S.B. 30 Enrolled

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 General Description:
10 This bill amends the Sales and Use Tax Act to address local option sales and use taxes
11 for transportation.
12 Highlighted Provisions:
13 This bill:
14 . enacts the Local Option Sales and Use Taxes for Transportation Act;
15 . defines terms;
16 . repeals certain local option sales and use taxes for transportation and enacts certain
17 local option sales and use taxes for transportation;
18 . addresses the authority to impose a local option sales and use tax for transportation;
19 . addresses the transactions that may be subject to taxation and the tax rates at which
20 those transactions may be subject to taxation;
21 . addresses the determination of the location of a transaction for sales and use tax
22 purposes;
23 . addresses the administration, collection, and enforcement of a local option sales
24 and use tax for transportation;
25 . addresses the transfer or transmission of revenues collected from a local option
26 sales and use tax for transportation;
27 . addresses the State Tax Commission's authority to retain a percentage of revenues
28 collected from a local option sales and use tax for transportation, the deposit of
29 those revenues into the Sales and Use Tax Administrative Fees Account, and the

30 expenditure of those revenues;
31 . addresses legislative body and voter approval requirements for a local option sales
32 and use tax for transportation;
33 . addresses the enactment, repeal, or change in the rate of a local option sales and use
34 tax for transportation;
35 . addresses a seller's or certified service provider's failure to collect a local option
36 sales and use tax for transportation if the seller or certified service provider relies
37 on certain State Tax Commission information;
38 . addresses a seller's or certified service provider's failure to collect a local option
39 sales and use tax for transportation if the seller or certified service provider relies
40 on certain software certified by the State Tax Commission;
41 . addresses the circumstances under which a purchaser is relieved from a penalty or
42 is not liable for a tax or interest;
43 . provides transition provisions;
44 . addresses the imposition of local option sales and use taxes for transportation
45 including the purposes for which revenues collected from the taxes may be
46 expended; and
47 . makes technical and conforming changes.
48 Monies Appropriated in this Bill:
49 None
50 Other Special Clauses:
51 This bill takes effect on July 1, 2010.
52 This bill provides revisor instructions.
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
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
82 59-12-2212.1, Utah Code Annotated 1953
83 59-12-2213, Utah Code Annotated 1953
84 59-12-2214, Utah Code Annotated 1953
85 59-12-2215, Utah Code Annotated 1953

86 59-12-2216, Utah Code Annotated 1953
87 59-12-2217, Utah Code Annotated 1953
88 RENUMBERS AND AMENDS:
89 59-12-2218, (Renumbered from 59-12-1903, as last amended by Laws of Utah 2009,
90 Chapter 244)
91 REPEALS:
92 59-12-501, as last amended by Laws of Utah 2008, Chapters 7 and 384
93 59-12-502, as last amended by Laws of Utah 2009, Chapter 244
94 59-12-503, as enacted by Laws of Utah 1997, Chapter 131
95 59-12-504, as last amended by Laws of Utah 2008, Chapters 382 and 384
96 59-12-506, as last amended by Laws of Utah 2009, Chapter 203
97 59-12-507, as enacted by Laws of Utah 2008, Chapter 384
98 59-12-508, as enacted by Laws of Utah 2008, Chapter 384
99 59-12-1001, as last amended by Laws of Utah 2009, Chapter 388
100 59-12-1002, as last amended by Laws of Utah 2008, Chapter 384
101 59-12-1004, as last amended by Laws of Utah 2009, Chapter 203
102 59-12-1005, as enacted by Laws of Utah 2008, Chapter 384
103 59-12-1006, as enacted by Laws of Utah 2008, Chapter 384
104 59-12-1501, as enacted by Laws of Utah 2003, Chapter 282
105 59-12-1502, as last amended by Laws of Utah 2007, Chapters 10 and 329
106 59-12-1503, as last amended by Laws of Utah 2008, Chapters 382 and 384
107 59-12-1505, as last amended by Laws of Utah 2009, Chapter 203
108 59-12-1506, as enacted by Laws of Utah 2008, Chapter 384
109 59-12-1507, as enacted by Laws of Utah 2008, Chapter 384
110 59-12-1701, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
111 59-12-1702, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
112 59-12-1703, as last amended by Laws of Utah 2008, Chapters 382 and 384
113 59-12-1704, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1

114 59-12-1705, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 1
115 59-12-1706, as last amended by Laws of Utah 2009, Chapter 203
116 59-12-1707, as enacted by Laws of Utah 2008, Chapter 384
117 59-12-1708, as enacted by Laws of Utah 2008, Chapter 384
118 59-12-1901, as last amended by Laws of Utah 2009, Chapter 244
119 59-12-1902, as last amended by Laws of Utah 2009, Chapter 244
120 59-12-1904, as last amended by Laws of Utah 2009, Chapter 203
121 59-12-1905, as enacted by Laws of Utah 2008, Chapter 286
122 59-12-1906, as enacted by Laws of Utah 2008, Chapter 286
123
124 Be it enacted by the Legislature of the state of Utah:
125 Section 1. Section 10-8-86 is amended to read:
126 10-8-86. Organization, operation, maintenance, and funding of system for public
127 transit authorized.
128 (1) The governing body of any municipality may adopt a resolution allowing the
129 municipality to organize, operate, and maintain a [public transportation] system for public
130 transit within [such] the municipality and to impose a sales and a use tax to fund the system
131 for public transit as provided in Section [ 59-12-501 ] 59-12-2213 .
132 (2) The authority granted municipalities by this section to organize, operate, and
133 maintain a [public transportation] system for public transit is inapplicable to a municipality
134 located in or within five highway or roadway miles of the boundary of an existing transit
135 district, unless the existing transit district consents to the organization and operation of [such
136 a] the system for public transit by the municipality.
137 Section 2. Section 17-50-322 is amended to read:
138 17-50-322. County funding for a fixed guideway.
139 (1) For purposes of this section, "fixed guideway" means a public transit facility that
140 uses and occupies:
141 (a) rail for the use of public transit; or

142 (b) a separate right-of-way for the use of public transit.
143 (2) (a) Except as provided in Subsection (2)(b), a county legislative body may not levy
144 a property tax or expend revenues from uniform fees or any tax or fee imposed in lieu of a
145 property tax, to purchase, erect, repair, rebuild, maintain, or otherwise fund a fixed guideway.
146 (b) Subsection (2)(a) does not apply to a property tax levy imposed by a county for the
147 purpose of paying for bonds if:
148 (i) before January 1, 2007, the bonds were issued or approved by voters for issuance to
149 fund a fixed guideway; and
150 (ii) the county does not impose a sales and use tax authorized by Section [ 59-12-1703 ]
151 59-12-2217 .
152 Section 3. Section 17B-1-412 is amended to read:
153 17B-1-412. Protests -- Election.
154 (1) (a) An owner of private real property located within or a registered voter residing
155 within an area proposed to be annexed may protest an annexation by filing a written protest
156 with the board of trustees of the proposed annexing local district, except:
157 (i) as provided in Section 17B-1-413 ;
158 (ii) for an annexation under Section 17B-1-415 ; and
159 (iii) for an annexation proposed by a local district that receives sales and use tax funds
160 from the counties, cities, and towns within the local district that impose a sales and use tax
161 under Section [ 59-12-501 ] 59-12-2213 .
162 (b) A protest of a boundary adjustment is not governed by this section but is governed
163 by Section 17B-1-417 .
164 (2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of
165 the public hearing under Section 17B-1-409 .
166 (3) (a) Except as provided in Subsection (4), the local district shall hold an election on
167 the proposed annexation if:
168 (i) timely protests are filed by:
169 (A) the owners of private real property that:

170 (I) is located within the area proposed to be annexed;
171 (II) covers at least 10% of the total private land area within the entire area proposed to
172 be annexed and within each applicable area; and
173 (III) is equal in assessed value to at least 10% of the assessed value of all private real
174 property within the entire area proposed to be annexed and within each applicable area; or
175 (B) registered voters residing within the entire area proposed to be annexed and within
176 each applicable area equal in number to at least 10% of the number of votes cast within the
177 entire area proposed for annexation and within each applicable area, respectively, for the
178 office of governor at the last regular general election before the filing of the petition; or
179 (ii) the proposed annexing local district is one that receives sales and use tax funds
180 from the counties, cities, and towns within the local district that impose a sales and use tax
181 under Section [ 59-12-501 ] 59-12-2213 .
182 (b) (i) At each election held under Subsection (3)(a)(ii), the ballot question shall be
183 phrased to indicate that a voter's casting a vote for or against the annexation includes also a
184 vote for or against the imposition of the sales and use tax as provided in Section [ 59-12-501 ]
185 59-12-2213 .
186 (ii) Except as otherwise provided in this part, each election under Subsection (3)(a)
187 shall be governed by Title 20A, Election Code.
188 (c) If a majority of registered voters residing within the area proposed to be annexed
189 and voting on the proposal vote:
190 (i) in favor of annexation, the board of trustees shall, subject to Subsections
191 17B-1-414 (1)(b), (2), and (3), complete the annexation by adopting a resolution approving
192 annexation of the area; or
193 (ii) against annexation, the annexation process is terminated, the board may not adopt
194 a resolution approving annexation of the area, and the area proposed to be annexed may not
195 for two years be the subject of an effort under this part to annex to the same local district.
196 (4) If sufficient protests are filed under this section to require an election for a
197 proposed annexation to which the protest provisions of this section are applicable, a board of

198 trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and
199 terminating the annexation process without holding an election.
200 Section 4. Section 59-12-102 is amended to read:
201 59-12-102. Definitions.
202 As used in this chapter:
203 (1) "800 service" means a telecommunications service that:
204 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
205 (b) is typically marketed:
206 (i) under the name 800 toll-free calling;
207 (ii) under the name 855 toll-free calling;
208 (iii) under the name 866 toll-free calling;
209 (iv) under the name 877 toll-free calling;
210 (v) under the name 888 toll-free calling; or
211 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
212 Federal Communications Commission.
213 (2) (a) "900 service" means an inbound toll telecommunications service that:
214 (i) a subscriber purchases;
215 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
216 the subscriber's:
217 (A) prerecorded announcement; or
218 (B) live service; and
219 (iii) is typically marketed:
220 (A) under the name 900 service; or
221 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
222 Communications Commission.
223 (b) "900 service" does not include a charge for:
224 (i) a collection service a seller of a telecommunications service provides to a
225 subscriber; or

226 (ii) the following a subscriber sells to the subscriber's customer:
227 (A) a product; or
228 (B) a service.
229 (3) (a) "Admission or user fees" includes season passes.
230 (b) "Admission or user fees" does not include annual membership dues to private
231 organizations.
232 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
233 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
234 Agreement after November 12, 2002.
235 (5) "Agreement combined tax rate" means the sum of the tax rates:
236 (a) listed under Subsection (6); and
237 (b) that are imposed within a local taxing jurisdiction.
238 (6) "Agreement sales and use tax" means a tax imposed under:
239 (a) Subsection 59-12-103 (2)(a)(i)(A);
240 (b) Subsection 59-12-103 (2)(b)(i);
241 (c) Subsection 59-12-103 (2)(c)(i);
242 (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
243 (e) Section 59-12-204 ;
244 (f) Section 59-12-401 ;
245 (g) Section 59-12-402 ;
246 [(h) Section 59-12-501 ;]
247 [(i) Section 59-12-502 ;]
248 [(j)] (h) Section 59-12-703 ;
249 [(k)] (i) Section 59-12-802 ;
250 [(l)] (j) Section 59-12-804 ;
251 [(m) Section 59-12-1001 ;]
252 [(n)] (k) Section 59-12-1102 ;
253 [(o)] (l) Section 59-12-1302 ;

254 [(p)] (m) Section 59-12-1402 ;
255 [(q) Section 59-12-1503 ;]
256 [(r) Section 59-12-1703 ;]
257 [(s)] (n) Section 59-12-1802 ;
258 [(t) Section 59-12-1903 ;]
259 [(u)] (o) Section 59-12-2003 ; [or]
260 [(v)] (p) Section 59-12-2103 [.];
261 (q) Section 59-12-2213 ;
262 (r) Section 59-12-2214 ;
263 (s) Section 59-12-2215 ;
264 (t) Section 59-12-2216 ;
265 (u) Section 59-12-2217 ; or
266 (v) Section 59-12-2218 .
267 (7) "Aircraft" is as defined in Section 72-10-102 .
268 (8) "Alcoholic beverage" means a beverage that:
269 (a) is suitable for human consumption; and
270 (b) contains .5% or more alcohol by volume.
271 (9) (a) "Ancillary service" means a service associated with, or incidental to, the
272 provision of telecommunications service.
273 (b) "Ancillary service" includes:
274 (i) a conference bridging service;
275 (ii) a detailed communications billing service;
276 (iii) directory assistance;
277 (iv) a vertical service; or
278 (v) a voice mail service.
279 (10) "Area agency on aging" is as defined in Section 62A-3-101 .
280 (11) "Assisted amusement device" means an amusement device, skill device, or ride
281 device that is started and stopped by an individual:

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

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

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

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

394 less of the seller's total purchase price of the bundled transaction; or
395 (B) the seller's sales price of the tangible personal property or product is 10% or less of
396 the seller's total sales price of the bundled transaction.
397 (ii) For purposes of Subsection (15)(b)(vi), a seller:
398 (A) shall use the seller's purchase price or the seller's sales price to determine if the
399 purchase price or sales price of the tangible personal property or product subject to taxation
400 under this chapter is de minimis; and
401 (B) may not use a combination of the seller's purchase price and the seller's sales price
402 to determine if the purchase price or sales price of the tangible personal property or product
403 subject to taxation under this chapter is de minimis.
404 (iii) For purposes of Subsection (15)(b)(vi), a seller shall use the full term of a service
405 contract to determine if the sales price of tangible personal property or a product is de
406 minimis.
407 (f) For purposes of Subsection (15)(b)(vii)(B), a seller may not use a combination of
408 the seller's purchase price and the seller's sales price to determine if tangible personal property
409 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
410 price of that retail sale.
411 (16) "Certified automated system" means software certified by the governing board of
412 the agreement that:
413 (a) calculates the agreement sales and use tax imposed within a local taxing
414 jurisdiction:
415 (i) on a transaction; and
416 (ii) in the states that are members of the agreement;
417 (b) determines the amount of agreement sales and use tax to remit to a state that is a
418 member of the agreement; and
419 (c) maintains a record of the transaction described in Subsection (16)(a)(i).
420 (17) "Certified service provider" means an agent certified:
421 (a) by the governing board of the agreement; and

422 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
423 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
424 own purchases.
425 (18) (a) Subject to Subsection (18)(b), "clothing" means all human wearing apparel
426 suitable for general use.
427 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
428 the commission shall make rules:
429 (i) listing the items that constitute "clothing"; and
430 (ii) that are consistent with the list of items that constitute "clothing" under the
431 agreement.
432 (19) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
433 (20) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
434 fuels that does not constitute industrial use under Subsection (46) or residential use under
435 Subsection (91).
436 (21) (a) "Common carrier" means a person engaged in or transacting the business of
437 transporting passengers, freight, merchandise, or other property for hire within this state.
438 (b) (i) "Common carrier" does not include a person who, at the time the person is
439 traveling to or from that person's place of employment, transports a passenger to or from the
440 passenger's place of employment.
441 (ii) For purposes of Subsection (21)(b)(i), in accordance with Title 63G, Chapter 3,
442 Utah Administrative Rulemaking Act, the commission may make rules defining what
443 constitutes a person's place of employment.
444 (22) "Component part" includes:
445 (a) poultry, dairy, and other livestock feed, and their components;
446 (b) baling ties and twine used in the baling of hay and straw;
447 (c) fuel used for providing temperature control of orchards and commercial
448 greenhouses doing a majority of their business in wholesale sales, and for providing power for
449 off-highway type farm machinery; and

450 (d) feed, seeds, and seedlings.
451 (23) "Computer" means an electronic device that accepts information:
452 (a) (i) in digital form; or
453 (ii) in a form similar to digital form; and
454 (b) manipulates that information for a result based on a sequence of instructions.
455 (24) "Computer software" means a set of coded instructions designed to cause:
456 (a) a computer to perform a task; or
457 (b) automatic data processing equipment to perform a task.
458 (25) (a) "Conference bridging service" means an ancillary service that links two or
459 more participants of an audio conference call or video conference call.
460 (b) "Conference bridging service" includes providing a telephone number as part of
461 the ancillary service described in Subsection (25)(a).
462 (c) "Conference bridging service" does not include a telecommunications service used
463 to reach the ancillary service described in Subsection (25)(a).
464 (26) "Construction materials" means any tangible personal property that will be
465 converted into real property.
466 (27) "Delivered electronically" means delivered to a purchaser by means other than
467 tangible storage media.
468 (28) (a) "Delivery charge" means a charge:
469 (i) by a seller of:
470 (A) tangible personal property;
471 (B) a product transferred electronically; or
472 (C) services; and
473 (ii) for preparation and delivery of the tangible personal property, product transferred
474 electronically, or services described in Subsection (28)(a)(i) to a location designated by the
475 purchaser.
476 (b) "Delivery charge" includes a charge for the following:
477 (i) transportation;

478 (ii) shipping;
479 (iii) postage;
480 (iv) handling;
481 (v) crating; or
482 (vi) packing.
483 (29) "Detailed telecommunications billing service" means an ancillary service of
484 separately stating information pertaining to individual calls on a customer's billing statement.
485 (30) "Dietary supplement" means a product, other than tobacco, that:
486 (a) is intended to supplement the diet;
487 (b) contains one or more of the following dietary ingredients:
488 (i) a vitamin;
489 (ii) a mineral;
490 (iii) an herb or other botanical;
491 (iv) an amino acid;
492 (v) a dietary substance for use by humans to supplement the diet by increasing the
493 total dietary intake; or
494 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
495 described in Subsections (30)(b)(i) through (v);
496 (c) (i) except as provided in Subsection (30)(c)(ii), is intended for ingestion in:
497 (A) tablet form;
498 (B) capsule form;
499 (C) powder form;
500 (D) softgel form;
501 (E) gelcap form; or
502 (F) liquid form; or
503 (ii) notwithstanding Subsection (30)(c)(i), if the product is not intended for ingestion
504 in a form described in Subsections (30)(c)(i)(A) through (F), is not represented:
505 (A) as conventional food; and

506 (B) for use as a sole item of:
507 (I) a meal; or
508 (II) the diet; and
509 (d) is required to be labeled as a dietary supplement:
510 (i) identifiable by the "Supplemental Facts" box found on the label; and
511 (ii) as required by 21 C.F.R. Sec. 101.36.
512 (31) (a) "Direct mail" means printed material delivered or distributed by United States
513 mail or other delivery service:
514 (i) to:
515 (A) a mass audience; or
516 (B) addressees on a mailing list provided:
517 (I) by a purchaser of the mailing list; or
518 (II) at the discretion of the purchaser of the mailing list; and
519 (ii) if the cost of the printed material is not billed directly to the recipients.
520 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by
521 a purchaser to a seller of direct mail for inclusion in a package containing the printed material.
522 (c) "Direct mail" does not include multiple items of printed material delivered to a
523 single address.
524 (32) "Directory assistance" means an ancillary service of providing:
525 (a) address information; or
526 (b) telephone number information.
527 (33) (a) "Disposable home medical equipment or supplies" means medical equipment
528 or supplies that:
529 (i) cannot withstand repeated use; and
530 (ii) are purchased by, for, or on behalf of a person other than:
531 (A) a health care facility as defined in Section 26-21-2 ;
532 (B) a health care provider as defined in Section 78B-3-403 ;
533 (C) an office of a health care provider described in Subsection (33)(a)(ii)(B); or

534 (D) a person similar to a person described in Subsections (33)(a)(ii)(A) through (C).
535 (b) "Disposable home medical equipment or supplies" does not include:
536 (i) a drug;
537 (ii) durable medical equipment;
538 (iii) a hearing aid;
539 (iv) a hearing aid accessory;
540 (v) mobility enhancing equipment; or
541 (vi) tangible personal property used to correct impaired vision, including:
542 (A) eyeglasses; or
543 (B) contact lenses.
544 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
545 commission may by rule define what constitutes medical equipment or supplies.
546 (34) (a) "Drug" means a compound, substance, or preparation, or a component of a
547 compound, substance, or preparation that is:
548 (i) recognized in:
549 (A) the official United States Pharmacopoeia;
550 (B) the official Homeopathic Pharmacopoeia of the United States;
551 (C) the official National Formulary; or
552 (D) a supplement to a publication listed in Subsections (34)(a)(i)(A) through (C);
553 (ii) intended for use in the:
554 (A) diagnosis of disease;
555 (B) cure of disease;
556 (C) mitigation of disease;
557 (D) treatment of disease; or
558 (E) prevention of disease; or
559 (iii) intended to affect:
560 (A) the structure of the body; or
561 (B) any function of the body.

