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S.B. 30

This document includes House Floor Amendments incorporated into the bill on Thu, Feb 18, 2010 at 4:17 PM by lerror. -->              1     

LOCAL OPTION SALES AND USE TAXES

             2     
FOR TRANSPORTATION ACT

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne L. Niederhauser

             6     
House Sponsor: R. Curt Webb

             7     

             8      LONG TITLE
             9      Committee Note:
             10          The Revenue and Taxation Interim Committee recommended this bill.
             11      General Description:
             12          This bill amends the Sales and Use Tax Act to address local option sales and use taxes
             13      for transportation.
             14      Highlighted Provisions:
             15          This bill:
             16          .    enacts the Local Option Sales and Use Taxes for Transportation Act;
             17          .    defines terms;
             18          .    repeals certain local option sales and use taxes for transportation and enacts certain
             19      local option sales and use taxes for transportation;
             20          .    addresses the authority to impose a local option sales and use tax for transportation;
             21          .    addresses the transactions that may be subject to taxation and the tax rates at which
             22      those transactions may be subject to taxation;
             23          .    addresses the determination of the location of a transaction for sales and use tax
             24      purposes;
             25          .    addresses the administration, collection, and enforcement of a local option sales and
             26      use tax for transportation;
             27          .    addresses the transfer or transmission of revenues collected from a local option



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House Floor Amendments 2-18-2010 le/rlr
             28
     sales and use tax for transportation;
             29          .    addresses the State Tax Commission's authority to retain a percentage of revenues
             30      collected from a local option sales and use tax for transportation, the deposit of
             31      those revenues into the Sales and Use Tax Administrative Fees Account, and the
             32      expenditure of those revenues;
             33          .    addresses legislative body and voter approval requirements for a local option sales
             34      and use tax for transportation;
             35          .    addresses the enactment, repeal, or change in the rate of a local option sales and use
             36      tax for transportation;
             37          .    addresses a seller's or certified service provider's failure to collect a local option
             38      sales and use tax for transportation if the seller or certified service provider relies on
             39      certain State Tax Commission information;
             40          .    addresses a seller's or certified service provider's failure to collect a local option
             41      sales and use tax for transportation if the seller or certified service provider relies on
             42      certain software certified by the State Tax Commission;
             43          .    addresses the circumstances under which a purchaser is relieved from a penalty or is
             44      not liable for a tax or interest;
             44a      H. . provides transition provisions; .H
             45          .    addresses the imposition of local option sales and use taxes for transportation
             46      including the purposes for which revenues collected from the taxes may be
             47      expended; and
             48          .    makes technical and conforming changes.
             49      Monies Appropriated in this Bill:
             50          None
             51      Other Special Clauses:
             52          This bill takes effect on July 1, 2010.
             52a      H. This bill provides revisor instructions. .H
             53      Utah Code Sections Affected:
             54      AMENDS:
             55          10-8-86, as last amended by Laws of Utah 1988, Chapter 213
             56          17-50-322, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
             57          17B-1-412, as renumbered and amended by Laws of Utah 2007, Chapter 329
             58          59-12-102, as last amended by Laws of Utah 2009, Chapters 203 and 314



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House Floor Amendments 2-18-2010 le/rlr
             59
         59-12-211, as enacted by Laws of Utah 2008, Chapter 384
             60          59-12-602, as last amended by Laws of Utah 2008, Chapter 286
             61          59-12-2003, as last amended by Laws of Utah 2009, Chapter 385
             62          63B-11-501, as last amended by Laws of Utah 2003, Chapter 335
             63          63B-11-502, as last amended by Laws of Utah 2008, Chapter 224
             64          72-2-117.5, as last amended by Laws of Utah 2009, Chapters 244, 344, and 374
             65          72-2-121, as last amended by Laws of Utah 2009, Chapter 275
             66          72-2-121.1, as last amended by Laws of Utah 2007, Chapter 10
             67          72-2-121.2, as last amended by Laws of Utah 2009, Chapter 244
             68          72-10-215, as enacted by Laws of Utah 2008, Chapter 286
             69      ENACTS:
             70          59-12-2201, Utah Code Annotated 1953
             71          59-12-2202, Utah Code Annotated 1953
             72          59-12-2203, Utah Code Annotated 1953
             73          59-12-2204, Utah Code Annotated 1953
             74          59-12-2205, Utah Code Annotated 1953
             75          59-12-2206, Utah Code Annotated 1953
             76          59-12-2207, Utah Code Annotated 1953
             77          59-12-2208, Utah Code Annotated 1953
             78          59-12-2209, Utah Code Annotated 1953
             79          59-12-2210, Utah Code Annotated 1953
             80          59-12-2211, Utah Code Annotated 1953
             81          59-12-2212, Utah Code Annotated 1953
             81a      H. 59-12-2212.1, Utah Code Annotated 1953 .H
             82          59-12-2213, Utah Code Annotated 1953
             83          59-12-2214, Utah Code Annotated 1953
             84          59-12-2215, Utah Code Annotated 1953
             85          59-12-2216, Utah Code Annotated 1953
             86          59-12-2217, Utah Code Annotated 1953
             87      RENUMBERS AND AMENDS:
             88          59-12-2218, (Renumbered from 59-12-1903, as last amended by Laws of Utah 2009,
             89      Chapter 244)



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             90
     REPEALS:
             91          59-12-501, as last amended by Laws of Utah 2008, Chapters 7 and 384
             92          59-12-502, as last amended by Laws of Utah 2009, Chapter 244
             93          59-12-503, as enacted by Laws of Utah 1997, Chapter 131
             94          59-12-504, as last amended by Laws of Utah 2008, Chapters 382 and 384
             95          59-12-506, as last amended by Laws of Utah 2009, Chapter 203
             96          59-12-507, as enacted by Laws of Utah 2008, Chapter 384
             97          59-12-508, as enacted by Laws of Utah 2008, Chapter 384
             98          59-12-1001, as last amended by Laws of Utah 2009, Chapter 388
             99          59-12-1002, as last amended by Laws of Utah 2008, Chapter 384
             100          59-12-1004, as last amended by Laws of Utah 2009, Chapter 203
             101          59-12-1005, as enacted by Laws of Utah 2008, Chapter 384
             102          59-12-1006, as enacted by Laws of Utah 2008, Chapter 384
             103          59-12-1501, as enacted by Laws of Utah 2003, Chapter 282
             104          59-12-1502, as last amended by Laws of Utah 2007, Chapters 10 and 329
             105          59-12-1503, as last amended by Laws of Utah 2008, Chapters 382 and 384
             106          59-12-1505, as last amended by Laws of Utah 2009, Chapter 203
             107          59-12-1506, as enacted by Laws of Utah 2008, Chapter 384
             108          59-12-1507, as enacted by Laws of Utah 2008, Chapter 384
             109          59-12-1701, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
             110          59-12-1702, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
             111          59-12-1703, as last amended by Laws of Utah 2008, Chapters 382 and 384
             112          59-12-1704, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
             113          59-12-1705, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
             114          59-12-1706, as last amended by Laws of Utah 2009, Chapter 203
             115          59-12-1707, as enacted by Laws of Utah 2008, Chapter 384
             116          59-12-1708, as enacted by Laws of Utah 2008, Chapter 384
             117          59-12-1901, as last amended by Laws of Utah 2009, Chapter 244
             118          59-12-1902, as last amended by Laws of Utah 2009, Chapter 244
             119          59-12-1904, as last amended by Laws of Utah 2009, Chapter 203
             120          59-12-1905, as enacted by Laws of Utah 2008, Chapter 286



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             121
         59-12-1906, as enacted by Laws of Utah 2008, Chapter 286
             122     

             123      Be it enacted by the Legislature of the state of Utah:
             124          Section 1. Section 10-8-86 is amended to read:
             125           10-8-86. Organization, operation, maintenance, and funding of system for public
             126      transit authorized.
             127          (1) The governing body of any municipality may adopt a resolution allowing the
             128      municipality to organize, operate, and maintain a [public transportation] system for public
             129      transit within [such] the municipality and to impose a sales and a use tax to fund the system for
             130      public transit as provided in Section [ 59-12-501 ] 59-12-2213 .
             131          (2) The authority granted municipalities by this section to organize, operate, and
             132      maintain a [public transportation] system for public transit is inapplicable to a municipality
             133      located in or within five highway or roadway miles of the boundary of an existing transit
             134      district, unless the existing transit district consents to the organization and operation of [such a]
             135      the system for public transit by the municipality.
             136          Section 2. Section 17-50-322 is amended to read:
             137           17-50-322. County funding for a fixed guideway.
             138          (1) For purposes of this section, "fixed guideway" means a public transit facility that
             139      uses and occupies:
             140          (a) rail for the use of public transit; or
             141          (b) a separate right-of-way for the use of public transit.
             142          (2) (a) Except as provided in Subsection (2)(b), a county legislative body may not levy
             143      a property tax or expend revenues from uniform fees or any tax or fee imposed in lieu of a
             144      property tax, to purchase, erect, repair, rebuild, maintain, or otherwise fund a fixed guideway.
             145          (b) Subsection (2)(a) does not apply to a property tax levy imposed by a county for the
             146      purpose of paying for bonds if:
             147          (i) before January 1, 2007, the bonds were issued or approved by voters for issuance to
             148      fund a fixed guideway; and
             149          (ii) the county does not impose a sales and use tax authorized by Section [ 59-12-1703 ]
             150      59-12-2217 .
             151          Section 3. Section 17B-1-412 is amended to read:



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             152
          17B-1-412. Protests -- Election.
             153          (1) (a) An owner of private real property located within or a registered voter residing
             154      within an area proposed to be annexed may protest an annexation by filing a written protest
             155      with the board of trustees of the proposed annexing local district, except:
             156          (i) as provided in Section 17B-1-413 ;
             157          (ii) for an annexation under Section 17B-1-415 ; and
             158          (iii) for an annexation proposed by a local district that receives sales and use tax funds
             159      from the counties, cities, and towns within the local district that impose a sales and use tax
             160      under Section [ 59-12-501 ] 59-12-2213 .
             161          (b) A protest of a boundary adjustment is not governed by this section but is governed
             162      by Section 17B-1-417 .
             163          (2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of
             164      the public hearing under Section 17B-1-409 .
             165          (3) (a) Except as provided in Subsection (4), the local district shall hold an election on
             166      the proposed annexation if:
             167          (i) timely protests are filed by:
             168          (A) the owners of private real property that:
             169          (I) is located within the area proposed to be annexed;
             170          (II) covers at least 10% of the total private land area within the entire area proposed to
             171      be annexed and within each applicable area; and
             172          (III) is equal in assessed value to at least 10% of the assessed value of all private real
             173      property within the entire area proposed to be annexed and within each applicable area; or
             174          (B) registered voters residing within the entire area proposed to be annexed and within
             175      each applicable area equal in number to at least 10% of the number of votes cast within the
             176      entire area proposed for annexation and within each applicable area, respectively, for the office
             177      of governor at the last regular general election before the filing of the petition; or
             178          (ii) the proposed annexing local district is one that receives sales and use tax funds
             179      from the counties, cities, and towns within the local district that impose a sales and use tax
             180      under Section [ 59-12-501 ] 59-12-2213 .
             181          (b) (i) At each election held under Subsection (3)(a)(ii), the ballot question shall be
             182      phrased to indicate that a voter's casting a vote for or against the annexation includes also a



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             183
     vote for or against the imposition of the sales and use tax as provided in Section [ 59-12-501 ]
             184      59-12-2213 .
             185          (ii) Except as otherwise provided in this part, each election under Subsection (3)(a)
             186      shall be governed by Title 20A, Election Code.
             187          (c) If a majority of registered voters residing within the area proposed to be annexed
             188      and voting on the proposal vote:
             189          (i) in favor of annexation, the board of trustees shall, subject to Subsections
             190      17B-1-414 (1)(b), (2), and (3), complete the annexation by adopting a resolution approving
             191      annexation of the area; or
             192          (ii) against annexation, the annexation process is terminated, the board may not adopt a
             193      resolution approving annexation of the area, and the area proposed to be annexed may not for
             194      two years be the subject of an effort under this part to annex to the same local district.
             195          (4) If sufficient protests are filed under this section to require an election for a
             196      proposed annexation to which the protest provisions of this section are applicable, a board of
             197      trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and
             198      terminating the annexation process without holding an election.
             199          Section 4. Section 59-12-102 is amended to read:
             200           59-12-102. Definitions.
             201          As used in this chapter:
             202          (1) "800 service" means a telecommunications service that:
             203          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             204          (b) is typically marketed:
             205          (i) under the name 800 toll-free calling;
             206          (ii) under the name 855 toll-free calling;
             207          (iii) under the name 866 toll-free calling;
             208          (iv) under the name 877 toll-free calling;
             209          (v) under the name 888 toll-free calling; or
             210          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             211      Federal Communications Commission.
             212          (2) (a) "900 service" means an inbound toll telecommunications service that:
             213          (i) a subscriber purchases;



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             214
         (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             215      the subscriber's:
             216          (A) prerecorded announcement; or
             217          (B) live service; and
             218          (iii) is typically marketed:
             219          (A) under the name 900 service; or
             220          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             221      Communications Commission.
             222          (b) "900 service" does not include a charge for:
             223          (i) a collection service a seller of a telecommunications service provides to a
             224      subscriber; or
             225          (ii) the following a subscriber sells to the subscriber's customer:
             226          (A) a product; or
             227          (B) a service.
             228          (3) (a) "Admission or user fees" includes season passes.
             229          (b) "Admission or user fees" does not include annual membership dues to private
             230      organizations.
             231          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             232      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             233      Agreement after November 12, 2002.
             234          (5) "Agreement combined tax rate" means the sum of the tax rates:
             235          (a) listed under Subsection (6); and
             236          (b) that are imposed within a local taxing jurisdiction.
             237          (6) "Agreement sales and use tax" means a tax imposed under:
             238          (a) Subsection 59-12-103 (2)(a)(i)(A);
             239          (b) Subsection 59-12-103 (2)(b)(i);
             240          (c) Subsection 59-12-103 (2)(c)(i);
             241          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             242          (e) Section 59-12-204 ;
             243          (f) Section 59-12-401 ;
             244          (g) Section 59-12-402 ;



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             245
         [(h) Section 59-12-501 ;]
             246          [(i) Section 59-12-502 ;]
             247          [(j)] (h) Section 59-12-703 ;
             248          [(k)] (i) Section 59-12-802 ;
             249          [(l)] (j) Section 59-12-804 ;
             250          [(m) Section 59-12-1001 ;]
             251          [(n)] (k) Section 59-12-1102 ;
             252          [(o)] (l) Section 59-12-1302 ;
             253          [(p)] (m) Section 59-12-1402 ;
             254          [(q) Section 59-12-1503 ;]
             255          [(r) Section 59-12-1703 ;]
             256          [(s)] (n) Section 59-12-1802 ;
             257          [(t) Section 59-12-1903 ;]
             258          [(u)] (o) Section 59-12-2003 ; [or]
             259          [(v)] (p) Section 59-12-2103 [.];
             260          (q) Section 59-12-2213 ;
             261          (r) Section 59-12-2214 ;
             262          (s) Section 59-12-2215 ;
             263          (t) Section 59-12-2216 ;
             264          (u) Section 59-12-2217 ; or
             265          (v) Section 59-12-2218 .
             266          (7) "Aircraft" is as defined in Section 72-10-102 .
             267          (8) "Alcoholic beverage" means a beverage that:
             268          (a) is suitable for human consumption; and
             269          (b) contains .5% or more alcohol by volume.
             270          (9) (a) "Ancillary service" means a service associated with, or incidental to, the
             271      provision of telecommunications service.
             272          (b) "Ancillary service" includes:
             273          (i) a conference bridging service;
             274          (ii) a detailed communications billing service;
             275          (iii) directory assistance;



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             276
         (iv) a vertical service; or
             277          (v) a voice mail service.
             278          (10) "Area agency on aging" is as defined in Section 62A-3-101 .
             279          (11) "Assisted amusement device" means an amusement device, skill device, or ride
             280      device that is started and stopped by an individual:
             281          (a) who is not the purchaser or renter of the right to use or operate the amusement
             282      device, skill device, or ride device; and
             283          (b) at the direction of the seller of the right to use the amusement device, skill device,
             284      or ride device.
             285          (12) "Assisted cleaning or washing of tangible personal property" means cleaning or
             286      washing of tangible personal property if the cleaning or washing labor is primarily performed
             287      by an individual:
             288          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             289      property; and
             290          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             291      property.
             292          (13) "Authorized carrier" means:
             293          (a) in the case of vehicles operated over public highways, the holder of credentials
             294      indicating that the vehicle is or will be operated pursuant to both the International Registration
             295      Plan and the International Fuel Tax Agreement;
             296          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             297      certificate or air carrier's operating certificate; or
             298          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             299      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             300          (14) (a) Except as provided in Subsection (14)(b), "biomass energy" means any of the
             301      following that is used as the primary source of energy to produce fuel or electricity:
             302          (i) material from a plant or tree; or
             303          (ii) other organic matter that is available on a renewable basis, including:
             304          (A) slash and brush from forests and woodlands;
             305          (B) animal waste;
             306          (C) methane produced:



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             307
         (I) at landfills; or
             308          (II) as a byproduct of the treatment of wastewater residuals;
             309          (D) aquatic plants; and
             310          (E) agricultural products.
             311          (b) "Biomass energy" does not include:
             312          (i) black liquor;
             313          (ii) treated woods; or
             314          (iii) biomass from municipal solid waste other than methane produced:
             315          (A) at landfills; or
             316          (B) as a byproduct of the treatment of wastewater residuals.
             317          (15) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             318      property, products, or services if the tangible personal property, products, or services are:
             319          (i) distinct and identifiable; and
             320          (ii) sold for one nonitemized price.
             321          (b) "Bundled transaction" does not include:
             322          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             323      the basis of the selection by the purchaser of the items of tangible personal property included in
             324      the transaction;
             325          (ii) the sale of real property;
             326          (iii) the sale of services to real property;
             327          (iv) the retail sale of tangible personal property and a service if:
             328          (A) the tangible personal property:
             329          (I) is essential to the use of the service; and
             330          (II) is provided exclusively in connection with the service; and
             331          (B) the service is the true object of the transaction;
             332          (v) the retail sale of two services if:
             333          (A) one service is provided that is essential to the use or receipt of a second service;
             334          (B) the first service is provided exclusively in connection with the second service; and
             335          (C) the second service is the true object of the transaction;
             336          (vi) a transaction that includes tangible personal property or a product subject to
             337      taxation under this chapter and tangible personal property or a product that is not subject to



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             338
     taxation under this chapter if the:
             339          (A) seller's purchase price of the tangible personal property or product subject to
             340      taxation under this chapter is de minimis; or
             341          (B) seller's sales price of the tangible personal property or product subject to taxation
             342      under this chapter is de minimis; and
             343          (vii) the retail sale of tangible personal property that is not subject to taxation under
             344      this chapter and tangible personal property that is subject to taxation under this chapter if:
             345          (A) that retail sale includes:
             346          (I) food and food ingredients;
             347          (II) a drug;
             348          (III) durable medical equipment;
             349          (IV) mobility enhancing equipment;
             350          (V) an over-the-counter drug;
             351          (VI) a prosthetic device; or
             352          (VII) a medical supply; and
             353          (B) subject to Subsection (15)(f):
             354          (I) the seller's purchase price of the tangible personal property subject to taxation under
             355      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             356          (II) the seller's sales price of the tangible personal property subject to taxation under
             357      this chapter is 50% or less of the seller's total sales price of that retail sale.
             358          (c) (i) For purposes of Subsection (15)(a)(i), tangible personal property, a product, or a
             359      service that is distinct and identifiable does not include:
             360          (A) packaging that:
             361          (I) accompanies the sale of the tangible personal property, product, or service; and
             362          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             363      service;
             364          (B) tangible personal property, a product, or a service provided free of charge with the
             365      purchase of another item of tangible personal property, a product, or a service; or
             366          (C) an item of tangible personal property, a product, or a service included in the
             367      definition of "purchase price."
             368          (ii) For purposes of Subsection (15)(c)(i)(B), an item of tangible personal property, a



