Download Zipped Introduced WordPerfect SB0207S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 207

Senator Dennis E. Stowell proposes the following substitute bill:


             1     
TAX EXEMPTION FOR CEDAR BAND OF PAIUTE TRIBE

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Dennis E. Stowell

             5     
House Sponsor: Michael E. Noel

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to revenue and taxation to exempt certain
             10      transactions on Cedar Band reservation land from specified taxes imposed under state
             11      law.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    provides conditions for an exemption to take effect;
             16          .    requires an agreement between the governor and the Cedar Band;
             17          .    provides for the State Tax Commission to enter into an agreement related to
             18      implementing an exemption;
             19          .    provides for rulemaking by the State Tax Commission related to implementing an
             20      exemption;
             21          .    provides for reporting;
             22          .    provides for termination of an exemption; and
             23          .    makes technical and conforming changes.
             24      Monies Appropriated in this Bill:
             25          None


             26      Other Special Clauses:
             27          None
             28      Utah Code Sections Affected:
             29      AMENDS:
             30          59-12-104, as last amended by Laws of Utah 2009, Chapters 31, 203, 212, and 385
             31          59-13-201, as last amended by Laws of Utah 2008, Chapter 382
             32          59-13-301, as last amended by Laws of Utah 2008, Chapters 153 and 382
             33          59-14-204.5, as enacted by Laws of Utah 2004, Chapter 217
             34      ENACTS:
             35          59-1-1501, Utah Code Annotated 1953
             36          59-1-1502, Utah Code Annotated 1953
             37          59-1-1503, Utah Code Annotated 1953
             38          59-1-1504, Utah Code Annotated 1953
             39          59-1-1505, Utah Code Annotated 1953
             40          59-1-1506, Utah Code Annotated 1953
             41          59-1-1507, Utah Code Annotated 1953
             42          59-1-1508, Utah Code Annotated 1953
             43          59-1-1509, Utah Code Annotated 1953
             44     
             45      Be it enacted by the Legislature of the state of Utah:
             46          Section 1. Section 59-1-1501 is enacted to read:
             47     
Part 15. Exemptions Related to the Cedar Band of the Paiute Tribe Act

             48          59-1-1501. Title.
             49          This part is known as the "Exemptions Related to the Cedar Band of the Paiute Tribe
             50      Act."
             51          Section 2. Section 59-1-1502 is enacted to read:
             52          59-1-1502. Definitions.
             53          As used in this part:
             54          (1) "Applicable tax" means:
             55          (a) a tax imposed under Chapter 12, Sales and Use Tax Act, for amounts paid or
             56      charged for a transaction that occurs on Cedar Band reservation land if the transaction is


             57      subject to taxation under:
             58          (i) Chapter 12, Part 1, Tax Collection; or
             59          (ii) Chapter 12, Sales and Use Tax Act, except for the tax described in Subsection
             60      (1)(a)(i);
             61          (b) a tax imposed under Chapter 13, Motor and Special Fuel Tax Act, on motor fuel or
             62      special fuel that is sold, used, or received for sale or used on Cedar Band reservation land; or
             63          (c) a tax imposed under Chapter 14, Cigarette and Tobacco Tax and Licensing Act, on
             64      the sale, use, storage, or distribution of a cigarette or tobacco product on Cedar Band
             65      reservation land.
             66          (2) "Base" means the transactions that are subject to or exempt from a tax.
             67          (3) "Cedar Band" means the Cedar Band of the Paiute Indian Tribe of Utah as
             68      recognized on July 12, 2002, 67 Fed. Reg. 46330, in accordance with the Paiute Indian Tribe of
             69      Utah Restoration Act, 25 U.S.C. Sec. 761 et seq.
             70          (4) "Cedar Band reservation land" means the geographical area within the boundaries
             71      of the reservation established for the Cedar Band by the Secretary of the Interior in accordance
             72      with the Paiute Indian Tribe of Utah Restoration Act, 25 U.S.C. Sec. 761 et seq., Pub. L.
             73      98-219, or another act of the United States Congress.
             74          (5) "Tax rate" does not include the following a taxpayer may be required to pay to the
             75      Cedar Band in relation to a tribal tax:
             76          (a) an addition to a tax;
             77          (b) an administrative cost;
             78          (c) interest that accrues; or
             79          (d) a penalty that accrues.
             80          (6) "Tribal tax" means a tax imposed by the Cedar Band in accordance with the
             81      Constitution of the Paiute Indian Tribe of Utah, as amended.
             82          Section 3. Section 59-1-1503 is enacted to read:
             83          59-1-1503. Exempt transactions -- Agreement between Cedar Band and the
             84      governor.
             85          Subject to Section 59-1-1508 , a transaction that occurs on Cedar Band reservation land
             86      is exempt from taxation to the extent provided in Section 59-1-1506 with respect to an
             87      applicable tax beginning the later of:


             88          (1) July 1, 2011; and
             89          (2) the first day of the first calendar quarter after the later of the day on which:
             90          (a) the governor notifies the commission that an agreement with the governor that
             91      meets the conditions of Section 59-1-1504 takes effect; and
             92          (b) an agreement with the commission described in Section 59-1-1505 takes effect.
             93          Section 4. Section 59-1-1504 is enacted to read:
             94          59-1-1504. Agreement between Cedar Band and the governor
             95          (1) An exemption under this part is subject to the governor entering into an agreement
             96      with the Cedar Band that:
             97          (a) provides for documentation that the Cedar Band imposes a tribal tax;
             98          (b) provides for documentation that the Cedar Band has the authority under the laws of
             99      the Paiute Indian Tribe of Utah to impose the tribal tax;
             100          (c) certifies that the tribal tax the Cedar Band imposes is substantially similar to the
             101      applicable tax with respect to which the Cedar Band seeks an exemption, including the base for
             102      the tribal tax being substantially similar to the base for the applicable tax;
             103          (d) certifies that the tribal tax described in Subsection (1)(a) is imposed without regard
             104      to whether the person required to pay the tribal tax is an enrolled member of the Cedar Band;
             105          (e) certifies the tax rate for the tribal tax complies with Section 59-1-1506 ;
             106          (f) prohibits the payment of per capita payments to a member of the Paiute Indian Tribe
             107      of Utah of revenues collected from the tribal tax;
             108          (g) includes findings of the governor that:
             109          (i) the tribal tax includes procedural protections for a person required to pay the tribal
             110      tax that meet the due process standards of the Constitution of the United States; and
             111          (ii) in relation to the tribal tax, the Cedar Band has implemented a revenue allocation
             112      plan that to the satisfaction of the governor allocates the revenue collected from the tribal tax:
             113          (A) in a manner that does not result in duplication of government services amongst the
             114      Paiute Indian Tribe of Utah, the state, and local government; and
             115          (B) to:
             116          (I) the Cedar Band providing a government service that is substantially similar to and
             117      not duplicative of the government services that would be funded with the revenues that would
             118      be collected from an applicable tax;