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

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

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

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

674 (C) nonferrous metal;
675 (D) paper;
676 (E) glass;
677 (F) plastic;
678 (G) textile; or
679 (H) rubber; and
680 (ii) the new products under Subsection (46)(d)(i) would otherwise be made with
681 nonrecycled materials; or
682 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
683 cogeneration facility as defined in Section 54-2-1 .
684 (47) (a) Except as provided in Subsection (47)(b), "installation charge" means a
685 charge for installing:
686 (i) tangible personal property; or
687 (ii) a product transferred electronically.
688 (b) "Installation charge" does not include a charge for repairs or renovations of:
689 (i) tangible personal property; or
690 (ii) a product transferred electronically.
691 (48) (a) "Lease" or "rental" means a transfer of possession or control of tangible
692 personal property or a product transferred electronically for:
693 (i) (A) a fixed term; or
694 (B) an indeterminate term; and
695 (ii) consideration.
696 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if
697 the amount of consideration may be increased or decreased by reference to the amount realized
698 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
699 Code.
700 (c) "Lease" or "rental" does not include:
701 (i) a transfer of possession or control of property under a security agreement or

702 deferred payment plan that requires the transfer of title upon completion of the required
703 payments;
704 (ii) a transfer of possession or control of property under an agreement that requires the
705 transfer of title:
706 (A) upon completion of required payments; and
707 (B) if the payment of an option price does not exceed the greater of:
708 (I) $100; or
709 (II) 1% of the total required payments; or
710 (iii) providing tangible personal property along with an operator for a fixed period of
711 time or an indeterminate period of time if the operator is necessary for equipment to perform
712 as designed.
713 (d) For purposes of Subsection (48)(c)(iii), an operator is necessary for equipment to
714 perform as designed if the operator's duties exceed the:
715 (i) set-up of tangible personal property;
716 (ii) maintenance of tangible personal property; or
717 (iii) inspection of tangible personal property.
718 (49) "Load and leave" means delivery to a purchaser by use of a tangible storage
719 media if the tangible storage media is not physically transferred to the purchaser.
720 (50) "Local taxing jurisdiction" means a:
721 (a) county that is authorized to impose an agreement sales and use tax;
722 (b) city that is authorized to impose an agreement sales and use tax; or
723 (c) town that is authorized to impose an agreement sales and use tax.
724 (51) "Manufactured home" is as defined in Section 58-56-3 .
725 (52) For purposes of Section 59-12-104 , "manufacturing facility" means:
726 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
727 Industrial Classification Manual of the federal Executive Office of the President, Office of
728 Management and Budget;
729 (b) a scrap recycler if:

730 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
731 one or more of the following items into prepared grades of processed materials for use in new
732 products:
733 (A) iron;
734 (B) steel;
735 (C) nonferrous metal;
736 (D) paper;
737 (E) glass;
738 (F) plastic;
739 (G) textile; or
740 (H) rubber; and
741 (ii) the new products under Subsection (52)(b)(i) would otherwise be made with
742 nonrecycled materials; or
743 (c) a cogeneration facility as defined in Section 54-2-1 .
744 (53) "Member of the immediate family of the producer" means a person who is related
745 to a producer described in Subsection 59-12-104 (20)(a) as a:
746 (a) child or stepchild, regardless of whether the child or stepchild is:
747 (i) an adopted child or adopted stepchild; or
748 (ii) a foster child or foster stepchild;
749 (b) grandchild or stepgrandchild;
750 (c) grandparent or stepgrandparent;
751 (d) nephew or stepnephew;
752 (e) niece or stepniece;
753 (f) parent or stepparent;
754 (g) sibling or stepsibling;
755 (h) spouse;
756 (i) person who is the spouse of a person described in Subsections (53)(a) through (g);
757 or

758 (j) person similar to a person described in Subsections (53)(a) through (i) as
759 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
760 Administrative Rulemaking Act.
761 (54) "Mobile home" is as defined in Section 58-56-3 .
762 (55) "Mobile telecommunications service" is as defined in the Mobile
763 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
764 (56) (a) "Mobile wireless service" means a telecommunications service, regardless of
765 the technology used, if:
766 (i) the origination point of the conveyance, routing, or transmission is not fixed;
767 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
768 (iii) the origination point described in Subsection (56)(a)(i) and the termination point
769 described in Subsection (56)(a)(ii) are not fixed.
770 (b) "Mobile wireless service" includes a telecommunications service that is provided
771 by a commercial mobile radio service provider.
772 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
773 commission may by rule define "commercial mobile radio service provider."
774 (57) (a) Except as provided in Subsection (57)(c), "mobility enhancing equipment"
775 means equipment that is:
776 (i) primarily and customarily used to provide or increase the ability to move from one
777 place to another;
778 (ii) appropriate for use in a:
779 (A) home; or
780 (B) motor vehicle; and
781 (iii) not generally used by persons with normal mobility.
782 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement
783 of the equipment described in Subsection (57)(a).
784 (c) Notwithstanding Subsection (57)(a), "mobility enhancing equipment" does not
785 include:

786 (i) a motor vehicle;
787 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
788 vehicle manufacturer;
789 (iii) durable medical equipment; or
790 (iv) a prosthetic device.
791 (58) "Model 1 seller" means a seller that has selected a certified service provider as the
792 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
793 use taxes other than the seller's obligation under Section 59-12-124 to remit a tax on the
794 seller's own purchases.
795 (59) "Model 2 seller" means a seller that:
796 (a) except as provided in Subsection (59)(b), has selected a certified automated system
797 to perform the seller's sales tax functions for agreement sales and use taxes; and
798 (b) notwithstanding Subsection (59)(a), retains responsibility for remitting all of the
799 sales tax:
800 (i) collected by the seller; and
801 (ii) to the appropriate local taxing jurisdiction.
802 (60) (a) Subject to Subsection (60)(b), "model 3 seller" means a seller that has:
803 (i) sales in at least five states that are members of the agreement;
804 (ii) total annual sales revenues of at least $500,000,000;
805 (iii) a proprietary system that calculates the amount of tax:
806 (A) for an agreement sales and use tax; and
807 (B) due to each local taxing jurisdiction; and
808 (iv) entered into a performance agreement with the governing board of the agreement.
809 (b) For purposes of Subsection (60)(a), "model 3 seller" includes an affiliated group of
810 sellers using the same proprietary system.
811 (61) "Modular home" means a modular unit as defined in Section 58-56-3 .
812 (62) "Motor vehicle" is as defined in Section 41-1a-102 .
813 (63) "Oil shale" means a group of fine black to dark brown shales containing

814 bituminous material that yields petroleum upon distillation.
815 (64) (a) "Other fuels" means products that burn independently to produce heat or
816 energy.
817 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
818 personal property.
819 (65) (a) "Paging service" means a telecommunications service that provides
820 transmission of a coded radio signal for the purpose of activating a specific pager.
821 (b) For purposes of Subsection (65)(a), the transmission of a coded radio signal
822 includes a transmission by message or sound.
823 (66) "Pawnbroker" is as defined in Section 13-32a-102 .
824 (67) "Pawn transaction" is as defined in Section 13-32a-102 .
825 (68) (a) "Permanently attached to real property" means that for tangible personal
826 property attached to real property:
827 (i) the attachment of the tangible personal property to the real property:
828 (A) is essential to the use of the tangible personal property; and
829 (B) suggests that the tangible personal property will remain attached to the real
830 property in the same place over the useful life of the tangible personal property; or
831 (ii) if the tangible personal property is detached from the real property, the detachment
832 would:
833 (A) cause substantial damage to the tangible personal property; or
834 (B) require substantial alteration or repair of the real property to which the tangible
835 personal property is attached.
836 (b) "Permanently attached to real property" includes:
837 (i) the attachment of an accessory to the tangible personal property if the accessory is:
838 (A) essential to the operation of the tangible personal property; and
839 (B) attached only to facilitate the operation of the tangible personal property;
840 (ii) a temporary detachment of tangible personal property from real property for a
841 repair or renovation if the repair or renovation is performed where the tangible personal

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

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

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

926 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
927 item; or
928 (iii) except as provided in Subsection (75)(c), food sold with an eating utensil
929 provided by the seller, including a:
930 (A) plate;
931 (B) knife;
932 (C) fork;
933 (D) spoon;
934 (E) glass;
935 (F) cup;
936 (G) napkin; or
937 (H) straw.
938 (b) "Prepared food" does not include:
939 (i) food that a seller only:
940 (A) cuts;
941 (B) repackages; or
942 (C) pasteurizes; or
943 (ii) (A) the following:
944 (I) raw egg;
945 (II) raw fish;
946 (III) raw meat;
947 (IV) raw poultry; or
948 (V) a food containing an item described in Subsections (75)(b)(ii)(A)(I) through (IV);
949 and
950 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
951 Food and Drug Administration's Food Code that a consumer cook the items described in
952 Subsection (75)(b)(ii)(A) to prevent food borne illness; or
953 (iii) the following if sold without eating utensils provided by the seller:

954 (A) food and food ingredients sold by a seller if the seller's proper primary
955 classification under the 2002 North American Industry Classification System of the federal
956 Executive Office of the President, Office of Management and Budget, is manufacturing in
957 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
958 Manufacturing;
959 (B) food and food ingredients sold in an unheated state:
960 (I) by weight or volume; and
961 (II) as a single item; or
962 (C) a bakery item, including:
963 (I) a bagel;
964 (II) a bar;
965 (III) a biscuit;
966 (IV) bread;
967 (V) a bun;
968 (VI) a cake;
969 (VII) a cookie;
970 (VIII) a croissant;
971 (IX) a danish;
972 (X) a donut;
973 (XI) a muffin;
974 (XII) a pastry;
975 (XIII) a pie;
976 (XIV) a roll;
977 (XV) a tart;
978 (XVI) a torte; or
979 (XVII) a tortilla.
980 (c) Notwithstanding Subsection (75)(a)(iii), an eating utensil provided by the seller
981 does not include the following used to transport the food:

982 (i) a container; or
983 (ii) packaging.
984 (76) "Prescription" means an order, formula, or recipe that is issued:
985 (a) (i) orally;
986 (ii) in writing;
987 (iii) electronically; or
988 (iv) by any other manner of transmission; and
989 (b) by a licensed practitioner authorized by the laws of a state.
990 (77) (a) Except as provided in Subsection (77)(b)(ii) or (iii), "prewritten computer
991 software" means computer software that is not designed and developed:
992 (i) by the author or other creator of the computer software; and
993 (ii) to the specifications of a specific purchaser.
994 (b) "Prewritten computer software" includes:
995 (i) a prewritten upgrade to computer software if the prewritten upgrade to the
996 computer software is not designed and developed:
997 (A) by the author or other creator of the computer software; and
998 (B) to the specifications of a specific purchaser;
999 (ii) notwithstanding Subsection (77)(a), computer software designed and developed by
1000 the author or other creator of the computer software to the specifications of a specific
1001 purchaser if the computer software is sold to a person other than the purchaser; or
1002 (iii) notwithstanding Subsection (77)(a) and except as provided in Subsection (77)(c),
1003 prewritten computer software or a prewritten portion of prewritten computer software:
1004 (A) that is modified or enhanced to any degree; and
1005 (B) if the modification or enhancement described in Subsection (77)(b)(iii)(A) is
1006 designed and developed to the specifications of a specific purchaser.
1007 (c) Notwithstanding Subsection (77)(b)(iii), "prewritten computer software" does not
1008 include a modification or enhancement described in Subsection (77)(b)(iii) if the charges for
1009 the modification or enhancement are:

1010 (i) reasonable; and
1011 (ii) separately stated on the invoice or other statement of price provided to the
1012 purchaser.
1013 (78) (a) "Private communication service" means a telecommunications service:
1014 (i) that entitles a customer to exclusive or priority use of one or more communications
1015 channels between or among termination points; and
1016 (ii) regardless of the manner in which the one or more communications channels are
1017 connected.
1018 (b) "Private communications service" includes the following provided in connection
1019 with the use of one or more communications channels:
1020 (i) an extension line;
1021 (ii) a station;
1022 (iii) switching capacity; or
1023 (iv) another associated service that is provided in connection with the use of one or
1024 more communications channels as defined in Section 59-12-215 .
1025 (79) (a) "Prosthetic device" means a device that is worn on or in the body to:
1026 (i) artificially replace a missing portion of the body;
1027 (ii) prevent or correct a physical deformity or physical malfunction; or
1028 (iii) support a weak or deformed portion of the body.
1029 (b) "Prosthetic device" includes:
1030 (i) parts used in the repairs or renovation of a prosthetic device;
1031 (ii) replacement parts for a prosthetic device;
1032 (iii) a dental prosthesis; or
1033 (iv) a hearing aid.
1034 (c) "Prosthetic device" does not include:
1035 (i) corrective eyeglasses; or
1036 (ii) contact lenses.
1037 (80) (a) "Protective equipment" means an item:

1038 (i) for human wear; and
1039 (ii) that is:
1040 (A) designed as protection:
1041 (I) to the wearer against injury or disease; or
1042 (II) against damage or injury of other persons or property; and
1043 (B) not suitable for general use.
1044 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1045 the commission shall make rules:
1046 (i) listing the items that constitute "protective equipment"; and
1047 (ii) that are consistent with the list of items that constitute "protective equipment"
1048 under the agreement.
1049 (81) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written
1050 or printed matter, other than a photocopy:
1051 (i) regardless of:
1052 (A) characteristics;
1053 (B) copyright;
1054 (C) form;
1055 (D) format;
1056 (E) method of reproduction; or
1057 (F) source; and
1058 (ii) made available in printed or electronic format.
1059 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1060 the commission may by rule define the term "photocopy."
1061 (82) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1062 (i) valued in money; and
1063 (ii) for which tangible personal property, a product transferred electronically, or
1064 services are:
1065 (A) sold;

1066 (B) leased; or
1067 (C) rented.
1068 (b) "Purchase price" and "sales price" include:
1069 (i) the seller's cost of the tangible personal property, a product transferred
1070 electronically, or services sold;
1071 (ii) expenses of the seller, including:
1072 (A) the cost of materials used;
1073 (B) a labor cost;
1074 (C) a service cost;
1075 (D) interest;
1076 (E) a loss;
1077 (F) the cost of transportation to the seller; or
1078 (G) a tax imposed on the seller;
1079 (iii) a charge by the seller for any service necessary to complete the sale; or
1080 (iv) consideration a seller receives from a person other than the purchaser if:
1081 (A) (I) the seller actually receives consideration from a person other than the
1082 purchaser; and
1083 (II) the consideration described in Subsection (82)(b)(iv)(A)(I) is directly related to a
1084 price reduction or discount on the sale;
1085 (B) the seller has an obligation to pass the price reduction or discount through to the
1086 purchaser;
1087 (C) the amount of the consideration attributable to the sale is fixed and determinable
1088 by the seller at the time of the sale to the purchaser; and
1089 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1090 seller to claim a price reduction or discount; and
1091 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1092 coupon, or other documentation with the understanding that the person other than the seller
1093 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;

1094 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1095 organization allowed a price reduction or discount, except that a preferred customer card that
1096 is available to any patron of a seller does not constitute membership in a group or organization
1097 allowed a price reduction or discount; or
1098 (III) the price reduction or discount is identified as a third party price reduction or
1099 discount on the:
1100 (Aa) invoice the purchaser receives; or
1101 (Bb) certificate, coupon, or other documentation the purchaser presents.
1102 (c) "Purchase price" and "sales price" do not include:
1103 (i) a discount:
1104 (A) in a form including:
1105 (I) cash;
1106 (II) term; or
1107 (III) coupon;
1108 (B) that is allowed by a seller;
1109 (C) taken by a purchaser on a sale; and
1110 (D) that is not reimbursed by a third party; or
1111 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1112 provided to the purchaser:
1113 (A) the following from credit extended on the sale of tangible personal property or
1114 services:
1115 (I) a carrying charge;
1116 (II) a financing charge; or
1117 (III) an interest charge;
1118 (B) a delivery charge;
1119 (C) an installation charge;
1120 (D) a manufacturer rebate on a motor vehicle; or
1121 (E) a tax or fee legally imposed directly on the consumer.

