H.B. 148

1

SALES AND USE TAX CHANGES
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Sales and Use Tax Act, the Rural Health Services chapter, the
10 Board of Tourism Development part, and related provisions.
11 Highlighted Provisions:
12 This bill:
13 . addresses the distribution and expenditure of revenues in the Rural Health Care
14 Facilities Fund as a result of the repeal of Title 59, Chapter 12, Part 8, Funding for
15 Health Care;
16 . enacts the Rural Health Care Compensation Fund to address the funding of rural
17 health care as a result of the repeal of Title 59, Chapter 12, Part 8, Funding of
18 Health Care, and provides for:
19 . deposits of certain sales and use tax revenues into that fund; and
20 . the distribution and expenditure of fund monies;
21 . amends the powers and duties of the State Tax Commission to include distributing
22 monies deposited into the Rural Health Care Compensation Fund;
23 . requires adjustments to the property tax certified tax rate under certain
24 circumstances;
25 . enacts and modifies definitions;
26 . modifies state and local sales and use tax rates;
27 . modifies the distribution of revenues collected from certain local option sales and

28 use taxes;
29 . repeals certain local option sales and use taxes;
30 . modifies an additional state sales and use tax related to transportation and addresses
31 the expenditure of revenues collected from the tax;
32 . enacts the Tourism, Recreation, Cultural, Convention, and Airport Facilities Fund
33 and provides for:
34 . deposits of certain sales and use tax revenues into that fund; and
35 . the distribution and expenditure of fund monies; and
36 . makes technical and conforming changes.
37 Monies Appropriated in this Bill:
38 None
39 Other Special Clauses:
40 This bill takes effect on January 1, 2011.
41 This bill provides revisor instructions.
42 This bill coordinates with S.B. 30, Local Option Sales and Use Taxes for
43 Transportation Act, by making technical changes.
44 Utah Code Sections Affected:
45 AMENDS:
46 17C-1-408, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
47 26-9-4, as last amended by Laws of Utah 2009, Chapter 368
48 26-21b-102, as enacted by Laws of Utah 2009, Chapter 266
49 59-1-210, as last amended by Laws of Utah 2008, Chapters 187 and 382
50 59-2-924.2, as last amended by Laws of Utah 2009, Chapter 218
51 59-12-102, as last amended by Laws of Utah 2009, Chapters 203 and 314
52 59-12-103, as last amended by Laws of Utah 2009, Chapters 203, 344, and 385
53 59-12-204, as last amended by Laws of Utah 2009, Chapters 203 and 385
54 59-12-205, as last amended by Laws of Utah 2009, Chapters 92 and 203
55 59-12-211, as enacted by Laws of Utah 2008, Chapter 384
56 59-12-603, as last amended by Laws of Utah 2009, Chapter 7
57 59-12-703, as last amended by Laws of Utah 2008, Chapters 382 and 384
58 59-12-704, as last amended by Laws of Utah 2003, Chapter 296

59 59-12-1201, as last amended by Laws of Utah 2009, Chapter 203
60 59-12-1802, as last amended by Laws of Utah 2008, Chapter 384
61 59-12-2003, as last amended by Laws of Utah 2009, Chapter 385
62 63H-1-102, as last amended by Laws of Utah 2009, Chapters 92 and 397
63 ENACTS:
64 26-9-5, Utah Code Annotated 1953
65 63M-1-1407, Utah Code Annotated 1953
66 REPEALS:
67 59-12-701, as last amended by Laws of Utah 2003, Chapter 296
68 59-12-801, as last amended by Laws of Utah 2006, Chapter 302
69 59-12-802, as last amended by Laws of Utah 2008, Chapter 384
70 59-12-803, as last amended by Laws of Utah 2000, Chapter 253
71 59-12-804, as last amended by Laws of Utah 2008, Chapter 384
72 59-12-805, as enacted by Laws of Utah 2000, Chapter 253
73 59-12-806, as last amended by Laws of Utah 2008, Chapters 382 and 384
74 59-12-808, as last amended by Laws of Utah 2009, Chapter 203
75 59-12-809, as enacted by Laws of Utah 2008, Chapter 384
76 59-12-810, as enacted by Laws of Utah 2008, Chapter 384
77 59-12-1301, as enacted by Laws of Utah 1998, Chapter 243
78 59-12-1302, as last amended by Laws of Utah 2008, Chapters 382 and 384
79 59-12-1304, as last amended by Laws of Utah 2009, Chapter 203
80 59-12-1305, as enacted by Laws of Utah 2008, Chapter 384
81 59-12-1306, as enacted by Laws of Utah 2008, Chapter 384
82 59-12-1401, as last amended by Laws of Utah 2004, Chapter 317
83 59-12-1402, as last amended by Laws of Utah 2008, Chapters 382 and 384
84 59-12-1403, as enacted by Laws of Utah 2001, Chapter 192
85 59-12-1405, as last amended by Laws of Utah 2009, Chapter 203
86 59-12-1406, as enacted by Laws of Utah 2008, Chapter 384
87 59-12-1407, as enacted by Laws of Utah 2008, Chapter 384
88 Utah Code Sections Affected by Coordination Clause:
89 59-12-2003, as last amended by Laws of Utah 2009, Chapter 385

90
91 Be it enacted by the Legislature of the state of Utah:
92 Section 1. Section 17C-1-408 is amended to read:
93 17C-1-408. Base taxable value to be adjusted to reflect other changes.
94 (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
95 (A) a decrease of more than 20% from the previous tax year's levy; or
96 (B) a cumulative decrease over a consecutive five-year period of more than 100% from
97 the levy in effect at the beginning of the five-year period.
98 (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
99 fifth year of the five-year period.
100 (b) If there is a qualifying decrease in the minimum basic school levy under Section
101 59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
102 agency:
103 (i) the base taxable value of taxable property within the project area shall be reduced in
104 the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
105 agency with approximately the same amount of tax increment that would have been paid to the
106 agency each year had the qualifying decrease not occurred; and
107 (ii) the amount of tax increment paid to the agency each year for the payment of bonds
108 and indebtedness may not be less than what would have been paid to the agency if there had
109 been no qualifying decrease.
110 (2) (a) The amount of the base taxable value to be used in determining tax increment
111 shall be:
112 (i) increased or decreased by the amount of an increase or decrease that results from:
113 (A) a statute enacted by the Legislature or by the people through an initiative;
114 (B) a judicial decision;
115 (C) an order from the State Tax Commission to a county to adjust or factor its
116 assessment rate under Subsection 59-2-704 (2);
117 (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
118 Section 59-2-103 ; or
119 (E) an increase or decrease in the percentage of fair market value, as defined under
120 Section 59-2-102 ; and

121 (ii) reduced for any year to the extent necessary, even if below zero, to provide an
122 agency with approximately the same amount of money the agency would have received without
123 a reduction in the county's certified tax rate if:
124 (A) in that year there is a decrease in the county's certified tax rate under Subsection
125 59-2-924.2 (2)(a) or (3)(a);
126 (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
127 previous year; and
128 (C) the decrease would result in a reduction of the amount of tax increment to be paid
129 to the agency.
130 (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
131 increment paid to an agency each year for payment of bonds or other indebtedness may not be
132 less than would have been paid to the agency each year if there had been no increase or
133 decrease under Subsection (2)(a).
134 Section 2. Section 26-9-4 is amended to read:
135 26-9-4. Definitions -- Rural Health Care Facilities Fund -- Source of revenues --
136 Interest -- Distribution of revenues -- Expenditure of revenues -- Unexpended revenues
137 lapse into the General Fund.
138 (1) As used in this section:
139 (a) "Emergency medical services" is as defined in Section 26-8a-102 .
140 (b) "Federally qualified health center" is as defined in 42 U.S.C. Sec. 1395x.
141 (c) "Fiscal year" means a one-year period beginning on July 1 of each year.
142 (d) "Freestanding urgent care center" [is as defined in Section 59-12-801 .] means a
143 facility that provides outpatient health care service:
144 (i) on an as-needed basis, without an appointment;
145 (ii) to the public;
146 (iii) for the diagnosis and treatment of a medical condition if that medical condition
147 does not require hospitalization or emergency intervention for a life threatening or potentially
148 permanently disabling condition; and
149 (iv) including one or more of the following services:
150 (A) a medical history physical examination;
151 (B) an assessment of health status; or

152 (C) treatment:
153 (I) for a variety of medical conditions; and
154 (II) that is commonly offered in a physician's office.
155 (e) "Fund" means the Rural Health Care Facilities Fund created by this section.
156 (f) "Nursing care facility" is as defined in Section 26-21-2 .
157 (g) "Qualified expense" means:
158 (i) an ongoing operating expense;
159 (ii) the acquisition of land;
160 (iii) an expense for design, construction, equipping, or furnishing; or
161 (iv) a combination of Subsections (1)(g)(i) through (iii).
162 (h) "Qualifying tax" means a sales and use tax that:
163 (i) a county legislative body or city legislative body imposes to fund rural health care;
164 and
165 (ii) is repealed by this bill.
166 [(g)] (i) "Rural city hospital" [is as defined in Section 59-12-801 .] means a hospital
167 owned by a city if that city is located within a county of the third, fourth, fifth, or sixth class, as
168 classified in Section 17-50-501 .
169 [(h)] (j) "Rural county health care facility" [is as defined in Section 59-12-801 .] means
170 a:
171 (i) rural county hospital; or
172 (ii) rural county nursing care facility.
173 [(i)] (k) "Rural county hospital" [is as defined in Section 59-12-801 .] means a hospital
174 owned by a county:
175 (i) of the third, fourth, fifth, or sixth class, as classified in Section 17-50-501 ; and
176 (ii) if that county is located outside of a standard metropolitan statistical area, as
177 designated by the United States Census Bureau.
178 [(j)] (l) "Rural county nursing care facility" [is as defined in Section 59-12-801 .] means
179 a nursing care facility owned by a county:
180 (i) of the third, fourth, fifth, or sixth class, as classified in Section 17-50-501 ; and
181 (ii) if that county is located outside of a standard metropolitan statistical area, as
182 designated by the United States Census Bureau.

183 [(k)] (m) "Rural emergency medical services" [is as defined in Section 59-12-801 .]
184 means emergency medical services that are provided by a county:
185 (i) of the third, fourth, fifth, or sixth class, as classified in Section 17-50-501 ; and
186 (ii) if that county is located outside of a standard metropolitan statistical area, as
187 designated by the United States Census Bureau.
188 [(l)] (n) "Rural health clinic" is as defined in 42 U.S.C. Sec. 1395x.
189 (2) There is created a general fund restricted account known as the Rural Health Care
190 Facilities Fund.
191 (3) (a) The fund shall be funded by amounts appropriated by the Legislature.
192 (b) Any interest earned on the fund shall be deposited into the General Fund.
193 (4) Subject to Subsection (5), the State Tax Commission shall for a fiscal year
194 distribute monies deposited into the fund to each:
195 (a) county legislative body of a county that, on January 1, 2007, imposes a [tax in
196 accordance with Section 59-12-802 ] qualifying tax; or
197 (b) city legislative body of a city that, on January 1, 2007, imposes a [tax in accordance
198 with Section 59-12-804 ] qualifying tax.
199 (5) (a) For purposes of the distribution required by Subsection (4), the State Tax
200 Commission shall:
201 (i) estimate for each county and city described in Subsection (4) the amount by which
202 the revenues collected from [the taxes imposed under Sections 59-12-802 and 59-12-804 ] a
203 qualifying tax for fiscal year 2005-06 would have been reduced [had] if:
204 (A) the amendments made by Laws of Utah 2007, Chapter 288, Sections 25 and 26, to
205 [Sections 59-12-802 and 59-12-804 ] the qualifying tax had been in effect for fiscal year
206 2005-06; and
207 (B) each county and city described in Subsection (4) had imposed [the tax under
208 Sections 59-12-802 and 59-12-804 ] the qualifying tax for the entire fiscal year 2005-06;
209 (ii) calculate a percentage for each county and city described in Subsection (4) by
210 dividing the amount estimated for each county and city in accordance with Subsection (5)(a)(i)
211 by $555,000; and
212 (iii) distribute to each county and city described in Subsection (4) an amount equal to
213 the product of:

214 (A) the percentage calculated in accordance with Subsection (5)(a)(ii); and
215 (B) the amount appropriated by the Legislature to the fund for the fiscal year.
216 (b) The State Tax Commission shall make the estimations, calculations, and
217 distributions required by Subsection (5)(a) on the basis of data collected by the State Tax
218 Commission.
219 (6) (a) Subject to Subsection (6)(b), a county legislative body shall distribute the
220 monies the county legislative body receives in accordance with Subsection (5):
221 (i) for a county of the third, fourth, or fifth class, to [fund rural county health care
222 facilities in that county; and] finance a qualified expense for one or more rural county health
223 care facilities within the county; or
224 (ii) for a county of the sixth class, to [fund] finance:
225 (A) a qualified expense for one or more rural emergency medical services in that
226 county;
227 (B) a qualified expense for one or more federally qualified health centers in that
228 county;
229 (C) a qualified expense for one or more freestanding urgent care centers in that county;
230 (D) a qualified expense for one or more rural county health care facilities in that
231 county;
232 (E) a qualified expense for one or more rural health clinics in that county; or
233 (F) a combination of Subsections (6)(a)(ii)(A) through (E).
234 (b) A county legislative body shall distribute a percentage of the monies the county
235 legislative body receives in accordance with Subsection (5) to each center, clinic, facility, or
236 service described in Subsection (6)(a) equal to the same percentage that the county legislative
237 body distributes to that center, clinic, facility, or service [in accordance with Section 59-12-803
238 for the calendar year ending on the December 31 immediately preceding the first day of the
239 fiscal year for which the county legislative body receives the distribution in accordance with
240 Subsection (5).]:
241 (i) for the calendar year ending on December 31, 2010; and
242 (ii) from the revenues collected from a qualifying tax.
243 (c) (i) A [center, clinic, facility, or service] rural county health care facility within a
244 county of the third, fourth, or fifth class that receives a distribution in accordance with this

245 Subsection (6) shall expend that distribution [for the same purposes for which monies
246 generated by a tax under Section 59-12-802 may be expended] to finance a qualified expense
247 for that rural county health care facility.
248 (ii) A center, clinic, facility, or service within a county of the sixth class that receives a
249 distribution in accordance with this Subsection (6) shall expend that distribution to finance a
250 qualified expense for that center, clinic, facility, or service.
251 (7) (a) Subject to Subsection (7)(b), a city legislative body shall distribute the monies
252 the city legislative body receives in accordance with Subsection (5) to fund rural city hospitals
253 in that city.
254 (b) A city legislative body shall distribute a percentage of the monies the city
255 legislative body receives in accordance with Subsection (5) to each rural city hospital described
256 in Subsection (7)(a) equal to the same percentage that the city legislative body distributes to
257 that rural city hospital [in accordance with Section 59-12-805 for the calendar year ending on
258 the December 31 immediately preceding the first day of the fiscal year for which the city
259 legislative body receives the distribution in accordance with Subsection (5).]:
260 (i) for the calendar year ending on December 31, 2010; and
261 (ii) from revenues collected from a qualifying tax.
262 (c) A rural city hospital that receives a distribution in accordance with this Subsection
263 (7) shall expend that distribution [for the same purposes for which monies generated by a tax
264 under Section 59-12-804 may be expended] to finance a qualified expense for that rural city
265 hospital.
266 (8) Any monies remaining in the Rural Health Care Facilities Fund at the end of a
267 fiscal year after the State Tax Commission makes the distributions required by this section
268 shall lapse into the General Fund.
269 Section 3. Section 26-9-5 is enacted to read:
270 26-9-5. Definitions -- Rural Health Care Compensation Fund -- Source of
271 revenues -- Interest -- Distribution of revenues -- Expenditure of revenues -- Unexpended
272 revenues lapse into the General Fund.
273 (1) As used in this section:
274 (a) "Emergency medical services" is as defined in Section 26-9-4 .
275 (b) "Federally qualified health center" is as defined in Section 26-9-4 .

276 (c) "Fiscal year" means a one-year period beginning on July 1 of each year.
277 (d) "Freestanding urgent care center" is as defined in Section 26-9-4 .
278 (e) "Fund" means the Rural Health Care Compensation Fund created by this section.
279 (f) "Nursing care facility" is as defined in Section 26-9-4 .
280 (g) "Qualified expense" is as defined in Section 26-9-4 .
281 (h) "Qualifying tax" is as defined in Section 26-9-4 .
282 (i) "Rural city hospital" is as defined in Section 26-9-4 .
283 (j) "Rural county health care facility" is as defined in Section 26-9-4 .
284 (k) "Rural county hospital" is as defined in Section 26-9-4 .
285 (l) "Rural county nursing care facility" is as defined in Section 26-9-4 .
286 (m) "Rural emergency medical services" is as defined in Section 26-9-4 .
287 (n) "Rural health clinic" is as defined in Section 26-9-4 .
288 (2) There is created a restricted special revenue fund known as the "Rural Health Care
289 Compensation Fund."
290 (3) (a) The fund shall be funded by amounts deposited in accordance with Subsection
291 59-12-103 (13).
292 (b) Any interest earned on the fund shall be deposited into the General Fund.
293 (4) Subject to Subsection (5), the State Tax Commission shall within a 30-day period
294 after the last day of a fiscal year distribute monies deposited into the fund to each:
295 (a) county legislative body of a county that, on December 31, 2010, imposes a
296 qualifying tax; or
297 (b) city legislative body of a city that, on December 31, 2010, imposes a qualifying tax.
298 (5) (a) For purposes of the distribution required by Subsection (4), the State Tax
299 Commission shall:
300 (i) estimate for each county and city described in Subsection (4) the amount of
301 revenues that would have been collected from a qualifying tax for fiscal year 2008-09 had the
302 county or city imposed the qualifying tax for the entire fiscal year 2008-09;
303 (ii) calculate a percentage for each county and city described in Subsection (4) by
304 dividing the amount estimated for each county and city in accordance with Subsection (5)(a)(i)
305 by the total amount deposited in accordance with Subsection 59-12-103 (13):
306 (A) for the time period beginning on January 1, 2011, and ending on June 30, 2011, for

307 that time period; or
308 (B) for a fiscal year beginning with fiscal year 2011-12, for that fiscal year; and
309 (iii) distribute to each county and city described in Subsection (4) an amount equal to
310 the product of:
311 (A) the percentage calculated in accordance with Subsection (5)(a)(ii); and
312 (B) the total amount deposited in accordance with Subsection 59-12-103 (13):
313 (I) for the time period beginning on January 1, 2011, and ending on June 30, 2011, for
314 that time period; or
315 (II) for a fiscal year beginning with fiscal year 2011-12, for that fiscal year.
316 (b) The State Tax Commission shall make the estimates, calculations, and distributions
317 required by Subsection (5)(a) on the basis of data collected by the State Tax Commission.
318 (6) (a) Subject to Subsection (6)(b), a county legislative body shall distribute the
319 monies the county legislative body receives in accordance with Subsection (5):
320 (i) for a county of the third, fourth, or fifth class, to finance a qualified expense for one
321 or more rural county health care facilities within the county; or
322 (ii) for a county of the sixth class, to finance:
323 (A) a qualified expense for one or more rural emergency medical services in that
324 county;
325 (B) a qualified expense for one or more federally qualified health centers in that
326 county;
327 (C) a qualified expense for one or more freestanding urgent care centers in that county;
328 (D) a qualified expense for one or more rural county health care facilities in that
329 county;
330 (E) a qualified expense for one or more rural health clinics in that county; or
331 (F) a combination of Subsections (6)(a)(ii)(A) through (E).
332 (b) A county legislative body shall distribute a percentage of the monies the county
333 legislative body receives in accordance with Subsection (5) to each center, clinic, facility, or
334 service described in Subsection (6)(a) equal to the same percentage that the county legislative
335 body distributes to that center, clinic, facility, or service:
336 (i) for the calendar year ending on December 31, 2010; and
337 (ii) from revenues collected from a qualifying tax.