             119          (II) the Cedar Band contracting with a state or a local government to provide a
             120      government service that is substantially similar to and not duplicative of the government
             121      services that would be funded with the revenues that would be collected from an applicable
             122      tax; or
             123          (III) if it is impractical to meet the requirements of Subsection (1)(g)(ii)(B)(I) or (II),
             124      provide a government service that meets a critical need of the Cedar Band, whether provided
             125      by the Cedar Band or through contract with another governmental body;
             126          (h) provides for certification by the Cedar Band that the Cedar Band annually enters
             127      into an agreement with the county in which Cedar Band reservation land is located to address
             128      the extent to which the Cedar Band will compensate the county for services provided to the
             129      Cedar Band related to Cedar Band reservation land;
             130          (i) provides that the exemption is allowed in accordance with this part; and
             131          (j) provides for procedures and conditions related to terminating the agreement.
             132          (2) An agreement under Subsection (1):
             133          (a) may not:
             134          (i) authorize the imposition of a tax, fee, or charge;
             135          (ii) provide a refund, credit, or similar reduction that is greater or different than the
             136      exemption allowed in accordance with this part; or
             137          (iii) affect the power of the Legislature to establish rates of taxation; and
             138          (b) shall:
             139          (i) be in writing;
             140          (ii) be signed by:
             141          (A) the governor; and
             142          (B) the chair of the Cedar Band;
             143          (iii) be conditioned on obtaining any approval required by federal law; and
             144          (iv) state the effective date of the agreement.
             145          (3) If there is a conflict between this part and the agreement described in Subsection
             146      (1), this part governs.
             147          (4) The governor shall provide a copy of an agreement executed under this section to
             148      the county in which Cedar Band reservation land is located.
             149          Section 5. Section 59-1-1505 is enacted to read:


             150          59-1-1505. Commission agreement with Cedar Band.
             151          (1) An exemption may not take effect under this part unless the commission enters into
             152      an agreement with the Cedar Band that:
             153          (a) provides a procedure for determining when the location of a transaction is on Cedar
             154      Band reservation land;
             155          (b) provides a procedure by which the Cedar Band notifies the commission that the
             156      Cedar Band will terminate or change the tax rate or base of a tribal tax including notifying the
             157      commission of:
             158          (i) the effective date of the termination or change of the tax rate or base; and
             159          (ii) if the tax rate or base is to be changed, the new tax rate or base;
             160          (c) specifies which records the Cedar Band shall maintain in a form prescribed by the
             161      commission that are necessary to determine the implementation of an exemption under this
             162      part, including the time period for which a record shall be maintained;
             163          (d) notwithstanding Section 59-1-403 and subject to federal law governing the
             164      disclosure of tax information, may authorize the commission to disclose to the Cedar Band
             165      information that:
             166          (i) is contained in a record filed with the commission; and
             167          (ii) relates to a tribal tax;
             168          (e) provides for an inspection or audit by the commission of a person located or doing
             169      business on Cedar Band reservation land, including a joint audit or investigation with the
             170      commission and the Cedar Band;
             171          (f) addresses any other issue related to the commission's administration of an
             172      exemption from an applicable tax; and
             173          (g) provides for procedures and conditions related to terminating the agreement.
             174          (2) The agreement described in Subsection (1):
             175          (a) may not:
             176          (i) authorize the imposition of a tax or fee;
             177          (ii) provide a refund, credit, or similar reduction of taxes greater than or different than
             178      the exemption allowed in accordance with this part; or
             179          (iii) affect the power of the Legislature to establish rates of taxation; and
             180          (b) shall:


             181          (i) be in writing;
             182          (ii) be signed by:
             183          (A) the chair of the commission or the chair's designee; and
             184          (B) the chair of the Cedar Band;
             185          (iii) be conditioned on obtaining any approval required by federal law; and
             186          (iv) state the effective date of the agreement.
             187          (3) The commission shall provide a copy of the agreement, and any amendments to the
             188      agreement, to the county in which Cedar Band reservation land is located.
             189          (4) If there is a conflict between this part and the agreement described in this section,
             190      this part governs.
             191          Section 6. Section 59-1-1506 is enacted to read:
             192          59-1-1506. Tax rate and amount of exemption.
             193          (1) As used in this section:
             194          (a) "Combined state and local tax rate" means the sum of the state and local tax rates
             195      imposed on a transaction under the applicable taxes.
             196          (b) "Combined tribal tax rate" means the sum of the tribal tax rates imposed on a
             197      transaction under the tribal taxes that are imposed on the transaction.
             198          (c) "Percentage of exemption" means the percentage specified in Subsection (3) for the
             199      day on which a transaction occurs.
             200          (2) To qualify for an exemption under this part, the Cedar Band shall impose a
             201      combined tribal tax rate that equals or exceeds an amount calculated by multiplying the
             202      percentage of exemption applicable to the transaction under Subsection (3) by the combined
             203      state and local tax rate for the transaction.
             204          (3) A transaction that occurs on Cedar Band reservation land may be exempt from
             205      taxation under this part only:
             206          (a) on or after July 1, 2011; and
             207          (b) to the following extent:
             208          (i) on and after July 1, 2011, but on and before June 30, 2012, an exemption is 50% of
             209      the combined state and local tax rate; and
             210          (ii) on and after July 1, 2012, an exemption is 100% of the combined state and local
             211      tax rate.


             212          (4) (a) If, but for the exemption under this part, a transaction is subject to an applicable
             213      tax:
             214          (i) the seller shall collect and pay to the state the difference described in Subsection
             215      (4)(b) if that difference is greater than $0; and
             216          (ii) a person may not require the state to provide a refund, a credit, or similar reduction
             217      if the difference described in Subsection (4)(b) is equal to or less than $0.
             218          (b) The difference described in Subsection (4)(a) is equal to the difference between:
             219          (i) the amount of an applicable tax imposed on the transaction; and
             220          (ii) subject to Subsection (2), the combined tribal tax imposed and collected by the
             221      Cedar Band on the transaction.
             222          Section 7. Section 59-1-1507 is enacted to read:
             223          59-1-1507. Reporting requirements.
             224          (1) (a) The governor shall issue a written report by no later than February 1 of each
             225      year as to whether an agreement meeting the requirements of Section 59-1-1504 is in effect.
             226          (b) The governor shall provide a written report prepared under this Subsection (1) by
             227      no later than February 1 of each year to:
             228          (i) the commission;
             229          (ii) a county in which Cedar Band reservation land is located; and
             230          (iii) the Native American Legislative Liaison Committee.
             231          (2) (a) Beginning in the 2011 interim, and ending in the 2016 interim, the governor
             232      shall annually report to the Native American Legislative Liaison Committee as to the effect of
             233      the exemption on the Cedar Band reservation land in relation to:
             234          (i) the provision of government services; and
             235          (ii) economic development.
             236          (b) The chairs of the Native American Legislative Liaison Committee shall invite the
             237      Cedar Band to report to the Native American Legislative Liaison Committee in conjunction
             238      with the governor's report under Subsection (2)(a).
             239          Section 8. Section 59-1-1508 is enacted to read:
             240          59-1-1508. Termination of exemption.
             241          An exemption under this part terminates beginning on the first day of the first calendar
             242      quarter after the sooner of:


             243          (1) the day on which an agreement described in Section 59-1-1503 terminates;
             244          (2) the day on which the Cedar Band no longer imposes a tribal tax with respect to
             245      which an exemption from an applicable tax is allowed in accordance with this part;
             246          (3) the day on which the Cedar Band no longer has the authority to impose a tribal tax
             247      with respect to which an exemption from an applicable tax is allowed in accordance with this
             248      part; or
             249          (4) the day on which the Cedar Band imposes a tax rate that is lower than the tax rate
             250      required by Section 59-1-1506 .
             251          Section 9. Section 59-1-1509 is enacted to read:
             252          59-1-1509. Rulemaking.
             253          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             254      commission may make rules regarding the procedures for administering or enforcing an
             255      exemption from an applicable tax under this part, except that the rules shall be consistent with
             256      the agreement described in Section 59-1-1505 .
             257          Section 10. Section 59-12-104 is amended to read:
             258           59-12-104. Exemptions.
             259          The following sales and uses are exempt from the taxes imposed by this chapter:
             260          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             261      under Chapter 13, Motor and Special Fuel Tax Act;
             262          (2) sales to the state, its institutions, and its political subdivisions; however, this
             263      exemption does not apply to sales of:
             264          (a) construction materials except:
             265          (i) construction materials purchased by or on behalf of institutions of the public
             266      education system as defined in Utah Constitution Article X, Section 2, provided the
             267      construction materials are clearly identified and segregated and installed or converted to real
             268      property which is owned by institutions of the public education system; and
             269          (ii) construction materials purchased by the state, its institutions, or its political
             270      subdivisions which are installed or converted to real property by employees of the state, its
             271      institutions, or its political subdivisions; or
             272          (b) tangible personal property in connection with the construction, operation,
             273      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities


             274      providing additional project capacity, as defined in Section 11-13-103 ;
             275          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             276          (i) the proceeds of each sale do not exceed $1; and
             277          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             278      the cost of the item described in Subsection (3)(b) as goods consumed; and
             279          (b) Subsection (3)(a) applies to:
             280          (i) food and food ingredients; or
             281          (ii) prepared food;
             282          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             283          (i) alcoholic beverages;
             284          (ii) food and food ingredients; or
             285          (iii) prepared food;
             286          (b) sales of tangible personal property or a product transferred electronically:
             287          (i) to a passenger;
             288          (ii) by a commercial airline carrier; and
             289          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             290          (c) services related to Subsection (4)(a) or (b);
             291          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             292      and equipment:
             293          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             294      North American Industry Classification System of the federal Executive Office of the
             295      President, Office of Management and Budget; and
             296          (II) for:
             297          (Aa) installation in an aircraft, including services relating to the installation of parts or
             298      equipment in the aircraft;
             299          (Bb) renovation of an aircraft; or
             300          (Cc) repair of an aircraft; or
             301          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             302      commerce; or
             303          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             304      aircraft operated by a common carrier in interstate or foreign commerce; and


             305          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             306      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             307      refund:
             308          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             309          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             310          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             311      the sale prior to filing for the refund;
             312          (iv) for sales and use taxes paid under this chapter on the sale;
             313          (v) in accordance with Section 59-1-1410 ; and
             314          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             315      the person files for the refund on or before September 30, 2011;
             316          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             317      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             318      exhibitor, distributor, or commercial television or radio broadcaster;
             319          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             320      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             321      washing of tangible personal property;
             322          (b) if a seller that sells at the same business location assisted cleaning or washing of
             323      tangible personal property and cleaning or washing of tangible personal property that is not
             324      assisted cleaning or washing of tangible personal property, the exemption described in
             325      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             326      or washing of the tangible personal property; and
             327          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             328      Utah Administrative Rulemaking Act, the commission may make rules:
             329          (i) governing the circumstances under which sales are at the same business location;
             330      and
             331          (ii) establishing the procedures and requirements for a seller to separately account for
             332      sales of assisted cleaning or washing of tangible personal property;
             333          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             334      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             335      fulfilled;


             336          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             337      this state if the vehicle is:
             338          (a) not registered in this state; and
             339          (b) (i) not used in this state; or
             340          (ii) used in this state:
             341          (A) if the vehicle is not used to conduct business, for a time period that does not
             342      exceed the longer of:
             343          (I) 30 days in any calendar year; or
             344          (II) the time period necessary to transport the vehicle to the borders of this state; or
             345          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             346      the vehicle to the borders of this state;
             347          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             348          (i) the item is intended for human use; and
             349          (ii) (A) a prescription was issued for the item; or
             350          (B) the item was purchased by a hospital or other medical facility; and
             351          (b) (i) Subsection (10)(a) applies to:
             352          (A) a drug;
             353          (B) a syringe; or
             354          (C) a stoma supply; and
             355          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             356      commission may by rule define the terms:
             357          (A) "syringe"; or
             358          (B) "stoma supply";
             359          (11) sales or use of property, materials, or services used in the construction of or
             360      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             361          (12) (a) sales of an item described in Subsection (12)(c) served by:
             362          (i) the following if the item described in Subsection (12)(c) is not available to the
             363      general public:
             364          (A) a church; or
             365          (B) a charitable institution;
             366          (ii) an institution of higher education if:


             367          (A) the item described in Subsection (12)(c) is not available to the general public; or
             368          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             369      offered by the institution of higher education; or
             370          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             371          (i) a medical facility; or
             372          (ii) a nursing facility; and
             373          (c) Subsections (12)(a) and (b) apply to:
             374          (i) food and food ingredients;
             375          (ii) prepared food; or
             376          (iii) alcoholic beverages;
             377          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             378      or a product transferred electronically by a person:
             379          (i) regardless of the number of transactions involving the sale of that tangible personal
             380      property or product transferred electronically by that person; and
             381          (ii) not regularly engaged in the business of selling that type of tangible personal
             382      property or product transferred electronically;
             383          (b) this Subsection (13) does not apply if:
             384          (i) the sale is one of a series of sales of a character to indicate that the person is
             385      regularly engaged in the business of selling that type of tangible personal property or product
             386      transferred electronically;
             387          (ii) the person holds that person out as regularly engaged in the business of selling that
             388      type of tangible personal property or product transferred electronically;
             389          (iii) the person sells an item of tangible personal property or product transferred
             390      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             391          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             392      this state in which case the tax is based upon:
             393          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             394      sold; or
             395          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             396      value of the vehicle or vessel being sold at the time of the sale as determined by the
             397      commission; and


             398          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             399      commission shall make rules establishing the circumstances under which:
             400          (i) a person is regularly engaged in the business of selling a type of tangible personal
             401      property or product transferred electronically;
             402          (ii) a sale of tangible personal property or a product transferred electronically is one of
             403      a series of sales of a character to indicate that a person is regularly engaged in the business of
             404      selling that type of tangible personal property or product transferred electronically; or
             405          (iii) a person holds that person out as regularly engaged in the business of selling a type
             406      of tangible personal property or product transferred electronically;
             407          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             408      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             409      facility, for the following:
             410          (i) machinery and equipment that:
             411          (A) are used:
             412          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             413      recycler described in Subsection 59-12-102 (52)(b):
             414          (Aa) in the manufacturing process;
             415          (Bb) to manufacture an item sold as tangible personal property; and
             416          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             417      (14)(a)(i)(A)(I) in the state; or
             418          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             419      59-12-102 (52)(b):
             420          (Aa) to process an item sold as tangible personal property; and
             421          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             422      (14)(a)(i)(A)(II) in the state; and
             423          (B) have an economic life of three or more years; and
             424          (ii) normal operating repair or replacement parts that:
             425          (A) have an economic life of three or more years; and
             426          (B) are used:
             427          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             428      recycler described in Subsection 59-12-102 (52)(b):