1122 (83) "Purchaser" means a person to whom:
1123 (a) a sale of tangible personal property is made;
1124 (b) a product is transferred electronically; or
1125 (c) a service is furnished.
1126 (84) "Regularly rented" means:
1127 (a) rented to a guest for value three or more times during a calendar year; or
1128 (b) advertised or held out to the public as a place that is regularly rented to guests for
1129 value.
1130 (85) "Renewable energy" means:
1131 (a) biomass energy;
1132 (b) hydroelectric energy;
1133 (c) geothermal energy;
1134 (d) solar energy; or
1135 (e) wind energy.
1136 (86) (a) "Renewable energy production facility" means a facility that:
1137 (i) uses renewable energy to produce electricity; and
1138 (ii) has a production capacity of 20 kilowatts or greater.
1139 (b) A facility is a renewable energy production facility regardless of whether the
1140 facility is:
1141 (i) connected to an electric grid; or
1142 (ii) located on the premises of an electricity consumer.
1143 (87) "Rental" is as defined in Subsection (48).
1144 (88) "Repairs or renovations of tangible personal property" means:
1145 (a) a repair or renovation of tangible personal property that is not permanently
1146 attached to real property; or
1147 (b) attaching tangible personal property or a product that is transferred electronically
1148 to other tangible personal property if the other tangible personal property to which the tangible
1149 personal property or product that is transferred electronically is attached is not permanently

1150 attached to real property.
1151 (89) "Research and development" means the process of inquiry or experimentation
1152 aimed at the discovery of facts, devices, technologies, or applications and the process of
1153 preparing those devices, technologies, or applications for marketing.
1154 (90) (a) "Residential telecommunications services" means a telecommunications
1155 service or an ancillary service that is provided to an individual for personal use:
1156 (i) at a residential address; or
1157 (ii) at an institution, including a nursing home or a school, if the telecommunications
1158 service or ancillary service is provided to and paid for by the individual residing at the
1159 institution rather than the institution.
1160 (b) For purposes of Subsection (90)(a), a residential address includes an:
1161 (i) apartment; or
1162 (ii) other individual dwelling unit.
1163 (91) "Residential use" means the use in or around a home, apartment building,
1164 sleeping quarters, and similar facilities or accommodations.
1165 (92) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1166 than:
1167 (a) resale;
1168 (b) sublease; or
1169 (c) subrent.
1170 (93) (a) "Retailer" means any person engaged in a regularly organized business in
1171 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
1172 and who is selling to the user or consumer and not for resale.
1173 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1174 engaged in the business of selling to users or consumers within the state.
1175 (94) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1176 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1177 Subsection 59-12-103 (1), for consideration.

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

1206 (B) account for the lease payments as payments made under a financing arrangement.
1207 (97) "Sales price" is as defined in Subsection (82).
1208 (98) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1209 amounts charged by a school:
1210 (i) sales that are directly related to the school's educational functions or activities
1211 including:
1212 (A) the sale of:
1213 (I) textbooks;
1214 (II) textbook fees;
1215 (III) laboratory fees;
1216 (IV) laboratory supplies; or
1217 (V) safety equipment;
1218 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1219 that:
1220 (I) a student is specifically required to wear as a condition of participation in a
1221 school-related event or school-related activity; and
1222 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1223 place of ordinary clothing;
1224 (C) sales of the following if the net or gross revenues generated by the sales are
1225 deposited into a school district fund or school fund dedicated to school meals:
1226 (I) food and food ingredients; or
1227 (II) prepared food; or
1228 (D) transportation charges for official school activities; or
1229 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1230 event or school-related activity.
1231 (b) "Sales relating to schools" does not include:
1232 (i) bookstore sales of items that are not educational materials or supplies;
1233 (ii) except as provided in Subsection (98)(a)(i)(B):

1234 (A) clothing;
1235 (B) clothing accessories or equipment;
1236 (C) protective equipment; or
1237 (D) sports or recreational equipment; or
1238 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1239 event or school-related activity if the amounts paid or charged are passed through to a person:
1240 (A) other than a:
1241 (I) school;
1242 (II) nonprofit organization authorized by a school board or a governing body of a
1243 private school to organize and direct a competitive secondary school activity; or
1244 (III) nonprofit association authorized by a school board or a governing body of a
1245 private school to organize and direct a competitive secondary school activity; and
1246 (B) that is required to collect sales and use taxes under this chapter.
1247 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1248 commission may make rules defining the term "passed through."
1249 (99) For purposes of this section and Section 59-12-104 , "school":
1250 (a) means:
1251 (i) an elementary school or a secondary school that:
1252 (A) is a:
1253 (I) public school; or
1254 (II) private school; and
1255 (B) provides instruction for one or more grades kindergarten through 12; or
1256 (ii) a public school district; and
1257 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1258 (100) "Seller" means a person that makes a sale, lease, or rental of:
1259 (a) tangible personal property;
1260 (b) a product transferred electronically; or
1261 (c) a service.

1262 (101) (a) "Semiconductor fabricating, processing, research, or development materials"
1263 means tangible personal property or a product transferred electronically if the tangible personal
1264 property or product transferred electronically is:
1265 (i) used primarily in the process of:
1266 (A) (I) manufacturing a semiconductor;
1267 (II) fabricating a semiconductor; or
1268 (III) research or development of a:
1269 (Aa) semiconductor; or
1270 (Bb) semiconductor manufacturing process; or
1271 (B) maintaining an environment suitable for a semiconductor; or
1272 (ii) consumed primarily in the process of:
1273 (A) (I) manufacturing a semiconductor;
1274 (II) fabricating a semiconductor; or
1275 (III) research or development of a:
1276 (Aa) semiconductor; or
1277 (Bb) semiconductor manufacturing process; or
1278 (B) maintaining an environment suitable for a semiconductor.
1279 (b) "Semiconductor fabricating, processing, research, or development materials"
1280 includes:
1281 (i) parts used in the repairs or renovations of tangible personal property or a product
1282 transferred electronically described in Subsection (101)(a); or
1283 (ii) a chemical, catalyst, or other material used to:
1284 (A) produce or induce in a semiconductor a:
1285 (I) chemical change; or
1286 (II) physical change;
1287 (B) remove impurities from a semiconductor; or
1288 (C) improve the marketable condition of a semiconductor.
1289 (102) "Senior citizen center" means a facility having the primary purpose of providing

1290 services to the aged as defined in Section 62A-3-101 .
1291 (103) "Simplified electronic return" means the electronic return:
1292 (a) described in Section 318(C) of the agreement; and
1293 (b) approved by the governing board of the agreement.
1294 (104) "Solar energy" means the sun used as the sole source of energy for producing
1295 electricity.
1296 (105) (a) "Sports or recreational equipment" means an item:
1297 (i) designed for human use; and
1298 (ii) that is:
1299 (A) worn in conjunction with:
1300 (I) an athletic activity; or
1301 (II) a recreational activity; and
1302 (B) not suitable for general use.
1303 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1304 the commission shall make rules:
1305 (i) listing the items that constitute "sports or recreational equipment"; and
1306 (ii) that are consistent with the list of items that constitute "sports or recreational
1307 equipment" under the agreement.
1308 (106) "State" means the state of Utah, its departments, and agencies.
1309 (107) "Storage" means any keeping or retention of tangible personal property or any
1310 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
1311 sale in the regular course of business.
1312 (108) (a) Except as provided in Subsection (108) (d) or (e), "tangible personal
1313 property" means personal property that:
1314 (i) may be:
1315 (A) seen;
1316 (B) weighed;
1317 (C) measured;

1318 (D) felt; or
1319 (E) touched; or
1320 (ii) is in any manner perceptible to the senses.
1321 (b) "Tangible personal property" includes:
1322 (i) electricity;
1323 (ii) water;
1324 (iii) gas;
1325 (iv) steam; or
1326 (v) prewritten computer software.
1327 (c) "Tangible personal property" includes the following regardless of whether the item
1328 is attached to real property:
1329 (i) a dishwasher;
1330 (ii) a dryer;
1331 (iii) a freezer;
1332 (iv) a microwave;
1333 (v) a refrigerator;
1334 (vi) a stove;
1335 (vii) a washer; or
1336 (viii) an item similar to Subsections (108)(c)(i) through (vii) as determined by the
1337 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1338 Rulemaking Act.
1339 (d) "Tangible personal property" does not include a product that is transferred
1340 electronically.
1341 (e) "Tangible personal property" does not include the following if attached to real
1342 property, regardless of whether the attachment to real property is only through a line that
1343 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by
1344 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1345 Rulemaking Act:

1346 (i) a hot water heater;
1347 (ii) a water filtration system; or
1348 (iii) a water softener system.
1349 (109) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1350 and require further processing other than mechanical blending before becoming finished
1351 petroleum products.
1352 (110) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1353 software" means an item listed in Subsection (110)(b) if that item is purchased or leased
1354 primarily to enable or facilitate one or more of the following to function:
1355 (i) telecommunications switching or routing equipment, machinery, or software; or
1356 (ii) telecommunications transmission equipment, machinery, or software.
1357 (b) The following apply to Subsection (110)(a):
1358 (i) a pole;
1359 (ii) software;
1360 (iii) a supplementary power supply;
1361 (iv) temperature or environmental equipment or machinery;
1362 (v) test equipment;
1363 (vi) a tower; or
1364 (vii) equipment, machinery, or software that functions similarly to an item listed in
1365 Subsections (110)(b)(i) through (vi) as determined by the commission by rule made in
1366 accordance with Subsection (110)(c).
1367 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1368 commission may by rule define what constitutes equipment, machinery, or software that
1369 functions similarly to an item listed in Subsections (110)(b)(i) through (vi).
1370 (111) "Telecommunications equipment, machinery, or software required for 911
1371 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1372 Sec. 20.18.
1373 (112) "Telecommunications maintenance or repair equipment, machinery, or software"

1374 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1375 one or more of the following, regardless of whether the equipment, machinery, or software is
1376 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1377 following:
1378 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1379 (b) telecommunications switching or routing equipment, machinery, or software; or
1380 (c) telecommunications transmission equipment, machinery, or software.
1381 (113) (a) "Telecommunications service" means the electronic conveyance, routing, or
1382 transmission of audio, data, video, voice, or any other information or signal to a point, or
1383 among or between points.
1384 (b) "Telecommunications service" includes:
1385 (i) an electronic conveyance, routing, or transmission with respect to which a
1386 computer processing application is used to act:
1387 (A) on the code, form, or protocol of the content;
1388 (B) for the purpose of electronic conveyance, routing, or transmission; and
1389 (C) regardless of whether the service:
1390 (I) is referred to as voice over Internet protocol service; or
1391 (II) is classified by the Federal Communications Commission as enhanced or value
1392 added;
1393 (ii) an 800 service;
1394 (iii) a 900 service;
1395 (iv) a fixed wireless service;
1396 (v) a mobile wireless service;
1397 (vi) a postpaid calling service;
1398 (vii) a prepaid calling service;
1399 (viii) a prepaid wireless calling service; or
1400 (ix) a private communications service.
1401 (c) "Telecommunications service" does not include:

1402 (i) advertising, including directory advertising;
1403 (ii) an ancillary service;
1404 (iii) a billing and collection service provided to a third party;
1405 (iv) a data processing and information service if:
1406 (A) the data processing and information service allows data to be:
1407 (I) (Aa) acquired;
1408 (Bb) generated;
1409 (Cc) processed;
1410 (Dd) retrieved; or
1411 (Ee) stored; and
1412 (II) delivered by an electronic transmission to a purchaser; and
1413 (B) the purchaser's primary purpose for the underlying transaction is the processed
1414 data or information;
1415 (v) installation or maintenance of the following on a customer's premises:
1416 (A) equipment; or
1417 (B) wiring;
1418 (vi) Internet access service;
1419 (vii) a paging service;
1420 (viii) a product transferred electronically, including:
1421 (A) music;
1422 (B) reading material;
1423 (C) a ring tone;
1424 (D) software; or
1425 (E) video;
1426 (ix) a radio and television audio and video programming service:
1427 (A) regardless of the medium; and
1428 (B) including:
1429 (I) furnishing conveyance, routing, or transmission of a television audio and video

1430 programming service by a programming service provider;
1431 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1432 (III) audio and video programming services delivered by a commercial mobile radio
1433 service provider as defined in 47 C.F.R. Sec. 20.3;
1434 (x) a value-added nonvoice data service; or
1435 (xi) tangible personal property.
1436 (114) (a) "Telecommunications service provider" means a person that:
1437 (i) owns, controls, operates, or manages a telecommunications service; and
1438 (ii) engages in an activity described in Subsection (114)(a)(i) for the shared use with
1439 or resale to any person of the telecommunications service.
1440 (b) A person described in Subsection (114)(a) is a telecommunications service
1441 provider whether or not the Public Service Commission of Utah regulates:
1442 (i) that person; or
1443 (ii) the telecommunications service that the person owns, controls, operates, or
1444 manages.
1445 (115) (a) "Telecommunications switching or routing equipment, machinery, or
1446 software" means an item listed in Subsection (115)(b) if that item is purchased or leased
1447 primarily for switching or routing:
1448 (i) an ancillary service;
1449 (ii) data communications;
1450 (iii) voice communications; or
1451 (iv) telecommunications service.
1452 (b) The following apply to Subsection (115)(a):
1453 (i) a bridge;
1454 (ii) a computer;
1455 (iii) a cross connect;
1456 (iv) a modem;
1457 (v) a multiplexer;

1458 (vi) plug in circuitry;
1459 (vii) a router;
1460 (viii) software;
1461 (ix) a switch; or
1462 (x) equipment, machinery, or software that functions similarly to an item listed in
1463 Subsections (115)(b)(i) through (ix) as determined by the commission by rule made in
1464 accordance with Subsection (115)(c).
1465 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1466 commission may by rule define what constitutes equipment, machinery, or software that
1467 functions similarly to an item listed in Subsections (115)(b)(i) through (ix).
1468 (116) (a) "Telecommunications transmission equipment, machinery, or software"
1469 means an item listed in Subsection (116)(b) if that item is purchased or leased primarily for
1470 sending, receiving, or transporting:
1471 (i) an ancillary service;
1472 (ii) data communications;
1473 (iii) voice communications; or
1474 (iv) telecommunications service.
1475 (b) The following apply to Subsection (116)(a):
1476 (i) an amplifier;
1477 (ii) a cable;
1478 (iii) a closure;
1479 (iv) a conduit;
1480 (v) a controller;
1481 (vi) a duplexer;
1482 (vii) a filter;
1483 (viii) an input device;
1484 (ix) an input/output device;
1485 (x) an insulator;

1486 (xi) microwave machinery or equipment;
1487 (xii) an oscillator;
1488 (xiii) an output device;
1489 (xiv) a pedestal;
1490 (xv) a power converter;
1491 (xvi) a power supply;
1492 (xvii) a radio channel;
1493 (xviii) a radio receiver;
1494 (xix) a radio transmitter;
1495 (xx) a repeater;
1496 (xxi) software;
1497 (xxii) a terminal;
1498 (xxiii) a timing unit;
1499 (xxiv) a transformer;
1500 (xxv) a wire; or
1501 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1502 Subsections (116)(b)(i) through (xxv) as determined by the commission by rule made in
1503 accordance with Subsection (116)(c).
1504 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1505 commission may by rule define what constitutes equipment, machinery, or software that
1506 functions similarly to an item listed in Subsections (116)(b)(i) through (xxv).
1507 (117) "Tobacco" means:
1508 (a) a cigarette;
1509 (b) a cigar;
1510 (c) chewing tobacco;
1511 (d) pipe tobacco; or
1512 (e) any other item that contains tobacco.
1513 (118) "Unassisted amusement device" means an amusement device, skill device, or

1514 ride device that is started and stopped by the purchaser or renter of the right to use or operate
1515 the amusement device, skill device, or ride device.
1516 (119) (a) "Use" means the exercise of any right or power over tangible personal
1517 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
1518 incident to the ownership or the leasing of that tangible personal property, product transferred
1519 electronically, or service.
1520 (b) "Use" does not include the sale, display, demonstration, or trial of tangible
1521 personal property, a product transferred electronically, or a service in the regular course of
1522 business and held for resale.
1523 (120) "Value-added nonvoice data service" means a service:
1524 (a) that otherwise meets the definition of a telecommunications service except that a
1525 computer processing application is used to act primarily for a purpose other than conveyance,
1526 routing, or transmission; and
1527 (b) with respect to which a computer processing application is used to act on data or
1528 information:
1529 (i) code;
1530 (ii) content;
1531 (iii) form; or
1532 (iv) protocol.
1533 (121) (a) Subject to Subsection (121)(b), "vehicle" means the following that are
1534 required to be titled, registered, or titled and registered:
1535 (i) an aircraft as defined in Section 72-10-102 ;
1536 (ii) a vehicle as defined in Section 41-1a-102 ;
1537 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1538 (iv) a vessel as defined in Section 41-1a-102 .
1539 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1540 (i) a vehicle described in Subsection (121)(a); or
1541 (ii) (A) a locomotive;

1542 (B) a freight car;
1543 (C) railroad work equipment; or
1544 (D) other railroad rolling stock.
1545 (122) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1546 exchanging a vehicle as defined in Subsection (121).
1547 (123) (a) "Vertical service" means an ancillary service that:
1548 (i) is offered in connection with one or more telecommunications services; and
1549 (ii) offers an advanced calling feature that allows a customer to:
1550 (A) identify a caller; and
1551 (B) manage multiple calls and call connections.
1552 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1553 conference bridging service.
1554 (124) (a) "Voice mail service" means an ancillary service that enables a customer to
1555 receive, send, or store a recorded message.
1556 (b) "Voice mail service" does not include a vertical service that a customer is required
1557 to have in order to utilize a voice mail service.
1558 (125) (a) Except as provided in Subsection (125)(b), "waste energy facility" means a
1559 facility that generates electricity:
1560 (i) using as the primary source of energy waste materials that would be placed in a
1561 landfill or refuse pit if it were not used to generate electricity, including:
1562 (A) tires;
1563 (B) waste coal; or
1564 (C) oil shale; and
1565 (ii) in amounts greater than actually required for the operation of the facility.
1566 (b) "Waste energy facility" does not include a facility that incinerates:
1567 (i) municipal solid waste;
1568 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1569 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.

