75)(b)(ii)(A)(I) through (IV);
972 and
973 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
974 Food and Drug Administration's Food Code that a consumer cook the items described in
975 Subsection (75)(b)(ii)(A) to prevent food borne illness; or
976 (iii) the following if sold without eating utensils provided by the seller:
977 (A) food and food ingredients sold by a seller if the seller's proper primary
978 classification under the 2002 North American Industry Classification System of the federal
979 Executive Office of the President, Office of Management and Budget, is manufacturing in
980 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
981 Manufacturing;
982 (B) food and food ingredients sold in an unheated state:
983 (I) by weight or volume; and
984 (II) as a single item; or
985 (C) a bakery item, including:
986 (I) a bagel;
987 (II) a bar;
988 (III) a biscuit;

989 (IV) bread;
990 (V) a bun;
991 (VI) a cake;
992 (VII) a cookie;
993 (VIII) a croissant;
994 (IX) a danish;
995 (X) a donut;
996 (XI) a muffin;
997 (XII) a pastry;
998 (XIII) a pie;
999 (XIV) a roll;
1000 (XV) a tart;
1001 (XVI) a torte; or
1002 (XVII) a tortilla.
1003 (c) Notwithstanding Subsection (75)(a)(iii), an eating utensil provided by the seller
1004 does not include the following used to transport the food:
1005 (i) a container; or
1006 (ii) packaging.
1007 (76) "Prescription" means an order, formula, or recipe that is issued:
1008 (a) (i) orally;
1009 (ii) in writing;
1010 (iii) electronically; or
1011 (iv) by any other manner of transmission; and
1012 (b) by a licensed practitioner authorized by the laws of a state.
1013 (77) (a) Except as provided in Subsection (77)(b)(ii) or (iii), "prewritten computer
1014 software" means computer software that is not designed and developed:
1015 (i) by the author or other creator of the computer software; and
1016 (ii) to the specifications of a specific purchaser.
1017 (b) "Prewritten computer software" includes:
1018 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1019 software is not designed and developed:

1020 (A) by the author or other creator of the computer software; and
1021 (B) to the specifications of a specific purchaser;
1022 (ii) notwithstanding Subsection (77)(a), computer software designed and developed by
1023 the author or other creator of the computer software to the specifications of a specific purchaser
1024 if the computer software is sold to a person other than the purchaser; or
1025 (iii) notwithstanding Subsection (77)(a) and except as provided in Subsection (77)(c),
1026 prewritten computer software or a prewritten portion of prewritten computer software:
1027 (A) that is modified or enhanced to any degree; and
1028 (B) if the modification or enhancement described in Subsection (77)(b)(iii)(A) is
1029 designed and developed to the specifications of a specific purchaser.
1030 (c) Notwithstanding Subsection (77)(b)(iii), "prewritten computer software" does not
1031 include a modification or enhancement described in Subsection (77)(b)(iii) if the charges for
1032 the modification or enhancement are:
1033 (i) reasonable; and
1034 (ii) separately stated on the invoice or other statement of price provided to the
1035 purchaser.
1036 (78) (a) "Private communication service" means a telecommunications service:
1037 (i) that entitles a customer to exclusive or priority use of one or more communications
1038 channels between or among termination points; and
1039 (ii) regardless of the manner in which the one or more communications channels are
1040 connected.
1041 (b) "Private communications service" includes the following provided in connection
1042 with the use of one or more communications channels:
1043 (i) an extension line;
1044 (ii) a station; or
1045 (iii) switching capacity.
1046 (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
1047 (i) artificially replace a missing portion of the body;
1048 (ii) prevent or correct a physical deformity or physical malfunction; or
1049 (iii) support a weak or deformed portion of the body.
1050 (b) "Prosthetic device" includes:

1051 (i) parts used in the repairs or renovation of a prosthetic device;
1052 (ii) replacement parts for a prosthetic device;
1053 (iii) a dental prosthesis; or
1054 (iv) a hearing aid.
1055 (c) "Prosthetic device" does not include:
1056 (i) corrective eyeglasses; or
1057 (ii) contact lenses.
1058 (80) (a) "Protective equipment" means an item:
1059 (i) for human wear; and
1060 (ii) that is:
1061 (A) designed as protection:
1062 (I) to the wearer against injury or disease; or
1063 (II) against damage or injury of other persons or property; and
1064 (B) not suitable for general use.
1065 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1066 commission shall make rules:
1067 (i) listing the items that constitute "protective equipment"; and
1068 (ii) that are consistent with the list of items that constitute "protective equipment"
1069 under the agreement.
1070 (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
1071 printed matter, other than a photocopy:
1072 (i) regardless of:
1073 (A) characteristics;
1074 (B) copyright;
1075 (C) form;
1076 (D) format;
1077 (E) method of reproduction; or
1078 (F) source; and
1079 (ii) made available in printed or electronic format.
1080 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1081 commission may by rule define the term "photocopy."

1082 (82) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1083 (i) valued in money; and
1084 (ii) for which tangible personal property, a product transferred electronically, or
1085 services are:
1086 (A) sold;
1087 (B) leased; or
1088 (C) rented.
1089 (b) "Purchase price" and "sales price" include:
1090 (i) the seller's cost of the tangible personal property, a product transferred
1091 electronically, or services sold;
1092 (ii) expenses of the seller, including:
1093 (A) the cost of materials used;
1094 (B) a labor cost;
1095 (C) a service cost;
1096 (D) interest;
1097 (E) a loss;
1098 (F) the cost of transportation to the seller; or
1099 (G) a tax imposed on the seller;
1100 (iii) a charge by the seller for any service necessary to complete the sale; or
1101 (iv) consideration a seller receives from a person other than the purchaser if:
1102 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1103 and
1104 (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
1105 price reduction or discount on the sale;
1106 (B) the seller has an obligation to pass the price reduction or discount through to the
1107 purchaser;
1108 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1109 the seller at the time of the sale to the purchaser; and
1110 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1111 seller to claim a price reduction or discount; and
1112 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,

1113 coupon, or other documentation with the understanding that the person other than the seller
1114 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1115 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1116 organization allowed a price reduction or discount, except that a preferred customer card that is
1117 available to any patron of a seller does not constitute membership in a group or organization
1118 allowed a price reduction or discount; or
1119 (III) the price reduction or discount is identified as a third party price reduction or
1120 discount on the:
1121 (Aa) invoice the purchaser receives; or
1122 (Bb) certificate, coupon, or other documentation the purchaser presents.
1123 (c) "Purchase price" and "sales price" do not include:
1124 (i) a discount:
1125 (A) in a form including:
1126 (I) cash;
1127 (II) term; or
1128 (III) coupon;
1129 (B) that is allowed by a seller;
1130 (C) taken by a purchaser on a sale; and
1131 (D) that is not reimbursed by a third party; or
1132 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1133 provided to the purchaser:
1134 (A) the following from credit extended on the sale of tangible personal property or
1135 services:
1136 (I) a carrying charge;
1137 (II) a financing charge; or
1138 (III) an interest charge;
1139 (B) a delivery charge;
1140 (C) an installation charge;
1141 (D) a manufacturer rebate on a motor vehicle; or
1142 (E) a tax or fee legally imposed directly on the consumer.
1143 (83) "Purchaser" means a person to whom:

1144 (a) a sale of tangible personal property is made;
1145 (b) a product is transferred electronically; or
1146 (c) a service is furnished.
1147 (84) "Regularly rented" means:
1148 (a) rented to a guest for value three or more times during a calendar year; or
1149 (b) advertised or held out to the public as a place that is regularly rented to guests for
1150 value.
1151 (85) "Renewable energy" means:
1152 (a) biomass energy;
1153 (b) hydroelectric energy;
1154 (c) geothermal energy;
1155 (d) solar energy; or
1156 (e) wind energy.
1157 (86) (a) "Renewable energy production facility" means a facility that:
1158 (i) uses renewable energy to produce electricity; and
1159 (ii) has a production capacity of 20 kilowatts or greater.
1160 (b) A facility is a renewable energy production facility regardless of whether the
1161 facility is:
1162 (i) connected to an electric grid; or
1163 (ii) located on the premises of an electricity consumer.
1164 (87) "Rental" is as defined in Subsection (48).
1165 (88) "Repairs or renovations of tangible personal property" means:
1166 (a) a repair or renovation of tangible personal property that is not permanently attached
1167 to real property; or
1168 (b) attaching tangible personal property or a product that is transferred electronically to
1169 other tangible personal property if the other tangible personal property to which the tangible
1170 personal property or product that is transferred electronically is attached is not permanently
1171 attached to real property.
1172 (89) "Research and development" means the process of inquiry or experimentation
1173 aimed at the discovery of facts, devices, technologies, or applications and the process of
1174 preparing those devices, technologies, or applications for marketing.

1175 (90) (a) "Residential telecommunications services" means a telecommunications
1176 service or an ancillary service that is provided to an individual for personal use:
1177 (i) at a residential address; or
1178 (ii) at an institution, including a nursing home or a school, if the telecommunications
1179 service or ancillary service is provided to and paid for by the individual residing at the
1180 institution rather than the institution.
1181 (b) For purposes of Subsection (90)(a), a residential address includes an:
1182 (i) apartment; or
1183 (ii) other individual dwelling unit.
1184 (91) "Residential use" means the use in or around a home, apartment building, sleeping
1185 quarters, and similar facilities or accommodations.
1186 (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1187 than:
1188 (a) resale;
1189 (b) sublease; or
1190 (c) subrent.
1191 (93) (a) "Retailer" means any person engaged in a regularly organized business in
1192 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
1193 who is selling to the user or consumer and not for resale.
1194 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1195 engaged in the business of selling to users or consumers within the state.
1196 (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1197 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1198 Subsection 59-12-103 (1), for consideration.
1199 (b) "Sale" includes:
1200 (i) installment and credit sales;
1201 (ii) any closed transaction constituting a sale;
1202 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1203 chapter;
1204 (iv) any transaction if the possession of property is transferred but the seller retains the
1205 title as security for the payment of the price; and

1206 (v) any transaction under which right to possession, operation, or use of any article of
1207 tangible personal property is granted under a lease or contract and the transfer of possession
1208 would be taxable if an outright sale were made.
1209 (95) "Sale at retail" is as defined in Subsection (92).
1210 (96) "Sale-leaseback transaction" means a transaction by which title to tangible
1211 personal property or a product transferred electronically that is subject to a tax under this
1212 chapter is transferred:
1213 (a) by a purchaser-lessee;
1214 (b) to a lessor;
1215 (c) for consideration; and
1216 (d) if:
1217 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1218 of the tangible personal property or product transferred electronically;
1219 (ii) the sale of the tangible personal property or product transferred electronically to the
1220 lessor is intended as a form of financing:
1221 (A) for the tangible personal property or product transferred electronically; and
1222 (B) to the purchaser-lessee; and
1223 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1224 is required to:
1225 (A) capitalize the tangible personal property or product transferred electronically for
1226 financial reporting purposes; and
1227 (B) account for the lease payments as payments made under a financing arrangement.
1228 (97) "Sales price" is as defined in Subsection (82).
1229 (98) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1230 amounts charged by a school:
1231 (i) sales that are directly related to the school's educational functions or activities
1232 including:
1233 (A) the sale of:
1234 (I) textbooks;
1235 (II) textbook fees;
1236 (III) laboratory fees;

1237 (IV) laboratory supplies; or
1238 (V) safety equipment;
1239 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1240 that:
1241 (I) a student is specifically required to wear as a condition of participation in a
1242 school-related event or school-related activity; and
1243 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1244 place of ordinary clothing;
1245 (C) sales of the following if the net or gross revenues generated by the sales are
1246 deposited into a school district fund or school fund dedicated to school meals:
1247 (I) food and food ingredients; or
1248 (II) prepared food; or
1249 (D) transportation charges for official school activities; or
1250 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1251 event or school-related activity.
1252 (b) "Sales relating to schools" does not include:
1253 (i) bookstore sales of items that are not educational materials or supplies;
1254 (ii) except as provided in Subsection (98)(a)(i)(B):
1255 (A) clothing;
1256 (B) clothing accessories or equipment;
1257 (C) protective equipment; or
1258 (D) sports or recreational equipment; or
1259 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1260 event or school-related activity if the amounts paid or charged are passed through to a person:
1261 (A) other than a:
1262 (I) school;
1263 (II) nonprofit organization authorized by a school board or a governing body of a
1264 private school to organize and direct a competitive secondary school activity; or
1265 (III) nonprofit association authorized by a school board or a governing body of a
1266 private school to organize and direct a competitive secondary school activity; and
1267 (B) that is required to collect sales and use taxes under this chapter.

1268 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1269 commission may make rules defining the term "passed through."
1270 (99) For purposes of this section and Section 59-12-104 , "school":
1271 (a) means:
1272 (i) an elementary school or a secondary school that:
1273 (A) is a:
1274 (I) public school; or
1275 (II) private school; and
1276 (B) provides instruction for one or more grades kindergarten through 12; or
1277 (ii) a public school district; and
1278 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1279 (100) "Seller" means a person that makes a sale, lease, or rental of:
1280 (a) tangible personal property;
1281 (b) a product transferred electronically; or
1282 (c) a service.
1283 (101) (a) "Semiconductor fabricating, processing, research, or development materials"
1284 means tangible personal property or a product transferred electronically if the tangible personal
1285 property or product transferred electronically is:
1286 (i) used primarily in the process of:
1287 (A) (I) manufacturing a semiconductor;
1288 (II) fabricating a semiconductor; or
1289 (III) research or development of a:
1290 (Aa) semiconductor; or
1291 (Bb) semiconductor manufacturing process; or
1292 (B) maintaining an environment suitable for a semiconductor; or
1293 (ii) consumed primarily in the process of:
1294 (A) (I) manufacturing a semiconductor;
1295 (II) fabricating a semiconductor; or
1296 (III) research or development of a:
1297 (Aa) semiconductor; or
1298 (Bb) semiconductor manufacturing process; or

1299 (B) maintaining an environment suitable for a semiconductor.
1300 (b) "Semiconductor fabricating, processing, research, or development materials"
1301 includes:
1302 (i) parts used in the repairs or renovations of tangible personal property or a product
1303 transferred electronically described in Subsection (101)(a); or
1304 (ii) a chemical, catalyst, or other material used to:
1305 (A) produce or induce in a semiconductor a:
1306 (I) chemical change; or
1307 (II) physical change;
1308 (B) remove impurities from a semiconductor; or
1309 (C) improve the marketable condition of a semiconductor.
1310 (102) "Senior citizen center" means a facility having the primary purpose of providing
1311 services to the aged as defined in Section 62A-3-101 .
1312 (103) "Simplified electronic return" means the electronic return:
1313 (a) described in Section 318(C) of the agreement; and
1314 (b) approved by the governing board of the agreement.
1315 (104) "Solar energy" means the sun used as the sole source of energy for producing
1316 electricity.
1317 (105) (a) "Sports or recreational equipment" means an item:
1318 (i) designed for human use; and
1319 (ii) that is:
1320 (A) worn in conjunction with:
1321 (I) an athletic activity; or
1322 (II) a recreational activity; and
1323 (B) not suitable for general use.
1324 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1325 commission shall make rules:
1326 (i) listing the items that constitute "sports or recreational equipment"; and
1327 (ii) that are consistent with the list of items that constitute "sports or recreational
1328 equipment" under the agreement.
1329 (106) "State" means the state of Utah, its departments, and agencies.