             429          (Aa) in the manufacturing process; and
             430          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             431      state; or
             432          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             433      59-12-102 (52)(b):
             434          (Aa) to process an item sold as tangible personal property; and
             435          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             436      state;
             437          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             438      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             439      for the following:
             440          (i) machinery and equipment that:
             441          (A) are used:
             442          (I) in the manufacturing process;
             443          (II) to manufacture an item sold as tangible personal property; and
             444          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             445      (14)(b) in the state; and
             446          (B) have an economic life of three or more years; and
             447          (ii) normal operating repair or replacement parts that:
             448          (A) are used:
             449          (I) in the manufacturing process; and
             450          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             451          (B) have an economic life of three or more years;
             452          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             453      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             454      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             455      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             456      of the 2002 North American Industry Classification System of the federal Executive Office of
             457      the President, Office of Management and Budget:
             458          (i) machinery and equipment that:
             459          (A) are used:


             460          (I) (Aa) in the production process, other than the production of real property; or
             461          (Bb) in research and development; and
             462          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             463      in the state; and
             464          (B) have an economic life of three or more years; and
             465          (ii) normal operating repair or replacement parts that:
             466          (A) have an economic life of three or more years; and
             467          (B) are used in:
             468          (I) (Aa) the production process, except for the production of real property; and
             469          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             470          (II) (Aa) research and development; and
             471          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             472          (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             473      Utah Administrative Rulemaking Act, the commission:
             474          (i) shall by rule define the term "establishment"; and
             475          (ii) may by rule define what constitutes:
             476          (A) processing an item sold as tangible personal property;
             477          (B) the production process, except for the production of real property; or
             478          (C) research and development; and
             479          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             480      commission shall:
             481          (i) review the exemptions described in this Subsection (14) and make
             482      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             483      exemptions should be continued, modified, or repealed; and
             484          (ii) include in its report:
             485          (A) an estimate of the cost of the exemptions;
             486          (B) the purpose and effectiveness of the exemptions; and
             487          (C) the benefits of the exemptions to the state;
             488          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             489          (i) tooling;
             490          (ii) special tooling;


             491          (iii) support equipment;
             492          (iv) special test equipment; or
             493          (v) parts used in the repairs or renovations of tooling or equipment described in
             494      Subsections (15)(a)(i) through (iv); and
             495          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             496          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             497      performance of any aerospace or electronics industry contract with the United States
             498      government or any subcontract under that contract; and
             499          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             500      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             501      by:
             502          (A) a government identification tag placed on the tooling, equipment, or parts; or
             503          (B) listing on a government-approved property record if placing a government
             504      identification tag on the tooling, equipment, or parts is impractical;
             505          (16) sales of newspapers or newspaper subscriptions;
             506          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             507      product transferred electronically traded in as full or part payment of the purchase price, except
             508      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             509      trade-ins are limited to other vehicles only, and the tax is based upon:
             510          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             511      vehicle being traded in; or
             512          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             513      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             514      commission; and
             515          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             516      following items of tangible personal property or products transferred electronically traded in as
             517      full or part payment of the purchase price:
             518          (i) money;
             519          (ii) electricity;
             520          (iii) water;
             521          (iv) gas; or


             522          (v) steam;
             523          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             524      or a product transferred electronically used or consumed primarily and directly in farming
             525      operations, regardless of whether the tangible personal property or product transferred
             526      electronically:
             527          (A) becomes part of real estate; or
             528          (B) is installed by a:
             529          (I) farmer;
             530          (II) contractor; or
             531          (III) subcontractor; or
             532          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             533      product transferred electronically if the tangible personal property or product transferred
             534      electronically is exempt under Subsection (18)(a)(i); and
             535          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             536      subject to the taxes imposed by this chapter:
             537          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             538      incidental to farming:
             539          (I) machinery;
             540          (II) equipment;
             541          (III) materials; or
             542          (IV) supplies; and
             543          (B) tangible personal property that is considered to be used in a manner that is
             544      incidental to farming includes:
             545          (I) hand tools; or
             546          (II) maintenance and janitorial equipment and supplies;
             547          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             548      transferred electronically if the tangible personal property or product transferred electronically
             549      is used in an activity other than farming; and
             550          (B) tangible personal property or a product transferred electronically that is considered
             551      to be used in an activity other than farming includes:
             552          (I) office equipment and supplies; or


             553          (II) equipment and supplies used in:
             554          (Aa) the sale or distribution of farm products;
             555          (Bb) research; or
             556          (Cc) transportation; or
             557          (iii) a vehicle required to be registered by the laws of this state during the period
             558      ending two years after the date of the vehicle's purchase;
             559          (19) sales of hay;
             560          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             561      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             562      garden, farm, or other agricultural produce is sold by:
             563          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             564      agricultural produce;
             565          (b) an employee of the producer described in Subsection (20)(a); or
             566          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             567          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             568      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             569          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             570      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             571      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             572      manufacturer, processor, wholesaler, or retailer;
             573          (23) a product stored in the state for resale;
             574          (24) (a) purchases of a product if:
             575          (i) the product is:
             576          (A) purchased outside of this state;
             577          (B) brought into this state:
             578          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             579          (II) by a nonresident person who is not living or working in this state at the time of the
             580      purchase;
             581          (C) used for the personal use or enjoyment of the nonresident person described in
             582      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             583          (D) not used in conducting business in this state; and


             584          (ii) for:
             585          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             586      the product for a purpose for which the product is designed occurs outside of this state;
             587          (B) a boat, the boat is registered outside of this state; or
             588          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             589      outside of this state;
             590          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             591          (i) a lease or rental of a product; or
             592          (ii) a sale of a vehicle exempt under Subsection (33); and
             593          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             594      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             595      following:
             596          (i) conducting business in this state if that phrase has the same meaning in this
             597      Subsection (24) as in Subsection (63);
             598          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             599      as in Subsection (63); or
             600          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             601      this Subsection (24) as in Subsection (63);
             602          (25) a product purchased for resale in this state, in the regular course of business, either
             603      in its original form or as an ingredient or component part of a manufactured or compounded
             604      product;
             605          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             606      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             607      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             608      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             609      Act;
             610          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             611      person for use in compounding a service taxable under the subsections;
             612          (28) purchases made in accordance with the special supplemental nutrition program for
             613      women, infants, and children established in 42 U.S.C. Sec. 1786;
             614          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,


