Download Zipped Enrolled WordPerfect SB0036.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 36 Enrolled

             1     

SALES AND USE TAX AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Wayne A. Harper

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Sales and Use Tax Act and related provisions.
             10      Highlighted Provisions:
             11          This bill:
             12          .    addresses an exemption from certain penalties relating to sales and use taxes;
             13          .    modifies and repeals definitions;
             14          .    provides that amounts paid or charged for prepaid telephone calling cards are not
             15      subject to state and local sales and use taxes;
             16          .    repeals a sales and use tax exemption for sales of telecommunications service
             17      charged to a prepaid telephone calling card;
             18          .    provides a requirement that to be eligible for exemption from state and local sales
             19      and use taxes, certain machinery, equipment, or repair or replacement parts be used
             20      in an establishment or facility in the state;
             21          .    repeals obsolete language;
             22          .    addresses a state sales and use tax exemption for certain accommodations and
             23      services taxed by the Navajo Nation;
             24          .    addresses a refund for overpayment of a sales and use tax;
             25          .    addresses a seller's or certified service provider's reliance on State Tax Commission
             26      information;
             27          .    addresses the transactions that are taxable or exempt under Title 59, Chapter 12,
             28      Part 2, Local Sales and Use Tax Act;
             29          .    addresses the determination of the location of certain transactions;


             30          .    provides that the motor vehicle rental tax is not subject to certain provisions
             31      designating the state sales and use tax for particular purposes;
             32          .    conforms terminology in the emergency telephone service charge for 911
             33      administered by the State Tax Commission to terminology in the Sales and Use Tax
             34      Act; and
             35          .    makes technical changes.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          This bill takes effect on July 1, 2009.
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          59-1-401, as last amended by Laws of Utah 2008, Chapter 382
             43          59-1-403, as last amended by Laws of Utah 2008, Chapters 3, 382, and 384
             44          59-12-102, as last amended by Laws of Utah 2008, Chapters 3, 28, 286, 323, 382, and
             45      384
             46          59-12-103, as last amended by Laws of Utah 2008, Second Special Session, Chapter 5
             47          59-12-104, as last amended by Laws of Utah 2008, Second Special Session, Chapter 2
             48          59-12-104.2, as last amended by Laws of Utah 2008, Chapter 286
             49          59-12-104.5, as last amended by Laws of Utah 2008, Chapter 384
             50          59-12-105, as last amended by Laws of Utah 2008, Chapter 384
             51          59-12-110, as last amended by Laws of Utah 2008, Chapters 382 and 384
             52          59-12-125, as enacted by Laws of Utah 2008, Chapter 384
             53          59-12-204, as last amended by Laws of Utah 2006, Chapter 253
             54          59-12-205, as last amended by Laws of Utah 2008, Chapter 384
             55          59-12-215, as renumbered and amended by Laws of Utah 2008, Chapter 384
             56          59-12-216, as enacted by Laws of Utah 2008, Chapter 384
             57          59-12-304, as enacted by Laws of Utah 2008, Chapter 384


             58          59-12-357, as enacted by Laws of Utah 2008, Chapter 384
             59          59-12-406, as enacted by Laws of Utah 2008, Chapter 384
             60          59-12-506, as enacted by Laws of Utah 2008, Chapter 384
             61          59-12-605, as enacted by Laws of Utah 2008, Chapter 384
             62          59-12-707, as enacted by Laws of Utah 2008, Chapter 384
             63          59-12-808, as enacted by Laws of Utah 2008, Chapter 384
             64          59-12-1004, as enacted by Laws of Utah 2008, Chapter 384
             65          59-12-1104, as enacted by Laws of Utah 2008, Chapter 384
             66          59-12-1201, as last amended by Laws of Utah 2008, Chapter 384
             67          59-12-1202, as enacted by Laws of Utah 2008, Chapter 384
             68          59-12-1304, as enacted by Laws of Utah 2008, Chapter 384
             69          59-12-1405, as enacted by Laws of Utah 2008, Chapter 384
             70          59-12-1505, as enacted by Laws of Utah 2008, Chapter 384
             71          59-12-1706, as enacted by Laws of Utah 2008, Chapter 384
             72          59-12-1804, as enacted by Laws of Utah 2008, Chapter 384
             73          59-12-1904, as enacted by Laws of Utah 2008, Chapter 286
             74          59-12-2005, as enacted by Laws of Utah 2008, Chapter 286
             75          59-12-2104, as enacted by Laws of Utah 2008, Chapter 323
             76          69-2-5, as last amended by Laws of Utah 2008, Chapters 360 and 384
             77     
             78      Be it enacted by the Legislature of the state of Utah:
             79          Section 1. Section 59-1-401 is amended to read:
             80           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             81      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             82      interest.
             83          (1) As used in this section:
             84          (a) (i) "Nonqualifying obligation" means a charge, fee, payment, or tax administered
             85      by the commission.


             86          (ii) "Nonqualifying obligation" does not include:
             87          (A) beginning on the phase I activation date, a phase I obligation; or
             88          (B) beginning on the phase II activation date, a phase II obligation.
             89          (b) "Phase I activation date" means the earlier of:
             90          (i) the day on which the commission's GenTax system is activated to administer all
             91      phase I obligations; or
             92          (ii) May 1, 2008.
             93          (c) "Phase I obligation" means:
             94          (i) a fee under Section 19-6-808 ;
             95          (ii) a tax under Chapter 10, Part 1, Determination and Reporting of Tax Liability and
             96      Information;
             97          (iii) a tax under Chapter 10, Part 2, Trusts and Estates;
             98          (iv) a tax under Chapter 10, Part 12, Single Rate Individual Income Tax Act; or
             99          (v) a tax under Chapter 12, Sales and Use Tax Act.
             100          (d) "Phase II activation date" means the earlier of:
             101          (i) the day on which the commission's GenTax system is activated to administer all
             102      phase II obligations; or
             103          (ii) May 4, 2009.
             104          (e) (i) "Phase II obligation" means:
             105          (A) a payment under Chapter 6, Mineral Production Tax Withholding;
             106          (B) a tax under Chapter 7, Corporate Franchise and Income Taxes;
             107          (C) a payment under Chapter 10, Part 4, Withholding of Tax; or
             108          (D) a tax paid on a return filed in accordance with Section 59-10-507 .
             109          (ii) "Phase II obligation" does not include a payment of estimated tax under Section
             110      59-7-504 .
             111          (2) (a) The due date for filing a return is:
             112          (i) if the person filing the return is not allowed by law an extension of time for filing
             113      the return, the day on which the return is due as provided by law; or


             114          (ii) if the person filing the return is allowed by law an extension of time for filing the
             115      return, the last day of that extension of time.
             116          (b) (i) A penalty in the amount described in Subsection (2)(b)(ii) is imposed if:
             117          (A) a person is required to file a return with respect to a nonqualifying obligation; and
             118          (B) the person described in Subsection (2)(b)(i)(A) files the return after the due date
             119      described in Subsection (2)(a).
             120          (ii) For purposes of Subsection (2)(b)(i), the penalty is an amount equal to the greater
             121      of:
             122          (A) $20; or
             123          (B) 10% of the unpaid nonqualifying obligation due on the return.
             124          (c) (i) A penalty in the amount described in Subsection (2)(c)(ii) is imposed if a
             125      person:
             126          (A) (I) is required to file a return:
             127          (Aa) on or after the phase I activation date; and
             128          (Bb) with respect to a phase I obligation; and
             129          (II) files the return after the due date described in Subsection (2)(a); or
             130          (B) (I) is required to file a return:
             131          (Aa) on or after the phase II activation date; and
             132          (Bb) with respect to a phase II obligation; and
             133          (II) files the return after the due date described in Subsection (2)(a).
             134          (ii) For purposes of Subsection (2)(c)(i), the penalty is an amount equal to the greater
             135      of:
             136          (A) $20; or
             137          (B) (I) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             138      the return is filed no later than five days after the due date described in Subsection (2)(a);
             139          (II) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             140      return is filed more than five days after the due date but no later than 15 days after the due
             141      date described in Subsection (2)(a); or


             142          (III) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             143      the return is filed more than 15 days after the due date described in Subsection (2)(a).
             144          (d) This Subsection (2) does not apply to:
             145          (i) an amended return; or
             146          (ii) a return with no tax due.
             147          (3) (a) If a person fails to pay a tax, fee, or charge due, the person is subject to a
             148      penalty as provided in this Subsection (3).
             149          (b) (i) A penalty in the amount described in Subsection (3)(b)(ii) is imposed if:
             150          (A) a person files a return with respect to a nonqualifying obligation on or before the
             151      due date for filing a return described in Subsection (2)(a), but fails to pay the nonqualifying
             152      obligation due on the return on or before that due date;
             153          (B) a person:
             154          (I) is subject to a penalty under Subsection (2)(b); and
             155          (II) fails to pay a nonqualifying obligation due on a return within a 90-day period after
             156      the due date for filing a return described in Subsection (2)(a);
             157          (C) a person:
             158          (I) is mailed a notice of deficiency; and
             159          (II) within a 30-day period after the day on which the notice of deficiency described in
             160      Subsection (3)(b)(i)(C)(I) is mailed:
             161          (Aa) does not file a petition for redetermination or a request for agency action; and
             162          (Bb) fails to pay a nonqualifying obligation due on a return;
             163          (D) (I) the commission:
             164          (Aa) issues an order constituting final agency action resulting from a timely filed
             165      petition for redetermination or a timely filed request for agency action; or
             166          (Bb) is considered to have denied a request for reconsideration under Subsection
             167      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             168      request for agency action; and
             169          (II) a person fails to pay a nonqualifying obligation due on a return within a 30-day


             170      period after the date the commission:
             171          (Aa) issues the order constituting final agency action described in Subsection
             172      (3)(b)(i)(D)(I)(Aa); or
             173          (Bb) is considered to have denied the request for reconsideration described in
             174      Subsection (3)(b)(i)(D)(I)(Bb); or
             175          (E) a person fails to pay a nonqualifying obligation within a 30-day period after the
             176      date of a final judicial decision resulting from a timely filed petition for judicial review.
             177          (ii) For purposes of Subsection (3)(b)(i), the penalty is an amount equal to the greater
             178      of:
             179          (A) $20; or
             180          (B) 10% of the unpaid nonqualifying obligation due on the return.
             181          (c) (i) This Subsection (3)(c) applies to a penalty:
             182          (A) imposed on or after the phase I activation date with respect to a phase I obligation;
             183      or
             184          (B) imposed on or after the phase II activation date with respect to a phase II
             185      obligation.
             186          (ii) (A) The penalty described in Subsection (3)(c)(ii)(B) applies if a person:
             187          (I) with respect to a phase I obligation:
             188          (Aa) files a return on or before the due date for filing a return described in Subsection
             189      (2)(a); and
             190          (Bb) fails to pay the phase I obligation due on the return on or before the due date
             191      described in Subsection (2)(a); or
             192          (II) with respect to a phase II obligation:
             193          (Aa) files a return on or before the due date for filing a return described in Subsection
             194      (2)(a); and
             195          (Bb) fails to pay the phase II obligation due on the return on or before the due date
             196      described in Subsection (2)(a).
             197          (B) For purposes of Subsection (3)(c)(ii)(A), the penalty is an amount equal to the


             198      greater of:
             199          (I) $20; or
             200          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             201      the phase I obligation or phase II obligation due on the return is paid no later than five days
             202      after the due date for filing a return described in Subsection (2)(a);
             203          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             204      phase I obligation or phase II obligation due on the return is paid more than five days after the
             205      due date for filing a return described in Subsection (2)(a) but no later than 15 days after that
             206      due date; or
             207          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             208      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             209      the due date for filing a return described in Subsection (2)(a).
             210          (iii) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iii)(B) if the
             211      person:
             212          (I) is subject to a penalty under Subsection (2)(c); and
             213          (II) fails to pay a phase I obligation or phase II obligation due on a return within a
             214      90-day period after the due date for filing a return described in Subsection (2)(a).
             215          (B) For purposes of Subsection (3)(c)(iii)(A), the penalty is an amount equal to the
             216      greater of:
             217          (I) $20; or
             218          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             219      the phase I obligation or phase II obligation due on the return is paid no later than five days
             220      after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II);
             221          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             222      phase I obligation or phase II obligation due on the return is paid more than five days after the
             223      last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II) but no later than 15
             224      days after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II); or
             225          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if


             226      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             227      the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II).
             228          (iv) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iv)(B) if the
             229      person:
             230          (I) is mailed a notice of deficiency; and
             231          (II) within a 30-day period after the day on which the notice of deficiency described in
             232      Subsection (3)(c)(iv)(A)(I) is mailed:
             233          (Aa) does not file a petition for redetermination or a request for agency action; and
             234          (Bb) fails to pay a phase I obligation or phase II obligation due on a return.
             235          (B) For purposes of Subsection (3)(c)(iv)(A), the penalty is an amount equal to the
             236      greater of:
             237          (I) $20; or
             238          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             239      the phase I obligation or phase II obligation due on the return is paid no later than five days
             240      after the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II);
             241          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             242      phase I obligation or phase II obligation due on the return is paid more than five days after the
             243      last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II) but no later than 15 days
             244      after the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II); or
             245          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             246      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             247      the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II).
             248          (v) (A) A person is subject to a penalty as provided in Subsection (3)(c)(v)(B) if:
             249          (I) the commission:
             250          (Aa) issues an order constituting final agency action resulting from a timely filed
             251      petition for redetermination or a timely filed request for agency action; or
             252          (Bb) is considered to have denied a request for reconsideration under Subsection
             253      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed


             254      request for agency action; and
             255          (II) the person fails to pay a phase I obligation or phase II obligation due on a return
             256      within a 30-day period after the date the commission:
             257          (Aa) issues the order constituting final agency action described in Subsection
             258      (3)(c)(v)(A)(I)(Aa); or
             259          (Bb) is considered to have denied the request for reconsideration described in
             260      Subsection (3)(c)(v)(A)(I)(Bb).
             261          (B) For purposes of Subsection (3)(c)(v)(A), the penalty is an amount equal to the
             262      greater of:
             263          (I) $20; or
             264          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             265      the phase I obligation or phase II obligation due on the return is paid no later than five days
             266      after the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II);
             267          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             268      phase I obligation or phase II obligation due on the return is paid more than five days after the
             269      last day of the 30-day period described in Subsection (3)(c)(v)(A)(II) but no later than 15 days
             270      after the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II); or
             271          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             272      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             273      the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II).
             274          (vi) (A) A person is subject to a penalty as provided in Subsection (3)(c)(vi)(B) if
             275      within a 30-day period after the date of a final judicial decision resulting from a timely filed
             276      petition for judicial review, the person fails to pay a phase I obligation or phase II obligation.
             277          (B) For purposes of Subsection (3)(c)(vi)(A), the penalty is an amount equal to the
             278      greater of:
             279          (I) $20; or
             280          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             281      the phase I obligation or phase II obligation due on the return is paid no later than five days


             282      after the last day of the 30-day period described in Subsection (3)(c)(vi)(A);
             283          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             284      phase I obligation or phase II obligation due on the return is paid more than five days after the
             285      last day of the 30-day period described in Subsection (3)(c)(vi)(A) but no later than 15 days
             286      after the last day of the 30-day period described in Subsection (3)(c)(vi)(A); or
             287          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if
             288      the phase I obligation or phase II obligation due on the return is paid more than 15 days after
             289      the last day of the 30-day period described in Subsection (3)(c)(vi)(A).
             290          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax
             291      or quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 ,
             292      there shall be added a penalty in an amount determined by applying the interest rate provided
             293      under Section 59-1-402 plus four percentage points to the amount of the underpayment for the
             294      period of the underpayment.
             295          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             296      excess of the required installment over the amount, if any, of the installment paid on or before
             297      the due date for the installment.
             298          (ii) The period of the underpayment shall run from the due date for the installment to
             299      whichever of the following dates is the earlier:
             300          (A) the original due date of the tax return, without extensions, for the taxable year; or
             301          (B) with respect to any portion of the underpayment, the date on which that portion is
             302      paid.
             303          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             304      against unpaid required installments in the order in which the installments are required to be
             305      paid.
             306          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             307      person allowed by law an extension of time for filing a corporate franchise or income tax
             308      return under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax
             309      return under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount


             310      described in Subsection (5)(b) if, on or before the day on which the return is due as provided
             311      by law, not including the extension of time, the person fails to pay:
             312          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             313      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b);
             314      or
             315          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             316      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             317          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             318      extension of time for filing the return is an amount equal to 2% of the unpaid tax due on the
             319      return.
             320          (6) If a person does not file a return within an extension of time allowed by Section
             321      59-7-505 or 59-10-516 , the person:
             322          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             323          (b) is subject to a penalty in an amount equal to the sum of:
             324          (i) a late file penalty in an amount equal to the greater of:
             325          (A) $20; or
             326          (B) 10% of the unpaid tax due on the return; and
             327          (ii) a late pay penalty in an amount equal to the greater of:
             328          (A) $20; or
             329          (B) 10% of the unpaid tax due on the return.
             330          (7) (a) Additional penalties for underpayments of tax are as provided in this
             331      Subsection (7)(a).
             332          (i) Except as provided in Subsection (7)(c), if any underpayment of tax is due to
             333      negligence, the penalty is 10% of the underpayment.
             334          (ii) Except as provided in Subsection (7)(d), if any underpayment of tax is due to
             335      intentional disregard of law or rule, the penalty is 15% of the underpayment.
             336          (iii) For intent to evade the tax, the penalty is the greater of $500 per period or 50% of
             337      the tax due.