1330 (107) "Storage" means any keeping or retention of tangible personal property or any
1331 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
1332 sale in the regular course of business.
1333 (108) (a) Except as provided in Subsection (108)(c), " tangible personal property"
1334 means personal property that:
1335 (i) may be:
1336 (A) seen;
1337 (B) weighed;
1338 (C) measured;
1339 (D) felt; or
1340 (E) touched; or
1341 (ii) is in any manner perceptible to the senses.
1342 (b) "Tangible personal property" includes:
1343 (i) electricity;
1344 (ii) water;
1345 (iii) gas;
1346 (iv) steam; or
1347 (v) prewritten computer software.
1348 (c) "Tangible personal property" does not include a product that is transferred
1349 electronically.
1350 (d) "Tangible personal property" does not include the following if attached to real
1351 property, regardless of whether the attachment to real property is only through a line that
1352 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1353 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1354 Rulemaking Act:
1355 (i) a hot water heater;
1356 (ii) a water softener system; or
1357 (iii) a water filtration system.
1358 (109) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1359 and require further processing other than mechanical blending before becoming finished
1360 petroleum products.

1361 (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1362 software" means an item listed in Subsection (110)(b) if that item is purchased or leased
1363 primarily to enable or facilitate one or more of the following to function:
1364 (i) telecommunications switching or routing equipment, machinery, or software; or
1365 (ii) telecommunications transmission equipment, machinery, or software.
1366 (b) The following apply to Subsection (110)(a):
1367 (i) a pole;
1368 (ii) software;
1369 (iii) a supplementary power supply;
1370 (iv) temperature or environmental equipment or machinery;
1371 (v) test equipment;
1372 (vi) a tower; or
1373 (vii) equipment, machinery, or software that functions similarly to an item listed in
1374 Subsections (110)(b)(i) through (vi) as determined by the commission by rule made in
1375 accordance with Subsection (110)(c).
1376 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1377 commission may by rule define what constitutes equipment, machinery, or software that
1378 functions similarly to an item listed in Subsections (110)(b)(i) through (vi).
1379 (111) "Telecommunications equipment, machinery, or software required for 911
1380 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1381 Sec. 20.18.
1382 (112) "Telecommunications maintenance or repair equipment, machinery, or software"
1383 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1384 one or more of the following, regardless of whether the equipment, machinery, or software is
1385 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1386 following:
1387 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1388 (b) telecommunications switching or routing equipment, machinery, or software; or
1389 (c) telecommunications transmission equipment, machinery, or software.
1390 (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
1391 transmission of audio, data, video, voice, or any other information or signal to a point, or

1392 among or between points.
1393 (b) "Telecommunications service" includes:
1394 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1395 processing application is used to act:
1396 (A) on the code, form, or protocol of the content;
1397 (B) for the purpose of electronic conveyance, routing, or transmission; and
1398 (C) regardless of whether the service:
1399 (I) is referred to as voice over Internet protocol service; or
1400 (II) is classified by the Federal Communications Commission as enhanced or value
1401 added;
1402 (ii) an 800 service;
1403 (iii) a 900 service;
1404 (iv) a fixed wireless service;
1405 (v) a mobile wireless service;
1406 (vi) a postpaid calling service;
1407 (vii) a prepaid calling service;
1408 (viii) a prepaid wireless calling service; or
1409 (ix) a private communications service.
1410 (c) "Telecommunications service" does not include:
1411 (i) advertising, including directory advertising;
1412 (ii) an ancillary service;
1413 (iii) a billing and collection service provided to a third party;
1414 (iv) a data processing and information service if:
1415 (A) the data processing and information service allows data to be:
1416 (I) (Aa) acquired;
1417 (Bb) generated;
1418 (Cc) processed;
1419 (Dd) retrieved; or
1420 (Ee) stored; and
1421 (II) delivered by an electronic transmission to a purchaser; and
1422 (B) the purchaser's primary purpose for the underlying transaction is the processed data

1423 or information;
1424 (v) installation or maintenance of the following on a customer's premises:
1425 (A) equipment; or
1426 (B) wiring;
1427 (vi) Internet access service;
1428 (vii) a paging service;
1429 (viii) a product transferred electronically, including:
1430 (A) music;
1431 (B) reading material;
1432 (C) a ring tone;
1433 (D) software; or
1434 (E) video;
1435 (ix) a radio and television audio and video programming service:
1436 (A) regardless of the medium; and
1437 (B) including:
1438 (I) furnishing conveyance, routing, or transmission of a television audio and video
1439 programming service by a programming service provider;
1440 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1441 (III) audio and video programming services delivered by a commercial mobile radio
1442 service provider as defined in 47 C.F.R. Sec. 20.3;
1443 (x) a value-added nonvoice data service; or
1444 (xi) tangible personal property.
1445 (114) (a) " Telecommunications service provider" means a person that:
1446 (i) owns, controls, operates, or manages a telecommunications service; and
1447 (ii) engages in an activity described in Subsection (114)(a)(i) for the shared use with or
1448 resale to any person of the telecommunications service.
1449 (b) A person described in Subsection (114)(a) is a telecommunications service provider
1450 whether or not the Public Service Commission of Utah regulates:
1451 (i) that person; or
1452 (ii) the telecommunications service that the person owns, controls, operates, or
1453 manages.

1454 (115) (a) "Telecommunications switching or routing equipment, machinery, or
1455 software" means an item listed in Subsection (115)(b) if that item is purchased or leased
1456 primarily for switching or routing:
1457 (i) an ancillary service;
1458 (ii) data communications;
1459 (iii) voice communications; or
1460 (iv) telecommunications service.
1461 (b) The following apply to Subsection (115)(a):
1462 (i) a bridge;
1463 (ii) a computer;
1464 (iii) a cross connect;
1465 (iv) a modem;
1466 (v) a multiplexer;
1467 (vi) plug in circuitry;
1468 (vii) a router;
1469 (viii) software;
1470 (ix) a switch; or
1471 (x) equipment, machinery, or software that functions similarly to an item listed in
1472 Subsections (115)(b)(i) through (ix) as determined by the commission by rule made in
1473 accordance with Subsection (115)(c).
1474 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1475 commission may by rule define what constitutes equipment, machinery, or software that
1476 functions similarly to an item listed in Subsections (115)(b)(i) through (ix).
1477 (116) (a) "Telecommunications transmission equipment, machinery, or software"
1478 means an item listed in Subsection (116)(b) if that item is purchased or leased primarily for
1479 sending, receiving, or transporting:
1480 (i) an ancillary service;
1481 (ii) data communications;
1482 (iii) voice communications; or
1483 (iv) telecommunications service.
1484 (b) The following apply to Subsection (116)(a):

1485 (i) an amplifier;
1486 (ii) a cable;
1487 (iii) a closure;
1488 (iv) a conduit;
1489 (v) a controller;
1490 (vi) a duplexer;
1491 (vii) a filter;
1492 (viii) an input device;
1493 (ix) an input/output device;
1494 (x) an insulator;
1495 (xi) microwave machinery or equipment;
1496 (xii) an oscillator;
1497 (xiii) an output device;
1498 (xiv) a pedestal;
1499 (xv) a power converter;
1500 (xvi) a power supply;
1501 (xvii) a radio channel;
1502 (xviii) a radio receiver;
1503 (xix) a radio transmitter;
1504 (xx) a repeater;
1505 (xxi) software;
1506 (xxii) a terminal;
1507 (xxiii) a timing unit;
1508 (xxiv) a transformer;
1509 (xxv) a wire; or
1510 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1511 Subsections (116)(b)(i) through (xxv) as determined by the commission by rule made in
1512 accordance with Subsection (116)(c).
1513 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1514 commission may by rule define what constitutes equipment, machinery, or software that
1515 functions similarly to an item listed in Subsections (116)(b)(i) through (xxv).

1516 (117) "Tobacco" means:
1517 (a) a cigarette;
1518 (b) a cigar;
1519 (c) chewing tobacco;
1520 (d) pipe tobacco; or
1521 (e) any other item that contains tobacco.
1522 (118) "Unassisted amusement device" means an amusement device, skill device, or
1523 ride device that is started and stopped by the purchaser or renter of the right to use or operate
1524 the amusement device, skill device, or ride device.
1525 (119) (a) "Use" means the exercise of any right or power over tangible personal
1526 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
1527 incident to the ownership or the leasing of that tangible personal property, product transferred
1528 electronically, or service.
1529 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1530 property, a product transferred electronically, or a service in the regular course of business and
1531 held for resale.
1532 (120) "Value-added nonvoice data service" means a service:
1533 (a) that otherwise meets the definition of a telecommunications service except that a
1534 computer processing application is used to act primarily for a purpose other than conveyance,
1535 routing, or transmission; and
1536 (b) with respect to which a computer processing application is used to act on data or
1537 information:
1538 (i) code;
1539 (ii) content;
1540 (iii) form; or
1541 (iv) protocol.
1542 (121) (a) Subject to Subsection (121)(b), "vehicle" means the following that are
1543 required to be titled, registered, or titled and registered:
1544 (i) an aircraft as defined in Section 72-10-102 ;
1545 (ii) a vehicle as defined in Section 41-1a-102 ;
1546 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or

1547 (iv) a vessel as defined in Section 41-1a-102 .
1548 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1549 (i) a vehicle described in Subsection (121)(a); or
1550 (ii) (A) a locomotive;
1551 (B) a freight car;
1552 (C) railroad work equipment; or
1553 (D) other railroad rolling stock.
1554 (122) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1555 exchanging a vehicle as defined in Subsection (121).
1556 (123) (a) "Vertical service" means an ancillary service that:
1557 (i) is offered in connection with one or more telecommunications services; and
1558 (ii) offers an advanced calling feature that allows a customer to:
1559 (A) identify a caller; and
1560 (B) manage multiple calls and call connections.
1561 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1562 conference bridging service.
1563 (124) (a) "Voice mail service" means an ancillary service that enables a customer to
1564 receive, send, or store a recorded message.
1565 (b) "Voice mail service" does not include a vertical service that a customer is required
1566 to have in order to utilize a voice mail service.
1567 (125) (a) Except as provided in Subsection (125)(b), "waste energy facility" means a
1568 facility that generates electricity:
1569 (i) using as the primary source of energy waste materials that would be placed in a
1570 landfill or refuse pit if it were not used to generate electricity, including:
1571 (A) tires;
1572 (B) waste coal; or
1573 (C) oil shale; and
1574 (ii) in amounts greater than actually required for the operation of the facility.
1575 (b) "Waste energy facility" does not include a facility that incinerates:
1576 (i) municipal solid waste;
1577 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or

1578 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1579 (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
1580 (127) "Wind energy" means wind used as the sole source of energy to produce
1581 electricity.
1582 (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1583 location by the United States Postal Service.
1584 Section 6. Section 59-12-103 is amended to read:
1585 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1586 tax revenues.
1587 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
1588 charged for the following transactions:
1589 (a) retail sales of tangible personal property made within the state;
1590 (b) amounts paid for:
1591 (i) telecommunications service, other than mobile telecommunications service, that
1592 originates and terminates within the boundaries of this state;
1593 (ii) mobile telecommunications service that originates and terminates within the
1594 boundaries of one state only to the extent permitted by the Mobile Telecommunications
1595 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1596 (iii) an ancillary service associated with a:
1597 (A) telecommunications service described in Subsection (1)(b)(i); or
1598 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1599 (c) sales of the following for commercial use:
1600 (i) gas;
1601 (ii) electricity;
1602 (iii) heat;
1603 (iv) coal;
1604 (v) fuel oil; or
1605 (vi) other fuels;
1606 (d) sales of the following for residential use:
1607 (i) gas;
1608 (ii) electricity;

1609 (iii) heat;
1610 (iv) coal;
1611 (v) fuel oil; or
1612 (vi) other fuels;
1613 (e) sales of prepared food;
1614 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
1615 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1616 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1617 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1618 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1619 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1620 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1621 horseback rides, sports activities, or any other amusement, entertainment, recreation,
1622 exhibition, cultural, or athletic activity;
1623 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1624 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1625 (i) the tangible personal property; and
1626 (ii) parts used in the repairs or renovations of the tangible personal property described
1627 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
1628 of that tangible personal property;
1629 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
1630 assisted cleaning or washing of tangible personal property;
1631 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1632 accommodations and services that are regularly rented for less than 30 consecutive days;
1633 (j) amounts paid or charged for laundry or dry cleaning services;
1634 (k) amounts paid or charged for leases or rentals of tangible personal property if within
1635 this state the tangible personal property is:
1636 (i) stored;
1637 (ii) used; or
1638 (iii) otherwise consumed;
1639 (l) amounts paid or charged for tangible personal property if within this state the

1640 tangible personal property is:
1641 (i) stored;
1642 (ii) used; or
1643 (iii) consumed;
1644 (m) amounts paid or charged for prepaid telephone calling cards; and
1645 (n) amounts paid or charged for a sale:
1646 (i) (A) of a product that:
1647 (I) is transferred electronically; and
1648 (II) would be subject to a tax under this chapter if the product was transferred in a
1649 manner other than electronically; or
1650 (B) of a repair or renovation of a product that:
1651 (I) is transferred electronically; and
1652 (II) would be subject to a tax under this chapter if the product was transferred in a
1653 manner other than electronically; and
1654 (ii) regardless of whether the sale provides:
1655 (A) a right of permanent use of the product; or
1656 (B) a right to use the product that is less than a permanent use, including a right:
1657 (I) for a definite or specified length of time; and
1658 (II) that terminates upon the occurrence of a condition.
1659 (2) (a) Except as provided in [Subsections] Subsection (2)(b) [through (e)] and subject
1660 to Subsection (2)(c), a state tax and a local tax is imposed on a transaction described in
1661 Subsection (1) equal to the sum of:
1662 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1663 (A) 4.70%; and
1664 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
1665 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1666 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
1667 State Sales and Use Tax Act; and
1668 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1669 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1670 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state

1671 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1672 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1673 transaction under this chapter other than this part.
1674 (b) Except as provided in Subsection (2)(d) [or (e)], a state tax and a local tax is
1675 imposed on a transaction described in Subsection (1)(d) equal to the sum of:
1676 (i) a state tax imposed on the transaction at a tax rate of 2%; and
1677 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1678 transaction under this chapter other than this part.
1679 [(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is
1680 imposed on amounts paid or charged for food and food ingredients equal to the sum of:]
1681 [(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
1682 a tax rate of 1.75%; and]
1683 [(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1684 amounts paid or charged for food and food ingredients under this chapter other than this part.]
1685 [(d) (i) For a bundled transaction that is attributable to food and food ingredients and
1686 tangible personal property other than food and food ingredients, a state tax and a local tax is
1687 imposed on the entire bundled transaction equal to the sum of:]
1688 [(A) a state tax imposed on the entire bundled transaction equal to the sum of:]
1689 [(I) the tax rate described in Subsection (2)(a)(i)(A); and]
1690 [(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
1691 Sales and Use Tax Act, if the location of the transaction as determined under Sections
1692 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
1693 Additional State Sales and Use Tax Act; and]
1694 [(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
1695 Sales and Use Tax Act, if the location of the transaction as determined under Sections
1696 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
1697 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and]
1698 [(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1699 described in Subsection (2)(a)(ii).]
1700 [(ii)] (c) (i) Subject to Subsection [(2)(d)(iii)] (2)(c)(ii), for a bundled transaction [other
1701 than a bundled transaction described in Subsection (2)(d)(i)]:

1702 (A) if the sales price of the bundled transaction is attributable to tangible personal
1703 property, a product, or a service that is subject to taxation under this chapter and tangible
1704 personal property, a product, or service that is not subject to taxation under this chapter, the
1705 entire bundled transaction is subject to taxation under this chapter unless:
1706 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1707 personal property, product, or service that is not subject to taxation under this chapter from the
1708 books and records the seller keeps in the seller's regular course of business; or
1709 (II) state or federal law provides otherwise; or
1710 (B) if the sales price of a bundled transaction is attributable to two or more items of
1711 tangible personal property, products, or services that are subject to taxation under this chapter
1712 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
1713 higher tax rate unless:
1714 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1715 personal property, product, or service that is subject to taxation under this chapter at the lower
1716 tax rate from the books and records the seller keeps in the seller's regular course of business; or
1717 (II) state or federal law provides otherwise.
1718 [(iii)] (ii) For purposes of Subsection [(2)(d)(ii)] (2)(c)(i), books and records that a
1719 seller keeps in the seller's regular course of business includes books and records the seller
1720 keeps in the regular course of business for nontax purposes.
1721 [(e)] (d) Subject to Subsections (2)[(f)](e) and [(g)] (f), a tax rate repeal or tax rate
1722 change for a tax rate imposed under the following shall take effect on the first day of a calendar
1723 quarter:
1724 (i) Subsection (2)(a)(i)(A); or
1725 (ii) Subsection (2)(b)(i)[;].
1726 [(iii) Subsection (2)(c)(i); or]
1727 [(iv) Subsection (2)(d)(i)(A)(I).]
1728 [(f)] (e) (i) A tax rate increase shall take effect on the first day of the first billing period
1729 that begins after the effective date of the tax rate increase if the billing period for the
1730 transaction begins before the effective date of a tax rate increase imposed under:
1731 (A) Subsection (2)(a)(i)(A); or
1732 (B) Subsection (2)(b)(i)[;].