             615      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             616      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             617      Manual of the federal Executive Office of the President, Office of Management and Budget;
             618          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             619      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             620          (a) not registered in this state; and
             621          (b) (i) not used in this state; or
             622          (ii) used in this state:
             623          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             624      time period that does not exceed the longer of:
             625          (I) 30 days in any calendar year; or
             626          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             627      the borders of this state; or
             628          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             629      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             630      state;
             631          (31) sales of aircraft manufactured in Utah;
             632          (32) amounts paid for the purchase of telecommunications service for purposes of
             633      providing telecommunications service;
             634          (33) sales, leases, or uses of the following:
             635          (a) a vehicle by an authorized carrier; or
             636          (b) tangible personal property that is installed on a vehicle:
             637          (i) sold or leased to or used by an authorized carrier; and
             638          (ii) before the vehicle is placed in service for the first time;
             639          (34) (a) 45% of the sales price of any new manufactured home; and
             640          (b) 100% of the sales price of any used manufactured home;
             641          (35) sales relating to schools and fundraising sales;
             642          (36) sales or rentals of durable medical equipment if:
             643          (a) a person presents a prescription for the durable medical equipment; and
             644          (b) the durable medical equipment is used for home use only;
             645          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in


             646      Section 72-11-102 ; and
             647          (b) the commission shall by rule determine the method for calculating sales exempt
             648      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             649          (38) sales to a ski resort of:
             650          (a) snowmaking equipment;
             651          (b) ski slope grooming equipment;
             652          (c) passenger ropeways as defined in Section 72-11-102 ; or
             653          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             654      described in Subsections (38)(a) through (c);
             655          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             656          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             657      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             658      59-12-102 ;
             659          (b) if a seller that sells or rents at the same business location the right to use or operate
             660      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             661      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             662      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             663      amusement, entertainment, or recreation for the assisted amusement devices; and
             664          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             665      Utah Administrative Rulemaking Act, the commission may make rules:
             666          (i) governing the circumstances under which sales are at the same business location;
             667      and
             668          (ii) establishing the procedures and requirements for a seller to separately account for
             669      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             670      assisted amusement devices;
             671          (41) (a) sales of photocopies by:
             672          (i) a governmental entity; or
             673          (ii) an entity within the state system of public education, including:
             674          (A) a school; or
             675          (B) the State Board of Education; or
             676          (b) sales of publications by a governmental entity;


             677          (42) amounts paid for admission to an athletic event at an institution of higher
             678      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             679      20 U.S.C. Sec. 1681 et seq.;
             680          (43) (a) sales made to or by:
             681          (i) an area agency on aging; or
             682          (ii) a senior citizen center owned by a county, city, or town; or
             683          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             684          (44) sales or leases of semiconductor fabricating, processing, research, or development
             685      materials regardless of whether the semiconductor fabricating, processing, research, or
             686      development materials:
             687          (a) actually come into contact with a semiconductor; or
             688          (b) ultimately become incorporated into real property;
             689          (45) an amount paid by or charged to a purchaser for accommodations and services
             690      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             691      59-12-104.2 ;
             692          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             693      sports event registration certificate in accordance with Section 41-3-306 for the event period
             694      specified on the temporary sports event registration certificate;
             695          (47) sales or uses of electricity, if the sales or uses are:
             696          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             697      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             698      source, as designated in the tariff by the Public Service Commission of Utah; and
             699          (b) for an amount of electricity that is:
             700          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             701      under the tariff described in Subsection (47)(a); and
             702          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             703      Subsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);
             704          (48) sales or rentals of mobility enhancing equipment if a person presents a
             705      prescription for the mobility enhancing equipment;
             706          (49) sales of water in a:
             707          (a) pipe;


             708          (b) conduit;
             709          (c) ditch; or
             710          (d) reservoir;
             711          (50) sales of currency or coinage that constitute legal tender of the United States or of a
             712      foreign nation;
             713          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             714          (i) does not constitute legal tender of any nation; and
             715          (ii) has a gold, silver, or platinum content of 80% or more; and
             716          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             717          (i) ingot;
             718          (ii) bar;
             719          (iii) medallion; or
             720          (iv) decorative coin;
             721          (52) amounts paid on a sale-leaseback transaction;
             722          (53) sales of a prosthetic device:
             723          (a) for use on or in a human; and
             724          (b) (i) for which a prescription is required; or
             725          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             726          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             727      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             728      or equipment is primarily used in the production or postproduction of the following media for
             729      commercial distribution:
             730          (i) a motion picture;
             731          (ii) a television program;
             732          (iii) a movie made for television;
             733          (iv) a music video;
             734          (v) a commercial;
             735          (vi) a documentary; or
             736          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             737      commission by administrative rule made in accordance with Subsection (54)(d); or
             738          (b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery or


             739      equipment by an establishment described in Subsection (54)(c) that is used for the production
             740      or postproduction of the following are subject to the taxes imposed by this chapter:
             741          (i) a live musical performance;
             742          (ii) a live news program; or
             743          (iii) a live sporting event;
             744          (c) the following establishments listed in the 1997 North American Industry
             745      Classification System of the federal Executive Office of the President, Office of Management
             746      and Budget, apply to Subsections (54)(a) and (b):
             747          (i) NAICS Code 512110; or
             748          (ii) NAICS Code 51219; and
             749          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             750      commission may by rule:
             751          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             752      or
             753          (ii) define:
             754          (A) "commercial distribution";
             755          (B) "live musical performance";
             756          (C) "live news program"; or
             757          (D) "live sporting event";
             758          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             759      or before June 30, 2019, of machinery or equipment that:
             760          (i) is leased or purchased for or by a facility that:
             761          (A) is a renewable energy production facility;
             762          (B) is located in the state; and
             763          (C) (I) becomes operational on or after July 1, 2004; or
             764          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             765      2004 as a result of the use of the machinery or equipment;
             766          (ii) has an economic life of five or more years; and
             767          (iii) is used to make the facility or the increase in capacity of the facility described in
             768      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             769      transmission grid including:


             770          (A) a wind turbine;
             771          (B) generating equipment;
             772          (C) a control and monitoring system;
             773          (D) a power line;
             774          (E) substation equipment;
             775          (F) lighting;
             776          (G) fencing;
             777          (H) pipes; or
             778          (I) other equipment used for locating a power line or pole; and
             779          (b) this Subsection (55) does not apply to:
             780          (i) machinery or equipment used in construction of:
             781          (A) a new renewable energy production facility; or
             782          (B) the increase in the capacity of a renewable energy production facility;
             783          (ii) contracted services required for construction and routine maintenance activities;
             784      and
             785          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             786      of the facility described in Subsection (55)(a)(i)(C)(II), machinery or equipment used or
             787      acquired after:
             788          (A) the renewable energy production facility described in Subsection (55)(a)(i) is
             789      operational as described in Subsection (55)(a)(iii); or
             790          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             791      in Subsection (55)(a)(iii);
             792          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             793      or before June 30, 2019, of machinery or equipment that:
             794          (i) is leased or purchased for or by a facility that:
             795          (A) is a waste energy production facility;
             796          (B) is located in the state; and
             797          (C) (I) becomes operational on or after July 1, 2004; or
             798          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             799      2004 as a result of the use of the machinery or equipment;
             800          (ii) has an economic life of five or more years; and