             338          (iv) If the underpayment is due to fraud with intent to evade the tax, the penalty is the
             339      greater of $500 per period or 100% of the underpayment.
             340          (b) If the commission determines that a person is liable for a penalty imposed under
             341      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the taxpayer of the proposed
             342      penalty.
             343          (i) The notice of proposed penalty shall:
             344          (A) set forth the basis of the assessment; and
             345          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             346          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             347      penalty is proposed may:
             348          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             349      or
             350          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             351          (iii) Any person against whom a penalty has been proposed in accordance with this
             352      Subsection (7) may contest the proposed penalty by filing a petition for an adjudicative
             353      proceeding with the commission.
             354          (iv) (A) If the commission determines that a person is liable for a penalty under this
             355      Subsection (7), the commission shall assess the penalty and give notice and demand for
             356      payment.
             357          (B) The notice and demand for payment described in Subsection (7)(b)(iv)(A) shall be
             358      mailed by certified mail, postage prepaid, to the person's last-known address.
             359          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             360      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             361          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             362      determining that:
             363          (A) the seller meets one or more of the criteria described in Subsection
             364      59-12-107 (1)(a); and
             365          (B) the commission or a county, city, or town may require the seller to collect a tax


             366      under [Subsection] Subsections 59-12-103 (2)(a) [or (b)] through (d); or
             367          (ii) the commission issues a final unappealable administrative order determining that:
             368          (A) the seller meets one or more of the criteria described in Subsection
             369      59-12-107 (1)(a); and
             370          (B) the commission or a county, city, or town may require the seller to collect a tax
             371      under [Subsection] Subsections 59-12-103 (2)(a) [or (b)] through (d).
             372          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             373      subject to the penalty under Subsection (7)(a)(ii) if:
             374          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             375      determining that:
             376          (I) the seller meets one or more of the criteria described in Subsection
             377      59-12-107 (1)(a); and
             378          (II) the commission or a county, city, or town may require the seller to collect a tax
             379      under [Subsection] Subsections 59-12-103 (2)(a) [or (b)] through (d); or
             380          (B) the commission issues a final unappealable administrative order determining that:
             381          (I) the seller meets one or more of the criteria described in Subsection
             382      59-12-107 (1)(a); and
             383          (II) the commission or a county, city, or town may require the seller to collect a tax
             384      under [Subsection] Subsections 59-12-103 (2)(a) [or (b)] through (d); and
             385          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             386      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             387      establishment of new law.
             388          (8) Except as provided in Section 59-12-105 , the penalty for failure to file an
             389      information return, information report, or a complete supporting schedule is $50 for each
             390      information return, information report, or supporting schedule up to a maximum of $1,000.
             391          (9) If any taxpayer, in furtherance of a frivolous position, has a prima facie intent to
             392      delay or impede administration of the tax law and files a purported return that fails to contain
             393      information from which the correctness of reported tax liability can be determined or that


             394      clearly indicates that the tax liability shown must be substantially incorrect, the penalty is
             395      $500.
             396          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             397      Subsection 59-12-108 (1)(a)(ii):
             398          (i) is subject to a penalty described in Subsection (2); and
             399          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             400      allowable under Subsection 59-12-108 (2).
             401          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             402      required by Subsection 59-12-108 (1)(a)(ii)(B):
             403          (i) is subject to a penalty described in Subsection (2); and
             404          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             405      allowable under Subsection 59-12-108 (2).
             406          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that
             407      person:
             408          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             409      following documents:
             410          (A) a return;
             411          (B) an affidavit;
             412          (C) a claim; or
             413          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             414          (ii) knows or has reason to believe that the document described in Subsection
             415      (11)(a)(i) will be used in connection with any material matter administered by the
             416      commission; and
             417          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             418      with any material matter administered by the commission, would result in an understatement
             419      of another person's liability for a tax, fee, or charge administered by the commission.
             420          (b) The following acts apply to Subsection (11)(a)(i):
             421          (i) preparing any portion of a document described in Subsection (11)(a)(i);


             422          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             423          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             424          (iv) advising in the preparation or presentation of any portion of a document described
             425      in Subsection (11)(a)(i);
             426          (v) aiding in the preparation or presentation of any portion of a document described in
             427      Subsection (11)(a)(i);
             428          (vi) assisting in the preparation or presentation of any portion of a document described
             429      in Subsection (11)(a)(i); or
             430          (vii) counseling in the preparation or presentation of any portion of a document
             431      described in Subsection (11)(a)(i).
             432          (c) For purposes of Subsection (11)(a), the penalty:
             433          (i) shall be imposed by the commission;
             434          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             435      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             436          (iii) is in addition to any other penalty provided by law.
             437          (d) The commission may seek a court order to enjoin a person from engaging in
             438      conduct that is subject to a penalty under this Subsection (11).
             439          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             440      commission may make rules prescribing the documents that are similar to Subsections
             441      (11)(a)(i)(A) through (C).
             442          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             443      provided in Subsections (12)(b) through (e).
             444          (b) (i) Any person who is required by this title or any laws the commission administers
             445      or regulates to register with or obtain a license or permit from the commission, who operates
             446      without having registered or secured a license or permit, or who operates when the registration,
             447      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             448          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             449      penalty may not:


             450          (A) be less than $500; or
             451          (B) exceed $1,000.
             452          (c) (i) Any person who, with intent to evade any tax or requirement of this title or any
             453      lawful requirement of the commission, fails to make, render, sign, or verify any return or to
             454      supply any information within the time required by law, or who makes, renders, signs, or
             455      verifies any false or fraudulent return or statement, or who supplies any false or fraudulent
             456      information, is guilty of a third degree felony.
             457          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             458      penalty may not:
             459          (A) be less than $1,000; or
             460          (B) exceed $5,000.
             461          (d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax or
             462      the payment of a tax is, in addition to other penalties provided by law, guilty of a second
             463      degree felony.
             464          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             465      penalty may not:
             466          (A) be less than $1,500; or
             467          (B) exceed $25,000.
             468          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             469          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             470      documents:
             471          (I) a return;
             472          (II) an affidavit;
             473          (III) a claim; or
             474          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             475          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
             476      Subsection (12)(e)(i)(A):
             477          (I) is false or fraudulent as to any material matter; and


             478          (II) could be used in connection with any material matter administered by the
             479      commission.
             480          (ii) The following acts apply to Subsection (12)(e)(i):
             481          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             482          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             483          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             484          (D) advising in the preparation or presentation of any portion of a document described
             485      in Subsection (12)(e)(i)(A);
             486          (E) aiding in the preparation or presentation of any portion of a document described in
             487      Subsection (12)(e)(i)(A);
             488          (F) assisting in the preparation or presentation of any portion of a document described
             489      in Subsection (12)(e)(i)(A); or
             490          (G) counseling in the preparation or presentation of any portion of a document
             491      described in Subsection (12)(e)(i)(A).
             492          (iii) This Subsection (12)(e) applies:
             493          (A) regardless of whether the person for which the document described in Subsection
             494      (12)(e)(i)(A) is prepared or presented:
             495          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             496          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
             497          (B) in addition to any other penalty provided by law.
             498          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             499      penalty may not:
             500          (A) be less than $1,500; or
             501          (B) exceed $25,000.
             502          (v) The commission may seek a court order to enjoin a person from engaging in
             503      conduct that is subject to a penalty under this Subsection (12)(e).
             504          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             505      the commission may make rules prescribing the documents that are similar to Subsections


             506      (12)(e)(i)(A)(I) through (III).
             507          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             508      the later of six years:
             509          (i) from the date the tax should have been remitted; or
             510          (ii) after the day on which the person commits the criminal offense.
             511          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             512      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             513      this part.
             514          Section 2. Section 59-1-403 is amended to read:
             515           59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
             516          (1) (a) Any of the following may not divulge or make known in any manner any
             517      information gained by that person from any return filed with the commission:
             518          (i) a tax commissioner;
             519          (ii) an agent, clerk, or other officer or employee of the commission; or
             520          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
             521      town.
             522          (b) An official charged with the custody of a return filed with the commission is not
             523      required to produce the return or evidence of anything contained in the return in any action or
             524      proceeding in any court, except:
             525          (i) in accordance with judicial order;
             526          (ii) on behalf of the commission in any action or proceeding under:
             527          (A) this title; or
             528          (B) other law under which persons are required to file returns with the commission;
             529          (iii) on behalf of the commission in any action or proceeding to which the commission
             530      is a party; or
             531          (iv) on behalf of any party to any action or proceeding under this title if the report or
             532      facts shown by the return are directly involved in the action or proceeding.
             533          (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may


             534      admit in evidence, any portion of a return or of the facts shown by the return, as are
             535      specifically pertinent to the action or proceeding.
             536          (2) This section does not prohibit:
             537          (a) a person or that person's duly authorized representative from receiving a copy of
             538      any return or report filed in connection with that person's own tax;
             539          (b) the publication of statistics as long as the statistics are classified to prevent the
             540      identification of particular reports or returns; and
             541          (c) the inspection by the attorney general or other legal representative of the state of
             542      the report or return of any taxpayer:
             543          (i) who brings action to set aside or review a tax based on the report or return;
             544          (ii) against whom an action or proceeding is contemplated or has been instituted under
             545      this title; or
             546          (iii) against whom the state has an unsatisfied money judgment.
             547          (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
             548      commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
             549      Rulemaking Act, provide for a reciprocal exchange of information with:
             550          (i) the United States Internal Revenue Service; or
             551          (ii) the revenue service of any other state.
             552          (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             553      corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
             554      Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
             555      other written statements with the federal government, any other state, any of the political
             556      subdivisions of another state, or any political subdivision of this state, except as limited by
             557      Sections 59-12-209 and 59-12-210 , if the political subdivision, other state, or the federal
             558      government grant substantially similar privileges to this state.
             559          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             560      corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
             561      Utah Administrative Rulemaking Act, provide for the issuance of information concerning the


             562      identity and other information of taxpayers who have failed to file tax returns or to pay any tax
             563      due.
             564          (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
             565      Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
             566      requested by the executive secretary, any records, returns, or other information filed with the
             567      commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
             568      regarding the environmental assurance program participation fee.
             569          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
             570      provide that person sales and purchase volume data reported to the commission on a report,
             571      return, or other information filed with the commission under:
             572          (i) Chapter 13, Part 2, Motor Fuel; or
             573          (ii) Chapter 13, Part 4, Aviation Fuel.
             574          (f) Notwithstanding Subsection (1), upon request from a tobacco product
             575      manufacturer, as defined in Section 59-22-202 , the commission shall report to the
             576      manufacturer:
             577          (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             578      manufacturer and reported to the commission for the previous calendar year under Section
             579      59-14-407 ; and
             580          (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             581      manufacturer for which a tax refund was granted during the previous calendar year under
             582      Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
             583          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
             584      distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
             585      prohibited from selling cigarettes to consumers within the state under Subsection
             586      59-14-210 (2).
             587          (h) Notwithstanding Subsection (1), the commission may:
             588          (i) provide to the Division of Consumer Protection within the Department of
             589      Commerce and the attorney general data:


             590          (A) reported to the commission under Section 59-14-212 ; or
             591          (B) related to a violation under Section 59-14-211 ; and
             592          (ii) upon request provide to any person data reported to the commission under
             593      Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
             594          (i) Notwithstanding Subsection (1), the commission shall, at the request of a
             595      committee of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of
             596      Planning and Budget, provide to the committee or office the total amount of revenues
             597      collected by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the
             598      time period specified by the committee or office.
             599          (j) Notwithstanding Subsection (1), the commission shall at the request of the
             600      Legislature provide to the Legislature the total amount of sales or uses exempt under
             601      Subsection 59-12-104 [(46)](44) reported to the commission in accordance with Section
             602      59-12-105 .
             603          (k) Notwithstanding Subsection (1), the commission shall make the directory required
             604      by Section 59-14-603 available for public inspection.
             605          (l) Notwithstanding Subsection (1), the commission may share information with
             606      federal, state, or local agencies as provided in Subsection 59-14-606 (3).
             607          (m) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
             608      Recovery Services within the Department of Human Services any relevant information
             609      obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a
             610      taxpayer who has become obligated to the Office of Recovery Services.
             611          (ii) The information described in Subsection (3)(m)(i) may be provided by the Office
             612      of Recovery Services to any other state's child support collection agency involved in enforcing
             613      that support obligation.
             614          (n) (i) Notwithstanding Subsection (1), upon request from the state court
             615      administrator, the commission shall provide to the state court administrator, the name,
             616      address, telephone number, county of residence, and Social Security number on resident
             617      returns filed under Chapter 10, Individual Income Tax Act.


             618          (ii) The state court administrator may use the information described in Subsection
             619      (3)(n)(i) only as a source list for the master jury list described in Section 78B-1-106 .
             620          (o) Notwithstanding Subsection (1), the commission shall at the request of a
             621      committee, commission, or task force of the Legislature provide to the committee,
             622      commission, or task force of the Legislature any information relating to a tax imposed under
             623      Chapter 9, Taxation of Admitted Insurers, relating to the study required by Section 59-9-101 .
             624          (p) (i) As used in this Subsection (3)(p), "office" means the:
             625          (A) Office of the Legislative Fiscal Analyst; or
             626          (B) Office of Legislative Research and General Counsel.
             627          (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(p)(iii),
             628      the commission shall at the request of an office provide to the office all information:
             629          (A) gained by the commission; and
             630          (B) required to be attached to or included in returns filed with the commission.
             631          (iii) (A) An office may not request and the commission may not provide to an office a
             632      person's:
             633          (I) address;
             634          (II) name;
             635          (III) Social Security number; or
             636          (IV) taxpayer identification number.
             637          (B) The commission shall in all instances protect the privacy of a person as required
             638      by Subsection (3)(p)(iii)(A).
             639          (iv) An office may provide information received from the commission in accordance
             640      with this Subsection (3)(p) only:
             641          (A) as:
             642          (I) a fiscal estimate;
             643          (II) fiscal note information; or
             644          (III) statistical information; and
             645          (B) if the information is classified to prevent the identification of a particular return.


             646          (v) (A) A person may not request information from an office under Title 63G, Chapter
             647      2, Government Records Access and Management Act, or this section, if that office received
             648      the information from the commission in accordance with this Subsection (3)(p).
             649          (B) An office may not provide to a person that requests information in accordance
             650      with Subsection (3)(p)(v)(A) any information other than the information the office provides in
             651      accordance with Subsection (3)(p)(iv).
             652          (q) Notwithstanding Subsection (1), the commission may provide to the governing
             653      board of the agreement or a taxing official of another state, the District of Columbia, the
             654      United States, or a territory of the United States:
             655          (i) the following relating to an agreement sales and use tax:
             656          (A) information contained in a return filed with the commission;
             657          (B) information contained in a report filed with the commission;
             658          (C) a schedule related to Subsection (3)(q)(i)(A) or (B); or
             659          (D) a document filed with the commission; or
             660          (ii) a report of an audit or investigation made with respect to an agreement sales and
             661      use tax.
             662          (4) (a) Reports and returns shall be preserved for at least three years.
             663          (b) After the three-year period provided in Subsection (4)(a) the commission may
             664      destroy a report or return.
             665          (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
             666          (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
             667      the person shall be dismissed from office and be disqualified from holding public office in this
             668      state for a period of five years thereafter.
             669          (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
             670      accordance with Subsection (3)(p)(iii) or a person that requests information in accordance
             671      with Subsection (3)(p)(v):
             672          (i) is not guilty of a class A misdemeanor; and
             673          (ii) is not subject to:


             674          (A) dismissal from office in accordance with Subsection (5)(b); or
             675          (B) disqualification from holding public office in accordance with Subsection (5)(b).
             676          (6) Except as provided in Section 59-1-404 , this part does not apply to the property
             677      tax.
             678          Section 3. Section 59-12-102 is amended to read:
             679           59-12-102. Definitions.
             680          As used in this chapter:
             681          (1) "800 service" means a telecommunications service that:
             682          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             683          (b) is typically marketed:
             684          (i) under the name 800 toll-free calling;
             685          (ii) under the name 855 toll-free calling;
             686          (iii) under the name 866 toll-free calling;
             687          (iv) under the name 877 toll-free calling;
             688          (v) under the name 888 toll-free calling; or
             689          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             690      Federal Communications Commission.
             691          (2) (a) "900 service" means an inbound toll telecommunications service that:
             692          (i) a subscriber purchases;
             693          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             694      the subscriber's:
             695          (A) prerecorded announcement; or
             696          (B) live service; and
             697          (iii) is typically marketed:
             698          (A) under the name 900 service; or
             699          (B) under a name similar to Subsection (2)[(c)](a)(iii)(A) as designated by the Federal
             700      Communications Commission.
             701          (b) "900 service" does not include a charge for:


             702          (i) a collection service a seller of a telecommunications service provides to a
             703      subscriber; or
             704          (ii) the following a subscriber sells to the subscriber's customer:
             705          (A) a product; or
             706          (B) a service.
             707          (3) (a) "Admission or user fees" includes season passes.
             708          (b) "Admission or user fees" does not include annual membership dues to private
             709      organizations.
             710          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             711      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             712      Agreement after November 12, 2002.
             713          (5) "Agreement combined tax rate" means the sum of the tax rates:
             714          (a) listed under Subsection (6); and
             715          (b) that are imposed within a local taxing jurisdiction.
             716          (6) "Agreement sales and use tax" means a tax imposed under:
             717          (a) Subsection 59-12-103 (2)(a)(i)(A);
             718          (b) Subsection 59-12-103 (2)(b)(i);
             719          (c) Subsection 59-12-103 (2)(c)(i);
             720          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             721          (e) Section 59-12-204 ;
             722          (f) Section 59-12-401 ;
             723          (g) Section 59-12-402 ;
             724          (h) Section 59-12-501 ;
             725          (i) Section 59-12-502 ;
             726          (j) Section 59-12-703 ;
             727          (k) Section 59-12-802 ;
             728          (l) Section 59-12-804 ;
             729          (m) Section 59-12-1001 ;


             730          (n) Section 59-12-1102 ;
             731          (o) Section 59-12-1302 ;
             732          (p) Section 59-12-1402 ;
             733          (q) Section 59-12-1503 ;
             734          (r) Section 59-12-1703 ;
             735          (s) Section 59-12-1802 ;
             736          (t) Section 59-12-1903 ;
             737          (u) Section 59-12-2003 ; or
             738          (v) Section 59-12-2103 .
             739          (7) "Aircraft" is as defined in Section 72-10-102 .
             740          (8) "Alcoholic beverage" means a beverage that:
             741          (a) is suitable for human consumption; and
             742          (b) contains .5% or more alcohol by volume.
             743          (9) (a) "Ancillary service" means a service associated with, or incidental to, the
             744      provision of telecommunications service.
             745          (b) "Ancillary service" includes:
             746          (i) a conference bridging service;
             747          (ii) a detailed communications billing service;
             748          (iii) directory assistance;
             749          (iv) a vertical service; or
             750          (v) a voice mail service.
             751          (10) "Area agency on aging" is as defined in Section 62A-3-101 .
             752          (11) "Assisted amusement device" means an amusement device, skill device, or ride
             753      device that is started and stopped by an individual:
             754          (a) who is not the purchaser or renter of the right to use or operate the amusement
             755      device, skill device, or ride device; and
             756          (b) at the direction of the seller of the right to use the amusement device, skill device,
             757      or ride device.