1733 [(C) Subsection (2)(c)(i); or]
1734 [(D) Subsection (2)(d)(i)(A)(I).]
1735 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1736 billing period that began before the effective date of the repeal of the tax or the tax rate
1737 decrease if the billing period for the transaction begins before the effective date of the repeal of
1738 the tax or the tax rate decrease imposed under:
1739 (A) Subsection (2)(a)(i)(A); or
1740 (B) Subsection (2)(b)(i)[;].
1741 [(C) Subsection (2)(c)(i); or]
1742 [(D) Subsection (2)(d)(i)(A)(I).]
1743 [(g)] (f) (i) For a tax rate described in Subsection [(2)(g)(ii)] (2)(f)(ii), if a tax due on a
1744 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
1745 tax rate repeal or change in a tax rate takes effect:
1746 (A) on the first day of a calendar quarter; and
1747 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1748 (ii) Subsection [(2)(g)(i)] (2)(f)(i) applies to the tax rates described in the following:
1749 (A) Subsection (2)(a)(i)(A); or
1750 (B) Subsection (2)(b)(i)[;].
1751 [(C) Subsection (2)(c)(i); or]
1752 [(D) Subsection (2)(d)(i)(A)(I).]
1753 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1754 the commission may by rule define the term "catalogue sale."
1755 (3) (a) The following state taxes shall be deposited into the General Fund:
1756 (i) the tax imposed by Subsection (2)(a)(i)(A); or
1757 (ii) the tax imposed by Subsection (2)(b)(i)[;].
1758 [(iii) the tax imposed by Subsection (2)(c)(i); or]
1759 [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
1760 (b) The following local taxes shall be distributed to a county, city, or town as provided
1761 in this chapter:
1762 (i) the tax imposed by Subsection (2)(a)(ii); or
1763 (ii) the tax imposed by Subsection (2)(b)(ii)[;].

1764 [(iii) the tax imposed by Subsection (2)(c)(ii); and]
1765 [(iv) the tax imposed by Subsection (2)(d)(i)(B).]
1766 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1767 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
1768 through (g):
1769 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1770 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1771 (B) for the fiscal year; or
1772 (ii) $17,500,000.
1773 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1774 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
1775 Department of Natural Resources to:
1776 (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
1777 protect sensitive plant and animal species; or
1778 (B) award grants, up to the amount authorized by the Legislature in an appropriations
1779 act, to political subdivisions of the state to implement the measures described in Subsections
1780 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
1781 (ii) Money transferred to the Department of Natural Resources under Subsection
1782 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1783 person to list or attempt to have listed a species as threatened or endangered under the
1784 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1785 (iii) At the end of each fiscal year:
1786 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1787 Conservation and Development Fund created in Section 73-10-24 ;
1788 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1789 Program Subaccount created in Section 73-10c-5 ; and
1790 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1791 Program Subaccount created in Section 73-10c-5 .
1792 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1793 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
1794 created in Section 4-18-6 .

1795 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1796 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
1797 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
1798 water rights.
1799 (ii) At the end of each fiscal year:
1800 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1801 Conservation and Development Fund created in Section 73-10-24 ;
1802 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1803 Program Subaccount created in Section 73-10c-5 ; and
1804 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1805 Program Subaccount created in Section 73-10c-5 .
1806 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1807 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
1808 Fund created in Section 73-10-24 for use by the Division of Water Resources.
1809 (ii) In addition to the uses allowed of the Water Resources Conservation and
1810 Development Fund under Section 73-10-24 , the Water Resources Conservation and
1811 Development Fund may also be used to:
1812 (A) conduct hydrologic and geotechnical investigations by the Division of Water
1813 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1814 quantifying surface and ground water resources and describing the hydrologic systems of an
1815 area in sufficient detail so as to enable local and state resource managers to plan for and
1816 accommodate growth in water use without jeopardizing the resource;
1817 (B) fund state required dam safety improvements; and
1818 (C) protect the state's interest in interstate water compact allocations, including the
1819 hiring of technical and legal staff.
1820 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1821 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
1822 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1823 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1824 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
1825 created in Section 73-10c-5 for use by the Division of Drinking Water to:

1826 (i) provide for the installation and repair of collection, treatment, storage, and
1827 distribution facilities for any public water system, as defined in Section 19-4-102 ;
1828 (ii) develop underground sources of water, including springs and wells; and
1829 (iii) develop surface water sources.
1830 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1831 2006, the difference between the following amounts shall be expended as provided in this
1832 Subsection (5), if that difference is greater than $1:
1833 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
1834 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
1835 (ii) $17,500,000.
1836 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1837 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
1838 credits; and
1839 (B) expended by the Department of Natural Resources for watershed rehabilitation or
1840 restoration.
1841 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1842 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
1843 created in Section 73-10-24 .
1844 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1845 remaining difference described in Subsection (5)(a) shall be:
1846 (A) transferred each fiscal year to the Division of Water Resources as dedicated
1847 credits; and
1848 (B) expended by the Division of Water Resources for cloud-seeding projects
1849 authorized by Title 73, Chapter 15, Modification of Weather.
1850 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1851 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
1852 created in Section 73-10-24 .
1853 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
1854 remaining difference described in Subsection (5)(a) shall be deposited into the Water
1855 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
1856 Division of Water Resources for:

1857 (i) preconstruction costs:
1858 (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
1859 26, Bear River Development Act; and
1860 (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
1861 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1862 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1863 Chapter 26, Bear River Development Act;
1864 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1865 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1866 (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
1867 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1868 (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
1869 Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
1870 (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
1871 Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
1872 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
1873 incurred for employing additional technical staff for the administration of water rights.
1874 (g) At the end of each fiscal year, any unexpended dedicated credits described in
1875 Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
1876 Fund created in Section 73-10-24 .
1877 (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1878 2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
1879 tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
1880 the Transportation Fund created by Section 72-2-102 .
1881 (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
1882 beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
1883 Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
1884 under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
1885 transactions under Subsection (1).
1886 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
1887 have been paid off and the highway projects completed that are intended to be paid from

1888 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
1889 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
1890 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
1891 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
1892 by a 1/64% tax rate on the taxable transactions under Subsection (1).
1893 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
1894 Subsection (7)(a), and until Subsection (8)(b) applies, for a fiscal year beginning on or after
1895 July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
1896 Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
1897 (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
1898 portion of the approximately 17% of sales and use tax revenues generated annually by the sales
1899 and use tax on vehicles and vehicle-related products:
1900 (i) the tax imposed by Subsection (2)(a)(i)(A); or
1901 (ii) the tax imposed by Subsection (2)(b)(i)[;].
1902 [(iii) the tax imposed by Subsection (2)(c)(i); and]
1903 [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
1904 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
1905 Subsection (7)(b), when the highway general obligation bonds have been paid off and the
1906 highway projects completed that are intended to be paid from revenues deposited in the
1907 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
1908 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
1909 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
1910 listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
1911 which represents a portion of the approximately 17% of sales and use tax revenues generated
1912 annually by the sales and use tax on vehicles and vehicle-related products:
1913 (i) the tax imposed by Subsection (2)(a)(i)(A); or
1914 (ii) the tax imposed by Subsection (2)(b)(i)[;].
1915 [(iii) the tax imposed by Subsection (2)(c)(i); and]
1916 [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
1917 (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
1918 Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed

1919 under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
1920 (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
1921 year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
1922 $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
1923 Critical Highway Needs Fund created by Section 72-2-125 .
1924 (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
1925 Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
1926 have been paid off and the highway projects completed that are included in the prioritized
1927 project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
1928 72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
1929 generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
1930 of 2005 created by Section 72-2-124 .
1931 (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1932 2008-09, $915,000 shall be deposited into the Qualified Emergency Food Agencies Fund
1933 created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
1934 (11) (a) [(i)] Notwithstanding Subsection (3)(a), [except as provided in Subsection
1935 (11)(a)(ii),] and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
1936 Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
1937 amount of tax revenue generated by a .025% tax rate on the transactions described in
1938 Subsection (1).
1939 [(ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit
1940 into the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged
1941 for food and food ingredients, except for tax revenue generated by a bundled transaction
1942 attributable to food and food ingredients and tangible personal property other than food and
1943 food ingredients described in Subsection (2)(e).]
1944 (b) [(i)] Notwithstanding Subsection (3)(a), [except as provided in Subsection
1945 (11)(b)(ii),] and in addition to any amounts deposited under Subsections (7), (9), and (10),
1946 when the general obligation bonds authorized by Section 63B-16-101 have been paid off and
1947 the highway projects completed that are included in the prioritized project list under Subsection
1948 72-2-125 (4) as determined in accordance with Subsection 72-2-125 (6), the Division of Finance
1949 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the

1950 amount of tax revenue generated by a .025% tax rate on the transactions described in
1951 Subsection (1).
1952 [(ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit
1953 into the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
1954 charged for food and food ingredients, except for tax revenue generated by a bundled
1955 transaction attributable to food and food ingredients and tangible personal property other than
1956 food and food ingredients described in Subsection (2)(e).]
1957 (12) [(a)] Notwithstanding Subsection (3)(a), [and except as provided in Subsection
1958 (12)(b),] beginning on January 1, 2009, the Division of Finance shall deposit into the
1959 Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
1960 .025% tax rate on the transactions described in Subsection (1) to be expended to address
1961 chokepoints in construction management.
1962 [(b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
1963 the Transportation Fund any tax revenue generated by amounts paid or charged for food and
1964 food ingredients, except for tax revenue generated by a bundled transaction attributable to food
1965 and food ingredients and tangible personal property other than food and food ingredients
1966 described in Subsection (2)(e).]
1967 Section 7. Section 59-12-108 is amended to read:
1968 59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
1969 Certain amounts allocated to local taxing jurisdictions.
1970 (1) (a) Notwithstanding Section 59-12-107 , a seller that has a tax liability under this
1971 chapter of $50,000 or more for the previous calendar year shall:
1972 (i) file a return with the commission:
1973 (A) monthly on or before the last day of the month immediately following the month
1974 for which the seller collects a tax under this chapter; and
1975 (B) for the month for which the seller collects a tax under this chapter; and
1976 (ii) except as provided in Subsection (1)(b), remit with the return required by
1977 Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
1978 fee, or charge described in Subsection (1)(c):
1979 (A) if that seller's tax liability under this chapter for the previous calendar year is less
1980 than $96,000, by any method permitted by the commission; or

1981 (B) if that seller's tax liability under this chapter for the previous calendar year is
1982 $96,000 or more, by electronic funds transfer.
1983 (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
1984 the amount the seller is required to remit to the commission for each tax, fee, or charge
1985 described in Subsection (1)(c) if that seller:
1986 (i) is required by Section 59-12-107 to file the return electronically; or
1987 (ii) (A) is required to collect and remit a tax under Subsection 59-12-107 (1)(a); and
1988 (B) files a simplified electronic return.
1989 (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
1990 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1991 (ii) a fee under Section 19-6-716 ;
1992 (iii) a fee under Section 19-6-805 ;
1993 (iv) a charge under Section 69-2-5 ;
1994 (v) a charge under Section 69-2-5.5 ;
1995 (vi) a charge under Section 69-2-5.6 ; or
1996 (vii) a tax under this chapter.
1997 (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
1998 Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
1999 for making same-day payments other than by electronic funds transfer if making payments by
2000 electronic funds transfer fails.
2001 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2002 commission shall establish by rule procedures and requirements for determining the amount a
2003 seller is required to remit to the commission under this Subsection (1).
2004 (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
2005 seller described in Subsection (4) may retain each month the amount allowed by this
2006 Subsection (2).
2007 (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2008 each month 1.31% of any amounts the seller is required to remit to the commission:
2009 (i) for a transaction described in Subsection 59-12-103 (1) that is subject to a state tax
2010 and a local tax imposed in accordance with the following, for the month for which the seller is
2011 filing a return in accordance with Subsection (1):

2012 (A) Subsection 59-12-103 (2)(a); and
2013 (B) Subsection 59-12-103 (2)(b); and
2014 [(C) Subsection 59-12-103 (2) (d); and]
2015 (ii) for an agreement sales and use tax.
2016 [(c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
2017 retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
2018 in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed in
2019 accordance with Subsection 59-12-103 (2)(c).]
2020 [(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
2021 equal to the sum of:]
2022 [(A) 1.31% of any amounts the seller is required to remit to the commission for:]
2023 [(I) the state tax and the local tax imposed in accordance with Subsection
2024 59-12-103 (2)(c);]
2025 [(II) the month for which the seller is filing a return in accordance with Subsection (1);
2026 and]
2027 [(III) an agreement sales and use tax; and]
2028 [(B) 1.31% of the difference between:]
2029 [(I) the amounts the seller would have been required to remit to the commission:]
2030 [(Aa) in accordance with Subsection 59-12-103 (2)(a) if the transaction had been
2031 subject to the state tax and the local tax imposed in accordance with Subsection
2032 59-12-103 (2)(a);]
2033 [(Bb) for the month for which the seller is filing a return in accordance with Subsection
2034 (1); and]
2035 [(Cc) for an agreement sales and use tax; and]
2036 [(II) the amounts the seller is required to remit to the commission for:]
2037 [(Aa) the state tax and the local tax imposed in accordance with Subsection
2038 59-12-103 (2)(c);]
2039 [(Bb) the month for which the seller is filing a return in accordance with Subsection (1);
2040 and]
2041 [(Cc) an agreement sales and use tax.]
2042 [(d)] (c) A seller subject to Subsection (1) or a seller described in Subsection (4) may