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             369
     product, or a service is provided free of charge with the purchase of another item of tangible
             370      personal property, a product, or a service if the sales price of the purchased item of tangible
             371      personal property, product, or service does not vary depending on the inclusion of the tangible
             372      personal property, product, or service provided free of charge.
             373          (d) (i) For purposes of Subsection (15)(a)(ii), property sold for one nonitemized price
             374      does not include a price that is separately identified by product on the following, regardless of
             375      whether the following is in paper format or electronic format:
             376          (A) a binding sales document; or
             377          (B) another supporting sales-related document that is available to a purchaser.
             378          (ii) For purposes of Subsection (15)(d)(i), a binding sales document or another
             379      supporting sales-related document that is available to a purchaser includes:
             380          (A) a bill of sale;
             381          (B) a contract;
             382          (C) an invoice;
             383          (D) a lease agreement;
             384          (E) a periodic notice of rates and services;
             385          (F) a price list;
             386          (G) a rate card;
             387          (H) a receipt; or
             388          (I) a service agreement.
             389          (e) (i) For purposes of Subsection (15)(b)(vi), the sales price of tangible personal
             390      property or a product subject to taxation under this chapter is de minimis if:
             391          (A) the seller's purchase price of the tangible personal property or product is 10% or
             392      less of the seller's total purchase price of the bundled transaction; or
             393          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             394      the seller's total sales price of the bundled transaction.
             395          (ii) For purposes of Subsection (15)(b)(vi), a seller:
             396          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             397      purchase price or sales price of the tangible personal property or product subject to taxation
             398      under this chapter is de minimis; and
             399          (B) may not use a combination of the seller's purchase price and the seller's sales price



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             400
     to determine if the purchase price or sales price of the tangible personal property or product
             401      subject to taxation under this chapter is de minimis.
             402          (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
             403      contract to determine if the sales price of tangible personal property or a product is de minimis.
             404          (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
             405      the seller's purchase price and the seller's sales price to determine if tangible personal property
             406      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             407      price of that retail sale.
             408          (16) "Certified automated system" means software certified by the governing board of
             409      the agreement that:
             410          (a) calculates the agreement sales and use tax imposed within a local taxing
             411      jurisdiction:
             412          (i) on a transaction; and
             413          (ii) in the states that are members of the agreement;
             414          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             415      member of the agreement; and
             416          (c) maintains a record of the transaction described in Subsection (16)(a)(i).
             417          (17) "Certified service provider" means an agent certified:
             418          (a) by the governing board of the agreement; and
             419          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             420      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             421      own purchases.
             422          (18) (a) Subject to Subsection (18)(b), "clothing" means all human wearing apparel
             423      suitable for general use.
             424          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             425      commission shall make rules:
             426          (i) listing the items that constitute "clothing"; and
             427          (ii) that are consistent with the list of items that constitute "clothing" under the
             428      agreement.
             429          (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             430          (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other



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             431
     fuels that does not constitute industrial use under Subsection (46) or residential use under
             432      Subsection (91).
             433          (21) (a) "Common carrier" means a person engaged in or transacting the business of
             434      transporting passengers, freight, merchandise, or other property for hire within this state.
             435          (b) (i) "Common carrier" does not include a person who, at the time the person is
             436      traveling to or from that person's place of employment, transports a passenger to or from the
             437      passenger's place of employment.
             438          (ii) For purposes of Subsection (21)(b)(i), in accordance with Title 63G, Chapter 3,
             439      Utah Administrative Rulemaking Act, the commission may make rules defining what
             440      constitutes a person's place of employment.
             441          (22) "Component part" includes:
             442          (a) poultry, dairy, and other livestock feed, and their components;
             443          (b) baling ties and twine used in the baling of hay and straw;
             444          (c) fuel used for providing temperature control of orchards and commercial
             445      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             446      off-highway type farm machinery; and
             447          (d) feed, seeds, and seedlings.
             448          (23) "Computer" means an electronic device that accepts information:
             449          (a) (i) in digital form; or
             450          (ii) in a form similar to digital form; and
             451          (b) manipulates that information for a result based on a sequence of instructions.
             452          (24) "Computer software" means a set of coded instructions designed to cause:
             453          (a) a computer to perform a task; or
             454          (b) automatic data processing equipment to perform a task.
             455          (25) (a) "Conference bridging service" means an ancillary service that links two or
             456      more participants of an audio conference call or video conference call.
             457          (b) "Conference bridging service" includes providing a telephone number as part of the
             458      ancillary service described in Subsection (25)(a).
             459          (c) "Conference bridging service" does not include a telecommunications service used
             460      to reach the ancillary service described in Subsection (25)(a).
             461          (26) "Construction materials" means any tangible personal property that will be



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             462
     converted into real property.
             463          (27) "Delivered electronically" means delivered to a purchaser by means other than
             464      tangible storage media.
             465          (28) (a) "Delivery charge" means a charge:
             466          (i) by a seller of:
             467          (A) tangible personal property;
             468          (B) a product transferred electronically; or
             469          (C) services; and
             470          (ii) for preparation and delivery of the tangible personal property, product transferred
             471      electronically, or services described in Subsection (28)(a)(i) to a location designated by the
             472      purchaser.
             473          (b) "Delivery charge" includes a charge for the following:
             474          (i) transportation;
             475          (ii) shipping;
             476          (iii) postage;
             477          (iv) handling;
             478          (v) crating; or
             479          (vi) packing.
             480          (29) "Detailed telecommunications billing service" means an ancillary service of
             481      separately stating information pertaining to individual calls on a customer's billing statement.
             482          (30) "Dietary supplement" means a product, other than tobacco, that:
             483          (a) is intended to supplement the diet;
             484          (b) contains one or more of the following dietary ingredients:
             485          (i) a vitamin;
             486          (ii) a mineral;
             487          (iii) an herb or other botanical;
             488          (iv) an amino acid;
             489          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             490      dietary intake; or
             491          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             492      described in Subsections (30)(b)(i) through (v);



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             493
         (c) (i) except as provided in Subsection (30)(c)(ii), is intended for ingestion in:
             494          (A) tablet form;
             495          (B) capsule form;
             496          (C) powder form;
             497          (D) softgel form;
             498          (E) gelcap form; or
             499          (F) liquid form; or
             500          (ii) notwithstanding Subsection (30)(c)(i), if the product is not intended for ingestion in
             501      a form described in Subsections (30)(c)(i)(A) through (F), is not represented:
             502          (A) as conventional food; and
             503          (B) for use as a sole item of:
             504          (I) a meal; or
             505          (II) the diet; and
             506          (d) is required to be labeled as a dietary supplement:
             507          (i) identifiable by the "Supplemental Facts" box found on the label; and
             508          (ii) as required by 21 C.F.R. Sec. 101.36.
             509          (31) (a) "Direct mail" means printed material delivered or distributed by United States
             510      mail or other delivery service:
             511          (i) to:
             512          (A) a mass audience; or
             513          (B) addressees on a mailing list provided:
             514          (I) by a purchaser of the mailing list; or
             515          (II) at the discretion of the purchaser of the mailing list; and
             516          (ii) if the cost of the printed material is not billed directly to the recipients.
             517          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             518      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             519          (c) "Direct mail" does not include multiple items of printed material delivered to a
             520      single address.
             521          (32) "Directory assistance" means an ancillary service of providing:
             522          (a) address information; or
             523          (b) telephone number information.



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             524
         (33) (a) "Disposable home medical equipment or supplies" means medical equipment
             525      or supplies that:
             526          (i) cannot withstand repeated use; and
             527          (ii) are purchased by, for, or on behalf of a person other than:
             528          (A) a health care facility as defined in Section 26-21-2 ;
             529          (B) a health care provider as defined in Section 78B-3-403 ;
             530          (C) an office of a health care provider described in Subsection (33)(a)(ii)(B); or
             531          (D) a person similar to a person described in Subsections (33)(a)(ii)(A) through (C).
             532          (b) "Disposable home medical equipment or supplies" does not include:
             533          (i) a drug;
             534          (ii) durable medical equipment;
             535          (iii) a hearing aid;
             536          (iv) a hearing aid accessory;
             537          (v) mobility enhancing equipment; or
             538          (vi) tangible personal property used to correct impaired vision, including:
             539          (A) eyeglasses; or
             540          (B) contact lenses.
             541          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             542      commission may by rule define what constitutes medical equipment or supplies.
             543          (34) (a) "Drug" means a compound, substance, or preparation, or a component of a
             544      compound, substance, or preparation that is:
             545          (i) recognized in:
             546          (A) the official United States Pharmacopoeia;
             547          (B) the official Homeopathic Pharmacopoeia of the United States;
             548          (C) the official National Formulary; or
             549          (D) a supplement to a publication listed in Subsections (34)(a)(i)(A) through (C);
             550          (ii) intended for use in the:
             551          (A) diagnosis of disease;
             552          (B) cure of disease;
             553          (C) mitigation of disease;
             554          (D) treatment of disease; or



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             555
         (E) prevention of disease; or
             556          (iii) intended to affect:
             557          (A) the structure of the body; or
             558          (B) any function of the body.
             559          (b) "Drug" does not include:
             560          (i) food and food ingredients;
             561          (ii) a dietary supplement;
             562          (iii) an alcoholic beverage; or
             563          (iv) a prosthetic device.
             564          (35) (a) Except as provided in Subsection (35)(c), "durable medical equipment" means
             565      equipment that:
             566          (i) can withstand repeated use;
             567          (ii) is primarily and customarily used to serve a medical purpose;
             568          (iii) generally is not useful to a person in the absence of illness or injury; and
             569          (iv) is not worn in or on the body.
             570          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             571      equipment described in Subsection (35)(a).
             572          (c) Notwithstanding Subsection (35)(a), "durable medical equipment" does not include
             573      mobility enhancing equipment.
             574          (36) "Electronic" means:
             575          (a) relating to technology; and
             576          (b) having:
             577          (i) electrical capabilities;
             578          (ii) digital capabilities;
             579          (iii) magnetic capabilities;
             580          (iv) wireless capabilities;
             581          (v) optical capabilities;
             582          (vi) electromagnetic capabilities; or
             583          (vii) capabilities similar to Subsections (36)(b)(i) through (vi).
             584          (37) "Employee" is as defined in Section 59-10-401 .
             585          (38) "Fixed guideway" means a public transit facility that uses and occupies:



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             586
         (a) rail for the use of public transit; or
             587          (b) a separate right-of-way for the use of public transit.
             588          (39) "Fixed wireless service" means a telecommunications service that provides radio
             589      communication between fixed points.
             590          (40) (a) "Food and food ingredients" means substances:
             591          (i) regardless of whether the substances are in:
             592          (A) liquid form;
             593          (B) concentrated form;
             594          (C) solid form;
             595          (D) frozen form;
             596          (E) dried form; or
             597          (F) dehydrated form; and
             598          (ii) that are:
             599          (A) sold for:
             600          (I) ingestion by humans; or
             601          (II) chewing by humans; and
             602          (B) consumed for the substance's:
             603          (I) taste; or
             604          (II) nutritional value.
             605          (b) "Food and food ingredients" includes an item described in Subsection (75)(b)(iii).
             606          (c) "Food and food ingredients" does not include:
             607          (i) an alcoholic beverage;
             608          (ii) tobacco; or
             609          (iii) prepared food.
             610          (41) (a) "Fundraising sales" means sales:
             611          (i) (A) made by a school; or
             612          (B) made by a school student;
             613          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             614      materials, or provide transportation; and
             615          (iii) that are part of an officially sanctioned school activity.
             616          (b) For purposes of Subsection (41)(a)(iii), "officially sanctioned school activity"



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             617
     means a school activity:
             618          (i) that is conducted in accordance with a formal policy adopted by the school or school
             619      district governing the authorization and supervision of fundraising activities;
             620          (ii) that does not directly or indirectly compensate an individual teacher or other
             621      educational personnel by direct payment, commissions, or payment in kind; and
             622          (iii) the net or gross revenues from which are deposited in a dedicated account
             623      controlled by the school or school district.
             624          (42) "Geothermal energy" means energy contained in heat that continuously flows
             625      outward from the earth that is used as the sole source of energy to produce electricity.
             626          (43) "Governing board of the agreement" means the governing board of the agreement
             627      that is:
             628          (a) authorized to administer the agreement; and
             629          (b) established in accordance with the agreement.
             630          (44) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             631          (i) the executive branch of the state, including all departments, institutions, boards,
             632      divisions, bureaus, offices, commissions, and committees;
             633          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             634      Office of the Court Administrator, and similar administrative units in the judicial branch;
             635          (iii) the legislative branch of the state, including the House of Representatives, the
             636      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             637      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             638      Analyst;
             639          (iv) the National Guard;
             640          (v) an independent entity as defined in Section 63E-1-102 ; or
             641          (vi) a political subdivision as defined in Section 17B-1-102 .
             642          (b) "Governmental entity" does not include the state systems of public and higher
             643      education, including:
             644          (i) a college campus of the Utah College of Applied Technology;
             645          (ii) a school;
             646          (iii) the State Board of Education;
             647          (iv) the State Board of Regents; or



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             648
         (v) a state institution of higher education as defined in Section 53B-3-102 .
             649          (45) "Hydroelectric energy" means water used as the sole source of energy to produce
             650      electricity.
             651          (46) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             652      other fuels:
             653          (a) in mining or extraction of minerals;
             654          (b) in agricultural operations to produce an agricultural product up to the time of
             655      harvest or placing the agricultural product into a storage facility, including:
             656          (i) commercial greenhouses;
             657          (ii) irrigation pumps;
             658          (iii) farm machinery;
             659          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             660      registered under Title 41, Chapter 1a, Part 2, Registration; and
             661          (v) other farming activities;
             662          (c) in manufacturing tangible personal property at an establishment described in SIC
             663      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             664      Executive Office of the President, Office of Management and Budget;
             665          (d) by a scrap recycler if:
             666          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             667      one or more of the following items into prepared grades of processed materials for use in new
             668      products:
             669          (A) iron;
             670          (B) steel;
             671          (C) nonferrous metal;
             672          (D) paper;
             673          (E) glass;
             674          (F) plastic;
             675          (G) textile; or
             676          (H) rubber; and
             677          (ii) the new products under Subsection (46)(d)(i) would otherwise be made with
             678      nonrecycled materials; or



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             679
         (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             680      cogeneration facility as defined in Section 54-2-1 .
             681          (47) (a) Except as provided in Subsection (47)(b), "installation charge" means a charge
             682      for installing:
             683          (i) tangible personal property; or
             684          (ii) a product transferred electronically.
             685          (b) "Installation charge" does not include a charge for repairs or renovations of:
             686          (i) tangible personal property; or
             687          (ii) a product transferred electronically.
             688          (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             689      personal property or a product transferred electronically for:
             690          (i) (A) a fixed term; or
             691          (B) an indeterminate term; and
             692          (ii) consideration.
             693          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             694      amount of consideration may be increased or decreased by reference to the amount realized
             695      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             696      Code.
             697          (c) "Lease" or "rental" does not include:
             698          (i) a transfer of possession or control of property under a security agreement or
             699      deferred payment plan that requires the transfer of title upon completion of the required
             700      payments;
             701          (ii) a transfer of possession or control of property under an agreement that requires the
             702      transfer of title:
             703          (A) upon completion of required payments; and
             704          (B) if the payment of an option price does not exceed the greater of:
             705          (I) $100; or
             706          (II) 1% of the total required payments; or
             707          (iii) providing tangible personal property along with an operator for a fixed period of
             708      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             709      designed.



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             710
         (d) For purposes of Subsection (48)(c)(iii), an operator is necessary for equipment to
             711      perform as designed if the operator's duties exceed the:
             712          (i) set-up of tangible personal property;
             713          (ii) maintenance of tangible personal property; or
             714          (iii) inspection of tangible personal property.
             715          (49) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             716      if the tangible storage media is not physically transferred to the purchaser.
             717          (50) "Local taxing jurisdiction" means a:
             718          (a) county that is authorized to impose an agreement sales and use tax;
             719          (b) city that is authorized to impose an agreement sales and use tax; or
             720          (c) town that is authorized to impose an agreement sales and use tax.
             721          (51) "Manufactured home" is as defined in Section 58-56-3 .
             722          (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
             723          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             724      Industrial Classification Manual of the federal Executive Office of the President, Office of
             725      Management and Budget;
             726          (b) a scrap recycler if:
             727          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             728      one or more of the following items into prepared grades of processed materials for use in new
             729      products:
             730          (A) iron;
             731          (B) steel;
             732          (C) nonferrous metal;
             733          (D) paper;
             734          (E) glass;
             735          (F) plastic;
             736          (G) textile; or
             737          (H) rubber; and
             738          (ii) the new products under Subsection (52)(b)(i) would otherwise be made with
             739      nonrecycled materials; or
             740          (c) a cogeneration facility as defined in Section 54-2-1 .