             758          (12) "Assisted cleaning or washing of tangible personal property" means cleaning or
             759      washing of tangible personal property if the cleaning or washing labor is primarily performed
             760      by an individual:
             761          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             762      property; and
             763          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             764      property.
             765          (13) "Authorized carrier" means:
             766          (a) in the case of vehicles operated over public highways, the holder of credentials
             767      indicating that the vehicle is or will be operated pursuant to both the International Registration
             768      Plan and the International Fuel Tax Agreement;
             769          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             770      certificate or air carrier's operating certificate; or
             771          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             772      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             773          (14) (a) Except as provided in Subsection (14)(b), "biomass energy" means any of the
             774      following that is used as the primary source of energy to produce fuel or electricity:
             775          (i) material from a plant or tree; or
             776          (ii) other organic matter that is available on a renewable basis, including:
             777          (A) slash and brush from forests and woodlands;
             778          (B) animal waste;
             779          (C) methane produced:
             780          (I) at landfills; or
             781          (II) as a byproduct of the treatment of wastewater residuals;
             782          (D) aquatic plants; and
             783          (E) agricultural products.
             784          (b) "Biomass energy" does not include:
             785          (i) black liquor;


             786          (ii) treated woods; or
             787          (iii) biomass from municipal solid waste other than methane produced:
             788          (A) at landfills; or
             789          (B) as a byproduct of the treatment of wastewater residuals.
             790          (15) (a) "Bundled transaction" means the sale of two or more items of tangible
             791      personal property, products, or services if the tangible personal property, products, or services
             792      are:
             793          (i) distinct and identifiable; and
             794          (ii) sold for one nonitemized price.
             795          (b) "Bundled transaction" does not include:
             796          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             797      the basis of the selection by the purchaser of the items of tangible personal property included
             798      in the transaction;
             799          (ii) the sale of real property;
             800          (iii) the sale of services to real property;
             801          (iv) the retail sale of tangible personal property and a service if:
             802          (A) the tangible personal property:
             803          (I) is essential to the use of the service; and
             804          (II) is provided exclusively in connection with the service; and
             805          (B) the service is the true object of the transaction;
             806          (v) the retail sale of two services if:
             807          (A) one service is provided that is essential to the use or receipt of a second service;
             808          (B) the first service is provided exclusively in connection with the second service; and
             809          (C) the second service is the true object of the transaction;
             810          (vi) a transaction that includes tangible personal property or a product subject to
             811      taxation under this chapter and tangible personal property or a product that is not subject to
             812      taxation under this chapter if the:
             813          (A) seller's purchase price of the tangible personal property or product subject to


             814      taxation under this chapter is de minimis; or
             815          (B) seller's sales price of the tangible personal property or product subject to taxation
             816      under this chapter is de minimis; and
             817          (vii) the retail sale of tangible personal property that is not subject to taxation under
             818      this chapter and tangible personal property that is subject to taxation under this chapter if:
             819          (A) that retail sale includes:
             820          (I) food and food ingredients;
             821          (II) a drug;
             822          (III) durable medical equipment;
             823          (IV) mobility enhancing equipment;
             824          (V) an over-the-counter drug;
             825          (VI) a prosthetic device; or
             826          (VII) a medical supply; and
             827          (B) subject to Subsection (15)(f):
             828          (I) the seller's purchase price of the tangible personal property subject to taxation
             829      under this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             830          (II) the seller's sales price of the tangible personal property subject to taxation under
             831      this chapter is 50% or less of the seller's total sales price of that retail sale.
             832          (c) (i) For purposes of Subsection (15)(a)(i), tangible personal property, a product, or a
             833      service that is distinct and identifiable does not include:
             834          (A) packaging that:
             835          (I) accompanies the sale of the tangible personal property, product, or service; and
             836          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             837      service;
             838          (B) tangible personal property, a product, or a service provided free of charge with the
             839      purchase of another item of tangible personal property, a product, or a service; or
             840          (C) an item of tangible personal property, a product, or a service included in the
             841      definition of "purchase price."


             842          (ii) For purposes of Subsection (15)(c)(i)(B), an item of tangible personal property, a
             843      product, or a service is provided free of charge with the purchase of another item of tangible
             844      personal property, a product, or a service if the sales price of the purchased item of tangible
             845      personal property, product, or service does not vary depending on the inclusion of the tangible
             846      personal property, product, or service provided free of charge.
             847          (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
             848      does not include a price that is separately identified by product on the following, regardless of
             849      whether the following is in paper format or electronic format:
             850          (A) a binding sales document; or
             851          (B) another supporting sales-related document that is available to a purchaser.
             852          (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
             853      supporting sales-related document that is available to a purchaser includes:
             854          (A) a bill of sale;
             855          (B) a contract;
             856          (C) an invoice;
             857          (D) a lease agreement;
             858          (E) a periodic notice of rates and services;
             859          (F) a price list;
             860          (G) a rate card;
             861          (H) a receipt; or
             862          (I) a service agreement.
             863          (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
             864      property or a product subject to taxation under this chapter is de minimis if:
             865          (A) the seller's purchase price of the tangible personal property or product is 10% or
             866      less of the seller's total purchase price of the bundled transaction; or
             867          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             868      the seller's total sales price of the bundled transaction.
             869          (ii) For purposes of Subsection (15)(b)(vi), a seller:


             870          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             871      purchase price or sales price of the tangible personal property or product subject to taxation
             872      under this chapter is de minimis; and
             873          (B) may not use a combination of the seller's purchase price and the seller's sales price
             874      to determine if the purchase price or sales price of the tangible personal property or product
             875      subject to taxation under this chapter is de minimis.
             876          (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
             877      contract to determine if the sales price of tangible personal property or a product is de
             878      minimis.
             879          (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
             880      the seller's purchase price and the seller's sales price to determine if tangible personal property
             881      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             882      price of that retail sale.
             883          (16) "Certified automated system" means software certified by the governing board of
             884      the agreement [in accordance with Section 59-12-102.1 ] that:
             885          (a) calculates the agreement sales and use tax imposed within a local taxing
             886      jurisdiction:
             887          (i) on a transaction; and
             888          (ii) in the states that are members of the agreement;
             889          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             890      member of the agreement; and
             891          (c) maintains a record of the transaction described in Subsection (16)(a)(i).
             892          (17) "Certified service provider" means an agent certified:
             893          (a) by the governing board of the agreement [in accordance with Section
             894      59-12-102.1 ]; and
             895          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             896      use tax other than the seller's obligation under Section [ 59-12-107.4 ] 59-12-124 to remit a tax
             897      on the seller's own purchases.


             898          (18) (a) Subject to Subsection (18)(b), "clothing" means all human wearing apparel
             899      suitable for general use.
             900          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             901      the commission shall make rules:
             902          (i) listing the items that constitute "clothing"; and
             903          (ii) that are consistent with the list of items that constitute "clothing" under the
             904      agreement.
             905          (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             906          (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             907      fuels that does not constitute industrial use under Subsection (46) or residential use under
             908      Subsection (91).
             909          (21) (a) "Common carrier" means a person engaged in or transacting the business of
             910      transporting passengers, freight, merchandise, or other property for hire within this state.
             911          (b) (i) "Common carrier" does not include a person who, at the time the person is
             912      traveling to or from that person's place of employment, transports a passenger to or from the
             913      passenger's place of employment.
             914          (ii) For purposes of Subsection (21)(b)(i), in accordance with Title 63G, Chapter 3,
             915      Utah Administrative Rulemaking Act, the commission may make rules defining what
             916      constitutes a person's place of employment.
             917          (22) "Component part" includes:
             918          (a) poultry, dairy, and other livestock feed, and their components;
             919          (b) baling ties and twine used in the baling of hay and straw;
             920          (c) fuel used for providing temperature control of orchards and commercial
             921      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             922      off-highway type farm machinery; and
             923          (d) feed, seeds, and seedlings.
             924          (23) "Computer" means an electronic device that accepts information:
             925          (a) (i) in digital form; or


             926          (ii) in a form similar to digital form; and
             927          (b) manipulates that information for a result based on a sequence of instructions.
             928          (24) "Computer software" means a set of coded instructions designed to cause:
             929          (a) a computer to perform a task; or
             930          (b) automatic data processing equipment to perform a task.
             931          (25) (a) "Conference bridging service" means an ancillary service that links two or
             932      more participants of an audio conference call or video conference call.
             933          (b) "Conference bridging service" includes providing a telephone number as part of
             934      the ancillary service described in Subsection (25)(a).
             935          (c) "Conference bridging service" does not include a telecommunications service used
             936      to reach the ancillary service described in Subsection (25)(a).
             937          (26) "Construction materials" means any tangible personal property that will be
             938      converted into real property.
             939          (27) "Delivered electronically" means delivered to a purchaser by means other than
             940      tangible storage media.
             941          (28) (a) "Delivery charge" means a charge:
             942          (i) by a seller of:
             943          (A) tangible personal property;
             944          (B) a product transferred electronically; or
             945          (C) services; and
             946          (ii) for preparation and delivery of the tangible personal property, product transferred
             947      electronically, or services described in Subsection (28)(a)(i) to a location designated by the
             948      purchaser.
             949          (b) "Delivery charge" includes a charge for the following:
             950          (i) transportation;
             951          (ii) shipping;
             952          (iii) postage;
             953          (iv) handling;


             954          (v) crating; or
             955          (vi) packing.
             956          (29) "Detailed telecommunications billing service" means an ancillary service of
             957      separately stating information pertaining to individual calls on a customer's billing statement.
             958          (30) "Dietary supplement" means a product, other than tobacco, that:
             959          (a) is intended to supplement the diet;
             960          (b) contains one or more of the following dietary ingredients:
             961          (i) a vitamin;
             962          (ii) a mineral;
             963          (iii) an herb or other botanical;
             964          (iv) an amino acid;
             965          (v) a dietary substance for use by humans to supplement the diet by increasing the
             966      total dietary intake; or
             967          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             968      described in Subsections (30)(b)(i) through (v);
             969          (c) (i) except as provided in Subsection (30)(c)(ii), is intended for ingestion in:
             970          (A) tablet form;
             971          (B) capsule form;
             972          (C) powder form;
             973          (D) softgel form;
             974          (E) gelcap form; or
             975          (F) liquid form; or
             976          (ii) notwithstanding Subsection (30)(c)(i), if the product is not intended for ingestion
             977      in a form described in Subsections (30)(c)(i)(A) through (F), is not represented:
             978          (A) as conventional food; and
             979          (B) for use as a sole item of:
             980          (I) a meal; or
             981          (II) the diet; and


             982          (d) is required to be labeled as a dietary supplement:
             983          (i) identifiable by the "Supplemental Facts" box found on the label; and
             984          (ii) as required by 21 C.F.R. Sec. 101.36.
             985          (31) (a) "Direct mail" means printed material delivered or distributed by United States
             986      mail or other delivery service:
             987          (i) to:
             988          (A) a mass audience; or
             989          (B) addressees on a mailing list provided:
             990          (I) by a purchaser of the mailing list; or
             991          (II) at the discretion of the purchaser of the mailing list; and
             992          (ii) if the cost of the printed material is not billed directly to the recipients.
             993          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by
             994      a purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             995          (c) "Direct mail" does not include multiple items of printed material delivered to a
             996      single address.
             997          (32) "Directory assistance" means an ancillary service of providing:
             998          (a) address information; or
             999          (b) telephone number information.
             1000          (33) (a) "Disposable home medical equipment or supplies" means medical equipment
             1001      or supplies that:
             1002          (i) cannot withstand repeated use; and
             1003          (ii) are purchased by, for, or on behalf of a person other than:
             1004          (A) a health care facility as defined in Section 26-21-2 ;
             1005          (B) a health care provider as defined in Section 78B-3-403 ;
             1006          (C) an office of a health care provider described in Subsection (33)(a)(ii)(B); or
             1007          (D) a person similar to a person described in Subsections (33)(a)(ii)(A) through (C).
             1008          (b) "Disposable home medical equipment or supplies" does not include:
             1009          (i) a drug;


             1010          (ii) durable medical equipment;
             1011          (iii) a hearing aid;
             1012          (iv) a hearing aid accessory;
             1013          (v) mobility enhancing equipment; or
             1014          (vi) tangible personal property used to correct impaired vision, including:
             1015          (A) eyeglasses; or
             1016          (B) contact lenses.
             1017          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1018      commission may by rule define what constitutes medical equipment or supplies.
             1019          (34) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1020      compound, substance, or preparation that is:
             1021          (i) recognized in:
             1022          (A) the official United States Pharmacopoeia;
             1023          (B) the official Homeopathic Pharmacopoeia of the United States;
             1024          (C) the official National Formulary; or
             1025          (D) a supplement to a publication listed in Subsections (34)(a)(i)(A) through (C);
             1026          (ii) intended for use in the:
             1027          (A) diagnosis of disease;
             1028          (B) cure of disease;
             1029          (C) mitigation of disease;
             1030          (D) treatment of disease; or
             1031          (E) prevention of disease; or
             1032          (iii) intended to affect:
             1033          (A) the structure of the body; or
             1034          (B) any function of the body.
             1035          (b) "Drug" does not include:
             1036          (i) food and food ingredients;
             1037          (ii) a dietary supplement;


             1038          (iii) an alcoholic beverage; or
             1039          (iv) a prosthetic device.
             1040          (35) (a) Except as provided in Subsection (35)(c), "durable medical equipment" means
             1041      equipment that:
             1042          (i) can withstand repeated use;
             1043          (ii) is primarily and customarily used to serve a medical purpose;
             1044          (iii) generally is not useful to a person in the absence of illness or injury; and
             1045          (iv) is not worn in or on the body.
             1046          (b) "Durable medical equipment" includes parts used in the repair or replacement of
             1047      the equipment described in Subsection (35)(a).
             1048          (c) Notwithstanding Subsection (35)(a), "durable medical equipment" does not include
             1049      mobility enhancing equipment.
             1050          (36) "Electronic" means:
             1051          (a) relating to technology; and
             1052          (b) having:
             1053          (i) electrical capabilities;
             1054          (ii) digital capabilities;
             1055          (iii) magnetic capabilities;
             1056          (iv) wireless capabilities;
             1057          (v) optical capabilities;
             1058          (vi) electromagnetic capabilities; or
             1059          (vii) capabilities similar to Subsections (36)(b)(i) through (vi).
             1060          (37) "Employee" is as defined in Section 59-10-401 .
             1061          (38) "Fixed guideway" means a public transit facility that uses and occupies:
             1062          (a) rail for the use of public transit; or
             1063          (b) a separate right-of-way for the use of public transit.
             1064          (39) "Fixed wireless service" means a telecommunications service that provides radio
             1065      communication between fixed points.