             801          (iii) is used to make the facility or the increase in capacity of the facility described in
             802      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             803      transmission grid including:
             804          (A) generating equipment;
             805          (B) a control and monitoring system;
             806          (C) a power line;
             807          (D) substation equipment;
             808          (E) lighting;
             809          (F) fencing;
             810          (G) pipes; or
             811          (H) other equipment used for locating a power line or pole; and
             812          (b) this Subsection (56) does not apply to:
             813          (i) machinery or equipment used in construction of:
             814          (A) a new waste energy facility; or
             815          (B) the increase in the capacity of a waste energy facility;
             816          (ii) contracted services required for construction and routine maintenance activities;
             817      and
             818          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             819      described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or acquired after:
             820          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             821      described in Subsection (56)(a)(iii); or
             822          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             823      in Subsection (56)(a)(iii);
             824          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             825      or before June 30, 2019, of machinery or equipment that:
             826          (i) is leased or purchased for or by a facility that:
             827          (A) is located in the state;
             828          (B) produces fuel from biomass energy including:
             829          (I) methanol; or
             830          (II) ethanol; and
             831          (C) (I) becomes operational on or after July 1, 2004; or


             832          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             833      a result of the installation of the machinery or equipment;
             834          (ii) has an economic life of five or more years; and
             835          (iii) is installed on the facility described in Subsection (57)(a)(i);
             836          (b) this Subsection (57) does not apply to:
             837          (i) machinery or equipment used in construction of:
             838          (A) a new facility described in Subsection (57)(a)(i); or
             839          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             840          (ii) contracted services required for construction and routine maintenance activities;
             841      and
             842          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             843      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             844          (A) the facility described in Subsection (57)(a)(i) is operational; or
             845          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             846          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             847      product transferred electronically to a person within this state if that tangible personal property
             848      or product transferred electronically is subsequently shipped outside the state and incorporated
             849      pursuant to contract into and becomes a part of real property located outside of this state;
             850          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             851      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             852      gross receipts, or other similar transaction excise tax on the transaction against which the other
             853      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             854          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             855      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             856      refund:
             857          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             858          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             859      which the sale is made;
             860          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             861      sale prior to filing for the refund;
             862          (iv) for sales and use taxes paid under this chapter on the sale;


             863          (v) in accordance with Section 59-1-1410 ; and
             864          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             865      the person files for the refund on or before June 30, 2011;
             866          (59) purchases:
             867          (a) of one or more of the following items in printed or electronic format:
             868          (i) a list containing information that includes one or more:
             869          (A) names; or
             870          (B) addresses; or
             871          (ii) a database containing information that includes one or more:
             872          (A) names; or
             873          (B) addresses; and
             874          (b) used to send direct mail;
             875          (60) redemptions or repurchases of a product by a person if that product was:
             876          (a) delivered to a pawnbroker as part of a pawn transaction; and
             877          (b) redeemed or repurchased within the time period established in a written agreement
             878      between the person and the pawnbroker for redeeming or repurchasing the product;
             879          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             880          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             881      and
             882          (ii) has a useful economic life of one or more years; and
             883          (b) the following apply to Subsection (61)(a):
             884          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             885          (ii) telecommunications equipment, machinery, or software required for 911 service;
             886          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             887          (iv) telecommunications switching or routing equipment, machinery, or software; or
             888          (v) telecommunications transmission equipment, machinery, or software;
             889          (62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             890      personal property or a product transferred electronically that are used in the research and
             891      development of coal-to-liquids, oil shale, or tar sands technology; and
             892          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             893      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes


             894      purchases of tangible personal property or a product transferred electronically that are used in
             895      the research and development of coal-to-liquids, oil shale, and tar sands technology;
             896          (63) (a) purchases of tangible personal property or a product transferred electronically
             897      if:
             898          (i) the tangible personal property or product transferred electronically is:
             899          (A) purchased outside of this state;
             900          (B) brought into this state at any time after the purchase described in Subsection
             901      (63)(a)(i)(A); and
             902          (C) used in conducting business in this state; and
             903          (ii) for:
             904          (A) tangible personal property or a product transferred electronically other than the
             905      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             906      for a purpose for which the property is designed occurs outside of this state; or
             907          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             908      outside of this state;
             909          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             910          (i) a lease or rental of tangible personal property or a product transferred electronically;
             911      or
             912          (ii) a sale of a vehicle exempt under Subsection (33); and
             913          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             914      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             915      following:
             916          (i) conducting business in this state if that phrase has the same meaning in this
             917      Subsection (63) as in Subsection (24);
             918          (ii) the first use of tangible personal property or a product transferred electronically if
             919      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             920          (iii) a purpose for which tangible personal property or a product transferred
             921      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             922      Subsection (24);
             923          (64) sales of disposable home medical equipment or supplies if:
             924          (a) a person presents a prescription for the disposable home medical equipment or


             925      supplies;
             926          (b) the disposable home medical equipment or supplies are used exclusively by the
             927      person to whom the prescription described in Subsection (64)(a) is issued; and
             928          (c) the disposable home medical equipment and supplies are listed as eligible for
             929      payment under:
             930          (i) Title XVIII, federal Social Security Act; or
             931          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             932          (65) sales:
             933          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             934      District Act; or
             935          (b) of tangible personal property to a subcontractor of a public transit district, if the
             936      tangible personal property is:
             937          (i) clearly identified; and
             938          (ii) installed or converted to real property owned by the public transit district;
             939          (66) sales of construction materials:
             940          (a) purchased on or after July 1, 2010;
             941          (b) purchased by, on behalf of, or for the benefit of an international airport:
             942          (i) located within a county of the first class; and
             943          (ii) that has a United States customs office on its premises; and
             944          (c) if the construction materials are:
             945          (i) clearly identified;
             946          (ii) segregated; and
             947          (iii) installed or converted to real property:
             948          (A) owned or operated by the international airport described in Subsection (66)(b); and
             949          (B) located at the international airport described in Subsection (66)(b);
             950          (67) sales of construction materials:
             951          (a) purchased on or after July 1, 2008;
             952          (b) purchased by, on behalf of, or for the benefit of a new airport:
             953          (i) located within a county of the second class; and
             954          (ii) that is owned or operated by a city in which an airline as defined in Section
             955      59-2-102 is headquartered; and


             956          (c) if the construction materials are:
             957          (i) clearly identified;
             958          (ii) segregated; and
             959          (iii) installed or converted to real property:
             960          (A) owned or operated by the new airport described in Subsection (67)(b);
             961          (B) located at the new airport described in Subsection (67)(b); and
             962          (C) as part of the construction of the new airport described in Subsection (67)(b); [and]
             963          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive
             964      engine[.]; and
             965          (69) a transaction on Cedar Band reservation land if the exemption from the tax
             966      imposed under this chapter is in effect in accordance with Chapter 1, Part 15, Exemptions
             967      Related to the Cedar Band of the Paiute Tribe Act.
             968          Section 11. Section 59-13-201 is amended to read:
             969           59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
             970      Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax
             971      in limited circumstances.
             972          (1) (a) Subject to the provisions of this section, a tax is imposed at the rate of 24-1/2
             973      cents per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
             974          (b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
             975      this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),
             976      rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
             977      Section 59-13-102 and are sold, used, or received for sale or use in this state.
             978          (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
             979      state or sold at refineries in the state on or after the effective date of the rate change.
             980          (3) (a) No motor fuel tax is imposed upon:
             981          (i) motor fuel that is brought into and sold in this state in original packages as purely
             982      interstate commerce sales;
             983          (ii) motor fuel that is exported from this state if proof of actual exportation on forms
             984      prescribed by the commission is made within 180 days after exportation;
             985          (iii) motor fuel or components of motor fuel that is sold and used in this state and
             986      distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in