338 (c) (i) A rural county health care facility within a county of the third, fourth, or fifth
339 class that receives a distribution in accordance with this Subsection (6) shall expend that
340 distribution to finance a qualified expense for that rural county health care facility.
341 (ii) A center, clinic, facility, or service within a county of the sixth class that receives a
342 distribution in accordance with this Subsection (6) shall expend that distribution to finance a
343 qualified expense for that center, clinic, facility, or service.
344 (7) (a) Subject to Subsection (7)(b), a city legislative body shall distribute the monies
345 the city legislative body receives in accordance with Subsection (5) to fund one or more rural
346 city hospitals in that city.
347 (b) A city legislative body shall distribute a percentage of the monies the city
348 legislative body receives in accordance with Subsection (5) to each rural city hospital described
349 in Subsection (7)(a) equal to the same percentage that the city legislative body distributes to
350 that rural city hospital:
351 (i) for the calendar year ending on December 31, 2010; and
352 (ii) from revenues collected from a qualifying tax.
353 (c) A rural city hospital that receives a distribution in accordance with this Subsection
354 (7) shall expend that distribution to finance a qualified expense for that rural city hospital.
355 (8) Any monies remaining in the fund at the end of a fiscal year after the State Tax
356 Commission makes the distributions required by this section shall lapse into the General Fund.
357 Section 4. Section 26-21b-102 is amended to read:
358 26-21b-102. Definitions.
359 As used in this chapter:
360 (1) "Designated facility" means:
361 (a) a freestanding urgent care center, as defined in Section [ 59-12-801 ] 26-9-4 ;
362 (b) a general acute hospital, as defined in Section 26-21-2 ; or
363 (c) a critical access hospital that meets the criteria of 42 U.S.C. 1395i-4(c)(2) (1998).
364 (2) "Emergency contraception" means the use of a substance, approved by the United
365 States Food and Drug Administration, to prevent pregnancy after sexual intercourse.
366 (3) "Physician" means a person:
367 (a) licensed as a physician under Title 58, Chapter 67, Utah Medical Practice Act; or
368 (b) licensed as a physician under Title 58, Chapter 68, Utah Osteopathic Medical

369 Practice Act.
370 (4) "Practitioner" means:
371 (a) a physician; or
372 (b) any other person who is permitted by law to prescribe emergency contraception.
373 (5) "Sexual assault" means any criminal conduct described in Title 76, Chapter 5, Part
374 4, Sexual Offenses, that may result in a pregnancy.
375 (6) "Victim of sexual assault" means any person who presents to receive, or receives,
376 medical care in consequence of being subjected to sexual assault.
377 Section 5. Section 59-1-210 is amended to read:
378 59-1-210. General powers and duties.
379 The powers and duties of the commission are as follows:
380 (1) to sue and be sued in its own name;
381 (2) to adopt rules and policies consistent with the Constitution and laws of this state to
382 govern the commission, executive director, division directors, and commission employees in
383 the performance of their duties;
384 (3) to adopt rules and policies consistent with the Constitution and laws of the state, to
385 govern county boards and officers in the performance of any duty relating to assessment,
386 equalization, and collection of taxes;
387 (4) to prescribe the use of forms relating to the assessment of property for state or local
388 taxation, the equalization of those assessments, the reporting of property or income for state or
389 local taxation purposes, or for the computation of those taxes and the reporting of any
390 information, statistics, or data required by the commission;
391 (5) to administer and supervise the tax laws of the state;
392 (6) to prepare and maintain from year to year a complete record of all lands subject to
393 taxation in this state, and all machinery used in mining and all property or surface
394 improvements upon or appurtenant to mines or mining claims;
395 (7) to exercise general supervision over assessors and county boards of equalization
396 including the authority to enforce Section 59-2-303.1 , and over other county officers in the
397 performance of their duties relating to the assessment of property and collection of taxes, so
398 that all assessments of property are just and equal, according to fair market value, and that the
399 tax burden is distributed without favor or discrimination;

400 (8) to reconvene any county board of equalization which, when reconvened, may only
401 address business approved by the commission and extend the time for which any county board
402 of equalization may sit for the equalization of assessments;
403 (9) to confer with, advise, and direct county treasurers, assessors, and other county
404 officers in matters relating to the assessment and equalization of property for taxation and the
405 collection of taxes;
406 (10) to provide for and hold annually at such time and place as may be convenient a
407 district or state convention of county assessors, auditors, and other county officers to consider
408 and discuss matters relative to taxation, uniformity of valuation, and changes in the law relative
409 to taxation and methods of assessment, to which county assessors and other officers called to
410 attend shall attend at county expense;
411 (11) to direct proceedings, actions, and prosecutions to enforce the laws relating to the
412 penalties, liabilities, and punishments of public officers, persons, and officers or agents of
413 corporations for failure or neglect to comply with the statutes governing the reporting,
414 assessment, and taxation of property;
415 (12) to cause complaints to be made in the proper court seeking removal from office of
416 assessors, auditors, members of county boards, and other assessing, taxing, or disbursing
417 officers, who are guilty of official misconduct or neglect of duty;
418 (13) to require county attorneys to immediately institute and prosecute actions and
419 proceedings in respect to penalties, forfeitures, removals, and punishments for violations of the
420 laws relating to the assessment and taxation of property in their respective counties;
421 (14) to require any person to furnish any information required by the commission to
422 ascertain the value and the relative burden borne by all kinds of property in the state, and to
423 require from all state and local officers any information necessary for the proper discharge of
424 the duties of the commission;
425 (15) to examine all records relating to the valuation of property of any person;
426 (16) to subpoena witnesses to appear and give testimony and produce records relating
427 to any matter before the commission;
428 (17) to cause depositions of witnesses to be taken as in civil actions at the request of
429 the commission or any party to any matter or proceeding before the commission;
430 (18) to authorize any member or employee of the commission to administer oaths and

431 affirmations in any matter or proceeding relating to the exercise of the powers and duties of the
432 commission;
433 (19) to visit periodically each county of the state, to investigate and direct the work and
434 methods of local assessors and other officials in the assessment, equalization, and taxation of
435 property, and to ascertain whether the law requiring the assessment of all property not exempt
436 from taxation, and the collection of taxes, have been properly administered and enforced;
437 (20) to carefully examine all cases where evasion or violation of the laws for
438 assessment and taxation of property is alleged, to ascertain whether existing laws are defective
439 or improperly administered;
440 (21) to furnish to the governor from time to time such assistance and information as the
441 governor requires;
442 (22) to transmit to the governor and to each member of the Legislature
443 recommendations as to legislation which will correct or eliminate defects in the operation of
444 the tax laws and will equalize the burden of taxation within the state;
445 (23) to correct any error in any assessment made by it at any time before the tax is due
446 and report the correction to the county auditor, who shall enter the corrected assessment upon
447 the assessment roll;
448 (24) to compile and publish statistics relating to taxation in the state and prepare and
449 submit an annual budget to the governor for inclusion in the state budget to be submitted to the
450 Legislature;
451 (25) to perform any further duties imposed by law, and exercise all powers necessary in
452 the performance of its duties;
453 (26) to adopt a schedule of fees assessed for services provided by the commission,
454 unless otherwise provided by statute. The fee shall be reasonable and fair, and shall reflect the
455 cost of services provided. Each fee established in this manner shall be submitted to and
456 approved by the Legislature as part of the commission's annual appropriations request. The
457 commission may not charge or collect any fee proposed in this manner without approval by the
458 Legislature;
459 (27) to comply with the procedures and requirements of Title 63G, Chapter 4,
460 Administrative Procedures Act, in its adjudicative proceedings; and
461 (28) to distribute the monies deposited into the:

462 (a) Rural Health Care Facilities Fund as required by Section 26-9-4 [.]; and
463 (b) Rural Health Care Compensation Fund as required by Section 26-9-5 .
464 Section 6. Section 59-2-924.2 is amended to read:
465 59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
466 (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
467 in accordance with Section 59-2-924 .
468 (2) (a) Beginning January 1, 1997, if a taxing entity receives increased revenues from
469 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
470 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
471 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
472 rate to offset the increased revenues.
473 (b) A taxing entity shall decrease its certified tax rate to offset increased revenues from
474 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
475 59-2-405.2 , or 59-2-405.3 if:
476 (i) the county within which the taxing entity is located:
477 (A) on December 31, 2010, does not impose a sales and use tax in accordance with
478 Section 59-12-703 ; and
479 (B) on or after January 1, 2011, imposes a tax in accordance with Section 59-12-703 ;
480 and
481 (ii) the taxing entity receives increased revenues from uniform fees on tangible
482 personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 , 59-2-405.2 , or 59-2-405.3 as
483 a result of the county imposing a sales and use tax under Section 59-12-703 .
484 (3) (a) [Beginning] Subject to Subsection (3)(c), beginning on July 1, 1997, if a county
485 has imposed a sales and use tax under Chapter 12, Part 11, County Option Sales and Use Tax,
486 the county's certified tax rate shall be:
487 (i) decreased on a one-time basis by the amount of the estimated sales and use tax
488 revenue to be distributed to the county under Subsection 59-12-1102 (3); and
489 (ii) increased by the amount necessary to offset the county's reduction in revenue from
490 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
491 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
492 (3)(a)(i).

493 [(b) The commission shall determine estimates of sales and use tax distributions for
494 purposes of Subsection (3)(a).]
495 (b) Subject to Subsections (3)(c) and (d), if a county that, on December 31, 2010, does
496 not impose a sales and use tax in accordance with Section 59-12-703 , imposes a sales and use
497 tax in accordance with Section 59-12-703 on or after January 1, 2011, the county's certified tax
498 rate shall be:
499 (i) decreased on a one-time basis by the amount of the estimated sales and use tax
500 revenue under Section 59-12-703 to be distributed to the county for the first year that the
501 county imposes the tax; and
502 (ii) increased by the amount necessary to offset the county's reduction in revenue from
503 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
504 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
505 (2)(b).
506 (c) The commission shall determine estimates of sales and use tax distributions for
507 purposes of Subsections (3)(a)(i) and (b)(i).
508 (d) A certified tax rate increase or decrease required by Subsection (3)(b) shall be
509 made:
510 (i) for the calendar year beginning on the January 1 of the year in which the sales and
511 use tax is imposed that requires the certified tax rate to be increased or decreased in accordance
512 with Subsection (3)(b) if that sales and use tax is imposed for the first time on January 1 or
513 April 1; or
514 (ii) for the calendar year beginning on the January 1 of the year immediately following
515 the year in which the sales and use tax is imposed that requires the certified tax rate to be
516 increased or decreased in accordance with Subsection (3)(b) if that sales and use tax is imposed
517 for the first time on July 1 or October 1.
518 (4) Beginning January 1, 1998, if a municipality has imposed an additional resort
519 communities sales and use tax under Section 59-12-402 , the municipality's certified tax rate
520 shall be decreased on a one-time basis by the amount necessary to offset the first 12 months of
521 estimated revenue from the additional resort communities sales and use tax imposed under
522 Section 59-12-402 .
523 (5) (a) This Subsection (5) applies to each county that:

524 (i) establishes a countywide special service district under Title 17D, Chapter 1, Special
525 Service District Act, to provide jail service, as provided in Subsection 17D-1-201 (10); and
526 (ii) levies a property tax on behalf of the special service district under Section
527 17D-1-105 .
528 (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
529 decreased by the amount necessary to reduce county revenues by the same amount of revenues
530 that will be generated by the property tax imposed on behalf of the special service district.
531 (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
532 levy on behalf of the special service district under Section 17D-1-105 .
533 (6) (a) As used in this Subsection (6):
534 (i) "Annexing county" means a county whose unincorporated area is included within a
535 public safety district by annexation.
536 (ii) "Annexing municipality" means a municipality whose area is included within a
537 public safety district by annexation.
538 (iii) "Equalized public safety protection tax rate" means the tax rate that results from:
539 (A) calculating, for each participating county and each participating municipality, the
540 property tax revenue necessary:
541 (I) in the case of a fire district, to cover all of the costs associated with providing fire
542 protection, paramedic, and emergency services:
543 (Aa) for a participating county, in the unincorporated area of the county; and
544 (Bb) for a participating municipality, in the municipality; or
545 (II) in the case of a police district, to cover all the costs:
546 (Aa) associated with providing law enforcement service:
547 (Ii) for a participating county, in the unincorporated area of the county; and
548 (IIii) for a participating municipality, in the municipality; and
549 (Bb) that the police district board designates as the costs to be funded by a property
550 tax; and
551 (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
552 participating counties and all participating municipalities and then dividing that sum by the
553 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
554 (I) for participating counties, in the unincorporated area of all participating counties;

555 and
556 (II) for participating municipalities, in all the participating municipalities.
557 (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
558 Area Act:
559 (A) created to provide fire protection, paramedic, and emergency services; and
560 (B) in the creation of which an election was not required under Subsection
561 17B-1-214 (3)(c).
562 (v) "Participating county" means a county whose unincorporated area is included
563 within a public safety district at the time of the creation of the public safety district.
564 (vi) "Participating municipality" means a municipality whose area is included within a
565 public safety district at the time of the creation of the public safety district.
566 (vii) "Police district" means a service area under Title 17B, Chapter 2a, Part 9, Service
567 Area Act, within a county of the first class:
568 (A) created to provide law enforcement service; and
569 (B) in the creation of which an election was not required under Subsection
570 17B-1-214 (3)(c).
571 (viii) "Public safety district" means a fire district or a police district.
572 (ix) "Public safety service" means:
573 (A) in the case of a public safety district that is a fire district, fire protection,
574 paramedic, and emergency services; and
575 (B) in the case of a public safety district that is a police district, law enforcement
576 service.
577 (b) In the first year following creation of a public safety district, the certified tax rate of
578 each participating county and each participating municipality shall be decreased by the amount
579 of the equalized public safety tax rate.
580 (c) In the first budget year following annexation to a public safety district, the certified
581 tax rate of each annexing county and each annexing municipality shall be decreased by an
582 amount equal to the amount of revenue budgeted by the annexing county or annexing
583 municipality:
584 (i) for public safety service; and
585 (ii) in:

586 (A) for a taxing entity operating under a January 1 through December 31 fiscal year,
587 the prior calendar year; or
588 (B) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior
589 fiscal year.
590 (d) Each tax levied under this section by a public safety district shall be considered to
591 be levied by:
592 (i) each participating county and each annexing county for purposes of the county's tax
593 limitation under Section 59-2-908 ; and
594 (ii) each participating municipality and each annexing municipality for purposes of the
595 municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
596 city.
597 (e) The calculation of a public safety district's certified tax rate for the year of
598 annexation shall be adjusted to include an amount of revenue equal to one half of the amount
599 of revenue budgeted by the annexing entity for public safety service in the annexing entity's
600 prior fiscal year if:
601 (i) the public safety district operates on a January 1 through December 31 fiscal year;
602 (ii) the public safety district approves an annexation of an entity operating on a July 1
603 through June 30 fiscal year; and
604 (iii) the annexation described in Subsection (6)(e)(ii) takes effect on July 1.
605 (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
606 entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by
607 the amount necessary to offset any change in the certified tax rate that may result from
608 excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
609 Legislature during the 2007 General Session:
610 (a) personal property tax revenue:
611 (i) received by a taxing entity;
612 (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
613 (iii) for personal property that is semiconductor manufacturing equipment; or
614 (b) the taxable value of personal property:
615 (i) contained on the tax rolls of a taxing entity;
616 (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and

617 (iii) that is semiconductor manufacturing equipment.
618 (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
619 reduced for any year to the extent necessary to provide a community development and renewal
620 agency established under Title 17C, Limited Purpose Local Government Entities - Community
621 Development and Renewal Agencies, with approximately the same amount of money the
622 agency would have received without a reduction in the county's certified tax rate, calculated in
623 accordance with Section 59-2-924 , if:
624 (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
625 (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
626 previous year; and
627 (iii) the decrease results in a reduction of the amount to be paid to the agency under
628 Section 17C-1-403 or 17C-1-404 .
629 (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
630 year to the extent necessary to provide a community development and renewal agency with
631 approximately the same amount of money as the agency would have received without an
632 increase in the certified tax rate that year if:
633 (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
634 a decrease in the certified tax rate under Subsection (2) or (3)(a); and
635 (ii) the certified tax rate of a city, school district, local district, or special service
636 district increases independent of the adjustment to the taxable value of the base year.
637 (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
638 the amount of money allocated and, when collected, paid each year to a community
639 development and renewal agency established under Title 17C, Limited Purpose Local
640 Government Entities - Community Development and Renewal Agencies, for the payment of
641 bonds or other contract indebtedness, but not for administrative costs, may not be less than that
642 amount would have been without a decrease in the certified tax rate under Subsection (2) or
643 (3)(a).
644 Section 7. Section 59-12-102 is amended to read:
645 59-12-102. Definitions.
646 As used in this chapter:
647 (1) "800 service" means a telecommunications service that:

648 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
649 (b) is typically marketed:
650 (i) under the name 800 toll-free calling;
651 (ii) under the name 855 toll-free calling;
652 (iii) under the name 866 toll-free calling;
653 (iv) under the name 877 toll-free calling;
654 (v) under the name 888 toll-free calling; or
655 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
656 Federal Communications Commission.
657 (2) (a) "900 service" means an inbound toll telecommunications service that:
658 (i) a subscriber purchases;
659 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
660 the subscriber's:
661 (A) prerecorded announcement; or
662 (B) live service; and
663 (iii) is typically marketed:
664 (A) under the name 900 service; or
665 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
666 Communications Commission.
667 (b) "900 service" does not include a charge for:
668 (i) a collection service a seller of a telecommunications service provides to a
669 subscriber; or
670 (ii) the following a subscriber sells to the subscriber's customer:
671 (A) a product; or
672 (B) a service.
673 (3) (a) "Admission or user fees" includes season passes.
674 (b) "Admission or user fees" does not include annual membership dues to private
675 organizations.
676 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
677 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
678 Agreement after November 12, 2002.

679 (5) "Agreement combined tax rate" means the sum of the tax rates:
680 (a) listed under Subsection (6); and
681 (b) that are imposed within a local taxing jurisdiction.
682 (6) "Agreement sales and use tax" means a tax imposed under:
683 (a) Subsection 59-12-103 (2)(a)(i)(A);
684 (b) Subsection 59-12-103 (2)(b)(i);
685 (c) Subsection 59-12-103 (2)(c)(i);
686 (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
687 (e) Section 59-12-204 ;
688 (f) Section 59-12-401 ;
689 (g) Section 59-12-402 ;
690 (h) Section 59-12-501 ;
691 (i) Section 59-12-502 ;
692 (j) Section 59-12-703 ;
693 [(k) Section 59-12-802 ;]
694 [(l) Section 59-12-804 ;]
695 [(m)] (k) Section 59-12-1001 ;
696 [(n)] (l) Section 59-12-1102 ;
697 [(o) Section 59-12-1302 ;]
698 [(p) Section 59-12-1402 ;]
699 [(q)] (m) Section 59-12-1503 ;
700 [(r)] (n) Section 59-12-1703 ;
701 [(s)] (o) Section 59-12-1802 ;
702 [(t)] (p) Section 59-12-1903 ;
703 [(u)] (q) Section 59-12-2003 ; or
704 [(v)] (r) Section 59-12-2103 .
705 (7) "Aircraft" is as defined in Section 72-10-102 .
706 (8) "Alcoholic beverage" means a beverage that:
707 (a) is suitable for human consumption; and
708 (b) contains .5% or more alcohol by volume.
709 (9) (a) "Ancillary service" means a service associated with, or incidental to, the

710 provision of telecommunications service.
711 (b) "Ancillary service" includes:
712 (i) a conference bridging service;
713 (ii) a detailed communications billing service;
714 (iii) directory assistance;
715 (iv) a vertical service; or
716 (v) a voice mail service.
717 (10) "Area agency on aging" is as defined in Section 62A-3-101 .
718 (11) "Assisted amusement device" means an amusement device, skill device, or ride
719 device that is started and stopped by an individual:
720 (a) who is not the purchaser or renter of the right to use or operate the amusement
721 device, skill device, or ride device; and
722 (b) at the direction of the seller of the right to use the amusement device, skill device,
723 or ride device.
724 (12) "Assisted cleaning or washing of tangible personal property" means cleaning or
725 washing of tangible personal property if the cleaning or washing labor is primarily performed
726 by an individual:
727 (a) who is not the purchaser of the cleaning or washing of the tangible personal
728 property; and
729 (b) at the direction of the seller of the cleaning or washing of the tangible personal
730 property.
731 (13) "Authorized carrier" means:
732 (a) in the case of vehicles operated over public highways, the holder of credentials
733 indicating that the vehicle is or will be operated pursuant to both the International Registration
734 Plan and the International Fuel Tax Agreement;
735 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
736 certificate or air carrier's operating certificate; or
737 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
738 stock, the holder of a certificate issued by the United States Surface Transportation Board.
739 (14) (a) Except as provided in Subsection (14)(b), "biomass energy" means any of the
740 following that is used as the primary source of energy to produce fuel or electricity:

741 (i) material from a plant or tree; or
742 (ii) other organic matter that is available on a renewable basis, including:
743 (A) slash and brush from forests and woodlands;
744 (B) animal waste;
745 (C) methane produced:
746 (I) at landfills; or
747 (II) as a byproduct of the treatment of wastewater residuals;
748 (D) aquatic plants; and
749 (E) agricultural products.
750 (b) "Biomass energy" does not include:
751 (i) black liquor;
752 (ii) treated woods; or
753 (iii) biomass from municipal solid waste other than methane produced:
754 (A) at landfills; or
755 (B) as a byproduct of the treatment of wastewater residuals.
756 (15) (a) "Bundled transaction" means the sale of two or more items of tangible personal
757 property, products, or services if the tangible personal property, products, or services are:
758 (i) distinct and identifiable; and
759 (ii) sold for one nonitemized price.
760 (b) "Bundled transaction" does not include:
761 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
762 the basis of the selection by the purchaser of the items of tangible personal property included in
763 the transaction;
764 (ii) the sale of real property;
765 (iii) the sale of services to real property;
766 (iv) the retail sale of tangible personal property and a service if:
767 (A) the tangible personal property:
768 (I) is essential to the use of the service; and
769 (II) is provided exclusively in connection with the service; and
770 (B) the service is the true object of the transaction;
771 (v) the retail sale of two services if:

772 (A) one service is provided that is essential to the use or receipt of a second service;
773 (B) the first service is provided exclusively in connection with the second service; and
774 (C) the second service is the true object of the transaction;
775 (vi) a transaction that includes tangible personal property or a product subject to
776 taxation under this chapter and tangible personal property or a product that is not subject to
777 taxation under this chapter if the:
778 (A) seller's purchase price of the tangible personal property or product subject to
779 taxation under this chapter is de minimis; or
780 (B) seller's sales price of the tangible personal property or product subject to taxation
781 under this chapter is de minimis; and
782 (vii) the retail sale of tangible personal property that is not subject to taxation under
783 this chapter and tangible personal property that is subject to taxation under this chapter if:
784 (A) that retail sale includes:
785 (I) food and food ingredients;
786 (II) a drug;
787 (III) durable medical equipment;
788 (IV) mobility enhancing equipment;
789 (V) an over-the-counter drug;
790 (VI) a prosthetic device; or
791 (VII) a medical supply; and
792 (B) subject to Subsection (15)(f):
793 (I) the seller's purchase price of the tangible personal property subject to taxation under
794 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
795 (II) the seller's sales price of the tangible personal property subject to taxation under
796 this chapter is 50% or less of the seller's total sales price of that retail sale.
797 (c) (i) For purposes of Subsection (15)(a)(i), tangible personal property, a product, or a
798 service that is distinct and identifiable does not include:
799 (A) packaging that:
800 (I) accompanies the sale of the tangible personal property, product, or service; and
801 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
802 service;

803 (B) tangible personal property, a product, or a service provided free of charge with the
804 purchase of another item of tangible personal property, a product, or a service; or
805 (C) an item of tangible personal property, a product, or a service included in the
806 definition of "purchase price."
807 (ii) For purposes of Subsection (15)(c)(i)(B), an item of tangible personal property, a
808 product, or a service is provided free of charge with the purchase of another item of tangible
809 personal property, a product, or a service if the sales price of the purchased item of tangible
810 personal property, product, or service does not vary depending on the inclusion of the tangible
811 personal property, product, or service provided free of charge.
812 (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
813 does not include a price that is separately identified by product on the following, regardless of
814 whether the following is in paper format or electronic format:
815 (A) a binding sales document; or
816 (B) another supporting sales-related document that is available to a purchaser.
817 (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
818 supporting sales-related document that is available to a purchaser includes:
819 (A) a bill of sale;
820 (B) a contract;
821 (C) an invoice;
822 (D) a lease agreement;
823 (E) a periodic notice of rates and services;
824 (F) a price list;
825 (G) a rate card;
826 (H) a receipt; or
827 (I) a service agreement.
828 (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
829 property or a product subject to taxation under this chapter is de minimis if:
830 (A) the seller's purchase price of the tangible personal property or product is 10% or
831 less of the seller's total purchase price of the bundled transaction; or
832 (B) the seller's sales price of the tangible personal property or product is 10% or less of
833 the seller's total sales price of the bundled transaction.