             1066          (40) (a) "Food and food ingredients" means substances:
             1067          (i) regardless of whether the substances are in:
             1068          (A) liquid form;
             1069          (B) concentrated form;
             1070          (C) solid form;
             1071          (D) frozen form;
             1072          (E) dried form; or
             1073          (F) dehydrated form; and
             1074          (ii) that are:
             1075          (A) sold for:
             1076          (I) ingestion by humans; or
             1077          (II) chewing by humans; and
             1078          (B) consumed for the substance's:
             1079          (I) taste; or
             1080          (II) nutritional value.
             1081          (b) "Food and food ingredients" includes an item described in Subsection (75)(b)(iii).
             1082          (c) "Food and food ingredients" does not include:
             1083          (i) an alcoholic beverage;
             1084          (ii) tobacco; or
             1085          (iii) prepared food.
             1086          (41) (a) "Fundraising sales" means sales:
             1087          (i) (A) made by a school; or
             1088          (B) made by a school student;
             1089          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1090      materials, or provide transportation; and
             1091          (iii) that are part of an officially sanctioned school activity.
             1092          (b) For purposes of Subsection (41)(a)(iii), "officially sanctioned school activity"
             1093      means a school activity:


             1094          (i) that is conducted in accordance with a formal policy adopted by the school or
             1095      school district governing the authorization and supervision of fundraising activities;
             1096          (ii) that does not directly or indirectly compensate an individual teacher or other
             1097      educational personnel by direct payment, commissions, or payment in kind; and
             1098          (iii) the net or gross revenues from which are deposited in a dedicated account
             1099      controlled by the school or school district.
             1100          (42) "Geothermal energy" means energy contained in heat that continuously flows
             1101      outward from the earth that is used as the sole source of energy to produce electricity.
             1102          (43) "Governing board of the agreement" means the governing board of the agreement
             1103      that is:
             1104          (a) authorized to administer the agreement; and
             1105          (b) established in accordance with the agreement.
             1106          (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             1107          (i) the executive branch of the state, including all departments, institutions, boards,
             1108      divisions, bureaus, offices, commissions, and committees;
             1109          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             1110      Office of the Court Administrator, and similar administrative units in the judicial branch;
             1111          (iii) the legislative branch of the state, including the House of Representatives, the
             1112      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             1113      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             1114      Analyst;
             1115          (iv) the National Guard;
             1116          (v) an independent entity as defined in Section 63E-1-102 ; or
             1117          (vi) a political subdivision as defined in Section 17B-1-102 .
             1118          (b) "Governmental entity" does not include the state systems of public and higher
             1119      education, including:
             1120          (i) a college campus of the Utah College of Applied Technology;
             1121          (ii) a school;


             1122          (iii) the State Board of Education;
             1123          (iv) the State Board of Regents; or
             1124          (v) a state institution of higher education as defined in Section 53B-3-102 .
             1125          (45) "Hydroelectric energy" means water used as the sole source of energy to produce
             1126      electricity.
             1127          (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             1128      other fuels:
             1129          (a) in mining or extraction of minerals;
             1130          (b) in agricultural operations to produce an agricultural product up to the time of
             1131      harvest or placing the agricultural product into a storage facility, including:
             1132          (i) commercial greenhouses;
             1133          (ii) irrigation pumps;
             1134          (iii) farm machinery;
             1135          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             1136      registered under Title 41, Chapter 1a, Part 2, Registration; and
             1137          (v) other farming activities;
             1138          (c) in manufacturing tangible personal property at an establishment described in SIC
             1139      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             1140      Executive Office of the President, Office of Management and Budget;
             1141          (d) by a scrap recycler if:
             1142          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1143      one or more of the following items into prepared grades of processed materials for use in new
             1144      products:
             1145          (A) iron;
             1146          (B) steel;
             1147          (C) nonferrous metal;
             1148          (D) paper;
             1149          (E) glass;


             1150          (F) plastic;
             1151          (G) textile; or
             1152          (H) rubber; and
             1153          (ii) the new products under Subsection (46)(d)(i) would otherwise be made with
             1154      nonrecycled materials; or
             1155          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             1156      cogeneration facility as defined in Section 54-2-1 .
             1157          (47) (a) Except as provided in Subsection (47)(b), "installation charge" means a
             1158      charge for installing:
             1159          (i) tangible personal property; or
             1160          (ii) a product transferred electronically.
             1161          (b) "Installation charge" does not include a charge for repairs or renovations of:
             1162          (i) tangible personal property; or
             1163          (ii) a product transferred electronically.
             1164          (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             1165      personal property or a product transferred electronically for:
             1166          (i) (A) a fixed term; or
             1167          (B) an indeterminate term; and
             1168          (ii) consideration.
             1169          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if
             1170      the amount of consideration may be increased or decreased by reference to the amount realized
             1171      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             1172      Code.
             1173          (c) "Lease" or "rental" does not include:
             1174          (i) a transfer of possession or control of property under a security agreement or
             1175      deferred payment plan that requires the transfer of title upon completion of the required
             1176      payments;
             1177          (ii) a transfer of possession or control of property under an agreement that requires the


             1178      transfer of title:
             1179          (A) upon completion of required payments; and
             1180          (B) if the payment of an option price does not exceed the greater of:
             1181          (I) $100; or
             1182          (II) 1% of the total required payments; or
             1183          (iii) providing tangible personal property along with an operator for a fixed period of
             1184      time or an indeterminate period of time if the operator is necessary for equipment to perform
             1185      as designed.
             1186          (d) For purposes of Subsection (48)(c)(iii), an operator is necessary for equipment to
             1187      perform as designed if the operator's duties exceed the:
             1188          (i) set-up of tangible personal property;
             1189          (ii) maintenance of tangible personal property; or
             1190          (iii) inspection of tangible personal property.
             1191          (49) "Load and leave" means delivery to a purchaser by use of a tangible storage
             1192      media if the tangible storage media is not physically transferred to the purchaser.
             1193          (50) "Local taxing jurisdiction" means a:
             1194          (a) county that is authorized to impose an agreement sales and use tax;
             1195          (b) city that is authorized to impose an agreement sales and use tax; or
             1196          (c) town that is authorized to impose an agreement sales and use tax.
             1197          (51) "Manufactured home" is as defined in Section 58-56-3 .
             1198          (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
             1199          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             1200      Industrial Classification Manual of the federal Executive Office of the President, Office of
             1201      Management and Budget;
             1202          (b) a scrap recycler if:
             1203          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1204      one or more of the following items into prepared grades of processed materials for use in new
             1205      products:


             1206          (A) iron;
             1207          (B) steel;
             1208          (C) nonferrous metal;
             1209          (D) paper;
             1210          (E) glass;
             1211          (F) plastic;
             1212          (G) textile; or
             1213          (H) rubber; and
             1214          (ii) the new products under Subsection (52)(b)(i) would otherwise be made with
             1215      nonrecycled materials; or
             1216          (c) a cogeneration facility as defined in Section 54-2-1 .
             1217          (53) "Member of the immediate family of the producer" means a person who is related
             1218      to a producer described in Subsection 59-12-104 (20)(a) as a:
             1219          (a) child or stepchild, regardless of whether the child or stepchild is:
             1220          (i) an adopted child or adopted stepchild; or
             1221          (ii) a foster child or foster stepchild;
             1222          (b) grandchild or stepgrandchild;
             1223          (c) grandparent or stepgrandparent;
             1224          (d) nephew or stepnephew;
             1225          (e) niece or stepniece;
             1226          (f) parent or stepparent;
             1227          (g) sibling or stepsibling;
             1228          (h) spouse;
             1229          (i) person who is the spouse of a person described in Subsections (53)(a) through (g);
             1230      or
             1231          (j) person similar to a person described in Subsections (53)(a) through (i) as
             1232      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1233      Administrative Rulemaking Act.


             1234          (54) "Mobile home" is as defined in Section 58-56-3 .
             1235          (55) "Mobile telecommunications service" is as defined in the Mobile
             1236      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1237          (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
             1238      the technology used, if:
             1239          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             1240          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             1241          (iii) the origination point described in Subsection (56)(a)(i) and the termination point
             1242      described in Subsection (56)(a)(ii) are not fixed.
             1243          (b) "Mobile wireless service" includes a telecommunications service that is provided
             1244      by a commercial mobile radio service provider.
             1245          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1246      commission may by rule define "commercial mobile radio service provider."
             1247          (57) (a) Except as provided in Subsection (57)(c), "mobility enhancing equipment"
             1248      means equipment that is:
             1249          (i) primarily and customarily used to provide or increase the ability to move from one
             1250      place to another;
             1251          (ii) appropriate for use in a:
             1252          (A) home; or
             1253          (B) motor vehicle; and
             1254          (iii) not generally used by persons with normal mobility.
             1255          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement
             1256      of the equipment described in Subsection (57)(a).
             1257          (c) Notwithstanding Subsection (57)(a), "mobility enhancing equipment" does not
             1258      include:
             1259          (i) a motor vehicle;
             1260          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1261      vehicle manufacturer;


             1262          (iii) durable medical equipment; or
             1263          (iv) a prosthetic device.
             1264          (58) "Model 1 seller" means a seller that has selected a certified service provider as the
             1265      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             1266      use taxes other than the seller's obligation under Section [ 59-12-107.4 ] 59-12-124 to remit a
             1267      tax on the seller's own purchases.
             1268          (59) "Model 2 seller" means a seller that:
             1269          (a) except as provided in Subsection (59)(b), has selected a certified automated system
             1270      to perform the seller's sales tax functions for agreement sales and use taxes; and
             1271          (b) notwithstanding Subsection (59)(a), retains responsibility for remitting all of the
             1272      sales tax:
             1273          (i) collected by the seller; and
             1274          (ii) to the appropriate local taxing jurisdiction.
             1275          (60) (a) Subject to Subsection (60)(b), "model 3 seller" means a seller that has:
             1276          (i) sales in at least five states that are members of the agreement;
             1277          (ii) total annual sales revenues of at least $500,000,000;
             1278          (iii) a proprietary system that calculates the amount of tax:
             1279          (A) for an agreement sales and use tax; and
             1280          (B) due to each local taxing jurisdiction; and
             1281          (iv) entered into a performance agreement with the governing board of the agreement.
             1282          (b) For purposes of Subsection (60)(a), "model 3 seller" includes an affiliated group of
             1283      sellers using the same proprietary system.
             1284          (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
             1285          (62) "Motor vehicle" is as defined in Section 41-1a-102 .
             1286          (63) "Oil shale" means a group of fine black to dark brown shales containing
             1287      bituminous material that yields petroleum upon distillation.
             1288          (64) (a) "Other fuels" means products that burn independently to produce heat or
             1289      energy.


             1290          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1291      personal property.
             1292          (65) (a) "Paging service" means a telecommunications service that provides
             1293      transmission of a coded radio signal for the purpose of activating a specific pager.
             1294          (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
             1295      includes a transmission by message or sound.
             1296          (66) "Pawnbroker" is as defined in Section 13-32a-102 .
             1297          (67) "Pawn transaction" is as defined in Section 13-32a-102 .
             1298          (68) (a) "Permanently attached to real property" means that for tangible personal
             1299      property attached to real property:
             1300          (i) the attachment of the tangible personal property to the real property:
             1301          (A) is essential to the use of the tangible personal property; and
             1302          (B) suggests that the tangible personal property will remain attached to the real
             1303      property in the same place over the useful life of the tangible personal property; or
             1304          (ii) if the tangible personal property is detached from the real property, the detachment
             1305      would:
             1306          (A) cause substantial damage to the tangible personal property; or
             1307          (B) require substantial alteration or repair of the real property to which the tangible
             1308      personal property is attached.
             1309          (b) "Permanently attached to real property" includes:
             1310          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             1311          (A) essential to the operation of the tangible personal property; and
             1312          (B) attached only to facilitate the operation of the tangible personal property;
             1313          (ii) a temporary detachment of tangible personal property from real property for a
             1314      repair or renovation if the repair or renovation is performed where the tangible personal
             1315      property and real property are located; or
             1316          (iii) property attached to oil, gas, or water pipelines, other than the property listed in
             1317      Subsection (68)(c)(iii).


             1318          (c) "Permanently attached to real property" does not include:
             1319          (i) the attachment of portable or movable tangible personal property to real property if
             1320      that portable or movable tangible personal property is attached to real property only for:
             1321          (A) convenience;
             1322          (B) stability; or
             1323          (C) for an obvious temporary purpose;
             1324          (ii) the detachment of tangible personal property from real property other than the
             1325      detachment described in Subsection (68)(b)(ii);
             1326          (iii) an attachment of the following tangible personal property to real property if the
             1327      attachment to real property is only through a line that supplies water, electricity, gas,
             1328      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             1329      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             1330          (A) a refrigerator;
             1331          (B) a washer;
             1332          (C) a dryer;
             1333          (D) a stove;
             1334          (E) a television;
             1335          (F) a computer;
             1336          (G) a telephone; or
             1337          (H) tangible personal property similar to Subsections (68)(c)(iii)(A) through (G) as
             1338      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1339      Administrative Rulemaking Act; or
             1340          (iv) the following if attached to real property, regardless of whether the attachment to
             1341      real property is only through a line that supplies water, electricity, gas, telephone, cable, or
             1342      supplies a similar item as determined by the commission by rule made in accordance with
             1343      Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             1344          (A) a hot water heater;
             1345          (B) a water softener system; or


             1346          (C) a water filtration system.
             1347          (69) "Person" includes any individual, firm, partnership, joint venture, association,
             1348      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             1349      municipality, district, or other local governmental entity of the state, or any group or
             1350      combination acting as a unit.
             1351          (70) "Place of primary use":
             1352          (a) for telecommunications service other than mobile telecommunications service,
             1353      means the street address representative of where the [purchaser's] customer's use of the
             1354      telecommunications service primarily occurs, which shall be:
             1355          (i) the residential street address of the [purchaser] customer; or
             1356          (ii) the primary business street address of the [purchaser] customer; or
             1357          (b) for mobile telecommunications service, is as defined in the Mobile
             1358      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1359          (71) (a) "Postpaid calling service" means a telecommunications service a person
             1360      obtains by making a payment on a call-by-call basis:
             1361          (i) through the use of a:
             1362          (A) bank card;
             1363          (B) credit card;
             1364          (C) debit card; or
             1365          (D) travel card; or
             1366          (ii) by a charge made to a telephone number that is not associated with the origination
             1367      or termination of the telecommunications service.
             1368          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             1369      service, that would be a prepaid wireless calling service if the service were exclusively a
             1370      telecommunications service.
             1371          (72) "Postproduction" means an activity related to the finishing or duplication of a
             1372      medium described in Subsection 59-12-104 [(55)](54)(a).
             1373          (73) "Prepaid calling service" means a telecommunications service:


             1374          (a) that allows a purchaser access to telecommunications service that is exclusively
             1375      telecommunications service;
             1376          (b) that:
             1377          (i) is paid for in advance; and
             1378          (ii) enables the origination of a call using an:
             1379          (A) access number; or
             1380          (B) authorization code;
             1381          (c) that is dialed:
             1382          (i) manually; or
             1383          (ii) electronically; and
             1384          (d) sold in predetermined units or dollars that decline:
             1385          (i) by a known amount; and
             1386          (ii) with use.
             1387          (74) "Prepaid wireless calling service" means a telecommunications service:
             1388          (a) that provides the right to utilize:
             1389          (i) mobile wireless service; and
             1390          (ii) other service that is not a telecommunications service, including:
             1391          (A) the download of a product transferred electronically;
             1392          (B) a content service; or
             1393          (C) an ancillary service;
             1394          (b) that:
             1395          (i) is paid for in advance; and
             1396          (ii) enables the origination of a call using an:
             1397          (A) access number; or
             1398          (B) authorization code;
             1399          (c) that is dialed:
             1400          (i) manually; or
             1401          (ii) electronically; and


             1402          (d) sold in predetermined units or dollars that decline:
             1403          (i) by a known amount; and
             1404          (ii) with use.
             1405          (75) (a) "Prepared food" means:
             1406          (i) food:
             1407          (A) sold in a heated state; or
             1408          (B) heated by a seller;
             1409          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1410      item; or
             1411          (iii) except as provided in Subsection (75)(c), food sold with an eating utensil
             1412      provided by the seller, including a:
             1413          (A) plate;
             1414          (B) knife;
             1415          (C) fork;
             1416          (D) spoon;
             1417          (E) glass;
             1418          (F) cup;
             1419          (G) napkin; or
             1420          (H) straw.
             1421          (b) "Prepared food" does not include:
             1422          (i) food that a seller only:
             1423          (A) cuts;
             1424          (B) repackages; or
             1425          (C) pasteurizes; or
             1426          (ii) (A) the following:
             1427          (I) raw egg;
             1428          (II) raw fish;
             1429          (III) raw meat;


             1430          (IV) raw poultry; or
             1431          (V) a food containing an item described in Subsections (75)(b)(ii)(A)(I) through (IV);
             1432      and
             1433          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1434      Food and Drug Administration's Food Code that a consumer cook the items described in
             1435      Subsection (75)(b)(ii)(A) to prevent food borne illness; or
             1436          (iii) the following if sold without eating utensils provided by the seller:
             1437          (A) food and food ingredients sold by a seller if the seller's proper primary
             1438      classification under the 2002 North American Industry Classification System of the federal
             1439      Executive Office of the President, Office of Management and Budget, is manufacturing in
             1440      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             1441      Manufacturing;
             1442          (B) food and food ingredients sold in an unheated state:
             1443          (I) by weight or volume; and
             1444          (II) as a single item; or
             1445          (C) a bakery item, including:
             1446          (I) a bagel;
             1447          (II) a bar;
             1448          (III) a biscuit;
             1449          (IV) bread;
             1450          (V) a bun;
             1451          (VI) a cake;
             1452          (VII) a cookie;
             1453          (VIII) a croissant;
             1454          (IX) a danish;
             1455          (X) a donut;
             1456          (XI) a muffin;
             1457          (XII) a pastry;


             1458          (XIII) a pie;
             1459          (XIV) a roll;
             1460          (XV) a tart;
             1461          (XVI) a torte; or
             1462          (XVII) a tortilla.
             1463          (c) Notwithstanding Subsection (75)(a)(iii), an eating utensil provided by the seller
             1464      does not include the following used to transport the food:
             1465          (i) a container; or
             1466          (ii) packaging.
             1467          (76) "Prescription" means an order, formula, or recipe that is issued:
             1468          (a) (i) orally;
             1469          (ii) in writing;
             1470          (iii) electronically; or
             1471          (iv) by any other manner of transmission; and
             1472          (b) by a licensed practitioner authorized by the laws of a state.
             1473          (77) (a) Except as provided in Subsection (77)(b)(ii) or (iii), "prewritten computer
             1474      software" means computer software that is not designed and developed:
             1475          (i) by the author or other creator of the computer software; and
             1476          (ii) to the specifications of a specific purchaser.
             1477          (b) "Prewritten computer software" includes:
             1478          (i) a prewritten upgrade to computer software if the prewritten upgrade to the
             1479      computer software is not designed and developed:
             1480          (A) by the author or other creator of the computer software; and
             1481          (B) to the specifications of a specific purchaser;
             1482          (ii) notwithstanding Subsection (77)(a), computer software designed and developed by
             1483      the author or other creator of the computer software to the specifications of a specific
             1484      purchaser if the computer software is sold to a person other than the purchaser; or
             1485          (iii) notwithstanding Subsection (77)(a) and except as provided in Subsection (77)(c),