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             741
         (53) "Member of the immediate family of the producer" means a person who is related
             742      to a producer described in Subsection 59-12-104 (20)(a) as a:
             743          (a) child or stepchild, regardless of whether the child or stepchild is:
             744          (i) an adopted child or adopted stepchild; or
             745          (ii) a foster child or foster stepchild;
             746          (b) grandchild or stepgrandchild;
             747          (c) grandparent or stepgrandparent;
             748          (d) nephew or stepnephew;
             749          (e) niece or stepniece;
             750          (f) parent or stepparent;
             751          (g) sibling or stepsibling;
             752          (h) spouse;
             753          (i) person who is the spouse of a person described in Subsections (53)(a) through (g);
             754      or
             755          (j) person similar to a person described in Subsections (53)(a) through (i) as
             756      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             757      Administrative Rulemaking Act.
             758          (54) "Mobile home" is as defined in Section 58-56-3 .
             759          (55) "Mobile telecommunications service" is as defined in the Mobile
             760      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             761          (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
             762      the technology used, if:
             763          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             764          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             765          (iii) the origination point described in Subsection (56)(a)(i) and the termination point
             766      described in Subsection (56)(a)(ii) are not fixed.
             767          (b) "Mobile wireless service" includes a telecommunications service that is provided
             768      by a commercial mobile radio service provider.
             769          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             770      commission may by rule define "commercial mobile radio service provider."
             771          (57) (a) Except as provided in Subsection (57)(c), "mobility enhancing equipment"



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             772
     means equipment that is:
             773          (i) primarily and customarily used to provide or increase the ability to move from one
             774      place to another;
             775          (ii) appropriate for use in a:
             776          (A) home; or
             777          (B) motor vehicle; and
             778          (iii) not generally used by persons with normal mobility.
             779          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             780      the equipment described in Subsection (57)(a).
             781          (c) Notwithstanding Subsection (57)(a), "mobility enhancing equipment" does not
             782      include:
             783          (i) a motor vehicle;
             784          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             785      vehicle manufacturer;
             786          (iii) durable medical equipment; or
             787          (iv) a prosthetic device.
             788          (58) "Model 1 seller" means a seller that has selected a certified service provider as the
             789      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             790      use taxes other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             791      own purchases.
             792          (59) "Model 2 seller" means a seller that:
             793          (a) except as provided in Subsection (59)(b), has selected a certified automated system
             794      to perform the seller's sales tax functions for agreement sales and use taxes; and
             795          (b) notwithstanding Subsection (59)(a), retains responsibility for remitting all of the
             796      sales tax:
             797          (i) collected by the seller; and
             798          (ii) to the appropriate local taxing jurisdiction.
             799          (60) (a) Subject to Subsection (60)(b), "model 3 seller" means a seller that has:
             800          (i) sales in at least five states that are members of the agreement;
             801          (ii) total annual sales revenues of at least $500,000,000;
             802          (iii) a proprietary system that calculates the amount of tax:



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             803
         (A) for an agreement sales and use tax; and
             804          (B) due to each local taxing jurisdiction; and
             805          (iv) entered into a performance agreement with the governing board of the agreement.
             806          (b) For purposes of Subsection (60)(a), "model 3 seller" includes an affiliated group of
             807      sellers using the same proprietary system.
             808          (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
             809          (62) "Motor vehicle" is as defined in Section 41-1a-102 .
             810          (63) "Oil shale" means a group of fine black to dark brown shales containing
             811      bituminous material that yields petroleum upon distillation.
             812          (64) (a) "Other fuels" means products that burn independently to produce heat or
             813      energy.
             814          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             815      personal property.
             816          (65) (a) "Paging service" means a telecommunications service that provides
             817      transmission of a coded radio signal for the purpose of activating a specific pager.
             818          (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
             819      includes a transmission by message or sound.
             820          (66) "Pawnbroker" is as defined in Section 13-32a-102 .
             821          (67) "Pawn transaction" is as defined in Section 13-32a-102 .
             822          (68) (a) "Permanently attached to real property" means that for tangible personal
             823      property attached to real property:
             824          (i) the attachment of the tangible personal property to the real property:
             825          (A) is essential to the use of the tangible personal property; and
             826          (B) suggests that the tangible personal property will remain attached to the real
             827      property in the same place over the useful life of the tangible personal property; or
             828          (ii) if the tangible personal property is detached from the real property, the detachment
             829      would:
             830          (A) cause substantial damage to the tangible personal property; or
             831          (B) require substantial alteration or repair of the real property to which the tangible
             832      personal property is attached.
             833          (b) "Permanently attached to real property" includes:



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             834
         (i) the attachment of an accessory to the tangible personal property if the accessory is:
             835          (A) essential to the operation of the tangible personal property; and
             836          (B) attached only to facilitate the operation of the tangible personal property;
             837          (ii) a temporary detachment of tangible personal property from real property for a
             838      repair or renovation if the repair or renovation is performed where the tangible personal
             839      property and real property are located; or
             840          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             841      Subsection (68)(c)(iii) or (iv).
             842          (c) "Permanently attached to real property" does not include:
             843          (i) the attachment of portable or movable tangible personal property to real property if
             844      that portable or movable tangible personal property is attached to real property only for:
             845          (A) convenience;
             846          (B) stability; or
             847          (C) for an obvious temporary purpose;
             848          (ii) the detachment of tangible personal property from real property except for the
             849      detachment described in Subsection (68)(b)(ii);
             850          (iii) an attachment of the following tangible personal property to real property if the
             851      attachment to real property is only through a line that supplies water, electricity, gas,
             852      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             853      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             854          (A) a computer;
             855          (B) a telephone;
             856          (C) a television; or
             857          (D) tangible personal property similar to Subsections (68)(c)(iii)(A) through (C) as
             858      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             859      Administrative Rulemaking Act; or
             860          (iv) an item listed in Subsection (108)(c).
             861          (69) "Person" includes any individual, firm, partnership, joint venture, association,
             862      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             863      municipality, district, or other local governmental entity of the state, or any group or
             864      combination acting as a unit.



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             865
         (70) "Place of primary use":
             866          (a) for telecommunications service other than mobile telecommunications service,
             867      means the street address representative of where the customer's use of the telecommunications
             868      service primarily occurs, which shall be:
             869          (i) the residential street address of the customer; or
             870          (ii) the primary business street address of the customer; or
             871          (b) for mobile telecommunications service, is as defined in the Mobile
             872      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             873          (71) (a) "Postpaid calling service" means a telecommunications service a person
             874      obtains by making a payment on a call-by-call basis:
             875          (i) through the use of a:
             876          (A) bank card;
             877          (B) credit card;
             878          (C) debit card; or
             879          (D) travel card; or
             880          (ii) by a charge made to a telephone number that is not associated with the origination
             881      or termination of the telecommunications service.
             882          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             883      service, that would be a prepaid wireless calling service if the service were exclusively a
             884      telecommunications service.
             885          (72) "Postproduction" means an activity related to the finishing or duplication of a
             886      medium described in Subsection 59-12-104 (54)(a).
             887          (73) "Prepaid calling service" means a telecommunications service:
             888          (a) that allows a purchaser access to telecommunications service that is exclusively
             889      telecommunications service;
             890          (b) that:
             891          (i) is paid for in advance; and
             892          (ii) enables the origination of a call using an:
             893          (A) access number; or
             894          (B) authorization code;
             895          (c) that is dialed:



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             896
         (i) manually; or
             897          (ii) electronically; and
             898          (d) sold in predetermined units or dollars that decline:
             899          (i) by a known amount; and
             900          (ii) with use.
             901          (74) "Prepaid wireless calling service" means a telecommunications service:
             902          (a) that provides the right to utilize:
             903          (i) mobile wireless service; and
             904          (ii) other service that is not a telecommunications service, including:
             905          (A) the download of a product transferred electronically;
             906          (B) a content service; or
             907          (C) an ancillary service;
             908          (b) that:
             909          (i) is paid for in advance; and
             910          (ii) enables the origination of a call using an:
             911          (A) access number; or
             912          (B) authorization code;
             913          (c) that is dialed:
             914          (i) manually; or
             915          (ii) electronically; and
             916          (d) sold in predetermined units or dollars that decline:
             917          (i) by a known amount; and
             918          (ii) with use.
             919          (75) (a) "Prepared food" means:
             920          (i) food:
             921          (A) sold in a heated state; or
             922          (B) heated by a seller;
             923          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             924      item; or
             925          (iii) except as provided in Subsection (75)(c), food sold with an eating utensil provided
             926      by the seller, including a:



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             927
         (A) plate;
             928          (B) knife;
             929          (C) fork;
             930          (D) spoon;
             931          (E) glass;
             932          (F) cup;
             933          (G) napkin; or
             934          (H) straw.
             935          (b) "Prepared food" does not include:
             936          (i) food that a seller only:
             937          (A) cuts;
             938          (B) repackages; or
             939          (C) pasteurizes; or
             940          (ii) (A) the following:
             941          (I) raw egg;
             942          (II) raw fish;
             943          (III) raw meat;
             944          (IV) raw poultry; or
             945          (V) a food containing an item described in Subsections (75)(b)(ii)(A)(I) through (IV);
             946      and
             947          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             948      Food and Drug Administration's Food Code that a consumer cook the items described in
             949      Subsection (75)(b)(ii)(A) to prevent food borne illness; or
             950          (iii) the following if sold without eating utensils provided by the seller:
             951          (A) food and food ingredients sold by a seller if the seller's proper primary
             952      classification under the 2002 North American Industry Classification System of the federal
             953      Executive Office of the President, Office of Management and Budget, is manufacturing in
             954      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             955      Manufacturing;
             956          (B) food and food ingredients sold in an unheated state:
             957          (I) by weight or volume; and



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             958
         (II) as a single item; or
             959          (C) a bakery item, including:
             960          (I) a bagel;
             961          (II) a bar;
             962          (III) a biscuit;
             963          (IV) bread;
             964          (V) a bun;
             965          (VI) a cake;
             966          (VII) a cookie;
             967          (VIII) a croissant;
             968          (IX) a danish;
             969          (X) a donut;
             970          (XI) a muffin;
             971          (XII) a pastry;
             972          (XIII) a pie;
             973          (XIV) a roll;
             974          (XV) a tart;
             975          (XVI) a torte; or
             976          (XVII) a tortilla.
             977          (c) Notwithstanding Subsection (75)(a)(iii), an eating utensil provided by the seller
             978      does not include the following used to transport the food:
             979          (i) a container; or
             980          (ii) packaging.
             981          (76) "Prescription" means an order, formula, or recipe that is issued:
             982          (a) (i) orally;
             983          (ii) in writing;
             984          (iii) electronically; or
             985          (iv) by any other manner of transmission; and
             986          (b) by a licensed practitioner authorized by the laws of a state.
             987          (77) (a) Except as provided in Subsection (77)(b)(ii) or (iii), "prewritten computer
             988      software" means computer software that is not designed and developed:



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             989
         (i) by the author or other creator of the computer software; and
             990          (ii) to the specifications of a specific purchaser.
             991          (b) "Prewritten computer software" includes:
             992          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             993      software is not designed and developed:
             994          (A) by the author or other creator of the computer software; and
             995          (B) to the specifications of a specific purchaser;
             996          (ii) notwithstanding Subsection (77)(a), computer software designed and developed by
             997      the author or other creator of the computer software to the specifications of a specific purchaser
             998      if the computer software is sold to a person other than the purchaser; or
             999          (iii) notwithstanding Subsection (77)(a) and except as provided in Subsection (77)(c),
             1000      prewritten computer software or a prewritten portion of prewritten computer software:
             1001          (A) that is modified or enhanced to any degree; and
             1002          (B) if the modification or enhancement described in Subsection (77)(b)(iii)(A) is
             1003      designed and developed to the specifications of a specific purchaser.
             1004          (c) Notwithstanding Subsection (77)(b)(iii), "prewritten computer software" does not
             1005      include a modification or enhancement described in Subsection (77)(b)(iii) if the charges for
             1006      the modification or enhancement are:
             1007          (i) reasonable; and
             1008          (ii) separately stated on the invoice or other statement of price provided to the
             1009      purchaser.
             1010          (78) (a) "Private communication service" means a telecommunications service:
             1011          (i) that entitles a customer to exclusive or priority use of one or more communications
             1012      channels between or among termination points; and
             1013          (ii) regardless of the manner in which the one or more communications channels are
             1014      connected.
             1015          (b) "Private communications service" includes the following provided in connection
             1016      with the use of one or more communications channels:
             1017          (i) an extension line;
             1018          (ii) a station;
             1019          (iii) switching capacity; or



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             1020
         (iv) another associated service that is provided in connection with the use of one or
             1021      more communications channels as defined in Section 59-12-215 .
             1022          (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1023          (i) artificially replace a missing portion of the body;
             1024          (ii) prevent or correct a physical deformity or physical malfunction; or
             1025          (iii) support a weak or deformed portion of the body.
             1026          (b) "Prosthetic device" includes:
             1027          (i) parts used in the repairs or renovation of a prosthetic device;
             1028          (ii) replacement parts for a prosthetic device;
             1029          (iii) a dental prosthesis; or
             1030          (iv) a hearing aid.
             1031          (c) "Prosthetic device" does not include:
             1032          (i) corrective eyeglasses; or
             1033          (ii) contact lenses.
             1034          (80) (a) "Protective equipment" means an item:
             1035          (i) for human wear; and
             1036          (ii) that is:
             1037          (A) designed as protection:
             1038          (I) to the wearer against injury or disease; or
             1039          (II) against damage or injury of other persons or property; and
             1040          (B) not suitable for general use.
             1041          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1042      commission shall make rules:
             1043          (i) listing the items that constitute "protective equipment"; and
             1044          (ii) that are consistent with the list of items that constitute "protective equipment"
             1045      under the agreement.
             1046          (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             1047      printed matter, other than a photocopy:
             1048          (i) regardless of:
             1049          (A) characteristics;
             1050          (B) copyright;



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             1051
         (C) form;
             1052          (D) format;
             1053          (E) method of reproduction; or
             1054          (F) source; and
             1055          (ii) made available in printed or electronic format.
             1056          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1057      commission may by rule define the term "photocopy."
             1058          (82) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1059          (i) valued in money; and
             1060          (ii) for which tangible personal property, a product transferred electronically, or
             1061      services are:
             1062          (A) sold;
             1063          (B) leased; or
             1064          (C) rented.
             1065          (b) "Purchase price" and "sales price" include:
             1066          (i) the seller's cost of the tangible personal property, a product transferred
             1067      electronically, or services sold;
             1068          (ii) expenses of the seller, including:
             1069          (A) the cost of materials used;
             1070          (B) a labor cost;
             1071          (C) a service cost;
             1072          (D) interest;
             1073          (E) a loss;
             1074          (F) the cost of transportation to the seller; or
             1075          (G) a tax imposed on the seller;
             1076          (iii) a charge by the seller for any service necessary to complete the sale; or
             1077          (iv) consideration a seller receives from a person other than the purchaser if:
             1078          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1079      and
             1080          (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
             1081      price reduction or discount on the sale;



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             1082
         (B) the seller has an obligation to pass the price reduction or discount through to the
             1083      purchaser;
             1084          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1085      the seller at the time of the sale to the purchaser; and
             1086          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1087      seller to claim a price reduction or discount; and
             1088          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1089      coupon, or other documentation with the understanding that the person other than the seller
             1090      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1091          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1092      organization allowed a price reduction or discount, except that a preferred customer card that is
             1093      available to any patron of a seller does not constitute membership in a group or organization
             1094      allowed a price reduction or discount; or
             1095          (III) the price reduction or discount is identified as a third party price reduction or
             1096      discount on the:
             1097          (Aa) invoice the purchaser receives; or
             1098          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1099          (c) "Purchase price" and "sales price" do not include:
             1100          (i) a discount:
             1101          (A) in a form including:
             1102          (I) cash;
             1103          (II) term; or
             1104          (III) coupon;
             1105          (B) that is allowed by a seller;
             1106          (C) taken by a purchaser on a sale; and
             1107          (D) that is not reimbursed by a third party; or
             1108          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1109      provided to the purchaser:
             1110          (A) the following from credit extended on the sale of tangible personal property or
             1111      services:
             1112          (I) a carrying charge;



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             1113
         (II) a financing charge; or
             1114          (III) an interest charge;
             1115          (B) a delivery charge;
             1116          (C) an installation charge;
             1117          (D) a manufacturer rebate on a motor vehicle; or
             1118          (E) a tax or fee legally imposed directly on the consumer.
             1119          (83) "Purchaser" means a person to whom:
             1120          (a) a sale of tangible personal property is made;
             1121          (b) a product is transferred electronically; or
             1122          (c) a service is furnished.
             1123          (84) "Regularly rented" means:
             1124          (a) rented to a guest for value three or more times during a calendar year; or
             1125          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1126      value.
             1127          (85) "Renewable energy" means:
             1128          (a) biomass energy;
             1129          (b) hydroelectric energy;
             1130          (c) geothermal energy;
             1131          (d) solar energy; or
             1132          (e) wind energy.
             1133          (86) (a) "Renewable energy production facility" means a facility that:
             1134          (i) uses renewable energy to produce electricity; and
             1135          (ii) has a production capacity of 20 kilowatts or greater.
             1136          (b) A facility is a renewable energy production facility regardless of whether the
             1137      facility is:
             1138          (i) connected to an electric grid; or
             1139          (ii) located on the premises of an electricity consumer.
             1140          (87) "Rental" is as defined in Subsection (48).
             1141          (88) "Repairs or renovations of tangible personal property" means:
             1142          (a) a repair or renovation of tangible personal property that is not permanently attached
             1143      to real property; or



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             1144
         (b) attaching tangible personal property or a product that is transferred electronically to
             1145      other tangible personal property if the other tangible personal property to which the tangible
             1146      personal property or product that is transferred electronically is attached is not permanently
             1147      attached to real property.
             1148          (89) "Research and development" means the process of inquiry or experimentation
             1149      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1150      preparing those devices, technologies, or applications for marketing.
             1151          (90) (a) "Residential telecommunications services" means a telecommunications
             1152      service or an ancillary service that is provided to an individual for personal use:
             1153          (i) at a residential address; or
             1154          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1155      service or ancillary service is provided to and paid for by the individual residing at the
             1156      institution rather than the institution.
             1157          (b) For purposes of Subsection (90)(a), a residential address includes an:
             1158          (i) apartment; or
             1159          (ii) other individual dwelling unit.
             1160          (91) "Residential use" means the use in or around a home, apartment building, sleeping
             1161      quarters, and similar facilities or accommodations.
             1162          (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1163      than:
             1164          (a) resale;
             1165          (b) sublease; or
             1166          (c) subrent.
             1167          (93) (a) "Retailer" means any person engaged in a regularly organized business in
             1168      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1169      who is selling to the user or consumer and not for resale.
             1170          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1171      engaged in the business of selling to users or consumers within the state.
             1172          (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1173      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1174      Subsection 59-12-103 (1), for consideration.



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             1175
         (b) "Sale" includes:
             1176          (i) installment and credit sales;
             1177          (ii) any closed transaction constituting a sale;
             1178          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1179      chapter;
             1180          (iv) any transaction if the possession of property is transferred but the seller retains the
             1181      title as security for the payment of the price; and
             1182          (v) any transaction under which right to possession, operation, or use of any article of
             1183      tangible personal property is granted under a lease or contract and the transfer of possession
             1184      would be taxable if an outright sale were made.
             1185          (95) "Sale at retail" is as defined in Subsection (92).
             1186          (96) "Sale-leaseback transaction" means a transaction by which title to tangible
             1187      personal property or a product transferred electronically that is subject to a tax under this
             1188      chapter is transferred:
             1189          (a) by a purchaser-lessee;
             1190          (b) to a lessor;
             1191          (c) for consideration; and
             1192          (d) if:
             1193          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1194      of the tangible personal property or product transferred electronically;
             1195          (ii) the sale of the tangible personal property or product transferred electronically to the
             1196      lessor is intended as a form of financing:
             1197          (A) for the tangible personal property or product transferred electronically; and
             1198          (B) to the purchaser-lessee; and
             1199          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1200      is required to:
             1201          (A) capitalize the tangible personal property or product transferred electronically for
             1202      financial reporting purposes; and
             1203          (B) account for the lease payments as payments made under a financing arrangement.
             1204          (97) "Sales price" is as defined in Subsection (82).
             1205          (98) (a) "Sales relating to schools" means the following sales by, amounts paid to, or



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             1206
     amounts charged by a school:
             1207          (i) sales that are directly related to the school's educational functions or activities
             1208      including:
             1209          (A) the sale of:
             1210          (I) textbooks;
             1211          (II) textbook fees;
             1212          (III) laboratory fees;
             1213          (IV) laboratory supplies; or
             1214          (V) safety equipment;
             1215          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1216      that:
             1217          (I) a student is specifically required to wear as a condition of participation in a
             1218      school-related event or school-related activity; and
             1219          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1220      place of ordinary clothing;
             1221          (C) sales of the following if the net or gross revenues generated by the sales are
             1222      deposited into a school district fund or school fund dedicated to school meals:
             1223          (I) food and food ingredients; or
             1224          (II) prepared food; or
             1225          (D) transportation charges for official school activities; or
             1226          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1227      event or school-related activity.
             1228          (b) "Sales relating to schools" does not include:
             1229          (i) bookstore sales of items that are not educational materials or supplies;
             1230          (ii) except as provided in Subsection (98)(a)(i)(B):
             1231          (A) clothing;
             1232          (B) clothing accessories or equipment;
             1233          (C) protective equipment; or
             1234          (D) sports or recreational equipment; or
             1235          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1236      event or school-related activity if the amounts paid or charged are passed through to a person:



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             1237
         (A) other than a:
             1238          (I) school;
             1239          (II) nonprofit organization authorized by a school board or a governing body of a
             1240      private school to organize and direct a competitive secondary school activity; or
             1241          (III) nonprofit association authorized by a school board or a governing body of a
             1242      private school to organize and direct a competitive secondary school activity; and
             1243          (B) that is required to collect sales and use taxes under this chapter.
             1244          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1245      commission may make rules defining the term "passed through."
             1246          (99) For purposes of this section and Section 59-12-104 , "school":
             1247          (a) means:
             1248          (i) an elementary school or a secondary school that:
             1249          (A) is a:
             1250          (I) public school; or
             1251          (II) private school; and
             1252          (B) provides instruction for one or more grades kindergarten through 12; or
             1253          (ii) a public school district; and
             1254          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1255          (100) "Seller" means a person that makes a sale, lease, or rental of:
             1256          (a) tangible personal property;
             1257          (b) a product transferred electronically; or
             1258          (c) a service.
             1259          (101) (a) "Semiconductor fabricating, processing, research, or development materials"
             1260      means tangible personal property or a product transferred electronically if the tangible personal
             1261      property or product transferred electronically is:
             1262          (i) used primarily in the process of:
             1263          (A) (I) manufacturing a semiconductor;
             1264          (II) fabricating a semiconductor; or
             1265          (III) research or development of a:
             1266          (Aa) semiconductor; or
             1267          (Bb) semiconductor manufacturing process; or



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             1268
         (B) maintaining an environment suitable for a semiconductor; or
             1269          (ii) consumed primarily in the process of:
             1270          (A) (I) manufacturing a semiconductor;
             1271          (II) fabricating a semiconductor; or
             1272          (III) research or development of a:
             1273          (Aa) semiconductor; or
             1274          (Bb) semiconductor manufacturing process; or
             1275          (B) maintaining an environment suitable for a semiconductor.
             1276          (b) "Semiconductor fabricating, processing, research, or development materials"
             1277      includes:
             1278          (i) parts used in the repairs or renovations of tangible personal property or a product
             1279      transferred electronically described in Subsection (101)(a); or
             1280          (ii) a chemical, catalyst, or other material used to:
             1281          (A) produce or induce in a semiconductor a:
             1282          (I) chemical change; or
             1283          (II) physical change;
             1284          (B) remove impurities from a semiconductor; or
             1285          (C) improve the marketable condition of a semiconductor.
             1286          (102) "Senior citizen center" means a facility having the primary purpose of providing
             1287      services to the aged as defined in Section 62A-3-101 .
             1288          (103) "Simplified electronic return" means the electronic return:
             1289          (a) described in Section 318(C) of the agreement; and
             1290          (b) approved by the governing board of the agreement.
             1291          (104) "Solar energy" means the sun used as the sole source of energy for producing
             1292      electricity.
             1293          (105) (a) "Sports or recreational equipment" means an item:
             1294          (i) designed for human use; and
             1295          (ii) that is:
             1296          (A) worn in conjunction with:
             1297          (I) an athletic activity; or
             1298          (II) a recreational activity; and



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             1299
         (B) not suitable for general use.
             1300          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1301      commission shall make rules:
             1302          (i) listing the items that constitute "sports or recreational equipment"; and
             1303          (ii) that are consistent with the list of items that constitute "sports or recreational
             1304      equipment" under the agreement.
             1305          (106) "State" means the state of Utah, its departments, and agencies.
             1306          (107) "Storage" means any keeping or retention of tangible personal property or any
             1307      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1308      sale in the regular course of business.
             1309          (108) (a) Except as provided in Subsection (108) (d) or (e), "tangible personal
             1310      property" means personal property that:
             1311          (i) may be:
             1312          (A) seen;
             1313          (B) weighed;
             1314          (C) measured;
             1315          (D) felt; or
             1316          (E) touched; or
             1317          (ii) is in any manner perceptible to the senses.
             1318          (b) "Tangible personal property" includes:
             1319          (i) electricity;
             1320          (ii) water;
             1321          (iii) gas;
             1322          (iv) steam; or
             1323          (v) prewritten computer software.
             1324          (c) "Tangible personal property" includes the following regardless of whether the item
             1325      is attached to real property:
             1326          (i) a dishwasher;
             1327          (ii) a dryer;
             1328          (iii) a freezer;
             1329          (iv) a microwave;



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             1330
         (v) a refrigerator;
             1331          (vi) a stove;
             1332          (vii) a washer; or
             1333          (viii) an item similar to Subsections (108)(c)(i) through (vii) as determined by the
             1334      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1335      Rulemaking Act.
             1336          (d) "Tangible personal property" does not include a product that is transferred
             1337      electronically.
             1338          (e) "Tangible personal property" does not include the following if attached to real
             1339      property, regardless of whether the attachment to real property is only through a line that
             1340      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1341      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1342      Rulemaking Act:
             1343          (i) a hot water heater;
             1344          (ii) a water filtration system; or
             1345          (iii) a water softener system.
             1346          (109) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1347      and require further processing other than mechanical blending before becoming finished
             1348      petroleum products.
             1349          (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1350      software" means an item listed in Subsection (110)(b) if that item is purchased or leased
             1351      primarily to enable or facilitate one or more of the following to function:
             1352          (i) telecommunications switching or routing equipment, machinery, or software; or
             1353          (ii) telecommunications transmission equipment, machinery, or software.
             1354          (b) The following apply to Subsection (110)(a):
             1355          (i) a pole;
             1356          (ii) software;
             1357          (iii) a supplementary power supply;
             1358          (iv) temperature or environmental equipment or machinery;
             1359          (v) test equipment;
             1360          (vi) a tower; or



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             1361
         (vii) equipment, machinery, or software that functions similarly to an item listed in
             1362      Subsections (110)(b)(i) through (vi) as determined by the commission by rule made in
             1363      accordance with Subsection (110)(c).
             1364          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1365      commission may by rule define what constitutes equipment, machinery, or software that
             1366      functions similarly to an item listed in Subsections (110)(b)(i) through (vi).
             1367          (111) "Telecommunications equipment, machinery, or software required for 911
             1368      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1369      Sec. 20.18.
             1370          (112) "Telecommunications maintenance or repair equipment, machinery, or software"
             1371      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1372      one or more of the following, regardless of whether the equipment, machinery, or software is
             1373      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1374      following:
             1375          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1376          (b) telecommunications switching or routing equipment, machinery, or software; or
             1377          (c) telecommunications transmission equipment, machinery, or software.
             1378          (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1379      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1380      among or between points.
             1381          (b) "Telecommunications service" includes:
             1382          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1383      processing application is used to act:
             1384          (A) on the code, form, or protocol of the content;
             1385          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1386          (C) regardless of whether the service:
             1387          (I) is referred to as voice over Internet protocol service; or
             1388          (II) is classified by the Federal Communications Commission as enhanced or value
             1389      added;
             1390          (ii) an 800 service;
             1391          (iii) a 900 service;



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             1392
         (iv) a fixed wireless service;
             1393          (v) a mobile wireless service;
             1394          (vi) a postpaid calling service;
             1395          (vii) a prepaid calling service;
             1396          (viii) a prepaid wireless calling service; or
             1397          (ix) a private communications service.
             1398          (c) "Telecommunications service" does not include:
             1399          (i) advertising, including directory advertising;
             1400          (ii) an ancillary service;
             1401          (iii) a billing and collection service provided to a third party;
             1402          (iv) a data processing and information service if:
             1403          (A) the data processing and information service allows data to be:
             1404          (I) (Aa) acquired;
             1405          (Bb) generated;
             1406          (Cc) processed;
             1407          (Dd) retrieved; or
             1408          (Ee) stored; and
             1409          (II) delivered by an electronic transmission to a purchaser; and
             1410          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1411      or information;
             1412          (v) installation or maintenance of the following on a customer's premises:
             1413          (A) equipment; or
             1414          (B) wiring;
             1415          (vi) Internet access service;
             1416          (vii) a paging service;
             1417          (viii) a product transferred electronically, including:
             1418          (A) music;
             1419          (B) reading material;
             1420          (C) a ring tone;
             1421          (D) software; or
             1422          (E) video;



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             1423
         (ix) a radio and television audio and video programming service:
             1424          (A) regardless of the medium; and
             1425          (B) including:
             1426          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1427      programming service by a programming service provider;
             1428          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1429          (III) audio and video programming services delivered by a commercial mobile radio
             1430      service provider as defined in 47 C.F.R. Sec. 20.3;
             1431          (x) a value-added nonvoice data service; or
             1432          (xi) tangible personal property.
             1433          (114) (a) "Telecommunications service provider" means a person that:
             1434          (i) owns, controls, operates, or manages a telecommunications service; and
             1435          (ii) engages in an activity described in Subsection (114)(a)(i) for the shared use with or
             1436      resale to any person of the telecommunications service.
             1437          (b) A person described in Subsection (114)(a) is a telecommunications service provider
             1438      whether or not the Public Service Commission of Utah regulates:
             1439          (i) that person; or
             1440          (ii) the telecommunications service that the person owns, controls, operates, or
             1441      manages.
             1442          (115) (a) "Telecommunications switching or routing equipment, machinery, or
             1443      software" means an item listed in Subsection (115)(b) if that item is purchased or leased
             1444      primarily for switching or routing:
             1445          (i) an ancillary service;
             1446          (ii) data communications;
             1447          (iii) voice communications; or
             1448          (iv) telecommunications service.
             1449          (b) The following apply to Subsection (115)(a):
             1450          (i) a bridge;
             1451          (ii) a computer;
             1452          (iii) a cross connect;
             1453          (iv) a modem;



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



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             1485
         (xiii) an output device;
             1486          (xiv) a pedestal;
             1487          (xv) a power converter;
             1488          (xvi) a power supply;
             1489          (xvii) a radio channel;
             1490          (xviii) a radio receiver;
             1491          (xix) a radio transmitter;
             1492          (xx) a repeater;
             1493          (xxi) software;
             1494          (xxii) a terminal;
             1495          (xxiii) a timing unit;
             1496          (xxiv) a transformer;
             1497          (xxv) a wire; or
             1498          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1499      Subsections (116)(b)(i) through (xxv) as determined by the commission by rule made in
             1500      accordance with Subsection (116)(c).
             1501          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1502      commission may by rule define what constitutes equipment, machinery, or software that
             1503      functions similarly to an item listed in Subsections (116)(b)(i) through (xxv).
             1504          (117) "Tobacco" means:
             1505          (a) a cigarette;
             1506          (b) a cigar;
             1507          (c) chewing tobacco;
             1508          (d) pipe tobacco; or
             1509          (e) any other item that contains tobacco.
             1510          (118) "Unassisted amusement device" means an amusement device, skill device, or
             1511      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1512      the amusement device, skill device, or ride device.
             1513          (119) (a) "Use" means the exercise of any right or power over tangible personal
             1514      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1515      incident to the ownership or the leasing of that tangible personal property, product transferred



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             1516
     electronically, or service.
             1517          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1518      property, a product transferred electronically, or a service in the regular course of business and
             1519      held for resale.
             1520          (120) "Value-added nonvoice data service" means a service:
             1521          (a) that otherwise meets the definition of a telecommunications service except that a
             1522      computer processing application is used to act primarily for a purpose other than conveyance,
             1523      routing, or transmission; and
             1524          (b) with respect to which a computer processing application is used to act on data or
             1525      information:
             1526          (i) code;
             1527          (ii) content;
             1528          (iii) form; or
             1529          (iv) protocol.
             1530          (121) (a) Subject to Subsection (121)(b), "vehicle" means the following that are
             1531      required to be titled, registered, or titled and registered:
             1532          (i) an aircraft as defined in Section 72-10-102 ;
             1533          (ii) a vehicle as defined in Section 41-1a-102 ;
             1534          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1535          (iv) a vessel as defined in Section 41-1a-102 .
             1536          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1537          (i) a vehicle described in Subsection (121)(a); or
             1538          (ii) (A) a locomotive;
             1539          (B) a freight car;
             1540          (C) railroad work equipment; or
             1541          (D) other railroad rolling stock.
             1542          (122) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1543      exchanging a vehicle as defined in Subsection (121).
             1544          (123) (a) "Vertical service" means an ancillary service that:
             1545          (i) is offered in connection with one or more telecommunications services; and
             1546          (ii) offers an advanced calling feature that allows a customer to:



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             1547
         (A) identify a caller; and
             1548          (B) manage multiple calls and call connections.
             1549          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1550      conference bridging service.
             1551          (124) (a) "Voice mail service" means an ancillary service that enables a customer to
             1552      receive, send, or store a recorded message.
             1553          (b) "Voice mail service" does not include a vertical service that a customer is required
             1554      to have in order to utilize a voice mail service.
             1555          (125) (a) Except as provided in Subsection (125)(b), "waste energy facility" means a
             1556      facility that generates electricity:
             1557          (i) using as the primary source of energy waste materials that would be placed in a
             1558      landfill or refuse pit if it were not used to generate electricity, including:
             1559          (A) tires;
             1560          (B) waste coal; or
             1561          (C) oil shale; and
             1562          (ii) in amounts greater than actually required for the operation of the facility.
             1563          (b) "Waste energy facility" does not include a facility that incinerates:
             1564          (i) municipal solid waste;
             1565          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1566          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1567          (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1568          (127) "Wind energy" means wind used as the sole source of energy to produce
             1569      electricity.
             1570          (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1571      location by the United States Postal Service.
             1572          Section 5. Section 59-12-211 is amended to read:
             1573           59-12-211. Definitions -- Location of certain transactions -- Reports to
             1574      commission -- Direct payment provision for a seller making certain purchases --
             1575      Exceptions.
             1576          (1) As used in this section:
             1577          (a) (i) "Receipt" and "receive" mean:



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             1578
         (A) taking possession of tangible personal property;
             1579          (B) making first use of a service; or
             1580          (C) for a product transferred electronically, the earlier of:
             1581          (I) taking possession of the product transferred electronically; or
             1582          (II) making first use of the product transferred electronically.
             1583          (ii) "Receipt" and "receive" do not include possession by a shipping company on behalf
             1584      of a purchaser.
             1585          (b) "Transportation equipment" means:
             1586          (i) a locomotive or rail car that is used to carry a person or property in interstate
             1587      commerce;
             1588          (ii) a truck or truck-tractor:
             1589          (A) with a gross vehicle weight rating of 10,001 pounds or more;
             1590          (B) registered under Section 41-1a-301 ; and
             1591          (C) operated under the authority of a carrier authorized and certificated:
             1592          (I) by the United States Department of Transportation or another federal authority; and
             1593          (II) to engage in carrying a person or property in interstate commerce;
             1594          (iii) a trailer, semitrailer, or passenger bus that is:
             1595          (A) registered under Section 41-1a-301 ; and
             1596          (B) operated under the authority of a carrier authorized and certificated:
             1597          (I) by the United States Department of Transportation or another federal authority; and
             1598          (II) to engage in carrying a person or property in interstate commerce;
             1599          (iv) an aircraft that is operated by an air carrier authorized and certificated:
             1600          (A) by the United States Department of Transportation or another federal or foreign
             1601      authority; and
             1602          (B) to engage in carrying a person or property in interstate commerce; or
             1603          (v) a container designed for use on, or a component part attached or secured on, an
             1604      item of equipment listed in[,] Subsections (1)(b)(i) through (iv).
             1605          (2) Except as provided in Subsections (8) and (13), if tangible personal property, a
             1606      product transferred electronically, or a service that is subject to taxation under this chapter is
             1607      received by a purchaser at a business location of a seller, the location of the transaction is the
             1608      business location of the seller.



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             1609
         (3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
             1610      and (13), if tangible personal property, a product transferred electronically, or a service that is
             1611      subject to taxation under this chapter is not received by a purchaser at a business location of a
             1612      seller, the location of the transaction is the location where the purchaser takes receipt of the
             1613      tangible personal property or service.
             1614          (4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
             1615      and (13), if Subsection (2) or (3) does not apply, the location of the transaction is the location
             1616      indicated by an address for or other information on the purchaser if:
             1617          (a) the address or other information is available from the seller's business records; and
             1618          (b) use of the address or other information from the seller's records does not constitute
             1619      bad faith.
             1620          (5) (a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
             1621      (11), and (13), if Subsection (2), (3), or (4) does not apply, the location of the transaction is the
             1622      location indicated by an address for the purchaser if:
             1623          (i) the address is obtained during the consummation of the transaction; and
             1624          (ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.
             1625          (b) An address used under Subsection (5)(a) includes the address of a purchaser's
             1626      payment instrument if no other address is available.
             1627          (6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),
             1628      and (13), if Subsection (2), (3), (4), or (5) does not apply or if a seller does not have sufficient
             1629      information to apply Subsection (2), (3), (4), or (5), the location of the transaction is the
             1630      location indicated by the address from which:
             1631          (a) except as provided in Subsection (6)(b), for tangible personal property that is
             1632      subject to taxation under this chapter, the tangible personal property is shipped;
             1633          (b) for computer software delivered electronically or for a product transferred
             1634      electronically that is subject to taxation under this chapter, the computer software or product
             1635      transferred electronically is first available for transmission by the seller; or
             1636          (c) for a service that is subject to taxation under this chapter, the service is provided.
             1637          (7) (a) For purposes of this Subsection (7), "shared ZIP Code" means a nine-digit ZIP
             1638      Code that is located within two or more local taxing jurisdictions.
             1639          (b) If the location of a transaction determined under Subsections (3) through (6) is in a



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             1640
     shared ZIP Code, the location of the transaction is:
             1641          (i) if there is only one local taxing jurisdiction that imposes the lowest agreement
             1642      combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the lowest
             1643      agreement combined tax rate; or
             1644          (ii) if two or more local taxing jurisdictions impose the lowest agreement combined tax
             1645      rate for the shared ZIP Code, the local taxing jurisdiction that:
             1646          (A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and
             1647          (B) has located within the local taxing jurisdiction the largest number of street
             1648      addresses within the shared ZIP Code.
             1649          (c) [For] Notwithstanding any provision under this chapter authorizing or requiring the
             1650      imposition of a sales and use tax, for purposes of Subsection (7)(b), a seller shall collect a sales
             1651      and use tax imposed under this chapter at the lowest agreement combined tax rate imposed
             1652      within the local taxing jurisdiction in which the transaction is located under Subsection (7)(b)
             1653      [notwithstanding:].
             1654          [(i) Section 59-12-204 ;]
             1655          [(ii) Section 59-12-401 ;]
             1656          [(iii) Section 59-12-402 ;]
             1657          [(iv) Section 59-12-501 ;]
             1658          [(v) Section 59-12-502 ;]
             1659          [(vi) Section 59-12-703 ;]
             1660          [(vii) Section 59-12-802 ;]
             1661          [(viii) Section 59-12-804 ;]
             1662          [(ix) Section 59-12-1001 ;]
             1663          [(x) Section 59-12-1102 ;]
             1664          [(xi) Section 59-12-1302 ;]
             1665          [(xii) Section 59-12-1402 ;]
             1666          [(xiii) Section 59-12-1503 ;]
             1667          [(xiv) Section 59-12-1703 ; or]
             1668          [(xv) Section 59-12-1802 .]
             1669          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1670      commission may make rules:



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             1671
         (i) providing for the circumstances under which a seller has exercised due diligence in
             1672      determining the nine-digit ZIP Code for an address; or
             1673          (ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction
             1674      within which a transaction is located if a seller is unable to determine the local taxing
             1675      jurisdiction within which the transaction is located under Subsection (7)(b).
             1676          (8) The location of a transaction made with a direct payment permit described in
             1677      Section 59-12-107.1 is the location where receipt of the tangible personal property, product, or
             1678      service by the purchaser occurs.
             1679          (9) The location of a purchase of direct mail is the location described in Subsection (6),
             1680      if the purchaser of the direct mail:
             1681          (a) has not been issued a direct payment permit under Section 59-12-107.1 ; and
             1682          (b) does not provide the seller the form or information described in Subsection
             1683      59-12-123 (1).
             1684          (10) (a) Except as provided in Subsection (10)(b), the location of a transaction
             1685      determined under Subsections (3) through (6), (8), or (9), is the local taxing jurisdiction within
             1686      which:
             1687          (i) the nine-digit ZIP Code assigned to the location determined under Subsections (3)
             1688      through (6), (8), or (9) is located; or
             1689          (ii) the five-digit ZIP Code assigned to the location determined under Subsections (3)
             1690      through (6), (8), or (9) is located if:
             1691          (A) a nine-digit ZIP Code is not available for the location determined under
             1692      Subsections (3) through (6), (8), or (9); or
             1693          (B) after exercising due diligence, a seller or certified service provider is unable to
             1694      determine a nine-digit ZIP Code for the location determined under Subsections (3) through (6),
             1695      (8), or (9).
             1696          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1697      commission may make rules for determining the local taxing jurisdiction within which a
             1698      transaction is located if a seller or certified service provider is unable to determine the local
             1699      taxing jurisdiction within which the transaction is located under Subsection (10)(a).
             1700          (11) (a) As used in this Subsection (11), "florist delivery transaction" means a
             1701      transaction commenced by a florist that transmits an order:



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             1702
         (i) by:
             1703          (A) telegraph;
             1704          (B) telephone; or
             1705          (C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
             1706          (ii) for delivery to another place:
             1707          (A) in this state; or
             1708          (B) outside this state.
             1709          (b) Notwithstanding Subsections (3) through (6), beginning on January 1, 2009, and
             1710      ending on December 31, 2009, the location of a florist delivery transaction is the business
             1711      location of the florist that commences the florist delivery transaction.
             1712          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1713      commission may by rule:
             1714          (i) define:
             1715          (A) "business location"; and
             1716          (B) "florist";
             1717          (ii) define what constitutes a means of communication similar to Subsection
             1718      (11)(a)(i)(A) or (B); and
             1719          (iii) provide procedures for determining when a transaction is commenced.
             1720          (12) (a) A tax collected under this chapter shall be reported to the commission on a
             1721      form that identifies the location of each transaction that occurs during the return filing period.
             1722          (b) The form described in Subsection (12)(a) shall be filed with the commission as
             1723      required under this chapter.
             1724          (13) This section does not apply to:
             1725          (a) amounts charged by a seller for:
             1726          (i) telecommunications service; or
             1727          (ii) the retail sale or transfer of:
             1728          (A) a motor vehicle other than a motor vehicle that is transportation equipment;
             1729          (B) an aircraft other than an aircraft that is transportation equipment;
             1730          (C) a watercraft;
             1731          (D) a modular home;
             1732          (E) a manufactured home; or



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             1733
         (F) a mobile home; or
             1734          (iii) except as provided in Section 59-12-214 , the lease or rental of tangible personal
             1735      property other than tangible personal property that is transportation equipment;
             1736          (b) a tax paid under this chapter:
             1737          (i) by a seller; and
             1738          (ii) for the seller's purchases; or
             1739          (c) a retail sale of tangible personal property or a product transferred electronically if:
             1740          (i) the seller receives the order for the tangible personal property or product transferred
             1741      electronically in this state;
             1742          (ii) receipt of the tangible personal property or product transferred electronically by the
             1743      purchaser or the purchaser's donee occurs in this state;
             1744          (iii) the location where receipt of the tangible personal property or product transferred
             1745      electronically by the purchaser occurs is determined in accordance with Subsections (3)
             1746      through (5); and
             1747          (iv) at the time the seller receives the order, the record keeping system that the seller
             1748      uses to calculate the proper amount of tax imposed under this chapter captures the location
             1749      where the order is received.
             1750          Section 6. Section 59-12-602 is amended to read:
             1751           59-12-602. Definitions.
             1752          As used in this part:
             1753          (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
             1754      significance, as defined by the Transportation Commission by rule made in accordance with
             1755      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1756          (b) "Airport facility" includes:
             1757          (i) an appurtenance to an airport, including a fixed guideway [as defined in Section
             1758      59-12-1702 ] that provides transportation service to or from the airport;
             1759          (ii) a control tower, including a radar system;
             1760          (iii) a public area of an airport; or
             1761          (iv) a terminal facility.
             1762          (2) "Convention facility" means any publicly owned or operated convention center,
             1763      sports arena, or other facility at which conventions, conferences, and other gatherings are held



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             1764
     and whose primary business or function is to host such conventions, conferences, and other
             1765      gatherings.
             1766          (3) "Cultural facility" means any publicly owned or operated museum, theater, art
             1767      center, music hall, or other cultural or arts facility.
             1768          (4) "Recreation facility" or "tourist facility" means any publicly owned or operated
             1769      park, campground, marina, dock, golf course, water park, historic park, monument,
             1770      planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
             1771          (5) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda fountain, or
             1772      fast-food service where food is prepared for immediate consumption.
             1773          (b) "Restaurant" does not include:
             1774          (i) any retail establishment whose primary business or function is the sale of fuel or
             1775      food items for off-premise, but not immediate, consumption; and
             1776          (ii) a theater that sells food items, but not a dinner theater.
             1777          Section 7. Section 59-12-2003 is amended to read:
             1778           59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
             1779      transit districts.
             1780          (1) Subject to the other provisions of this section and except as provided in Subsection
             1781      (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part on the
             1782      transactions described in Subsection 59-12-103 (1) within a city, town, or the unincorporated
             1783      area of a county of the first or second class if, on January 1, 2008, there is a public transit
             1784      district within any portion of that county of the first or second class.
             1785          (2) The state may not impose a tax under this part within a county of the first or second
             1786      class if within all of the cities, towns, and the unincorporated area of the county of the first or
             1787      second class there is imposed a sales and use tax of:
             1788          (a) .30% under Section [ 59-12-501 ] 59-12-2213 ;
             1789          (b) .30% under Section [ 59-12-1001 ] 59-12-2215 ; or
             1790          (c) .30% under Section [ 59-12-1503 ] 59-12-2216 .
             1791          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
             1792      rate imposed within a city, town, or the unincorporated area of a county of the first or second
             1793      class is a percentage equal to the difference between:
             1794          (i) .30%; and



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             1795
         (ii) (A) for a city within the county of the first or second class, the highest tax rate
             1796      imposed within that city under:
             1797          (I) Section [ 59-12-501 ] 59-12-2213 ;
             1798          (II) Section [ 59-12-1001 ] 59-12-2215 ; or
             1799          (III) Section [ 59-12-1503 ] 59-12-2216 ;
             1800          (B) for a town within the county of the first or second class, the highest tax rate
             1801      imposed within that town under:
             1802          (I) Section [ 59-12-501 ] 59-12-2213 ;
             1803          (II) Section [ 59-12-1001 ] 59-12-2215 ; or
             1804          (III) Section [ 59-12-1503 ] 59-12-2216 ; or
             1805          (C) for the unincorporated area of the county of the first or second class, the highest tax
             1806      rate imposed within that unincorporated area under:
             1807          (I) Section [ 59-12-501 ] 59-12-2213 ;
             1808          (II) Section [ 59-12-1001 ] 59-12-2215 ; or
             1809          (III) Section [ 59-12-1503 ] 59-12-2216 .
             1810          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
             1811      a county of the first or second class, the highest tax rate imposed under Section [ 59-12-501 ]
             1812      59-12-2213 , [ 59-12-1001 ] 59-12-2215 , or [ 59-12-1503 ] 59-12-2216 within that city, town, or
             1813      unincorporated area of the county of the first or second class is .30%, the state may not impose
             1814      a tax under this part within that city, town, or unincorporated area.
             1815          (4) (a) The state may not impose a tax under this part on:
             1816          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1817      are exempt from taxation under Section 59-12-104 ; or
             1818          (ii) except as provided in Subsection (4)(b), amounts paid or charged for food and food
             1819      ingredients.
             1820          (b) The state shall impose a tax under this part on amounts paid or charged for food
             1821      and food ingredients if the food and food ingredients are sold as part of a bundled transaction
             1822      attributable to food and ingredients and tangible personal property other than food and food
             1823      ingredients.
             1824          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
             1825      accordance with Sections 59-12-211 through 59-12-215 .



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             1826
         (6) The commission shall distribute the revenues the state collects from the sales and
             1827      use tax under this part, after subtracting amounts a seller retains in accordance with Section
             1828      59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
             1829          (a) within which the state imposes a tax under this part; and
             1830          (b) in proportion to the revenues collected from the sales and use tax under this part
             1831      within each city, town, and unincorporated area within which the state imposes a tax under this
             1832      part.
             1833          Section 8. Section 59-12-2201 is enacted to read:
             1834     
Part 22. Local Option Sales and Use Taxes for Transportation Act

             1835          59-12-2201. Title.
             1836          This part is known as the "Local Option Sales and Use Taxes for Transportation Act."
             1837          Section 9. Section 59-12-2202 is enacted to read:
             1838          59-12-2202. Definitions.
             1839          As used in this part:
             1840          (1) "Airline" is as defined in Section 59-2-102 .
             1841          (2) "Airport facility" is as defined in Section 59-12-602 .
             1842          (3) "Airport of regional significance" means an airport identified by the Federal
             1843      Aviation Administration in the most current National Plan of Integrated Airport Systems or an
             1844      update to the National Plan of Integrated Airport Systems.
             1845          (4) "Annexation" means an annexation to:
             1846          (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or
             1847          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             1848          (5) "Annexing area" means an area that is annexed into a county, city, or town.
             1849          (6) "Council of governments" is as defined in Section 72-2-117.5 .
             1850          (7) "Fixed guideway" is as defined in Section 59-12-102 .
             1851          (8) "Major collector highway" is as defined in Section 72-4-102.5 .
             1852          (9) "Metropolitan planning organization" is as defined in Section 72-1-208.5 .
             1853          (10) "Minor arterial highway" is as defined in Section 72-4-102.5 .
             1854          (11) "Minor collector road" is as defined in Section 72-4-102.5 .
             1855          (12) "Principal arterial highway" is as defined in Section 72-4-102.5 .
             1856          (13) "Regionally significant transportation facility" means:



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             1857
         (a) in a county of the first or second class:
             1858          (i) a principal arterial highway;
             1859          (ii) a minor arterial highway;
             1860          (iii) a fixed guideway that:
             1861          (A) extends across two or more cities or unincorporated areas; or
             1862          (B) is an extension to an existing fixed guideway; or
             1863          (iv) an airport of regional significance; or
             1864          (b) in a county of the third, fourth, fifth, or sixth class:
             1865          (i) a principal arterial highway;
             1866          (ii) a minor arterial highway;
             1867          (iii) a major collector highway;
             1868          (iv) a minor collector road; or
             1869          (v) an airport of regional significance.
             1870          (14) "State highway" means a highway designated as a state highway under Title 72,
             1871      Chapter 4, Designation of State Highways Act.
             1872          (15) (a) Subject to Subsection (15)(b), "system for public transit" has the same
             1873      meaning as "public transit" as defined in Section 17B-2a-802 .
             1874          (b) "System for public transit" includes:
             1875          (i) the following costs related to public transit:
             1876          (A) maintenance costs; or
             1877          (B) operating costs;
             1878          (ii) a fixed guideway;
             1879          (iii) a park and ride facility;
             1880          (iv) a passenger station or passenger terminal;
             1881          (v) a right-of-way for public transit; or
             1882          (vi) the following that serve a public transit facility:
             1883          (A) a maintenance facility;
             1884          (B) a platform;
             1885          (C) a repair facility;
             1886          (D) a roadway;
             1887          (E) a storage facility;



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             1888
         (F) a utility line; or
             1889          (G) a facility or item similar to Subsections (15)(b)(vi)(A) through (F).
             1890          Section 10. Section 59-12-2203 is enacted to read:
             1891          59-12-2203. Limitations on authority to impose a sales and use tax under this
             1892      part.
             1893          (1) As provided in this Subsection (1), one of the following sales and use taxes may be
             1894      imposed within the boundaries of a local taxing jurisdiction:
             1895          (a) a county, city, or town may impose the sales and use tax authorized by Section
             1896      59-12-2213 in accordance with Section 59-12-2213 ; or
             1897          (b) a city or town may impose the sales and use tax authorized by Section 59-12-2215
             1898      in accordance with Section 59-12-2215 .
             1899          (2) As provided in this Subsection (2), one of the following sales and use taxes may be
             1900      imposed within the boundaries of a local taxing jurisdiction:
             1901          (a) a county, city, or town may impose the sales and use tax authorized by Section
             1902      59-12-2214 in accordance with Section 59-12-2214 ; or
             1903          (b) a county may impose the sales and use tax authorized by Section 59-12-2216 in
             1904      accordance with Section 59-12-2216 .
             1905          (3) As provided in this Subsection (3), one of the following sales and use taxes may be
             1906      imposed within the boundaries of a local taxing jurisdiction:
             1907          (a) a county may impose the sales and use tax authorized by Section 59-12-2217 in
             1908      accordance with Section 59-12-2217 ; or
             1909          (b) a county, city, or town may impose the sales and use tax authorized by Section
             1910      59-12-2218 in accordance with Section 59-12-2218 .
             1911          Section 11. Section 59-12-2204 is enacted to read:
             1912          59-12-2204. Transactions that may not be subject to taxation under this part --
             1913      Exception for food and food ingredients sold as part of a bundled transaction.
             1914          (1) A county, city, or town may not impose a sales and use tax under this part on:
             1915          (a) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1916      are exempt from taxation under Section 59-12-104 ; and
             1917          (b) except as provided in Subsection (2), amounts paid or charged for food and food
             1918      ingredients.



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             1919
         (2) A county, city, or town imposing a sales and use tax under this part shall impose
             1920      the sales and use tax on amounts paid or charged for food and food ingredients if the food and
             1921      food ingredients are sold as part of a bundled transaction attributable to food and food
             1922      ingredients and tangible personal property other than food and food ingredients.
             1923          Section 12. Section 59-12-2205 is enacted to read:
             1924          59-12-2205. Determination of the location of a transaction.
             1925          For purposes of this part, the location of a transaction shall be determined in accordance
             1926      with Sections 59-12-211 through 59-12-215 .
             1927          Section 13. Section 59-12-2206 is enacted to read:
             1928          59-12-2206. Administration, collection, and enforcement of a sales and use tax
             1929      under this part -- Transmission of revenues monthly by electronic funds transfer --
             1930      Transfer of revenues to a public transit district.
             1931          (1) Except as provided in Subsection (2), the commission shall administer, collect, and
             1932      enforce a sales and use tax imposed under this part.
             1933          (2) The commission shall administer, collect, and enforce a sales and use tax imposed
             1934      under this part in accordance with:
             1935          (a) the same procedures used to administer, collect, and enforce a tax under:
             1936          (i) Part 1, Tax Collection; or
             1937          (ii) Part 2, Local Sales and Use Tax Act; and
             1938          (b) Chapter 1, General Taxation Policies.
             1939          (3) A sales and use tax under this part is not subject to Subsections 59-12-205 (2)
             1940      through (6).
             1941          (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
             1942      provision of this part, the state treasurer shall transmit revenues collected within a county, city,
             1943      or town from a sales and use tax under this part to the county, city, or town legislative body
             1944      monthly by electronic funds transfer.
             1945          (5) Subject to Section 59-12-2207 , the state treasurer shall transfer revenues collected
             1946      within a county, city, or town from a sales and use tax under this part directly to a public transit
             1947      district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, if the county,
             1948      city, or town legislative body:
             1949          (a) provides written notice to the state treasurer requesting the transfer; and



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             1950
         (b) designates the public transit district to which the county, city, or town legislative
             1951      body requests the state treasurer to transfer the revenues.
             1952          Section 14. Section 59-12-2207 is enacted to read:
             1953          59-12-2207. Commission authority to retain a percentage of revenues collected
             1954      from a sales and use tax under this part -- Deposit of revenues into the Sales and Use Tax
             1955      Administrative Fees Account -- Expenditure of revenues.
             1956          (1) The commission may retain a percentage of revenues collected from a sales and use
             1957      tax under this part of not to exceed the lesser of:
             1958          (a) 1.50%; or
             1959          (b) a percentage of revenues collected from a sales and use tax under this part
             1960      sufficient to cover the cost to the commission of administering this part.
             1961          (2) The commission shall:
             1962          (a) deposit any revenues the commission retains under Subsection (1) into the Sales
             1963      and Use Tax Administrative Fees Account; and
             1964          (b) expend the revenues described in Subsection (2)(a) as provided in Subsection
             1965      59-12-206 (2).
             1966          Section 15. Section 59-12-2208 is enacted to read:
             1967          59-12-2208. Legislative body approval requirements -- Voter approval
             1968      requirements.
             1969          (1) Subject to the other provisions of this section, before imposing a sales and use tax
             1970      under this part, a county, city, or town legislative body shall:
             1971          (a) obtain approval to impose the sales and use tax from a majority of the members of
             1972      the county, city, or town legislative body; and
             1973          (b) submit an opinion question to the county's, city's, or town's registered voters voting
             1974      on the imposition of the sales and use tax so that each registered voter has the opportunity to
             1975      express the registered voter's opinion on whether a sales and use tax should be imposed under
             1976      this section.
             1977          (2) The opinion question required by this section shall state:
             1978          "Shall (insert the name of the county, city, or town), Utah, be authorized to impose a
             1979      (insert the tax rate of the sales and use tax) sales and use tax for (list the purposes for which the
             1980      revenues collected from the sales and use tax shall be expended)?"