834 (ii) For purposes of Subsection (15)(b)(vi), a seller:
835 (A) shall use the seller's purchase price or the seller's sales price to determine if the
836 purchase price or sales price of the tangible personal property or product subject to taxation
837 under this chapter is de minimis; and
838 (B) may not use a combination of the seller's purchase price and the seller's sales price
839 to determine if the purchase price or sales price of the tangible personal property or product
840 subject to taxation under this chapter is de minimis.
841 (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
842 contract to determine if the sales price of tangible personal property or a product is de minimis.
843 (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
844 the seller's purchase price and the seller's sales price to determine if tangible personal property
845 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
846 price of that retail sale.
847 (16) "Certified automated system" means software certified by the governing board of
848 the agreement that:
849 (a) calculates the agreement sales and use tax imposed within a local taxing
850 jurisdiction:
851 (i) on a transaction; and
852 (ii) in the states that are members of the agreement;
853 (b) determines the amount of agreement sales and use tax to remit to a state that is a
854 member of the agreement; and
855 (c) maintains a record of the transaction described in Subsection (16)(a)(i).
856 (17) "Certified service provider" means an agent certified:
857 (a) by the governing board of the agreement; and
858 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
859 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
860 own purchases.
861 (18) (a) Subject to Subsection (18)(b), "clothing" means all human wearing apparel
862 suitable for general use.
863 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
864 commission shall make rules:

865 (i) listing the items that constitute "clothing"; and
866 (ii) that are consistent with the list of items that constitute "clothing" under the
867 agreement.
868 (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
869 (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
870 fuels that does not constitute industrial use under Subsection (46) or residential use under
871 Subsection (91).
872 (21) (a) "Common carrier" means a person engaged in or transacting the business of
873 transporting passengers, freight, merchandise, or other property for hire within this state.
874 (b) (i) "Common carrier" does not include a person who, at the time the person is
875 traveling to or from that person's place of employment, transports a passenger to or from the
876 passenger's place of employment.
877 (ii) For purposes of Subsection (21)(b)(i), in accordance with Title 63G, Chapter 3,
878 Utah Administrative Rulemaking Act, the commission may make rules defining what
879 constitutes a person's place of employment.
880 (22) "Component part" includes:
881 (a) poultry, dairy, and other livestock feed, and their components;
882 (b) baling ties and twine used in the baling of hay and straw;
883 (c) fuel used for providing temperature control of orchards and commercial
884 greenhouses doing a majority of their business in wholesale sales, and for providing power for
885 off-highway type farm machinery; and
886 (d) feed, seeds, and seedlings.
887 (23) "Computer" means an electronic device that accepts information:
888 (a) (i) in digital form; or
889 (ii) in a form similar to digital form; and
890 (b) manipulates that information for a result based on a sequence of instructions.
891 (24) "Computer software" means a set of coded instructions designed to cause:
892 (a) a computer to perform a task; or
893 (b) automatic data processing equipment to perform a task.
894 (25) (a) "Conference bridging service" means an ancillary service that links two or
895 more participants of an audio conference call or video conference call.

896 (b) "Conference bridging service" includes providing a telephone number as part of the
897 ancillary service described in Subsection (25)(a).
898 (c) "Conference bridging service" does not include a telecommunications service used
899 to reach the ancillary service described in Subsection (25)(a).
900 (26) "Construction materials" means any tangible personal property that will be
901 converted into real property.
902 (27) "Delivered electronically" means delivered to a purchaser by means other than
903 tangible storage media.
904 (28) (a) "Delivery charge" means a charge:
905 (i) by a seller of:
906 (A) tangible personal property;
907 (B) a product transferred electronically; or
908 (C) services; and
909 (ii) for preparation and delivery of the tangible personal property, product transferred
910 electronically, or services described in Subsection (28)(a)(i) to a location designated by the
911 purchaser.
912 (b) "Delivery charge" includes a charge for the following:
913 (i) transportation;
914 (ii) shipping;
915 (iii) postage;
916 (iv) handling;
917 (v) crating; or
918 (vi) packing.
919 (29) "Detailed telecommunications billing service" means an ancillary service of
920 separately stating information pertaining to individual calls on a customer's billing statement.
921 (30) "Dietary supplement" means a product, other than tobacco, that:
922 (a) is intended to supplement the diet;
923 (b) contains one or more of the following dietary ingredients:
924 (i) a vitamin;
925 (ii) a mineral;
926 (iii) an herb or other botanical;

927 (iv) an amino acid;
928 (v) a dietary substance for use by humans to supplement the diet by increasing the total
929 dietary intake; or
930 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
931 described in Subsections (30)(b)(i) through (v);
932 (c) (i) except as provided in Subsection (30)(c)(ii), is intended for ingestion in:
933 (A) tablet form;
934 (B) capsule form;
935 (C) powder form;
936 (D) softgel form;
937 (E) gelcap form; or
938 (F) liquid form; or
939 (ii) notwithstanding Subsection (30)(c)(i), if the product is not intended for ingestion in
940 a form described in Subsections (30)(c)(i)(A) through (F), is not represented:
941 (A) as conventional food; and
942 (B) for use as a sole item of:
943 (I) a meal; or
944 (II) the diet; and
945 (d) is required to be labeled as a dietary supplement:
946 (i) identifiable by the "Supplemental Facts" box found on the label; and
947 (ii) as required by 21 C.F.R. Sec. 101.36.
948 (31) (a) "Direct mail" means printed material delivered or distributed by United States
949 mail or other delivery service:
950 (i) to:
951 (A) a mass audience; or
952 (B) addressees on a mailing list provided:
953 (I) by a purchaser of the mailing list; or
954 (II) at the discretion of the purchaser of the mailing list; and
955 (ii) if the cost of the printed material is not billed directly to the recipients.
956 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
957 purchaser to a seller of direct mail for inclusion in a package containing the printed material.

958 (c) "Direct mail" does not include multiple items of printed material delivered to a
959 single address.
960 (32) "Directory assistance" means an ancillary service of providing:
961 (a) address information; or
962 (b) telephone number information.
963 (33) (a) "Disposable home medical equipment or supplies" means medical equipment
964 or supplies that:
965 (i) cannot withstand repeated use; and
966 (ii) are purchased by, for, or on behalf of a person other than:
967 (A) a health care facility as defined in Section 26-21-2 ;
968 (B) a health care provider as defined in Section 78B-3-403 ;
969 (C) an office of a health care provider described in Subsection (33)(a)(ii)(B); or
970 (D) a person similar to a person described in Subsections (33)(a)(ii)(A) through (C).
971 (b) "Disposable home medical equipment or supplies" does not include:
972 (i) a drug;
973 (ii) durable medical equipment;
974 (iii) a hearing aid;
975 (iv) a hearing aid accessory;
976 (v) mobility enhancing equipment; or
977 (vi) tangible personal property used to correct impaired vision, including:
978 (A) eyeglasses; or
979 (B) contact lenses.
980 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
981 commission may by rule define what constitutes medical equipment or supplies.
982 (34) (a) "Drug" means a compound, substance, or preparation, or a component of a
983 compound, substance, or preparation that is:
984 (i) recognized in:
985 (A) the official United States Pharmacopoeia;
986 (B) the official Homeopathic Pharmacopoeia of the United States;
987 (C) the official National Formulary; or
988 (D) a supplement to a publication listed in Subsections (34)(a)(i)(A) through (C);

989 (ii) intended for use in the:
990 (A) diagnosis of disease;
991 (B) cure of disease;
992 (C) mitigation of disease;
993 (D) treatment of disease; or
994 (E) prevention of disease; or
995 (iii) intended to affect:
996 (A) the structure of the body; or
997 (B) any function of the body.
998 (b) "Drug" does not include:
999 (i) food and food ingredients;
1000 (ii) a dietary supplement;
1001 (iii) an alcoholic beverage; or
1002 (iv) a prosthetic device.
1003 (35) (a) Except as provided in Subsection (35)(c), "durable medical equipment" means
1004 equipment that:
1005 (i) can withstand repeated use;
1006 (ii) is primarily and customarily used to serve a medical purpose;
1007 (iii) generally is not useful to a person in the absence of illness or injury; and
1008 (iv) is not worn in or on the body.
1009 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1010 equipment described in Subsection (35)(a).
1011 (c) Notwithstanding Subsection (35)(a), "durable medical equipment" does not include
1012 mobility enhancing equipment.
1013 (36) "Electronic" means:
1014 (a) relating to technology; and
1015 (b) having:
1016 (i) electrical capabilities;
1017 (ii) digital capabilities;
1018 (iii) magnetic capabilities;
1019 (iv) wireless capabilities;

1020 (v) optical capabilities;
1021 (vi) electromagnetic capabilities; or
1022 (vii) capabilities similar to Subsections (36)(b)(i) through (vi).
1023 (37) "Employee" is as defined in Section 59-10-401 .
1024 (38) "Fixed guideway" means a public transit facility that uses and occupies:
1025 (a) rail for the use of public transit; or
1026 (b) a separate right-of-way for the use of public transit.
1027 (39) "Fixed wireless service" means a telecommunications service that provides radio
1028 communication between fixed points.
1029 (40) (a) "Food and food ingredients" means substances:
1030 (i) regardless of whether the substances are in:
1031 (A) liquid form;
1032 (B) concentrated form;
1033 (C) solid form;
1034 (D) frozen form;
1035 (E) dried form; or
1036 (F) dehydrated form; and
1037 (ii) that are:
1038 (A) sold for:
1039 (I) ingestion by humans; or
1040 (II) chewing by humans; and
1041 (B) consumed for the substance's:
1042 (I) taste; or
1043 (II) nutritional value.
1044 (b) "Food and food ingredients" includes an item described in Subsection (75)(b)(iii).
1045 (c) "Food and food ingredients" does not include:
1046 (i) an alcoholic beverage;
1047 (ii) tobacco; or
1048 (iii) prepared food.
1049 (41) (a) "Fundraising sales" means sales:
1050 (i) (A) made by a school; or

1051 (B) made by a school student;
1052 (ii) that are for the purpose of raising funds for the school to purchase equipment,
1053 materials, or provide transportation; and
1054 (iii) that are part of an officially sanctioned school activity.
1055 (b) For purposes of Subsection (41)(a)(iii), "officially sanctioned school activity"
1056 means a school activity:
1057 (i) that is conducted in accordance with a formal policy adopted by the school or school
1058 district governing the authorization and supervision of fundraising activities;
1059 (ii) that does not directly or indirectly compensate an individual teacher or other
1060 educational personnel by direct payment, commissions, or payment in kind; and
1061 (iii) the net or gross revenues from which are deposited in a dedicated account
1062 controlled by the school or school district.
1063 (42) "Geothermal energy" means energy contained in heat that continuously flows
1064 outward from the earth that is used as the sole source of energy to produce electricity.
1065 (43) "Governing board of the agreement" means the governing board of the agreement
1066 that is:
1067 (a) authorized to administer the agreement; and
1068 (b) established in accordance with the agreement.
1069 (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
1070 (i) the executive branch of the state, including all departments, institutions, boards,
1071 divisions, bureaus, offices, commissions, and committees;
1072 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
1073 Office of the Court Administrator, and similar administrative units in the judicial branch;
1074 (iii) the legislative branch of the state, including the House of Representatives, the
1075 Senate, the Legislative Printing Office, the Office of Legislative Research and General
1076 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
1077 Analyst;
1078 (iv) the National Guard;
1079 (v) an independent entity as defined in Section 63E-1-102 ; or
1080 (vi) a political subdivision as defined in Section 17B-1-102 .
1081 (b) "Governmental entity" does not include the state systems of public and higher

1082 education, including:
1083 (i) a college campus of the Utah College of Applied Technology;
1084 (ii) a school;
1085 (iii) the State Board of Education;
1086 (iv) the State Board of Regents; or
1087 (v) a state institution of higher education as defined in Section 53B-3-102 .
1088 (45) "Hydroelectric energy" means water used as the sole source of energy to produce
1089 electricity.
1090 (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
1091 other fuels:
1092 (a) in mining or extraction of minerals;
1093 (b) in agricultural operations to produce an agricultural product up to the time of
1094 harvest or placing the agricultural product into a storage facility, including:
1095 (i) commercial greenhouses;
1096 (ii) irrigation pumps;
1097 (iii) farm machinery;
1098 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
1099 registered under Title 41, Chapter 1a, Part 2, Registration; and
1100 (v) other farming activities;
1101 (c) in manufacturing tangible personal property at an establishment described in SIC
1102 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
1103 Executive Office of the President, Office of Management and Budget;
1104 (d) by a scrap recycler if:
1105 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1106 one or more of the following items into prepared grades of processed materials for use in new
1107 products:
1108 (A) iron;
1109 (B) steel;
1110 (C) nonferrous metal;
1111 (D) paper;
1112 (E) glass;

1113 (F) plastic;
1114 (G) textile; or
1115 (H) rubber; and
1116 (ii) the new products under Subsection (46)(d)(i) would otherwise be made with
1117 nonrecycled materials; or
1118 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
1119 cogeneration facility as defined in Section 54-2-1 .
1120 (47) (a) Except as provided in Subsection (47)(b), "installation charge" means a charge
1121 for installing:
1122 (i) tangible personal property; or
1123 (ii) a product transferred electronically.
1124 (b) "Installation charge" does not include a charge for repairs or renovations of:
1125 (i) tangible personal property; or
1126 (ii) a product transferred electronically.
1127 (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
1128 personal property or a product transferred electronically for:
1129 (i) (A) a fixed term; or
1130 (B) an indeterminate term; and
1131 (ii) consideration.
1132 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
1133 amount of consideration may be increased or decreased by reference to the amount realized
1134 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1135 Code.
1136 (c) "Lease" or "rental" does not include:
1137 (i) a transfer of possession or control of property under a security agreement or
1138 deferred payment plan that requires the transfer of title upon completion of the required
1139 payments;
1140 (ii) a transfer of possession or control of property under an agreement that requires the
1141 transfer of title:
1142 (A) upon completion of required payments; and
1143 (B) if the payment of an option price does not exceed the greater of:

1144 (I) $100; or
1145 (II) 1% of the total required payments; or
1146 (iii) providing tangible personal property along with an operator for a fixed period of
1147 time or an indeterminate period of time if the operator is necessary for equipment to perform as
1148 designed.
1149 (d) For purposes of Subsection (48)(c)(iii), an operator is necessary for equipment to
1150 perform as designed if the operator's duties exceed the:
1151 (i) set-up of tangible personal property;
1152 (ii) maintenance of tangible personal property; or
1153 (iii) inspection of tangible personal property.
1154 (49) "Load and leave" means delivery to a purchaser by use of a tangible storage media
1155 if the tangible storage media is not physically transferred to the purchaser.
1156 (50) "Local taxing jurisdiction" means a:
1157 (a) county that is authorized to impose an agreement sales and use tax;
1158 (b) city that is authorized to impose an agreement sales and use tax; or
1159 (c) town that is authorized to impose an agreement sales and use tax.
1160 (51) "Manufactured home" is as defined in Section 58-56-3 .
1161 (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
1162 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
1163 Industrial Classification Manual of the federal Executive Office of the President, Office of
1164 Management and Budget;
1165 (b) a scrap recycler if:
1166 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1167 one or more of the following items into prepared grades of processed materials for use in new
1168 products:
1169 (A) iron;
1170 (B) steel;
1171 (C) nonferrous metal;
1172 (D) paper;
1173 (E) glass;
1174 (F) plastic;

1175 (G) textile; or
1176 (H) rubber; and
1177 (ii) the new products under Subsection (52)(b)(i) would otherwise be made with
1178 nonrecycled materials; or
1179 (c) a cogeneration facility as defined in Section 54-2-1 .
1180 (53) "Member of the immediate family of the producer" means a person who is related
1181 to a producer described in Subsection 59-12-104 (20)(a) as a:
1182 (a) child or stepchild, regardless of whether the child or stepchild is:
1183 (i) an adopted child or adopted stepchild; or
1184 (ii) a foster child or foster stepchild;
1185 (b) grandchild or stepgrandchild;
1186 (c) grandparent or stepgrandparent;
1187 (d) nephew or stepnephew;
1188 (e) niece or stepniece;
1189 (f) parent or stepparent;
1190 (g) sibling or stepsibling;
1191 (h) spouse;
1192 (i) person who is the spouse of a person described in Subsections (53)(a) through (g);
1193 or
1194 (j) person similar to a person described in Subsections (53)(a) through (i) as
1195 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1196 Administrative Rulemaking Act.
1197 (54) "Mobile home" is as defined in Section 58-56-3 .
1198 (55) "Mobile telecommunications service" is as defined in the Mobile
1199 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1200 (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
1201 the technology used, if:
1202 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1203 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1204 (iii) the origination point described in Subsection (56)(a)(i) and the termination point
1205 described in Subsection (56)(a)(ii) are not fixed.

1206 (b) "Mobile wireless service" includes a telecommunications service that is provided
1207 by a commercial mobile radio service provider.
1208 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1209 commission may by rule define "commercial mobile radio service provider."
1210 (57) (a) Except as provided in Subsection (57)(c), "mobility enhancing equipment"
1211 means equipment that is:
1212 (i) primarily and customarily used to provide or increase the ability to move from one
1213 place to another;
1214 (ii) appropriate for use in a:
1215 (A) home; or
1216 (B) motor vehicle; and
1217 (iii) not generally used by persons with normal mobility.
1218 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1219 the equipment described in Subsection (57)(a).
1220 (c) Notwithstanding Subsection (57)(a), "mobility enhancing equipment" does not
1221 include:
1222 (i) a motor vehicle;
1223 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1224 vehicle manufacturer;
1225 (iii) durable medical equipment; or
1226 (iv) a prosthetic device.
1227 (58) "Model 1 seller" means a seller that has selected a certified service provider as the
1228 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
1229 use taxes other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
1230 own purchases.
1231 (59) "Model 2 seller" means a seller that:
1232 (a) except as provided in Subsection (59)(b), has selected a certified automated system
1233 to perform the seller's sales tax functions for agreement sales and use taxes; and
1234 (b) notwithstanding Subsection (59)(a), retains responsibility for remitting all of the
1235 sales tax:
1236 (i) collected by the seller; and

1237 (ii) to the appropriate local taxing jurisdiction.
1238 (60) (a) Subject to Subsection (60)(b), "model 3 seller" means a seller that has:
1239 (i) sales in at least five states that are members of the agreement;
1240 (ii) total annual sales revenues of at least $500,000,000;
1241 (iii) a proprietary system that calculates the amount of tax:
1242 (A) for an agreement sales and use tax; and
1243 (B) due to each local taxing jurisdiction; and
1244 (iv) entered into a performance agreement with the governing board of the agreement.
1245 (b) For purposes of Subsection (60)(a), "model 3 seller" includes an affiliated group of
1246 sellers using the same proprietary system.
1247 (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
1248 (62) "Motor vehicle" is as defined in Section 41-1a-102 .
1249 (63) "Oil shale" means a group of fine black to dark brown shales containing
1250 bituminous material that yields petroleum upon distillation.
1251 (64) (a) "Other fuels" means products that burn independently to produce heat or
1252 energy.
1253 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1254 personal property.
1255 (65) (a) "Paging service" means a telecommunications service that provides
1256 transmission of a coded radio signal for the purpose of activating a specific pager.
1257 (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
1258 includes a transmission by message or sound.
1259 (66) "Pawnbroker" is as defined in Section 13-32a-102 .
1260 (67) "Pawn transaction" is as defined in Section 13-32a-102 .
1261 (68) (a) "Permanently attached to real property" means that for tangible personal
1262 property attached to real property:
1263 (i) the attachment of the tangible personal property to the real property:
1264 (A) is essential to the use of the tangible personal property; and
1265 (B) suggests that the tangible personal property will remain attached to the real
1266 property in the same place over the useful life of the tangible personal property; or
1267 (ii) if the tangible personal property is detached from the real property, the detachment

1268 would:
1269 (A) cause substantial damage to the tangible personal property; or
1270 (B) require substantial alteration or repair of the real property to which the tangible
1271 personal property is attached.
1272 (b) "Permanently attached to real property" includes:
1273 (i) the attachment of an accessory to the tangible personal property if the accessory is:
1274 (A) essential to the operation of the tangible personal property; and
1275 (B) attached only to facilitate the operation of the tangible personal property;
1276 (ii) a temporary detachment of tangible personal property from real property for a
1277 repair or renovation if the repair or renovation is performed where the tangible personal
1278 property and real property are located; or
1279 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1280 Subsection (68)(c)(iii) or (iv).
1281 (c) "Permanently attached to real property" does not include:
1282 (i) the attachment of portable or movable tangible personal property to real property if
1283 that portable or movable tangible personal property is attached to real property only for:
1284 (A) convenience;
1285 (B) stability; or
1286 (C) for an obvious temporary purpose;
1287 (ii) the detachment of tangible personal property from real property except for the
1288 detachment described in Subsection (68)(b)(ii);
1289 (iii) an attachment of the following tangible personal property to real property if the
1290 attachment to real property is only through a line that supplies water, electricity, gas,
1291 telecommunications, cable, or supplies a similar item as determined by the commission by rule
1292 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1293 (A) a computer;
1294 (B) a telephone;
1295 (C) a television; or
1296 (D) tangible personal property similar to Subsections (68)(c)(iii)(A) through (C) as
1297 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1298 Administrative Rulemaking Act; or