1570 (126) "Watercraft" means a vessel as defined in Section 73-18-2 .
1571 (127) "Wind energy" means wind used as the sole source of energy to produce
1572 electricity.
1573 (128) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1574 location by the United States Postal Service.
1575 Section 5. Section 59-12-211 is amended to read:
1576 59-12-211. Definitions -- Location of certain transactions -- Reports to
1577 commission -- Direct payment provision for a seller making certain purchases --
1578 Exceptions.
1579 (1) As used in this section:
1580 (a) (i) "Receipt" and "receive" mean:
1581 (A) taking possession of tangible personal property;
1582 (B) making first use of a service; or
1583 (C) for a product transferred electronically, the earlier of:
1584 (I) taking possession of the product transferred electronically; or
1585 (II) making first use of the product transferred electronically.
1586 (ii) "Receipt" and "receive" do not include possession by a shipping company on
1587 behalf of a purchaser.
1588 (b) "Transportation equipment" means:
1589 (i) a locomotive or rail car that is used to carry a person or property in interstate
1590 commerce;
1591 (ii) a truck or truck-tractor:
1592 (A) with a gross vehicle weight rating of 10,001 pounds or more;
1593 (B) registered under Section 41-1a-301 ; and
1594 (C) operated under the authority of a carrier authorized and certificated:
1595 (I) by the United States Department of Transportation or another federal authority; and
1596 (II) to engage in carrying a person or property in interstate commerce;
1597 (iii) a trailer, semitrailer, or passenger bus that is:

1598 (A) registered under Section 41-1a-301 ; and
1599 (B) operated under the authority of a carrier authorized and certificated:
1600 (I) by the United States Department of Transportation or another federal authority; and
1601 (II) to engage in carrying a person or property in interstate commerce;
1602 (iv) an aircraft that is operated by an air carrier authorized and certificated:
1603 (A) by the United States Department of Transportation or another federal or foreign
1604 authority; and
1605 (B) to engage in carrying a person or property in interstate commerce; or
1606 (v) a container designed for use on, or a component part attached or secured on, an
1607 item of equipment listed in[,] Subsections (1)(b)(i) through (iv).
1608 (2) Except as provided in Subsections (8) and (13), if tangible personal property, a
1609 product transferred electronically, or a service that is subject to taxation under this chapter is
1610 received by a purchaser at a business location of a seller, the location of the transaction is the
1611 business location of the seller.
1612 (3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
1613 (11), and (13), if tangible personal property, a product transferred electronically, or a service
1614 that is subject to taxation under this chapter is not received by a purchaser at a business
1615 location of a seller, the location of the transaction is the location where the purchaser takes
1616 receipt of the tangible personal property or service.
1617 (4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
1618 (11), and (13), if Subsection (2) or (3) does not apply, the location of the transaction is the
1619 location indicated by an address for or other information on the purchaser if:
1620 (a) the address or other information is available from the seller's business records; and
1621 (b) use of the address or other information from the seller's records does not constitute
1622 bad faith.
1623 (5) (a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
1624 (11), and (13), if Subsection (2), (3), or (4) does not apply, the location of the transaction is
1625 the location indicated by an address for the purchaser if:

1626 (i) the address is obtained during the consummation of the transaction; and
1627 (ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.
1628 (b) An address used under Subsection (5)(a) includes the address of a purchaser's
1629 payment instrument if no other address is available.
1630 (6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9),
1631 (11), and (13), if Subsection (2), (3), (4), or (5) does not apply or if a seller does not have
1632 sufficient information to apply Subsection (2), (3), (4), or (5), the location of the transaction is
1633 the location indicated by the address from which:
1634 (a) except as provided in Subsection (6)(b), for tangible personal property that is
1635 subject to taxation under this chapter, the tangible personal property is shipped;
1636 (b) for computer software delivered electronically or for a product transferred
1637 electronically that is subject to taxation under this chapter, the computer software or product
1638 transferred electronically is first available for transmission by the seller; or
1639 (c) for a service that is subject to taxation under this chapter, the service is provided.
1640 (7) (a) For purposes of this Subsection (7), "shared ZIP Code" means a nine-digit ZIP
1641 Code that is located within two or more local taxing jurisdictions.
1642 (b) If the location of a transaction determined under Subsections (3) through (6) is in a
1643 shared ZIP Code, the location of the transaction is:
1644 (i) if there is only one local taxing jurisdiction that imposes the lowest agreement
1645 combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the
1646 lowest agreement combined tax rate; or
1647 (ii) if two or more local taxing jurisdictions impose the lowest agreement combined
1648 tax rate for the shared ZIP Code, the local taxing jurisdiction that:
1649 (A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and
1650 (B) has located within the local taxing jurisdiction the largest number of street
1651 addresses within the shared ZIP Code.
1652 (c) [For] Notwithstanding any provision under this chapter authorizing or requiring
1653 the imposition of a sales and use tax, for purposes of Subsection (7)(b), a seller shall collect a

1654 sales and use tax imposed under this chapter at the lowest agreement combined tax rate
1655 imposed within the local taxing jurisdiction in which the transaction is located under
1656 Subsection (7)(b) [notwithstanding:].
1657 [(i) Section 59-12-204 ;]
1658 [(ii) Section 59-12-401 ;]
1659 [(iii) Section 59-12-402 ;]
1660 [(iv) Section 59-12-501 ;]
1661 [(v) Section 59-12-502 ;]
1662 [(vi) Section 59-12-703 ;]
1663 [(vii) Section 59-12-802 ;]
1664 [(viii) Section 59-12-804 ;]
1665 [(ix) Section 59-12-1001 ;]
1666 [(x) Section 59-12-1102 ;]
1667 [(xi) Section 59-12-1302 ;]
1668 [(xii) Section 59-12-1402 ;]
1669 [(xiii) Section 59-12-1503 ;]
1670 [(xiv) Section 59-12-1703 ; or]
1671 [(xv) Section 59-12-1802 .]
1672 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1673 the commission may make rules:
1674 (i) providing for the circumstances under which a seller has exercised due diligence in
1675 determining the nine-digit ZIP Code for an address; or
1676 (ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction
1677 within which a transaction is located if a seller is unable to determine the local taxing
1678 jurisdiction within which the transaction is located under Subsection (7)(b).
1679 (8) The location of a transaction made with a direct payment permit described in
1680 Section 59-12-107.1 is the location where receipt of the tangible personal property, product, or
1681 service by the purchaser occurs.

1682 (9) The location of a purchase of direct mail is the location described in Subsection
1683 (6), if the purchaser of the direct mail:
1684 (a) has not been issued a direct payment permit under Section 59-12-107.1 ; and
1685 (b) does not provide the seller the form or information described in Subsection
1686 59-12-123 (1).
1687 (10) (a) Except as provided in Subsection (10)(b), the location of a transaction
1688 determined under Subsections (3) through (6), (8), or (9), is the local taxing jurisdiction within
1689 which:
1690 (i) the nine-digit ZIP Code assigned to the location determined under Subsections (3)
1691 through (6), (8), or (9) is located; or
1692 (ii) the five-digit ZIP Code assigned to the location determined under Subsections (3)
1693 through (6), (8), or (9) is located if:
1694 (A) a nine-digit ZIP Code is not available for the location determined under
1695 Subsections (3) through (6), (8), or (9); or
1696 (B) after exercising due diligence, a seller or certified service provider is unable to
1697 determine a nine-digit ZIP Code for the location determined under Subsections (3) through
1698 (6), (8), or (9).
1699 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1700 the commission may make rules for determining the local taxing jurisdiction within which a
1701 transaction is located if a seller or certified service provider is unable to determine the local
1702 taxing jurisdiction within which the transaction is located under Subsection (10)(a).
1703 (11) (a) As used in this Subsection (11), "florist delivery transaction" means a
1704 transaction commenced by a florist that transmits an order:
1705 (i) by:
1706 (A) telegraph;
1707 (B) telephone; or
1708 (C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and
1709 (ii) for delivery to another place:

1710 (A) in this state; or
1711 (B) outside this state.
1712 (b) Notwithstanding Subsections (3) through (6), beginning on January 1, 2009, and
1713 ending on December 31, 2009, the location of a florist delivery transaction is the business
1714 location of the florist that commences the florist delivery transaction.
1715 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1716 commission may by rule:
1717 (i) define:
1718 (A) "business location"; and
1719 (B) "florist";
1720 (ii) define what constitutes a means of communication similar to Subsection
1721 (11)(a)(i)(A) or (B); and
1722 (iii) provide procedures for determining when a transaction is commenced.
1723 (12) (a) A tax collected under this chapter shall be reported to the commission on a
1724 form that identifies the location of each transaction that occurs during the return filing period.
1725 (b) The form described in Subsection (12)(a) shall be filed with the commission as
1726 required under this chapter.
1727 (13) This section does not apply to:
1728 (a) amounts charged by a seller for:
1729 (i) telecommunications service; or
1730 (ii) the retail sale or transfer of:
1731 (A) a motor vehicle other than a motor vehicle that is transportation equipment;
1732 (B) an aircraft other than an aircraft that is transportation equipment;
1733 (C) a watercraft;
1734 (D) a modular home;
1735 (E) a manufactured home; or
1736 (F) a mobile home; or
1737 (iii) except as provided in Section 59-12-214 , the lease or rental of tangible personal

1738 property other than tangible personal property that is transportation equipment;
1739 (b) a tax paid under this chapter:
1740 (i) by a seller; and
1741 (ii) for the seller's purchases; or
1742 (c) a retail sale of tangible personal property or a product transferred electronically if:
1743 (i) the seller receives the order for the tangible personal property or product transferred
1744 electronically in this state;
1745 (ii) receipt of the tangible personal property or product transferred electronically by the
1746 purchaser or the purchaser's donee occurs in this state;
1747 (iii) the location where receipt of the tangible personal property or product transferred
1748 electronically by the purchaser occurs is determined in accordance with Subsections (3)
1749 through (5); and
1750 (iv) at the time the seller receives the order, the record keeping system that the seller
1751 uses to calculate the proper amount of tax imposed under this chapter captures the location
1752 where the order is received.
1753 Section 6. Section 59-12-602 is amended to read:
1754 59-12-602. Definitions.
1755 As used in this part:
1756 (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
1757 significance, as defined by the Transportation Commission by rule made in accordance with
1758 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1759 (b) "Airport facility" includes:
1760 (i) an appurtenance to an airport, including a fixed guideway [as defined in Section
1761 59-12-1702 ] that provides transportation service to or from the airport;
1762 (ii) a control tower, including a radar system;
1763 (iii) a public area of an airport; or
1764 (iv) a terminal facility.
1765 (2) "Convention facility" means any publicly owned or operated convention center,

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

1794 (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
1795 rate imposed within a city, town, or the unincorporated area of a county of the first or second
1796 class is a percentage equal to the difference between:
1797 (i) .30%; and
1798 (ii) (A) for a city within the county of the first or second class, the highest tax rate
1799 imposed within that city under:
1800 (I) Section [ 59-12-501 ] 59-12-2213 ;
1801 (II) Section [ 59-12-1001 ] 59-12-2215 ; or
1802 (III) Section [ 59-12-1503 ] 59-12-2216 ;
1803 (B) for a town within the county of the first or second class, the highest tax rate
1804 imposed within that town under:
1805 (I) Section [ 59-12-501 ] 59-12-2213 ;
1806 (II) Section [ 59-12-1001 ] 59-12-2215 ; or
1807 (III) Section [ 59-12-1503 ] 59-12-2216 ; or
1808 (C) for the unincorporated area of the county of the first or second class, the highest
1809 tax rate imposed within that unincorporated area under:
1810 (I) Section [ 59-12-501 ] 59-12-2213 ;
1811 (II) Section [ 59-12-1001 ] 59-12-2215 ; or
1812 (III) Section [ 59-12-1503 ] 59-12-2216 .
1813 (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
1814 a county of the first or second class, the highest tax rate imposed under Section [ 59-12-501 ]
1815 59-12-2213 , [ 59-12-1001 ] 59-12-2215 , or [ 59-12-1503 ] 59-12-2216 within that city, town, or
1816 unincorporated area of the county of the first or second class is .30%, the state may not impose
1817 a tax under this part within that city, town, or unincorporated area.
1818 (4) (a) The state may not impose a tax under this part on:
1819 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1820 are exempt from taxation under Section 59-12-104 ; or
1821 (ii) except as provided in Subsection (4)(b), amounts paid or charged for food and

1822 food ingredients.
1823 (b) The state shall impose a tax under this part on amounts paid or charged for food
1824 and food ingredients if the food and food ingredients are sold as part of a bundled transaction
1825 attributable to food and ingredients and tangible personal property other than food and food
1826 ingredients.
1827 (5) For purposes of Subsection (1), the location of a transaction shall be determined in
1828 accordance with Sections 59-12-211 through 59-12-215 .
1829 (6) The commission shall distribute the revenues the state collects from the sales and
1830 use tax under this part, after subtracting amounts a seller retains in accordance with Section
1831 59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
1832 (a) within which the state imposes a tax under this part; and
1833 (b) in proportion to the revenues collected from the sales and use tax under this part
1834 within each city, town, and unincorporated area within which the state imposes a tax under
1835 this part.
1836 Section 8. Section 59-12-2201 is enacted to read:
1837 Part 22. Local Option Sales and Use Taxes for Transportation Act
1838 59-12-2201. Title.
1839 This part is known as the "Local Option Sales and Use Taxes for Transportation Act."
1840 Section 9. Section 59-12-2202 is enacted to read:
1841 59-12-2202. Definitions.
1842 As used in this part:
1843 (1) "Airline" is as defined in Section 59-2-102 .
1844 (2) "Airport facility" is as defined in Section 59-12-602 .
1845 (3) "Airport of regional significance" means an airport identified by the Federal
1846 Aviation Administration in the most current National Plan of Integrated Airport Systems or an
1847 update to the National Plan of Integrated Airport Systems.
1848 (4) "Annexation" means an annexation to:
1849 (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or

1850 (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
1851 (5) "Annexing area" means an area that is annexed into a county, city, or town.
1852 (6) "Council of governments" is as defined in Section 72-2-117.5 .
1853 (7) "Fixed guideway" is as defined in Section 59-12-102 .
1854 (8) "Major collector highway" is as defined in Section 72-4-102.5 .
1855 (9) "Metropolitan planning organization" is as defined in Section 72-1-208.5 .
1856 (10) "Minor arterial highway" is as defined in Section 72-4-102.5 .
1857 (11) "Minor collector road" is as defined in Section 72-4-102.5 .
1858 (12) "Principal arterial highway" is as defined in Section 72-4-102.5 .
1859 (13) "Regionally significant transportation facility" means:
1860 (a) in a county of the first or second class:
1861 (i) a principal arterial highway;
1862 (ii) a minor arterial highway;
1863 (iii) a fixed guideway that:
1864 (A) extends across two or more cities or unincorporated areas; or
1865 (B) is an extension to an existing fixed guideway; or
1866 (iv) an airport of regional significance; or
1867 (b) in a county of the third, fourth, fifth, or sixth class:
1868 (i) a principal arterial highway;
1869 (ii) a minor arterial highway;
1870 (iii) a major collector highway;
1871 (iv) a minor collector road; or
1872 (v) an airport of regional significance.
1873 (14) "State highway" means a highway designated as a state highway under Title 72,
1874 Chapter 4, Designation of State Highways Act.
1875 (15) (a) Subject to Subsection (15)(b), "system for public transit" has the same
1876 meaning as "public transit" as defined in Section 17B-2a-802 .
1877 (b) "System for public transit" includes:

1878 (i) the following costs related to public transit:
1879 (A) maintenance costs; or
1880 (B) operating costs;
1881 (ii) a fixed guideway;
1882 (iii) a park and ride facility;
1883 (iv) a passenger station or passenger terminal;
1884 (v) a right-of-way for public transit; or
1885 (vi) the following that serve a public transit facility:
1886 (A) a maintenance facility;
1887 (B) a platform;
1888 (C) a repair facility;
1889 (D) a roadway;
1890 (E) a storage facility;
1891 (F) a utility line; or
1892 (G) a facility or item similar to Subsections (15)(b)(vi)(A) through (F).
1893 Section 10. Section 59-12-2203 is enacted to read:
1894 59-12-2203. Authority to impose a sales and use tax under this part.
1895 (1) As provided in this Subsection (1), one of the following sales and use taxes may be
1896 imposed within the boundaries of a local taxing jurisdiction:
1897 (a) a county, city, or town may impose the sales and use tax authorized by Section
1898 59-12-2213 in accordance with Section 59-12-2213 ; or
1899 (b) a city or town may impose the sales and use tax authorized by Section 59-12-2215
1900 in accordance with Section 59-12-2215 .
1901 (2) As provided in this Subsection (2), one of the following sales and use taxes may be
1902 imposed within the boundaries of a local taxing jurisdiction:
1903 (a) a county, city, or town may impose the sales and use tax authorized by Section
1904 59-12-2214 in accordance with Section 59-12-2214 ; or
1905 (b) a county may impose the sales and use tax authorized by Section 59-12-2216 in

1906 accordance with Section 59-12-2216 .
1907 (3) As provided in this Subsection (3), one of the following sales and use taxes may be
1908 imposed within the boundaries of a local taxing jurisdiction:
1909 (a) a county may impose the sales and use tax authorized by Section 59-12-2217 in
1910 accordance with Section 59-12-2217 ; or
1911 (b) a county, city, or town may impose the sales and use tax authorized by Section
1912 59-12-2218 in accordance with Section 59-12-2218 .
1913 Section 11. Section 59-12-2204 is enacted to read:
1914 59-12-2204. Transactions that may not be subject to taxation under this part --
1915 Exception for food and food ingredients sold as part of a bundled transaction.
1916 (1) A county, city, or town may not impose a sales and use tax under this part on:
1917 (a) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1918 are exempt from taxation under Section 59-12-104 ; and
1919 (b) except as provided in Subsection (2), amounts paid or charged for food and food
1920 ingredients.
1921 (2) A county, city, or town imposing a sales and use tax under this part shall impose
1922 the sales and use tax on amounts paid or charged for food and food ingredients if the food and
1923 food ingredients are sold as part of a bundled transaction attributable to food and food
1924 ingredients and tangible personal property other than food and food ingredients.
1925 Section 12. Section 59-12-2205 is enacted to read:
1926 59-12-2205. Determination of the location of a transaction.
1927 For purposes of this part, the location of a transaction shall be determined in
1928 accordance with Sections 59-12-211 through 59-12-215 .
1929 Section 13. Section 59-12-2206 is enacted to read:
1930 59-12-2206. Administration, collection, and enforcement of a sales and use tax
1931 under this part -- Transmission of revenues monthly by electronic funds transfer --
1932 Transfer of revenues to a public transit district.
1933 (1) Except as provided in Subsection (2), the commission shall administer, collect, and

1934 enforce a sales and use tax imposed under this part.
1935 (2) The commission shall administer, collect, and enforce a sales and use tax imposed
1936 under this part in accordance with:
1937 (a) the same procedures used to administer, collect, and enforce a tax under:
1938 (i) Part 1, Tax Collection; or
1939 (ii) Part 2, Local Sales and Use Tax Act; and
1940 (b) Chapter 1, General Taxation Policies.
1941 (3) A sales and use tax under this part is not subject to Subsections 59-12-205 (2)
1942 through (6).
1943 (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
1944 provision of this part, the state treasurer shall transmit revenues collected within a county, city,
1945 or town from a sales and use tax under this part to the county, city, or town legislative body
1946 monthly by electronic funds transfer.
1947 (5) Subject to Section 59-12-2207 , the state treasurer shall transfer revenues collected
1948 within a county, city, or town from a sales and use tax under this part directly to a public
1949 transit district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, if the
1950 county, city, or town legislative body:
1951 (a) provides written notice to the state treasurer requesting the transfer; and
1952 (b) designates the public transit district to which the county, city, or town legislative
1953 body requests the state treasurer to transfer the revenues.
1954 Section 14. Section 59-12-2207 is enacted to read:
1955 59-12-2207. Commission authority to retain a percentage of revenues collected
1956 from a sales and use tax under this part -- Deposit of revenues into the Sales and Use Tax
1957 Administrative Fees Account -- Expenditure of revenues.
1958 (1) The commission may retain a percentage of revenues collected from a sales and
1959 use tax under this part of not to exceed the lesser of:
1960 (a) 1.50%; or
1961 (b) a percentage of revenues collected from a sales and use tax under this part