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             1981
         (3) (a) Subject to Subsection (3)(b), the election required by this section shall be held:
             1982          (i) at a regular general election conducted in accordance with the procedures and
             1983      requirements of Title 20A, Election Code, governing regular general elections; or
             1984          (ii) at a municipal general election conducted in accordance with the procedures and
             1985      requirements of Section 20A-1-202 .
             1986          (b) (i) Subject to Subsection (3)(b)(ii), the county clerk of the county in which the
             1987      opinion question required by this section will be submitted to registered voters shall, no later
             1988      than 15 days before the date of the election:
             1989          (A) publish a notice:
             1990          (I) once in a newspaper published in that county; and
             1991          (II) as required in Section 45-1-101 ; or
             1992          (B) (I) cause a copy of the notice to be posted in a conspicuous place most likely to
             1993      give notice of the election to the registered voters voting on the imposition of the sales and use
             1994      tax; and
             1995          (II) prepare an affidavit of that posting, showing a copy of the notice and the places
             1996      where the notice was posted.
             1997          (ii) The notice under Subsection (3)(b)(i) shall:
             1998          (A) state that an opinion question will be submitted to the county's, city's, or town's
             1999      registered voters voting on the imposition of a sales and use tax under this section so that each
             2000      registered voter has the opportunity to express the registered voter's opinion on whether a sales
             2001      and use tax should be imposed under this section; and
             2002          (B) list the purposes for which the revenues collected from the sales and use tax shall
             2003      be expended.
             2004          (4) A county, city, or town that submits an opinion question to registered voters under
             2005      this section is subject to Section 20A-11-1203 .
             2006          (5) Subject to Section 59-12-2209 , if a county, city, or town legislative body
             2007      determines that a majority of the county's, city's, or town's registered voters voting on the
             2008      imposition of a sales and use tax under this part have voted in favor of the imposition of the
             2009      sales and use tax in accordance with this section, the county, city, or town legislative body shall
             2010      impose the sales and use tax.
             2011          (6) If, after imposing a sales and use tax under this part, a county, city, or town



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             2012
     legislative body seeks to impose a tax rate for the sales and use tax that exceeds or is less than
             2013      the tax rate stated in the opinion question described in Subsection (2) or repeals the tax rate
             2014      stated in the opinion question described in Subsection (2), the county, city, or town legislative
             2015      body shall:
             2016          (a) obtain approval from a majority of the members of the county, city, or town
             2017      legislative body to impose a tax rate for the sales and use tax that exceeds or is less than the tax
             2018      rate stated in the opinion question described in Subsection (2) or repeals the tax rate stated in
             2019      the opinion question described in Subsection (2); and
             2020          (b) in accordance with the procedures and requirements of this section, submit an
             2021      opinion question to the county's, city's, or town's registered voters voting on the tax rate so that
             2022      each registered voter has the opportunity to express the registered voter's opinion on whether to
             2023      impose a tax rate for the sales and use tax that exceeds or is less than the tax rate stated in the
             2024      opinion question described in Subsection (2) or repeal the tax rate stated in the opinion
             2025      question described in Subsection (2).
             2026          Section 16. Section 59-12-2209 is enacted to read:
             2027          59-12-2209. Enactment, repeal, or change in the rate of a sales and use tax under
             2028      this part -- Annexation -- Notice.
             2029          (1) Except as provided in Subsection (3) or (4), if a county, city, or town enacts or
             2030      repeals a sales and use tax or changes the rate of a sales and use tax under this part, the
             2031      enactment, repeal, or change shall take effect:
             2032          (a) on the first day of a calendar quarter; and
             2033          (b) after a 90-day period beginning on the date the commission receives notice meeting
             2034      the requirements of Subsection (2) from the county, city, or town.
             2035          (2) The notice described in Subsection (1)(b) shall state:
             2036          (a) that the county, city, or town will enact, repeal, or change the rate of a sales and use
             2037      tax under this part;
             2038          (b) the statutory authority for the sales and use tax described in Subsection (2)(a);
             2039          (c) the date the enactment, repeal, or change will take effect; and
             2040          (d) if the county, city, or town enacts the sales and use tax or changes the rate of the
             2041      sales and use tax described in Subsection (2)(a), the rate of the sales and use tax.
             2042          (3) (a) If the billing period for a transaction begins before the effective date of the



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             2043
     enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales
             2044      and use tax or the tax rate increase shall take effect on the first day of the first billing period
             2045      that begins after the effective date of the enactment of the sales and use tax or the tax rate
             2046      increase.
             2047          (b) If the billing period for a transaction begins before the effective date of the repeal of
             2048      a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or
             2049      the tax rate decrease shall take effect on the first day of the last billing period that began before
             2050      the effective date of the repeal of the sales and use tax or the tax rate decrease.
             2051          (4) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
             2052      basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
             2053      the rate of a sales and use tax described in Subsection (1) takes effect:
             2054          (i) on the first day of a calendar quarter; and
             2055          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2056      rate of the sales and use tax under Subsection (1).
             2057          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2058      commission may by rule define the term "catalogue sale."
             2059          (5) Except as provided in Subsection (7) or (8), if an annexation will result in the
             2060      enactment, repeal, or change in the rate of a sales and use tax under this part for an annexing
             2061      area, the enactment, repeal, or change shall take effect:
             2062          (a) on the first day of a calendar quarter; and
             2063          (b) after a 90-day period beginning on the date the commission receives notice meeting
             2064      the requirements of Subsection (6) from the county, city, or town that annexes the annexing
             2065      area.
             2066          (6) The notice described in Subsection (5) shall state:
             2067          (a) that the annexation described in Subsection (5) will result in an enactment, repeal,
             2068      or change in the rate of a sales and use tax under this part for the annexing area;
             2069          (b) the statutory authority for the sales and use tax described in Subsection (6)(a);
             2070          (c) the date the enactment, repeal, or change will take effect; and
             2071          (d) if the annexation will result in the enactment or change in the rate of the sales and
             2072      use tax described in Subsection (6)(a), the rate of the sales and use tax.
             2073          (7) (a) If the billing period for a transaction begins before the effective date of the



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             2074
     enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales
             2075      and use tax or the tax rate increase shall take effect on the first day of the first billing period
             2076      that begins after the effective date of the enactment of the sales and use tax or the tax rate
             2077      increase.
             2078          (b) If the billing period for a transaction begins before the effective date of the repeal of
             2079      a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or
             2080      the tax rate decrease shall take effect on the first day of the last billing period that began before
             2081      the effective date of the repeal of the sales and use tax or the tax rate decrease.
             2082          (8) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
             2083      basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
             2084      the rate of a sales and use tax described in Subsection (6) takes effect:
             2085          (i) on the first day of a calendar quarter; and
             2086          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             2087      rate of the sales and use tax under Subsection (6).
             2088          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2089      commission may by rule define the term "catalogue sale."
             2090          Section 17. Section 59-12-2210 is enacted to read:
             2091          59-12-2210. Seller or certified service provider reliance on commission
             2092      information.
             2093          A seller or certified service provider is not liable for failing to collect a sales and use
             2094      tax at a tax rate imposed under this part if the seller's or certified service provider's failure to
             2095      collect the sales and use tax is as a result of the seller's or certified service provider's reliance
             2096      on incorrect data provided by the commission in a database created by the commission:
             2097          (1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
             2098          (2) indicating the taxability of tangible personal property, a product transferred
             2099      electronically, or a service.
             2100          Section 18. Section 59-12-2211 is enacted to read:
             2101          59-12-2211. Certified service provider or model 2 seller reliance on commission
             2102      certified software.
             2103          (1) Except as provided in Subsection (2) and subject to Subsection (4), a certified
             2104      service provider or model 2 seller is not liable for failing to collect a sales and use tax required



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             2105
     under this part if:
             2106          (a) the certified service provider or model 2 seller relies on software the commission
             2107      certifies; and
             2108          (b) the certified service provider's or model 2 seller's failure to collect a sales and use
             2109      tax required under this part is as a result of the seller's or certified service provider's reliance on
             2110      incorrect data:
             2111          (i) provided by the commission; or
             2112          (ii) in the software the commission certifies.
             2113          (2) The relief from liability described in Subsection (1) does not apply if a certified
             2114      service provider or model 2 seller incorrectly classifies an item or transaction into a product
             2115      category the commission certifies.
             2116          (3) If the taxability of a product category is incorrectly classified in software the
             2117      commission certifies, the commission shall:
             2118          (a) notify a certified service provider or model 2 seller of the incorrect classification of
             2119      the taxability of a product category in software the commission certifies; and
             2120          (b) state in the notice required by Subsection (3)(a) that the certified service provider or
             2121      model 2 seller is liable for failing to collect the correct amount of sales and use tax under this
             2122      part on the incorrectly classified product category if the certified service provider or model 2
             2123      seller fails to correct the taxability of the item or transaction within 10 days after the day on
             2124      which the certified service provider or model 2 seller receives the notice.
             2125          (4) If a certified service provider or model 2 seller fails to correct the taxability of an
             2126      item or transaction within 10 days after the day on which the certified service provider or
             2127      model 2 seller receives the notice described in Subsection (3), the certified service provider or
             2128      model 2 seller is liable for failing to collect the correct amount of tax under this part on the
             2129      item or transaction.
             2130          Section 19. Section 59-12-2212 is enacted to read:
             2131          59-12-2212. Purchaser relief from liability.
             2132          (1) (a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty
             2133      under Section 59-1-401 for failure to pay a sales and use tax due under this part or an
             2134      underpayment if:
             2135          (i) the purchaser's seller or certified service provider relies on incorrect data provided



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             2136
     by the commission:
             2137          (A) on a tax rate;
             2138          (B) on a boundary;
             2139          (C) on a taxing jurisdiction; or
             2140          (D) in the taxability matrix the commission provides in accordance with the agreement;
             2141      or
             2142          (ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in
             2143      accordance with Section 59-12-107.1 , relies on incorrect data provided by the commission:
             2144          (A) on a tax rate;
             2145          (B) on a boundary;
             2146          (C) on a taxing jurisdiction; or
             2147          (D) in the taxability matrix the commission provides in accordance with the agreement.
             2148          (b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under
             2149      Section 59-1-401 for failure to pay a sales and use tax due under this part or an underpayment
             2150      if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance
             2151      on incorrect data provided by the commission is as a result of conduct that is:
             2152          (i) fraudulent;
             2153          (ii) intentional; or
             2154          (iii) willful.
             2155          (2) In addition to the relief from a penalty described in Subsection (1), a purchaser is
             2156      not liable for a tax or interest under Section 59-1-402 for failure to pay a sales and use tax due
             2157      under this part or an underpayment if:
             2158          (a) the purchaser's seller or certified service provider relies on:
             2159          (i) incorrect data provided by the commission:
             2160          (A) on a tax rate;
             2161          (B) on a boundary; or
             2162          (C) on a taxing jurisdiction; or
             2163          (ii) an erroneous classification by the commission:
             2164          (A) in the taxability matrix the commission provides in accordance with the agreement;
             2165      and
             2166          (B) with respect to a term:



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             2167
         (I) in the library of definitions; and
             2168          (II) that is:
             2169          (Aa) listed as taxable or exempt;
             2170          (Bb) included in or excluded from "sales price"; or
             2171          (Cc) included in or excluded from a definition; or
             2172          (b) the purchaser, regardless of whether the purchaser holds a direct payment permit in
             2173      accordance with Section 59-12-107.1 , relies on:
             2174          (i) incorrect data provided by the commission;
             2175          (A) on a tax rate;
             2176          (B) on a boundary; or
             2177          (C) on a taxing jurisdiction; or
             2178          (ii) an erroneous classification by the commission:
             2179          (A) in the taxability matrix the commission provides in accordance with the agreement;
             2180      and
             2181          (B) with respect to a term:
             2182          (I) in the library of definitions; and
             2183          (II) that is:
             2184          (Aa) listed as taxable or exempt;
             2185          (Bb) included in or excluded from "sales price"; or
             2186          (Cc) included in or excluded from a definition.
             2186a      H. Section 20. Section 59-12-2212.1 is enacted to read:
             2186b          59-12-2212.1. Transition provisions.
             2186c          Notwithstanding any other provision of this part, a county, city, or town legislative
             2186d      body is not required to submit an opinion question to the county's, city's, or town's registered
             2186e      voters in accordance with Section 59-12-2208 and is not required to provide notice to the
             2186f      commission in accordance with Section 59-12-2209 if:
             2186g          (1) (a) on June 30, 2010, a county, city, or town imposes a sales and use tax under
             2186h      Section 59-12-501 that is repealed by this bill;
             2186i          (b) on July 1, 2010 the authority for the county, city, or town to impose the sales and
             2186j      use tax described in Subsection (1)(a) is transferred to Section 59-12-2213; and
             2186k          (c) the rate of the sales and use tax described under Subsection (1)(a) and the rate of
             2186l      the sales and use tax the county, city, or town imposes under Section 59-12-2213 are the same;
             2186m          (2) (a) on June 30, 2010, a county, city, or town imposes a sales and use tax under
             2186n      Section 59-12-502 that is repealed by this bill;


            
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2186o
         (b) on July 1, 2010 the authority for the county, city, or town to impose the sales and
             2186p      use tax described in Subsection (2)(a) is transferred to Section 59-12-2214; and
             2186q          (c) the rate of the sales and use tax described under Subsection (2)(a) and the rate of
             2186r      the sales and use tax the county, city, or town imposes under Section 59-12-2214 are the same;
             2186s          (3) (a) on June 30, 2010, a city or town imposes a sales and use tax under
             2186t      Section 59-12-1001 that is repealed by this bill;
             2186u          (b) on July 1, 2010, the authority for the city or town to impose the sales and use tax
             2186v      described in Subsection (3)(a) is transferred to Section 59-12-2215; and
             2186w          (c) the rate of the sales and use tax described under Subsection (3)(a) and the rate of
             2186x      the sales and use tax the city or town imposes under Section 59-12-2215 are the same;
             2186y          (4) (a) on June 30, 2010, a county imposes a sales and use tax under Section 59-12- 1503
             2186z      that is repealed by this bill;
             2186aa          (b) on July 1, 2010, the authority for the county to impose the sales and use tax
             2186ab      described in Subsection (4)(a) is transferred to Section 59-12-2216; and
             2186ac          (c) the rate of the sales and use tax described under Subsection (4)(a) and the rate of
             2186ad      the sales and use tax the county imposes under Section 59-12-2216 are the same;
             2186ae          (5) (a) on June 30, 2010, a county imposes a sales and use tax under Section 59-12- 1703
             2186af      that is repealed by this bill;
             2186ag          (b) on July 1, 2010, the authority for the county to impose the sales and use tax
             2186ah      described in Subsection (5)(a) is transferred to Section 59-12-2217; and
             2186ai          (c) the rate of the sales and use tax described under Subsection (5)(a) and the rate of
             2186aj      the sales and use tax the county imposes under Section 59-12-2217 are the same; and
             2186ak          (6) (a) on June 30, 2010, a county, city, or town imposes a sales and use tax under
             2186al      Section 59-12-1903 that is repealed by this bill;
             2186am          (b) on July 1, 2010, the authority for the county, city, or town to impose the sales and
             2186an      use tax described in Subsection (6)(a) is transferred to Section 59-12-2218; and
             2186ao      (c) the rate of the sales and use tax described under Subsection (6)(a) and the rate of the
             2186ap      sales and use tax the county, city, or town imposes under Section 59-12-2218 are the same. .H
             2187          Section H. [ 20 ] 21 .H . Section 59-12-2213 is enacted to read:
             2188          59-12-2213. County, city, or town option sales and use tax to fund a system for
             2189      public transit -- Base -- Rate.
             2190          Subject to the other provision of this part, a county, city, or town may impose a sales


             2191      and use tax under this section of up to:
             2192          (1) for a county, city, or town other than a county, city, or town described in Subsection


            
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2193
     (2), .25% on the transactions described in Subsection 59-12-103 (1) located within the county,
             2194      city, or town to fund a system for public transit; or
             2195          (2) for a county, city, or town within which a tax is not imposed under Section
             2196      59-12-2216 , .30% on the transactions described in Subsection 59-12-103 (1) located within the
             2197      county, city, or town, to fund a system for public transit.



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             2198
         Section H. [ 21 ] 22 .H . Section 59-12-2214 is enacted to read:
             2199          59-12-2214. County, city, or town option sales and use tax to fund a system for
             2200      public transit, an airport facility, or to be deposited into the County of the First Class
             2201      State Highway Projects Fund -- Base -- Rate.
             2202          (1) Subject to the other provisions of this part, a county, city, or town may impose a
             2203      sales and use tax of .25% on the transactions described in Subsection 59-12-103 (1) located
             2204      within the county, city, or town.
             2205          (2) Subject to Subsection (3), a county, city, or town that imposes a sales and use tax
             2206      under this section shall expend the revenues collected from the sales and use tax:
             2207          (a) to fund a system for public transit;
             2208          (b) to fund a project or service related to an airport facility for the portion of the project
             2209      or service that is performed within the county, city, or town within which the sales and use tax
             2210      is imposed:
             2211          (i) for a county that imposes the sales and use tax, if the airport facility is part of the
             2212      regional transportation plan of the area metropolitan planning organization if a metropolitan
             2213      planning organization exists for the area; or
             2214          (ii) for a city or town that imposes the sales and use tax, if:
             2215          (A) that city or town is located within a county of the second class;
             2216          (B) that city or town owns or operates the airport facility; and
             2217          (C) an airline is headquartered in that city or town; or
             2218          (c) for a combination of Subsections (2)(a) and (b).
             2219          (3) A county of the first class that imposes a sales and use tax under this section shall
             2220      expend the revenues collected from the sales and use tax as follows:
             2221          (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
             2222      a system for public transit; and
             2223          (b) 20% of the revenues collected from the sales and use shall be deposited into the
             2224      County of the First Class State Highway Projects Fund created by Section 72-2-121 .
             2224a      H. (4) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is not
             2224b      required to submit an opinion question to the county's, city's, or town's registered voters in
             2224c      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:
             2224d          (a) the county, city, or town imposes the sales and use tax under this section on or after
             2224e      July 1, 2010, but on or before July 1, 2011;
             2224f          (b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:
             2224g          (i) Section 59-12-2213; or


            
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2224h
         (ii) Section 59-12-2215; and
             2224i          (c) the county, city, or town obtained voter approval to impose the sales and use tax
             2224j      under:
             2224k          (i) Section 59-12-2213; or
             2224l          (ii) Section 59-12-2215. .H
             2225          Section H. [ 22 ] 23 .H . Section 59-12-2215 is enacted to read:
             2226          59-12-2215. City or town option sales and use tax for highways or to fund a
             2227      system for public transit -- Base -- Rate -- Ordinance requirements.
             2228          (1) Subject to the other provisions of this part, a city or town may impose a sales and



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             2229
     use tax of up to .30% on the transactions described in Subsection 59-12-103 (1) located within
             2230      the city or town.
             2231          (2) A city or town imposing a sales and use tax under this section shall expend the
             2232      revenues collected from the sales and use tax:
             2233          (a) for the construction and maintenance of highways under the jurisdiction of the city
             2234      or town imposing the tax;
             2235          (b) to fund a system for public transit; or
             2236          (c) for a combination of Subsections (2)(a) and (b).
             2237          Section H. [ 23 ] 24 .H . Section 59-12-2216 is enacted to read:
             2238          59-12-2216. County option sales and use tax for highways or to fund a system for
             2239      public transit -- Base -- Rate.
             2240          (1) Subject to the other provisions of this part, a county legislative body may impose a
             2241      sales and use tax of up to .30% on the transactions described in Subsection 59-12-103 (1)
             2242      within the county, including the cities and towns within the county.
             2243          (2) Subject to Subsection (3), before obtaining voter approval in accordance with
             2244      Section 59-12-2208 , a county legislative body shall adopt a resolution specifying the
             2245      percentage of revenues the county will receive from the sales and use tax under this section that
             2246      will be allocated to fund one or more of the following:
             2247          (a) a project or service relating to a fixed guideway for the portion of the project or
             2248      service that is performed within the county;
             2249          (b) a project or service relating to a system for public transit, except for a fixed
             2250      guideway, for the portion of the project or service that is performed within the county;
             2251          (c) the following relating to a state highway within the county:
             2252          (i) a project within the county if the project:
             2253          (A) begins on or after the day on which a county legislative body imposes a tax under
             2254      this section; and
             2255          (B) involves an environmental study, an improvement, new construction, or a
             2256      renovation;
             2257          (ii) debt service on a project described in Subsection (2)(c)(i); or
             2258          (iii) bond issuance costs related to a project described in Subsection (2)(c)(i); or
             2259          (d) a project, debt service, or bond issuance cost described in Subsection (2)(c) relating



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             2260
     to a highway that is:
             2261          (i) a principal arterial highway or minor arterial highway;
             2262          (ii) included in a metropolitan planning organization's regional transportation plan; and
             2263          (iii) not a state highway.
             2264          (3) A county legislative body shall in the resolution described in Subsection (2)
             2265      allocate 100% of the revenues the county will receive from the sales and use tax under this
             2266      section for one or more of the purposes described in Subsection (2).
             2267          (4) Notwithstanding Section 59-12-2208 , the opinion question required by Section
             2268      59-12-2208 shall state the allocations the county legislative body makes in accordance with this
             2269      section.
             2270          (5) The revenues collected from a sales and use tax under this section shall be:
             2271          (a) allocated in accordance with the allocations specified in the resolution under
             2272      Subsection (2); and
             2273          (b) expended as provided in this section.
             2274          (6) If a county legislative body allocates revenues collected from a sales and use tax
             2275      under this section for a state highway project described in Subsection (2)(c)(i), before
             2276      beginning the state highway project within the county, the county legislative body shall:
             2277          (a) obtain approval from the Transportation Commission to complete the project; and
             2278          (b) enter into an interlocal agreement established in accordance with Title 11, Chapter
             2279      13, Interlocal Cooperation Act, with the Department of Transportation to complete the project.
             2280          (7) If after a county legislative body imposes a sales and use tax under this section the
             2281      county legislative body seeks to change an allocation specified in the resolution under
             2282      Subsection (2), the county legislative body may change the allocation by:
             2283          (a) adopting a resolution in accordance with Subsection (2) specifying the percentage
             2284      of revenues the county will receive from the sales and use tax under this section that will be
             2285      allocated to fund one or more of the items described in Subsection (2);
             2286          (b) obtaining approval to change the allocation of the sales and use tax by a majority of
             2287      all of the members of the county legislative body; and
             2288          (c) subject to Subsection (8):
             2289          (i) in accordance with Section 59-12-2208 , submitting an opinion question to the
             2290      county's registered voters voting on changing the allocation so that each registered voter has the