1299 (iv) an item listed in Subsection (108)(c).
1300 (69) "Person" includes any individual, firm, partnership, joint venture, association,
1301 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1302 municipality, district, or other local governmental entity of the state, or any group or
1303 combination acting as a unit.
1304 (70) "Place of primary use":
1305 (a) for telecommunications service other than mobile telecommunications service,
1306 means the street address representative of where the customer's use of the telecommunications
1307 service primarily occurs, which shall be:
1308 (i) the residential street address of the customer; or
1309 (ii) the primary business street address of the customer; or
1310 (b) for mobile telecommunications service, is as defined in the Mobile
1311 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1312 (71) (a) "Postpaid calling service" means a telecommunications service a person
1313 obtains by making a payment on a call-by-call basis:
1314 (i) through the use of a:
1315 (A) bank card;
1316 (B) credit card;
1317 (C) debit card; or
1318 (D) travel card; or
1319 (ii) by a charge made to a telephone number that is not associated with the origination
1320 or termination of the telecommunications service.
1321 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1322 service, that would be a prepaid wireless calling service if the service were exclusively a
1323 telecommunications service.
1324 (72) "Postproduction" means an activity related to the finishing or duplication of a
1325 medium described in Subsection 59-12-104 (54)(a).
1326 (73) "Prepaid calling service" means a telecommunications service:
1327 (a) that allows a purchaser access to telecommunications service that is exclusively
1328 telecommunications service;
1329 (b) that:

1330 (i) is paid for in advance; and
1331 (ii) enables the origination of a call using an:
1332 (A) access number; or
1333 (B) authorization code;
1334 (c) that is dialed:
1335 (i) manually; or
1336 (ii) electronically; and
1337 (d) sold in predetermined units or dollars that decline:
1338 (i) by a known amount; and
1339 (ii) with use.
1340 (74) "Prepaid wireless calling service" means a telecommunications service:
1341 (a) that provides the right to utilize:
1342 (i) mobile wireless service; and
1343 (ii) other service that is not a telecommunications service, including:
1344 (A) the download of a product transferred electronically;
1345 (B) a content service; or
1346 (C) an ancillary service;
1347 (b) that:
1348 (i) is paid for in advance; and
1349 (ii) enables the origination of a call using an:
1350 (A) access number; or
1351 (B) authorization code;
1352 (c) that is dialed:
1353 (i) manually; or
1354 (ii) electronically; and
1355 (d) sold in predetermined units or dollars that decline:
1356 (i) by a known amount; and
1357 (ii) with use.
1358 (75) (a) "Prepared food" means:
1359 (i) food:
1360 (A) sold in a heated state; or

1361 (B) heated by a seller;
1362 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1363 item; or
1364 (iii) except as provided in Subsection (75)(c), food sold with an eating utensil provided
1365 by the seller, including a:
1366 (A) plate;
1367 (B) knife;
1368 (C) fork;
1369 (D) spoon;
1370 (E) glass;
1371 (F) cup;
1372 (G) napkin; or
1373 (H) straw.
1374 (b) "Prepared food" does not include:
1375 (i) food that a seller only:
1376 (A) cuts;
1377 (B) repackages; or
1378 (C) pasteurizes; or
1379 (ii) (A) the following:
1380 (I) raw egg;
1381 (II) raw fish;
1382 (III) raw meat;
1383 (IV) raw poultry; or
1384 (V) a food containing an item described in Subsections (75)(b)(ii)(A)(I) through (IV);
1385 and
1386 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1387 Food and Drug Administration's Food Code that a consumer cook the items described in
1388 Subsection (75)(b)(ii)(A) to prevent food borne illness; or
1389 (iii) the following if sold without eating utensils provided by the seller:
1390 (A) food and food ingredients sold by a seller if the seller's proper primary
1391 classification under the 2002 North American Industry Classification System of the federal

1392 Executive Office of the President, Office of Management and Budget, is manufacturing in
1393 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1394 Manufacturing;
1395 (B) food and food ingredients sold in an unheated state:
1396 (I) by weight or volume; and
1397 (II) as a single item; or
1398 (C) a bakery item, including:
1399 (I) a bagel;
1400 (II) a bar;
1401 (III) a biscuit;
1402 (IV) bread;
1403 (V) a bun;
1404 (VI) a cake;
1405 (VII) a cookie;
1406 (VIII) a croissant;
1407 (IX) a danish;
1408 (X) a donut;
1409 (XI) a muffin;
1410 (XII) a pastry;
1411 (XIII) a pie;
1412 (XIV) a roll;
1413 (XV) a tart;
1414 (XVI) a torte; or
1415 (XVII) a tortilla.
1416 (c) Notwithstanding Subsection (75)(a)(iii), an eating utensil provided by the seller
1417 does not include the following used to transport the food:
1418 (i) a container; or
1419 (ii) packaging.
1420 (76) "Prescription" means an order, formula, or recipe that is issued:
1421 (a) (i) orally;
1422 (ii) in writing;

1423 (iii) electronically; or
1424 (iv) by any other manner of transmission; and
1425 (b) by a licensed practitioner authorized by the laws of a state.
1426 (77) (a) Except as provided in Subsection (77)(b)(ii) or (iii), "prewritten computer
1427 software" means computer software that is not designed and developed:
1428 (i) by the author or other creator of the computer software; and
1429 (ii) to the specifications of a specific purchaser.
1430 (b) "Prewritten computer software" includes:
1431 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1432 software is not designed and developed:
1433 (A) by the author or other creator of the computer software; and
1434 (B) to the specifications of a specific purchaser;
1435 (ii) notwithstanding Subsection (77)(a), computer software designed and developed by
1436 the author or other creator of the computer software to the specifications of a specific purchaser
1437 if the computer software is sold to a person other than the purchaser; or
1438 (iii) notwithstanding Subsection (77)(a) and except as provided in Subsection (77)(c),
1439 prewritten computer software or a prewritten portion of prewritten computer software:
1440 (A) that is modified or enhanced to any degree; and
1441 (B) if the modification or enhancement described in Subsection (77)(b)(iii)(A) is
1442 designed and developed to the specifications of a specific purchaser.
1443 (c) Notwithstanding Subsection (77)(b)(iii), "prewritten computer software" does not
1444 include a modification or enhancement described in Subsection (77)(b)(iii) if the charges for
1445 the modification or enhancement are:
1446 (i) reasonable; and
1447 (ii) separately stated on the invoice or other statement of price provided to the
1448 purchaser.
1449 (78) (a) "Private communication service" means a telecommunications service:
1450 (i) that entitles a customer to exclusive or priority use of one or more communications
1451 channels between or among termination points; and
1452 (ii) regardless of the manner in which the one or more communications channels are
1453 connected.

1454 (b) "Private communications service" includes the following provided in connection
1455 with the use of one or more communications channels:
1456 (i) an extension line;
1457 (ii) a station;
1458 (iii) switching capacity; or
1459 (iv) another associated service that is provided in connection with the use of one or
1460 more communications channels as defined in Section 59-12-215 .
1461 (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
1462 (i) artificially replace a missing portion of the body;
1463 (ii) prevent or correct a physical deformity or physical malfunction; or
1464 (iii) support a weak or deformed portion of the body.
1465 (b) "Prosthetic device" includes:
1466 (i) parts used in the repairs or renovation of a prosthetic device;
1467 (ii) replacement parts for a prosthetic device;
1468 (iii) a dental prosthesis; or
1469 (iv) a hearing aid.
1470 (c) "Prosthetic device" does not include:
1471 (i) corrective eyeglasses; or
1472 (ii) contact lenses.
1473 (80) (a) "Protective equipment" means an item:
1474 (i) for human wear; and
1475 (ii) that is:
1476 (A) designed as protection:
1477 (I) to the wearer against injury or disease; or
1478 (II) against damage or injury of other persons or property; and
1479 (B) not suitable for general use.
1480 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1481 commission shall make rules:
1482 (i) listing the items that constitute "protective equipment"; and
1483 (ii) that are consistent with the list of items that constitute "protective equipment"
1484 under the agreement.

1485 (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
1486 printed matter, other than a photocopy:
1487 (i) regardless of:
1488 (A) characteristics;
1489 (B) copyright;
1490 (C) form;
1491 (D) format;
1492 (E) method of reproduction; or
1493 (F) source; and
1494 (ii) made available in printed or electronic format.
1495 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1496 commission may by rule define the term "photocopy."
1497 (82) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1498 (i) valued in money; and
1499 (ii) for which tangible personal property, a product transferred electronically, or
1500 services are:
1501 (A) sold;
1502 (B) leased; or
1503 (C) rented.
1504 (b) "Purchase price" and "sales price" include:
1505 (i) the seller's cost of the tangible personal property, a product transferred
1506 electronically, or services sold;
1507 (ii) expenses of the seller, including:
1508 (A) the cost of materials used;
1509 (B) a labor cost;
1510 (C) a service cost;
1511 (D) interest;
1512 (E) a loss;
1513 (F) the cost of transportation to the seller; or
1514 (G) a tax imposed on the seller;
1515 (iii) a charge by the seller for any service necessary to complete the sale; or

1516 (iv) consideration a seller receives from a person other than the purchaser if:
1517 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1518 and
1519 (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
1520 price reduction or discount on the sale;
1521 (B) the seller has an obligation to pass the price reduction or discount through to the
1522 purchaser;
1523 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1524 the seller at the time of the sale to the purchaser; and
1525 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1526 seller to claim a price reduction or discount; and
1527 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1528 coupon, or other documentation with the understanding that the person other than the seller
1529 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1530 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1531 organization allowed a price reduction or discount, except that a preferred customer card that is
1532 available to any patron of a seller does not constitute membership in a group or organization
1533 allowed a price reduction or discount; or
1534 (III) the price reduction or discount is identified as a third party price reduction or
1535 discount on the:
1536 (Aa) invoice the purchaser receives; or
1537 (Bb) certificate, coupon, or other documentation the purchaser presents.
1538 (c) "Purchase price" and "sales price" do not include:
1539 (i) a discount:
1540 (A) in a form including:
1541 (I) cash;
1542 (II) term; or
1543 (III) coupon;
1544 (B) that is allowed by a seller;
1545 (C) taken by a purchaser on a sale; and
1546 (D) that is not reimbursed by a third party; or

1547 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1548 provided to the purchaser:
1549 (A) the following from credit extended on the sale of tangible personal property or
1550 services:
1551 (I) a carrying charge;
1552 (II) a financing charge; or
1553 (III) an interest charge;
1554 (B) a delivery charge;
1555 (C) an installation charge;
1556 (D) a manufacturer rebate on a motor vehicle; or
1557 (E) a tax or fee legally imposed directly on the consumer.
1558 (83) "Purchaser" means a person to whom:
1559 (a) a sale of tangible personal property is made;
1560 (b) a product is transferred electronically; or
1561 (c) a service is furnished.
1562 (84) "Regularly rented" means:
1563 (a) rented to a guest for value three or more times during a calendar year; or
1564 (b) advertised or held out to the public as a place that is regularly rented to guests for
1565 value.
1566 (85) "Renewable energy" means:
1567 (a) biomass energy;
1568 (b) hydroelectric energy;
1569 (c) geothermal energy;
1570 (d) solar energy; or
1571 (e) wind energy.
1572 (86) (a) "Renewable energy production facility" means a facility that:
1573 (i) uses renewable energy to produce electricity; and
1574 (ii) has a production capacity of 20 kilowatts or greater.
1575 (b) A facility is a renewable energy production facility regardless of whether the
1576 facility is:
1577 (i) connected to an electric grid; or

1578 (ii) located on the premises of an electricity consumer.
1579 (87) "Rental" is as defined in Subsection (48).
1580 (88) "Repairs or renovations of tangible personal property" means:
1581 (a) a repair or renovation of tangible personal property that is not permanently attached
1582 to real property; or
1583 (b) attaching tangible personal property or a product that is transferred electronically to
1584 other tangible personal property if the other tangible personal property to which the tangible
1585 personal property or product that is transferred electronically is attached is not permanently
1586 attached to real property.
1587 (89) "Research and development" means the process of inquiry or experimentation
1588 aimed at the discovery of facts, devices, technologies, or applications and the process of
1589 preparing those devices, technologies, or applications for marketing.
1590 (90) (a) "Residential telecommunications services" means a telecommunications
1591 service or an ancillary service that is provided to an individual for personal use:
1592 (i) at a residential address; or
1593 (ii) at an institution, including a nursing home or a school, if the telecommunications
1594 service or ancillary service is provided to and paid for by the individual residing at the
1595 institution rather than the institution.
1596 (b) For purposes of Subsection (90)(a), a residential address includes an:
1597 (i) apartment; or
1598 (ii) other individual dwelling unit.
1599 (91) "Residential use" means the use in or around a home, apartment building, sleeping
1600 quarters, and similar facilities or accommodations.
1601 (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1602 than:
1603 (a) resale;
1604 (b) sublease; or
1605 (c) subrent.
1606 (93) (a) "Retailer" means any person engaged in a regularly organized business in
1607 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
1608 who is selling to the user or consumer and not for resale.

1609 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1610 engaged in the business of selling to users or consumers within the state.
1611 (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1612 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1613 Subsection 59-12-103 (1), for consideration.
1614 (b) "Sale" includes:
1615 (i) installment and credit sales;
1616 (ii) any closed transaction constituting a sale;
1617 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1618 chapter;
1619 (iv) any transaction if the possession of property is transferred but the seller retains the
1620 title as security for the payment of the price; and
1621 (v) any transaction under which right to possession, operation, or use of any article of
1622 tangible personal property is granted under a lease or contract and the transfer of possession
1623 would be taxable if an outright sale were made.
1624 (95) "Sale at retail" is as defined in Subsection (92).
1625 (96) "Sale-leaseback transaction" means a transaction by which title to tangible
1626 personal property or a product transferred electronically that is subject to a tax under this
1627 chapter is transferred:
1628 (a) by a purchaser-lessee;
1629 (b) to a lessor;
1630 (c) for consideration; and
1631 (d) if:
1632 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1633 of the tangible personal property or product transferred electronically;
1634 (ii) the sale of the tangible personal property or product transferred electronically to the
1635 lessor is intended as a form of financing:
1636 (A) for the tangible personal property or product transferred electronically; and
1637 (B) to the purchaser-lessee; and
1638 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1639 is required to:

1640 (A) capitalize the tangible personal property or product transferred electronically for
1641 financial reporting purposes; and
1642 (B) account for the lease payments as payments made under a financing arrangement.
1643 (97) "Sales price" is as defined in Subsection (82).
1644 (98) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1645 amounts charged by a school:
1646 (i) sales that are directly related to the school's educational functions or activities
1647 including:
1648 (A) the sale of:
1649 (I) textbooks;
1650 (II) textbook fees;
1651 (III) laboratory fees;
1652 (IV) laboratory supplies; or
1653 (V) safety equipment;
1654 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1655 that:
1656 (I) a student is specifically required to wear as a condition of participation in a
1657 school-related event or school-related activity; and
1658 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1659 place of ordinary clothing;
1660 (C) sales of the following if the net or gross revenues generated by the sales are
1661 deposited into a school district fund or school fund dedicated to school meals:
1662 (I) food and food ingredients; or
1663 (II) prepared food; or
1664 (D) transportation charges for official school activities; or
1665 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1666 event or school-related activity.
1667 (b) "Sales relating to schools" does not include:
1668 (i) bookstore sales of items that are not educational materials or supplies;
1669 (ii) except as provided in Subsection (98)(a)(i)(B):
1670 (A) clothing;

1671 (B) clothing accessories or equipment;
1672 (C) protective equipment; or
1673 (D) sports or recreational equipment; or
1674 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1675 event or school-related activity if the amounts paid or charged are passed through to a person:
1676 (A) other than a:
1677 (I) school;
1678 (II) nonprofit organization authorized by a school board or a governing body of a
1679 private school to organize and direct a competitive secondary school activity; or
1680 (III) nonprofit association authorized by a school board or a governing body of a
1681 private school to organize and direct a competitive secondary school activity; and
1682 (B) that is required to collect sales and use taxes under this chapter.
1683 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1684 commission may make rules defining the term "passed through."
1685 (99) For purposes of this section and Section 59-12-104 , "school":
1686 (a) means:
1687 (i) an elementary school or a secondary school that:
1688 (A) is a:
1689 (I) public school; or
1690 (II) private school; and
1691 (B) provides instruction for one or more grades kindergarten through 12; or
1692 (ii) a public school district; and
1693 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1694 (100) "Seller" means a person that makes a sale, lease, or rental of:
1695 (a) tangible personal property;
1696 (b) a product transferred electronically; or
1697 (c) a service.
1698 (101) (a) "Semiconductor fabricating, processing, research, or development materials"
1699 means tangible personal property or a product transferred electronically if the tangible personal
1700 property or product transferred electronically is:
1701 (i) used primarily in the process of:

1702 (A) (I) manufacturing a semiconductor;
1703 (II) fabricating a semiconductor; or
1704 (III) research or development of a:
1705 (Aa) semiconductor; or
1706 (Bb) semiconductor manufacturing process; or
1707 (B) maintaining an environment suitable for a semiconductor; or
1708 (ii) consumed primarily in the process of:
1709 (A) (I) manufacturing a semiconductor;
1710 (II) fabricating a semiconductor; or
1711 (III) research or development of a:
1712 (Aa) semiconductor; or
1713 (Bb) semiconductor manufacturing process; or
1714 (B) maintaining an environment suitable for a semiconductor.
1715 (b) "Semiconductor fabricating, processing, research, or development materials"
1716 includes:
1717 (i) parts used in the repairs or renovations of tangible personal property or a product
1718 transferred electronically described in Subsection (101)(a); or
1719 (ii) a chemical, catalyst, or other material used to:
1720 (A) produce or induce in a semiconductor a:
1721 (I) chemical change; or
1722 (II) physical change;
1723 (B) remove impurities from a semiconductor; or
1724 (C) improve the marketable condition of a semiconductor.
1725 (102) "Senior citizen center" means a facility having the primary purpose of providing
1726 services to the aged as defined in Section 62A-3-101 .
1727 (103) "Simplified electronic return" means the electronic return:
1728 (a) described in Section 318(C) of the agreement; and
1729 (b) approved by the governing board of the agreement.
1730 (104) "Solar energy" means the sun used as the sole source of energy for producing
1731 electricity.
1732 (105) (a) "Sports or recreational equipment" means an item:

1733 (i) designed for human use; and
1734 (ii) that is:
1735 (A) worn in conjunction with:
1736 (I) an athletic activity; or
1737 (II) a recreational activity; and
1738 (B) not suitable for general use.
1739 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1740 commission shall make rules:
1741 (i) listing the items that constitute "sports or recreational equipment"; and
1742 (ii) that are consistent with the list of items that constitute "sports or recreational
1743 equipment" under the agreement.
1744 (106) "State" means the state of Utah, its departments, and agencies.
1745 (107) "Storage" means any keeping or retention of tangible personal property or any
1746 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
1747 sale in the regular course of business.
1748 (108) (a) Except as provided in Subsection (108) (d) or (e), "tangible personal
1749 property" means personal property that:
1750 (i) may be:
1751 (A) seen;
1752 (B) weighed;
1753 (C) measured;
1754 (D) felt; or
1755 (E) touched; or
1756 (ii) is in any manner perceptible to the senses.
1757 (b) "Tangible personal property" includes:
1758 (i) electricity;
1759 (ii) water;
1760 (iii) gas;
1761 (iv) steam; or
1762 (v) prewritten computer software.
1763 (c) "Tangible personal property" includes the following regardless of whether the item

1764 is attached to real property:
1765 (i) a dishwasher;
1766 (ii) a dryer;
1767 (iii) a freezer;
1768 (iv) a microwave;
1769 (v) a refrigerator;
1770 (vi) a stove;
1771 (vii) a washer; or
1772 (viii) an item similar to Subsections (108)(c)(i) through (vii) as determined by the
1773 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1774 Rulemaking Act.
1775 (d) "Tangible personal property" does not include a product that is transferred
1776 electronically.
1777 (e) "Tangible personal property" does not include the following if attached to real
1778 property, regardless of whether the attachment to real property is only through a line that
1779 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1780 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1781 Rulemaking Act:
1782 (i) a hot water heater;
1783 (ii) a water filtration system; or
1784 (iii) a water softener system.
1785 (109) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1786 and require further processing other than mechanical blending before becoming finished
1787 petroleum products.
1788 (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1789 software" means an item listed in Subsection (110)(b) if that item is purchased or leased
1790 primarily to enable or facilitate one or more of the following to function:
1791 (i) telecommunications switching or routing equipment, machinery, or software; or
1792 (ii) telecommunications transmission equipment, machinery, or software.
1793 (b) The following apply to Subsection (110)(a):
1794 (i) a pole;