1962 sufficient to cover the cost to the commission of administering this part.
1963 (2) The commission shall:
1964 (a) deposit any revenues the commission retains under Subsection (1) into the Sales
1965 and Use Tax Administrative Fees Account; and
1966 (b) expend the revenues described in Subsection (2)(a) as provided in Subsection
1967 59-12-206 (2).
1968 Section 15. Section 59-12-2208 is enacted to read:
1969 59-12-2208. Legislative body approval requirements -- Voter approval
1970 requirements.
1971 (1) Subject to the other provisions of this section, before imposing a sales and use tax
1972 under this part, a county, city, or town legislative body shall:
1973 (a) obtain approval to impose the sales and use tax from a majority of the members of
1974 the county, city, or town legislative body; and
1975 (b) submit an opinion question to the county's, city's, or town's registered voters voting
1976 on the imposition of the sales and use tax so that each registered voter has the opportunity to
1977 express the registered voter's opinion on whether a sales and use tax should be imposed under
1978 this section.
1979 (2) The opinion question required by this section shall state:
1980 "Shall (insert the name of the county, city, or town), Utah, be authorized to impose a
1981 (insert the tax rate of the sales and use tax) sales and use tax for (list the purposes for which
1982 the revenues collected from the sales and use tax shall be expended)?"
1983 (3) (a) Subject to Subsection (3)(b), the election required by this section shall be held:
1984 (i) at a regular general election conducted in accordance with the procedures and
1985 requirements of Title 20A, Election Code, governing regular general elections; or
1986 (ii) at a municipal general election conducted in accordance with the procedures and
1987 requirements of Section 20A-1-202 .
1988 (b) (i) Subject to Subsection (3)(b)(ii), the county clerk of the county in which the
1989 opinion question required by this section will be submitted to registered voters shall, no later

1990 than 15 days before the date of the election:
1991 (A) publish a notice:
1992 (I) once in a newspaper published in that county; and
1993 (II) as required in Section 45-1-101 ; or
1994 (B) (I) cause a copy of the notice to be posted in a conspicuous place most likely to
1995 give notice of the election to the registered voters voting on the imposition of the sales and use
1996 tax; and
1997 (II) prepare an affidavit of that posting, showing a copy of the notice and the places
1998 where the notice was posted.
1999 (ii) The notice under Subsection (3)(b)(i) shall:
2000 (A) state that an opinion question will be submitted to the county's, city's, or town's
2001 registered voters voting on the imposition of a sales and use tax under this section so that each
2002 registered voter has the opportunity to express the registered voter's opinion on whether a sales
2003 and use tax should be imposed under this section; and
2004 (B) list the purposes for which the revenues collected from the sales and use tax shall
2005 be expended.
2006 (4) A county, city, or town that submits an opinion question to registered voters under
2007 this section is subject to Section 20A-11-1203 .
2008 (5) Subject to Section 59-12-2209 , if a county, city, or town legislative body
2009 determines that a majority of the county's, city's, or town's registered voters voting on the
2010 imposition of a sales and use tax under this part have voted in favor of the imposition of the
2011 sales and use tax in accordance with this section, the county, city, or town legislative body
2012 shall impose the sales and use tax.
2013 (6) If, after imposing a sales and use tax under this part, a county, city, or town
2014 legislative body seeks to impose a tax rate for the sales and use tax that exceeds or is less than
2015 the tax rate stated in the opinion question described in Subsection (2) or repeals the tax rate
2016 stated in the opinion question described in Subsection (2), the county, city, or town legislative
2017 body shall:

2018 (a) obtain approval from a majority of the members of the county, city, or town
2019 legislative body to impose a tax rate for the sales and use tax that exceeds or is less than the
2020 tax rate stated in the opinion question described in Subsection (2) or repeals the tax rate stated
2021 in the opinion question described in Subsection (2); and
2022 (b) in accordance with the procedures and requirements of this section, submit an
2023 opinion question to the county's, city's, or town's registered voters voting on the tax rate so that
2024 each registered voter has the opportunity to express the registered voter's opinion on whether
2025 to impose a tax rate for the sales and use tax that exceeds or is less than the tax rate stated in
2026 the opinion question described in Subsection (2) or repeal the tax rate stated in the opinion
2027 question described in Subsection (2).
2028 Section 16. Section 59-12-2209 is enacted to read:
2029 59-12-2209. Enactment, repeal, or change in the rate of a sales and use tax under
2030 this part -- Annexation -- Notice.
2031 (1) Except as provided in Subsection (3) or (4), if a county, city, or town enacts or
2032 repeals a sales and use tax or changes the rate of a sales and use tax under this part, the
2033 enactment, repeal, or change shall take effect:
2034 (a) on the first day of a calendar quarter; and
2035 (b) after a 90-day period beginning on the date the commission receives notice
2036 meeting the requirements of Subsection (2) from the county, city, or town.
2037 (2) The notice described in Subsection (1)(b) shall state:
2038 (a) that the county, city, or town will enact, repeal, or change the rate of a sales and
2039 use tax under this part;
2040 (b) the statutory authority for the sales and use tax described in Subsection (2)(a);
2041 (c) the date the enactment, repeal, or change will take effect; and
2042 (d) if the county, city, or town enacts the sales and use tax or changes the rate of the
2043 sales and use tax described in Subsection (2)(a), the rate of the sales and use tax.
2044 (3) (a) If the billing period for a transaction begins before the effective date of the
2045 enactment of a sales and use tax or a tax rate increase under this part, the enactment of the

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

2074 use tax described in Subsection (6)(a), the rate of the sales and use tax.
2075 (7) (a) If the billing period for a transaction begins before the effective date of the
2076 enactment of a sales and use tax or a tax rate increase under this part, the enactment of the
2077 sales and use tax or the tax rate increase shall take effect on the first day of the first billing
2078 period that begins after the effective date of the enactment of the sales and use tax or the tax
2079 rate increase.
2080 (b) If the billing period for a transaction begins before the effective date of the repeal
2081 of a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax
2082 or the tax rate decrease shall take effect on the first day of the last billing period that began
2083 before the effective date of the repeal of the sales and use tax or the tax rate decrease.
2084 (8) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
2085 basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
2086 the rate of a sales and use tax described in Subsection (6) takes effect:
2087 (i) on the first day of a calendar quarter; and
2088 (ii) beginning 60 days after the effective date of the enactment, repeal, or change in
2089 the rate of the sales and use tax under Subsection (6).
2090 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2091 the commission may by rule define the term "catalogue sale."
2092 Section 17. Section 59-12-2210 is enacted to read:
2093 59-12-2210. Seller or certified service provider reliance on commission
2094 information.
2095 A seller or certified service provider is not liable for failing to collect a sales and use
2096 tax at a tax rate imposed under this part if the seller's or certified service provider's failure to
2097 collect the sales and use tax is as a result of the seller's or certified service provider's reliance
2098 on incorrect data provided by the commission in a database created by the commission:
2099 (1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
2100 (2) indicating the taxability of tangible personal property, a product transferred
2101 electronically, or a service.

2102 Section 18. Section 59-12-2211 is enacted to read:
2103 59-12-2211. Certified service provider or model 2 seller reliance on commission
2104 certified software.
2105 (1) Except as provided in Subsection (2) and subject to Subsection (4), a certified
2106 service provider or model 2 seller is not liable for failing to collect a sales and use tax required
2107 under this part if:
2108 (a) the certified service provider or model 2 seller relies on software the commission
2109 certifies; and
2110 (b) the certified service provider's or model 2 seller's failure to collect a sales and use
2111 tax required under this part is as a result of the seller's or certified service provider's reliance
2112 on incorrect data:
2113 (i) provided by the commission; or
2114 (ii) in the software the commission certifies.
2115 (2) The relief from liability described in Subsection (1) does not apply if a certified
2116 service provider or model 2 seller incorrectly classifies an item or transaction into a product
2117 category the commission certifies.
2118 (3) If the taxability of a product category is incorrectly classified in software the
2119 commission certifies, the commission shall:
2120 (a) notify a certified service provider or model 2 seller of the incorrect classification of
2121 the taxability of a product category in software the commission certifies; and
2122 (b) state in the notice required by Subsection (3)(a) that the certified service provider
2123 or model 2 seller is liable for failing to collect the correct amount of sales and use tax under
2124 this part on the incorrectly classified product category if the certified service provider or model
2125 2 seller fails to correct the taxability of the item or transaction within 10 days after the day on
2126 which the certified service provider or model 2 seller receives the notice.
2127 (4) If a certified service provider or model 2 seller fails to correct the taxability of an
2128 item or transaction within 10 days after the day on which the certified service provider or
2129 model 2 seller receives the notice described in Subsection (3), the certified service provider or

2130 model 2 seller is liable for failing to collect the correct amount of tax under this part on the
2131 item or transaction.
2132 Section 19. Section 59-12-2212 is enacted to read:
2133 59-12-2212. Purchaser relief from liability.
2134 (1) (a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty
2135 under Section 59-1-401 for failure to pay a sales and use tax due under this part or an
2136 underpayment if:
2137 (i) the purchaser's seller or certified service provider relies on incorrect data provided
2138 by the commission:
2139 (A) on a tax rate;
2140 (B) on a boundary;
2141 (C) on a taxing jurisdiction; or
2142 (D) in the taxability matrix the commission provides in accordance with the
2143 agreement; or
2144 (ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in
2145 accordance with Section 59-12-107.1 , relies on incorrect data provided by the commission:
2146 (A) on a tax rate;
2147 (B) on a boundary;
2148 (C) on a taxing jurisdiction; or
2149 (D) in the taxability matrix the commission provides in accordance with the
2150 agreement.
2151 (b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under
2152 Section 59-1-401 for failure to pay a sales and use tax due under this part or an underpayment
2153 if the purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance
2154 on incorrect data provided by the commission is as a result of conduct that is:
2155 (i) fraudulent;
2156 (ii) intentional; or
2157 (iii) willful.

2158 (2) In addition to the relief from a penalty described in Subsection (1), a purchaser is
2159 not liable for a tax or interest under Section 59-1-402 for failure to pay a sales and use tax due
2160 under this part or an underpayment if:
2161 (a) the purchaser's seller or certified service provider relies on:
2162 (i) incorrect data provided by the commission:
2163 (A) on a tax rate;
2164 (B) on a boundary; or
2165 (C) on a taxing jurisdiction; or
2166 (ii) an erroneous classification by the commission:
2167 (A) in the taxability matrix the commission provides in accordance with the
2168 agreement; and
2169 (B) with respect to a term:
2170 (I) in the library of definitions; and
2171 (II) that is:
2172 (Aa) listed as taxable or exempt;
2173 (Bb) included in or excluded from "sales price"; or
2174 (Cc) included in or excluded from a definition; or
2175 (b) the purchaser, regardless of whether the purchaser holds a direct payment permit in
2176 accordance with Section 59-12-107.1 , relies on:
2177 (i) incorrect data provided by the commission;
2178 (A) on a tax rate;
2179 (B) on a boundary; or
2180 (C) on a taxing jurisdiction; or
2181 (ii) an erroneous classification by the commission:
2182 (A) in the taxability matrix the commission provides in accordance with the
2183 agreement; and
2184 (B) with respect to a term:
2185 (I) in the library of definitions; and

2186 (II) that is:
2187 (Aa) listed as taxable or exempt;
2188 (Bb) included in or excluded from "sales price"; or
2189 (Cc) included in or excluded from a definition.
2190 Section 20. Section 59-12-2212.1 is enacted to read:
2191 59-12-2212.1. Transition provisions.
2192 Notwithstanding any other provision of this part, a county, city, or town legislative
2193 body is not required to submit an opinion question to the county's, city's, or town's registered
2194 voters in accordance with Section 59-12-2208 and is not required to provide notice to the
2195 commission in accordance with Section 59-12-2209 if:
2196 (1) (a) on June 30, 2010, a county, city, or town imposes a sales and use tax under
2197 Section 59-12-501 that is repealed by this bill;
2198 (b) on July 1, 2010, the authority for the county, city, or town to impose the sales and
2199 use tax described in Subsection (1)(a) is transferred to Section 59-12-2213 ; and
2200 (c) the rate of the sales and use tax described under Subsection (1)(a) and the rate of
2201 the sales and use tax the county, city, or town imposes under Section 59-12-2213 are the same;
2202 (2) (a) on June 30, 2010, a county, city, or town imposes a sales and use tax under
2203 Section 59-12-502 that is repealed by this bill;
2204 (b) on July 1, 2010, the authority for the county, city, or town to impose the sales and
2205 use tax described in Subsection (2)(a) is transferred to Section 59-12-2214 ; and
2206 (c) the rate of the sales and use tax described under Subsection (2)(a) and the rate of
2207 the sales and use tax the county, city, or town imposes under Section 59-12-2214 are the same;
2208 (3) (a) on June 30, 2010, a city or town imposes a sales and use tax under Section
2209 59-12-1001 that is repealed by this bill;
2210 (b) on July 1, 2010, the authority for the city or town to impose the sales and use tax
2211 described in Subsection (3)(a) is transferred to Section 59-12-2215 ; and
2212 (c) the rate of the sales and use tax described under Subsection (3)(a) and the rate of
2213 the sales and use tax the city or town imposes under Section 59-12-2215 are the same;

2214 (4) (a) on June 30, 2010, a county imposes a sales and use tax under Section
2215 59-12-1503 that is repealed by this bill;
2216 (b) on July 1, 2010, the authority for the county to impose the sales and use tax
2217 described in Subsection (4)(a) is transferred to Section 59-12-2216 ; and
2218 (c) the rate of the sales and use tax described under Subsection (4)(a) and the rate of
2219 the sales and use tax the county imposes under Section 59-12-2216 are the same;
2220 (5) (a) on June 30, 2010, a county imposes a sales and use tax under Section
2221 59-12-1703 that is repealed by this bill;
2222 (b) on July 1, 2010, the authority for the county to impose the sales and use tax
2223 described in Subsection (5)(a) is transferred to Section 59-12-2217 ; and
2224 (c) the rate of the sales and use tax described under Subsection (5)(a) and the rate of
2225 the sales and use tax the county imposes under Section 59-12-2217 are the same; and
2226 (6) (a) on June 30, 2010, a county, city, or town imposes a sales and use tax under
2227 Section 59-12-1903 that is repealed by this bill;
2228 (b) on July 1, 2010, the authority for the county, city, or town to impose the sales and
2229 use tax described in Subsection (6)(a) is transferred to Section 59-12-2218 ; and
2230 (c) the rate of the sales and use tax described under Subsection (6)(a) and the rate of
2231 the sales and use tax the county, city, or town imposes under Section 59-12-2218 are the same.
2232 Section 21. Section 59-12-2213 is enacted to read:
2233 59-12-2213. County, city, or town option sales and use tax to fund a system for
2234 public transit -- Base -- Rate.
2235 Subject to the other provisions of this part, a county, city, or town may impose a sales
2236 and use tax under this section of up to:
2237 (1) for a county, city, or town other than a county, city, or town described in
2238 Subsection (2), .25% on the transactions described in Subsection 59-12-103 (1) located within
2239 the county, city, or town to fund a system for public transit; or
2240 (2) for a county, city, or town within which a tax is not imposed under Section
2241 59-12-2216 , .30% on the transactions described in Subsection 59-12-103 (1) located within the

2242 county, city, or town, to fund a system for public transit.
2243 Section 22. Section 59-12-2214 is enacted to read:
2244 59-12-2214. County, city, or town option sales and use tax to fund a system for
2245 public transit, an airport facility, or to be deposited into the County of the First Class
2246 State Highway Projects Fund -- Base -- Rate -- Voter approval exception.
2247 (1) Subject to the other provisions of this part, a county, city, or town may impose a
2248 sales and use tax of .25% on the transactions described in Subsection 59-12-103 (1) located
2249 within the county, city, or town.
2250 (2) Subject to Subsection (3), a county, city, or town that imposes a sales and use tax
2251 under this section shall expend the revenues collected from the sales and use tax:
2252 (a) to fund a system for public transit;
2253 (b) to fund a project or service related to an airport facility for the portion of the
2254 project or service that is performed within the county, city, or town within which the sales and
2255 use tax is imposed:
2256 (i) for a county that imposes the sales and use tax, if the airport facility is part of the
2257 regional transportation plan of the area metropolitan planning organization if a metropolitan
2258 planning organization exists for the area; or
2259 (ii) for a city or town that imposes the sales and use tax, if:
2260 (A) that city or town is located within a county of the second class;
2261 (B) that city or town owns or operates the airport facility; and
2262 (C) an airline is headquartered in that city or town; or
2263 (c) for a combination of Subsections (2)(a) and (b).
2264 (3) A county of the first class that imposes a sales and use tax under this section shall
2265 expend the revenues collected from the sales and use tax as follows:
2266 (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
2267 a system for public transit; and
2268 (b) 20% of the revenues collected from the sales and use shall be deposited into the
2269 County of the First Class State Highway Projects Fund created by Section 72-2-121 .

2270 (4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
2271 not required to submit an opinion question to the county's, city's, or town's registered voters in
2272 accordance with Section 59-12-2208 to impose a sales and use tax under this section if:
2273 (a) the county, city, or town imposes the sales and use tax under this section on or
2274 after July 1, 2010, but on or before July 1, 2011;
2275 (b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:
2276 (i) Section 59-12-2213 ; or
2277 (ii) Section 59-12-2215 ; and
2278 (c) the county, city, or town obtained voter approval to impose the sales and use tax
2279 under:
2280 (i) Section 59-12-2213 ; or
2281 (ii) Section 59-12-2215 .
2282 Section 23. Section 59-12-2215 is enacted to read:
2283 59-12-2215. City or town option sales and use tax for highways or to fund a
2284 system for public transit -- Base -- Rate.
2285 (1) Subject to the other provisions of this part, a city or town may impose a sales and
2286 use tax of up to .30% on the transactions described in Subsection 59-12-103 (1) located within
2287 the city or town.
2288 (2) A city or town imposing a sales and use tax under this section shall expend the
2289 revenues collected from the sales and use tax:
2290 (a) for the construction and maintenance of highways under the jurisdiction of the city
2291 or town imposing the tax;
2292 (b) to fund a system for public transit; or
2293 (c) for a combination of Subsections (2)(a) and (b).
2294 Section 24. Section 59-12-2216 is enacted to read:
2295 59-12-2216. County option sales and use tax for a fixed guideway, to fund a
2296 system for public transit, or for highways -- Base -- Rate -- Allocation and expenditure of
2297 revenues.

2298 (1) Subject to the other provisions of this part, a county legislative body may impose a
2299 sales and use tax of up to .30% on the transactions described in Subsection 59-12-103 (1)
2300 within the county, including the cities and towns within the county.
2301 (2) Subject to Subsection (3), before obtaining voter approval in accordance with
2302 Section 59-12-2208 , a county legislative body shall adopt a resolution specifying the
2303 percentage of revenues the county will receive from the sales and use tax under this section
2304 that will be allocated to fund one or more of the following:
2305 (a) a project or service relating to a fixed guideway for the portion of the project or
2306 service that is performed within the county;
2307 (b) a project or service relating to a system for public transit, except for a fixed
2308 guideway, for the portion of the project or service that is performed within the county;
2309 (c) the following relating to a state highway within the county:
2310 (i) a project within the county if the project:
2311 (A) begins on or after the day on which a county legislative body imposes a tax under
2312 this section; and
2313 (B) involves an environmental study, an improvement, new construction, or a
2314 renovation;
2315 (ii) debt service on a project described in Subsection (2)(c)(i); or
2316 (iii) bond issuance costs related to a project described in Subsection (2)(c)(i); or
2317 (d) a project, debt service, or bond issuance cost described in Subsection (2)(c)
2318 relating to a highway that is:
2319 (i) a principal arterial highway or minor arterial highway;
2320 (ii) included in a metropolitan planning organization's regional transportation plan;
2321 and
2322 (iii) not a state highway.
2323 (3) A county legislative body shall in the resolution described in Subsection (2)
2324 allocate 100% of the revenues the county will receive from the sales and use tax under this
2325 section for one or more of the purposes described in Subsection (2).

