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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 ;
         &n