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             2291
     opportunity to express the registered voter's opinion on whether the allocation should be
             2292      changed; and
             2293          (ii) in accordance with Section 59-12-2208 , obtaining approval to change the allocation
             2294      from a majority of the county's registered voters voting on changing the allocation.
             2295          (8) Notwithstanding Section 59-12-2208 , the opinion question required by Subsection
             2296      (7)(c)(i) shall state the allocations specified in the resolution adopted in accordance with
             2297      Subsection (7)(a) and approved by the county legislative body in accordance with Subsection
             2298      (7)(b).
             2299          (9) Revenues collected from a sales and use tax under this section that a county
             2300      allocates for a purpose described in Subsection (2)(c) shall be:
             2301          (a) deposited into the H. [ State ] .H Highway Projects Within Counties Fund created by
             2301a      Section
             2302      72-2-121.1 ; and
             2303          (b) expended as provided in Section 72-2-121.1 .
             2303a      H. (10) (a) Notwithstanding Section 59-12-2206 and subject to Subsection (10)(b), revenues
             2303b      collected from a sales and use tax under this section that a county allocates for a purpose
             2303c      described in Subsection (2)(d) shall be transferred to the Department of Transportation if the
             2303d      transfer of the revenues is required under an interlocal agreement:
             2303e          (i) entered into on or before January 1, 2010; and
             2303f          (ii) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
             2303g          (b) The Department of Transportation shall expend the revenues described in
             2303h      Subsection (10)(a) as provided in the interlocal agreement described in Subsection (10)(a). .H
             2304          Section H. [ 24 ] 25 .H . Section 59-12-2217 is enacted to read:
             2305          59-12-2217. County option sales and use tax for transportation -- Base -- Rate --
             2306      Written prioritization process -- Approval by county legislative body.
             2307          (1) Subject to the other provisions of this part, a county legislative body may impose a
             2308      sales and use tax of up to .25% on the transactions described in Subsection 59-12-103 (1)
             2309      within the county, including the cities and towns within the county.
             2310          (2) Subject to Subsections (3) through (8) and Section 59-12-2207 , the revenues
             2311      collected from a sales and use tax under this section may only be expended for:
             2312          (a) a project or service:
             2313          (i) relating to a regionally significant transportation facility for the portion of the
             2314      project or service that is performed within the county;
             2315          (ii) for new capacity or congestion mitigation if the project or service is performed


            
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     within a county:
             2317          (A) of the first or second class; or
             2318          (B) if that county is part of an area metropolitan planning organization; and
             2319          (iii) that is on a priority list:
             2320          (A) created by the county's council of governments in accordance with Subsection (7);
             2321      and



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             2322
         (B) approved by the county legislative body in accordance with Subsection (7);
             2323          (b) corridor preservation for a project or service described in Subsection (2)(a) as
             2324      provided in Subsection (8); or
             2325          (c) debt service or bond issuance costs related to a project or service described in
             2326      Subsection (2)(a)(i) or (ii).
             2327          (3) If a project or service described in Subsection (2) is for:
             2328          (a) a principal arterial highway or a minor arterial highway in a county of the first or
             2329      second class, that project or service shall be part of the:
             2330          (i) county and municipal master plan; and
             2331          (ii) (A) statewide long-range plan; or
             2332          (B) regional transportation plan of the area metropolitan planning organization if a
             2333      metropolitan planning organization exists for the area; or
             2334          (b) a fixed guideway or an airport, that project or service shall be part of the regional
             2335      transportation plan of the area metropolitan planning organization if a metropolitan planning
             2336      organization exists for the area.
             2337          (4) In a county of the first or second class, a regionally significant transportation
             2338      facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
             2339      designation on a Statewide Transportation Improvement Program and Transportation
             2340      Improvement Program if the project or service described in Subsection (2)(a)(i) is:
             2341          (a) a principal arterial highway;
             2342          (b) a minor arterial highway; or
             2343          (c) a major collector highway in a rural area.
             2344          (5) Of the revenues collected from a sales and use tax imposed under this section
             2345      within a county of the first or second class, 25% or more shall be expended for the purpose
             2346      described in Subsection (2)(b).
             2347          (6) (a) As provided in this Subsection (6), a council of governments shall:
             2348          (i) develop a written prioritization process for the prioritization of projects to be funded
             2349      by revenues collected from a sales and use tax under this section;
             2350          (ii) create a priority list of regionally significant transportation facility projects or
             2351      services described in Subsection (2)(a)(i) in accordance with Subsection (7); and
             2352          (iii) present the priority list to the county legislative body for approval in accordance



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             2353
     with Subsection (7).
             2354          (b) The written prioritization process described in Subsection (6)(a)(i) shall include:
             2355          (i) a definition of the type of projects to which the written prioritization process
             2356      applies;
             2357          (ii) subject to Subsection (6)(c), the specification of a weighted criteria system that the
             2358      council of governments will use to rank proposed projects and how that weighted criteria
             2359      system will be used to determine which proposed projects will be prioritized;
             2360          (iii) the specification of data that is necessary to apply the weighted criteria system;
             2361          (iv) application procedures for a project to be considered for prioritization by the
             2362      council of governments; and
             2363          (v) any other provision the council of governments considers appropriate.
             2364          (c) The weighted criteria system described in Subsection (6)(b)(ii) shall include the
             2365      following:
             2366          (i) the cost effectiveness of a project;
             2367          (ii) the degree to which a project will mitigate regional congestion;
             2368          (iii) the compliance requirements of applicable federal laws or regulations;
             2369          (iv) the economic impact of a project;
             2370          (v) the degree to which a project will require tax revenues to fund maintenance and
             2371      operation expenses; and
             2372          (vi) any other provision the council of governments considers appropriate.
             2373          (d) A council of governments of a county of the first or second class shall submit the
             2374      written prioritization process described in Subsection (6)(a)(i) to the Executive Appropriations
             2375      Committee for approval prior to taking final action on:
             2376          (i) the written prioritization process; or
             2377          (ii) any proposed amendment to the written prioritization process.
             2378          (7) (a) A council of governments shall use the weighted criteria system adopted in the
             2379      written prioritization process developed in accordance with Subsection (6) to create a priority
             2380      list of regionally significant transportation facility projects or services for which revenues
             2381      collected from a sales and use tax under this section may be expended.
             2382          (b) Before a council of governments may finalize a priority list or the funding level of a
             2383      project, the council of governments shall conduct a public meeting on:



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             2384
         (i) the written prioritization process; and
             2385          (ii) the merits of the projects that are prioritized as part of the written prioritization
             2386      process.
             2387          (c) A council of governments shall make the weighted criteria system ranking for each
             2388      project prioritized as part of the written prioritization process publicly available before the
             2389      public meeting required by Subsection (7)(b) is held.
             2390          (d) If a council of governments prioritizes a project over another project with a higher
             2391      rank under the weighted criteria system, the council of governments shall:
             2392          (i) identify the reasons for prioritizing the project over another project with a higher
             2393      rank under the weighted criteria system at the public meeting required by Subsection (7)(b);
             2394      and
             2395          (ii) make the reasons described in Subsection (7)(d)(i) publicly available.
             2396          (e) Subject to Subsections (7)(f) and (g), after a council of governments finalizes a
             2397      priority list in accordance with this Subsection (7), the council of governments shall:
             2398          (i) submit the priority list to the county legislative body for approval; and
             2399          (ii) obtain approval of the priority list from a majority of the members of the county
             2400      legislative body.
             2401          (f) A council of governments may only submit one priority list per calendar year to the
             2402      county legislative body.
             2403          (g) A county legislative body may only consider and approve one priority list submitted
             2404      under Subsection (7)(e) per calendar year.
             2405          (8) (a) Except as provided in Subsection (8)(b), revenues collected from a sales and use
             2406      tax under this section that a county allocates for a purpose described in Subsection (2)(b) shall
             2407      be:
             2408          (i) deposited in or transferred to the Local Transportation Corridor Preservation Fund
             2409      created by Section 72-2-117.5 ; and
             2410          (ii) expended as provided in Section 72-2-117.5 .
             2411          (b) In a county of the first class, revenues collected from a sales and use tax under this
             2412      section that a county allocates for a purpose described in Subsection (2)(b) shall be:
             2413          (i) deposited in or transferred to the County of the First Class State Highway Projects
             2414      Fund created by Section 72-2-121 ; and



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             2415
         (ii) expended as provided in Section 72-2-121 .
             2416          Section H. [ 25 ] 26 .H . Section 59-12-2218 , which is renumbered from Section 59-12-1903 is
             2417      renumbered and amended to read:
             2418           [59-12-1903].     59-12-2218. County option sales and use tax for airports,
             2419      highways, and a system for public transit -- Base -- Rate -- Administration of sales and
             2420      use tax.
             2421          (1) (a) Subject to the other provisions of this [section and except as provided in
             2422      Subsection (2)] part, the following may impose a sales and use tax under this [part] section:
             2423          (i) if, on April 1, 2009, a county legislative body of a county of the second class
             2424      imposes a sales and use tax under this [part] section, the county legislative body of the county
             2425      of the second class may impose the sales and use tax on the transactions:
             2426          (A) described in Subsection 59-12-103 (1); and
             2427          (B) within the county, including the cities and towns within the county; or
             2428          (ii) if, on April 1, 2009, a county legislative body of a county of the second class does
             2429      not impose a sales and use tax under this [part] section:
             2430          (A) a city legislative body of a city within the county of the second class may impose a
             2431      sales and use tax under this [part] section on the transactions described in Subsection
             2432      59-12-103 (1) within that city;
             2433          (B) a town legislative body of a town within the county of the second class may impose
             2434      a sales and use tax under this [part] section on the transactions described in Subsection
             2435      59-12-103 (1) within that town; and
             2436          (C) the county legislative body of the county of the second class may impose a sales
             2437      and use tax on the transactions described in Subsection 59-12-103 (1):
             2438          (I) within the county, including the cities and towns within the county, if on the date
             2439      the county legislative body provides the notice described in [Subsection (7)(a)] Section
             2440      59-12-2209 to the commission stating that the county will enact a sales and use tax under this
             2441      [part] section, no city or town within that county:
             2442          (Aa) imposes a sales and use tax under this [part] section; or
             2443          (Bb) has provided the notice described in [Subsection (7)(a)] Section 59-12-2209 to the
             2444      commission stating that the city or town will enact a sales and use tax under this [part] section;
             2445      or



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             2446
         (II) within the county, except for within a city or town within that county, if, on the
             2447      date the county legislative body provides the notice described in [Subsection (7)(a)] Section
             2448      59-12-2209 to the commission stating that the county will enact a sales and use tax under this
             2449      [part] section, that city or town:
             2450          (Aa) imposes a sales and use tax under this [part] section; or
             2451          (Bb) has provided the notice described in [Subsection (7)(a)] Section 59-12-2209 to the
             2452      commission stating that the city or town will enact a sales and use tax under this [part] section.
             2453          (b) For purposes of Subsection (1)(a), a county, city, or town legislative body that
             2454      imposes a sales and use tax under this [part] section may impose the tax at a rate of:
             2455          (i) .10%, to be:
             2456          (A) as determined by the county, city, or town legislative body, deposited as provided
             2457      in Subsection [(4)(c)] (3)(b)(i) into the County of the Second Class State Highway Projects
             2458      Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             2459          (B) as determined by the county, city, or town legislative body, expended for a project
             2460      or service relating to an airport facility for the portion of the project or service that is performed
             2461      within the county, city, or town within which the tax is imposed:
             2462          (I) for a county legislative body that imposes the sales and use tax, if that airport
             2463      facility is part of the regional transportation plan of the area metropolitan planning organization
             2464      if a metropolitan planning organization exists for the area; or
             2465          (II) for a city or town legislative body that imposes the sales and use tax, if:
             2466          (Aa) that city or town owns or operates the airport facility; and
             2467          (Bb) an airline is headquartered in that city or town; or
             2468          (C) as determined by the county, city, or town legislative body, deposited or expended
             2469      for a combination of Subsections (1)(b)(i)(A) and (B); or
             2470          (ii) subject to Subsection (1)(c), .25%, to be expended as follows:
             2471          (A) .10% to be deposited as provided in Subsection [(4)(c)(i)] (3)(b)(i) into the County
             2472      of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended
             2473      as provided in Section 72-2-121.2 ;
             2474          (B) .05%, to be deposited as provided in Subsection [(4)(c)(ii)] (3)(b)(ii) into the Local
             2475      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             2476      distributed in accordance with Section 72-2-117.5 ; and



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             2477
         (C) as determined by the county, city, or town legislative body, .10% to be:
             2478          (I) deposited as provided in Subsection [(4)(c)(i)] (3)(b)(i) into the County of the
             2479      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             2480      provided in Section 72-2-121.2 ;
             2481          (II) expended for:
             2482          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, [Designation of]
             2483      State Highways [Act];
             2484          (Bb) a local highway [of regional significance] that is a principal arterial highway,
             2485      minor arterial highway, major collector highway, or minor collector road; or
             2486          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             2487          (III) expended for a project or service relating to a system for public transit for the
             2488      portion of the project or service that is performed within the county, city, or town within which
             2489      the sales and use tax is imposed;
             2490          [(IV) expended for a project or service relating to a fixed guideway for the portion of
             2491      the project or service that is performed within the county, city, or town within which the tax is
             2492      imposed;]
             2493          [(V)] (IV) expended for a project or service relating to an airport facility for the portion
             2494      of the project or service that is performed within the county, city, or town within which the
             2495      sales and use tax is imposed:
             2496          (Aa) for a county legislative body that imposes the sales and use tax, if that airport
             2497      facility is part of the regional transportation plan of the area metropolitan planning organization
             2498      if a metropolitan planning organization exists for the area; or
             2499          (Bb) for a city or town legislative body that imposes the sales and use tax, if:
             2500          (Ii) that city or town owns or operates the airport facility; and
             2501          (IIii) an airline is headquartered in that city or town; or
             2502          [(VI)] (V) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I)
             2503      through [(V)] (IV).
             2504          (c) (i) Subject to the other provisions of this Subsection (1)(c), a city or town within
             2505      which a sales and use tax is imposed at the tax rate described in Subsection (1)(b)(ii) may:
             2506          (A) expend the revenues in accordance with Subsection (1)(b)(ii); or
             2507          (B) expend the revenues in accordance with Subsections (1)(c)(ii) through (iv) if:



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             2508
         (I) that city or town owns or operates an airport facility; and
             2509          (II) an airline is headquartered in that city or town.
             2510          (ii) (A) [If a city or town within which a tax is imposed at the tax rate described in
             2511      Subsection (1)(b)(ii) owns or operates an airport facility at which an airline is headquartered,
             2512      the] A city or town legislative body of a city or town within which a sales and use tax is
             2513      imposed at the tax rate described in Subsection (1)(b)(ii) may expend the revenues collected
             2514      from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
             2515      .25% for a purpose described in Subsection (1)(c)(ii)(B) if:
             2516          (I) that city or town owns or operates an airport facility; and
             2517          (II) an airline is headquartered in that city or town.
             2518          (B) A city or town described in Subsection (1)(c)(ii)(A) may expend the revenues
             2519      collected from a tax rate of greater than .10% but not to exceed the revenues collected from a
             2520      tax rate of .25% for:
             2521          [(A)] (I) a project or service relating to the airport facility; and
             2522          [(B)] (II) the portion of the project or service that is performed within the city or town
             2523      imposing the sales and use tax.
             2524          (iii) If a city or town legislative body described in Subsection (1)(c)(ii)(A) determines
             2525      to expend the revenues collected from a tax rate of greater than .10% but not to exceed the
             2526      revenues collected from a tax rate of .25% for a project or service relating to an airport facility
             2527      as allowed by Subsection (1)(c)(ii), any remaining revenues that are collected from the sales
             2528      and use tax imposed at the tax rate described in Subsection (1)(b)(ii) that are not expended for
             2529      the project or service relating to an airport facility as allowed by Subsection (1)(c)(ii) shall be
             2530      expended as follows:
             2531          (A) 75% of the remaining revenues shall be deposited as provided in Subsection
             2532      [(4)(d)] (3)(c) into the County of the Second Class State Highway Projects Fund created by
             2533      Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ; and
             2534          (B) 25% of the remaining revenues shall be deposited as provided in Subsection
             2535      [(4)(d)] (3)(c) into the Local Transportation Corridor Preservation Fund created by Section
             2536      72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5 .
             2537          (iv) A city or town legislative body that expends the revenues collected from a sales
             2538      and use tax imposed at the tax rate described in Subsection (1)(b)(ii) in accordance with



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             2539
     Subsections (1)(c)(ii) and (iii):
             2540          (A) shall, on or before the date the city or town legislative body provides the notice
             2541      described in [Subsection (7)(a)] Section 59-12-2209 to the commission stating that the city or
             2542      town will enact a sales and use tax under this [part] section:
             2543          (I) determine the tax rate:
             2544          (Aa) the collections from which the city or town legislative body will expend for a
             2545      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             2546          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             2547          (II) notify the commission in writing of the tax rate the city or town legislative body
             2548      determines in accordance with Subsection (1)(c)(iv)(A)(I);
             2549          (B) shall, on or before the April 1 immediately following the date the city or town
             2550      legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission:
             2551          (I) determine the tax rate:
             2552          (Aa) the collections from which the city or town legislative body will expend for a
             2553      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             2554          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             2555          (II) notify the commission in writing of the tax rate the city or town legislative body
             2556      determines in accordance with Subsection (1)(c)(iv)(B)(I);
             2557          (C) shall, on or before April 1 of each year after the April 1 described in Subsection
             2558      (1)(c)(iv)(B):
             2559          (I) determine the tax rate:
             2560          (Aa) the collections from which the city or town legislative body will expend for a
             2561      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             2562          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             2563          (II) notify the commission in writing of the tax rate the city or town legislative body
             2564      determines in accordance with Subsection (1)(c)(iv)(C)(I); and
             2565          (D) may not change the tax rate the city or town legislative body determines in
             2566      accordance with Subsections (1)(c)(iv)(A) through (C) more frequently than as prescribed by
             2567      Subsections (1)(c)(iv)(A) through (C).
             2568          [(d) If a county legislative body imposes a tax under this part, regardless of whether the
             2569      tax under this part is imposed within all of the cities and towns within the county, the county