             1486      prewritten computer software or a prewritten portion of prewritten computer software:
             1487          (A) that is modified or enhanced to any degree; and
             1488          (B) if the modification or enhancement described in Subsection (77)(b)(iii)(A) is
             1489      designed and developed to the specifications of a specific purchaser.
             1490          (c) Notwithstanding Subsection (77)(b)(iii), "prewritten computer software" does not
             1491      include a modification or enhancement described in Subsection (77)(b)(iii) if the charges for
             1492      the modification or enhancement are:
             1493          (i) reasonable; and
             1494          (ii) separately stated on the invoice or other statement of price provided to the
             1495      purchaser.
             1496          (78) (a) "Private communication service" means a telecommunications service:
             1497          (i) that entitles a customer to exclusive or priority use of one or more communications
             1498      channels between or among termination points; and
             1499          (ii) regardless of the manner in which the one or more communications channels are
             1500      connected.
             1501          (b) "Private communications service" includes the following provided in connection
             1502      with the use of one or more communications channels:
             1503          (i) an extension line;
             1504          (ii) a station; [or]
             1505          (iii) switching capacity; or
             1506          (iv) another associated service that is provided in connection with the use of one or
             1507      more communications channels as defined in Section 59-12-215 .
             1508          (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1509          (i) artificially replace a missing portion of the body;
             1510          (ii) prevent or correct a physical deformity or physical malfunction; or
             1511          (iii) support a weak or deformed portion of the body.
             1512          (b) "Prosthetic device" includes:
             1513          (i) parts used in the repairs or renovation of a prosthetic device;


             1514          (ii) replacement parts for a prosthetic device;
             1515          (iii) a dental prosthesis; or
             1516          (iv) a hearing aid.
             1517          (c) "Prosthetic device" does not include:
             1518          (i) corrective eyeglasses; or
             1519          (ii) contact lenses.
             1520          (80) (a) "Protective equipment" means an item:
             1521          (i) for human wear; and
             1522          (ii) that is:
             1523          (A) designed as protection:
             1524          (I) to the wearer against injury or disease; or
             1525          (II) against damage or injury of other persons or property; and
             1526          (B) not suitable for general use.
             1527          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1528      the commission shall make rules:
             1529          (i) listing the items that constitute "protective equipment"; and
             1530          (ii) that are consistent with the list of items that constitute "protective equipment"
             1531      under the agreement.
             1532          (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written
             1533      or printed matter, other than a photocopy:
             1534          (i) regardless of:
             1535          (A) characteristics;
             1536          (B) copyright;
             1537          (C) form;
             1538          (D) format;
             1539          (E) method of reproduction; or
             1540          (F) source; and
             1541          (ii) made available in printed or electronic format.


             1542          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1543      the commission may by rule define the term "photocopy."
             1544          (82) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1545          (i) valued in money; and
             1546          (ii) for which tangible personal property, a product transferred electronically, or
             1547      services are:
             1548          (A) sold;
             1549          (B) leased; or
             1550          (C) rented.
             1551          (b) "Purchase price" and "sales price" include:
             1552          (i) the seller's cost of the tangible personal property, a product transferred
             1553      electronically, or services sold;
             1554          (ii) expenses of the seller, including:
             1555          (A) the cost of materials used;
             1556          (B) a labor cost;
             1557          (C) a service cost;
             1558          (D) interest;
             1559          (E) a loss;
             1560          (F) the cost of transportation to the seller; or
             1561          (G) a tax imposed on the seller;
             1562          (iii) a charge by the seller for any service necessary to complete the sale; or
             1563          (iv) consideration a seller receives from a person other than the purchaser if:
             1564          (A) (I) the seller actually receives consideration from a person other than the
             1565      purchaser; and
             1566          (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
             1567      price reduction or discount on the sale;
             1568          (B) the seller has an obligation to pass the price reduction or discount through to the
             1569      purchaser;


             1570          (C) the amount of the consideration attributable to the sale is fixed and determinable
             1571      by the seller at the time of the sale to the purchaser; and
             1572          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1573      seller to claim a price reduction or discount; and
             1574          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1575      coupon, or other documentation with the understanding that the person other than the seller
             1576      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1577          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1578      organization allowed a price reduction or discount, except that a preferred customer card that
             1579      is available to any patron of a seller does not constitute membership in a group or organization
             1580      allowed a price reduction or discount; or
             1581          (III) the price reduction or discount is identified as a third party price reduction or
             1582      discount on the:
             1583          (Aa) invoice the purchaser receives; or
             1584          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1585          (c) "Purchase price" and "sales price" do not include:
             1586          (i) a discount:
             1587          (A) in a form including:
             1588          (I) cash;
             1589          (II) term; or
             1590          (III) coupon;
             1591          (B) that is allowed by a seller;
             1592          (C) taken by a purchaser on a sale; and
             1593          (D) that is not reimbursed by a third party; or
             1594          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1595      provided to the purchaser:
             1596          (A) the following from credit extended on the sale of tangible personal property or
             1597      services:


             1598          (I) a carrying charge;
             1599          (II) a financing charge; or
             1600          (III) an interest charge;
             1601          (B) a delivery charge;
             1602          (C) an installation charge;
             1603          (D) a manufacturer rebate on a motor vehicle; or
             1604          (E) a tax or fee legally imposed directly on the consumer.
             1605          (83) "Purchaser" means a person to whom:
             1606          (a) a sale of tangible personal property is made;
             1607          (b) a product is transferred electronically; or
             1608          (c) a service is furnished.
             1609          (84) "Regularly rented" means:
             1610          (a) rented to a guest for value three or more times during a calendar year; or
             1611          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1612      value.
             1613          (85) "Renewable energy" means:
             1614          (a) biomass energy;
             1615          (b) hydroelectric energy;
             1616          (c) geothermal energy;
             1617          (d) solar energy; or
             1618          (e) wind energy.
             1619          (86) (a) "Renewable energy production facility" means a facility that:
             1620          (i) uses renewable energy to produce electricity; and
             1621          (ii) has a production capacity of 20 kilowatts or greater.
             1622          (b) A facility is a renewable energy production facility regardless of whether the
             1623      facility is:
             1624          (i) connected to an electric grid; or
             1625          (ii) located on the premises of an electricity consumer.


             1626          (87) "Rental" is as defined in Subsection (48).
             1627          (88) "Repairs or renovations of tangible personal property" means:
             1628          (a) a repair or renovation of tangible personal property that is not permanently
             1629      attached to real property; or
             1630          (b) attaching tangible personal property or a product that is transferred electronically
             1631      to other tangible personal property if the other tangible personal property to which the tangible
             1632      personal property or product that is transferred electronically is attached is not permanently
             1633      attached to real property.
             1634          (89) "Research and development" means the process of inquiry or experimentation
             1635      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1636      preparing those devices, technologies, or applications for marketing.
             1637          (90) (a) "Residential telecommunications services" means a telecommunications
             1638      service or an ancillary service that is provided to an individual for personal use:
             1639          (i) at a residential address; or
             1640          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1641      service or ancillary service is provided to and paid for by the individual residing at the
             1642      institution rather than the institution.
             1643          (b) For purposes of Subsection (90)(a), a residential address includes an:
             1644          (i) apartment; or
             1645          (ii) other individual dwelling unit.
             1646          (91) "Residential use" means the use in or around a home, apartment building,
             1647      sleeping quarters, and similar facilities or accommodations.
             1648          (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1649      than:
             1650          (a) resale;
             1651          (b) sublease; or
             1652          (c) subrent.
             1653          (93) (a) "Retailer" means any person engaged in a regularly organized business in


             1654      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
             1655      and who is selling to the user or consumer and not for resale.
             1656          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1657      engaged in the business of selling to users or consumers within the state.
             1658          (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1659      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1660      Subsection 59-12-103 (1), for consideration.
             1661          (b) "Sale" includes:
             1662          (i) installment and credit sales;
             1663          (ii) any closed transaction constituting a sale;
             1664          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1665      chapter;
             1666          (iv) any transaction if the possession of property is transferred but the seller retains the
             1667      title as security for the payment of the price; and
             1668          (v) any transaction under which right to possession, operation, or use of any article of
             1669      tangible personal property is granted under a lease or contract and the transfer of possession
             1670      would be taxable if an outright sale were made.
             1671          (95) "Sale at retail" is as defined in Subsection (92).
             1672          (96) "Sale-leaseback transaction" means a transaction by which title to tangible
             1673      personal property or a product transferred electronically that is subject to a tax under this
             1674      chapter is transferred:
             1675          (a) by a purchaser-lessee;
             1676          (b) to a lessor;
             1677          (c) for consideration; and
             1678          (d) if:
             1679          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1680      of the tangible personal property or product transferred electronically;
             1681          (ii) the sale of the tangible personal property or product transferred electronically to


             1682      the lessor is intended as a form of financing:
             1683          (A) for the tangible personal property or product transferred electronically; and
             1684          (B) to the purchaser-lessee; and
             1685          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1686      is required to:
             1687          (A) capitalize the tangible personal property or product transferred electronically for
             1688      financial reporting purposes; and
             1689          (B) account for the lease payments as payments made under a financing arrangement.
             1690          (97) "Sales price" is as defined in Subsection (82).
             1691          (98) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1692      amounts charged by a school:
             1693          (i) sales that are directly related to the school's educational functions or activities
             1694      including:
             1695          (A) the sale of:
             1696          (I) textbooks;
             1697          (II) textbook fees;
             1698          (III) laboratory fees;
             1699          (IV) laboratory supplies; or
             1700          (V) safety equipment;
             1701          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1702      that:
             1703          (I) a student is specifically required to wear as a condition of participation in a
             1704      school-related event or school-related activity; and
             1705          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1706      place of ordinary clothing;
             1707          (C) sales of the following if the net or gross revenues generated by the sales are
             1708      deposited into a school district fund or school fund dedicated to school meals:
             1709          (I) food and food ingredients; or


             1710          (II) prepared food; or
             1711          (D) transportation charges for official school activities; or
             1712          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1713      event or school-related activity.
             1714          (b) "Sales relating to schools" does not include:
             1715          (i) bookstore sales of items that are not educational materials or supplies;
             1716          (ii) except as provided in Subsection (98)(a)(i)(B):
             1717          (A) clothing;
             1718          (B) clothing accessories or equipment;
             1719          (C) protective equipment; or
             1720          (D) sports or recreational equipment; or
             1721          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1722      event or school-related activity if the amounts paid or charged are passed through to a person:
             1723          (A) other than a:
             1724          (I) school;
             1725          (II) nonprofit organization authorized by a school board or a governing body of a
             1726      private school to organize and direct a competitive secondary school activity; or
             1727          (III) nonprofit association authorized by a school board or a governing body of a
             1728      private school to organize and direct a competitive secondary school activity; and
             1729          (B) that is required to collect sales and use taxes under this chapter.
             1730          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1731      commission may make rules defining the term "passed through."
             1732          (99) For purposes of this section and Section 59-12-104 , "school":
             1733          (a) means:
             1734          (i) an elementary school or a secondary school that:
             1735          (A) is a:
             1736          (I) public school; or
             1737          (II) private school; and


             1738          (B) provides instruction for one or more grades kindergarten through 12; or
             1739          (ii) a public school district; and
             1740          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1741          (100) "Seller" means a person that makes a sale, lease, or rental of:
             1742          (a) tangible personal property;
             1743          (b) a product transferred electronically; or
             1744          (c) a service.
             1745          (101) (a) "Semiconductor fabricating, processing, research, or development materials"
             1746      means tangible personal property or a product transferred electronically if the tangible personal
             1747      property or product transferred electronically is:
             1748          (i) used primarily in the process of:
             1749          (A) (I) manufacturing a semiconductor;
             1750          (II) fabricating a semiconductor; or
             1751          (III) research or development of a:
             1752          (Aa) semiconductor; or
             1753          (Bb) semiconductor manufacturing process; or
             1754          (B) maintaining an environment suitable for a semiconductor; or
             1755          (ii) consumed primarily in the process of:
             1756          (A) (I) manufacturing a semiconductor;
             1757          (II) fabricating a semiconductor; or
             1758          (III) research or development of a:
             1759          (Aa) semiconductor; or
             1760          (Bb) semiconductor manufacturing process; or
             1761          (B) maintaining an environment suitable for a semiconductor.
             1762          (b) "Semiconductor fabricating, processing, research, or development materials"
             1763      includes:
             1764          (i) parts used in the repairs or renovations of tangible personal property or a product
             1765      transferred electronically described in Subsection (101)(a); or


             1766          (ii) a chemical, catalyst, or other material used to:
             1767          (A) produce or induce in a semiconductor a:
             1768          (I) chemical change; or
             1769          (II) physical change;
             1770          (B) remove impurities from a semiconductor; or
             1771          (C) improve the marketable condition of a semiconductor.
             1772          (102) "Senior citizen center" means a facility having the primary purpose of providing
             1773      services to the aged as defined in Section 62A-3-101 .
             1774          (103) "Simplified electronic return" means the electronic return:
             1775          (a) described in Section 318(C) of the agreement; and
             1776          (b) approved by the governing board of the agreement.
             1777          (104) "Solar energy" means the sun used as the sole source of energy for producing
             1778      electricity.
             1779          (105) (a) "Sports or recreational equipment" means an item:
             1780          (i) designed for human use; and
             1781          (ii) that is:
             1782          (A) worn in conjunction with:
             1783          (I) an athletic activity; or
             1784          (II) a recreational activity; and
             1785          (B) not suitable for general use.
             1786          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1787      the commission shall make rules:
             1788          (i) listing the items that constitute "sports or recreational equipment"; and
             1789          (ii) that are consistent with the list of items that constitute "sports or recreational
             1790      equipment" under the agreement.
             1791          (106) "State" means the state of Utah, its departments, and agencies.
             1792          (107) "Storage" means any keeping or retention of tangible personal property or any
             1793      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except


             1794      sale in the regular course of business.
             1795          (108) (a) Except as provided in Subsection (108)(c), " tangible personal property"
             1796      means personal property that:
             1797          (i) may be:
             1798          (A) seen;
             1799          (B) weighed;
             1800          (C) measured;
             1801          (D) felt; or
             1802          (E) touched; or
             1803          (ii) is in any manner perceptible to the senses.
             1804          (b) "Tangible personal property" includes:
             1805          (i) electricity;
             1806          (ii) water;
             1807          (iii) gas;
             1808          (iv) steam; or
             1809          (v) prewritten computer software.
             1810          (c) "Tangible personal property" does not include a product that is transferred
             1811      electronically.
             1812          (d) "Tangible personal property" does not include the following if attached to real
             1813      property, regardless of whether the attachment to real property is only through a line that
             1814      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by
             1815      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1816      Rulemaking Act:
             1817          (i) a hot water heater;
             1818          (ii) a water softener system; or
             1819          (iii) a water filtration system.
             1820          (109) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1821      and require further processing other than mechanical blending before becoming finished


             1822      petroleum products.
             1823          (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1824      software" means an item listed in Subsection (110)(b) if that item is purchased or leased
             1825      primarily to enable or facilitate one or more of the following to function:
             1826          (i) telecommunications switching or routing equipment, machinery, or software; or
             1827          (ii) telecommunications transmission equipment, machinery, or software.
             1828          (b) The following apply to Subsection (110)(a):
             1829          (i) a pole;
             1830          (ii) software;
             1831          (iii) a supplementary power supply;
             1832          (iv) temperature or environmental equipment or machinery;
             1833          (v) test equipment;
             1834          (vi) a tower; or
             1835          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1836      Subsections (110)(b)(i) through (vi) as determined by the commission by rule made in
             1837      accordance with Subsection (110)(c).
             1838          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1839      commission may by rule define what constitutes equipment, machinery, or software that
             1840      functions similarly to an item listed in Subsections (110)(b)(i) through (vi).
             1841          (111) "Telecommunications equipment, machinery, or software required for 911
             1842      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1843      Sec. 20.18.
             1844          (112) "Telecommunications maintenance or repair equipment, machinery, or software"
             1845      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1846      one or more of the following, regardless of whether the equipment, machinery, or software is
             1847      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1848      following:
             1849          (a) telecommunications enabling or facilitating equipment, machinery, or software;


             1850          (b) telecommunications switching or routing equipment, machinery, or software; or
             1851          (c) telecommunications transmission equipment, machinery, or software.
             1852          (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1853      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1854      among or between points.
             1855          (b) "Telecommunications service" includes:
             1856          (i) an electronic conveyance, routing, or transmission with respect to which a
             1857      computer processing application is used to act:
             1858          (A) on the code, form, or protocol of the content;
             1859          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1860          (C) regardless of whether the service:
             1861          (I) is referred to as voice over Internet protocol service; or
             1862          (II) is classified by the Federal Communications Commission as enhanced or value
             1863      added;
             1864          (ii) an 800 service;
             1865          (iii) a 900 service;
             1866          (iv) a fixed wireless service;
             1867          (v) a mobile wireless service;
             1868          (vi) a postpaid calling service;
             1869          (vii) a prepaid calling service;
             1870          (viii) a prepaid wireless calling service; or
             1871          (ix) a private communications service.
             1872          (c) "Telecommunications service" does not include:
             1873          (i) advertising, including directory advertising;
             1874          (ii) an ancillary service;
             1875          (iii) a billing and collection service provided to a third party;
             1876          (iv) a data processing and information service if:
             1877          (A) the data processing and information service allows data to be:


             1878          (I) (Aa) acquired;
             1879          (Bb) generated;
             1880          (Cc) processed;
             1881          (Dd) retrieved; or
             1882          (Ee) stored; and
             1883          (II) delivered by an electronic transmission to a purchaser; and
             1884          (B) the purchaser's primary purpose for the underlying transaction is the processed
             1885      data or information;
             1886          (v) installation or maintenance of the following on a customer's premises:
             1887          (A) equipment; or
             1888          (B) wiring;
             1889          (vi) Internet access service;
             1890          (vii) a paging service;
             1891          (viii) a product transferred electronically, including:
             1892          (A) music;
             1893          (B) reading material;
             1894          (C) a ring tone;
             1895          (D) software; or
             1896          (E) video;
             1897          (ix) a radio and television audio and video programming service:
             1898          (A) regardless of the medium; and
             1899          (B) including:
             1900          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1901      programming service by a programming service provider;
             1902          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1903          (III) audio and video programming services delivered by a commercial mobile radio
             1904      service provider as defined in 47 C.F.R. Sec. 20.3;
             1905          (x) a value-added nonvoice data service; or


             1906          (xi) tangible personal property.
             1907          (114) (a) " Telecommunications service provider" means a person that:
             1908          (i) owns, controls, operates, or manages a telecommunications service; and
             1909          (ii) engages in an activity described in Subsection (114)(a)(i) for the shared use with
             1910      or resale to any person of the telecommunications service.
             1911          (b) A person described in Subsection (114)(a) is a telecommunications service
             1912      provider whether or not the Public Service Commission of Utah regulates:
             1913          (i) that person; or
             1914          (ii) the telecommunications service that the person owns, controls, operates, or
             1915      manages.
             1916          (115) (a) "Telecommunications switching or routing equipment, machinery, or
             1917      software" means an item listed in Subsection (115)(b) if that item is purchased or leased
             1918      primarily for switching or routing:
             1919          (i) an ancillary service;
             1920          (ii) data communications;
             1921          (iii) voice communications; or
             1922          (iv) telecommunications service.
             1923          (b) The following apply to Subsection (115)(a):
             1924          (i) a bridge;
             1925          (ii) a computer;
             1926          (iii) a cross connect;
             1927          (iv) a modem;
             1928          (v) a multiplexer;
             1929          (vi) plug in circuitry;
             1930          (vii) a router;
             1931          (viii) software;
             1932          (ix) a switch; or
             1933          (x) equipment, machinery, or software that functions similarly to an item listed in


             1934      Subsections (115)(b)(i) through (ix) as determined by the commission by rule made in
             1935      accordance with Subsection (115)(c).
             1936          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1937      commission may by rule define what constitutes equipment, machinery, or software that
             1938      functions similarly to an item listed in Subsections (115)(b)(i) through (ix).
             1939          (116) (a) "Telecommunications transmission equipment, machinery, or software"
             1940      means an item listed in Subsection (116)(b) if that item is purchased or leased primarily for
             1941      sending, receiving, or transporting:
             1942          (i) an ancillary service;
             1943          (ii) data communications;
             1944          (iii) voice communications; or
             1945          (iv) telecommunications service.
             1946          (b) The following apply to Subsection (116)(a):
             1947          (i) an amplifier;
             1948          (ii) a cable;
             1949          (iii) a closure;
             1950          (iv) a conduit;
             1951          (v) a controller;
             1952          (vi) a duplexer;
             1953          (vii) a filter;
             1954          (viii) an input device;
             1955          (ix) an input/output device;
             1956          (x) an insulator;
             1957          (xi) microwave machinery or equipment;
             1958          (xii) an oscillator;
             1959          (xiii) an output device;
             1960          (xiv) a pedestal;
             1961          (xv) a power converter;


             1962          (xvi) a power supply;
             1963          (xvii) a radio channel;
             1964          (xviii) a radio receiver;
             1965          (xix) a radio transmitter;
             1966          (xx) a repeater;
             1967          (xxi) software;
             1968          (xxii) a terminal;
             1969          (xxiii) a timing unit;
             1970          (xxiv) a transformer;
             1971          (xxv) a wire; or
             1972          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1973      Subsections (116)(b)(i) through (xxv) as determined by the commission by rule made in
             1974      accordance with Subsection (116)(c).
             1975          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1976      commission may by rule define what constitutes equipment, machinery, or software that
             1977      functions similarly to an item listed in Subsections (116)(b)(i) through (xxv).
             1978          (117) "Tobacco" means:
             1979          (a) a cigarette;
             1980          (b) a cigar;
             1981          (c) chewing tobacco;
             1982          (d) pipe tobacco; or
             1983          (e) any other item that contains tobacco.
             1984          (118) "Unassisted amusement device" means an amusement device, skill device, or
             1985      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1986      the amusement device, skill device, or ride device.
             1987          (119) (a) "Use" means the exercise of any right or power over tangible personal
             1988      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1989      incident to the ownership or the leasing of that tangible personal property, product transferred


             1990      electronically, or service.
             1991          (b) "Use" does not include the sale, display, demonstration, or trial of tangible
             1992      personal property, a product transferred electronically, or a service in the regular course of
             1993      business and held for resale.
             1994          (120) "Value-added nonvoice data service" means a service:
             1995          (a) that otherwise meets the definition of a telecommunications service except that a
             1996      computer processing application is used to act primarily for a purpose other than conveyance,
             1997      routing, or transmission; and
             1998          (b) with respect to which a computer processing application is used to act on data or
             1999      information:
             2000          (i) code;
             2001          (ii) content;
             2002          (iii) form; or
             2003          (iv) protocol.
             2004          (121) (a) Subject to Subsection (121)(b), "vehicle" means the following that are
             2005      required to be titled, registered, or titled and registered:
             2006          (i) an aircraft as defined in Section 72-10-102 ;
             2007          (ii) a vehicle as defined in Section 41-1a-102 ;
             2008          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2009          (iv) a vessel as defined in Section 41-1a-102 .
             2010          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             2011          (i) a vehicle described in Subsection (121)(a); or
             2012          (ii) (A) a locomotive;
             2013          (B) a freight car;
             2014          (C) railroad work equipment; or
             2015          (D) other railroad rolling stock.
             2016          (122) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             2017      exchanging a vehicle as defined in Subsection (121).


             2018          (123) (a) "Vertical service" means an ancillary service that:
             2019          (i) is offered in connection with one or more telecommunications services; and
             2020          (ii) offers an advanced calling feature that allows a customer to:
             2021          (A) identify a caller; and
             2022          (B) manage multiple calls and call connections.
             2023          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2024      conference bridging service.
             2025          (124) (a) "Voice mail service" means an ancillary service that enables a customer to
             2026      receive, send, or store a recorded message.
             2027          (b) "Voice mail service" does not include a vertical service that a customer is required
             2028      to have in order to utilize a voice mail service.
             2029          (125) (a) Except as provided in Subsection (125)(b), "waste energy facility" means a
             2030      facility that generates electricity:
             2031          (i) using as the primary source of energy waste materials that would be placed in a
             2032      landfill or refuse pit if it were not used to generate electricity, including:
             2033          (A) tires;
             2034          (B) waste coal; or
             2035          (C) oil shale; and
             2036          (ii) in amounts greater than actually required for the operation of the facility.
             2037          (b) "Waste energy facility" does not include a facility that incinerates:
             2038          (i) municipal solid waste;
             2039          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             2040          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2041          (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2042          (127) "Wind energy" means wind used as the sole source of energy to produce
             2043      electricity.
             2044          (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             2045      location by the United States Postal Service.


             2046          Section 4. Section 59-12-103 is amended to read:
             2047           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and
             2048      use tax revenues.
             2049          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             2050      charged for the following transactions:
             2051          (a) retail sales of tangible personal property made within the state;
             2052          (b) amounts paid for:
             2053          (i) telecommunications service, other than mobile telecommunications service, that
             2054      originates and terminates within the boundaries of this state;
             2055          (ii) mobile telecommunications service that originates and terminates within the
             2056      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             2057      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             2058          (iii) an ancillary service associated with a:
             2059          (A) telecommunications service described in Subsection (1)(b)(i); or
             2060          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             2061          (c) sales of the following for commercial use:
             2062          (i) gas;
             2063          (ii) electricity;
             2064          (iii) heat;
             2065          (iv) coal;
             2066          (v) fuel oil; or
             2067          (vi) other fuels;
             2068          (d) sales of the following for residential use:
             2069          (i) gas;
             2070          (ii) electricity;
             2071          (iii) heat;
             2072          (iv) coal;
             2073          (v) fuel oil; or


             2074          (vi) other fuels;
             2075          (e) sales of prepared food;
             2076          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             2077      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             2078      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             2079      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed
             2080      circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf,
             2081      golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             2082      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             2083      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             2084      exhibition, cultural, or athletic activity;
             2085          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             2086      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             2087          (i) the tangible personal property; and
             2088          (ii) parts used in the repairs or renovations of the tangible personal property described
             2089      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             2090      of that tangible personal property;
             2091          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             2092      assisted cleaning or washing of tangible personal property;
             2093          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             2094      accommodations and services that are regularly rented for less than 30 consecutive days;
             2095          (j) amounts paid or charged for laundry or dry cleaning services;
             2096          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             2097      this state the tangible personal property is:
             2098          (i) stored;
             2099          (ii) used; or
             2100          (iii) otherwise consumed;
             2101          (l) amounts paid or charged for tangible personal property if within this state the


             2102      tangible personal property is:
             2103          (i) stored;
             2104          (ii) used; or
             2105          (iii) consumed; and
             2106          [(m) amounts paid or charged for prepaid telephone calling cards; and]
             2107          [(n)] (m) amounts paid or charged for a sale:
             2108          (i) (A) of a product that:
             2109          (I) is transferred electronically; and
             2110          (II) would be subject to a tax under this chapter if the product was transferred in a
             2111      manner other than electronically; or
             2112          (B) of a repair or renovation of a product that:
             2113          (I) is transferred electronically; and
             2114          (II) would be subject to a tax under this chapter if the product was transferred in a
             2115      manner other than electronically; and
             2116          (ii) regardless of whether the sale provides:
             2117          (A) a right of permanent use of the product; or
             2118          (B) a right to use the product that is less than a permanent use, including a right:
             2119          (I) for a definite or specified length of time; and
             2120          (II) that terminates upon the occurrence of a condition.
             2121          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             2122      is imposed on a transaction described in Subsection (1) equal to the sum of:
             2123          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             2124          (A) 4.70%; and
             2125          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             2126      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             2127      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             2128      State Sales and Use Tax Act; and
             2129          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales


             2130      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             2131      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             2132      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             2133          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2134      transaction under this chapter other than this part.
             2135          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is
             2136      imposed on a transaction described in Subsection (1)(d) equal to the sum of:
             2137          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             2138          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2139      transaction under this chapter other than this part.
             2140          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is
             2141      imposed on amounts paid or charged for food and food ingredients equal to the sum of:
             2142          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             2143      a tax rate of 1.75%; and
             2144          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2145      amounts paid or charged for food and food ingredients under this chapter other than this part.
             2146          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             2147      tangible personal property other than food and food ingredients, a state tax and a local tax is
             2148      imposed on the entire bundled transaction equal to the sum of:
             2149          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             2150          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             2151          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             2152      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             2153      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             2154      Additional State Sales and Use Tax Act; and
             2155          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             2156      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             2157      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in


             2158      which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             2159          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             2160      described in Subsection (2)(a)(ii).
             2161          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             2162      transaction described in Subsection (2)(d)(i):
             2163          (A) if the sales price of the bundled transaction is attributable to tangible personal
             2164      property, a product, or a service that is subject to taxation under this chapter and tangible
             2165      personal property, a product, or service that is not subject to taxation under this chapter, the
             2166      entire bundled transaction is subject to taxation under this chapter unless:
             2167          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             2168      personal property, product, or service that is not subject to taxation under this chapter from the
             2169      books and records the seller keeps in the seller's regular course of business; or
             2170          (II) state or federal law provides otherwise; or
             2171          (B) if the sales price of a bundled transaction is attributable to two or more items of
             2172      tangible personal property, products, or services that are subject to taxation under this chapter
             2173      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             2174      higher tax rate unless:
             2175          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             2176      personal property, product, or service that is subject to taxation under this chapter at the lower
             2177      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             2178          (II) state or federal law provides otherwise.
             2179          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             2180      seller's regular course of business includes books and records the seller keeps in the regular
             2181      course of business for nontax purposes.
             2182          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             2183      rate imposed under the following shall take effect on the first day of a calendar quarter:
             2184          (i) Subsection (2)(a)(i)(A);
             2185          (ii) Subsection (2)(b)(i);


             2186          (iii) Subsection (2)(c)(i); or
             2187          (iv) Subsection (2)(d)(i)(A)(I).
             2188          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
             2189      begins after the effective date of the tax rate increase if the billing period for the transaction
             2190      begins before the effective date of a tax rate increase imposed under:
             2191          (A) Subsection (2)(a)(i)(A);
             2192          (B) Subsection (2)(b)(i);
             2193          (C) Subsection (2)(c)(i); or
             2194          (D) Subsection (2)(d)(i)(A)(I).
             2195          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             2196      billing period that began before the effective date of the repeal of the tax or the tax rate
             2197      decrease if the billing period for the transaction begins before the effective date of the repeal
             2198      of the tax or the tax rate decrease imposed under:
             2199          (A) Subsection (2)(a)(i)(A);
             2200          (B) Subsection (2)(b)(i);
             2201          (C) Subsection (2)(c)(i); or
             2202          (D) Subsection (2)(d)(i)(A)(I).
             2203          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             2204      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             2205      or change in a tax rate takes effect:
             2206          (A) on the first day of a calendar quarter; and
             2207          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             2208          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             2209          (A) Subsection (2)(a)(i)(A);
             2210          (B) Subsection (2)(b)(i);
             2211          (C) Subsection (2)(c)(i); or
             2212          (D) Subsection (2)(d)(i)(A)(I).
             2213          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,


             2214      the commission may by rule define the term "catalogue sale."
             2215          (3) (a) The following state taxes shall be deposited into the General Fund:
             2216          (i) the tax imposed by Subsection (2)(a)(i)(A);
             2217          (ii) the tax imposed by Subsection (2)(b)(i);
             2218          (iii) the tax imposed by Subsection (2)(c)(i); or
             2219          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             2220          (b) The following local taxes shall be distributed to a county, city, or town as provided
             2221      in this chapter:
             2222          (i) the tax imposed by Subsection (2)(a)(ii);
             2223          (ii) the tax imposed by Subsection (2)(b)(ii);
             2224          (iii) the tax imposed by Subsection (2)(c)(ii); and
             2225          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             2226          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July
             2227      1, 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             2228      through (g):
             2229          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             2230          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             2231          (B) for the fiscal year; or
             2232          (ii) $17,500,000.
             2233          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             2234      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             2235      Department of Natural Resources to:
             2236          (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
             2237      protect sensitive plant and animal species; or
             2238          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             2239      act, to political subdivisions of the state to implement the measures described in Subsections
             2240      63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
             2241          (ii) Money transferred to the Department of Natural Resources under Subsection


             2242      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             2243      person to list or attempt to have listed a species as threatened or endangered under the
             2244      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             2245          (iii) At the end of each fiscal year:
             2246          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             2247      Conservation and Development Fund created in Section 73-10-24 ;
             2248          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             2249      Program Subaccount created in Section 73-10c-5 ; and
             2250          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             2251      Program Subaccount created in Section 73-10c-5 .
             2252          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             2253      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             2254      created in Section 4-18-6 .
             2255          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             2256      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             2257      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             2258      water rights.
             2259          (ii) At the end of each fiscal year:
             2260          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             2261      Conservation and Development Fund created in Section 73-10-24 ;
             2262          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             2263      Program Subaccount created in Section 73-10c-5 ; and
             2264          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             2265      Program Subaccount created in Section 73-10c-5 .
             2266          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount
             2267      described in Subsection (4)(a) shall be deposited in the Water Resources Conservation and
             2268      Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
             2269          (ii) In addition to the uses allowed of the Water Resources Conservation and


             2270      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             2271      Development Fund may also be used to:
             2272          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             2273      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             2274      quantifying surface and ground water resources and describing the hydrologic systems of an
             2275      area in sufficient detail so as to enable local and state resource managers to plan for and
             2276      accommodate growth in water use without jeopardizing the resource;
             2277          (B) fund state required dam safety improvements; and
             2278          (C) protect the state's interest in interstate water compact allocations, including the
             2279      hiring of technical and legal staff.
             2280          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             2281      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             2282      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             2283          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             2284      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             2285      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             2286          (i) provide for the installation and repair of collection, treatment, storage, and
             2287      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             2288          (ii) develop underground sources of water, including springs and wells; and
             2289          (iii) develop surface water sources.
             2290          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July
             2291      1, 2006, the difference between the following amounts shall be expended as provided in this
             2292      Subsection (5), if that difference is greater than $1:
             2293          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             2294      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             2295          (ii) $17,500,000.
             2296          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             2297          (A) transferred each fiscal year to the Department of Natural Resources as dedicated


             2298      credits; and
             2299          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             2300      restoration.
             2301          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits
             2302      described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and
             2303      Development Fund created in Section 73-10-24 .
             2304          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             2305      remaining difference described in Subsection (5)(a) shall be:
             2306          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             2307      credits; and
             2308          (B) expended by the Division of Water Resources for cloud-seeding projects
             2309      authorized by Title 73, Chapter 15, Modification of Weather.
             2310          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits
             2311      described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and
             2312      Development Fund created in Section 73-10-24 .
             2313          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             2314      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             2315      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             2316      Division of Water Resources for:
             2317          (i) preconstruction costs:
             2318          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             2319      26, Bear River Development Act; and
             2320          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             2321      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             2322          (ii) the cost of employing a civil engineer to oversee any project authorized by Title
             2323      73, Chapter 26, Bear River Development Act;
             2324          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             2325      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and