             987      this state; or
             988          (iv) motor fuel that is sold to the United States government, this state, or the political
             989      subdivisions of this state.
             990          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             991      commission shall make rules governing the procedures for administering the tax exemption
             992      provided under Subsection (3)(a)(iv).
             993          (4) The commission may either collect no tax on motor fuel exported from the state or,
             994      upon application, refund the tax paid.
             995          (5) (a) All revenue received by the commission under this part shall be deposited daily
             996      with the state treasurer and credited to the Transportation Fund.
             997          (b) An appropriation from the Transportation Fund shall be made to the commission to
             998      cover expenses incurred in the administration and enforcement of this part and the collection of
             999      the motor fuel tax.
             1000          (6) (a) The commission shall determine what amount of motor fuel tax revenue is
             1001      received from the sale or use of motor fuel used in motorboats registered under the provisions
             1002      of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
             1003      the General Fund of the state.
             1004          (b) The funds from this account shall be used for the construction, improvement,
             1005      operation, and maintenance of state-owned boating facilities and for the payment of the costs
             1006      and expenses of the Division of Parks and Recreation in administering and enforcing the State
             1007      Boating Act.
             1008          (7) (a) The United States government or any of its instrumentalities, this state, or a
             1009      political subdivision of this state that has purchased motor fuel from a licensed distributor or
             1010      from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
             1011      section is entitled to a refund of the tax and may file with the commission for a quarterly
             1012      refund.
             1013          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1014      commission shall make rules governing the application and refund provided for in Subsection
             1015      (7)(a).
             1016          (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
             1017      the General Fund an amount equal to the lesser of the following:


             1018          (i) .5% of the motor fuel tax revenues collected under this section; or
             1019          (ii) $1,050,000.
             1020          (b) This amount shall be used as provided in Section 41-22-19 .
             1021          (c) This Subsection (8) sunsets on July 1, 2010.
             1022          (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
             1023      is sold, used, or received for sale or use in this state is reduced to the extent provided in
             1024      Subsection (9)(b) if:
             1025          (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
             1026      fuel is paid to the Navajo Nation;
             1027          (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
             1028      not the person required to pay the tax is an enrolled member of the Navajo Nation; and
             1029          (iii) the commission and the Navajo Nation execute and maintain an agreement as
             1030      provided in this Subsection (9) for the administration of the reduction of tax.
             1031          (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
             1032      section:
             1033          (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
             1034      difference is greater than $0; and
             1035          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
             1036      if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
             1037          (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
             1038          (A) the amount of tax imposed on the motor fuel by this section; less
             1039          (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
             1040          (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
             1041      a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
             1042      motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
             1043      Navajo Nation.
             1044          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1045      commission shall make rules governing the procedures for administering the reduction of tax
             1046      provided under this Subsection (9).
             1047          (e) The agreement required under Subsection (9)(a):
             1048          (i) may not:


             1049          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             1050          (B) provide a reduction of taxes greater than or different from the reduction described
             1051      in this Subsection (9); or
             1052          (C) affect the power of the state to establish rates of taxation;
             1053          (ii) shall:
             1054          (A) be in writing;
             1055          (B) be signed by:
             1056          (I) the chair of the commission or the chair's designee; and
             1057          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
             1058          (C) be conditioned on obtaining any approval required by federal law;
             1059          (D) state the effective date of the agreement; and
             1060          (E) state any accommodation the Navajo Nation makes related to the construction and
             1061      maintenance of state highways and other infrastructure within the Utah portion of the Navajo
             1062      Nation; and
             1063          (iii) may:
             1064          (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
             1065      Navajo Nation information that is:
             1066          (I) contained in a document filed with the commission; and
             1067          (II) related to the tax imposed under this section;
             1068          (B) provide for maintaining records by the commission or the Navajo Nation; or
             1069          (C) provide for inspections or audits of distributors, carriers, or retailers located or
             1070      doing business within the Utah portion of the Navajo Nation.
             1071          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
             1072      imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
             1073      result of the change in the tax rate is not effective until the first day of the calendar quarter after
             1074      a 60-day period beginning on the date the commission receives notice:
             1075          (A) from the Navajo Nation; and
             1076          (B) meeting the requirements of Subsection (9)(f)(ii).
             1077          (ii) The notice described in Subsection (9)(f)(i) shall state:
             1078          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             1079      motor fuel;


             1080          (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
             1081      and
             1082          (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
             1083          (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
             1084      permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
             1085      30-day period beginning on the day the agreement terminates.
             1086          (h) If there is a conflict between this Subsection (9) and the agreement required by
             1087      Subsection (9)(a), this Subsection (9) governs.
             1088          (10) A tax imposed under this section on motor fuel that is sold, used, or received for
             1089      sale or use in this state is subject to an exemption on Cedar Band reservation land if the
             1090      exemption from a tax imposed under this section is in effect in accordance with Chapter 1, Part
             1091      15, Exemptions Related to the Cedar Band of the Paiute Tribe Act.
             1092          Section 12. Section 59-13-301 is amended to read:
             1093           59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
             1094      and credited to Transportation Fund -- Reduction of tax in limited circumstances.
             1095          (1) (a) Except as provided in Subsections (2), (3), (11), [and] (12), and (13) and
             1096      Section 59-13-304 , a tax is imposed at the same rate imposed under Subsection
             1097      59-13-201 (1)(a) on the:
             1098          (i) removal of undyed diesel fuel from any refinery;
             1099          (ii) removal of undyed diesel fuel from any terminal;
             1100          (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
             1101      warehousing;
             1102          (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
             1103      this part unless the tax has been collected under this section;
             1104          (v) any untaxed special fuel blended with undyed diesel fuel; or
             1105          (vi) use of untaxed special fuel other than propane or electricity.
             1106          (b) The tax imposed under this section shall only be imposed once upon any special
             1107      fuel.
             1108          (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
             1109          (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
             1110      the public highways of the state, but this exemption applies only in those cases where the


             1111      purchasers or the users of special fuel establish to the satisfaction of the commission that the
             1112      special fuel was used for purposes other than to operate a motor vehicle upon the public
             1113      highways of the state; or
             1114          (ii) is sold to this state or any of its political subdivisions.
             1115          (b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that:
             1116          (i) is sold to the United States government or any of its instrumentalities or to this state
             1117      or any of its political subdivisions;
             1118          (ii) is exported from this state if proof of actual exportation on forms prescribed by the
             1119      commission is made within 180 days after exportation;
             1120          (iii) is used in a vehicle off-highway;
             1121          (iv) is used to operate a power take-off unit of a vehicle;
             1122          (v) is used for off-highway agricultural uses;
             1123          (vi) is used in a separately fueled engine on a vehicle that does not propel the vehicle
             1124      upon the highways of the state; or
             1125          (vii) is used in machinery and equipment not registered and not required to be
             1126      registered for highway use.
             1127          (3) No tax is imposed or collected on special fuel if it is:
             1128          (a) (i) purchased for business use in machinery and equipment not registered and not
             1129      required to be registered for highway use; and
             1130          (ii) used pursuant to the conditions of a state implementation plan approved under Title
             1131      19, Chapter 2, Air Conservation Act; or
             1132          (b) propane or electricity.
             1133          (4) Upon request of a buyer meeting the requirements under Subsection (3), the
             1134      Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
             1135          (5) The special fuel tax shall be paid by the supplier.
             1136          (6) (a) The special fuel tax shall be paid by every user who is required by Sections
             1137      59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
             1138          (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
             1139      which are delivered into vehicles and for which special fuel tax liability is reported.
             1140          (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
             1141      commission from taxes and license fees under this part shall be deposited daily with the state