2326 (4) Notwithstanding Section 59-12-2208 , the opinion question required by Section
2327 59-12-2208 shall state the allocations the county legislative body makes in accordance with
2328 this section.
2329 (5) The revenues collected from a sales and use tax under this section shall be:
2330 (a) allocated in accordance with the allocations specified in the resolution under
2331 Subsection (2); and
2332 (b) expended as provided in this section.
2333 (6) If a county legislative body allocates revenues collected from a sales and use tax
2334 under this section for a state highway project described in Subsection (2)(c)(i), before
2335 beginning the state highway project within the county, the county legislative body shall:
2336 (a) obtain approval from the Transportation Commission to complete the project; and
2337 (b) enter into an interlocal agreement established in accordance with Title 11, Chapter
2338 13, Interlocal Cooperation Act, with the Department of Transportation to complete the project.
2339 (7) If after a county legislative body imposes a sales and use tax under this section the
2340 county legislative body seeks to change an allocation specified in the resolution under
2341 Subsection (2), the county legislative body may change the allocation by:
2342 (a) adopting a resolution in accordance with Subsection (2) specifying the percentage
2343 of revenues the county will receive from the sales and use tax under this section that will be
2344 allocated to fund one or more of the items described in Subsection (2);
2345 (b) obtaining approval to change the allocation of the sales and use tax by a majority
2346 of all of the members of the county legislative body; and
2347 (c) subject to Subsection (8):
2348 (i) in accordance with Section 59-12-2208 , submitting an opinion question to the
2349 county's registered voters voting on changing the allocation so that each registered voter has
2350 the opportunity to express the registered voter's opinion on whether the allocation should be
2351 changed; and
2352 (ii) in accordance with Section 59-12-2208 , obtaining approval to change the
2353 allocation from a majority of the county's registered voters voting on changing the allocation.

2354 (8) Notwithstanding Section 59-12-2208 , the opinion question required by Subsection
2355 (7)(c)(i) shall state the allocations specified in the resolution adopted in accordance with
2356 Subsection (7)(a) and approved by the county legislative body in accordance with Subsection
2357 (7)(b).
2358 (9) Revenues collected from a sales and use tax under this section that a county
2359 allocates for a purpose described in Subsection (2)(c) shall be:
2360 (a) deposited into the Highway Projects Within Counties Fund created by Section
2361 72-2-121.1 ; and
2362 (b) expended as provided in Section 72-2-121.1 .
2363 (10) (a) Notwithstanding Section 59-12-2206 and subject to Subsection (10)(b),
2364 revenues collected from a sales and use tax under this section that a county allocates for a
2365 purpose described in Subsection (2)(d) shall be transferred to the Department of
2366 Transportation if the transfer of the revenues is required under an interlocal agreement:
2367 (i) entered into on or before January 1, 2010; and
2368 (ii) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
2369 (b) The Department of Transportation shall expend the revenues described in
2370 Subsection (10)(a) as provided in the interlocal agreement described in Subsection (10)(a).
2371 Section 25. Section 59-12-2217 is enacted to read:
2372 59-12-2217. County option sales and use tax for transportation -- Base -- Rate --
2373 Written prioritization process -- Approval by county legislative body.
2374 (1) Subject to the other provisions of this part, a county legislative body may impose a
2375 sales and use tax of up to .25% on the transactions described in Subsection 59-12-103 (1)
2376 within the county, including the cities and towns within the county.
2377 (2) Subject to Subsections (3) through (8) and Section 59-12-2207 , the revenues
2378 collected from a sales and use tax under this section may only be expended for:
2379 (a) a project or service:
2380 (i) relating to a regionally significant transportation facility for the portion of the
2381 project or service that is performed within the county;

2382 (ii) for new capacity or congestion mitigation if the project or service is performed
2383 within a county:
2384 (A) of the first or second class; or
2385 (B) if that county is part of an area metropolitan planning organization; and
2386 (iii) that is on a priority list:
2387 (A) created by the county's council of governments in accordance with Subsection (7);
2388 and
2389 (B) approved by the county legislative body in accordance with Subsection (7);
2390 (b) corridor preservation for a project or service described in Subsection (2)(a) as
2391 provided in Subsection (8); or
2392 (c) debt service or bond issuance costs related to a project or service described in
2393 Subsection (2)(a)(i) or (ii).
2394 (3) If a project or service described in Subsection (2) is for:
2395 (a) a principal arterial highway or a minor arterial highway in a county of the first or
2396 second class, that project or service shall be part of the:
2397 (i) county and municipal master plan; and
2398 (ii) (A) statewide long-range plan; or
2399 (B) regional transportation plan of the area metropolitan planning organization if a
2400 metropolitan planning organization exists for the area; or
2401 (b) a fixed guideway or an airport, that project or service shall be part of the regional
2402 transportation plan of the area metropolitan planning organization if a metropolitan planning
2403 organization exists for the area.
2404 (4) In a county of the first or second class, a regionally significant transportation
2405 facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
2406 designation on a Statewide Transportation Improvement Program and Transportation
2407 Improvement Program if the project or service described in Subsection (2)(a)(i) is:
2408 (a) a principal arterial highway;
2409 (b) a minor arterial highway; or

2410 (c) a major collector highway in a rural area.
2411 (5) Of the revenues collected from a sales and use tax imposed under this section
2412 within a county of the first or second class, 25% or more shall be expended for the purpose
2413 described in Subsection (2)(b).
2414 (6) (a) As provided in this Subsection (6), a council of governments shall:
2415 (i) develop a written prioritization process for the prioritization of projects to be
2416 funded by revenues collected from a sales and use tax under this section;
2417 (ii) create a priority list of regionally significant transportation facility projects or
2418 services described in Subsection (2)(a)(i) in accordance with Subsection (7); and
2419 (iii) present the priority list to the county legislative body for approval in accordance
2420 with Subsection (7).
2421 (b) The written prioritization process described in Subsection (6)(a)(i) shall include:
2422 (i) a definition of the type of projects to which the written prioritization process
2423 applies;
2424 (ii) subject to Subsection (6)(c), the specification of a weighted criteria system that the
2425 council of governments will use to rank proposed projects and how that weighted criteria
2426 system will be used to determine which proposed projects will be prioritized;
2427 (iii) the specification of data that is necessary to apply the weighted criteria system;
2428 (iv) application procedures for a project to be considered for prioritization by the
2429 council of governments; and
2430 (v) any other provision the council of governments considers appropriate.
2431 (c) The weighted criteria system described in Subsection (6)(b)(ii) shall include the
2432 following:
2433 (i) the cost effectiveness of a project;
2434 (ii) the degree to which a project will mitigate regional congestion;
2435 (iii) the compliance requirements of applicable federal laws or regulations;
2436 (iv) the economic impact of a project;
2437 (v) the degree to which a project will require tax revenues to fund maintenance and

2438 operation expenses; and
2439 (vi) any other provision the council of governments considers appropriate.
2440 (d) A council of governments of a county of the first or second class shall submit the
2441 written prioritization process described in Subsection (6)(a)(i) to the Executive Appropriations
2442 Committee for approval prior to taking final action on:
2443 (i) the written prioritization process; or
2444 (ii) any proposed amendment to the written prioritization process.
2445 (7) (a) A council of governments shall use the weighted criteria system adopted in the
2446 written prioritization process developed in accordance with Subsection (6) to create a priority
2447 list of regionally significant transportation facility projects or services for which revenues
2448 collected from a sales and use tax under this section may be expended.
2449 (b) Before a council of governments may finalize a priority list or the funding level of
2450 a project, the council of governments shall conduct a public meeting on:
2451 (i) the written prioritization process; and
2452 (ii) the merits of the projects that are prioritized as part of the written prioritization
2453 process.
2454 (c) A council of governments shall make the weighted criteria system ranking for each
2455 project prioritized as part of the written prioritization process publicly available before the
2456 public meeting required by Subsection (7)(b) is held.
2457 (d) If a council of governments prioritizes a project over another project with a higher
2458 rank under the weighted criteria system, the council of governments shall:
2459 (i) identify the reasons for prioritizing the project over another project with a higher
2460 rank under the weighted criteria system at the public meeting required by Subsection (7)(b);
2461 and
2462 (ii) make the reasons described in Subsection (7)(d)(i) publicly available.
2463 (e) Subject to Subsections (7)(f) and (g), after a council of governments finalizes a
2464 priority list in accordance with this Subsection (7), the council of governments shall:
2465 (i) submit the priority list to the county legislative body for approval; and

2466 (ii) obtain approval of the priority list from a majority of the members of the county
2467 legislative body.
2468 (f) A council of governments may only submit one priority list per calendar year to the
2469 county legislative body.
2470 (g) A county legislative body may only consider and approve one priority list
2471 submitted under Subsection (7)(e) per calendar year.
2472 (8) (a) Except as provided in Subsection (8)(b), revenues collected from a sales and
2473 use tax under this section that a county allocates for a purpose described in Subsection (2)(b)
2474 shall be:
2475 (i) deposited in or transferred to the Local Transportation Corridor Preservation Fund
2476 created by Section 72-2-117.5 ; and
2477 (ii) expended as provided in Section 72-2-117.5 .
2478 (b) In a county of the first class, revenues collected from a sales and use tax under this
2479 section that a county allocates for a purpose described in Subsection (2)(b) shall be:
2480 (i) deposited in or transferred to the County of the First Class State Highway Projects
2481 Fund created by Section 72-2-121 ; and
2482 (ii) expended as provided in Section 72-2-121 .
2483 Section 26. Section 59-12-2218 , which is renumbered from Section 59-12-1903 is
2484 renumbered and amended to read:
2485 [59-12-1903]. 59-12-2218. County, city, or town option sales and use tax
2486 for airports, highways, and a system for public transit -- Base -- Rate -- Administration
2487 of sales and use tax -- Voter approval exception.
2488 (1) (a) Subject to the other provisions of this [section and except as provided in
2489 Subsection (2)] part, the following may impose a sales and use tax under this [part] section:
2490 (i) if, on April 1, 2009, a county legislative body of a county of the second class
2491 imposes a sales and use tax under this [part] section, the county legislative body of the county
2492 of the second class may impose the sales and use tax on the transactions:
2493 (A) described in Subsection 59-12-103 (1); and

2494 (B) within the county, including the cities and towns within the county; or
2495 (ii) if, on April 1, 2009, a county legislative body of a county of the second class does
2496 not impose a sales and use tax under this [part] section:
2497 (A) a city legislative body of a city within the county of the second class may impose a
2498 sales and use tax under this [part] section on the transactions described in Subsection
2499 59-12-103 (1) within that city;
2500 (B) a town legislative body of a town within the county of the second class may
2501 impose a sales and use tax under this [part] section on the transactions described in Subsection
2502 59-12-103 (1) within that town; and
2503 (C) the county legislative body of the county of the second class may impose a sales
2504 and use tax on the transactions described in Subsection 59-12-103 (1):
2505 (I) within the county, including the cities and towns within the county, if on the date
2506 the county legislative body provides the notice described in [Subsection (7)(a)] Section
2507 59-12-2209 to the commission stating that the county will enact a sales and use tax under this
2508 [part] section, no city or town within that county:
2509 (Aa) imposes a sales and use tax under this [part] section; or
2510 (Bb) has provided the notice described in [Subsection (7)(a)] Section 59-12-2209 to
2511 the commission stating that the city or town will enact a sales and use tax under this [part]
2512 section; or
2513 (II) within the county, except for within a city or town within that county, if, on the
2514 date the county legislative body provides the notice described in [Subsection (7)(a)] Section
2515 59-12-2209 to the commission stating that the county will enact a sales and use tax under this
2516 [part] section, that city or town:
2517 (Aa) imposes a sales and use tax under this [part] section; or
2518 (Bb) has provided the notice described in [Subsection (7)(a)] Section 59-12-2209 to
2519 the commission stating that the city or town will enact a sales and use tax under this [part]
2520 section.
2521 (b) For purposes of Subsection (1)(a), a county, city, or town legislative body that

2522 imposes a sales and use tax under this [part] section may impose the tax at a rate of:
2523 (i) .10%, to be:
2524 (A) as determined by the county, city, or town legislative body, deposited as provided
2525 in Subsection [(4)(c)] (3)(b)(i) into the County of the Second Class State Highway Projects
2526 Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
2527 (B) as determined by the county, city, or town legislative body, expended for a project
2528 or service relating to an airport facility for the portion of the project or service that is
2529 performed within the county, city, or town within which the tax is imposed:
2530 (I) for a county legislative body that imposes the sales and use tax, if that airport
2531 facility is part of the regional transportation plan of the area metropolitan planning
2532 organization if a metropolitan planning organization exists for the area; or
2533 (II) for a city or town legislative body that imposes the sales and use tax, if:
2534 (Aa) that city or town owns or operates the airport facility; and
2535 (Bb) an airline is headquartered in that city or town; or
2536 (C) as determined by the county, city, or town legislative body, deposited or expended
2537 for a combination of Subsections (1)(b)(i)(A) and (B); or
2538 (ii) subject to Subsection (1)(c), .25%, to be expended as follows:
2539 (A) .10% to be deposited as provided in Subsection [(4)(c)(i)] (3)(b)(i) into the County
2540 of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended
2541 as provided in Section 72-2-121.2 ;
2542 (B) .05%, to be deposited as provided in Subsection [(4)(c)(ii)] (3)(b)(ii) into the
2543 Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended
2544 and distributed in accordance with Section 72-2-117.5 ; and
2545 (C) as determined by the county, city, or town legislative body, .10% to be:
2546 (I) deposited as provided in Subsection [(4)(c)(i)] (3)(b)(i) into the County of the
2547 Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
2548 provided in Section 72-2-121.2 ;
2549 (II) expended for:

2550 (Aa) a state highway designated under Title 72, Chapter 4, Part 1, [Designation of]
2551 State Highways [Act];
2552 (Bb) a local highway [of regional significance] that is a principal arterial highway,
2553 minor arterial highway, major collector highway, or minor collector road; or
2554 (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
2555 (III) expended for a project or service relating to a system for public transit for the
2556 portion of the project or service that is performed within the county, city, or town within
2557 which the sales and use tax is imposed;
2558 [(IV) expended for a project or service relating to a fixed guideway for the portion of
2559 the project or service that is performed within the county, city, or town within which the tax is
2560 imposed;]
2561 [(V)] (IV) expended for a project or service relating to an airport facility for the
2562 portion of the project or service that is performed within the county, city, or town within
2563 which the sales and use tax is imposed:
2564 (Aa) for a county legislative body that imposes the sales and use tax, if that airport
2565 facility is part of the regional transportation plan of the area metropolitan planning
2566 organization if a metropolitan planning organization exists for the area; or
2567 (Bb) for a city or town legislative body that imposes the sales and use tax, if:
2568 (Ii) that city or town owns or operates the airport facility; and
2569 (IIii) an airline is headquartered in that city or town; or
2570 [(VI)] (V) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I)
2571 through [(V)] (IV).
2572 (c) (i) Subject to the other provisions of this Subsection (1)(c), a city or town within
2573 which a sales and use tax is imposed at the tax rate described in Subsection (1)(b)(ii) may:
2574 (A) expend the revenues in accordance with Subsection (1)(b)(ii); or
2575 (B) expend the revenues in accordance with Subsections (1)(c)(ii) through (iv) if:
2576 (I) that city or town owns or operates an airport facility; and
2577 (II) an airline is headquartered in that city or town.

2578 (ii) (A) [If a city or town within which a tax is imposed at the tax rate described in
2579 Subsection (1)(b)(ii) owns or operates an airport facility at which an airline is headquartered,
2580 the] A city or town legislative body of a city or town within which a sales and use tax is
2581 imposed at the tax rate described in Subsection (1)(b)(ii) may expend the revenues collected
2582 from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
2583 .25% for a purpose described in Subsection (1)(c)(ii)(B) if:
2584 (I) that city or town owns or operates an airport facility; and
2585 (II) an airline is headquartered in that city or town.
2586 (B) A city or town described in Subsection (1)(c)(ii)(A) may expend the revenues
2587 collected from a tax rate of greater than .10% but not to exceed the revenues collected from a
2588 tax rate of .25% for:
2589 [(A)] (I) a project or service relating to the airport facility; and
2590 [(B)] (II) the portion of the project or service that is performed within the city or town
2591 imposing the sales and use tax.
2592 (iii) If a city or town legislative body described in Subsection (1)(c)(ii)(A) determines
2593 to expend the revenues collected from a tax rate of greater than .10% but not to exceed the
2594 revenues collected from a tax rate of .25% for a project or service relating to an airport facility
2595 as allowed by Subsection (1)(c)(ii), any remaining revenues that are collected from the sales
2596 and use tax imposed at the tax rate described in Subsection (1)(b)(ii) that are not expended for
2597 the project or service relating to an airport facility as allowed by Subsection (1)(c)(ii) shall be
2598 expended as follows:
2599 (A) 75% of the remaining revenues shall be deposited as provided in Subsection
2600 [(4)(d)] (3)(c) into the County of the Second Class State Highway Projects Fund created by
2601 Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ; and
2602 (B) 25% of the remaining revenues shall be deposited as provided in Subsection
2603 [(4)(d)] (3)(c) into the Local Transportation Corridor Preservation Fund created by Section
2604 72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5 .
2605 (iv) A city or town legislative body that expends the revenues collected from a sales

2606 and use tax imposed at the tax rate described in Subsection (1)(b)(ii) in accordance with
2607 Subsections (1)(c)(ii) and (iii):
2608 (A) shall, on or before the date the city or town legislative body provides the notice
2609 described in [Subsection (7)(a)] Section 59-12-2209 to the commission stating that the city or
2610 town will enact a sales and use tax under this [part] section:
2611 (I) determine the tax rate:
2612 (Aa) the collections from which the city or town legislative body will expend for a
2613 project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
2614 (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
2615 (II) notify the commission in writing of the tax rate the city or town legislative body
2616 determines in accordance with Subsection (1)(c)(iv)(A)(I);
2617 (B) shall, on or before the April 1 immediately following the date the city or town
2618 legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission:
2619 (I) determine the tax rate:
2620 (Aa) the collections from which the city or town legislative body will expend for a
2621 project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
2622 (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
2623 (II) notify the commission in writing of the tax rate the city or town legislative body
2624 determines in accordance with Subsection (1)(c)(iv)(B)(I);
2625 (C) shall, on or before April 1 of each year after the April 1 described in Subsection
2626 (1)(c)(iv)(B):
2627 (I) determine the tax rate:
2628 (Aa) the collections from which the city or town legislative body will expend for a
2629 project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
2630 (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
2631 (II) notify the commission in writing of the tax rate the city or town legislative body
2632 determines in accordance with Subsection (1)(c)(iv)(C)(I); and
2633 (D) may not change the tax rate the city or town legislative body determines in