             2326          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             2327      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             2328          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             2329      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             2330          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             2331      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             2332      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             2333      incurred for employing additional technical staff for the administration of water rights.
             2334          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             2335      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             2336      Fund created in Section 73-10-24 .
             2337          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             2338      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a
             2339      1/16% tax rate on the transactions described in Subsection (1) for the fiscal year shall be
             2340      deposited in the Transportation Fund created by Section 72-2-102 .
             2341          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             2342      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             2343      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             2344      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             2345      transactions under Subsection (1).
             2346          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             2347      have been paid off and the highway projects completed that are intended to be paid from
             2348      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             2349      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             2350      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             2351      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             2352      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             2353          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in


             2354      Subsection (7)(a), and until Subsection (8)(b) applies, for a fiscal year beginning on or after
             2355      July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
             2356      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             2357      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             2358      portion of the approximately 17% of sales and use tax revenues generated annually by the
             2359      sales and use tax on vehicles and vehicle-related products:
             2360          (i) the tax imposed by Subsection (2)(a)(i)(A);
             2361          (ii) the tax imposed by Subsection (2)(b)(i);
             2362          (iii) the tax imposed by Subsection (2)(c)(i); and
             2363          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             2364          (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             2365      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             2366      highway projects completed that are intended to be paid from revenues deposited in the
             2367      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             2368      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             2369      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             2370      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following
             2371      taxes, which represents a portion of the approximately 17% of sales and use tax revenues
             2372      generated annually by the sales and use tax on vehicles and vehicle-related products:
             2373          (i) the tax imposed by Subsection (2)(a)(i)(A);
             2374          (ii) the tax imposed by Subsection (2)(b)(i);
             2375          (iii) the tax imposed by Subsection (2)(c)(i); and
             2376          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             2377          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             2378      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             2379      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             2380          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             2381      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit


             2382      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             2383      Critical Highway Needs Fund created by Section 72-2-125 .
             2384          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             2385      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             2386      have been paid off and the highway projects completed that are included in the prioritized
             2387      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             2388      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             2389      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             2390      of 2005 created by Section 72-2-124 .
             2391          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             2392      2008-09, $915,000 shall be deposited into the Qualified Emergency Food Agencies Fund
             2393      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             2394          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             2395      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             2396      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             2397      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2398      Subsection (1).
             2399          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             2400      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             2401      food and food ingredients, except for tax revenue generated by a bundled transaction
             2402      attributable to food and food ingredients and tangible personal property other than food and
             2403      food ingredients described in Subsection (2)(e).
             2404          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             2405      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the
             2406      general obligation bonds authorized by Section 63B-16-101 have been paid off and the
             2407      highway projects completed that are included in the prioritized project list under Subsection
             2408      72-2-125 (4) as determined in accordance with Subsection 72-2-125 (6), the Division of
             2409      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section


             2410      72-2-124 the amount of tax revenue generated by a .025% tax rate on the transactions
             2411      described in Subsection (1).
             2412          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             2413      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             2414      charged for food and food ingredients, except for tax revenue generated by a bundled
             2415      transaction attributable to food and food ingredients and tangible personal property other than
             2416      food and food ingredients described in Subsection (2)(e).
             2417          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             2418      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             2419      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             2420      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             2421      chokepoints in construction management.
             2422          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             2423      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             2424      food ingredients, except for tax revenue generated by a bundled transaction attributable to
             2425      food and food ingredients and tangible personal property other than food and food ingredients
             2426      described in Subsection (2)(e).
             2427          Section 5. Section 59-12-104 is amended to read:
             2428           59-12-104. Exemptions.
             2429          The following sales and uses are exempt from the taxes imposed by this chapter:
             2430          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             2431      under Chapter 13, Motor and Special Fuel Tax Act;
             2432          (2) sales to the state, its institutions, and its political subdivisions; however, this
             2433      exemption does not apply to sales of:
             2434          (a) construction materials except:
             2435          (i) construction materials purchased by or on behalf of institutions of the public
             2436      education system as defined in Utah Constitution Article X, Section 2, provided the
             2437      construction materials are clearly identified and segregated and installed or converted to real


             2438      property which is owned by institutions of the public education system; and
             2439          (ii) construction materials purchased by the state, its institutions, or its political
             2440      subdivisions which are installed or converted to real property by employees of the state, its
             2441      institutions, or its political subdivisions; or
             2442          (b) tangible personal property in connection with the construction, operation,
             2443      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             2444      providing additional project capacity, as defined in Section 11-13-103 ;
             2445          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             2446          (i) the proceeds of each sale do not exceed $1; and
             2447          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             2448      the cost of the item described in Subsection (3)(b) as goods consumed; and
             2449          (b) Subsection (3)(a) applies to:
             2450          (i) food and food ingredients; or
             2451          (ii) prepared food;
             2452          (4) sales of the following to a commercial airline carrier for in-flight consumption:
             2453          (a) food and food ingredients;
             2454          (b) prepared food; or
             2455          (c) services related to Subsection (4)(a) or (b);
             2456          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             2457      and equipment:
             2458          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             2459      North American Industry Classification System of the federal Executive Office of the
             2460      President, Office of Management and Budget; and
             2461          (II) for:
             2462          (Aa) installation in an aircraft, including services relating to the installation of parts or
             2463      equipment in the aircraft;
             2464          (Bb) renovation of an aircraft; or
             2465          (Cc) repair of an aircraft; or


             2466          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             2467      commerce; or
             2468          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             2469      aircraft operated by a common carrier in interstate or foreign commerce; and
             2470          (b) notwithstanding the time period of Subsection 59-12-110 (2) for filing for a refund,
             2471      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             2472      refund:
             2473          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             2474          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             2475          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             2476      the sale prior to filing for the refund;
             2477          (iv) for sales and use taxes paid under this chapter on the sale;
             2478          (v) in accordance with Section 59-12-110 ; and
             2479          (vi) subject to any extension allowed for filing for a refund under Section 59-12-110 ,
             2480      if the person files for the refund on or before September 30, 2011;
             2481          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             2482      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             2483      exhibitor, distributor, or commercial television or radio broadcaster;
             2484          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             2485      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             2486      washing of tangible personal property;
             2487          (b) if a seller that sells at the same business location assisted cleaning or washing of
             2488      tangible personal property and cleaning or washing of tangible personal property that is not
             2489      assisted cleaning or washing of tangible personal property, the exemption described in
             2490      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             2491      or washing of the tangible personal property; and
             2492          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             2493      Utah Administrative Rulemaking Act, the commission may make rules:


             2494          (i) governing the circumstances under which sales are at the same business location;
             2495      and
             2496          (ii) establishing the procedures and requirements for a seller to separately account for
             2497      sales of assisted cleaning or washing of tangible personal property;
             2498          (8) sales made to or by religious or charitable institutions in the conduct of their
             2499      regular religious or charitable functions and activities, if the requirements of Section
             2500      59-12-104.1 are fulfilled;
             2501          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws
             2502      of this state if the vehicle is:
             2503          (a) not registered in this state; and
             2504          (b) (i) not used in this state; or
             2505          (ii) used in this state:
             2506          (A) if the vehicle is not used to conduct business, for a time period that does not
             2507      exceed the longer of:
             2508          (I) 30 days in any calendar year; or
             2509          (II) the time period necessary to transport the vehicle to the borders of this state; or
             2510          (B) if the vehicle is used to conduct business, for the time period necessary to
             2511      transport the vehicle to the borders of this state;
             2512          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             2513          (i) the item is intended for human use; and
             2514          (ii) (A) a prescription was issued for the item; or
             2515          (B) the item was purchased by a hospital or other medical facility; and
             2516          (b) (i) Subsection (10)(a) applies to:
             2517          (A) a drug;
             2518          (B) a syringe; or
             2519          (C) a stoma supply; and
             2520          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2521      the commission may by rule define the terms:


             2522          (A) "syringe"; or
             2523          (B) "stoma supply";
             2524          (11) sales or use of property, materials, or services used in the construction of or
             2525      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             2526          (12) (a) sales of an item described in Subsection (12)(c) served by:
             2527          (i) the following if the item described in Subsection (12)(c) is not available to the
             2528      general public:
             2529          (A) a church; or
             2530          (B) a charitable institution;
             2531          (ii) an institution of higher education if:
             2532          (A) the item described in Subsection (12)(c) is not available to the general public; or
             2533          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             2534      offered by the institution of higher education; or
             2535          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             2536          (i) a medical facility; or
             2537          (ii) a nursing facility; and
             2538          (c) Subsections (12)(a) and (b) apply to:
             2539          (i) food and food ingredients;
             2540          (ii) prepared food; or
             2541          (iii) alcoholic beverages;
             2542          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal
             2543      property or a product transferred electronically by a person:
             2544          (i) regardless of the number of transactions involving the sale of that tangible personal
             2545      property or product transferred electronically by that person; and
             2546          (ii) not regularly engaged in the business of selling that type of tangible personal
             2547      property or product transferred electronically;
             2548          (b) this Subsection (13) does not apply if:
             2549          (i) the sale is one of a series of sales of a character to indicate that the person is


             2550      regularly engaged in the business of selling that type of tangible personal property or product
             2551      transferred electronically;
             2552          (ii) the person holds that person out as regularly engaged in the business of selling that
             2553      type of tangible personal property or product transferred electronically;
             2554          (iii) the person sells an item of tangible personal property or product transferred
             2555      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             2556          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             2557      this state in which case the tax is based upon:
             2558          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             2559      sold; or
             2560          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             2561      value of the vehicle or vessel being sold at the time of the sale as determined by the
             2562      commission; and
             2563          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2564      commission shall make rules establishing the circumstances under which:
             2565          (i) a person is regularly engaged in the business of selling a type of tangible personal
             2566      property or product transferred electronically;
             2567          (ii) a sale of tangible personal property or a product transferred electronically is one of
             2568      a series of sales of a character to indicate that a person is regularly engaged in the business of
             2569      selling that type of tangible personal property or product transferred electronically; or
             2570          (iii) a person holds that person out as regularly engaged in the business of selling a
             2571      type of tangible personal property or product transferred electronically;
             2572          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             2573      July 1, 2006, for a purchase or lease by a manufacturing facility [other than] except for a
             2574      cogeneration facility, for the following:
             2575          (i) machinery and equipment that:
             2576          (A) [is] are used:
             2577          (I) for a manufacturing facility [other than] except for a manufacturing facility that is a


             2578      scrap recycler described in Subsection 59-12-102 (52)(b):
             2579          (Aa) in the manufacturing process; [and]
             2580          (Bb) to manufacture an item sold as tangible personal property; and
             2581          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this
             2582      Subsection (14)(a)(i)(A)(I) in the state; or
             2583          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             2584      59-12-102 (52)(b)[,]:
             2585          (Aa) to process an item sold as tangible personal property; and
             2586          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this
             2587      Subsection (14)(a)(i)(A)(II) in the state; and
             2588          (B) [has] have an economic life of three or more years; and
             2589          (ii) normal operating repair or replacement parts that:
             2590          (A) have an economic life of three or more years; and
             2591          (B) are used:
             2592          (I) for a manufacturing facility [in the state other than] except for a manufacturing
             2593      facility that is a scrap recycler described in Subsection 59-12-102 (52)(b)[,]:
             2594          (Aa) in the manufacturing process; and
             2595          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             2596      state; or
             2597          (II) for a manufacturing facility [in the state] that is a scrap recycler described in
             2598      Subsection 59-12-102 (52)(b)[,]:
             2599          (Aa) to process an item sold as tangible personal property; and
             2600          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             2601      state;
             2602          (b) [(i)] amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             2603      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             2604      for the following:
             2605          [(A)] (i) machinery and equipment that:


             2606          [(I) is] (A) are used:
             2607          [(Aa)] (I) in the manufacturing process; [and]
             2608          [(Bb)] (II) to manufacture an item sold as tangible personal property; and
             2609          (III) beginning on July 1, 2009, in a manufacturing facility described in this
             2610      Subsection (14)(b) in the state; and
             2611          [(II) has] (B) have an economic life of three or more years; and
             2612          [(B)] (ii) normal operating repair or replacement parts that:
             2613          [(I)] (A) are used:
             2614          (I) in the manufacturing process; and
             2615          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             2616          [(II)] (B) have an economic life of three or more years; [and]
             2617          [(ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
             2618      2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
             2619      claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:]
             2620          [(A) for sales and use taxes paid under this chapter on the purchase or lease payment;
             2621      and]
             2622          [(B) in accordance with Section 59-12-110 ;]
             2623          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             2624      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             2625      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             2626      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             2627      of the 2002 North American Industry Classification System of the federal Executive Office of
             2628      the President, Office of Management and Budget:
             2629          (i) machinery and equipment that:
             2630          (A) are used [in]:
             2631          (I) (Aa) in the production process, other than the production of real property; or
             2632          [(II)] (Bb) in research and development; and
             2633          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)


             2634      in the state; and
             2635          (B) have an economic life of three or more years; and
             2636          (ii) normal operating repair or replacement parts that:
             2637          (A) have an economic life of three or more years; and
             2638          (B) are used in:
             2639          (I) (Aa) the production process, [other than] except for the production of real
             2640      property[, in]; and
             2641          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             2642          (II) (Aa) research and development; and
             2643          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             2644          (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             2645      Utah Administrative Rulemaking Act, the commission:
             2646          (i) shall by rule define the term "establishment"; and
             2647          (ii) may by rule define what constitutes:
             2648          (A) processing an item sold as tangible personal property;
             2649          (B) the production process, [other than] except for the production of real property; or
             2650          (C) research and development; and
             2651          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             2652      commission shall:
             2653          (i) review the exemptions described in this Subsection (14) and make
             2654      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             2655      exemptions should be continued, modified, or repealed; and
             2656          (ii) include in its report:
             2657          (A) the cost of the exemptions;
             2658          (B) the purpose and effectiveness of the exemptions; and
             2659          (C) the benefits of the exemptions to the state;
             2660          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             2661          (i) tooling;


             2662          (ii) special tooling;
             2663          (iii) support equipment;
             2664          (iv) special test equipment; or
             2665          (v) parts used in the repairs or renovations of tooling or equipment described in
             2666      Subsections (15)(a)(i) through (iv); and
             2667          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             2668          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             2669      performance of any aerospace or electronics industry contract with the United States
             2670      government or any subcontract under that contract; and
             2671          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             2672      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             2673      by:
             2674          (A) a government identification tag placed on the tooling, equipment, or parts; or
             2675          (B) listing on a government-approved property record if placing a government
             2676      identification tag on the tooling, equipment, or parts is impractical;
             2677          (16) sales of newspapers or newspaper subscriptions;
             2678          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             2679      product transferred electronically traded in as full or part payment of the purchase price,
             2680      except that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle
             2681      dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
             2682          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             2683      vehicle being traded in; or
             2684          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             2685      fair market value of the vehicle being sold and the vehicle being traded in, as determined by
             2686      the commission; and
             2687          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             2688      following items of tangible personal property or products transferred electronically traded in as
             2689      full or part payment of the purchase price:


             2690          (i) money;
             2691          (ii) electricity;
             2692          (iii) water;
             2693          (iv) gas; or
             2694          (v) steam;
             2695          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal
             2696      property or a product transferred electronically used or consumed primarily and directly in
             2697      farming operations, regardless of whether the tangible personal property or product transferred
             2698      electronically:
             2699          (A) becomes part of real estate; or
             2700          (B) is installed by a:
             2701          (I) farmer;
             2702          (II) contractor; or
             2703          (III) subcontractor; or
             2704          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             2705      product transferred electronically if the tangible personal property or product transferred
             2706      electronically is exempt under Subsection (18)(a)(i); and
             2707          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             2708      subject to the taxes imposed by this chapter:
             2709          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             2710      incidental to farming:
             2711          (I) machinery;
             2712          (II) equipment;
             2713          (III) materials; or
             2714          (IV) supplies; and
             2715          (B) tangible personal property that is considered to be used in a manner that is
             2716      incidental to farming includes:
             2717          (I) hand tools; or


             2718          (II) maintenance and janitorial equipment and supplies;
             2719          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             2720      transferred electronically if the tangible personal property or product transferred electronically
             2721      is used in an activity other than farming; and
             2722          (B) tangible personal property or a product transferred electronically that is considered
             2723      to be used in an activity other than farming includes:
             2724          (I) office equipment and supplies; or
             2725          (II) equipment and supplies used in:
             2726          (Aa) the sale or distribution of farm products;
             2727          (Bb) research; or
             2728          (Cc) transportation; or
             2729          (iii) a vehicle required to be registered by the laws of this state during the period
             2730      ending two years after the date of the vehicle's purchase;
             2731          (19) sales of hay;
             2732          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             2733      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             2734      garden, farm, or other agricultural produce is sold by:
             2735          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             2736      agricultural produce;
             2737          (b) an employee of the producer described in Subsection (20)(a); or
             2738          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             2739          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             2740      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             2741          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             2742      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             2743      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             2744      manufacturer, processor, wholesaler, or retailer;
             2745          (23) a product stored in the state for resale;


             2746          (24) (a) purchases of a product if:
             2747          (i) the product is:
             2748          (A) purchased outside of this state;
             2749          (B) brought into this state:
             2750          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             2751          (II) by a nonresident person who is not living or working in this state at the time of the
             2752      purchase;
             2753          (C) used for the personal use or enjoyment of the nonresident person described in
             2754      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             2755          (D) not used in conducting business in this state; and
             2756          (ii) for:
             2757          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             2758      the product for a purpose for which the product is designed occurs outside of this state;
             2759          (B) a boat, the boat is registered outside of this state; or
             2760          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2761      outside of this state;
             2762          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             2763          (i) a lease or rental of a product; or
             2764          (ii) a sale of a vehicle exempt under Subsection (33); and
             2765          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             2766      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             2767      following:
             2768          (i) conducting business in this state if that phrase has the same meaning in this
             2769      Subsection (24) as in Subsection [(64)] (63);
             2770          (ii) the first use of a product if that phrase has the same meaning in this Subsection
             2771      (24) as in Subsection [(64)] (63); or
             2772          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             2773      this Subsection (24) as in Subsection [(64)] (63);