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             2570
     legislative body may not impose a tax under Part 17, County Option Sales and Use Tax for
             2571      Transportation Act.]
             2572          [(e) For purposes of this Subsection (1), the location of a transaction shall be
             2573      determined in accordance with Sections 59-12-211 through 59-12-215 .]
             2574          [(2) (a) A county, city, or town legislative body may not impose a tax under this part
             2575      on:]
             2576          [(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             2577      are exempt from taxation under Section 59-12-104 ; or]
             2578          [(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and
             2579      food ingredients.]
             2580          [(b) A county, city, or town legislative body imposing a tax under this part shall impose
             2581      the tax on amounts paid or charged for food and food ingredients if the food and food
             2582      ingredients are sold as part of a bundled transaction attributable to food and food ingredients
             2583      and tangible personal property other than food and food ingredients.]
             2584          [(3)(a) To impose a tax under this part, a county, city, or town legislative body shall
             2585      obtain approval from a majority of the members of the county, city, or town legislative body.]
             2586          [(b)] (2) Before a city or town legislative body may impose a sales and use tax under
             2587      this [part] section, the city or town legislative body shall provide a copy of the notice described
             2588      in [Subsection (7)(a)] Section 59-12-2209 that the city or town legislative body provides to the
             2589      commission:
             2590          [(i)] (a) to the county legislative body within which the city or town is located; and
             2591          [(ii)] (b) at the same time as the city or town legislative body provides the notice to the
             2592      commission.
             2593          [(4)] (3) (a) Subject to Subsections [(4)] (3)(b) through [(f)] (e) and [except as provided
             2594      in Subsection (6)] Section 59-12-2207 , the commission shall transmit revenues collected
             2595      within a county, city, or town from a tax under this part that will be expended for a purpose
             2596      described in Subsection (1)(b)(i)(B) or Subsections (1)(b)(ii)(C)(II) through [(V)] (IV)[: (i)] to
             2597      the county, city, or town legislative body[;] in accordance with Section 59-12-2206 .
             2598          [(ii) monthly; and]
             2599          [(iii) by electronic funds transfer.]
             2600          [(b) Except as provided in Subsection (6), the commission shall transfer the revenues



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             2601      described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
             2602      Chapter 2a, Part 8, Public Transit District Act, if the county, city, or town legislative body:]
             2603          [(i) provides written notice to the commission requesting the transfer; and]
             2604          [(ii) designates the public transit district to which the county, city, or town legislative
             2605      body requests the commission to transfer the revenues described in Subsection (4)(a).]
             2606          [(c)] (b) Except as provided in Subsection [(4)(d) or (6)] (3)(c) and subject to Section
             2607      59-12-2207 , the commission shall deposit revenues collected within a county, city, or town
             2608      from a sales and use tax under this [part] section that:
             2609          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             2610      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             2611          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into
             2612      the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             2613          (iii) a county, city, or town legislative body determines to expend for a purpose
             2614      described in Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class
             2615      State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town
             2616      legislative body provides written notice to the commission requesting the deposit.
             2617          [(d)] (c) Subject to Subsection [(4)(e) or (f)] (3)(d) or (e), if a city or town legislative
             2618      body provides notice to the commission in accordance with Subsection (1)(c)(iv), the
             2619      commission shall:
             2620          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
             2621      town legislative body[:(A)] monthly[; and (B)] by electronic funds transfer; and
             2622          (ii) deposit any remaining revenues described in Subsection (1)(c)(iii) in accordance
             2623      with Subsection (1)(c)(iii).
             2624          [(e)] (d) (i) If a city or town legislative body provides the notice described in
             2625      Subsection (1)(c)(iv)(A) to the commission, the commission shall transmit or deposit the
             2626      revenues collected from the sales and use tax:
             2627          (A) in accordance with Subsection [(4)(d)] (3)(c);
             2628          (B) beginning on the date the city or town legislative body enacts the sales and use tax;
             2629      and
             2630          (C) ending on the earlier of:
             2631          (I) the June 30 immediately following the date the city or town legislative body



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             2632
     provides the notice described in Subsection (1)(c)(iv)(B) to the commission; or
             2633          (II) the date the city or town legislative body repeals the sales and use tax.
             2634          (ii) If a city or town legislative body provides the notice described in Subsection
             2635      (1)(c)(iv)(B) or (C) to the commission, the commission shall transmit or deposit the revenues
             2636      collected from the sales and use tax:
             2637          (A) in accordance with Subsection [(4)(d)] (3)(c);
             2638          (B) beginning on the July 1 immediately following the date the city or town legislative
             2639      body provides the notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; and
             2640          (C) ending on the earlier of:
             2641          (I) the June 30 of the year after the date the city or town legislative body provides the
             2642      notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; or
             2643          (II) the date the city or town legislative body repeals the sales and use tax.
             2644          [(f)] (e) (i) If a city or town legislative body that is required to provide the notice
             2645      described in Subsection (1)(c)(iv)(A) does not provide the notice described in Subsection
             2646      (1)(c)(iv)(A) to the commission on or before the date required by Subsection (1)(c)(iv) for
             2647      providing the notice, the commission shall transmit, transfer, or deposit the revenues collected
             2648      from the sales and use tax within the city or town in accordance with Subsections [(4)(a)
             2649      through (c)] (3)(a) and (b).
             2650          (ii) If a city or town legislative body that is required to provide the notice described in
             2651      Subsection (1)(c)(iv)(B) or (C) does not provide the notice described in Subsection
             2652      (1)(c)(iv)(B) or (C) to the commission on or before the date required by Subsection (1)(c)(iv)
             2653      for providing the notice, the commission shall transmit or deposit the revenues collected from
             2654      the sales and use tax within the city or town in accordance with:
             2655          (A) Subsection [(4)(d)] (3)(c); and
             2656          (B) the most recent notice the commission received from the city or town legislative
             2657      body under Subsection (1)(c)(iv).
             2657a      H. (4) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is not
             2657b      required to submit an opinion question to the county's, city's, or town's registered voters in
             2657c      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:
             2657d          (a) the county, city, or town imposes the sales and use tax under this section on or after
             2657e      July 1, 2010, but on or before July 1, 2011; and
             2657f          (b) a purpose for which the county, city, or town will expend revenues collected from
             2657g      the sales and use tax under this section is:
             2657h          (i) a project or service described in Subsection (1)(b)(i)(B); or


             2657i     
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    (ii) a project or service described in Subsection (1)(b)(ii)(C)(IV).
.H

             2658          [(5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             2659      collect, and enforce a tax under this part in accordance with:]
             2660          [(i) the same procedures used to administer, collect, and enforce the tax under:]
             2661          [(A) Part 1, Tax Collection; or]
             2662          [(B) Part 2, Local Sales and Use Tax Act; and]



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             2663
         [(ii) Chapter 1, General Taxation Policies.]
             2664          [(b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).]
             2665          [(6) (a) The commission may retain an amount of tax collected under this part of not to
             2666      exceed the lesser of:]
             2667          [(i) 1.50%; or]
             2668          [(ii) an amount equal to the cost to the commission of administering this part.]
             2669          [(b) Any amount the commission retains under Subsection (6)(a) shall be:]
             2670          [(i) deposited into the Sales and Use Tax Administrative Fees Account; and]
             2671          [(ii) used as provided in Subsection 59-12-206 (2).]
             2672          [(7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1,
             2673      2009, a county, city, or town enacts or repeals a tax or changes the rate of a tax under this part,
             2674      the enactment, repeal, or change shall take effect:]
             2675          [(A) on the first day of a calendar quarter; and]
             2676          [(B) after a 90-day period beginning on the date the commission receives notice
             2677      meeting the requirements of Subsection (7)(a)(ii) from the county, city, or town.]
             2678          [(ii) The notice described in Subsection (7)(a)(i)(B) shall state:]
             2679          [(A) that the county, city, or town will enact, repeal, or change the rate of a tax under
             2680      this part;]
             2681          [(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);]
             2682          [(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and]
             2683          [(D) if the county, city, or town enacts the tax or changes the rate of the tax described
             2684      in Subsection (7)(a)(ii)(A), the rate of the tax.]
             2685          [(b) (i) If the billing period for a transaction begins before the effective date of the
             2686      enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
             2687      tax rate increase shall take effect on the first day of the first billing period that begins after the
             2688      effective date of the enactment of the tax or the tax rate increase.]
             2689          [(ii) If the billing period for a transaction begins before the effective date of the repeal
             2690      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             2691      decrease shall take effect on the first day of the last billing period that began before the
             2692      effective date of the repeal of the tax or the tax rate decrease.]
             2693          [(c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales



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             2694
     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2695      described in Subsection (7)(a)(i) takes effect:]
             2696          [(A) on the first day of a calendar quarter; and]
             2697          [(B) beginning 60 days after the effective date of the enactment, repeal, or change in
             2698      the rate of the tax under Subsection (7)(a)(i).]
             2699          [(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2700      the commission may by rule define the term "catalogue sale."]
             2701          [(d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             2702      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             2703      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             2704      effect:]
             2705          [(A) on the first day of a calendar quarter; and]
             2706          [(B) after a 90-day period beginning on the date the commission receives notice
             2707      meeting the requirements of Subsection (7)(d)(ii) from the county, city, or town that annexes
             2708      the annexing area.]
             2709          [(ii) The notice described in Subsection (7)(d)(i)(B) shall state:]
             2710          [(A) that the annexation described in Subsection (7)(d)(i)(B) will result in an
             2711      enactment, repeal, or change in the rate of a tax under this part for the annexing area;]
             2712          [(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);]
             2713          [(C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and]
             2714          [(D) if the county, city, or town enacts the tax or changes the rate of the tax described
             2715      in Subsection (7)(d)(ii)(A), the rate of the tax.]
             2716          [(e) (i) If the billing period for a transaction begins before the effective date of the
             2717      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             2718      rate increase shall take effect on the first day of the first billing period that begins after the
             2719      effective date of the enactment of the tax or the tax rate increase.]
             2720          [(ii) If the billing period for a transaction begins before the effective date of the repeal
             2721      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             2722      decrease shall take effect on the first day of the last billing period that began before the
             2723      effective date of the repeal of the tax or the tax rate decrease.]
             2724          [(f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales



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             2725
     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             2726      described in Subsection (7)(d)(i) takes effect:]
             2727          [(A) on the first day of a calendar quarter; and]
             2728          [(B) beginning 60 days after the effective date of the enactment, repeal, or change in
             2729      the rate under Subsection (7)(d)(i).]
             2730          [(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2731      the commission may by rule define the term "catalogue sale."]
             2732          Section H. [ 26 ] 27 .H . Section 63B-11-501 is amended to read:
             2733           63B-11-501. State Bonding Commission authorized to issue general obligation
             2734      bonds.
             2735          Upon receipt of a written opinion from the Utah Attorney General that Salt Lake
             2736      County has entered a binding legal agreement with the state in which Salt Lake County agrees,
             2737      until all of the principal, interest, and issuance costs on the bonds have been paid, to annually
             2738      transfer enough of the [1/4 of 1/4% of sales tax proceeds earmarked by Section 59-12-502 ]
             2739      amount described in Subsection 59-12-2214 (3)(b) to the sinking fund created in Section
             2740      63B-11-508 to pay the principal, interest, and issuance costs for any general obligation bonds
             2741      issued to provide funds for any of the Salt Lake County transportation projects identified in
             2742      Section 63B-11-502 , the commission created under Section 63B-1-201 may issue and sell
             2743      general obligation bonds of the state pledging the full faith, credit, and resources of the state for
             2744      the payment of the principal of and interest on the bonds, to provide funds to the Department of
             2745      Transportation.
             2746          Section H. [ 27 ] 28 .H . Section 63B-11-502 is amended to read:
             2747           63B-11-502. Maximum amount -- Projects authorized.
             2748          (1) The total amount of bonds issued under this part may not exceed $52,101,800.
             2749          (2) (a) (i) Proceeds from the issuance of bonds shall be provided to the Department of
             2750      Transportation to provide funds to pay all or part of the costs of accelerating any of the
             2751      following state highway construction or reconstruction projects in Salt Lake County:
             2752          (A) I-15: 10600 South to the Utah County line;
             2753          (B) Final Environmental Impact Statement for Western Transportation Corridor: I-80
             2754      to Utah County;
             2755          (C) I-215: Redwood Road to 4700 South;



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             2756
         (D) State Street Reconstruction: 9000 South to 10600 South; and
             2757          (E) except as provided in Subsection (2)(d), State Street Reconstruction: 7800 South to
             2758      8000 South.
             2759          (ii) If the Department of Transportation is unable to begin or complete a project
             2760      authorized by this Subsection (2)(a) because of a court order, the Department of
             2761      Transportation, with the approval of Salt Lake County, may expend bond proceeds to construct
             2762      one or more projects identified in Subsection (2)(e).
             2763          (b) When the Utah Transit Authority certifies to the Transportation Commission that
             2764      the Utah Transit Authority will pay half the costs of reconstruction of the Utah Transit
             2765      Authority railroad overpass on 8000 South State Street, the Department of Transportation may
             2766      provide funds from bond proceeds to pay the other half of the costs of reconstruction of the
             2767      Utah Transit Authority railroad overpass on 8000 South.
             2768          (c) As used in Subsections (2)(a) and (b), "costs" may include the cost of acquiring
             2769      land, interests in land, easements and rights-of-way, improving sites, and making all
             2770      improvements necessary, incidental, or convenient to the facilities, interest estimated to accrue
             2771      on these bonds during the period to be covered by construction of the projects plus a period of
             2772      six months after the end of the construction period, interest estimated to accrue on any bond
             2773      anticipation notes issued under the authority of Chapter 11, Part 6, 2002 Highway General
             2774      Obligation Bond Anticipation Notes for Salt Lake County, and all related engineering,
             2775      architectural, and legal fees.
             2776          (d) Bond proceeds may not be expended on the State Street Reconstruction: 7800 to
             2777      8000 South project until the Transportation Commission has received the certification required
             2778      by Subsection (2)(b) from the Utah Transit Authority.
             2779          (e) As the following projects or future projects identified by Salt Lake County and the
             2780      Legislature are prepared and ready for construction by the Department of Transportation, it is
             2781      the intent of the Legislature that they will be accelerated and funded from future general
             2782      obligation bonds issued in anticipation of receiving debt service funds from [Salt Lake
             2783      County's 1/4 of 1/4% sales tax proceeds earmarked by Section 59-12-502 ] the amount
             2784      described in Subsection 59-12-2214 (3)(b) and from other funding sources available to the
             2785      Department of Transportation, including monies available from the Centennial Highway Fund
             2786      and the Statewide Transportation Improvement Plan: 5600 West Reconstruction: 4500 South to



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             2787
     7000 South; Redwood Road: 12600 South to Bangerter Highway; I-15: Beck Street Overpass;
             2788      I-215: 4700 South to SR-201; acquisition of rights-of-way for the Western Transportation
             2789      Corridor; 11400 South: I-15 to Redwood Road; and State Street Reconstruction 6400 South to
             2790      7800 South and 8000 South to 9000 South.
             2791          (3) If any portion of the proceeds of the tax paid to the state are not required to pay
             2792      principal, interest, and issuance costs of the bonds and the principal, interest, and issuance costs
             2793      of the bond have been paid off, or if, after completion of the projects authorized under
             2794      Subsection (2)(a) and payment of the costs of issuing and selling the bonds under Section
             2795      63B-11-503 , any bond proceeds remain unexpended, the Department of Transportation may
             2796      use those unexpended proceeds to pay all or part of the costs of construction projects in Salt
             2797      Lake County that have been approved and prioritized by the Transportation Commission.
             2798          (4) The commission, by resolution, or the state treasurer may make any statement of
             2799      intent relating to a reimbursement that is necessary or desirable to comply with federal tax law.
             2800          (5) The Department of Transportation may enter into agreements related to the projects
             2801      before the receipt of proceeds of bonds issued under this chapter.
             2802          Section H. [ 28 ] 29 .H . Section 72-2-117.5 is amended to read:
             2803           72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
             2804          (1) As used in this section:
             2805          (a) "Council of governments" means a decision-making body in each county composed
             2806      of the county governing body and the mayors of each municipality in the county.
             2807          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             2808      72-1-208.5 .
             2809          (2) There is created the Local Transportation Corridor Preservation Fund within the
             2810      Transportation Fund.
             2811          (3) The fund shall be funded from the following sources:
             2812          (a) a local option highway construction and transportation corridor preservation fee
             2813      imposed under Section 41-1a-1222 ;
             2814          (b) appropriations made to the fund by the Legislature;
             2815          (c) contributions from other public and private sources for deposit into the fund;
             2816          (d) all monies collected from rents and sales of real property acquired with fund
             2817      monies;



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             2818
         (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             2819      as authorized by Title 63B, Bonds;
             2820          (f) the portion of the sales and use tax described in Subsection [ 59-12-1703 (4)(a)(ii)]
             2821      59-12-2217 (2)(b) and required by Subsection [ 59-12-1703 (7)(b)(i)] 59-12-2217 (8)(a) to be
             2822      deposited into the fund; and
             2823          (g) sales and use tax revenues deposited into the fund in accordance with Section
             2824      [ 59-12-1903 ] 59-12-2218 .
             2825          (4) (a) The fund shall earn interest.
             2826          (b) All interest earned on fund monies shall be deposited into the fund.
             2827          (c) All monies appropriated to the Local Transportation Corridor Preservation Fund are
             2828      nonlapsing.
             2829          (d) The State Tax Commission shall provide the department with sufficient data for the
             2830      department to allocate the revenues:
             2831          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             2832      construction and transportation corridor preservation fee under Section 41-1a-1222 ;
             2833          (ii) provided under Subsection [ 59-12-1703 (4)(a)(ii)] 59-12-2217 (2)(b) to each county
             2834      imposing a county option sales and use tax for transportation; and
             2835          (iii) provided under Subsection (3)(g) to each county of the second class or city or town
             2836      within a county of the second class that imposes the sales and use tax authorized by Section
             2837      [ 59-12-1903 ] 59-12-2218 .
             2838          (e) (i) The department shall annually allocate the interest earned on fund monies to
             2839      each county based on the proportionate amount of interest earned on each county's allocation of
             2840      funds under Subsection (4)(d) on an average monthly balance basis.
             2841          (ii) The initial annual allocation of fund interest shall include all interest earned on
             2842      fund monies since the creation of the fund.
             2843          (f) The monies allocated under Subsection (4)(d):
             2844          (i) shall be used for the purposes provided in this section for each county, city, or town;
             2845      and
             2846          (ii) are allocated to each county, city or town as provided in this section:
             2847          (A) with the condition that the state will not be charged for any asset purchased with
             2848      the monies allocated under Subsections (4)(d) and (e); and



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             2849
         (B) are considered a local matching contribution for the purposes described under
             2850      Section 72-2-123 if used on a state highway.
             2851          (g) Administrative costs of the department to implement this section shall be paid from
             2852      the fund.
             2853          (5) (a) The department shall authorize the expenditure of fund monies to allow a
             2854      highway authority to acquire real property or any interests in real property for state, county, and
             2855      municipal highway corridors subject to:
             2856          (i) monies available in the fund to each county under Subsections (4)(d) and (e); and
             2857          (ii) the provisions of this section.
             2858          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             2859      section.
             2860          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             2861      under this section but limited to a total of 5% of the purchase price of the property.
             2862          (B) Any additional maintenance cost shall be paid from funds other than under this
             2863      section.
             2864          (C) Revenue generated by any property acquired under this section is excluded from
             2865      the limitations under this Subsection (5)(c)(i).
             2866          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             2867      under this section.
             2868          (d) Fund monies allocated under Subsections (4)(d) and (e) may be used by a county
             2869      highway authority for countywide transportation planning if:
             2870          (i) the county is not included in a metropolitan planning organization;
             2871          (ii) the transportation planning is part of the county's continuing, cooperative, and
             2872      comprehensive process for transportation planning, corridor preservation, right-of-way
             2873      acquisition, and project programming;
             2874          (iii) no more than four years allocation every 20 years to each county is used for
             2875      transportation planning under this Subsection (5)(d); and
             2876          (iv) the county otherwise qualifies to use the fund monies as provided under this
             2877      section.
             2878          (e) (i) Subject to Subsection (11), fund monies allocated under Subsections (4)(d) and
             2879      (e) may be used by a county highway authority for transportation corridor planning that is part



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             2880
     of the corridor elements of an ongoing work program of transportation projects.
             2881          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             2882      direction of:
             2883          (A) the metropolitan planning organization if the county is within the boundaries of a
             2884      metropolitan planning organization; or
             2885          (B) the department if the county is not within the boundaries of a metropolitan
             2886      planning organization.
      &nb