2043 retain each month 1% of any amounts the seller is required to remit to the commission:
2044 (i) for the month for which the seller is filing a return in accordance with Subsection
2045 (1); and
2046 (ii) under:
2047 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2048 (B) Subsection 59-12-603 (1)(a)(i)(A); or
2049 (C) Subsection 59-12-603 (1)(a)(i)(B).
2050 (3) A state government entity that is required to remit taxes monthly in accordance
2051 with Subsection (1) may not retain any amount under Subsection (2).
2052 (4) A seller that has a tax liability under this chapter for the previous calendar year of
2053 less than $50,000 may:
2054 (a) voluntarily meet the requirements of Subsection (1); and
2055 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
2056 amounts allowed by Subsection (2).
2057 (5) Penalties for late payment shall be as provided in Section 59-1-401 .
2058 (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
2059 to the commission under this part, the commission shall each month calculate an amount equal
2060 to the difference between:
2061 (i) the total amount retained for that month by all sellers had the [percentages]
2062 percentage listed under [Subsections] Subsection (2)(b) [and (2)(c)(ii)] been 1.5%; and
2063 (ii) the total amount retained for that month by all sellers at the [percentages]
2064 percentage listed under [Subsections] Subsection (2)(b) [and (2)(c)(ii)].
2065 (b) The commission shall each month allocate the amount calculated under Subsection
2066 (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
2067 tax that the commission distributes to each county, city, and town for that month compared to
2068 the total agreement sales and use tax that the commission distributes for that month to all
2069 counties, cities, and towns.
2070 (c) The amount the commission calculates under Subsection (6)(a) may not include an
2071 amount collected from a tax that:
2072 (i) the state imposes within a county, city, or town, including the unincorporated area
2073 of a county; and

2074 (ii) is not imposed within the entire state.
2075 Section 8. Section 59-12-401 is amended to read:
2076 59-12-401. Resort communities tax -- Base -- Rate -- Collection fees.
2077 (1) (a) In addition to other sales and use taxes, a city or town in which the transient
2078 room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
2079 municipality's permanent census population may impose a sales and use tax of up to 1.1% on
2080 the transactions described in Subsection 59-12-103 (1) located within the city or town.
2081 (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
2082 section on:
2083 (i) the sale of:
2084 (A) a motor vehicle;
2085 (B) an aircraft;
2086 (C) a watercraft;
2087 (D) a modular home;
2088 (E) a manufactured home; or
2089 (F) a mobile home; or
2090 (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2091 are exempt from taxation under Section 59-12-104 [; and].
2092 [(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
2093 food ingredients.]
2094 (c) For purposes of this Subsection (1), the location of a transaction shall be
2095 determined in accordance with Sections 59-12-211 through 59-12-215 .
2096 [(d) A city or town imposing a tax under this section shall impose the tax on amounts
2097 paid or charged for food and food ingredients if the food and food ingredients are sold as part
2098 of a bundled transaction attributable to food and food ingredients and tangible personal
2099 property other than food and food ingredients.]
2100 (2) (a) An amount equal to the total of any costs incurred by the state in connection
2101 with the implementation of Subsection (1) which exceed, in any year, the revenues received by
2102 the state from its collection fees received in connection with the implementation of Subsection
2103 (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
2104 provided for in Subsection (1).

2105 (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
2106 those cities and towns according to the amount of revenue the respective cities and towns
2107 generate in that year through imposition of that tax.
2108 Section 9. Section 59-12-402 is amended to read:
2109 59-12-402. Additional resort communities sales and use tax -- Base -- Rate --
2110 Collection fees -- Resolution and voter approval requirements -- Election requirements --
2111 Notice requirements -- Ordinance requirements.
2112 (1) (a) Subject to Subsections (2) through (6), the governing body of a municipality in
2113 which the transient room capacity as defined in Section 59-12-405 is greater than or equal to
2114 66% of the municipality's permanent census population may, in addition to the sales tax
2115 authorized under Section 59-12-401 , impose an additional resort communities sales tax in an
2116 amount that is less than or equal to .5% on the transactions described in Subsection
2117 59-12-103 (1) located within the municipality.
2118 (b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
2119 impose a tax under this section on:
2120 (i) the sale of:
2121 (A) a motor vehicle;
2122 (B) an aircraft;
2123 (C) a watercraft;
2124 (D) a modular home;
2125 (E) a manufactured home; or
2126 (F) a mobile home; or
2127 (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2128 are exempt from taxation under Section 59-12-104 [; and].
2129 [(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
2130 food ingredients.]
2131 (c) For purposes of this Subsection (1), the location of a transaction shall be
2132 determined in accordance with Sections 59-12-211 through 59-12-215 .
2133 [(d) A municipality imposing a tax under this section shall impose the tax on amounts
2134 paid or charged for food and food ingredients if the food and food ingredients are sold as part
2135 of a bundled transaction attributable to food and food ingredients and tangible personal

2136 property other than food and food ingredients.]
2137 (2) (a) An amount equal to the total of any costs incurred by the state in connection
2138 with the implementation of Subsection (1) which exceed, in any year, the revenues received by
2139 the state from its collection fees received in connection with the implementation of Subsection
2140 (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
2141 provided for in Subsection (1).
2142 (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
2143 those cities and towns according to the amount of revenue the respective cities and towns
2144 generate in that year through imposition of that tax.
2145 (3) To impose an additional resort communities sales tax under this section, the
2146 governing body of the municipality shall:
2147 (a) pass a resolution approving the tax; and
2148 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided
2149 in Subsection (4).
2150 (4) To obtain voter approval for an additional resort communities sales tax under
2151 Subsection (3)(b), a municipality shall:
2152 (a) hold the additional resort communities sales tax election during:
2153 (i) a regular general election; or
2154 (ii) a municipal general election; and
2155 (b) publish notice of the election:
2156 (i) 15 days or more before the day on which the election is held; and
2157 (ii) in a newspaper of general circulation in the municipality.
2158 (5) An ordinance approving an additional resort communities sales tax under this
2159 section shall provide an effective date for the tax as provided in Section 59-12-403 .
2160 (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the
2161 voter approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
2162 municipality imposed a license fee or tax on businesses based on gross receipts pursuant to
2163 Section 10-1-203 .
2164 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
2165 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only
2166 one class of businesses based on gross receipts pursuant to Section 10-1-203 .

2167 Section 10. Section 59-12-501 is amended to read:
2168 59-12-501. Public transit tax -- Base -- Rate -- Voter approval.
2169 (1) (a) (i) In addition to other sales and use taxes, any county, city, or town may impose
2170 a sales and use tax of up to:
2171 (A) for a county, city, or town other than a county, city, or town described in
2172 Subsection (1)(a)(i)(B), .25% on the transactions described in Subsection 59-12-103 (1) located
2173 within the county, city, or town, to fund a public transportation system; or
2174 (B) beginning on January 1, 2008, for a county, city, or town within which a tax is not
2175 imposed under Part 15, County Option Sales and Use Tax for Highways, Fixed Guideways, or
2176 Systems for Public Transit Act, .30% on the transactions described in Subsection 59-12-103 (1)
2177 located within the county, city, or town, to fund a public transportation system.
2178 (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
2179 under this section on[: (A)] the sales and uses described in Section 59-12-104 to the extent the
2180 sales and uses are exempt from taxation under Section 59-12-104 [; and].
2181 [(B) except as provided in Subsection (1)(c), amounts paid or charged for food and
2182 food ingredients.]
2183 (b) For purposes of this Subsection (1), the location of a transaction shall be
2184 determined in accordance with Sections 59-12-211 through 59-12-215 .
2185 [(c) A county, city, or town imposing a tax under this section shall impose the tax on
2186 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2187 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2188 property other than food and food ingredients.]
2189 [(d)] (c) Except as provided in Subsection (3) or (4), a county, city, or town may
2190 impose a tax under this section only if the governing body of the county, city, or town, by
2191 resolution, submits the proposal to all the qualified voters within the county, city, or town for
2192 approval at a general or special election conducted in the manner provided by statute.
2193 (2) (a) Notice of any such election shall be given by the county, city, or town governing
2194 body 15 days in advance in the manner prescribed by statute.
2195 (b) If a majority of the voters voting in such election approve the proposal, it shall
2196 become effective on the date provided by the county, city, or town governing body.
2197 (3) This section may not be construed to require an election in jurisdictions where

2198 voters have previously approved a public transit sales or use tax.
2199 (4) A county, city, or town is not subject to the voter approval requirements of this
2200 section if:
2201 (a) on December 31, 2007, the county, city, or town imposes a tax of .25% under this
2202 section; and
2203 (b) on or after January 1, 2008, subject to Subsection (1)(a)(i)(B), the county, city, or
2204 town increases the tax rate under this section to up to .30%.
2205 Section 11. Section 59-12-502 is amended to read:
2206 59-12-502. Additional public transit tax for expanded public transit system and
2207 fixed guideway and state highway improvements -- Base -- Rate -- Voter approval.
2208 (1) (a) (i) In addition to other sales and use taxes, including the public transit district
2209 tax authorized by Section 59-12-501 , a county, city, or town may impose a sales and use tax of
2210 .25% on the transactions described in Subsection 59-12-103 (1) located within the county, city,
2211 or town, to fund a fixed guideway and expanded public transportation system.
2212 (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
2213 under this section on[: (A)] the sales and uses described in Section 59-12-104 to the extent the
2214 sales and uses are exempt from taxation under Section 59-12-104 [; and].
2215 [(B) except as provided in Subsection (1)(c), amounts paid or charged for food and
2216 food ingredients.]
2217 (b) For purposes of this Subsection (1), the location of a transaction shall be
2218 determined in accordance with Sections 59-12-211 through 59-12-215 .
2219 [(c) A county, city, or town imposing a tax under this section shall impose the tax on
2220 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2221 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2222 property other than food and food ingredients.]
2223 [(d)] (c) (i) A county, city, or town may impose the tax under this section only if the
2224 governing body of the county, city, or town submits, by resolution, the proposal to all the
2225 qualified voters within the county, city, or town for approval at a general or special election
2226 conducted in the manner provided by statute.
2227 (ii) Notice of the election under Subsection (1)[(d)](c)(i) shall be given by the county,
2228 city, or town governing body 15 days in advance in the manner prescribed by statute.

2229 (2) If the majority of the voters voting in this election approve the proposal, it shall
2230 become effective on the date provided by the county, city, or town governing body.
2231 (3) (a) This section may not be construed to require an election in jurisdictions where
2232 voters have previously approved a public transit sales or use tax.
2233 (b) This section shall be construed to require an election to impose the sales and use
2234 tax authorized by this section, including jurisdictions where the voters have previously
2235 approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
2236 construed to affect the sales and use tax authorized by Section 59-12-501 .
2237 (4) No public funds shall be spent to promote the required election.
2238 (5) Notwithstanding the designated use of revenues in Subsection (1), of the revenues
2239 generated by the tax imposed under this section by any county of the first class:
2240 (a) 80% shall be allocated to fund a fixed guideway and expanded public transportation
2241 system; and
2242 (b) 20% shall be deposited into the County of the First Class State Highway Projects
2243 Fund created by Section 72-2-121 .
2244 Section 12. Section 59-12-703 is amended to read:
2245 59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses of
2246 tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
2247 (1) (a) (i) A county legislative body may submit an opinion question to the residents of
2248 that county, by majority vote of all members of the legislative body, so that each resident of the
2249 county, except residents in municipalities that have already imposed a sales and use tax under
2250 Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
2251 Organizations or Facilities, has an opportunity to express the resident's opinion on the
2252 imposition of a local sales and use tax of .1% on the transactions described in Subsection
2253 59-12-103 (1) located within the county, to fund recreational and zoological facilities, botanical,
2254 cultural, and zoological organizations, and rural radio stations, in that county.
2255 (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
2256 tax under this section on:
2257 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2258 are exempt from taxation under Section 59-12-104 ; or
2259 (B) sales and uses within municipalities that have already imposed a sales and use tax

2260 under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
2261 Zoological Organizations or Facilities[; and].
2262 [(C) except as provided in Subsection (1)(c), amounts paid or charged for food and
2263 food ingredients.]
2264 (b) For purposes of this Subsection (1), the location of a transaction shall be
2265 determined in accordance with Sections 59-12-211 through 59-12-215 .
2266 [(c) A county legislative body imposing a tax under this section shall impose the tax on
2267 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2268 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2269 property other than food and food ingredients.]
2270 [(d)] (c) The election shall follow the procedures outlined in Title 11, Chapter 14,
2271 Local Government Bonding Act.
2272 (2) (a) If the county legislative body determines that a majority of the county's
2273 registered voters voting on the imposition of the tax have voted in favor of the imposition of
2274 the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
2275 majority vote of all members of the legislative body on the transactions:
2276 (i) described in Subsection (1); and
2277 (ii) within the county, including the cities and towns located in the county, except those
2278 cities and towns that have already imposed a sales and use tax under Part 14, City or Town
2279 Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
2280 Facilities.
2281 (b) A county legislative body may revise county ordinances to reflect statutory changes
2282 to the distribution formula or eligible recipients of revenues generated from a tax imposed
2283 under Subsection (2)(a):
2284 (i) after the county legislative body submits an opinion question to residents of the
2285 county in accordance with Subsection (1) giving them the opportunity to express their opinion
2286 on the proposed revisions to county ordinances; and
2287 (ii) if the county legislative body determines that a majority of those voting on the
2288 opinion question have voted in favor of the revisions.
2289 (3) The monies generated from any tax imposed under Subsection (2) shall be used for
2290 funding:

2291 (a) recreational and zoological facilities located within the county or a city or town
2292 located in the county, except a city or town that has already imposed a sales and use tax under
2293 Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
2294 Organizations or Facilities; and
2295 (b) ongoing operating expenses of:
2296 (i) recreational facilities described in Subsection (3)(a);
2297 (ii) botanical, cultural, and zoological organizations within the county; and
2298 (iii) rural radio stations within the county.
2299 (4) (a) A tax authorized under this part shall be:
2300 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2301 accordance with:
2302 (A) the same procedures used to administer, collect, and enforce the tax under:
2303 (I) Part 1, Tax Collection; or
2304 (II) Part 2, Local Sales and Use Tax Act; and
2305 (B) Chapter 1, General Taxation Policies; and
2306 (ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
2307 period in accordance with this section.
2308 (b) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
2309 Subsections 59-12-205 (2) through (6).
2310 (5) (a) For purposes of this Subsection (5):
2311 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
2312 Annexation to County.
2313 (ii) "Annexing area" means an area that is annexed into a county.
2314 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
2315 county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
2316 (A) on the first day of a calendar quarter; and
2317 (B) after a 90-day period beginning on the date the commission receives notice meeting
2318 the requirements of Subsection (5)(b)(ii) from the county.
2319 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
2320 (A) that the county will enact or repeal a tax under this part;
2321 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);

2322 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
2323 (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
2324 tax.
2325 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
2326 (A) that begins after the effective date of the enactment of the tax; and
2327 (B) if the billing period for the transaction begins before the effective date of the
2328 enactment of the tax under this section.
2329 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
2330 (A) that began before the effective date of the repeal of the tax; and
2331 (B) if the billing period for the transaction begins before the effective date of the repeal
2332 of the tax imposed under this section.
2333 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2334 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2335 Subsection (5)(b)(i) takes effect:
2336 (A) on the first day of a calendar quarter; and
2337 (B) beginning 60 days after the effective date of the enactment or repeal under
2338 Subsection (5)(b)(i).
2339 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2340 commission may by rule define the term "catalogue sale."
2341 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
2342 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
2343 part for an annexing area, the enactment or repeal shall take effect:
2344 (A) on the first day of a calendar quarter; and
2345 (B) after a 90-day period beginning on the date the commission receives notice meeting
2346 the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
2347 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
2348 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
2349 repeal of a tax under this part for the annexing area;
2350 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
2351 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
2352 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).