1795 (ii) software;
1796 (iii) a supplementary power supply;
1797 (iv) temperature or environmental equipment or machinery;
1798 (v) test equipment;
1799 (vi) a tower; or
1800 (vii) equipment, machinery, or software that functions similarly to an item listed in
1801 Subsections (110)(b)(i) through (vi) as determined by the commission by rule made in
1802 accordance with Subsection (110)(c).
1803 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1804 commission may by rule define what constitutes equipment, machinery, or software that
1805 functions similarly to an item listed in Subsections (110)(b)(i) through (vi).
1806 (111) "Telecommunications equipment, machinery, or software required for 911
1807 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1808 Sec. 20.18.
1809 (112) "Telecommunications maintenance or repair equipment, machinery, or software"
1810 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1811 one or more of the following, regardless of whether the equipment, machinery, or software is
1812 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1813 following:
1814 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1815 (b) telecommunications switching or routing equipment, machinery, or software; or
1816 (c) telecommunications transmission equipment, machinery, or software.
1817 (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
1818 transmission of audio, data, video, voice, or any other information or signal to a point, or
1819 among or between points.
1820 (b) "Telecommunications service" includes:
1821 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1822 processing application is used to act:
1823 (A) on the code, form, or protocol of the content;
1824 (B) for the purpose of electronic conveyance, routing, or transmission; and
1825 (C) regardless of whether the service:

1826 (I) is referred to as voice over Internet protocol service; or
1827 (II) is classified by the Federal Communications Commission as enhanced or value
1828 added;
1829 (ii) an 800 service;
1830 (iii) a 900 service;
1831 (iv) a fixed wireless service;
1832 (v) a mobile wireless service;
1833 (vi) a postpaid calling service;
1834 (vii) a prepaid calling service;
1835 (viii) a prepaid wireless calling service; or
1836 (ix) a private communications service.
1837 (c) "Telecommunications service" does not include:
1838 (i) advertising, including directory advertising;
1839 (ii) an ancillary service;
1840 (iii) a billing and collection service provided to a third party;
1841 (iv) a data processing and information service if:
1842 (A) the data processing and information service allows data to be:
1843 (I) (Aa) acquired;
1844 (Bb) generated;
1845 (Cc) processed;
1846 (Dd) retrieved; or
1847 (Ee) stored; and
1848 (II) delivered by an electronic transmission to a purchaser; and
1849 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1850 or information;
1851 (v) installation or maintenance of the following on a customer's premises:
1852 (A) equipment; or
1853 (B) wiring;
1854 (vi) Internet access service;
1855 (vii) a paging service;
1856 (viii) a product transferred electronically, including:

1857 (A) music;
1858 (B) reading material;
1859 (C) a ring tone;
1860 (D) software; or
1861 (E) video;
1862 (ix) a radio and television audio and video programming service:
1863 (A) regardless of the medium; and
1864 (B) including:
1865 (I) furnishing conveyance, routing, or transmission of a television audio and video
1866 programming service by a programming service provider;
1867 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1868 (III) audio and video programming services delivered by a commercial mobile radio
1869 service provider as defined in 47 C.F.R. Sec. 20.3;
1870 (x) a value-added nonvoice data service; or
1871 (xi) tangible personal property.
1872 (114) (a) "Telecommunications service provider" means a person that:
1873 (i) owns, controls, operates, or manages a telecommunications service; and
1874 (ii) engages in an activity described in Subsection (114)(a)(i) for the shared use with or
1875 resale to any person of the telecommunications service.
1876 (b) A person described in Subsection (114)(a) is a telecommunications service provider
1877 whether or not the Public Service Commission of Utah regulates:
1878 (i) that person; or
1879 (ii) the telecommunications service that the person owns, controls, operates, or
1880 manages.
1881 (115) (a) "Telecommunications switching or routing equipment, machinery, or
1882 software" means an item listed in Subsection (115)(b) if that item is purchased or leased
1883 primarily for switching or routing:
1884 (i) an ancillary service;
1885 (ii) data communications;
1886 (iii) voice communications; or
1887 (iv) telecommunications service.

1888 (b) The following apply to Subsection (115)(a):
1889 (i) a bridge;
1890 (ii) a computer;
1891 (iii) a cross connect;
1892 (iv) a modem;
1893 (v) a multiplexer;
1894 (vi) plug in circuitry;
1895 (vii) a router;
1896 (viii) software;
1897 (ix) a switch; or
1898 (x) equipment, machinery, or software that functions similarly to an item listed in
1899 Subsections (115)(b)(i) through (ix) as determined by the commission by rule made in
1900 accordance with Subsection (115)(c).
1901 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1902 commission may by rule define what constitutes equipment, machinery, or software that
1903 functions similarly to an item listed in Subsections (115)(b)(i) through (ix).
1904 (116) (a) "Telecommunications transmission equipment, machinery, or software"
1905 means an item listed in Subsection (116)(b) if that item is purchased or leased primarily for
1906 sending, receiving, or transporting:
1907 (i) an ancillary service;
1908 (ii) data communications;
1909 (iii) voice communications; or
1910 (iv) telecommunications service.
1911 (b) The following apply to Subsection (116)(a):
1912 (i) an amplifier;
1913 (ii) a cable;
1914 (iii) a closure;
1915 (iv) a conduit;
1916 (v) a controller;
1917 (vi) a duplexer;
1918 (vii) a filter;

1919 (viii) an input device;
1920 (ix) an input/output device;
1921 (x) an insulator;
1922 (xi) microwave machinery or equipment;
1923 (xii) an oscillator;
1924 (xiii) an output device;
1925 (xiv) a pedestal;
1926 (xv) a power converter;
1927 (xvi) a power supply;
1928 (xvii) a radio channel;
1929 (xviii) a radio receiver;
1930 (xix) a radio transmitter;
1931 (xx) a repeater;
1932 (xxi) software;
1933 (xxii) a terminal;
1934 (xxiii) a timing unit;
1935 (xxiv) a transformer;
1936 (xxv) a wire; or
1937 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1938 Subsections (116)(b)(i) through (xxv) as determined by the commission by rule made in
1939 accordance with Subsection (116)(c).
1940 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1941 commission may by rule define what constitutes equipment, machinery, or software that
1942 functions similarly to an item listed in Subsections (116)(b)(i) through (xxv).
1943 (117) "Tobacco" means:
1944 (a) a cigarette;
1945 (b) a cigar;
1946 (c) chewing tobacco;
1947 (d) pipe tobacco; or
1948 (e) any other item that contains tobacco.
1949 (118) "Unassisted amusement device" means an amusement device, skill device, or

1950 ride device that is started and stopped by the purchaser or renter of the right to use or operate
1951 the amusement device, skill device, or ride device.
1952 (119) (a) "Use" means the exercise of any right or power over tangible personal
1953 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
1954 incident to the ownership or the leasing of that tangible personal property, product transferred
1955 electronically, or service.
1956 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1957 property, a product transferred electronically, or a service in the regular course of business and
1958 held for resale.
1959 (120) "Value-added nonvoice data service" means a service:
1960 (a) that otherwise meets the definition of a telecommunications service except that a
1961 computer processing application is used to act primarily for a purpose other than conveyance,
1962 routing, or transmission; and
1963 (b) with respect to which a computer processing application is used to act on data or
1964 information:
1965 (i) code;
1966 (ii) content;
1967 (iii) form; or
1968 (iv) protocol.
1969 (121) (a) Subject to Subsection (121)(b), "vehicle" means the following that are
1970 required to be titled, registered, or titled and registered:
1971 (i) an aircraft as defined in Section 72-10-102 ;
1972 (ii) a vehicle as defined in Section 41-1a-102 ;
1973 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1974 (iv) a vessel as defined in Section 41-1a-102 .
1975 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1976 (i) a vehicle described in Subsection (121)(a); or
1977 (ii) (A) a locomotive;
1978 (B) a freight car;
1979 (C) railroad work equipment; or
1980 (D) other railroad rolling stock.

1981 (122) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1982 exchanging a vehicle as defined in Subsection (121).
1983 (123) (a) "Vertical service" means an ancillary service that:
1984 (i) is offered in connection with one or more telecommunications services; and
1985 (ii) offers an advanced calling feature that allows a customer to:
1986 (A) identify a caller; and
1987 (B) manage multiple calls and call connections.
1988 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1989 conference bridging service.
1990 (124) (a) "Voice mail service" means an ancillary service that enables a customer to
1991 receive, send, or store a recorded message.
1992 (b) "Voice mail service" does not include a vertical service that a customer is required
1993 to have in order to utilize a voice mail service.
1994 (125) (a) Except as provided in Subsection (125)(b), "waste energy facility" means a
1995 facility that generates electricity:
1996 (i) using as the primary source of energy waste materials that would be placed in a
1997 landfill or refuse pit if it were not used to generate electricity, including:
1998 (A) tires;
1999 (B) waste coal; or
2000 (C) oil shale; and
2001 (ii) in amounts greater than actually required for the operation of the facility.
2002 (b) "Waste energy facility" does not include a facility that incinerates:
2003 (i) municipal solid waste;
2004 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
2005 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2006 (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
2007 (127) "Wind energy" means wind used as the sole source of energy to produce
2008 electricity.
2009 (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
2010 location by the United States Postal Service.
2011 Section 8. Section 59-12-103 is amended to read:

2012 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
2013 tax revenues.
2014 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
2015 charged for the following transactions:
2016 (a) retail sales of tangible personal property made within the state;
2017 (b) amounts paid for:
2018 (i) telecommunications service, other than mobile telecommunications service, that
2019 originates and terminates within the boundaries of this state;
2020 (ii) mobile telecommunications service that originates and terminates within the
2021 boundaries of one state only to the extent permitted by the Mobile Telecommunications
2022 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
2023 (iii) an ancillary service associated with a:
2024 (A) telecommunications service described in Subsection (1)(b)(i); or
2025 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
2026 (c) sales of the following for commercial use:
2027 (i) gas;
2028 (ii) electricity;
2029 (iii) heat;
2030 (iv) coal;
2031 (v) fuel oil; or
2032 (vi) other fuels;
2033 (d) sales of the following for residential use:
2034 (i) gas;
2035 (ii) electricity;
2036 (iii) heat;
2037 (iv) coal;
2038 (v) fuel oil; or
2039 (vi) other fuels;
2040 (e) sales of prepared food;
2041 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
2042 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,

2043 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
2044 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
2045 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
2046 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
2047 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
2048 horseback rides, sports activities, or any other amusement, entertainment, recreation,
2049 exhibition, cultural, or athletic activity;
2050 (g) amounts paid or charged for services for repairs or renovations of tangible personal
2051 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
2052 (i) the tangible personal property; and
2053 (ii) parts used in the repairs or renovations of the tangible personal property described
2054 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
2055 of that tangible personal property;
2056 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
2057 assisted cleaning or washing of tangible personal property;
2058 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2059 accommodations and services that are regularly rented for less than 30 consecutive days;
2060 (j) amounts paid or charged for laundry or dry cleaning services;
2061 (k) amounts paid or charged for leases or rentals of tangible personal property if within
2062 this state the tangible personal property is:
2063 (i) stored;
2064 (ii) used; or
2065 (iii) otherwise consumed;
2066 (l) amounts paid or charged for tangible personal property if within this state the
2067 tangible personal property is:
2068 (i) stored;
2069 (ii) used; or
2070 (iii) consumed; and
2071 (m) amounts paid or charged for a sale:
2072 (i) (A) of a product that:
2073 (I) is transferred electronically; and

2074 (II) would be subject to a tax under this chapter if the product was transferred in a
2075 manner other than electronically; or
2076 (B) of a repair or renovation of a product that:
2077 (I) is transferred electronically; and
2078 (II) would be subject to a tax under this chapter if the product was transferred in a
2079 manner other than electronically; and
2080 (ii) regardless of whether the sale provides:
2081 (A) a right of permanent use of the product; or
2082 (B) a right to use the product that is less than a permanent use, including a right:
2083 (I) for a definite or specified length of time; and
2084 (II) that terminates upon the occurrence of a condition.
2085 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
2086 is imposed on a transaction described in Subsection (1) equal to the sum of:
2087 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2088 (A) [4.70%] 4.81%; and
2089 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2090 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2091 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2092 State Sales and Use Tax Act; and
2093 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
2094 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2095 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
2096 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2097 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2098 transaction under this chapter other than this part.
2099 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
2100 on a transaction described in Subsection (1)(d) equal to the sum of:
2101 (i) a state tax imposed on the transaction at a tax rate of 2%; and
2102 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2103 transaction under this chapter other than this part.
2104 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed

2105 on amounts paid or charged for food and food ingredients equal to the sum of:
2106 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2107 a tax rate of 1.75%; and
2108 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2109 amounts paid or charged for food and food ingredients under this chapter other than this part.
2110 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
2111 tangible personal property other than food and food ingredients, a state tax and a local tax is
2112 imposed on the entire bundled transaction equal to the sum of:
2113 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
2114 (I) the tax rate described in Subsection (2)(a)(i)(A); and
2115 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
2116 Sales and Use Tax Act, if the location of the transaction as determined under Sections
2117 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
2118 Additional State Sales and Use Tax Act; and
2119 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
2120 Sales and Use Tax Act, if the location of the transaction as determined under Sections
2121 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
2122 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2123 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2124 described in Subsection (2)(a)(ii).
2125 (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
2126 transaction described in Subsection (2)(d)(i):
2127 (A) if the sales price of the bundled transaction is attributable to tangible personal
2128 property, a product, or a service that is subject to taxation under this chapter and tangible
2129 personal property, a product, or service that is not subject to taxation under this chapter, the
2130 entire bundled transaction is subject to taxation under this chapter unless:
2131 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2132 personal property, product, or service that is not subject to taxation under this chapter from the
2133 books and records the seller keeps in the seller's regular course of business; or
2134 (II) state or federal law provides otherwise; or
2135 (B) if the sales price of a bundled transaction is attributable to two or more items of

2136 tangible personal property, products, or services that are subject to taxation under this chapter
2137 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2138 higher tax rate unless:
2139 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2140 personal property, product, or service that is subject to taxation under this chapter at the lower
2141 tax rate from the books and records the seller keeps in the seller's regular course of business; or
2142 (II) state or federal law provides otherwise.
2143 (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
2144 seller's regular course of business includes books and records the seller keeps in the regular
2145 course of business for nontax purposes.
2146 (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
2147 rate imposed under the following shall take effect on the first day of a calendar quarter:
2148 (i) Subsection (2)(a)(i)(A);
2149 (ii) Subsection (2)(b)(i);
2150 (iii) Subsection (2)(c)(i); or
2151 (iv) Subsection (2)(d)(i)(A)(I).
2152 (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
2153 begins after the effective date of the tax rate increase if the billing period for the transaction
2154 begins before the effective date of a tax rate increase imposed under:
2155 (A) Subsection (2)(a)(i)(A);
2156 (B) Subsection (2)(b)(i);
2157 (C) Subsection (2)(c)(i); or
2158 (D) Subsection (2)(d)(i)(A)(I).
2159 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
2160 billing period that began before the effective date of the repeal of the tax or the tax rate
2161 decrease if the billing period for the transaction begins before the effective date of the repeal of
2162 the tax or the tax rate decrease imposed under:
2163 (A) Subsection (2)(a)(i)(A);
2164 (B) Subsection (2)(b)(i);
2165 (C) Subsection (2)(c)(i); or
2166 (D) Subsection (2)(d)(i)(A)(I).

2167 (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
2168 is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
2169 or change in a tax rate takes effect:
2170 (A) on the first day of a calendar quarter; and
2171 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2172 (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
2173 (A) Subsection (2)(a)(i)(A);
2174 (B) Subsection (2)(b)(i);
2175 (C) Subsection (2)(c)(i); or
2176 (D) Subsection (2)(d)(i)(A)(I).
2177 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2178 the commission may by rule define the term "catalogue sale."
2179 (3) (a) The following state taxes shall be deposited into the General Fund:
2180 (i) the tax imposed by Subsection (2)(a)(i)(A);
2181 (ii) the tax imposed by Subsection (2)(b)(i);
2182 (iii) the tax imposed by Subsection (2)(c)(i); or
2183 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
2184 (b) The following local taxes shall be distributed to a county, city, or town as provided
2185 in this chapter:
2186 (i) the tax imposed by Subsection (2)(a)(ii);
2187 (ii) the tax imposed by Subsection (2)(b)(ii);
2188 (iii) the tax imposed by Subsection (2)(c)(ii); and
2189 (iv) the tax imposed by Subsection (2)(d)(i)(B).
2190 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2191 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
2192 through (g):
2193 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2194 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2195 (B) for the fiscal year; or
2196 (ii) $17,500,000.
2197 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount

2198 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
2199 Department of Natural Resources to:
2200 (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
2201 protect sensitive plant and animal species; or
2202 (B) award grants, up to the amount authorized by the Legislature in an appropriations
2203 act, to political subdivisions of the state to implement the measures described in Subsections
2204 79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
2205 (ii) Money transferred to the Department of Natural Resources under Subsection
2206 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2207 person to list or attempt to have listed a species as threatened or endangered under the
2208 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2209 (iii) At the end of each fiscal year:
2210 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2211 Conservation and Development Fund created in Section 73-10-24 ;
2212 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2213 Program Subaccount created in Section 73-10c-5 ; and
2214 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2215 Program Subaccount created in Section 73-10c-5 .
2216 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2217 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2218 created in Section 4-18-6 .
2219 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2220 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
2221 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
2222 water rights.
2223 (ii) At the end of each fiscal year:
2224 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2225 Conservation and Development Fund created in Section 73-10-24 ;
2226 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2227 Program Subaccount created in Section 73-10c-5 ; and
2228 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan

2229 Program Subaccount created in Section 73-10c-5 .
2230 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2231 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
2232 Fund created in Section 73-10-24 for use by the Division of Water Resources.
2233 (ii) In addition to the uses allowed of the Water Resources Conservation and
2234 Development Fund under Section 73-10-24 , the Water Resources Conservation and
2235 Development Fund may also be used to:
2236 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2237 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2238 quantifying surface and ground water resources and describing the hydrologic systems of an
2239 area in sufficient detail so as to enable local and state resource managers to plan for and
2240 accommodate growth in water use without jeopardizing the resource;
2241 (B) fund state required dam safety improvements; and
2242 (C) protect the state's interest in interstate water compact allocations, including the
2243 hiring of technical and legal staff.
2244 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2245 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
2246 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2247 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2248 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
2249 created in Section 73-10c-5 for use by the Division of Drinking Water to:
2250 (i) provide for the installation and repair of collection, treatment, storage, and
2251 distribution facilities for any public water system, as defined in Section 19-4-102 ;
2252 (ii) develop underground sources of water, including springs and wells; and
2253 (iii) develop surface water sources.
2254 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2255 2006, the difference between the following amounts shall be expended as provided in this
2256 Subsection (5), if that difference is greater than $1:
2257 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2258 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2259 (ii) $17,500,000.

2260 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2261 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
2262 credits; and
2263 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2264 restoration.
2265 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2266 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
2267 created in Section 73-10-24 .
2268 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2269 remaining difference described in Subsection (5)(a) shall be:
2270 (A) transferred each fiscal year to the Division of Water Resources as dedicated
2271 credits; and
2272 (B) expended by the Division of Water Resources for cloud-seeding projects
2273 authorized by Title 73, Chapter 15, Modification of Weather.
2274 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2275 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
2276 created in Section 73-10-24 .
2277 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
2278 remaining difference described in Subsection (5)(a) shall be deposited into the Water
2279 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2280 Division of Water Resources for:
2281 (i) preconstruction costs:
2282 (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
2283 26, Bear River Development Act; and
2284 (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
2285 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2286 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2287 Chapter 26, Bear River Development Act;
2288 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2289 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2290 (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and

2291 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2292 (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
2293 Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
2294 (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
2295 Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
2296 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
2297 incurred for employing additional technical staff for the administration of water rights.
2298 (g) At the end of each fiscal year, any unexpended dedicated credits described in
2299 Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
2300 Fund created in Section 73-10-24 .
2301 (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2302 2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
2303 tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
2304 the Transportation Fund created by Section 72-2-102 .
2305 (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
2306 beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
2307 Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
2308 under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
2309 transactions under Subsection (1).
2310 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
2311 have been paid off and the highway projects completed that are intended to be paid from
2312 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
2313 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
2314 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2315 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
2316 by a 1/64% tax rate on the taxable transactions under Subsection (1).
2317 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
2318 Subsection (7)(a), and until Subsection (8)(b) applies, for a fiscal year beginning on or after
2319 July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
2320 Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
2321 (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a

2322 portion of the approximately 17% of sales and use tax revenues generated annually by the sales
2323 and use tax on vehicles and vehicle-related products:
2324 (i) the tax imposed by Subsection (2)(a)(i)(A);
2325 (ii) the tax imposed by Subsection (2)(b)(i);
2326 (iii) the tax imposed by Subsection (2)(c)(i); and
2327 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
2328 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
2329 Subsection (7)(b), when the highway general obligation bonds have been paid off and the
2330 highway projects completed that are intended to be paid from revenues deposited in the
2331 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
2332 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
2333 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
2334 listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
2335 which represents a portion of the approximately 17% of sales and use tax revenues generated
2336 annually by the sales and use tax on vehicles and vehicle-related products:
2337 (i) the tax imposed by Subsection (2)(a)(i)(A);
2338 (ii) the tax imposed by Subsection (2)(b)(i);
2339 (iii) the tax imposed by Subsection (2)(c)(i); and
2340 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
2341 (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
2342 Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
2343 under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
2344 (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
2345 year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
2346 $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
2347 Critical Highway Needs Fund created by Section 72-2-125 .
2348 (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
2349 Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
2350 have been paid off and the highway projects completed that are included in the prioritized
2351 project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
2352 72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues

2353 generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
2354 of 2005 created by Section 72-2-124 .
2355 (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2356 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2357 created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
2358 (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
2359 (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
2360 Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
2361 amount of tax revenue generated by a .025% tax rate on the transactions described in
2362 Subsection (1).
2363 (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
2364 the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
2365 food and food ingredients, except for tax revenue generated by a bundled transaction
2366 attributable to food and food ingredients and tangible personal property other than food and
2367 food ingredients described in Subsection (2)(e).
2368 (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
2369 and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
2370 obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
2371 projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
2372 as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
2373 deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
2374 amount of tax revenue generated by a .025% tax rate on the transactions described in
2375 Subsection (1).
2376 (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
2377 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
2378 charged for food and food ingredients, except for tax revenue generated by a bundled
2379 transaction attributable to food and food ingredients and tangible personal property other than
2380 food and food ingredients described in Subsection (2)(e).
2381 (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
2382 (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
2383 Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a

2384 .025% tax rate on the transactions described in Subsection (1) to be expended to address
2385 chokepoints in construction management.
2386 (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
2387 the Transportation Fund any tax revenue generated by amounts paid or charged for food and
2388 food ingredients, except for tax revenue generated by a bundled transaction attributable to food
2389 and food ingredients and tangible personal property other than food and food ingredients
2390 described in Subsection (2)(e).
2391 (13) Notwithstanding Subsection (3)(a), the following amounts shall be deposited into
2392 the Rural Health Care Compensation Fund created by Section 26-9-5 and expended as provided
2393 in Section 26-9-5 :
2394 (a) for the time period beginning on January 1, 2011, and ending on June 30, 2011,
2395 $4,300,000; and
2396 (b) for each fiscal year beginning with fiscal year 2011-12, $8,600,000.
2397 (14) Notwithstanding Subsection (3)(a), the following amounts shall be deposited into
2398 the Tourism, Recreation, Cultural, Convention, and Airport Facilities Fund created by Section
2399 63M-1-1407 and expended as provided in Section 63M-1-1407 :
2400 (a) for the time period beginning on January 1, 2011, and ending on June 30, 2011,
2401 $15,500,000; and
2402 (b) for each fiscal year beginning with fiscal year 2011-12, $31,000,000.
2403 Section 9. Section 59-12-204 is amended to read:
2404 59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of
2405 tax revenues -- Commission requirement to retain an amount to be deposited into the
2406 Qualified Emergency Food Agencies Fund.
2407 (1) The tax ordinance adopted pursuant to this part shall impose a tax upon those
2408 transactions listed in Subsection 59-12-103 (1).
2409 (2) (a) The tax ordinance under Subsection (1) shall include a provision imposing a tax
2410 upon every transaction listed in Subsection 59-12-103 (1) made within a county, including areas
2411 contained within the cities and towns located in the county:
2412 (i) at the rate of 1% of the purchase price paid or charged; and
2413 (ii) if the [transaction is consummated] location of the transaction is within the county
2414 in accordance with Section 59-12-205 .