2634 accordance with Subsections (1)(c)(iv)(A) through (C) more frequently than as prescribed by
2635 Subsections (1)(c)(iv)(A) through (C).
2636 [(d) If a county legislative body imposes a tax under this part, regardless of whether
2637 the tax under this part is imposed within all of the cities and towns within the county, the
2638 county legislative body may not impose a tax under Part 17, County Option Sales and Use Tax
2639 for Transportation Act.]
2640 [(e) For purposes of this Subsection (1), the location of a transaction shall be
2641 determined in accordance with Sections 59-12-211 through 59-12-215 .]
2642 [(2) (a) A county, city, or town legislative body may not impose a tax under this part
2643 on:]
2644 [(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2645 are exempt from taxation under Section 59-12-104 ; or]
2646 [(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and
2647 food ingredients.]
2648 [(b) A county, city, or town legislative body imposing a tax under this part shall
2649 impose the tax on amounts paid or charged for food and food ingredients if the food and food
2650 ingredients are sold as part of a bundled transaction attributable to food and food ingredients
2651 and tangible personal property other than food and food ingredients.]
2652 [(3)(a) To impose a tax under this part, a county, city, or town legislative body shall
2653 obtain approval from a majority of the members of the county, city, or town legislative body.]
2654 [(b)] (2) Before a city or town legislative body may impose a sales and use tax under
2655 this [part] section, the city or town legislative body shall provide a copy of the notice
2656 described in [Subsection (7)(a)] Section 59-12-2209 that the city or town legislative body
2657 provides to the commission:
2658 [(i)] (a) to the county legislative body within which the city or town is located; and
2659 [(ii)] (b) at the same time as the city or town legislative body provides the notice to the
2660 commission.
2661 [(4)] (3) (a) Subject to Subsections [(4)] (3)(b) through [(f)] (e) and [except as

2662 provided in Subsection (6)] Section 59-12-2207 , the commission shall transmit revenues
2663 collected within a county, city, or town from a tax under this part that will be expended for a
2664 purpose described in Subsection (1)(b)(i)(B) or Subsections (1)(b)(ii)(C)(II) through [(V)]
2665 (IV)[: (i)] to the county, city, or town legislative body[;] in accordance with Section
2666 59-12-2206 .
2667 [(ii) monthly; and]
2668 [(iii) by electronic funds transfer.]
2669 [(b) Except as provided in Subsection (6), the commission shall transfer the revenues
2670 described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
2671 Chapter 2a, Part 8, Public Transit District Act, if the county, city, or town legislative body:]
2672 [(i) provides written notice to the commission requesting the transfer; and]
2673 [(ii) designates the public transit district to which the county, city, or town legislative
2674 body requests the commission to transfer the revenues described in Subsection (4)(a).]
2675 [(c)] (b) Except as provided in Subsection [(4)(d) or (6)] (3)(c) and subject to Section
2676 59-12-2207 , the commission shall deposit revenues collected within a county, city, or town
2677 from a sales and use tax under this [part] section that:
2678 (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
2679 the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
2680 (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B)
2681 into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
2682 (iii) a county, city, or town legislative body determines to expend for a purpose
2683 described in Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class
2684 State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town
2685 legislative body provides written notice to the commission requesting the deposit.
2686 [(d)] (c) Subject to Subsection [(4)(e) or (f)] (3)(d) or (e), if a city or town legislative
2687 body provides notice to the commission in accordance with Subsection (1)(c)(iv), the
2688 commission shall:
2689 (i) transmit the revenues collected from the tax rate stated on the notice to the city or

2690 town legislative body[:(A)] monthly[; and (B)] by electronic funds transfer; and
2691 (ii) deposit any remaining revenues described in Subsection (1)(c)(iii) in accordance
2692 with Subsection (1)(c)(iii).
2693 [(e)] (d) (i) If a city or town legislative body provides the notice described in
2694 Subsection (1)(c)(iv)(A) to the commission, the commission shall transmit or deposit the
2695 revenues collected from the sales and use tax:
2696 (A) in accordance with Subsection [(4)(d)] (3)(c);
2697 (B) beginning on the date the city or town legislative body enacts the sales and use
2698 tax; and
2699 (C) ending on the earlier of:
2700 (I) the June 30 immediately following the date the city or town legislative body
2701 provides the notice described in Subsection (1)(c)(iv)(B) to the commission; or
2702 (II) the date the city or town legislative body repeals the sales and use tax.
2703 (ii) If a city or town legislative body provides the notice described in Subsection
2704 (1)(c)(iv)(B) or (C) to the commission, the commission shall transmit or deposit the revenues
2705 collected from the sales and use tax:
2706 (A) in accordance with Subsection [(4)(d)] (3)(c);
2707 (B) beginning on the July 1 immediately following the date the city or town legislative
2708 body provides the notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; and
2709 (C) ending on the earlier of:
2710 (I) the June 30 of the year after the date the city or town legislative body provides the
2711 notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; or
2712 (II) the date the city or town legislative body repeals the sales and use tax.
2713 [(f)] (e) (i) If a city or town legislative body that is required to provide the notice
2714 described in Subsection (1)(c)(iv)(A) does not provide the notice described in Subsection
2715 (1)(c)(iv)(A) to the commission on or before the date required by Subsection (1)(c)(iv) for
2716 providing the notice, the commission shall transmit, transfer, or deposit the revenues collected
2717 from the sales and use tax within the city or town in accordance with Subsections [(4)(a)

2718 through (c)] (3)(a) and (b).
2719 (ii) If a city or town legislative body that is required to provide the notice described in
2720 Subsection (1)(c)(iv)(B) or (C) does not provide the notice described in Subsection
2721 (1)(c)(iv)(B) or (C) to the commission on or before the date required by Subsection (1)(c)(iv)
2722 for providing the notice, the commission shall transmit or deposit the revenues collected from
2723 the sales and use tax within the city or town in accordance with:
2724 (A) Subsection [(4)(d)] (3)(c); and
2725 (B) the most recent notice the commission received from the city or town legislative
2726 body under Subsection (1)(c)(iv).
2727 (4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
2728 not required to submit an opinion question to the county's, city's, or town's registered voters in
2729 accordance with Section 59-12-2208 to impose a sales and use tax under this section if:
2730 (a) the county, city, or town imposes the sales and use tax under this section on or
2731 after July 1, 2010, but on or before July 1, 2011; and
2732 (b) a purpose for which the county, city, or town will expend revenues collected from
2733 the sales and use tax under this section is:
2734 (i) a project or service described in Subsection (1)(b)(i)(B); or
2735 (ii) a project or service described in Subsection (1)(b)(ii)(C)(IV).
2736 [(5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
2737 collect, and enforce a tax under this part in accordance with:]
2738 [(i) the same procedures used to administer, collect, and enforce the tax under:]
2739 [(A) Part 1, Tax Collection; or]
2740 [(B) Part 2, Local Sales and Use Tax Act; and]
2741 [(ii) Chapter 1, General Taxation Policies.]
2742 [(b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).]
2743 [(6) (a) The commission may retain an amount of tax collected under this part of not
2744 to exceed the lesser of:]
2745 [(i) 1.50%; or]

2746 [(ii) an amount equal to the cost to the commission of administering this part.]
2747 [(b) Any amount the commission retains under Subsection (6)(a) shall be:]
2748 [(i) deposited into the Sales and Use Tax Administrative Fees Account; and]
2749 [(ii) used as provided in Subsection 59-12-206 (2).]
2750 [(7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1,
2751 2009, a county, city, or town enacts or repeals a tax or changes the rate of a tax under this part,
2752 the enactment, repeal, or change shall take effect:]
2753 [(A) on the first day of a calendar quarter; and]
2754 [(B) after a 90-day period beginning on the date the commission receives notice
2755 meeting the requirements of Subsection (7)(a)(ii) from the county, city, or town.]
2756 [(ii) The notice described in Subsection (7)(a)(i)(B) shall state:]
2757 [(A) that the county, city, or town will enact, repeal, or change the rate of a tax under
2758 this part;]
2759 [(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);]
2760 [(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and]
2761 [(D) if the county, city, or town enacts the tax or changes the rate of the tax described
2762 in Subsection (7)(a)(ii)(A), the rate of the tax.]
2763 [(b) (i) If the billing period for a transaction begins before the effective date of the
2764 enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
2765 tax rate increase shall take effect on the first day of the first billing period that begins after the
2766 effective date of the enactment of the tax or the tax rate increase.]
2767 [(ii) If the billing period for a transaction begins before the effective date of the repeal
2768 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax
2769 rate decrease shall take effect on the first day of the last billing period that began before the
2770 effective date of the repeal of the tax or the tax rate decrease.]
2771 [(c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
2772 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a
2773 tax described in Subsection (7)(a)(i) takes effect:]

2774 [(A) on the first day of a calendar quarter; and]
2775 [(B) beginning 60 days after the effective date of the enactment, repeal, or change in
2776 the rate of the tax under Subsection (7)(a)(i).]
2777 [(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2778 the commission may by rule define the term "catalogue sale."]
2779 [(d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
2780 on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in
2781 the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall
2782 take effect:]
2783 [(A) on the first day of a calendar quarter; and]
2784 [(B) after a 90-day period beginning on the date the commission receives notice
2785 meeting the requirements of Subsection (7)(d)(ii) from the county, city, or town that annexes
2786 the annexing area.]
2787 [(ii) The notice described in Subsection (7)(d)(i)(B) shall state:]
2788 [(A) that the annexation described in Subsection (7)(d)(i)(B) will result in an
2789 enactment, repeal, or change in the rate of a tax under this part for the annexing area;]
2790 [(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);]
2791 [(C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and]
2792 [(D) if the county, city, or town enacts the tax or changes the rate of the tax described
2793 in Subsection (7)(d)(ii)(A), the rate of the tax.]
2794 [(e) (i) If the billing period for a transaction begins before the effective date of the
2795 enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
2796 rate increase shall take effect on the first day of the first billing period that begins after the
2797 effective date of the enactment of the tax or the tax rate increase.]
2798 [(ii) If the billing period for a transaction begins before the effective date of the repeal
2799 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax
2800 rate decrease shall take effect on the first day of the last billing period that began before the
2801 effective date of the repeal of the tax or the tax rate decrease.]

2802 [(f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
2803 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a
2804 tax described in Subsection (7)(d)(i) takes effect:]
2805 [(A) on the first day of a calendar quarter; and]
2806 [(B) beginning 60 days after the effective date of the enactment, repeal, or change in
2807 the rate under Subsection (7)(d)(i).]
2808 [(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2809 the commission may by rule define the term "catalogue sale."]
2810 Section 27. Section 63B-11-501 is amended to read:
2811 63B-11-501. State Bonding Commission authorized to issue general obligation
2812 bonds.
2813 Upon receipt of a written opinion from the Utah Attorney General that Salt Lake
2814 County has entered a binding legal agreement with the state in which Salt Lake County agrees,
2815 until all of the principal, interest, and issuance costs on the bonds have been paid, to annually
2816 transfer enough of the [1/4 of 1/4% of sales tax proceeds earmarked by Section 59-12-502 ]
2817 amount described in Subsection 59-12-2214 (3)(b) to the sinking fund created in Section
2818 63B-11-508 to pay the principal, interest, and issuance costs for any general obligation bonds
2819 issued to provide funds for any of the Salt Lake County transportation projects identified in
2820 Section 63B-11-502 , the commission created under Section 63B-1-201 may issue and sell
2821 general obligation bonds of the state pledging the full faith, credit, and resources of the state
2822 for the payment of the principal of and interest on the bonds, to provide funds to the
2823 Department of Transportation.
2824 Section 28. Section 63B-11-502 is amended to read:
2825 63B-11-502. Maximum amount -- Projects authorized.
2826 (1) The total amount of bonds issued under this part may not exceed $52,101,800.
2827 (2) (a) (i) Proceeds from the issuance of bonds shall be provided to the Department of
2828 Transportation to provide funds to pay all or part of the costs of accelerating any of the
2829 following state highway construction or reconstruction projects in Salt Lake County:

2830 (A) I-15: 10600 South to the Utah County line;
2831 (B) Final Environmental Impact Statement for Western Transportation Corridor: I-80
2832 to Utah County;
2833 (C) I-215: Redwood Road to 4700 South;
2834 (D) State Street Reconstruction: 9000 South to 10600 South; and
2835 (E) except as provided in Subsection (2)(d), State Street Reconstruction: 7800 South
2836 to 8000 South.
2837 (ii) If the Department of Transportation is unable to begin or complete a project
2838 authorized by this Subsection (2)(a) because of a court order, the Department of
2839 Transportation, with the approval of Salt Lake County, may expend bond proceeds to
2840 construct one or more projects identified in Subsection (2)(e).
2841 (b) When the Utah Transit Authority certifies to the Transportation Commission that
2842 the Utah Transit Authority will pay half the costs of reconstruction of the Utah Transit
2843 Authority railroad overpass on 8000 South State Street, the Department of Transportation may
2844 provide funds from bond proceeds to pay the other half of the costs of reconstruction of the
2845 Utah Transit Authority railroad overpass on 8000 South.
2846 (c) As used in Subsections (2)(a) and (b), "costs" may include the cost of acquiring
2847 land, interests in land, easements and rights-of-way, improving sites, and making all
2848 improvements necessary, incidental, or convenient to the facilities, interest estimated to accrue
2849 on these bonds during the period to be covered by construction of the projects plus a period of
2850 six months after the end of the construction period, interest estimated to accrue on any bond
2851 anticipation notes issued under the authority of Chapter 11, Part 6, 2002 Highway General
2852 Obligation Bond Anticipation Notes for Salt Lake County, and all related engineering,
2853 architectural, and legal fees.
2854 (d) Bond proceeds may not be expended on the State Street Reconstruction: 7800 to
2855 8000 South project until the Transportation Commission has received the certification
2856 required by Subsection (2)(b) from the Utah Transit Authority.
2857 (e) As the following projects or future projects identified by Salt Lake County and the

2858 Legislature are prepared and ready for construction by the Department of Transportation, it is
2859 the intent of the Legislature that they will be accelerated and funded from future general
2860 obligation bonds issued in anticipation of receiving debt service funds from [Salt Lake
2861 County's 1/4 of 1/4% sales tax proceeds earmarked by Section 59-12-502 ] the amount
2862 described in Subsection 59-12-2214 (3)(b) and from other funding sources available to the
2863 Department of Transportation, including monies available from the Centennial Highway Fund
2864 and the Statewide Transportation Improvement Plan: 5600 West Reconstruction: 4500 South
2865 to 7000 South; Redwood Road: 12600 South to Bangerter Highway; I-15: Beck Street
2866 Overpass; I-215: 4700 South to SR-201; acquisition of rights-of-way for the Western
2867 Transportation Corridor; 11400 South: I-15 to Redwood Road; and State Street Reconstruction
2868 6400 South to 7800 South and 8000 South to 9000 South.
2869 (3) If any portion of the proceeds of the tax paid to the state are not required to pay
2870 principal, interest, and issuance costs of the bonds and the principal, interest, and issuance
2871 costs of the bond have been paid off, or if, after completion of the projects authorized under
2872 Subsection (2)(a) and payment of the costs of issuing and selling the bonds under Section
2873 63B-11-503 , any bond proceeds remain unexpended, the Department of Transportation may
2874 use those unexpended proceeds to pay all or part of the costs of construction projects in Salt
2875 Lake County that have been approved and prioritized by the Transportation Commission.
2876 (4) The commission, by resolution, or the state treasurer may make any statement of
2877 intent relating to a reimbursement that is necessary or desirable to comply with federal tax law.
2878 (5) The Department of Transportation may enter into agreements related to the
2879 projects before the receipt of proceeds of bonds issued under this chapter.
2880 Section 29. Section 72-2-117.5 is amended to read:
2881 72-2-117.5. Definitions -- Local Transportation Corridor Preservation Fund --
2882 Disposition of fund monies.
2883 (1) As used in this section:
2884 (a) "Council of governments" means a decision-making body in each county
2885 composed of the county governing body and the mayors of each municipality in the county.

2886 (b) "Metropolitan planning organization" has the same meaning as defined in Section
2887 72-1-208.5 .
2888 (2) There is created the Local Transportation Corridor Preservation Fund within the
2889 Transportation Fund.
2890 (3) The fund shall be funded from the following sources:
2891 (a) a local option highway construction and transportation corridor preservation fee
2892 imposed under Section 41-1a-1222 ;
2893 (b) appropriations made to the fund by the Legislature;
2894 (c) contributions from other public and private sources for deposit into the fund;
2895 (d) all monies collected from rents and sales of real property acquired with fund
2896 monies;
2897 (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
2898 as authorized by Title 63B, Bonds;
2899 (f) the portion of the sales and use tax described in Subsection [ 59-12-1703 (4)(a)(ii)]
2900 59-12-2217 (2)(b) and required by Subsection [ 59-12-1703 (7)(b)(i)] 59-12-2217 (8)(a) to be
2901 deposited into the fund; and
2902 (g) sales and use tax revenues deposited into the fund in accordance with Section
2903 [ 59-12-1903 ] 59-12-2218 .
2904 (4) (a) The fund shall earn interest.
2905 (b) All interest earned on fund monies shall be deposited into the fund.
2906 (c) All monies appropriated to the Local Transportation Corridor Preservation Fund
2907 are nonlapsing.
2908 (d) The State Tax Commission shall provide the department with sufficient data for
2909 the department to allocate the revenues:
2910 (i) provided under Subsection (3)(a) to each county imposing a local option highway
2911 construction and transportation corridor preservation fee under Section 41-1a-1222 ;
2912 (ii) provided under Subsection [ 59-12-1703 (4)(a)(ii)] 59-12-2217 (2)(b) to each county
2913 imposing a county option sales and use tax for transportation; and

2914 (iii) provided under Subsection (3)(g) to each county of the second class or city or
2915 town within a county of the second class that imposes the sales and use tax authorized by
2916 Section [ 59-12-1903 ] 59-12-2218 .
2917 (e) (i) The department shall annually allocate the interest earned on fund monies to
2918 each county based on the proportionate amount of interest earned on each county's allocation
2919 of funds under Subsection (4)(d) on an average monthly balance basis.
2920 (ii) The initial annual allocation of fund interest shall include all interest earned on
2921 fund monies since the creation of the fund.
2922 (f) The monies allocated under Subsection (4)(d):
2923 (i) shall be used for the purposes provided in this section for each county, city, or
2924 town; and
2925 (ii) are allocated to each county, city or town as provided in this section:
2926 (A) with the condition that the state will not be charged for any asset purchased with
2927 the monies allocated under Subsections (4)(d) and (e); and
2928 (B) are considered a local matching contribution for the purposes described under
2929 Section 72-2-123 if used on a state highway.
2930 (g) Administrative costs of the department to implement this section shall be paid
2931 from the fund.
2932 (5) (a) The department shall authorize the expenditure of fund monies to allow a
2933 highway authority to acquire real property or any interests in real property for state, county,
2934 and municipal highway corridors subject to:
2935 (i) monies available in the fund to each county under Subsections (4)(d) and (e); and
2936 (ii) the provisions of this section.
2937 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
2938 section.
2939 (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
2940 under this section but limited to a total of 5% of the purchase price of the property.
2941 (B) Any additional maintenance cost shall be paid from funds other than under this

2942 section.
2943 (C) Revenue generated by any property acquired under this section is excluded from
2944 the limitations under this Subsection (5)(c)(i).
2945 (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
2946 under this section.
2947 (d) Fund monies allocated under Subsections (4)(d) and (e) may be used by a county
2948 highway authority for countywide transportation planning if:
2949 (i) the county is not included in a metropolitan planning organization;
2950 (ii) the transportation planning is part of the county's continuing, cooperative, and
2951 comprehensive process for transportation planning, corridor preservation, right-of-way
2952 acquisition, and project programming;
2953 (iii) no more than four years allocation every 20 years to each county is used for
2954 transportation planning under this Subsection (5)(d); and
2955 (iv) the county otherwise qualifies to use the fund monies as provided under this
2956 section.
2957 (e) (i) Subject to Subsection (11), fund monies allocated under Subsections (4)(d) and
2958 (e) may be used by a county highway authority for transportation corridor planning that is part
2959 of the corridor elements of an ongoing work program of transportation projects.
2960 (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
2961 direction of:
2962 (A) the metropolitan planning organization if the county is within the boundaries of a
2963 metropolitan planning organization; or
2964 (B) the department if the county is not within the boundaries of a metropolitan
2965 planning organization.
2966 (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
2967 preserve highway corridors, promote long-term statewide transportation planning, save on
2968 acquisition costs, and promote the best interests of the state in a manner which minimizes
2969 impact on prime agricultural land.