             1142      treasurer and credited to the Transportation Fund.
             1143          (b) An appropriation from the Transportation Fund shall be made to the commission to
             1144      cover expenses incurred in the administration and enforcement of this part and the collection of
             1145      the special fuel tax.
             1146          (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
             1147      may be used by the commission as a dedicated credit to cover the costs of electronic
             1148      credentialing as provided in Section 41-1a-303 .
             1149          (8) The commission may either collect no tax on special fuel exported from the state
             1150      or, upon application, refund the tax paid.
             1151          (9) (a) The United States government or any of its instrumentalities, this state, or a
             1152      political subdivision of this state that has purchased special fuel from a supplier or from a retail
             1153      dealer of special fuel and has paid the tax on the special fuel as provided in this section is
             1154      entitled to a refund of the tax and may file with the commission for a quarterly refund in a
             1155      manner prescribed by the commission.
             1156          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1157      commission shall make rules governing the application and refund provided for in Subsection
             1158      (9)(a).
             1159          (10) (a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
             1160      under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid
             1161      as provided in Subsection (9) and this Subsection (10).
             1162          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1163      commission shall make rules governing the application and refund for off-highway and
             1164      nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
             1165          (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
             1166      uses shall be made in accordance with the tax return procedures under Section 59-13-202 .
             1167          (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
             1168      reduced to the extent provided in Subsection (11)(b) if:
             1169          (i) the Navajo Nation imposes a tax on the special fuel;
             1170          (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
             1171      person required to pay the tax is an enrolled member of the Navajo Nation; and
             1172          (iii) the commission and the Navajo Nation execute and maintain an agreement as


             1173      provided in this Subsection (11) for the administration of the reduction of tax.
             1174          (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
             1175      section:
             1176          (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
             1177      difference is greater than $0; and
             1178          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
             1179      if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
             1180          (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
             1181      between:
             1182          (A) the amount of tax imposed on the special fuel by this section; less
             1183          (B) the tax imposed and collected by the Navajo Nation on the special fuel.
             1184          (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
             1185      the special fuel does not include any interest or penalties a taxpayer may be required to pay to
             1186      the Navajo Nation.
             1187          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1188      commission shall make rules governing the procedures for administering the reduction of tax
             1189      provided under this Subsection (11).
             1190          (e) The agreement required under Subsection (11)(a):
             1191          (i) may not:
             1192          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             1193          (B) provide a reduction of taxes greater than or different from the reduction described
             1194      in this Subsection (11); or
             1195          (C) affect the power of the state to establish rates of taxation;
             1196          (ii) shall:
             1197          (A) be in writing;
             1198          (B) be signed by:
             1199          (I) the chair of the commission or the chair's designee; and
             1200          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
             1201          (C) be conditioned on obtaining any approval required by federal law;
             1202          (D) state the effective date of the agreement; and
             1203          (E) state any accommodation the Navajo Nation makes related to the construction and


             1204      maintenance of state highways and other infrastructure within the Utah portion of the Navajo
             1205      Nation; and
             1206          (iii) may:
             1207          (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
             1208      Navajo Nation information that is:
             1209          (I) contained in a document filed with the commission; and
             1210          (II) related to the tax imposed under this section;
             1211          (B) provide for maintaining records by the commission or the Navajo Nation; or
             1212          (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
             1213      located or doing business within the Utah portion of the Navajo Nation.
             1214          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
             1215      imposed on special fuel, any change in the amount of the reduction of taxes under this
             1216      Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
             1217      calendar quarter after a 60-day period beginning on the date the commission receives notice:
             1218          (A) from the Navajo Nation; and
             1219          (B) meeting the requirements of Subsection (11)(f)(ii).
             1220          (ii) The notice described in Subsection (11)(f)(i) shall state:
             1221          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             1222      special fuel;
             1223          (B) the effective date of the rate change of the tax described in Subsection
             1224      (11)(f)(ii)(A); and
             1225          (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
             1226          (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
             1227      permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
             1228      30-day period beginning on the day the agreement terminates.
             1229          (h) If there is a conflict between this Subsection (11) and the agreement required by
             1230      Subsection (11)(a), this Subsection (11) governs.
             1231          (12) Beginning on January 1, 2009, a tax imposed under this section on compressed
             1232      natural gas is imposed at a reduced rate of 8-1/2 cents per gasoline gallon equivalent to be
             1233      increased or decreased proportionately with any increase or decrease in the rate in Subsection
             1234      59-13-201 (1)(a).


             1235          (13) A tax imposed under this section is subject to an exemption on Cedar Band
             1236      reservation land if the exemption from a tax imposed under this section is in effect in
             1237      accordance with Chapter 1, Part 15, Exemptions Related to the Cedar Band of the Paiute Tribe
             1238      Act.
             1239          Section 13. Section 59-14-204.5 is amended to read:
             1240           59-14-204.5. Application of excise tax on tribal lands.
             1241          (1) (a) Cigarettes sold to or received by members of a federally recognized Indian tribe
             1242      that are purchased or received on the tribal lands are not subject to the tax imposed by Section
             1243      59-14-204 .
             1244          (b) Cigarettes exempt from tax under 26 U.S.C. Sec. 5701 and distributed in
             1245      accordance with federal regulations are not subject to the tax imposed by Section 59-14-204 .
             1246          (2) (a) (i) The tax applicable to cigarettes sold to or received by nontribal members on
             1247      tribal lands is equal to the state tax imposed by Section 59-14-204 , minus any tribal tax actually
             1248      paid.
             1249          (ii) For purposes of this section, nontribal members includes any person who is not a
             1250      member of the Indian tribe that is selling the cigarettes.
             1251          (b) If the application of the tax offset for tribal taxes permitted in Subsection (2)(a)
             1252      results in a negative balance, the taxes owed to the state are zero.
             1253          (c) (i) Cigarettes taxed pursuant to this Subsection (2) shall bear a tax stamp as
             1254      required by Section 59-14-205 in an amount equal to the tax imposed by Section 59-14-204 .
             1255          (ii) The commission shall at least semi-annually rebate to an Indian tribal entity that is
             1256      in compliance with this chapter the lesser of:
             1257          (A) an amount equal to the tribal tax imposed on sales under this Subsection (2); or
             1258          (B) the face value of the tax stamps affixed to cigarettes sold under this Subsection (2).
             1259          (3) To the extent not addressed by other provisions of this section, a tax imposed under
             1260      this chapter is subject to an exemption on Cedar Band reservation land if the exemption from a
             1261      tax imposed under this section is in effect in accordance with Chapter 1, Part 15, Exemptions
             1262      Related to the Cedar Band of the Paiute Tribe Act.


[Bill Documents][Bills Directory]