             2774          (25) a product purchased for resale in this state, in the regular course of business, either
             2775      in its original form or as an ingredient or component part of a manufactured or compounded
             2776      product;
             2777          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             2778      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             2779      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             2780      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             2781      Act;
             2782          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             2783      person for use in compounding a service taxable under the subsections;
             2784          (28) purchases made in accordance with the special supplemental nutrition program
             2785      for women, infants, and children established in 42 U.S.C. Sec. 1786;
             2786          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             2787      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or
             2788      ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial
             2789      Classification Manual of the federal Executive Office of the President, Office of Management
             2790      and Budget;
             2791          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             2792      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             2793          (a) not registered in this state; and
             2794          (b) (i) not used in this state; or
             2795          (ii) used in this state:
             2796          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             2797      time period that does not exceed the longer of:
             2798          (I) 30 days in any calendar year; or
             2799          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             2800      the borders of this state; or
             2801          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time


             2802      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             2803      state;
             2804          (31) sales of aircraft manufactured in Utah;
             2805          (32) amounts paid for the purchase of telecommunications service for purposes of
             2806      providing telecommunications service;
             2807          (33) sales, leases, or uses of the following:
             2808          (a) a vehicle by an authorized carrier; or
             2809          (b) tangible personal property that is installed on a vehicle:
             2810          (i) sold or leased to or used by an authorized carrier; and
             2811          (ii) before the vehicle is placed in service for the first time;
             2812          (34) (a) 45% of the sales price of any new manufactured home; and
             2813          (b) 100% of the sales price of any used manufactured home;
             2814          (35) sales relating to schools and fundraising sales;
             2815          (36) sales or rentals of durable medical equipment if:
             2816          (a) a person presents a prescription for the durable medical equipment; and
             2817          (b) the durable medical equipment is used for home use only;
             2818          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             2819      Section 72-11-102 ; and
             2820          (b) the commission shall by rule determine the method for calculating sales exempt
             2821      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             2822          (38) sales to a ski resort of:
             2823          (a) snowmaking equipment;
             2824          (b) ski slope grooming equipment;
             2825          (c) passenger ropeways as defined in Section 72-11-102 ; or
             2826          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             2827      described in Subsections (38)(a) through (c);
             2828          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial
             2829      use;


             2830          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             2831      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             2832      59-12-102 ;
             2833          (b) if a seller that sells or rents at the same business location the right to use or operate
             2834      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             2835      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             2836      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             2837      amusement, entertainment, or recreation for the assisted amusement devices; and
             2838          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             2839      Utah Administrative Rulemaking Act, the commission may make rules:
             2840          (i) governing the circumstances under which sales are at the same business location;
             2841      and
             2842          (ii) establishing the procedures and requirements for a seller to separately account for
             2843      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation
             2844      for assisted amusement devices;
             2845          (41) (a) sales of photocopies by:
             2846          (i) a governmental entity; or
             2847          (ii) an entity within the state system of public education, including:
             2848          (A) a school; or
             2849          (B) the State Board of Education; or
             2850          (b) sales of publications by a governmental entity;
             2851          (42) amounts paid for admission to an athletic event at an institution of higher
             2852      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             2853      20 U.S.C. Sec. 1681 et seq.;
             2854          [(43) sales of telecommunications service charged to a prepaid telephone calling card;]
             2855          [(44)] (43) (a) sales made to or by:
             2856          (i) an area agency on aging; or
             2857          (ii) a senior citizen center owned by a county, city, or town; or


             2858          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             2859          [(45)] (44) sales or leases of semiconductor fabricating, processing, research, or
             2860      development materials regardless of whether the semiconductor fabricating, processing,
             2861      research, or development materials:
             2862          (a) actually come into contact with a semiconductor; or
             2863          (b) ultimately become incorporated into real property;
             2864          [(46)] (45) an amount paid by or charged to a purchaser for accommodations and
             2865      services described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under
             2866      Section 59-12-104.2 ;
             2867          [(47)] (46) beginning on September 1, 2001, the lease or use of a vehicle issued a
             2868      temporary sports event registration certificate in accordance with Section 41-3-306 for the
             2869      event period specified on the temporary sports event registration certificate;
             2870          [(48)] (47) sales or uses of electricity, if the sales or uses are:
             2871          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             2872      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             2873      source, as designated in the tariff by the Public Service Commission of Utah; and
             2874          (b) for an amount of electricity that is:
             2875          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             2876      under the tariff described in Subsection [(48)] (47)(a); and
             2877          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             2878      Subsection [(48)] (47)(a) that may be purchased under the tariff described in Subsection [(48)]
             2879      (47)(a);
             2880          [(49)] (48) sales or rentals of mobility enhancing equipment if a person presents a
             2881      prescription for the mobility enhancing equipment;
             2882          [(50)] (49) sales of water in a:
             2883          (a) pipe;
             2884          (b) conduit;
             2885          (c) ditch; or


             2886          (d) reservoir;
             2887          [(51)] (50) sales of currency or coinage that constitute legal tender of the United States
             2888      or of a foreign nation;
             2889          [(52)] (51) (a) sales of an item described in Subsection [(52)] (51)(b) if the item:
             2890          (i) does not constitute legal tender of any nation; and
             2891          (ii) has a gold, silver, or platinum content of 80% or more; and
             2892          (b) Subsection [(52)] (51)(a) applies to a gold, silver, or platinum:
             2893          (i) ingot;
             2894          (ii) bar;
             2895          (iii) medallion; or
             2896          (iv) decorative coin;
             2897          [(53)] (52) amounts paid on a sale-leaseback transaction;
             2898          [(54)] (53) sales of a prosthetic device:
             2899          (a) for use on or in a human; and
             2900          (b) (i) for which a prescription is required; or
             2901          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             2902          [(55)] (54) (a) except as provided in Subsection [(55)] (54)(b), purchases, leases, or
             2903      rentals of machinery or equipment by an establishment described in Subsection [(55)] (54)(c)
             2904      if the machinery or equipment is primarily used in the production or postproduction of the
             2905      following media for commercial distribution:
             2906          (i) a motion picture;
             2907          (ii) a television program;
             2908          (iii) a movie made for television;
             2909          (iv) a music video;
             2910          (v) a commercial;
             2911          (vi) a documentary; or
             2912          (vii) a medium similar to Subsections [(55)] (54)(a)(i) through (vi) as determined by
             2913      the commission by administrative rule made in accordance with Subsection [(55)] (54)(d); or


             2914          (b) notwithstanding Subsection [(55)] (54)(a), purchases, leases, or rentals of
             2915      machinery or equipment by an establishment described in Subsection [(55)] (54)(c) that is
             2916      used for the production or postproduction of the following are subject to the taxes imposed by
             2917      this chapter:
             2918          (i) a live musical performance;
             2919          (ii) a live news program; or
             2920          (iii) a live sporting event;
             2921          (c) the following establishments listed in the 1997 North American Industry
             2922      Classification System of the federal Executive Office of the President, Office of Management
             2923      and Budget, apply to Subsections [(55)] (54)(a) and (b):
             2924          (i) NAICS Code 512110; or
             2925          (ii) NAICS Code 51219; and
             2926          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2927      the commission may by rule:
             2928          (i) prescribe what constitutes a medium similar to Subsections [(55)] (54)(a)(i)
             2929      through (vi); or
             2930          (ii) define:
             2931          (A) "commercial distribution";
             2932          (B) "live musical performance";
             2933          (C) "live news program"; or
             2934          (D) "live sporting event";
             2935          [(56)] (55) (a) leases of seven or more years or purchases made on or after July 1,
             2936      2004 but on or before June 30, 2019, of machinery or equipment that:
             2937          (i) is leased or purchased for or by a facility that:
             2938          (A) is a renewable energy production facility;
             2939          (B) is located in the state; and
             2940          (C) (I) becomes operational on or after July 1, 2004; or
             2941          (II) has its generation capacity increased by one or more megawatts on or after July 1,


             2942      2004 as a result of the use of the machinery or equipment;
             2943          (ii) has an economic life of five or more years; and
             2944          (iii) is used to make the facility or the increase in capacity of the facility described in
             2945      Subsection [(56)] (55)(a)(i) operational up to the point of interconnection with an existing
             2946      transmission grid including:
             2947          (A) a wind turbine;
             2948          (B) generating equipment;
             2949          (C) a control and monitoring system;
             2950          (D) a power line;
             2951          (E) substation equipment;
             2952          (F) lighting;
             2953          (G) fencing;
             2954          (H) pipes; or
             2955          (I) other equipment used for locating a power line or pole; and
             2956          (b) this Subsection [(56)] (55) does not apply to:
             2957          (i) machinery or equipment used in construction of:
             2958          (A) a new renewable energy production facility; or
             2959          (B) the increase in the capacity of a renewable energy production facility;
             2960          (ii) contracted services required for construction and routine maintenance activities;
             2961      and
             2962          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             2963      of the facility described in Subsection [(56)] (55)(a)(i)(C)(II), machinery or equipment used or
             2964      acquired after:
             2965          (A) the renewable energy production facility described in Subsection [(56)] (55)(a)(i)
             2966      is operational as described in Subsection [(56)] (55)(a)(iii); or
             2967          (B) the increased capacity described in Subsection [(56)] (55)(a)(i) is operational as
             2968      described in Subsection [(56)] (55)(a)(iii);
             2969          [(57)] (56) (a) leases of seven or more years or purchases made on or after July 1,


             2970      2004 but on or before June 30, 2019, of machinery or equipment that:
             2971          (i) is leased or purchased for or by a facility that:
             2972          (A) is a waste energy production facility;
             2973          (B) is located in the state; and
             2974          (C) (I) becomes operational on or after July 1, 2004; or
             2975          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             2976      2004 as a result of the use of the machinery or equipment;
             2977          (ii) has an economic life of five or more years; and
             2978          (iii) is used to make the facility or the increase in capacity of the facility described in
             2979      Subsection [(57)] (56)(a)(i) operational up to the point of interconnection with an existing
             2980      transmission grid including:
             2981          (A) generating equipment;
             2982          (B) a control and monitoring system;
             2983          (C) a power line;
             2984          (D) substation equipment;
             2985          (E) lighting;
             2986          (F) fencing;
             2987          (G) pipes; or
             2988          (H) other equipment used for locating a power line or pole; and
             2989          (b) this Subsection [(57)] (56) does not apply to:
             2990          (i) machinery or equipment used in construction of:
             2991          (A) a new waste energy facility; or
             2992          (B) the increase in the capacity of a waste energy facility;
             2993          (ii) contracted services required for construction and routine maintenance activities;
             2994      and
             2995          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             2996      described in Subsection [(57)] (56)(a)(i)(C)(II), machinery or equipment used or acquired
             2997      after:


             2998          (A) the waste energy facility described in Subsection [(57)] (56)(a)(i) is operational as
             2999      described in Subsection [(57)] (56)(a)(iii); or
             3000          (B) the increased capacity described in Subsection [(57)] (56)(a)(i) is operational as
             3001      described in Subsection [(57)] (56)(a)(iii);
             3002          [(58)] (57) (a) leases of five or more years or purchases made on or after July 1, 2004
             3003      but on or before June 30, 2019, of machinery or equipment that:
             3004          (i) is leased or purchased for or by a facility that:
             3005          (A) is located in the state;
             3006          (B) produces fuel from biomass energy including:
             3007          (I) methanol; or
             3008          (II) ethanol; and
             3009          (C) (I) becomes operational on or after July 1, 2004; or
             3010          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004
             3011      as a result of the installation of the machinery or equipment;
             3012          (ii) has an economic life of five or more years; and
             3013          (iii) is installed on the facility described in Subsection [(58)] (57)(a)(i);
             3014          (b) this Subsection [(58)] (57) does not apply to:
             3015          (i) machinery or equipment used in construction of:
             3016          (A) a new facility described in Subsection [(58)] (57)(a)(i); or
             3017          (B) the increase in capacity of the facility described in Subsection [(58)] (57)(a)(i); or
             3018          (ii) contracted services required for construction and routine maintenance activities;
             3019      and
             3020          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             3021      described in Subsection [(58)] (57)(a)(i)(C)(II), machinery or equipment used or acquired
             3022      after:
             3023          (A) the facility described in Subsection [(58)] (57)(a)(i) is operational; or
             3024          (B) the increased capacity described in Subsection [(58)] (57)(a)(i) is operational;
             3025          [(59)] (58) (a) subject to Subsection [(59)] (58)(b) or (c), sales of tangible personal


             3026      property or a product transferred electronically to a person within this state if that tangible
             3027      personal property or product transferred electronically is subsequently shipped outside the
             3028      state and incorporated pursuant to contract into and becomes a part of real property located
             3029      outside of this state;
             3030          (b) the exemption under Subsection [(59)] (58)(a) is not allowed to the extent that the
             3031      other state or political entity to which the tangible personal property is shipped imposes a
             3032      sales, use, gross receipts, or other similar transaction excise tax on the transaction against
             3033      which the other state or political entity allows a credit for sales and use taxes imposed by this
             3034      chapter; and
             3035          (c) notwithstanding the time period of Subsection 59-12-110 (2)(b) for filing for a
             3036      refund, a person may claim the exemption allowed by this Subsection [(59)] (58) for a sale by
             3037      filing for a refund:
             3038          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             3039          (ii) as if this Subsection [(59)] (58) as in effect on July 1, 2008, were in effect on the
             3040      day on which the sale is made;
             3041          (iii) if the person did not claim the exemption allowed by this Subsection [(59)] (58)
             3042      for the sale prior to filing for the refund;
             3043          (iv) for sales and use taxes paid under this chapter on the sale;
             3044          (v) in accordance with Section 59-12-110 ; and
             3045          (vi) subject to any extension allowed for filing for a refund under Section 59-12-110 ,
             3046      if the person files for the refund on or before June 30, 2011;
             3047          [(60)] (59) purchases:
             3048          (a) of one or more of the following items in printed or electronic format:
             3049          (i) a list containing information that includes one or more:
             3050          (A) names; or
             3051          (B) addresses; or
             3052          (ii) a database containing information that includes one or more:
             3053          (A) names; or


             3054          (B) addresses; and
             3055          (b) used to send direct mail;
             3056          [(61)] (60) redemptions or repurchases of a product by a person if that product was:
             3057          (a) delivered to a pawnbroker as part of a pawn transaction; and
             3058          (b) redeemed or repurchased within the time period established in a written agreement
             3059      between the person and the pawnbroker for redeeming or repurchasing the product;
             3060          [(62)] (61) (a) purchases or leases of an item described in Subsection [(62)] (61)(b) if
             3061      the item:
             3062          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             3063      and
             3064          (ii) has a useful economic life of one or more years; and
             3065          (b) the following apply to Subsection [(62)] (61)(a):
             3066          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             3067          (ii) telecommunications equipment, machinery, or software required for 911 service;
             3068          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             3069          (iv) telecommunications switching or routing equipment, machinery, or software; or
             3070          (v) telecommunications transmission equipment, machinery, or software;
             3071          [(63)] (62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of
             3072      tangible personal property or a product transferred electronically that are used in the research
             3073      and development of coal-to-liquids, oil shale, or tar sands technology; and
             3074          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             3075      the commission may, for purposes of Subsection [(63)] (62)(a), make rules defining what
             3076      constitutes purchases of tangible personal property or a product transferred electronically that
             3077      are used in the research and development of coal-to-liquids, oil shale, and tar sands
             3078      technology;
             3079          [(64)] (63) (a) purchases of tangible personal property or a product transferred
             3080      electronically if:
             3081          (i) the tangible personal property or product transferred electronically is:


             3082          (A) purchased outside of this state;
             3083          (B) brought into this state at any time after the purchase described in Subsection
             3084      [(64)] (63)(a)(i)(A); and
             3085          (C) used in conducting business in this state; and
             3086          (ii) for:
             3087          (A) tangible personal property or a product transferred electronically other than the
             3088      tangible personal property described in Subsection [(64)] (63)(a)(ii)(B), the first use of the
             3089      property for a purpose for which the property is designed occurs outside of this state; or
             3090          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             3091      outside of this state;
             3092          (b) the exemption provided for in Subsection [(64)] (63)(a) does not apply to:
             3093          (i) a lease or rental of tangible personal property or a product transferred
             3094      electronically; or
             3095          (ii) a sale of a vehicle exempt under Subsection (33); and
             3096          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             3097      purposes of Subsection [(64)] (63)(a), the commission may by rule define what constitutes the
             3098      following:
             3099          (i) conducting business in this state if that phrase has the same meaning in this
             3100      Subsection [(64)] (63) as in Subsection (24);
             3101          (ii) the first use of tangible personal property or a product transferred electronically if
             3102      that phrase has the same meaning in this Subsection [(64)] (63) as in Subsection (24); or
             3103          (iii) a purpose for which tangible personal property or a product transferred
             3104      electronically is designed if that phrase has the same meaning in this Subsection [(64)] (63) as
             3105      in Subsection (24);
             3106          [(65)] (64) sales of disposable home medical equipment or supplies if:
             3107          (a) a person presents a prescription for the disposable home medical equipment or
             3108      supplies;
             3109          (b) the disposable home medical equipment or supplies are used exclusively by the


             3110      person to whom the prescription described in Subsection [(65)] (64)(a) is issued; and
             3111          (c) the disposable home medical equipment and supplies are listed as eligible for
             3112      payment under:
             3113          (i) Title XVIII, federal Social Security Act; or
             3114          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             3115          [(66)] (65) sales:
             3116          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             3117      District Act; or
             3118          (b) of tangible personal property to a subcontractor of a public transit district, if the
  &n