2353 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
2354 (A) that begins after the effective date of the enactment of the tax; and
2355 (B) if the billing period for the transaction begins before the effective date of the
2356 enactment of the tax under this section.
2357 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
2358 (A) that began before the effective date of the repeal of the tax; and
2359 (B) if the billing period for the transaction begins before the effective date of the repeal
2360 of the tax imposed under this section.
2361 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2362 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2363 Subsection (5)(e)(i) takes effect:
2364 (A) on the first day of a calendar quarter; and
2365 (B) beginning 60 days after the effective date of the enactment or repeal under
2366 Subsection (5)(e)(i).
2367 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2368 commission may by rule define the term "catalogue sale."
2369 Section 13. Section 59-12-802 is amended to read:
2370 59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
2371 tax revenues -- Base -- Rate -- Administration, collection, and enforcement of tax.
2372 (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
2373 may impose a sales and use tax of up to 1%:
2374 (i) on the transactions described in Subsection 59-12-103 (1) located within the county;
2375 and
2376 (ii) subject to Subsection (3), to fund:
2377 (A) for a county of the third, fourth, or fifth class, rural county health care facilities in
2378 that county; or
2379 (B) for a county of the sixth class:
2380 (I) emergency medical services in that county;
2381 (II) federally qualified health centers in that county;
2382 (III) freestanding urgent care centers in that county;
2383 (IV) rural county health care facilities in that county;

2384 (V) rural health clinics in that county; or
2385 (VI) a combination of Subsections (1)(a)(ii)(B)(I) through (V).
2386 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
2387 tax under this section on:
2388 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2389 are exempt from taxation under Section 59-12-104 ; or
2390 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
2391 a city that imposes a tax under Section 59-12-804 [; and].
2392 [(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
2393 food ingredients.]
2394 (c) For purposes of this Subsection (1), the location of a transaction shall be
2395 determined in accordance with Sections 59-12-211 through 59-12-215 .
2396 [(d) A county legislative body imposing a tax under this section shall impose the tax on
2397 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2398 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2399 property other than food and food ingredients.]
2400 (2) (a) Before imposing a tax under Subsection (1)(a), a county legislative body shall
2401 obtain approval to impose the tax from a majority of the:
2402 (i) members of the county's legislative body; and
2403 (ii) county's registered voters voting on the imposition of the tax.
2404 (b) The county legislative body shall conduct the election according to the procedures
2405 and requirements of Title 11, Chapter 14, Local Government Bonding Act.
2406 (3) (a) The monies generated by a tax imposed under Subsection (1) by a county
2407 legislative body of a county of the third, fourth, or fifth class may only be used for the
2408 financing of:
2409 (i) ongoing operating expenses of a rural county health care facility within that county;
2410 (ii) the acquisition of land for a rural county health care facility within that county; or
2411 (iii) the design, construction, equipping, or furnishing of a rural county health care
2412 facility within that county.
2413 (b) The monies generated by a tax imposed under Subsection (1) by a county of the
2414 sixth class may only be used for the financing of:

2415 (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
2416 (1)(a)(ii)(B) within that county;
2417 (ii) the acquisition of land for a center, clinic, or facility described in Subsection
2418 (1)(a)(ii)(B) within that county;
2419 (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
2420 described in Subsection (1)(a)(ii)(B) within that county; or
2421 (iv) the provision of rural emergency medical services within that county.
2422 (4) (a) A tax under this section shall be:
2423 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2424 accordance with:
2425 (A) the same procedures used to administer, collect, and enforce the tax under:
2426 (I) Part 1, Tax Collection; or
2427 (II) Part 2, Local Sales and Use Tax Act; and
2428 (B) Chapter 1, General Taxation Policies; and
2429 (ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
2430 period by the county legislative body as provided in Subsection (1).
2431 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
2432 Subsections 59-12-205 (2) through (6).
2433 (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
2434 under this section for the cost of administering this tax.
2435 Section 14. Section 59-12-804 is amended to read:
2436 59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
2437 collection, and enforcement of tax.
2438 (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
2439 (i) on the transactions described in Subsection 59-12-103 (1) located within the city;
2440 and
2441 (ii) to fund rural city hospitals in that city.
2442 (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
2443 under this section on[: (i)] the sales and uses described in Section 59-12-104 to the extent the
2444 sales and uses are exempt from taxation under Section 59-12-104 [; and].
2445 [(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and

2446 food ingredients.]
2447 (c) For purposes of this Subsection (1), the location of a transaction shall be
2448 determined in accordance with Sections 59-12-211 through 59-12-215 .
2449 [(d) A city legislative body imposing a tax under this section shall impose the tax on
2450 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2451 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2452 property other than food and food ingredients.]
2453 (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
2454 obtain approval to impose the tax from a majority of the:
2455 (i) members of the city legislative body; and
2456 (ii) city's registered voters voting on the imposition of the tax.
2457 (b) The city legislative body shall conduct the election according to the procedures and
2458 requirements of Title 11, Chapter 14, Local Government Bonding Act.
2459 (3) The monies generated by a tax imposed under Subsection (1) may only be used for
2460 the financing of:
2461 (a) ongoing operating expenses of a rural city hospital;
2462 (b) the acquisition of land for a rural city hospital; or
2463 (c) the design, construction, equipping, or furnishing of a rural city hospital.
2464 (4) (a) A tax under this section shall be:
2465 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2466 accordance with:
2467 (A) the same procedures used to administer, collect, and enforce the tax under:
2468 (I) Part 1, Tax Collection; or
2469 (II) Part 2, Local Sales and Use Tax Act; and
2470 (B) Chapter 1, General Taxation Policies; and
2471 (ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
2472 period by the city legislative body as provided in Subsection (1).
2473 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
2474 Subsections 59-12-205 (2) through (6).
2475 (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
2476 under this section for the cost of administering the tax.

2477 Section 15. Section 59-12-1001 is amended to read:
2478 59-12-1001. Authority to impose tax for highways or to fund a system for public
2479 transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements --
2480 Election requirements -- Notice of election requirements -- Exceptions to voter approval
2481 requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.
2482 (1) (a) A city or town in which the transactions described in Subsection 59-12-103 (1)
2483 are not subject to a sales and use tax under Section 59-12-501 may as provided in this part
2484 impose a sales and use tax of:
2485 (i) beginning on January 1, 1998, and ending on December 31, 2007, .25% on the
2486 transactions described in Subsection 59-12-103 (1) located within the city or town; or
2487 (ii) beginning on January 1, 2008, .30% on the transactions described in Subsection
2488 59-12-103 (1) located within the city or town.
2489 (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
2490 section on[:(i)] the sales and uses described in Section 59-12-104 to the extent the sales and
2491 uses are exempt from taxation under Section 59-12-104 [; and].
2492 [(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and
2493 food ingredients.]
2494 (c) For purposes of this Subsection (1), the location of a transaction shall be
2495 determined in accordance with Sections 59-12-211 through 59-12-215 .
2496 [(d) A city or town imposing a tax under this section shall impose the tax on amounts
2497 paid or charged for food and food ingredients if the food and food ingredients are sold as part
2498 of a bundled transaction attributable to food and food ingredients and tangible personal
2499 property other than food and food ingredients.]
2500 (2) (a) A city or town imposing a tax under this part may use the revenues generated by
2501 the tax:
2502 (i) for the construction and maintenance of highways under the jurisdiction of the city
2503 or town imposing the tax;
2504 (ii) subject to Subsection (2)(b), to fund a system for public transit; or
2505 (iii) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).
2506 (b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection
2507 (2)(b)(ii), "public transit" is as defined in Section 17B-2a-802 .

2508 (ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed
2509 guideway system.
2510 (3) To impose a tax under this part, the governing body of the city or town shall:
2511 (a) pass an ordinance approving the tax; and
2512 (b) except as provided in Subsection (7) or (8), obtain voter approval for the tax as
2513 provided in Subsection (4).
2514 (4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:
2515 (a) hold an election during:
2516 (i) a regular general election; or
2517 (ii) a municipal general election; and
2518 (b) publish notice of the election:
2519 (i) 15 days or more before the day on which the election is held; and
2520 (ii) in a newspaper of general circulation in the city or town.
2521 (5) An ordinance approving a tax under this part shall provide an effective date for the
2522 tax as provided in Subsection (6).
2523 (6) (a) For purposes of this Subsection (6):
2524 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
2525 4, Annexation.
2526 (ii) "Annexing area" means an area that is annexed into a city or town.
2527 (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after April 1, 2008, a city
2528 or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
2529 (A) on the first day of a calendar quarter; and
2530 (B) after a 90-day period beginning on the date the commission receives notice meeting
2531 the requirements of Subsection (6)(b)(ii) from the city or town.
2532 (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
2533 (A) that the city or town will enact or repeal a tax under this part;
2534 (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
2535 (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
2536 (D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of
2537 the tax.
2538 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:

2539 (A) that begins after the effective date of the enactment of the tax; and
2540 (B) if the billing period for the transaction begins before the effective date of the
2541 enactment of the tax under Subsection (1).
2542 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
2543 (A) that began before the effective date of the repeal of the tax; and
2544 (B) if the billing period for the transaction begins before the effective date of the repeal
2545 of the tax imposed under Subsection (1).
2546 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2547 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2548 Subsection (6)(b)(i) takes effect:
2549 (A) on the first day of a calendar quarter; and
2550 (B) beginning 60 days after the effective date of the enactment or repeal under
2551 Subsection (6)(b)(i).
2552 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2553 commission may by rule define the term "catalogue sale."
2554 (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
2555 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
2556 part for an annexing area, the enactment or repeal shall take effect:
2557 (A) on the first day of a calendar quarter; and
2558 (B) after a 90-day period beginning on the date the commission receives notice meeting
2559 the requirements of Subsection (6)(e)(ii) from the city or town that annexes the annexing area.
2560 (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
2561 (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
2562 repeal of a tax under this part for the annexing area;
2563 (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
2564 (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
2565 (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
2566 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
2567 (A) that begins after the effective date of the enactment of the tax; and
2568 (B) if the billing period for the transaction begins before the effective date of the
2569 enactment of the tax under Subsection (1).

2570 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
2571 (A) that began before the effective date of the repeal of the tax; and
2572 (B) if the billing period for the transaction begins before the effective date of the repeal
2573 of the tax imposed under Subsection (1).
2574 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2575 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2576 Subsection (6)(e)(i) takes effect:
2577 (A) on the first day of a calendar quarter; and
2578 (B) beginning 60 days after the effective date of the enactment or repeal under
2579 Subsection (6)(e)(i).
2580 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2581 commission may by rule define the term "catalogue sale."
2582 (7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the
2583 voter approval requirements of Subsection (3)(b) if:
2584 (i) on or before January 1, 1996, the city or town imposed a license fee or tax on
2585 businesses based on gross receipts pursuant to Section 10-1-203 ; or
2586 (ii) the city or town:
2587 (A) on or before June 30, 2002, obtained voter approval in accordance with Subsection
2588 (3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and
2589 (B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a
2590 purpose described in Subsection (2)(a).
2591 (b) The exception from the voter approval requirements in Subsection (7)(a)(i) does not
2592 apply to a city or town that, on or before January 1, 1996, imposed a license fee or tax on only
2593 one class of businesses based on gross receipts pursuant to Section 10-1-203 .
2594 (8) A city or town is not subject to the voter approval requirements of Subsection
2595 (3)(b) if:
2596 (a) on December 31, 2007, the city or town imposes a tax of .25% under this section;
2597 and
2598 (b) on or after January 1, 2008, the city or town increases the tax rate under this section
2599 to .30%.
2600 Section 16. Section 59-12-1302 is amended to read:

2601 59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
2602 rate change -- Effective date -- Notice requirements.
2603 (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
2604 tax as provided in this part in an amount that does not exceed 1%.
2605 (2) A town may impose a tax as provided in this part if the town imposed a license fee
2606 or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
2607 1996.
2608 (3) A town imposing a tax under this section shall:
2609 (a) except as provided in Subsection (4), impose the tax on the transactions described
2610 in Subsection 59-12-103 (1) located within the town; and
2611 (b) provide an effective date for the tax as provided in Subsection (5).
2612 (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
2613 section on[: (i)] the sales and uses described in Section 59-12-104 to the extent the sales and
2614 uses are exempt from taxation under Section 59-12-104 [; and].
2615 [(ii) except as provided in Subsection (4)(c), amounts paid or charged for food and
2616 food ingredients.]
2617 (b) For purposes of this Subsection (4), the location of a transaction shall be
2618 determined in accordance with Sections 59-12-211 through 59-12-215 .
2619 [(c) A town imposing a tax under this section shall impose the tax on amounts paid or
2620 charged for food and food ingredients if the food and food ingredients are sold as part of a
2621 bundled transaction attributable to food and food ingredients and tangible personal property
2622 other than food and food ingredients.]
2623 (5) (a) For purposes of this Subsection (5):
2624 (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
2625 Annexation.
2626 (ii) "Annexing area" means an area that is annexed into a town.
2627 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
2628 town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
2629 or change shall take effect:
2630 (A) on the first day of a calendar quarter; and
2631 (B) after a 90-day period beginning on the date the commission receives notice meeting

2632 the requirements of Subsection (5)(b)(ii) from the town.
2633 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
2634 (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
2635 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
2636 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
2637 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
2638 (5)(b)(ii)(A), the rate of the tax.
2639 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
2640 the first billing period:
2641 (A) that begins after the effective date of the enactment of the tax or the tax rate
2642 increase; and
2643 (B) if the billing period for the transaction begins before the effective date of the
2644 enactment of the tax or the tax rate increase imposed under Subsection (1).
2645 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
2646 billing period:
2647 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2648 and
2649 (B) if the billing period for the transaction begins before the effective date of the repeal
2650 of the tax or the tax rate decrease imposed under Subsection (1).
2651 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2652 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
2653 a tax described in Subsection (5)(b)(i) takes effect:
2654 (A) on the first day of a calendar quarter; and
2655 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
2656 rate of the tax under Subsection (5)(b)(i).
2657 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2658 commission may by rule define the term "catalogue sale."
2659 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
2660 on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
2661 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
2662 effect:

2663 (A) on the first day of a calendar quarter; and
2664 (B) after a 90-day period beginning on the date the commission receives notice meeting
2665 the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
2666 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
2667 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
2668 repeal, or change in the rate of a tax under this part for the annexing area;
2669 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
2670 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
2671 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
2672 (5)(e)(ii)(A), the rate of the tax.
2673 (f) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
2674 the first billing period:
2675 (A) that begins after the effective date of the enactment of the tax or the tax rate
2676 increase; and
2677 (B) if the billing period for the transaction begins before the effective date of the
2678 enactment of the tax or the tax rate increase imposed under Subsection (1).
2679 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
2680 billing period:
2681 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2682 and
2683 (B) if the billing period for the transaction begins before the effective date of the repeal
2684 of the tax or the tax rate decrease imposed under Subsection (1).
2685 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2686 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
2687 a tax described in Subsection (5)(e)(i) takes effect:
2688 (A) on the first day of a calendar quarter; and
2689 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
2690 rate of the tax under Subsection (5)(e)(i).
2691 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2692 commission may by rule define the term "catalogue sale."
2693 (6) The commission shall:

2694 (a) except as provided in Subsection (6)(c), distribute the revenues generated by the tax
2695 under this section to the town imposing the tax;
2696 (b) except as provided in Subsection (7), administer, collect, and enforce the tax
2697 authorized under this section in accordance with:
2698 (i) the same procedures used to administer, collect, and enforce the tax under:
2699 (A) Part 1, Tax Collection; or
2700 (B) Part 2, Local Sales and Use Tax Act; and
2701 (ii) Chapter 1, General Taxation Policies; and
2702 (c) deduct from the distribution under Subsection (6)(a) an administrative charge for
2703 collecting the tax as provided in Section 59-12-206 .
2704 (7) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
2705 Subsections 59-12-205 (2) through (6).
2706 Section 17. Section 59-12-1402 is amended to read:
2707 59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses
2708 of tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
2709 (1) (a) (i) Subject to Subsection (6), beginning on January 1, 2003, a city or town
2710 legislative body subject to this part may submit an opinion question to the residents of that city
2711 or town, by majority vote of all members of the legislative body, so that each resident of the
2712 city or town has an opportunity to express the resident's opinion on the imposition of a local
2713 sales and use tax of .1% on the transactions described in Subsection 59-12-103 (1) located
2714 within the city or town, to fund recreational and zoological facilities and botanical, cultural,
2715 and zoological organizations in that city or town.
2716 (ii) Notwithstanding Subsection (1)(a)(i), a city or town legislative body may not
2717 impose a tax under this section:
2718 (A) if the county in which the city or town is located imposes a tax under Part 7,
2719 County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
2720 Facilities; or
2721 (B) on the sales and uses described in Section 59-12-104 to the extent the sales and
2722 uses are exempt from taxation under Section 59-12-104 [; and].
2723 [(C) except as provided in Subsection (1)(c), on amounts paid or charged for food and
2724 food ingredients.]