2970 (ii) The Local Transportation Corridor Preservation Fund shall only be used to
2971 preserve a highway corridor that is right-of-way:
2972 (A) in a county of the first or second class for a:
2973 (I) state highway;
2974 (II) a principal arterial highway as defined in Section 72-4-102.5 ;
2975 (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
2976 (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
2977 (B) in a county of the third, fourth, fifth, or sixth class for a:
2978 (I) state highway;
2979 (II) a principal arterial highway as defined in Section 72-4-102.5 ;
2980 (III) a minor arterial highway as defined in Section 72-4-102.5 ;
2981 (IV) a major collector highway as defined in Section 72-4-102.5 ; or
2982 (V) a minor collector road as defined in Section 72-4-102.5 .
2983 (iii) The Local Transportation Corridor Preservation Fund may not be used for a
2984 highway corridor that is primarily a recreational trail as defined under Section 79-5-102 .
2985 (b) (i) The department shall develop and implement a program to educate highway
2986 authorities on the objectives, application process, use, and responsibilities of the Local
2987 Transportation Corridor Preservation Fund as provided under this section to promote the most
2988 efficient and effective use of fund monies including priority use on designated high priority
2989 corridor preservation projects.
2990 (ii) The department shall develop a model transportation corridor property acquisition
2991 policy or ordinance that meets federal requirements for the benefit of a highway authority to
2992 acquire real property or any interests in real property under this section.
2993 (c) The department shall authorize the expenditure of fund monies after determining
2994 that the expenditure is being made in accordance with this section from applications that are:
2995 (i) made by a highway authority;
2996 (ii) endorsed by the council of governments; and
2997 (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).

2998 (7) (a) (i) A council of governments shall establish a council of governments
2999 endorsement process which includes prioritization and application procedures for use of the
3000 monies allocated to each county under this section.
3001 (ii) The endorsement process under Subsection (7)(a)(i) may include review or
3002 endorsement of the preservation project by the:
3003 (A) metropolitan planning organization if the county is within the boundaries of a
3004 metropolitan planning organization; or
3005 (B) the department if the county is not within the boundaries of a metropolitan
3006 planning organization.
3007 (b) All fund monies shall be prioritized by each highway authority and council of
3008 governments based on considerations, including:
3009 (i) areas with rapidly expanding population;
3010 (ii) the willingness of local governments to complete studies and impact statements
3011 that meet department standards;
3012 (iii) the preservation of corridors by the use of local planning and zoning processes;
3013 (iv) the availability of other public and private matching funds for a project;
3014 (v) the cost-effectiveness of the preservation projects;
3015 (vi) long and short-term maintenance costs for property acquired; and
3016 (vii) whether the transportation corridor is included as part of:
3017 (A) the county and municipal master plan; and
3018 (B) (I) the statewide long range plan; or
3019 (II) the regional transportation plan of the area metropolitan planning organization if
3020 one exists for the area.
3021 (c) The council of governments shall:
3022 (i) establish a priority list of highway corridor preservation projects within the county;
3023 (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
3024 approval; and
3025 (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the

3026 members of the county legislative body.
3027 (d) A county's council of governments may only submit one priority list described in
3028 Subsection (7)(c)(i) per calendar year.
3029 (e) A county legislative body may only consider and approve one priority list
3030 described in Subsection (7)(c)(i) per calendar year.
3031 (8) (a) Unless otherwise provided by written agreement with another highway
3032 authority, the highway authority that holds the deed to the property is responsible for
3033 maintenance of the property.
3034 (b) The transfer of ownership for property acquired under this section from one
3035 highway authority to another shall include a recorded deed for the property and a written
3036 agreement between the highway authorities.
3037 (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
3038 Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
3039 funds under this section.
3040 (b) The highway authority shall pledge the necessary part of the revenues of the Local
3041 Transportation Corridor Preservation Fund to the payment of principal and interest on the
3042 bonds or other obligations.
3043 (10) (a) A highway authority may not apply for monies under this section to purchase
3044 a right-of-way for a state highway unless the highway authority has:
3045 (i) a transportation corridor property acquisition policy or ordinance in effect that
3046 meets federal requirements for the acquisition of real property or any interests in real property
3047 under this section; and
3048 (ii) an access management policy or ordinance in effect that meets the requirements
3049 under Subsection 72-2-117 (9).
3050 (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
3051 written agreement with the department for the acquisition of real property or any interests in
3052 real property under this section.
3053 (11) (a) The department shall, in expending or authorizing the expenditure of fund

3054 monies, ensure to the extent possible that the fund monies allocated to a city or town in
3055 accordance with Subsection (4) are expended:
3056 (i) to fund a project or service as allowed by this section within the city or town to
3057 which the fund monies are allocated;
3058 (ii) to pay debt service, principal, or interest on a bond or other obligation as allowed
3059 by this section if that bond or other obligation is:
3060 (A) secured by monies allocated to the city or town; and
3061 (B) issued to finance a project or service as allowed by this section within the city or
3062 town to which the fund monies are allocated;
3063 (iii) to fund transportation planning as allowed by this section within the city or town
3064 to which the fund monies are allocated; or
3065 (iv) for another purpose allowed by this section within the city or town to which the
3066 fund monies are allocated.
3067 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3068 the department may make rules to implement the requirements of Subsection (11)(a).
3069 Section 30. Section 72-2-121 is amended to read:
3070 72-2-121. County of the First Class State Highway Projects Fund.
3071 (1) There is created a special revenue fund entitled the County of the First Class State
3072 Highway Projects Fund.
3073 (2) The fund consists of monies generated from the following revenue sources:
3074 (a) any voluntary contributions received for new construction, major renovations, and
3075 improvements to state highways within a county of the first class;
3076 (b) the portion of the sales and use tax described in Subsection [ 59-12-502 (5)(a)]
3077 59-12-2214 (3)(b) deposited in or transferred to the fund;
3078 (c) the portion of the sales and use tax described in Subsection [ 59-12-1703 (4)(a)(ii)]
3079 59-12-2217 (2)(b) and required by Subsection [ 59-12-1703 (7)(b)(ii)] 59-12-2217 (8)(b) to be
3080 deposited in or transferred to the fund; and
3081 (d) a portion of the local option highway construction and transportation corridor

3082 preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in
3083 or transferred to the fund.
3084 (3) (a) The fund shall earn interest.
3085 (b) All interest earned on fund monies shall be deposited into the fund.
3086 (4) The executive director shall use fund monies only:
3087 (a) to pay debt service and bond issuance costs for bonds issued under Sections
3088 63B-16-102 and 63B-18-402 ;
3089 (b) for right-of-way acquisition, new construction, major renovations, and
3090 improvements to state highways within a county of the first class and to pay any debt service
3091 and bond issuance costs related to those projects;
3092 (c) for fiscal year 2008-09 only, to pay for or to provide funds to a municipality or
3093 county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
3094 improvements to highways described in Subsection 63B-16-102 (3); and
3095 (d) for fiscal year 2009-10 only, to pay for or to provide funds to a municipality or
3096 county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
3097 improvements to highways described in Subsection 63B-18-402 (2).
3098 (5) (a) For fiscal years beginning with fiscal year 2010-11 and ending with fiscal year
3099 2012-13, the executive director shall use at least 20% of fund monies available that are not
3100 required to pay principal, interest, and issuance costs of bonds issued under Sections
3101 63B-16-102 and 63B-18-402 to pay for:
3102 (i) east-west transportation route improvements in a county of the first class; and
3103 (ii) state highway capacity improvement and congestion mitigation projects in a
3104 county of the first class.
3105 (b) For a fiscal year beginning on or after July 1, 2013, the executive director shall use
3106 at least 25% of fund monies available that are not required to pay principal, interest, and
3107 issuance costs of bonds issued under Sections 63B-16-102 and 63B-18-402 to pay for:
3108 (i) east-west transportation route improvements in a county of the first class; and
3109 (ii) state highway capacity improvement and congestion mitigation projects in a

3110 county of the first class.
3111 (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
3112 fund and bond proceeds from bonds issued under Sections 63B-16-102 and 63B-18-402 are
3113 considered a local matching contribution for the purposes described under Section 72-2-123 .
3114 (7) The additional administrative costs of the department to administer this fund shall
3115 be paid from the monies in the fund.
3116 Section 31. Section 72-2-121.1 is amended to read:
3117 72-2-121.1. Highway Projects Within Counties Fund -- Accounting for revenues
3118 -- Interest -- Expenditure of revenues.
3119 (1) There is created a special revenue fund known as the Highway Projects Within
3120 Counties Fund.
3121 (2) The Highway Projects Within Counties Fund shall be funded by revenues
3122 generated by a tax imposed by a county under [Title 59, Chapter 12, Part 15, County Option
3123 Sales and Use Tax for Highways, Fixed Guideways, or Systems for Public Transit Act] Section
3124 59-12-2216 , if those revenues are allocated:
3125 (a) for a purpose described in Subsection [59-12-1503(2)(a)(iii)] 59-12-2216 (2)(c);
3126 and
3127 (b) in accordance with Section [ 59-12-1503 ] 59-12-2216 .
3128 (3) The department shall make a separate accounting for:
3129 (a) the revenues described in Subsection (2); and
3130 (b) each county for which revenues are deposited into the Highway Projects Within
3131 Counties Fund.
3132 (4) (a) The Highway Projects Within Counties Fund shall earn interest.
3133 (b) The department shall allocate the interest earned on the [State] Highway Projects
3134 Within Counties Fund:
3135 (i) proportionately;
3136 (ii) to each county's balance in the Highway Projects Within Counties Fund; and
3137 (iii) on the basis of each county's balance in the Highway Projects Within Counties

3138 Fund.
3139 (5) [(a)] The department shall expend the revenues and interest deposited into the
3140 Highway Projects Within Counties Fund to pay:
3141 [(i)] (a) for a state highway project within the county:
3142 [(A)] (i) described in Subsection [ 59-12-1503 (2)(a)(iii)(A)] 59-12-2216 (2)(c)(i); and
3143 [(B)] (ii) for which the requirements of Subsection [ 59-12-1503 (5)] 59-12-2216 (6) are
3144 met;
3145 [(ii)] (b) debt service on a project described in Subsection (5)(a); or
3146 [(iii)] (c) bond issuance costs [relating] related to a project described in Subsection
3147 (5)(a).
3148 [(b) (i) If a county legislative body submits a request to the department in writing, the
3149 department shall transfer revenues and interest deposited into the Highway Projects Within
3150 Counties Fund to the county legislative body to pay:]
3151 [(A) for a local highway of regional significance project described in Subsection
3152 59-12-1503 (2)(a)(iii)(A);]
3153 [(B) debt service on a project described in Subsection (5)(b)(i)(A); or]
3154 [(C) bond issuance costs relating to a project described in Subsection (5)(b)(i)(A).]
3155 [(ii) The request submitted under Subsection (5)(b)(i) shall specify:]
3156 [(A) the amount of revenues requested for transfer; and]
3157 [(B) the local highway of regional significance project that the funds requested under
3158 this Subsection (5)(b) will be expended on.]
3159 Section 32. Section 72-2-121.2 is amended to read:
3160 72-2-121.2. Definition -- County of the Second Class State Highway Projects
3161 Fund -- Use of fund monies.
3162 (1) As used in this section, "fund" means the County of the Second Class State
3163 Highway Projects Fund created by this section.
3164 (2) There is created within the Transportation Fund a special revenue fund known as
3165 the County of the Second Class State Highway Projects Fund.

3166 (3) The fund shall be funded by monies collected from:
3167 (a) any voluntary contributions the department receives for new construction, major
3168 renovations, and improvements to state highways within a county of the second class; and
3169 (b) sales and use taxes deposited into the fund in accordance with Section
3170 [ 59-12-1903 ] 59-12-2218 .
3171 (4) The department shall make a separate accounting for:
3172 (a) the revenues described in Subsection (3); and
3173 (b) each county of the second class or city or town within a county of the second class
3174 for which revenues are deposited into the fund.
3175 (5) (a) The fund shall earn interest.
3176 (b) Interest earned on fund monies shall be deposited into the fund.
3177 (6) Subject to Subsection (9), the executive director may use fund monies only:
3178 (a) for right-of-way acquisition, new construction, major renovations, and
3179 improvements to state highways within a county of the second class or a city or town within a
3180 county of the second class in an amount that does not exceed the amounts deposited for or
3181 allocated to that county of the second class or city or town within a county of the second class
3182 in accordance with this section;
3183 (b) to pay any debt service and bond issuance costs related to a purpose described in
3184 Subsection (6)(a) in an amount that does not exceed the amounts deposited for or allocated to
3185 that county of the second class or city or town within a county of the second class described in
3186 Subsection (6)(a) in accordance with this section; and
3187 (c) to pay the costs of the department to administer the fund in an amount not to
3188 exceed interest earned by the fund monies.
3189 (7) If interest remains in the fund after the executive director pays the costs of the
3190 department to administer the fund, the interest shall be:
3191 (a) allocated to each county of the second class or city or town within a county of the
3192 second class for which revenues are deposited into the fund in proportion to the deposits made
3193 into the fund for that county of the second class or city or town within a county of the second

3194 class; and
3195 (b) expended for the purposes described in Subsection (6).
3196 (8) Revenues described in Subsection (3)(b) that are deposited into the fund are
3197 considered to be a local matching contribution for the purposes described in Section 72-2-123 .
3198 (9) (a) The executive director shall, in using fund monies, ensure to the extent possible
3199 that the fund monies deposited for or allocated to a city or town are used:
3200 (i) for a purpose described in Subsection (6)(a) within the city or town to which the
3201 fund monies are allocated;
3202 (ii) to pay debt service and bond issuance costs described in Subsection (6)(b) if the
3203 debt service and bond issuance costs are:
3204 (A) secured by monies deposited for or allocated to the city or town; and
3205 (B) related to a project described in Subsection (6)(a) within the city or town to which
3206 the fund monies are allocated; or
3207 (iii) for a purpose described in Subsection (6)(c).
3208 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3209 the department may make rules to implement the requirements of Subsection (9)(a).
3210 Section 33. Section 72-10-215 is amended to read:
3211 72-10-215. Restrictions on use of airport revenue to finance a fixed guideway.
3212 An airport operator may not use airport revenue to contribute to the cost of
3213 constructing, equipping, maintaining, or operating any portion of a fixed guideway as defined
3214 in Section [ 59-12-1702 ] 59-12-102 .
3215 Section 34. Repealer.
3216 This bill repeals:
3217 Section 59-12-501, Public transit tax -- Base -- Rate -- Voter approval.
3218 Section 59-12-502, Additional public transit tax for a fixed guideway, expanded
3219 public transportation system, airport facility, or to be deposited into the County of the
3220 First Class State Highway Projects Fund -- Base -- Rate -- Voter approval -- Exception to
3221 voter approval requirement.

3222 Section 59-12-503, Public transit taxes -- Local option direct transfer.
3223 Section 59-12-504, Enactment or repeal of tax -- Effective date -- Notice
3224 requirements -- Administration, collection, and enforcement of tax.
3225 Section 59-12-506, Seller or certified service provider reliance on commission
3226 information.
3227 Section 59-12-507, Certified service provider or model 2 seller reliance on
3228 commission certified software.
3229 Section 59-12-508, Purchaser relief from liability.
3230 Section 59-12-1001, Authority to impose tax for highways or to fund a system for
3231 public transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements
3232 -- Election requirements -- Notice of election requirements -- Exceptions to voter
3233 approval requirements -- Enactment or repeal of tax -- Effective date -- Notice
3234 requirements.
3235 Section 59-12-1002, Collection of taxes by commission -- Administration,
3236 collection, and enforcement of tax -- Charge for service.
3237 Section 59-12-1004, Seller or certified service provider reliance on commission
3238 information.
3239 Section 59-12-1005, Certified service provider or model 2 seller reliance on
3240 commission certified software.
3241 Section 59-12-1006, Purchaser relief from liability.
3242 Section 59-12-1501, Title.
3243 Section 59-12-1502, Definitions.
3244 Section 59-12-1503, Opinion question election -- Base -- Rate -- Imposition of tax
3245 -- Use of tax revenues -- Administration, collection, and enforcement of tax by
3246 commission -- Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
3247 Section 59-12-1505, Seller or certified service provider reliance on commission
3248 information.
3249 Section 59-12-1506, Certified service provider or model 2 seller reliance on

3250 commission certified software.
3251 Section 59-12-1507, Purchaser relief from liability.
3252 Section 59-12-1701, Title.
3253 Section 59-12-1702, Definitions.
3254 Section 59-12-1703, Opinion question election -- Base -- Rate -- Imposition of tax
3255 -- Use of tax revenues -- Administration, collection, and enforcement of tax by
3256 commission -- Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
3257 Section 59-12-1704, Written project prioritization process for new transportation
3258 capacity projects.
3259 Section 59-12-1705, Project selection using the written prioritization process --
3260 Report.
3261 Section 59-12-1706, Seller or certified service provider reliance on commission
3262 information.
3263 Section 59-12-1707, Certified service provider or model 2 seller reliance on
3264 commission certified software.
3265 Section 59-12-1708, Purchaser relief from liability.
3266 Section 59-12-1901, Title.
3267 Section 59-12-1902, Definitions.
3268 Section 59-12-1904, Seller or certified service provider reliance on commission
3269 information.
3270 Section 59-12-1905, Certified service provider or model 2 seller reliance on
3271 commission certified software.
3272 Section 59-12-1906, Purchaser relief from liability.
3273 Section 35. Effective date.
3274 This bill takes effect on July 1, 2010.
3275 Section 36. Revisor instructions.
3276 It is the intent of the Legislature that, in preparing the Utah Code database for
3277 publication, the Office of Legislative Research and General Counsel shall replace the

3278 references in Section 59-12-2212.1 from "this bill" to the bill's designated chapter number in
3279 the Laws of Utah.