2415 (b) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
2416 include a provision prohibiting a county, city, or town from imposing a tax under this section
2417 on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
2418 exempt from taxation under Section 59-12-104 .
2419 (3) Such tax ordinance shall include provisions substantially the same as those
2420 contained in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the
2421 name of the county as the taxing agency shall be substituted for that of the state where
2422 necessary for the purpose of this part and that an additional license is not required if one has
2423 been or is issued under Section 59-12-106 .
2424 (4) Such tax ordinance shall include a provision that the county shall contract, prior to
2425 the effective date of the ordinance, with the commission to perform all functions incident to the
2426 administration or operation of the ordinance.
2427 (5) Such tax ordinance shall include a provision that the sale, storage, use, or other
2428 consumption of tangible personal property, the purchase price or the cost of which has been
2429 subject to sales or use tax under a sales and use tax ordinance enacted in accordance with this
2430 part by any county, city, or town in any other county in this state, shall be exempt from the tax
2431 due under this ordinance.
2432 (6) Such tax ordinance shall include a provision that any person subject to the
2433 provisions of a city or town sales and use tax shall be exempt from the county sales and use tax
2434 if the city or town sales and use tax is levied under an ordinance including provisions in
2435 substance as follows:
2436 (a) a provision imposing a tax upon every transaction listed in Subsection 59-12-103 (1)
2437 made within the city or town at the rate imposed by the county in which it is situated pursuant
2438 to Subsection (2);
2439 (b) notwithstanding Subsection (2)(a), a provision prohibiting the city or town from
2440 imposing a tax under this section on the sales and uses described in Section 59-12-104 to the
2441 extent the sales and uses are exempt from taxation under Section 59-12-104 ;
2442 (c) provisions substantially the same as those contained in Part 1, Tax Collection,
2443 insofar as they relate to sales and use taxes, except that the name of the city or town as the
2444 taxing agency shall be substituted for that of the state where necessary for the purposes of this
2445 part;

2446 (d) a provision that the city or town shall contract prior to the effective date of the city
2447 or town sales and use tax ordinance with the commission to perform all functions incident to
2448 the administration or operation of the sales and use tax ordinance of the city or town;
2449 (e) a provision that the sale, storage, use, or other consumption of tangible personal
2450 property, the gross receipts from the sale of or the cost of which has been subject to sales or use
2451 tax under a sales and use tax ordinance enacted in accordance with this part by any county
2452 other than the county in which the city or town is located, or city or town in this state, shall be
2453 exempt from the tax; and
2454 (f) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
2455 be included as a part of the purchase price paid or charged for a taxable item.
2456 (7) Notwithstanding any other provision of this section, beginning July 1, 2000, the
2457 commission shall:
2458 (a) determine and retain the portion of sales and use tax imposed under this section:
2459 (i) by each county and by each city and town within that county whose legislative body
2460 consents by resolution to the commission's retaining and depositing sales and use tax revenues
2461 as provided in this Subsection (7); and
2462 (ii) that is equal to the revenues generated by a 1/64% tax rate;
2463 (b) deposit the revenues described in Subsection (7)(a) into a special fund of the
2464 county, or a city, town, or other political subdivision of the state located within that county, that
2465 has issued bonds to finance sports or recreational facilities or that is leasing sports or
2466 recreational facilities, in order to repay those bonds or to pay the lease payments; and
2467 (c) continue to deposit those revenues into the special fund only as long as the bonds or
2468 leases are outstanding.
2469 (8) (a) Notwithstanding any other provision of this section, beginning on July 1, 2009,
2470 the commission shall calculate and retain a portion of the sales and use tax collected under this
2471 part as provided in this Subsection (8).
2472 (b) For a city, town, or unincorporated area of a county that imposes a tax under this
2473 part, the commission shall calculate a percentage each month by dividing the sales and use tax
2474 collected under this part for that month within the boundaries of that city, town, or
2475 unincorporated area of a county by the total sales and use tax collected under this part for that
2476 month within the boundaries of all of the cities, towns, and unincorporated areas of the

2477 counties that impose a tax under this part.
2478 (c) For a city, town, or unincorporated area of a county that imposes a tax under this
2479 part, the commission shall retain each month an amount equal to the product of:
2480 (i) the percentage the commission determines for the month under Subsection (8)(b)
2481 for the city, town, or unincorporated area of a county; and
2482 (ii) $25,417.
2483 (d) The commission shall deposit an amount the commission retains in accordance
2484 with this Subsection (8) into the Qualified Emergency Food Agencies Fund created by Section
2485 9-4-1409 .
2486 (e) An amount the commission deposits into the Qualified Emergency Food Agencies
2487 Fund shall be expended as provided in Section 9-4-1409 .
2488 Section 10. Section 59-12-205 is amended to read:
2489 59-12-205. Ordinances to conform with statutory amendments -- Distribution of
2490 tax revenues -- Determination of population.
2491 (1) Each county, city, and town, in order to maintain in effect sales and use tax
2492 ordinances adopted pursuant to Section 59-12-204 , shall, within 30 days of any amendment of
2493 any applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales
2494 and use tax ordinances to conform with the amendments to Part 1, Tax Collection, insofar as
2495 they relate to sales and use taxes.
2496 (2) (a) Except as provided in Subsections (3) through (5)[:], the commission shall
2497 distribute revenues collected from the sales and use tax authorized by this part as provided in
2498 this Subsection (2).
2499 (b) Before the commission makes a distribution in accordance with Subsections (2)(c)
2500 and (d), the commission shall retain the charge required by Section 59-12-206 .
2501 (c) After the amounts described in Subsection (2)(b) are retained in accordance with
2502 Subsection (2)(b), the commission shall distribute:
2503 (i) for the time period beginning on January 1, 2011, and ending on June 30, 2011,
2504 $16,500 to each town that imposes a town option sales and use tax:
2505 (A) on December 31, 2010; and
2506 (B) that is repealed by this bill; and
2507 (ii) for each fiscal year beginning with fiscal year 2011-12, $33,000 to each town that

2508 imposes a town option sales and use tax:
2509 (A) on December 31, 2010; and
2510 (B) that is repealed by this bill.
2511 (d) After the commission makes the distributions required by Subsection (2)(c), the
2512 commission shall distribute the remaining amount of revenues collected from the sales and use
2513 tax authorized by this part as follows:
2514 [(a)] (i) 50% of each dollar collected from the sales and use tax authorized by this part
2515 shall be paid to each county, city, and town on the basis of the percentage that the population of
2516 the county, city, or town bears to the total population of all counties, cities, and towns in the
2517 state; and
2518 [(b) (i)] (ii) (A) except as provided in Subsection (2)[(b)](d)(ii)(B), 50% of each dollar
2519 collected from the sales and use tax authorized by this part shall be paid to each county, city,
2520 and town on the basis of the location [where] of the transaction [is consummated] as
2521 determined under Sections 59-12-211 through 59-12-215 ; and
2522 [(ii)] (B) 50% of each dollar collected from the sales and use tax authorized by this part
2523 within a project area described in a project area plan adopted by the military installation
2524 development authority under Title 63H, Chapter 1, Military Installation Development
2525 Authority Act, shall be paid to the military installation development authority created in
2526 Section 63H-1-201 .
2527 (3) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year
2528 2005-06, a county, city, or town may not receive a tax revenue distribution less than .75% of
2529 the taxable sales within the boundaries of the county, city, or town.
2530 (b) The commission shall proportionally reduce monthly distributions to any county,
2531 city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
2532 sales and use tax revenue collected within the boundaries of the county, city, or town.
2533 (4) (a) As used in this Subsection (4):
2534 (i) "Eligible county, city, or town" means a county, city, or town that receives $2,000 or
2535 more in tax revenue distributions in accordance with Subsection (3) for each of the following
2536 fiscal years:
2537 (A) fiscal year 2002-03;
2538 (B) fiscal year 2003-04; and

2539 (C) fiscal year 2004-05.
2540 (ii) "Minimum tax revenue distribution" means the greater of:
2541 (A) the total amount of tax revenue distributions an eligible county, city, or town
2542 receives from a tax imposed in accordance with this part for fiscal year 2000-01; or
2543 (B) the total amount of tax revenue distributions an eligible county, city, or town
2544 receives from a tax imposed in accordance with this part for fiscal year 2004-05.
2545 (b) (i) Notwithstanding Subsection (2) and except as provided in Subsection (4)(b)(ii),
2546 beginning with fiscal year 2006-07 and ending with fiscal year 2012-13, an eligible county,
2547 city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this
2548 part equal to the greater of:
2549 (A) the payment required by Subsection (2); or
2550 (B) the minimum tax revenue distribution.
2551 (ii) If the tax revenue distribution required by Subsection (4)(b)(i) for an eligible
2552 county, city, or town is equal to the amount described in Subsection (4)(b)(i)(A) for three
2553 consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
2554 that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
2555 revenue distribution equal to the payment required by Subsection (2).
2556 (c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
2557 2015-16, an eligible county, city, or town shall receive the minimum tax revenue distribution
2558 for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that
2559 eligible county, city, or town is less than or equal to the product of:
2560 (i) the minimum tax revenue distribution; and
2561 (ii) .90.
2562 (5) (a) Population figures for purposes of this section shall be based on the most recent
2563 official census or census estimate of the United States Census Bureau.
2564 (b) If a needed population estimate is not available from the United States Census
2565 Bureau, population figures shall be derived from the estimate from the Utah Population
2566 Estimates Committee created by executive order of the governor.
2567 (6) The population of a county for purposes of this section shall be determined solely
2568 from the unincorporated area of the county.
2569 Section 11. Section 59-12-211 is amended to read:

2570 59-12-211. Definitions -- Location of certain transactions -- Reports to
2571 commission -- Direct payment provision for a seller making certain purchases --
2572 Exceptions.
2573 (1) As used in this section:
2574 (a) (i) "Receipt" and "receive" mean:
2575 (A) taking possession of tangible personal property;
2576 (B) making first use of a service; or
2577 (C) for a product transferred electronically, the earlier of:
2578 (I) taking possession of the product transferred electronically; or
2579 (II) making first use of the product transferred electronically.
2580 (ii) "Receipt" and "receive" do not include possession by a shipping company on behalf
2581 of a purchaser.
2582 (b) "Transportation equipment" means:
2583 (i) a locomotive or rail car that is used to carry a person or property in interstate
2584 commerce;
2585 (ii) a truck or truck-tractor:
2586 (A) with a gross vehicle weight rating of 10,001 pounds or more;
2587 (B) registered under Section 41-1a-301 ; and
2588 (C) operated under the authority of a carrier authorized and certificated:
2589 (I) by the United States Department of Transportation or another federal authority; and
2590 (II) to engage in carrying a person or property in interstate commerce;
2591 (iii) a trailer, semitrailer, or passenger bus that is:
2592 (A) registered under Section 41-1a-301 ; and
2593 (B) operated under the authority of a carrier authorized and certificated:
2594 (I) by the United States Department of Transportation or another federal authority; and
2595 (II) to engage in carrying a person or property in interstate commerce;
2596 (iv) an aircraft that is operated by an air carrier authorized and certificated:
2597 (A) by the United States Department of Transportation or another federal or foreign
2598 authority; and
2599 (B) to engage in carrying a person or property in interstate commerce; or
2600 (v) a container designed for use on, or a component part attached or secured on, an

2601 item of equipment listed in[,] Subsections (1)(b)(i) through (iv).
2602 (2) Except as provided in Subsections (8) and (13), if tangible personal property, a
2603 product transferred electronically, or a service that is subject to taxation under this chapter is
2604 received by a purchaser at a business location of a seller, the location of the transaction is the
2605 business location of the seller.
2606 (3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
2607 and (13), if tangible personal property, a product transferred electronically, or a service that is
2608 subject to taxation under this chapter is not received by a purchaser at a business location of a
2609 seller, the location of the transaction is the location where the purchaser takes receipt of the
2610 tangible personal property or service.
2611 (4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
2612 and (13), if Subsection (2) or (3) does not apply, the location of the transaction is the location
2613 indicated by an address for or other information on the purchaser if:
2614 (a) the address or other information is available from the seller's business records; and
2615 (b) use of the address or other information from the seller's records does not constitute
2616 bad faith.
2617 (5) (a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
2618 (11), and (13), if Subsection (2), (3), or (4) does not apply, the location of the transaction is the
2619 location indicated by an address for the purchaser if:
2620 (i) the address is obtained during the consummation of the transaction; and
2621 (ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.
2622 (b) An address used under Subsection (5)(a) includes the address of a purchaser's
2623 payment instrument if no other address is available.
2624 (6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
2625 and (13), if Subsection (2), (3), (4), or (5) does not apply or if a seller does not have sufficient
2626 information to apply Subsection (2), (3), (4), or (5), the location of the transaction is the
2627 location indicated by the address from which:
2628 (a) except as provided in Subsection (6)(b), for tangible personal property that is
2629 subject to taxation under this chapter, the tangible personal property is shipped;
2630 (b) for computer software delivered electronically or for a product transferred
2631 electronically that is subject to taxation under this chapter, the computer software or product

2632 transferred electronically is first available for transmission by the seller; or
2633 (c) for a service that is subject to taxation under this chapter, the service is provided.
2634 (7) (a) For purposes of this Subsection (7), "shared ZIP Code" means a nine-digit ZIP
2635 Code that is located within two or more local taxing jurisdictions.
2636 (b) If the location of a transaction determined under Subsections (3) through (6) is in a
2637 shared ZIP Code, the location of the transaction is:
2638 (i) if there is only one local taxing jurisdiction that imposes the lowest agreement
2639 combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the lowest
2640 agreement combined tax rate; or
2641 (ii) if two or more local taxing jurisdictions impose the lowest agreement combined tax
2642 rate for the shared ZIP Code, the local taxing jurisdiction that:
2643 (A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and
2644 (B) has located within the local taxing jurisdiction the largest number of street
2645 addresses within the shared ZIP Code.
2646 (c) [For] Notwithstanding any provision under this chapter authorizing or requiring the
2647 imposition of a sales and use tax, for purposes of Subsection (7)(b), a seller shall collect a sales
2648 and use tax imposed under this chapter at the lowest agreement combined tax rate imposed
2649 within the local taxing jurisdiction in which the transaction is located under Subsection (7)(b)
2650 [notwithstanding:].
2651 [(i) Section 59-12-204 ;]
2652 [(ii) Section 59-12-401 ;]
2653 [(iii) Section 59-12-402 ;]
2654 [(iv) Section 59-12-501 ;]
2655 [(v) Section 59-12-502 ;]
2656 [(vi) Section 59-12-703 ;]
2657 [(vii) Section 59-12-802 ;]
2658 [(viii) Section 59-12-804 ;]
2659 [(ix) Section 59-12-1001 ;]
2660 [(x) Section 59-12-1102 ;]
2661 [(xi) Section 59-12-1302 ;]
2662 [(xii) Section 59-12-1402 ;]

2663 [(xiii) Section 59-12-1503 ;]
2664 [(xiv) Section 59-12-1703 ; or]
2665 [(xv) Section 59-12-1802 .]
2666 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2667 commission may make rules:
2668 (i) providing for the circumstances under which a seller has exercised due diligence in
2669 determining the nine-digit ZIP Code for an address; or
2670 (ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction
2671 within which a transaction is located if a seller is unable to determine the local taxing
2672 jurisdiction within which the transaction is located under Subsection (7)(b).
2673 (8) The location of a transaction made with a direct payment permit described in
2674 Section 59-12-107.1 is the location where receipt of the tangible personal property, product, or
2675 service by the purchaser occurs.
2676 (9) The location of a purchase of direct mail is the location described in Subsection (6),
2677 if the purchaser of the direct mail:
2678 (a) has not been issued a direct payment permit under Section 59-12-107.1 ; and
2679 (b) does not provide the seller the form or information described in Subsection
2680 59-12-123 (1).
2681 (10) (a) Except as provided in Subsection (10)(b), the location of a transaction
2682 determined under Subsections (3) through (6), (8), or (9), is the local taxing jurisdiction within
2683 which:
2684 (i) the nine-digit ZIP Code assigned to the location determined under Subsections (3)
2685 through (6), (8), or (9) is located; or
2686 (ii) the five-digit ZIP Code assigned to the location determined under Subsections (3)
2687 through (6), (8), or (9) is located if:
2688 (A) a nine-digit ZIP Code is not available for the location determined under
2689 Subsections (3) through (6), (8), or (9); or
2690 (B) after exercising due diligence, a seller or certified service provider is unable to
2691 determine a nine-digit ZIP Code for the location determined under Subsections (3) through (6),
2692 (8), or (9).
2693 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

2694 commission may make rules for determining the local taxing jurisdiction within which a
2695 transaction is located if a seller or certified service provider is unable to determine the local
2696 taxing jurisdiction within which the transaction is located under Subsection (10)(a).
2697 (11) (a) As used in this Subsection (11), "florist delivery transaction" means a
2698 transaction commenced by a florist that transmits an order:
2699 (i) by:
2700 (A) telegraph;
2701 (B) telephone; or
2702 (C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
2703 (ii) for delivery to another place:
2704 (A) in this state; or
2705 (B) outside this state.
2706 (b) Notwithstanding Subsections (3) through (6), beginning on January 1, 2009, and
2707 ending on December 31, 2009, the location of a florist delivery transaction is the business
2708 location of the florist that commences the florist delivery transaction.
2709 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2710 commission may by rule:
2711 (i) define:
2712 (A) "business location"; and
2713 (B) "florist";
2714 (ii) define what constitutes a means of communication similar to Subsection
2715 (11)(a)(i)(A) or (B); and
2716 (iii) provide procedures for determining when a transaction is commenced.
2717 (12) (a) A tax collected under this chapter shall be reported to the commission on a
2718 form that identifies the location of each transaction that occurs during the return filing period.
2719 (b) The form described in Subsection (12)(a) shall be filed with the commission as
2720 required under this chapter.
2721 (13) This section does not apply to:
2722 (a) amounts charged by a seller for:
2723 (i) telecommunications service; or
2724 (ii) the retail sale or transfer of:

2725 (A) a motor vehicle other than a motor vehicle that is transportation equipment;
2726 (B) an aircraft other than an aircraft that is transportation equipment;
2727 (C) a watercraft;
2728 (D) a modular home;
2729 (E) a manufactured home; or
2730 (F) a mobile home; or
2731 (iii) except as provided in Section 59-12-214 , the lease or rental of tangible personal
2732 property other than tangible personal property that is transportation equipment;
2733 (b) a tax paid under this chapter:
2734 (i) by a seller; and
2735 (ii) for the seller's purchases; or
2736 (c) a retail sale of tangible personal property or a product transferred electronically if:
2737 (i) the seller receives the order for the tangible personal property or product transferred
2738 electronically in this state;
2739 (ii) receipt of the tangible personal property or product transferred electronically by the
2740 purchaser or the purchaser's donee occurs in this state;
2741 (iii) the location where receipt of the tangible personal property or product transferred
2742 electronically by the purchaser occurs is determined in accordance with Subsections (3)
2743 through (5); and
2744 (iv) at the time the seller receives the order, the record keeping system that the seller
2745 uses to calculate the proper amount of tax imposed under this chapter captures the location
2746 where the order is received.
2747 Section 12. Section 59-12-603 is amended to read:
2748 59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
2749 ordinance required -- Advisory board -- Administration -- Collection -- Distribution --
2750 Enactment or repeal of tax or tax rate change -- Effective date -- Notice requirements.
2751 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
2752 part, impose a tax as follows:
2753 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
2754 on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
2755 and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor

2756 vehicle that is being repaired pursuant to a repair or an insurance agreement; and
2757 (B) beginning on or after January 1, 1999, a county legislative body of any county
2758 imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
2759 Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
2760 of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
2761 for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
2762 to a repair or an insurance agreement; and
2763 [(ii) a county legislative body of any county may impose a tax of not to exceed 1% of
2764 all sales of the following that are sold by a restaurant:]
2765 [(A) alcoholic beverages;]
2766 [(B) food and food ingredients; or]
2767 [(C) prepared food; and]
2768 [(iii)] (ii) a county legislative body of a county of the first class may impose a tax of
2769 not to exceed .5% on charges for the accommodations and services described in Subsection
2770 59-12-103 (1)(i).
2771 (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
2772 17-31-5.5 .
2773 (2) (a) Subject to Subsection (2)(b), revenue collected from the imposition of [the
2774 taxes] a tax provided for in [Subsections] Subsection (1)(a)[(i) through (iii)] may be [used]
2775 expended for:
2776 (i) financing tourism promotion; and
2777 (ii) the development, operation, and maintenance of:
2778 (A) an airport facility;
2779 (B) a convention facility;
2780 (C) a cultural facility;
2781 (D) a recreation facility; or
2782 (E) a tourist facility.
2783 (b) A county of the first class shall expend at least $450,000 each year of the revenues
2784 from the imposition of a tax authorized by Subsection (1)(a)[(iii)](ii) within the county to fund
2785 a marketing and ticketing system designed to:
2786 (i) promote tourism in ski areas within the county by persons that do not reside within

2787 the state; and
2788 (ii) combine the sale of:
2789 (A) ski lift tickets; and
2790 (B) accommodations and services described in Subsection 59-12-103 (1)(i).
2791 (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
2792 evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
2793 Government Bonding Act, or a community development and renewal agency under Title 17C,
2794 Chapter 1, Part 5, Agency Bonds, to finance:
2795 (a) an airport facility;
2796 (b) a convention facility;
2797 (c) a cultural facility;
2798 (d) a recreation facility; or
2799 (e) a tourist facility.
2800 (4) (a) In order to impose the tax under Subsection (1), each county legislative body
2801 shall adopt an ordinance imposing the tax.
2802 (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
2803 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
2804 those items and sales described in Subsection (1).
2805 (c) The name of the county as the taxing agency shall be substituted for that of the state
2806 where necessary, and an additional license is not required if one has been or is issued under
2807 Section 59-12-106 .
2808 (5) In order to maintain in effect its tax ordinance adopted under this part, each county
2809 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
2810 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
2811 amendments to Part 1, Tax Collection.
2812 (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
2813 board in accordance with Section 17-31-8 , the county legislative body of the county of the first
2814 class shall create a tax advisory board in accordance with this Subsection (6).
2815 (b) The tax advisory board shall be composed of nine members appointed as follows:
2816 (i) four members shall be appointed by the county legislative body of the county of the
2817 first class as follows:

2818 (A) one member shall be a resident of the unincorporated area of the county;
2819 (B) two members shall be residents of the incorporated area of the county; and
2820 (C) one member shall be a resident of the unincorporated or incorporated area of the
2821 county; and
2822 (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
2823 towns within the county of the first class appointed by an organization representing all mayors
2824 of cities and towns within the county of the first class.
2825 (c) Five members of the tax advisory board constitute a quorum.
2826 (d) The county legislative body of the county of the first class shall determine:
2827 (i) terms of the members of the tax advisory board;
2828 (ii) procedures and requirements for removing a member of the tax advisory board;
2829 (iii) voting requirements, except that action of the tax advisory board shall be by at
2830 least a majority vote of a quorum of the tax advisory board;
2831 (iv) chairs or other officers of the tax advisory board;
2832 (v) how meetings are to be called and the frequency of meetings; and
2833 (vi) the compensation, if any, of members of the tax advisory board.
2834 (e) The tax advisory board under this Subsection (6) shall advise the county legislative
2835 body of the county of the first class on the expenditure of revenues collected within the county
2836 of the first class from the taxes described in Subsection (1)(a).
2837 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
2838 shall be administered, collected, and enforced in accordance with:
2839 (A) the same procedures used to administer, collect, and enforce the tax under:
2840 (I) Part 1, Tax Collection; or
2841 (II) Part 2, Local Sales and Use Tax Act; and
2842 (B) Chapter 1, General Taxation Policies.
2843 (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
2844 Subsections 59-12-205 (2) through (6).
2845 (b) Except as provided in Subsection (7)(c):
2846 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
2847 commission shall distribute the revenues to the county imposing the tax; and
2848 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues

2849 according to the distribution formula provided in Subsection (8).
2850 (c) The commission shall deduct from the distributions under Subsection (7)(b) an
2851 administrative charge for collecting the tax as provided in Section 59-12-206 .
2852 (8) The commission shall distribute the revenues generated by the tax under Subsection
2853 (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
2854 following formula:
2855 (a) the commission shall distribute 70% of the revenues based on the percentages
2856 generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
2857 the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
2858 (b) the commission shall distribute 30% of the revenues based on the percentages
2859 generated by dividing the population of each county collecting a tax under Subsection
2860 (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
2861 (9) (a) For purposes of this Subsection (9):
2862 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
2863 [Annexation to County] County Consolidations and Annexations.
2864 (ii) "Annexing area" means an area that is annexed into a county.
2865 (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
2866 enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
2867 change shall take effect:
2868 (A) on the first day of a calendar quarter; and
2869 (B) after a 90-day period beginning on the date the commission receives notice meeting
2870 the requirements of Subsection (9)(b)(ii) from the county.
2871 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
2872 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
2873 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
2874 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
2875 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2876 (9)(b)(ii)(A), the rate of the tax.
2877 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
2878 the first billing period:
2879 (A) that begins after the effective date of the enactment of the tax or the tax rate

2880 increase; and
2881 (B) if the billing period for the transaction begins before the effective date of the
2882 enactment of the tax or the tax rate increase imposed under Subsection (1).
2883 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
2884 billing period:
2885 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2886 and
2887 (B) if the billing period for the transaction begins before the effective date of the repeal
2888 of the tax or the tax rate decrease imposed under Subsection (1).
2889 (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
2890 after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
2891 tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
2892 (A) on the first day of a calendar quarter; and
2893 (B) after a 90-day period beginning on the date the commission receives notice meeting
2894 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
2895 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
2896 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
2897 repeal, or change in the rate of a tax under this part for the annexing area;
2898 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
2899 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
2900 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2901 (9)(d)(ii)(A), the rate of the tax.
2902 (e) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
2903 the first billing period:
2904 (A) that begins after the effective date of the enactment of the tax or the tax rate
2905 increase; and
2906 (B) if the billing period for the transaction begins before the effective date of the
2907 enactment of the tax or the tax rate increase imposed under Subsection (1).
2908 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
2909 billing period:
2910 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;

2911 and
2912 (B) if the billing period for the transaction begins before the effective date of the repeal
2913 of the tax or the tax rate decrease imposed under Subsection (1).
2914 Section 13. Section 59-12-703 is amended to read:
2915 59-12-703. Base -- Rate -- Imposition of tax -- Expenditure of tax revenues
2916 collected -- Enactment or repeal of tax -- Effective date -- Notice requirements.
2917 (1) (a) (i) A county legislative body may [submit an opinion question to the residents of
2918 that county, by majority vote of all members of the legislative body, so that each resident of the
2919 county, except residents in municipalities that have already imposed a sales and use tax under
2920 Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
2921 Organizations or Facilities, has an opportunity to express the resident's opinion on the
2922 imposition of a local] by a majority vote of the members of the county legislative body impose
2923 a sales and use tax of .1% on the transactions described in Subsection 59-12-103 (1) located
2924 within the county, [to fund recreational and zoological facilities, botanical, cultural, and
2925 zoological organizations, and rural radio stations, in that county] including the cities and towns
2926 located in the county.
2927 (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
2928 tax under this section on:
2929 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2930 are exempt from taxation under Section 59-12-104 ; and
2931 [(B) sales and uses within municipalities that have already imposed a sales and use tax
2932 under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
2933 Zoological Organizations or Facilities; and]
2934 [(C)] (B) except as provided in Subsection (1)(c), amounts paid or charged for food
2935 and food ingredients.
2936 (b) For purposes of this Subsection (1), the location of a transaction shall be
2937 determined in accordance with Sections 59-12-211 through 59-12-215 .
2938 (c) A county legislative body imposing a tax under this section shall impose the tax on
2939 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
2940 as part of a bundled transaction attributable to food and food ingredients and tangible personal
2941 property other than food and food ingredients.

2942 [(d) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
2943 Government Bonding Act.]
2944 [(2) (a) If the county legislative body determines that a majority of the county's
2945 registered voters voting on the imposition of the tax have voted in favor of the imposition of
2946 the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
2947 majority vote of all members of the legislative body on the transactions:]
2948 [(i) described in Subsection (1); and]
2949 [(ii) within the county, including the cities and towns located in the county, except
2950 those cities and towns that have already imposed a sales and use tax under Part 14, City or
2951 Town Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
2952 Facilities.]
2953 [(b) A county legislative body may revise county ordinances to reflect statutory
2954 changes to the distribution formula or eligible recipients of revenues generated from a tax
2955 imposed under Subsection (2)(a):]
2956 [(i) after the county legislative body submits an opinion question to residents of the
2957 county in accordance with Subsection (1) giving them the opportunity to express their opinion
2958 on the proposed revisions to county ordinances; and]
2959 [(ii) if the county legislative body determines that a majority of those voting on the
2960 opinion question have voted in favor of the revisions.]
2961 [(3)] (2) [The monies generated from any] Subject to Section 59-12-704 , the revenues
2962 collected from a tax imposed under [Subsection (2)] this section shall be [used for funding]
2963 expended as follows:
2964 (a) a county legislative body of a county of the first class shall expend revenues
2965 collected from a tax imposed under this section to fund:
2966 [(a)] (i) recreational facilities and zoological facilities located within the county or a
2967 city or town located in the county[, except a city or town that has already imposed a sales and
2968 use tax under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
2969 Zoological Organizations or Facilities]; and
2970 [(b)] (ii) ongoing operating expenses of:
2971 [(i)] (A) recreational facilities described in Subsection [(3)(a)] (2)(a)(i);
2972 [(ii)] (B) botanical, cultural, and zoological organizations within the county; and

2973 [(iii)] (C) rural radio stations within the county[.]; or
2974 (b) a county of the second, third, fourth, fifth, or sixth class shall:
2975 (i) deposit the revenues collected from a tax imposed under this section into the
2976 county's general fund; and
2977 (ii) expend the revenues collected from a tax imposed under this section for the same
2978 purposes for which the county expends the county's general fund revenues.
2979 [(4)] (3) (a) [A] Except as provided in Subsection (3)(b), a tax authorized under this
2980 part shall be[: (i) except as provided in Subsection (4)(b),] administered, collected, and
2981 enforced in accordance with:
2982 [(A)] (i) the same procedures used to administer, collect, and enforce the tax under:
2983 [(I)] (A) Part 1, Tax Collection; or
2984 [(II)] (B) Part 2, Local Sales and Use Tax Act; and
2985 [(B)] (ii) Chapter 1, General Taxation Policies[; and].
2986 [(ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
2987 period in accordance with this section.]
2988 (b) [Notwithstanding Subsection (4)(a)(i), a] A tax under this part is not subject to
2989 Subsections 59-12-205 (2) through (6).
2990 [(5)] (4) (a) For purposes of this Subsection [(5)] (4):
2991 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
2992 [Annexation to County] County Consolidations and Annexations.
2993 (ii) "Annexing area" means an area that is annexed into a county.
2994 (b) (i) Except as provided in Subsection [(5)] (4)(c) or (d), if[, on or after July 1, 2004,]
2995 a county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
2996 (A) on the first day of a calendar quarter; and
2997 (B) after a 90-day period beginning on the date the commission receives notice meeting
2998 the requirements of Subsection [(5)] (4)(b)(ii) from the county.
2999 (ii) The notice described in Subsection [(5)] (4)(b)(i)(B) shall state:
3000 (A) that the county will enact or repeal a tax under this part;
3001 (B) the statutory authority for the tax described in Subsection [(5)] (4)(b)(ii)(A);
3002 (C) the effective date of the tax described in Subsection [(5)] (4)(b)(ii)(A); and
3003 (D) if the county enacts the tax described in Subsection [(5)] (4)(b)(ii)(A), the rate of

3004 the tax.
3005 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
3006 (A) that begins after the effective date of the enactment of the tax; and
3007 (B) if the billing period for the transaction begins before the effective date of the
3008 enactment of the tax under this section.
3009 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
3010 (A) that began before the effective date of the repeal of the tax; and
3011 (B) if the billing period for the transaction begins before the effective date of the repeal
3012 of the tax imposed under this section.
3013 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3014 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
3015 Subsection [(5)] (4)(b)(i) takes effect:
3016 (A) on the first day of a calendar quarter; and
3017 (B) beginning 60 days after the effective date of the enactment or repeal under
3018 Subsection [(5)] (4)(b)(i).
3019 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3020 commission may by rule define the term "catalogue sale."
3021 (e) (i) Except as provided in Subsection [(5)] (4)(f) or (g), if, for an annexation that
3022 occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax
3023 under this part for an annexing area, the enactment or repeal shall take effect:
3024 (A) on the first day of a calendar quarter; and
3025 (B) after a 90-day period beginning on the date the commission receives notice meeting
3026 the requirements of Subsection [(5)] (4)(e)(ii) from the county that annexes the annexing area.
3027 (ii) The notice described in Subsection [(5)] (4)(e)(i)(B) shall state:
3028 (A) that the annexation described in Subsection [(5)] (4)(e)(i) will result in an
3029 enactment or repeal of a tax under this part for the annexing area;
3030 (B) the statutory authority for the tax described in Subsection [(5)] (4)(e)(ii)(A);
3031 (C) the effective date of the tax described in Subsection [(5)] (4)(e)(ii)(A); and
3032 (D) the rate of the tax described in Subsection [(5)] (4)(e)(ii)(A).
3033 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
3034 (A) that begins after the effective date of the enactment of the tax; and

3035 (B) if the billing period for the transaction begins before the effective date of the
3036 enactment of the tax under this section.
3037 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
3038 (A) that began before the effective date of the repeal of the tax; and
3039 (B) if the billing period for the transaction begins before the effective date of the repeal
3040 of the tax imposed under this section.
3041 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3042 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
3043 Subsection [(5)] (4)(e)(i) takes effect:
3044 (A) on the first day of a calendar quarter; and
3045 (B) beginning 60 days after the effective date of the enactment or repeal under
3046 Subsection [(5)] (4)(e)(i).
3047 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3048 commission may by rule define the term "catalogue sale."
3049 Section 14. Section 59-12-704 is amended to read:
3050 59-12-704. Distribution of revenues -- Advisory board creation -- Determining
3051 operating expenses.
3052 (1) Except as provided in Subsections (3)(b) and (5), and subject to [the requirements
3053 of this section] Subsection (7), [any] revenues collected by a county of the first class under this
3054 part shall be distributed annually by the county legislative body [to support recreational and
3055 zoological facilities and botanical, cultural, and zoological organizations] for a purpose
3056 described in Subsection 59-12-703 (2)(a) within that [first class] county of the first class as
3057 follows:
3058 (a) 30% of the revenue collected by the county under this section shall be distributed
3059 by the county legislative body to support recreational facilities located within the county;
3060 (b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection (1)(b)(iii),
3061 12-1/8% of the revenue collected by the county under this section shall be distributed by the
3062 county legislative body to support no more than three zoological facilities and organizations
3063 located within the county, with 94.5% of that revenue being distributed to zoological facilities
3064 and organizations with average annual operating expenses of $2,000,000 or more and 5.5% of
3065 that revenue being distributed to zoological facilities and organizations with average annual

3066 operating expenses of less than $2,000,000;
3067 (ii) except as provided in Subsection (1)(b)(iii), the county legislative body shall
3068 distribute the monies described in Subsection (1)(b)(i) among the zoological facilities and
3069 organizations in proportion to their average annual operating expenses as determined under
3070 Subsection (3); and
3071 (iii) if a zoological facility or organization is created or relocated within the county
3072 after June 1, 2003, the county legislative body shall distribute the monies described in
3073 Subsection (1)(b)(i) as it determines appropriate;
3074 (c) (i) 48-7/8% of the revenue collected by the county under this section shall be
3075 distributed to no more than 23 botanical and cultural organizations with average annual
3076 operating expenses of more than $250,000 as determined under Subsection (3);
3077 (ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
3078 monies described in Subsection (1)(c)(i) among the organizations and in proportion to their
3079 average annual operating expenses as determined under Subsection (3); and
3080 (iii) the amount distributed to any organization described in Subsection (1)(c)(i) may
3081 not exceed 35% of the organization's operating budget; and
3082 (d) (i) 9% of the revenue collected by the county under this section shall be distributed
3083 to botanical and cultural organizations that do not receive revenue under Subsection (1)(c)(i);
3084 and
3085 (ii) the county legislative body shall determine how the monies shall be distributed
3086 among the organizations described in Subsection (1)(d)(i).
3087 (2) (a) The county legislative body of each county of the first class that imposes a sales
3088 and use tax under this part shall create an advisory board to advise the county legislative body
3089 on disbursement of funds to botanical and cultural organizations under Subsection (1)(c)(i).
3090 (b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
3091 appointed by the county legislative body.
3092 (ii) In a county of the first class, two of the seven members of the advisory board under
3093 Subsection (2)(a) shall be appointed from the Utah Arts Council.
3094 (3) (a) Except as provided in Subsection (3)(b), to be eligible to receive monies
3095 collected by the county under this part, a botanical, cultural, and zoological organization
3096 located within a county of the first class shall, every three years:

3097 (i) calculate their average annual operating expenses based upon audited operating
3098 expenses for three preceding fiscal years; and
3099 (ii) submit to the appropriate county legislative body:
3100 (A) a verified audit of annual operating expenses for each of those three preceding
3101 fiscal years; and
3102 (B) the average annual operating expenses as calculated under Subsection (3)(a)(i).
3103 (b) [Notwithstanding Subsection (3)(a), the] The county legislative body described in
3104 Subsection (3)(a)(ii) may waive the operating expenses reporting requirements under
3105 Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
3106 (4) When calculating average annual operating expenses as described in Subsection
3107 (3), each botanical, cultural, and zoological organization shall use the same three-year fiscal
3108 period as determined by the county legislative body.
3109 (5) (a) By July 1 of each year, the county legislative body of a first class county may
3110 index the threshold amount in Subsections (1)(c) and (d).
3111 (b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
3112 [(6) (a) Beginning on July 1, 2001, in a county except for a county of the first class, the
3113 county legislative body shall by ordinance provide for the distribution of the entire amount of
3114 the revenues generated by the tax imposed by this section as provided in this Subsection (6).]
3115 [(b) Pursuant to an interlocal agreement established in accordance with Title 11,
3116 Chapter 13, Interlocal Cooperation Act, a county described in Subsection (6)(a) may distribute
3117 to a city, town, or political subdivision within the county revenues generated by a tax under this
3118 part.]
3119 [(c) The revenues distributed under Subsection (6)(a) or (b) shall be used for one or
3120 more organizations or facilities defined in Section 59-12-702 regardless of whether the
3121 revenues are distributed:]
3122 [(i) directly by the county described in Subsection (6)(a) to be used for an organization
3123 or facility defined in Section 59-12-702 ; or]
3124 [(ii) in accordance with an interlocal agreement described in Subsection (6)(b).]
3125 (6) (a) A county legislative body that imposes a tax under this part shall transfer
3126 revenues collected from the tax under this part as provided in Subsection (6)(b) to a city
3127 legislative body or town legislative body if, on July 1, 2010, the city or town imposes a city or

3128 town option sales and use tax:
3129 (i) for botanical, cultural, recreational, and zoological organizations or facilities; and
3130 (ii) that is repealed by this bill.
3131 (b) For purposes of Subsection (6)(a), a county legislative body shall transfer to a city
3132 legislative body or a town legislative body:
3133 (i) if the city or town imposes the city or town option sales and use tax described in
3134 Subsection (6)(a) for the entire fiscal year 2009-10, the amount of revenues the city or town
3135 collects from the city or town option sales and use tax described in Subsection (6)(a) for fiscal
3136 year 2009-10; or
3137 (ii) if the city or town does not impose the city or town option sales and use tax
3138 described in Subsection (6)(a) for the entire fiscal year 2009-10, the amount of revenues the
3139 commission estimates the city or town would have collected from the city or town option sales
3140 and use tax described in Subsection (6)(a) had the city or town collected that city or town
3141 option sales and use tax for the entire fiscal year 2009-10.
3142 (c) Subject to Subsection (6)(d), a city legislative body or town legislative body that
3143 receives a transfer of revenues under this Subsection (6) shall by ordinance provide for the
3144 distribution of the entire amount of the revenues the city legislative body or town legislative
3145 body receives.
3146 (d) A city legislative body or town legislative body that receives a transfer of revenues
3147 under this section shall expend the revenues the city legislative body or town legislative body
3148 receives for one or more of the following:
3149 (i) a botanical organization;
3150 (ii) a cultural organization;
3151 (iii) a recreational facility;
3152 (iv) a zoological facility; or
3153 (v) a zoological organization.
3154 (7) A county legislative body may retain up to [1.5%] 1.50% of the proceeds from a tax
3155 under this part for the cost of administering [the provisions of] this part.
3156 (8) The commission may retain an amount not to exceed [1-1/2%] 1.50% of the tax
3157 collected under this part for the cost of administering this part.
3158 Section 15. Section 59-12-1201 is amended to read:

3159 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
3160 collection, and enforcement of tax -- Administrative fee -- Deposits.
3161 (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
3162 short-term leases and rentals of motor vehicles not exceeding 30 days.
3163 (b) The tax imposed in this section is in addition to all other state, county, or municipal
3164 fees and taxes imposed on rentals of motor vehicles.
3165 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
3166 imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
3167 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
3168 take effect on the first day of the first billing period:
3169 (A) that begins after the effective date of the tax rate increase; and
3170 (B) if the billing period for the transaction begins before the effective date of a tax rate
3171 increase imposed under Subsection (1).
3172 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
3173 rate decrease shall take effect on the first day of the last billing period:
3174 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
3175 and
3176 (B) if the billing period for the transaction begins before the effective date of the repeal
3177 of the tax or the tax rate decrease imposed under Subsection (1).
3178 (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
3179 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
3180 (b) the motor vehicle is rented as a personal household goods moving van; or
3181 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
3182 replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
3183 insurance agreement.
3184 (4) (a) (i) The tax authorized under this section shall be administered, collected, and
3185 enforced in accordance with:
3186 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
3187 Tax Collection; and
3188 (B) Chapter 1, General Taxation Policies.
3189 (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to

3190 Subsections 59-12-103 (4) through [(12)] (14) or Section 59-12-107.1 or 59-12-123 .
3191 (b) The commission may retain a maximum of 1-1/2% of the tax collected under this
3192 section for the costs of rendering its services under this section.
3193 (c) Except as provided under Subsection (4)(b), all revenue received by the
3194 commission under this section shall be deposited daily with the state treasurer and credited
3195 monthly to the Transportation Corridor Preservation Revolving Loan Fund under Section
3196 72-2-117 .
3197 Section 16. Section 59-12-1802 is amended to read:
3198 59-12-1802. State sales and use tax -- Base -- Rate -- Revenues deposited into
3199 General Fund.
3200 (1) (a) If a county does not impose a tax under [Part 11, County Option Sales and Use
3201 Tax, a tax shall be imposed] the following sections, the state shall impose a tax within the
3202 county under this section [by the state: (a)] on the transactions described in Subsection
3203 59-12-103 (1)[;] beginning on January 1, 2011, and ending on the date the county imposes a tax
3204 under the following sections:
3205 (i) Section 59-12-703 ; and
3206 (ii) Section 59-12-1102 .
3207 (b) [at a rate of .25%; and] Except as provided in Subsection (1)(c) or Subsection (2),
3208 for purposes of Subsection (1)(a), the rate of the state tax is equal to the difference between:
3209 (i) .35%; and
3210 (ii) the sum of the tax rates the county described in Subsection (1)(a) imposes under:
3211 (A) Section 59-12-703 ; and
3212 (B) Section 59-12-1102 .
3213 [(c) beginning on January 1, 2008, and ending on the day on which the county imposes
3214 a tax under Part 11, County Option Sales and Use Tax.]
3215 (c) For purposes of Subsection (1)(a), for amounts paid or charged for food and food
3216 ingredients that are not sold as part of a bundled transaction attributable to food and food
3217 ingredients and tangible personal property other than food and food ingredients, the rate of the
3218 state tax is equal to the difference between:
3219 (i) .25%; and
3220 (ii) the tax rate a county imposes under Section 59-12-1102 .