2725 (b) For purposes of this Subsection (1), the location of a transaction shall be
2726 determined in accordance with Sections 59-12-211 through 59-12-215 .
2727 [(c) A city or town legislative body imposing a tax under this section shall impose the
2728 tax on amounts paid or charged for food and food ingredients if the food and food ingredients
2729 are sold as part of a bundled transaction attributable to food and food ingredients and tangible
2730 personal property other than food and food ingredients.]
2731 [(d)] (c) The election shall be held at a regular general election or a municipal general
2732 election, as those terms are defined in Section 20A-1-102 , and shall follow the procedures
2733 outlined in Title 11, Chapter 14, Local Government Bonding Act, except as provided in
2734 Subsection (6).
2735 (2) If the city or town legislative body determines that a majority of the city's or town's
2736 registered voters voting on the imposition of the tax have voted in favor of the imposition of
2737 the tax as prescribed in Subsection (1)(a), the city or town legislative body may impose the tax
2738 by a majority vote of all members of the legislative body.
2739 (3) The monies generated from any tax imposed under Subsection (2) shall be used for
2740 financing:
2741 (a) recreational and zoological facilities within the city or town or within the
2742 geographic area of entities that are parties to an interlocal agreement, to which the city or town
2743 is a party, providing for recreational or zoological facilities; and
2744 (b) ongoing operating expenses of botanical, cultural, and zoological organizations
2745 within the city or town or within the geographic area of entities that are parties to an interlocal
2746 agreement, to which the city or town is a party, providing for the support of botanical, cultural,
2747 or zoological organizations.
2748 (4) (a) A tax authorized under this part shall be:
2749 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2750 accordance with:
2751 (A) the same procedures used to administer, collect, and enforce the tax under:
2752 (I) Part 1, Tax Collection; or
2753 (II) Part 2, Local Sales and Use Tax Act; and
2754 (B) Chapter 1, General Taxation Policies; and
2755 (ii) (A) levied for a period of eight years; and

2756 (B) may be reauthorized at the end of the eight-year period in accordance with this
2757 section.
2758 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
2759 Subsections 59-12-205 (2) through (6).
2760 (5) (a) For purposes of this Subsection (5):
2761 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
2762 4, Annexation.
2763 (ii) "Annexing area" means an area that is annexed into a city or town.
2764 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
2765 or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
2766 (A) on the first day of a calendar quarter; and
2767 (B) after a 90-day period beginning on the date the commission receives notice meeting
2768 the requirements of Subsection (5)(b)(ii) from the city or town.
2769 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
2770 (A) that the city or town will enact or repeal a tax under this part;
2771 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
2772 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
2773 (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
2774 the tax.
2775 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
2776 (A) that begins after the effective date of the enactment of the tax; and
2777 (B) if the billing period for the transaction begins before the effective date of the
2778 enactment of the tax under this section.
2779 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
2780 (A) that began before the effective date of the repeal of the tax; and
2781 (B) if the billing period for the transaction begins before the effective date of the repeal
2782 of the tax imposed under this section.
2783 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2784 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2785 Subsection (5)(b)(i) takes effect:
2786 (A) on the first day of a calendar quarter; and

2787 (B) beginning 60 days after the effective date of the enactment or repeal under
2788 Subsection (5)(b)(i).
2789 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2790 commission may by rule define the term "catalogue sale."
2791 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
2792 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
2793 part for an annexing area, the enactment or repeal shall take effect:
2794 (A) on the first day of a calendar quarter; and
2795 (B) after a 90-day period beginning on the date the commission receives notice meeting
2796 the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
2797 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
2798 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
2799 repeal a tax under this part for the annexing area;
2800 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
2801 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
2802 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
2803 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
2804 (A) that begins after the effective date of the enactment of the tax; and
2805 (B) if the billing period for the transaction begins before the effective date of the
2806 enactment of the tax under this section.
2807 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
2808 (A) that began before the effective date of the repeal of the tax; and
2809 (B) if the billing period for the transaction begins before the effective date of the repeal
2810 of the tax imposed under this section.
2811 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2812 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2813 Subsection (5)(e)(i) takes effect:
2814 (A) on the first day of a calendar quarter; and
2815 (B) beginning 60 days after the effective date of the enactment or repeal under
2816 Subsection (5)(e)(i).
2817 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

2818 commission may by rule define the term "catalogue sale."
2819 (6) (a) Before a city or town legislative body submits an opinion question to the
2820 residents of the city or town under Subsection (1)(a)(i), the city or town legislative body shall:
2821 (i) submit to the county legislative body in which the city or town is located a written
2822 notice of the intent to submit the opinion question to the residents of the city or town; and
2823 (ii) receive from the county legislative body:
2824 (A) a written resolution passed by the county legislative body stating that the county
2825 legislative body is not seeking to impose a tax under Part 7, County Option Funding for
2826 Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
2827 (B) a written statement that in accordance with Subsection (6)(b) the results of a county
2828 opinion question submitted to the residents of the county under Part 7, County Option Funding
2829 for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
2830 or town legislative body to submit the opinion question to the residents of the city or town in
2831 accordance with this part.
2832 (b) (i) Within 60 days after the day the county legislative body receives from a city or
2833 town legislative body described in Subsection (6)(a) the notice of the intent to submit an
2834 opinion question to the residents of the city or town, the county legislative body shall provide
2835 the city or town legislative body:
2836 (A) the written resolution described in Subsection (6)(a)(ii)(A); or
2837 (B) written notice that the county legislative body will submit an opinion question to
2838 the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
2839 Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
2840 that part.
2841 (ii) If the county legislative body provides the city or town legislative body the written
2842 notice that the county legislative body will submit an opinion question as provided in
2843 Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
2844 later than, from the date the county legislative body sends the written notice, the later of:
2845 (A) a 12-month period;
2846 (B) the next regular primary election; or
2847 (C) the next regular general election.
2848 (iii) Within 30 days of the date of the canvass of the election at which the opinion

2849 question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
2850 city or town legislative body described in Subsection (6)(a) written results of the opinion
2851 question submitted by the county legislative body under Part 7, County Option Funding for
2852 Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
2853 (A) (I) the city or town legislative body may not impose a tax under this part because a
2854 majority of the county's registered voters voted in favor of the county imposing the tax and the
2855 county legislative body by a majority vote approved the imposition of the tax; or
2856 (II) for at least 12 months from the date the written results are submitted to the city or
2857 town legislative body, the city or town legislative body may not submit to the county legislative
2858 body a written notice of the intent to submit an opinion question under this part because a
2859 majority of the county's registered voters voted against the county imposing the tax and the
2860 majority of the registered voters who are residents of the city or town described in Subsection
2861 (6)(a) voted against the imposition of the county tax; or
2862 (B) the city or town legislative body may submit the opinion question to the residents
2863 of the city or town in accordance with this part because although a majority of the county's
2864 registered voters voted against the county imposing the tax, the majority of the registered voters
2865 who are residents of the city or town voted for the imposition of the county tax.
2866 (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
2867 provide a city or town legislative body described in Subsection (6)(a) a written resolution
2868 passed by the county legislative body stating that the county legislative body is not seeking to
2869 impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
2870 Zoological Organizations or Facilities, which permits the city or town legislative body to
2871 submit under Subsection (1)(a)(i) an opinion question to the city's or town's residents.
2872 Section 18. Section 59-12-1503 is amended to read:
2873 59-12-1503. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
2874 tax revenues -- Administration, collection, and enforcement of tax by commission --
2875 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
2876 (1) (a) Subject to the other provisions of this part, the county legislative body of a
2877 qualifying county may impose a sales and use tax of:
2878 (i) beginning on April 1, 2004, and ending on December 31, 2007, .25%:
2879 (A) on the transactions:

2880 (I) described in Subsection 59-12-103 (1); and
2881 (II) within the county, including the cities and towns within the county;
2882 (B) for the purposes determined by the county legislative body in accordance with
2883 Subsection (2); and
2884 (C) in addition to any other sales and use tax authorized under this chapter; or
2885 (ii) beginning on January 1, 2008, up to .30%:
2886 (A) on the transactions:
2887 (I) described in Subsection 59-12-103 (1); and
2888 (II) within the county, including the cities and towns within the county;
2889 (B) for the purposes determined by the county legislative body in accordance with
2890 Subsection (2); and
2891 (C) in addition to any other sales and use tax authorized under this chapter.
2892 (b) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
2893 under this section on[:(i)] the sales and uses described in Section 59-12-104 to the extent the
2894 sales and uses are exempt from taxation under Section 59-12-104 [; and].
2895 [(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and
2896 food ingredients.]
2897 (c) For purposes of this Subsection (1), the location of a transaction shall be
2898 determined in accordance with Sections 59-12-211 through 59-12-215 .
2899 [(d) A county legislative body imposing a tax under this section shall impose the tax on
2900 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2901 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2902 property other than food and food ingredients.]
2903 (2) (a) Subject to Subsection (2)(b), before obtaining the approval required by
2904 Subsection (3), a county legislative body shall adopt a resolution specifying the percentage of
2905 revenues the county will receive from the tax under this part that will be allocated to fund one
2906 or more of the following:
2907 (i) a project or service relating to a fixed guideway system for the portion of the project
2908 or service that is performed within the county;
2909 (ii) a project or service relating to a system for public transit for the portion of the
2910 project or service that is performed within the county; or

2911 (iii) the following relating to a state highway or a local highway of regional
2912 significance within the county:
2913 (A) a project beginning on or after the day on which a county legislative body imposes
2914 a tax under this part only within the county involving:
2915 (I) new construction;
2916 (II) a renovation;
2917 (III) an improvement; or
2918 (IV) an environmental study;
2919 (B) debt service on a project described in Subsections (2)(a)(iii)(A)(I) through (IV); or
2920 (C) bond issuance costs relating to a project described in Subsections (2)(a)(iii)(A)(I)
2921 through (IV).
2922 (b) (i) A county legislative body shall in the resolution required by Subsection (2)(a)
2923 allocate as required by Subsection (2)(a) 100% of the revenues the county will receive from the
2924 tax under this part.
2925 (ii) For purposes of this Subsection (2)(b), the revenues a county will receive from the
2926 tax under this part do not include amounts retained by the commission in accordance with
2927 Subsection (8).
2928 (3) (a) Except as provided in Subsection (3)(d), before imposing a tax under this part, a
2929 county legislative body shall:
2930 (i) obtain approval from a majority of the members of the county legislative body to:
2931 (A) impose the tax; and
2932 (B) allocate the revenues the county will receive from the tax in accordance with the
2933 resolution adopted in accordance with Subsection (2); and
2934 (ii) subject to Subsection (3)(b), submit an opinion question to the county's registered
2935 voters voting on the imposition of the tax so that each registered voter has the opportunity to
2936 express the registered voter's opinion on whether a tax should be imposed under this part.
2937 (b) The opinion question required by Subsection (3)(a)(ii) shall state the allocations
2938 specified in the resolution:
2939 (i) adopted in accordance with Subsection (2); and
2940 (ii) approved by the county legislative body in accordance with Subsection (3)(a).
2941 (c) The election required by this Subsection (3) shall be held:

2942 (i) (A) at a regular general election; and
2943 (B) in accordance with the procedures and requirements of Title 20A, Election Code,
2944 governing regular general elections; or
2945 (ii) (A) at a special election called by the county legislative body;
2946 (B) only on the date of a municipal general election provided in Subsection
2947 20A-1-202 (1); and
2948 (C) in accordance with the procedures and requirements of Section 20A-1-203 .
2949 (d) A county is not subject to the voter approval requirements of this section if:
2950 (i) on December 31, 2007, the county imposes a tax of .25% under this section; and
2951 (ii) on or after January 1, 2008, the county increases the tax rate under this section to
2952 up to .30%.
2953 (4) (a) Subject to Subsection (8), if a county legislative body determines that a majority
2954 of the county's registered voters voting on the imposition of the tax have voted in favor of the
2955 imposition of the tax in accordance with Subsection (3), the county legislative body may
2956 impose the tax by a majority vote of all of the members of the county legislative body.
2957 (b) If a county legislative body imposes a tax under Subsection (4)(a), the revenues
2958 generated by the tax shall be:
2959 (i) allocated in accordance with the allocations specified in the resolution under
2960 Subsection (2); and
2961 (ii) expended as provided in this part.
2962 (5) If a county legislative body allocates revenues generated by the tax for a project
2963 described in Subsection (2)(a)(iii)(A), before beginning the state highway project within the
2964 county, the county legislative body shall:
2965 (a) obtain approval from the Transportation Commission to complete the project; and
2966 (b) enter into an interlocal agreement:
2967 (i) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
2968 (ii) with the Department of Transportation; and
2969 (iii) to complete the project.
2970 (6) (a) If after a county legislative body imposes a tax under Subsection (4) the county
2971 legislative body seeks to change the allocation of the tax specified in the resolution under
2972 Subsection (2), the county legislative body may change the allocation of the tax by:

2973 (i) adopting a resolution in accordance with Subsection (2) specifying the percentage of
2974 revenues the county will receive from the tax under this part that will be allocated to fund one
2975 or more of the systems or projects described in Subsection (2);
2976 (ii) obtaining approval to change the allocation of the tax from a majority of the
2977 members of the county legislative body; and
2978 (iii) (A) submitting an opinion question to the county's registered voters voting on
2979 changing the allocation of the tax so that each registered voter has the opportunity to express
2980 the registered voter's opinion on whether the allocation of the tax should be changed; and
2981 (B) obtaining approval to change the allocation of the tax from a majority of the
2982 county's registered voters voting on changing the allocation of the tax.
2983 (b) (i) The opinion question required by Subsection (6)(a)(iii) shall state the allocations
2984 specified in the resolution:
2985 (A) adopted in accordance with Subsection (6)(a)(i); and
2986 (B) approved by the county legislative body in accordance with Subsection (6)(a)(ii).
2987 (ii) The election required by Subsection (6)(a)(iii) shall follow the procedures and
2988 requirements of Title 11, Chapter 14, Local Government Bonding Act.
2989 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), revenues generated by a tax
2990 under this part that are allocated for a purpose described in Subsection (2)(a)(i) or (ii) shall be
2991 transmitted:
2992 (A) by the commission;
2993 (B) to the county;
2994 (C) monthly; and
2995 (D) by electronic funds transfer.
2996 (ii) Notwithstanding Subsection (7)(a)(i), a county may request that the commission
2997 transfer the revenues described in Subsection (7)(a)(i):
2998 (A) directly to a public transit district:
2999 (I) organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act; and
3000 (II) designated by the county; and
3001 (B) by providing written notice to the commission:
3002 (I) requesting the revenues to be transferred directly to a public transit district as
3003 provided in Subsection (7)(a)(ii)(A); and

3004 (II) designating the public transit district to which the revenues are requested to be
3005 transferred.
3006 (b) Revenues generated by a tax under this part that are allocated for a purpose
3007 described in Subsection (2)(a)(iii) shall be:
3008 (i) deposited into the [State] Highway Projects Within Counties Fund created by
3009 Section 72-2-121.1 ; and
3010 (ii) expended as provided in Section 72-2-121.1 .
3011 (8) (a) (i) Except as provided in Subsection (8)(a)(ii), the tax authorized under this part
3012 shall be administered, collected, and enforced in accordance with:
3013 (A) the same procedures used to administer, collect, and enforce the tax under:
3014 (I) Part 1, Tax Collection; or
3015 (II) Part 2, Local Sales and Use Tax Act; and
3016 (B) Chapter 1, General Taxation Policies.
3017 (ii) Notwithstanding Subsection (8)(a)(i), a tax under this part is not subject to
3018 Subsections 59-12-205 (2) through (6).
3019 (b) (i) The commission may retain an amount of tax collected under this part of not to
3020 exceed the lesser of:
3021 (A) 1.5%; or
3022 (B) an amount equal to the cost to the commission of administering this part.
3023 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
3024 (A) placed in the Sales and Use Tax Administrative Fees Account; and
3025 (B) used as provided in Subsection 59-12-206 (2).
3026 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2008, a
3027 county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
3028 (A) on the first day of a calendar quarter; and
3029 (B) after a 90-day period beginning on the date the commission receives notice meeting
3030 the requirements of Subsection (9)(a)(ii) from the county.
3031 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
3032 (A) that the county will enact or repeal a tax under this part;
3033 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
3034 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and

3035 (D) if the county enacts the tax described in Subsection (9)(a)(ii)(A), the rate of the tax.
3036 (b) (i) The enactment of a tax shall take effect on the first day of the first billing period:
3037 (A) that begins after the effective date of the enactment of the tax; and
3038 (B) if the billing period for the transaction begins before the effective date of the
3039 enactment of the tax under Subsection (1).
3040 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
3041 (A) that began before the effective date of the repeal of the tax; and
3042 (B) if the billing period for the transaction begins before the effective date of the repeal
3043 of the tax imposed under Subsection (1).
3044 (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3045 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
3046 Subsection (9)(a)(i) takes effect:
3047 (A) on the first day of a calendar quarter; and
3048 (B) beginning 60 days after the effective date of the enactment or repeal under
3049 Subsection (9)(a)(i).
3050 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3051 commission may by rule define the term "catalogue sale."
3052 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
3053 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
3054 part for an annexing area, the enactment or repeal shall take effect:
3055 (A) on the first day of a calendar quarter; and
3056 (B) after a 90-day period beginning on the date the commission receives notice meeting
3057 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
3058 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
3059 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment
3060 or repeal of a tax under this part for the annexing area;
3061 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
3062 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
3063 (D) the rate of the tax described in Subsection (9)(d)(ii)(A).
3064 (e) (i) The enactment of a tax shall take effect on the first day of the first billing period:
3065 (A) that begins after the effective date of the enactment of the tax; and

3066 (B) if the billing period for the transaction begins before the effective date of the
3067 enactment of the tax under Subsection (1).
3068 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
3069 (A) that began before the effective date of the repeal of the tax; and
3070 (B) if the billing period for the transaction begins before the effective date of the repeal
3071 of the tax imposed under Subsection (1).
3072 (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3073 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
3074 Subsection (9)(d)(i) takes effect:
3075 (A) on the first day of a calendar quarter; and
3076 (B) beginning 60 days after the effective date of the enactment or repeal under
3077 Subsection (9)(d)(i).
3078 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3079 commission may by rule define the term "catalogue sale."
3080 (10) A county that imposed a sales and use tax under this section prior to July 1, 2007,
3081 may expend revenues allocated in the resolution for the purpose described in Subsection
3082 (2)(a)(iii) on local highway of regional significance projects in addition to or in substitution of
3083 state highway projects within the county.
3084 Section 19. Section 59-12-1703 is amended to read:
3085 59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
3086 tax revenues -- Administration, collection, and enforcement of tax by commission --
3087 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
3088 (1) (a) Subject to the other provisions of this part, a county legislative body may
3089 impose a sales and use tax of up to .25%:
3090 (i) on the transactions:
3091 (A) described in Subsection 59-12-103 (1); and
3092 (B) within the county, including the cities and towns within the county;
3093 (ii) for the purposes described in Subsection (4); and
3094 (iii) in addition to any other sales and use tax authorized under this chapter.
3095 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
3096 tax under this section on[: (i)] the sales and uses described in Section 59-12-104 to the extent

3097 the sales and uses are exempt from taxation under Section 59-12-104 [; and].
3098 [(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and
3099 food ingredients.]
3100 (c) For purposes of this Subsection (1), the location of a transaction shall be
3101 determined in accordance with Sections 59-12-211 through 59-12-215 .
3102 [(d) A county legislative body imposing a tax under this section shall impose the tax on
3103 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
3104 as part of a bundled transaction attributable to food and food ingredients and tangible personal
3105 property other than food and food ingredients.]
3106 (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
3107 county legislative body shall:
3108 (i) obtain approval from a majority of the members of the county legislative body to
3109 impose the tax; and
3110 (ii) submit an opinion question to the county's registered voters voting on the
3111 imposition of the tax so that each registered voter has the opportunity to express the registered
3112 voter's opinion on whether a tax should be imposed under this part.
3113 (b) (i) In a county of the first or second class, the opinion question required by
3114 Subsection (2)(a)(ii) shall state the following:
3115 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
3116 amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
3117 congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
3118 (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
3119 Subsection (2)(a)(ii) shall state the following:
3120 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
3121 amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
3122 corridor preservation, congestion mitigation, or to expand capacity for regionally significant
3123 transportation facilities?"
3124 (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
3125 shall be held:
3126 (i) at a regular general election conducted in accordance with the procedures and
3127 requirements of Title 20A, Election Code, governing regular elections; or

3128 (ii) at a special election called by the county legislative body that is:
3129 (A) held only on the date of a municipal general election as provided in Subsection
3130 20A-1-202 (1); and
3131 (B) authorized in accordance with the procedures and requirements of Section
3132 20A-1-203 .
3133 (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
3134 this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
3135 body shall:
3136 (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
3137 September 20, 2006;
3138 (ii) direct the county clerk to submit the opinion question required by Subsection
3139 (2)(a)(ii) during the November 7, 2006 general election; and
3140 (iii) hold the election required by this section on November 7, 2006.
3141 (3) If a county legislative body determines that a majority of the county's registered
3142 voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
3143 accordance with Subsection (2), the county legislative body shall impose the tax in accordance
3144 with this section.
3145 (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
3146 part may only be expended for:
3147 (i) a project or service:
3148 (A) relating to a regionally significant transportation facility;
3149 (B) for the portion of the project or service that is performed within the county;
3150 (C) for new capacity or congestion mitigation if the project or service is performed
3151 within a county:
3152 (I) of the first class;
3153 (II) of the second class; or
3154 (III) that is part of an area metropolitan planning organization;
3155 (D) (I) if the project or service is a principal arterial highway or a minor arterial
3156 highway in a county of the first or second class, that is part of the county and municipal master
3157 plan and part of:
3158 (Aa) the statewide long-range plan; or

3159 (Bb) the regional transportation plan of the area metropolitan planning organization if a
3160 metropolitan planning organization exists for the area; or
3161 (II) if the project or service is for a fixed guideway or an airport, that is part of the
3162 regional transportation plan of the area metropolitan planning organization if a metropolitan
3163 planning organization exists for the area; and
3164 (E) that is on a priority list:
3165 (I) created by the county's council of governments in accordance with Subsection (5);
3166 and
3167 (II) approved by the county legislative body in accordance with Subsection (6);
3168 (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
3169 Subsection (7)(b); or
3170 (iii) any debt service and bond issuance costs related to a project described in
3171 Subsection (4)(a)(i) or (ii).
3172 (b) In a county of the first or second class, a regionally significant transportation
3173 facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority
3174 designation on a Statewide Transportation Improvement Program and Transportation
3175 Improvement Program if the project or service described in Subsection (4)(a)(i) is:
3176 (i) a principal arterial highway as defined in Section 72-4-102.5 ;
3177 (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
3178 (iii) a major collector highway:
3179 (A) as defined in Section 72-4-102.5 ; and
3180 (B) in a rural area.
3181 (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
3182 revenues generated by the tax imposed under this section by any county of the first or second
3183 class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
3184 (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
3185 under this part do not include amounts retained by the commission in accordance with
3186 Subsection (8).
3187 (5) (a) The county's council of governments shall create a priority list of regionally
3188 significant transportation facility projects described in Subsection (4)(a) using the process
3189 described in Subsection (5)(b) and present the priority list to the county's legislative body for

3190 approval as described in Subsection (6).
3191 (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall
3192 establish a council of governments' endorsement process which includes prioritization and
3193 application procedures for use of the revenues a county will receive from a tax under this part.
3194 (6) (a) The council of governments shall submit the priority list described in
3195 Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
3196 the members of the county legislative body.
3197 (b) A county's council of governments may only submit one priority list per calendar
3198 year.
3199 (c) A county legislative body may only consider and approve one priority list per
3200 calendar year.
3201 (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
3202 Subsection (4) shall be transmitted:
3203 (A) by the commission;
3204 (B) to the county;
3205 (C) monthly; and
3206 (D) by electronic funds transfer.
3207 (ii) A county may request that the commission transfer a portion of the revenues
3208 described in Subsection (4):
3209 (A) directly to a public transit district:
3210 (I) organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act; and
3211 (II) designated by the county; and
3212 (B) by providing written notice to the commission:
3213 (I) requesting the revenues to be transferred directly to a public transit district as
3214 provided in Subsection (7)(a)(ii)(A); and
3215 (II) designating the public transit district to which the revenues are requested to be
3216 transferred.
3217 (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
3218 this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
3219 (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
3220 created by Section 72-2-117.5 ; and

3221 (B) expended as provided in Section 72-2-117.5 .
3222 (ii) In a county of the first class, revenues generated by a tax under this part that are
3223 allocated for a purpose described in Subsection (4)(a)(ii) shall be:
3224 (A) deposited in or transferred to the County of the First Class State Highway Projects
3225 Fund created by Section 72-2-121 ; and
3226 (B) expended as provided in Section 72-2-121 .
3227 (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
3228 shall be administered, collected, and enforced in accordance with:
3229 (A) the same procedures used to administer, collect, and enforce the tax under:
3230 (I) Part 1, Tax Collection; or
3231 (II) Part 2, Local Sales and Use Tax Act; and
3232 (B) Chapter 1, General Taxation Policies.
3233 (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
3234 (b) (i) The commission may retain an amount of tax collected under this part of not to
3235 exceed the lesser of:
3236 (A) 1.5%; or
3237 (B) an amount equal to the cost to the commission of administering this part.
3238 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
3239 (A) placed in the Sales and Use Tax Administrative Fees Account; and
3240 (B) used as provided in Subsection 59-12-206 (2).
3241 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
3242 county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
3243 or change shall take effect:
3244 (A) on the first day of a calendar quarter; and
3245 (B) after a 90-day period beginning on the date the commission receives notice meeting
3246 the requirements of Subsection (9)(a)(ii) from the county.
3247 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
3248 (A) that the county will enact, repeal, or change the rate of a tax under this part;
3249 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
3250 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
3251 (D) if the county enacts the tax or changes the rate of the tax described in Subsection

3252 (9)(a)(ii)(A), the rate of the tax.
3253 (b) (i) If the billing period for a transaction begins before the effective date of the
3254 enactment of the tax or tax rate increase under Subsection (1), the enactment of a tax or a tax
3255 rate increase shall take effect on the first day of the first billing period that begins after the
3256 effective date of the enactment of the tax or the tax rate increase.
3257 (ii) If the billing period for a transaction begins before the effective date of the repeal of
3258 the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
3259 decrease shall take effect on the first day of the last billing period that began before the
3260 effective date of the repeal of the tax or the tax rate decrease.
3261 (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3262 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
3263 a tax described in Subsection (9)(a)(i) takes effect:
3264 (A) on the first day of a calendar quarter; and
3265 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3266 rate of the tax under Subsection (9)(a)(i).
3267 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3268 commission may by rule define the term "catalogue sale."
3269 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
3270 on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
3271 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
3272 effect:
3273 (A) on the first day of a calendar quarter; and
3274 (B) after a 90-day period beginning on the date the commission receives notice meeting
3275 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
3276 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
3277 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
3278 repeal, or change in the rate of a tax under this part for the annexing area;
3279 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
3280 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
3281 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
3282 (9)(d)(ii)(A), the rate of the tax.

3283 (e) (i) If the billing period for a transaction begins before the effective date of the
3284 enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
3285 rate increase shall take effect on the first day of the first billing period that begins after the
3286 effective date of the enactment of the tax or the tax rate increase.
3287 (ii) If the billing period for a transaction begins before the effective date of the repeal of
3288 the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
3289 decrease shall take effect on the first day of the last billing period that began before the
3290 effective date of the repeal of the tax or the tax rate decrease.
3291 (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3292 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
3293 a tax described in Subsection (9)(d)(i) takes effect:
3294 (A) on the first day of a calendar quarter; and
3295 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3296 rate under Subsection (9)(d)(i).
3297 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3298 commission may by rule define the term "catalogue sale."
3299 Section 20. Section 59-12-1903 is amended to read:
3300 59-12-1903. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
3301 from the tax -- Administration, collection, and enforcement of tax by commission --
3302 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
3303 (1) (a) Subject to the other provisions of this section and except as provided in
3304 Subsection (2), beginning on January 1, 2009, a county legislative body of a county of the
3305 second class may impose a sales and use tax on the transactions:
3306 (i) described in Subsection 59-12-103 (1); and
3307 (ii) within the county, including the cities and towns within the county.
3308 (b) For purposes of Subsection (1)(a), a county legislative body may impose a tax at a
3309 rate of:
3310 (i) .10%, to be:
3311 (A) as determined by the county legislative body, deposited as provided in Subsection
3312 (4)(c)(i) into the County of the Second Class State Highway Projects Fund created by Section
3313 72-2-121.2 and expended as provided in Section 72-2-121.2 ;

3314 (B) as determined by the county legislative body, expended for a project or service
3315 relating to an airport facility:
3316 (I) if that airport facility is part of the regional transportation plan of the area
3317 metropolitan planning organization if a metropolitan planning organization exists for the area;
3318 and
3319 (II) for the portion of the project or service that is performed within the county; or
3320 (C) as determined by the county legislative body, deposited or expended for a
3321 combination of Subsections (1)(b)(i)(A) and (B); or
3322 (ii) .25%, to be expended as follows:
3323 (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
3324 Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
3325 provided in Section 72-2-121.2 ;
3326 (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
3327 Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
3328 distributed in accordance with Section 72-2-117.5 ; and
3329 (C) as determined by the county legislative body, .10% to be:
3330 (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
3331 State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
3332 Section 72-2-121.2 ;
3333 (II) expended for:
3334 (Aa) a state highway designated under Title 72, Chapter 4, Part 1, [Designation of]
3335 State Highways [Act];
3336 (Bb) a local highway of regional significance; or
3337 (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
3338 (III) expended for a project or service relating to a system for public transit for the
3339 portion of the project or service that is performed within the county;
3340 (IV) expended for a project or service relating to a fixed guideway for the portion of
3341 the project or service that is performed within the county;
3342 (V) expended for a project or service relating to an airport facility:
3343 (Aa) if that airport facility is part of the regional transportation plan of the area
3344 metropolitan planning organization if a metropolitan planning organization exists for the area;

3345 and
3346 (Bb) for the portion of the project or service that is performed within the county; or
3347 (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
3348 (V).
3349 (c) If a county legislative body imposes a tax under this part, the county legislative
3350 body may not impose a tax under Part 17, County Option Sales and Use Tax for Transportation
3351 Act.
3352 (d) For purposes of this Subsection (1), the location of a transaction shall be
3353 determined in accordance with Sections 59-12-211 through 59-12-215 .
3354 (2) [(a)] A county legislative body may not impose a tax under this part on[: (i)] the
3355 sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from
3356 taxation under Section 59-12-104 [; or].
3357 [(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and
3358 food ingredients.]
3359 [(b) A county legislative body imposing a tax under this part shall impose the tax on
3360 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
3361 as part of a bundled transaction attributable to food and food ingredients and tangible personal
3362 property other than food and food ingredients.]
3363 (3) To impose a tax under this part, a county legislative body shall obtain approval
3364 from a majority of the members of the county legislative body.
3365 (4) (a) Except as provided in Subsection (4)(b) or (c) or (6), the commission shall
3366 transmit revenues collected within a county from a tax under this part that are required to be
3367 expended for a purpose described in Subsection (1)(b)(ii)(C):
3368 (i) to the county legislative body;
3369 (ii) monthly; and
3370 (iii) by electronic funds transfer.
3371 (b) Except as provided in Subsection (6), the commission shall transfer the revenues
3372 described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
3373 Chapter 2a, Part 8, Public Transit District Act, if the county legislative body:
3374 (i) provides written notice to the commission requesting the transfer; and
3375 (ii) designates the public transit district to which the county legislative body requests

3376 the commission to transfer the revenues described in Subsection (4)(a).
3377 (c) Except as provided in Subsection (6), the commission shall deposit revenues
3378 collected within a county from a tax under this part that:
3379 (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
3380 the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
3381 (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into
3382 the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
3383 (iii) a county legislative body determines to expend for a purpose described in
3384 Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class State Highway
3385 Projects Fund created by Section 72-2-121.2 if the county legislative body provides written
3386 notice to the commission requesting the deposit.
3387 (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
3388 collect, and enforce a tax under this part in accordance with:
3389 (i) the same procedures used to administer, collect, and enforce the tax under:
3390 (A) Part 1, Tax Collection; or
3391 (B) Part 2, Local Sales and Use Tax Act; and
3392 (ii) Chapter 1, General Taxation Policies.
3393 (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
3394 (6) (a) The commission may retain an amount of tax collected under this part of not to
3395 exceed the lesser of:
3396 (i) 1.50%; or
3397 (ii) an amount equal to the cost to the commission of administering this part.
3398 (b) Any amount the commission retains under Subsection (6)(a) shall be:
3399 (i) deposited into the Sales and Use Tax Administrative Fees Account; and
3400 (ii) used as provided in Subsection 59-12-206 (2).
3401 (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
3402 a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
3403 repeal, or change shall take effect:
3404 (A) on the first day of a calendar quarter; and
3405 (B) after a 90-day period beginning on the date the commission receives notice meeting
3406 the requirements of Subsection (7)(a)(ii) from the county.

3407 (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
3408 (A) that the county will enact, repeal, or change the rate of a tax under this part;
3409 (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
3410 (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
3411 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
3412 (7)(a)(ii)(A), the rate of the tax.
3413 (b) (i) If the billing period for a transaction begins before the effective date of the
3414 enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
3415 tax rate increase shall take effect on the first day of the first billing period that begins after the
3416 effective date of the enactment of the tax or the tax rate increase.
3417 (ii) If the billing period for a transaction begins before the effective date of the repeal
3418 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
3419 decrease shall take effect on the first day of the last billing period that began before the
3420 effective date of the repeal of the tax or the tax rate decrease.
3421 (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
3422 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
3423 described in Subsection (7)(a)(i) takes effect:
3424 (A) on the first day of a calendar quarter; and
3425 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3426 rate of the tax under Subsection (7)(a)(i).
3427 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3428 commission may by rule define the term "catalogue sale."
3429 (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
3430 on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
3431 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
3432 effect:
3433 (A) on the first day of a calendar quarter; and
3434 (B) after a 90-day period beginning on the date the commission receives notice meeting
3435 the requirements of Subsection (7)(d)(ii) from the county that annexes the annexing area.
3436 (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
3437 (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment,

3438 repeal, or change in the rate of a tax under this part for the annexing area;
3439 (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
3440 (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
3441 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
3442 (7)(d)(ii)(A), the rate of the tax.
3443 (e) (i) If the billing period for a transaction begins before the effective date of the
3444 enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
3445 rate increase shall take effect on the first day of the first billing period that begins after the
3446 effective date of the enactment of the tax or the tax rate increase.
3447 (ii) If the billing period for a transaction begins before the effective date of the repeal
3448 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
3449 decrease shall take effect on the first day of the last billing period that began before the
3450 effective date of the repeal of the tax or the tax rate decrease.
3451 (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
3452 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
3453 described in Subsection (7)(d)(i) takes effect:
3454 (A) on the first day of a calendar quarter; and
3455 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3456 rate under Subsection (7)(d)(i).
3457 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3458 commission may by rule define the term "catalogue sale".
3459 Section 21. Section 59-12-2003 is amended to read:
3460 59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
3461 transit districts.
3462 (1) Subject to the other provisions of this section and except as provided in Subsection
3463 (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part within a city,
3464 town, or the unincorporated area of a county of the first or second class if, on January 1, 2008,
3465 there is a public transit district within any portion of that county of the first or second class.
3466 (2) The state may not impose a tax under this part within a county of the first or second
3467 class if within all of the cities, towns, and the unincorporated area of the county of the first or
3468 second class there is imposed a sales and use tax of:

3469 (a) .30% under Section 59-12-501 ;
3470 (b) .30% under Section 59-12-1001 ; or
3471 (c) .30% under Section 59-12-1503 .
3472 (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
3473 rate imposed within a city, town, or the unincorporated area of a county of the first or second
3474 class is a percentage equal to the difference between:
3475 (i) .30%; and
3476 (ii) (A) for a city within the county of the first or second class, the highest tax rate
3477 imposed within that city under:
3478 (I) Section 59-12-501 ;
3479 (II) Section 59-12-1001 ; or
3480 (III) Section 59-12-1503 ;
3481 (B) for a town within the county of the first or second class, the highest tax rate
3482 imposed within that town under:
3483 (I) Section 59-12-501 ;
3484 (II) Section 59-12-1001 ; or
3485 (III) Section 59-12-1503 ; or
3486 (C) for the unincorporated area of the county of the first or second class, the highest tax
3487 rate imposed within that unincorporated area under:
3488 (I) Section 59-12-501 ;
3489 (II) Section 59-12-1001 ; or
3490 (III) Section 59-12-1503 .
3491 (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
3492 a county of the first or second class, the highest tax rate imposed under Section 59-12-501 ,
3493 59-12-1001 , or 59-12-1503 within that city, town, or unincorporated area of the county of the
3494 first or second class is .30%, the state may not impose a tax under this part within that city,
3495 town, or unincorporated area.
3496 (4) [(a)] The state may not impose a tax under this part on:
3497 [(i)] (a) a transaction described in Subsection 59-12-103 (1)(d); or
3498 [(ii) except as provided in Subsection (4)(b), a transaction described in Subsection
3499 59-12-103 (2)(c); or]

3500 [(iii)] (b) the sales and uses described in Section 59-12-104 to the extent the sales and
3501 uses are exempt from taxation under Section 59-12-104 .
3502 [(b) The state shall impose a tax under this part on amounts paid or charged for food
3503 and food ingredients if the food and food ingredients are sold as part of a bundled transaction
3504 attributable to food and ingredients and tangible personal property other than food and food
3505 ingredients.]
3506 (5) For purposes of Subsection (1), the location of a transaction shall be determined in
3507 accordance with Sections 59-12-211 through 59-12-215 .
3508 (6) The commission shall distribute the revenues the state collects from the sales and
3509 use tax under this part, after subtracting amounts a seller retains in accordance with Section
3510 59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
3511 (a) within which the state imposes a tax under this part; and
3512 (b) in proportion to the revenues collected from the sales and use tax under this part
3513 within each city, town, and unincorporated area within which the state imposes a tax under this
3514 part.
3515 Section 22. Section 59-12-2103 is amended to read:
3516 59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
3517 from the tax -- Administration, collection, and enforcement of tax by commission --
3518 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
3519 (1) (a) Subject to the other provisions of this section and except as provided in
3520 Subsection (2), beginning on January 1, 2009 and ending on June 30, 2016, if a city or town
3521 receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or
3522 town would have received a tax revenue distribution of less than .75% of the taxable sales
3523 within the boundaries of the city or town but for Subsection 59-12-205 (3)(a), the city or town
3524 legislative body may impose a sales and use tax of up to .20% on the transactions:
3525 (i) described in Subsection 59-12-103 (1); and
3526 (ii) within the city or town.
3527 (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
3528 expend the revenues collected from the tax for the same purposes for which the city or town
3529 may expend the city's or town's general fund revenues.
3530 (c) For purposes of this Subsection (1), the location of a transaction shall be

3531 determined in accordance with Sections 59-12-211 through 59-12-215 .
3532 (2) [(a)] A city or town legislative body may not impose a tax under this section on[:
3533 (i)] the sales and uses described in Section 59-12-104 to the extent the sales and uses are
3534 exempt from taxation under Section 59-12-104 [; and].
3535 [(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and
3536 food ingredients.]
3537 [(b) A city or town legislative body imposing a tax under this section shall impose the
3538 tax on amounts paid or charged for food and food ingredients if the food and food ingredients
3539 are sold as part of a bundled transaction attributable to food and food ingredients and tangible
3540 personal property other than food and food ingredients.]
3541 (3) To impose a tax under this part, a city or town legislative body shall obtain
3542 approval from a majority of the members of the city or town legislative body.
3543 (4) The commission shall transmit revenues collected within a city or town from a tax
3544 under this part:
3545 (a) to the city or town legislative body;
3546 (b) monthly; and
3547 (c) by electronic funds transfer.
3548 (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
3549 collect, and enforce a tax under this part in accordance with:
3550 (i) the same procedures used to administer, collect, and enforce the tax under:
3551 (A) Part 1, Tax Collection; or
3552 (B) Part 2, Local Sales and Use Tax Act; and
3553 (ii) Chapter 1, General Taxation Policies.
3554 (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
3555 (6) (a) The commission may retain an amount of tax collected under this part of not to
3556 exceed the lesser of:
3557 (i) 1.5%; or
3558 (ii) an amount equal to the cost to the commission of administering this part.
3559 (b) Any amount the commission retains under Subsection (6)(a) shall be:
3560 (i) deposited into the Sales and Use Tax Administrative Fees Account; and
3561 (ii) used as provided in Subsection 59-12-206 (2).

3562 (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
3563 a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
3564 repeal, or change shall take effect:
3565 (A) on the first day of a calendar quarter; and
3566 (B) after a 90-day period beginning on the date the commission receives notice meeting
3567 the requirements of Subsection (7)(a)(i) from the city or town.
3568 (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
3569 (A) that the city or town will enact or repeal a tax or change the rate of the tax under
3570 this part;
3571 (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
3572 (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
3573 (D) if the city or town enacts the tax or changes the rate of the tax described in
3574 Subsection (7)(a)(ii)(A), the rate of the tax.
3575 (b) (i) If the billing period for a transaction begins before the enactment of the tax or
3576 the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall
3577 take effect on the first day of the first billing period that begins after the effective date of the
3578 enactment of the tax or the tax rate increase.
3579 (ii) If the billing period for a transaction begins before the effective date of the repeal
3580 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
3581 decrease shall take effect on the first day of the last billing period that began before the
3582 effective date of the repeal of the tax or the tax rate decrease.
3583 (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
3584 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
3585 described in Subsection (7)(a)(i) takes effect:
3586 (A) on the first day of a calendar quarter; and
3587 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3588 rate of the tax under Subsection (7)(a)(i).
3589 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3590 commission may by rule define the term "catalogue sale."
3591 (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
3592 on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the

3593 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
3594 effect:
3595 (A) on the first day of a calendar quarter; and
3596 (B) after a 90-day period beginning on the date the commission receives notice meeting
3597 the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
3598 (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
3599 (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
3600 enactment, repeal, or change in the rate of a tax under this part for the annexing area;
3601 (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
3602 (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
3603 (D) if the city or town enacts the tax or changes the rate of the tax described in
3604 Subsection (7)(d)(ii)(A), the rate of the tax.
3605 (e) (i) If the billing period for a transaction begins before the effective date of the
3606 enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
3607 rate increase shall take effect on the first day of the first billing period that begins after the
3608 effective date of the enactment of the tax or the tax rate increase.
3609 (ii) If the billing period for a transaction begins before the effective date of the repeal
3610 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
3611 decrease shall take effect on the first day of the last billing period that began before the
3612 effective date of the repeal of the tax or the tax rate decrease.
3613 (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
3614 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
3615 described in Subsection (7)(d)(i) takes effect:
3616 (A) on the first day of a calendar quarter; and
3617 (B) beginning 60 days after the effective date of the enactment, repeal, or change under
3618 Subsection (7)(d)(i).
3619 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3620 commission may by rule define the term "catalogue sale".
3621 Section 23. Effective date -- Retrospective operation.
3622 (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2009.
3623 (2) The amendments to Sections 59-10-1102.1 and 59-10-1108 have retrospective

3624 operation for a taxable year beginning on or after January 1, 2009.




Legislative Review Note
as of 2-24-09 10:19 AM

Office of Legislative Research and General Counsel