3221 (2) Notwithstanding Subsection (1), a tax under this section may not be imposed on the
3222 sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from
3223 taxation under Section 59-12-104 .
3224 (3) For purposes of Subsection (1), the location of a transaction shall be determined in
3225 accordance with Sections 59-12-211 through 59-12-215 .
3226 (4) Revenues collected from the sales and use tax imposed by this section, after
3227 subtracting amounts a seller retains in accordance with Section 59-12-108 , shall be deposited
3228 into the General Fund.
3229 Section 17. Section 59-12-2003 is amended to read:
3230 59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
3231 transit districts and the Transportation Fund.
3232 (1) Subject to the other provisions of this section and except as provided in Subsection
3233 [(2) or (4)] (3), beginning on [July 1, 2008] January 1, 2011, the state shall impose a tax under
3234 this part on the transactions described in Subsection 59-12-103 (1) within a city, town, or the
3235 unincorporated area of a county [of the first or second class if, on January 1, 2008, there is a
3236 public transit district within any portion of that county of the first or second class.] if within
3237 any city, town, or unincorporated area of the county the sum of the tax rates under any
3238 combination of the following sales and use taxes totals less than .85%:
3239 (a) a sales and use tax under Section 59-12-501 ;
3240 (b) a sales and use tax under Section 59-12-502 ;
3241 (c) a sales and use tax under Section 59-12-1001 ;
3242 (d) a sales and use tax under Section 59-12-1503 ;
3243 (e) a sales and use tax under Section 59-12-1703 ; or
3244 (f) a sales and use tax under Section 59-12-1903 .
3245 [(2) The state may not impose a tax under this part within a county of the first or
3246 second class if within all of the cities, towns, and the unincorporated area of the county of the
3247 first or second class there is imposed a sales and use tax of:]
3248 [(a) .30% under Section 59-12-501 ;]
3249 [(b) .30% under Section 59-12-1001 ; or]
3250 [(c) .30% under Section 59-12-1503 .]
3251 [(3)] (2) (a) Subject to Subsection [(3)] (2)(b), if the state imposes a tax under this part,

3252 the tax rate imposed within a city, town, or the unincorporated area of a county [of the first or
3253 second class] is a percentage equal to the difference between:
3254 (i) [.30%] .85%; and
3255 [(ii) (A) for a city within the county of the first or second class, the highest tax rate
3256 imposed within that city under:]
3257 [(I) Section 59-12-501 ;]
3258 [(II) Section 59-12-1001 ; or]
3259 [(III) Section 59-12-1503 ;]
3260 [(B) for a town within the county of the first or second class, the highest tax rate
3261 imposed within that town under:]
3262 [(I) Section 59-12-501 ;]
3263 [(II) Section 59-12-1001 ; or]
3264 [(III) Section 59-12-1503 ; or]
3265 [(C) for the unincorporated area of the county of the first or second class, the highest
3266 tax rate imposed within that unincorporated area under:]
3267 [(I) Section 59-12-501 ;]
3268 [(II) Section 59-12-1001 ; or]
3269 [(III) Section 59-12-1503 .]
3270 (ii) for each city, town, or unincorporated area within the county, the sum of the tax
3271 rates imposed within that city, town, or unincorporated area of the county under any
3272 combination of the following sales and use taxes:
3273 (A) a sales and use tax under Section 59-12-501 ;
3274 (B) a sales and use tax under Section 59-12-502 ;
3275 (C) a sales and use tax under Section 59-12-1001 ;
3276 (D) a sales and use tax under Section 59-12-1503 ;
3277 (E) a sales and use tax under Section 59-12-1703 ; or
3278 (F) a sales and use tax under Section 59-12-1903 .
3279 (b) For purposes of Subsection [(3)] (2)(a), if for a city, town, or the unincorporated
3280 area of a county [of the first or second class, the highest tax rate imposed under Section
3281 59-12-501 , 59-12-1001 , or 59-12-1503 within that city, town, or unincorporated area of the
3282 county of the first or second class is .30%], the sum of the tax rates totals .85% under any

3283 combination of the sales and use taxes described in Subsection (2)(a)(ii), the state may not
3284 impose a tax under this part within that city, town, or unincorporated area.
3285 [(4)] (3) (a) The state may not impose a tax under this part on:
3286 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
3287 are exempt from taxation under Section 59-12-104 ; or
3288 (ii) except as provided in Subsection [(4)] (3)(b), amounts paid or charged for food and
3289 food ingredients.
3290 (b) The state shall impose a tax under this part on amounts paid or charged for food
3291 and food ingredients if the food and food ingredients are sold as part of a bundled transaction
3292 attributable to food and ingredients and tangible personal property other than food and food
3293 ingredients.
3294 [(5)] (4) For purposes of Subsection (1), the location of a transaction shall be
3295 determined in accordance with Sections 59-12-211 through 59-12-215 .
3296 [(6)] (5) The commission shall distribute or deposit the revenues the state collects from
3297 the sales and use tax under this part, after subtracting amounts a seller retains in accordance
3298 with Section 59-12-108 , as follows:
3299 (a) the commission shall distribute:
3300 (i) for the time period beginning on January 1, 2011, and ending on June 30, 2011,
3301 $1,425,000 of the revenues to the public transit districts within the cities, towns, and
3302 unincorporated areas within counties of the first or second class:
3303 (A) within which the state imposes a tax under this part on December 31, 2010; and
3304 (B) in proportion to the revenues collected for fiscal year 2008-09 from the sales and
3305 use tax under this part within each city, town, and unincorporated area within counties of the
3306 first or second class within which the state imposes a tax under this part on December 31,
3307 2010; and
3308 (ii) for a fiscal year beginning with fiscal year 2011-12, $2,850,000 of the revenues to
3309 the public transit districts within the cities, towns, and unincorporated areas within counties of
3310 the first or second class:
3311 [(a)] (A) within which the state imposes a tax under this part on December 31, 2010;
3312 and
3313 [(b)] (B) in proportion to the revenues collected for fiscal year 2008-09 from the sales

3314 and use tax under this part within each city, town, and unincorporated area within counties of
3315 the first or second class within which the state imposes a tax under this part[.] on December 31,
3316 2010; and
3317 (b) after making the distributions required under Subsection (5)(a), the commission
3318 shall deposit the remaining revenues the state collects from the sales and use tax under this part
3319 into the Transportation Fund.
3320 Section 18. Section 63H-1-102 is amended to read:
3321 63H-1-102. Definitions.
3322 As used in this chapter:
3323 (1) "Authority" means the Military Installation Development Authority, created under
3324 Section 63H-1-201 .
3325 (2) "Base taxable value" means the taxable value of the property within any portion of
3326 the project area, as designated by board resolution, from which tax increment will be collected,
3327 as shown upon the assessment roll last equalized before the year in which the authority issues a
3328 certificate of occupancy for a building within that portion of the project area.
3329 (3) "Board" means the governing body of the authority created under Section
3330 63H-1-301 .
3331 (4) "Dedicated supplemental tax increment" means supplemental tax increment that
3332 results from a property tax levied by:
3333 (a) a county, including any district the county has established under Subsection
3334 17-34-3 (2) to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to
3335 Unincorporated Areas; or
3336 (b) an included municipality.
3337 (5) "Development project" means a project to develop land within a project area.
3338 (6) "Elected member" means a member of the authority board who:
3339 (a) is a mayor appointed under Subsection 63H-1-302 (2)(b); or
3340 (b) (i) is appointed to the authority board under Subsection 63H-1-302 (2)(a) or (3); and
3341 (ii) concurrently serves in an elected state, county, or municipal office.
3342 (7) "Included municipality" means a municipality, some or all of which is included
3343 within a project area.
3344 (8) "Military land" means any land or facility, including any leased land or facility, that

3345 is part of a base, camp, post, station, yard, center, or installation under the jurisdiction of the
3346 U.S. Department of Defense or the Utah National Guard.
3347 (9) "Municipal energy tax" means a municipal energy sales and use tax under Title 10,
3348 Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
3349 (10) "Municipal services revenue" means revenue that the authority:
3350 (a) collects from the authority's:
3351 (i) levy of a municipal energy tax;
3352 (ii) levy of a telecommunications tax; and
3353 (iii) imposition of a transient room tax;
3354 (b) receives under Subsection 59-12-205 (2)[(b)(ii)](d)(ii)(B); and
3355 (c) receives as dedicated supplemental tax increment.
3356 (11) "Municipal tax" means a municipal energy tax, telecommunications tax, or
3357 transient room tax.
3358 (12) "Project area" means the land, including military land, whether consisting of a
3359 single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
3360 project area plan where the development project set forth in the project area plan or draft
3361 project area plan takes place or is proposed to take place.
3362 (13) "Project area budget" means a multiyear projection of annual or cumulative
3363 revenues and expenses and other fiscal matters pertaining to a project area that includes:
3364 (a) the base taxable value of property in the project area;
3365 (b) the projected tax increment expected to be generated within the project area;
3366 (c) the amount of tax increment expected to be shared with other taxing entities;
3367 (d) the amount of tax increment expected to be used to implement the project area plan,
3368 including the estimated amount of tax increment to be used for land acquisition, public
3369 improvements, infrastructure improvements, and loans, grants, or other incentives to private
3370 and public entities;
3371 (e) the tax increment expected to be used to cover the cost of administering the project
3372 area plan;
3373 (f) if tax increment is to be collected at different times or from different portions of the
3374 project area, or both:
3375 (i) (A) the tax identification numbers of the parcels from which tax increment will be

3376 collected; or
3377 (B) a legal description of the portion of the project area from which tax increment will
3378 be collected; and
3379 (ii) an estimate of when other portions of the project area will become subject to tax
3380 increment collection; and
3381 (g) for property that the authority owns or leases and expects to sell or sublease, the
3382 expected total cost of the property to the authority and the expected selling price or lease
3383 payments.
3384 (14) "Project area plan" means a written plan that, after its effective date, guides and
3385 controls the development within a project area.
3386 (15) "Property tax" includes privilege tax and each levy on an ad valorem basis on
3387 tangible or intangible personal or real property.
3388 (16) "Public entity" means:
3389 (a) the state, including any of its departments or agencies; or
3390 (b) a political subdivision of the state, including a county, city, town, school district,
3391 local district, special service district, or interlocal cooperation entity.
3392 (17) "Publicly owned infrastructure and improvements" means water, sewer, storm
3393 drainage, electrical, telecommunications, and other similar systems and lines, streets, roads,
3394 curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, and other
3395 buildings, facilities, infrastructure, and improvements benefitting the public and to be publicly
3396 owned or publicly maintained or operated.
3397 (18) "Remaining municipal services revenue" means municipal services revenue that
3398 the authority has not spent during its fiscal year for municipal services as provided in
3399 Subsection 63H-1-503 (1).
3400 (19) "Supplemental tax increment" means tax increment remaining after the authority
3401 is paid the tax increment it is entitled to receive under Subsection 63H-1-501 (1).
3402 (20) "Taxable value" means the value of property as shown on the last equalized
3403 assessment roll as certified by the county assessor.
3404 (21) "Tax increment" means the difference between:
3405 (a) the amount of property tax revenues generated each tax year by all taxing entities
3406 from the area within a project area designated in the project area plan as the area from which

3407 tax increment is to be collected, using the current assessed value of the property; and
3408 (b) the amount of property tax revenues that would be generated from that same area
3409 using the base taxable value of the property.
3410 (22) "Taxing entity" means a public entity that levies a tax on property within a project
3411 area.
3412 (23) "Telecommunications tax" means a telecommunications license tax under Title
3413 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
3414 (24) "Transient room tax" means a tax under Section 59-12-352 .
3415 Section 19. Section 63M-1-1407 is enacted to read:
3416 63M-1-1407. Definitions -- Tourism, Recreation, Cultural, Convention, and
3417 Airport Facilities Fund -- Source of revenues -- Interest -- Distribution of revenues --
3418 Expenditure of revenues -- Unexpended revenues lapse into the General Fund.
3419 (1) As used in this section:
3420 (a) "Fiscal year" means a one-year period beginning on July 1 of each year.
3421 (b) "Fund" means the Tourism, Recreation, Cultural, Convention, and Airport
3422 Facilities Fund created by this section.
3423 (c) "Qualifying tax" means a sales and use tax that:
3424 (i) a county legislative body imposes on sales of the following that are sold by a
3425 restaurant:
3426 (A) alcoholic beverages;
3427 (B) food and food ingredients; and
3428 (C) prepared food; and
3429 (ii) is repealed by this bill.
3430 (2) There is created a restricted special revenue fund known as the "Tourism,
3431 Recreation, Cultural, Convention, and Airport Facilities Fund."
3432 (3) (a) The fund shall be funded by amounts deposited in accordance with Subsection
3433 59-12-103 (14).
3434 (b) Any interest earned on the fund shall be deposited into the General Fund.
3435 (4) Subject to Subsection (5), the director shall within a 30-day period after the last day
3436 of a fiscal year distribute monies deposited into the fund to each county legislative body of a
3437 county that, on December 31, 2010, imposes a qualifying tax.

3438 (5) (a) For purposes of the distribution required by Subsection (4), the director shall:
3439 (i) estimate for each county described in Subsection (4) the amount of revenues that
3440 would have been collected from a qualifying tax for fiscal year 2008-09 had the county
3441 imposed the qualifying tax for the entire fiscal year 2008-09;
3442 (ii) calculate a percentage for each county described in Subsection (4) by dividing the
3443 amount estimated for each county in accordance with Subsection (5)(a)(i) by the total amount
3444 deposited in accordance with Subsection 59-12-103 (14):
3445 (A) for the time period beginning on January 1, 2011, and ending on June 30, 2011, for
3446 that time period; or
3447 (B) for a fiscal year beginning with fiscal year 2011-12, for that fiscal year; and
3448 (iii) distribute to each county described in Subsection (4) an amount equal to the
3449 product of:
3450 (A) the percentage calculated in accordance with Subsection (5)(a)(ii); and
3451 (B) the total amount deposited in accordance with Subsection 59-12-103 (14):
3452 (I) for the time period beginning on January 1, 2011, and ending on June 30, 2011, for
3453 that time period; or
3454 (II) for a fiscal year beginning with fiscal year 2011-12, for that fiscal year.
3455 (b) The director shall make the estimates, calculations, and distributions required by
3456 Subsection (5)(a) on the basis of data provided to the director by the State Tax Commission.
3457 (6) (a) Subject to Subsections (6)(b) and (c), a county legislative body shall expend the
3458 monies the county legislative body receives in accordance with Subsection (5) for:
3459 (i) financing tourism promotion; and
3460 (ii) the development, operation, and maintenance of:
3461 (A) an airport facility;
3462 (B) a convention facility;
3463 (C) a cultural facility;
3464 (D) a recreation facility; or
3465 (E) a tourist facility.
3466 (b) Monies a county legislative body receives in accordance with Subsection (5) may
3467 be pledged as security for bonds, notes, or other evidences of indebtedness incurred by a
3468 county, city, or town under Title 11, Chapter 14, Local Government Bonding Act, or a

3469 community development and renewal agency under Title 17C, Chapter 1, Part 5, Agency
3470 Bonds, to finance:
3471 (i) an airport facility;
3472 (ii) a convention facility;
3473 (iii) a cultural facility;
3474 (iv) a recreation facility; or
3475 (v) a tourist facility.
3476 (c) A county legislative body shall expend or pledge the monies the county legislative
3477 body receives in accordance with Subsection (5):
3478 (i) for the same purposes described in Subsections (6)(a) and (b) that the county
3479 expends or pledges revenues collected from a qualifying tax on December 31, 2010; and
3480 (ii) in the same percentages of revenues collected from a qualifying tax that the county
3481 legislative body allocates to the purposes described in Subsections (6)(a) and (b) on December
3482 31, 2010.
3483 (7) Any monies remaining in the fund at the end of a fiscal year after the director
3484 makes the distributions required by this section shall lapse into the General Fund.
3485 Section 20. Repealer.
3486 This bill repeals:
3487 Section 59-12-701, Purpose statement.
3488 Section 59-12-801, Definitions.
3489 Section 59-12-802, Imposition of rural county health care facilities tax --
3490 Expenditure of tax revenues -- Base -- Rate -- Administration, collection, and
3491 enforcement of tax.
3492 Section 59-12-803, Distribution of revenues generated by rural county health care
3493 facilities tax.
3494 Section 59-12-804, Imposition of rural city hospital tax -- Base -- Rate --
3495 Administration, collection, and enforcement of tax.
3496 Section 59-12-805, Distribution of revenues generated by rural city hospital tax.
3497 Section 59-12-806, Enactment or repeal of tax -- Tax rate change -- Effective date
3498 -- Notice requirements.
3499 Section 59-12-808, Seller or certified service provider reliance on commission

3500 information.
3501 Section 59-12-809, Certified service provider or model 2 seller reliance on
3502 commission certified software.
3503 Section 59-12-810, Purchaser relief from liability.
3504 Section 59-12-1301, Title.
3505 Section 59-12-1302, Imposition of tax -- Base -- Rate -- Enactment or repeal of tax
3506 -- Tax rate change -- Effective date -- Notice requirements.
3507 Section 59-12-1304, Seller or certified service provider reliance on commission
3508 information.
3509 Section 59-12-1305, Certified service provider or model 2 seller reliance on
3510 commission certified software.
3511 Section 59-12-1306, Purchaser relief from liability.
3512 Section 59-12-1401, Purpose statement -- Definitions -- Scope of part.
3513 Section 59-12-1402, Opinion question election -- Base -- Rate -- Imposition of tax --
3514 Uses of tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
3515 Section 59-12-1403, Distribution of revenues -- Administrative costs.
3516 Section 59-12-1405, Seller or certified service provider reliance on commission
3517 information.
3518 Section 59-12-1406, Certified service provider or model 2 seller reliance on
3519 commission certified software.
3520 Section 59-12-1407, Purchaser relief from liability.
3521 Section 21. Effective date.
3522 This bill takes effect on January 1, 2011.
3523 Section 22. Revisor instructions.
3524 It is the intent of the Legislature that, in preparing the Utah Code database for
3525 publication, the Office of Legislative Research and General Counsel shall replace the
3526 references in the following subsections from "this bill" to the bill's designated chapter and
3527 section number in the Laws of Utah:
3528 (1) Subsection 26-9-4 (1)(h);
3529 (2) Subsection 59-12-205 (2)(c);
3530 (3) Subsection 59-12-704 (6)(a)(ii); and

3531 (4) Subsection 63M-1-1407 (1)(c)(ii).
3532 Section 23. Coordinating H.B. 148 with S.B. 30 -- Technical amendments.
3533 If this H.B. 148 and S.B. 30, Local Option Sales and Use Taxes for Transportation Act,
3534 both pass, it is the intent of the Legislature that the Office of Legislative Research and General
3535 Counsel, in preparing the Utah Code database for publication, change the references in
3536 Subsections 59-12-2003 (1) and (2):
3537 (1) from "59-12-501" to "59-12-2213";
3538 (2) from "59-12-502" to "59-12-2214";
3539 (3) from "59-12-1001" to "59-12-2215";
3540 (4) from "59-12-1503" to "59-12-2216";
3541 (5) from "59-12-1703" to "59-12-2217"; and
3542 (6) from "59-12-1903" to "59-12-2218."




Legislative Review Note
as of 2-10-10 11:47 AM

Office of Legislative Research and General Counsel