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First Substitute H.B. 82

Representative Todd E. Kiser proposes the following substitute bill:


             1     
SALES AND USE TAXES ON CERTAIN LODGING

             2     
RELATED PURCHASES

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Todd E. Kiser

             6     
Senate Sponsor: Howard A. Stephenson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill addresses sales and use taxes on certain lodging related purchases.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    provides procedures for claiming a sales and use tax exemption for certain lodging
             15      related purchases;
             16          .    grants rulemaking authority to the State Tax Commission;
             17          .    requires the State Tax Commission to collect the transient room taxes; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2011.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          59-12-104, as last amended by Laws of Utah 2010, Chapters 88, 209, and 364


             26          59-12-302, as last amended by Laws of Utah 2008, Chapter 384
             27          59-12-354, as last amended by Laws of Utah 2008, Chapter 384
             28      ENACTS:
             29          59-12-104.6, Utah Code Annotated 1953
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 59-12-104 is amended to read:
             33           59-12-104. Exemptions.
             34          The following sales and uses are exempt from the taxes imposed by this chapter:
             35          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             36      under Chapter 13, Motor and Special Fuel Tax Act;
             37          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             38      subdivisions; however, this exemption does not apply to sales of:
             39          (a) construction materials except:
             40          (i) construction materials purchased by or on behalf of institutions of the public
             41      education system as defined in Utah Constitution Article X, Section 2, provided the
             42      construction materials are clearly identified and segregated and installed or converted to real
             43      property which is owned by institutions of the public education system; and
             44          (ii) construction materials purchased by the state, its institutions, or its political
             45      subdivisions which are installed or converted to real property by employees of the state, its
             46      institutions, or its political subdivisions; or
             47          (b) tangible personal property in connection with the construction, operation,
             48      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             49      providing additional project capacity, as defined in Section 11-13-103 ;
             50          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             51          (i) the proceeds of each sale do not exceed $1; and
             52          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             53      the cost of the item described in Subsection (3)(b) as goods consumed; and
             54          (b) Subsection (3)(a) applies to:
             55          (i) food and food ingredients; or
             56          (ii) prepared food;


             57          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             58          (i) alcoholic beverages;
             59          (ii) food and food ingredients; or
             60          (iii) prepared food;
             61          (b) sales of tangible personal property or a product transferred electronically:
             62          (i) to a passenger;
             63          (ii) by a commercial airline carrier; and
             64          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             65          (c) services related to Subsection (4)(a) or (b);
             66          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             67      and equipment:
             68          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             69      North American Industry Classification System of the federal Executive Office of the
             70      President, Office of Management and Budget; and
             71          (II) for:
             72          (Aa) installation in an aircraft, including services relating to the installation of parts or
             73      equipment in the aircraft;
             74          (Bb) renovation of an aircraft; or
             75          (Cc) repair of an aircraft; or
             76          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             77      commerce; or
             78          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             79      aircraft operated by a common carrier in interstate or foreign commerce; and
             80          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             81      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             82      refund:
             83          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             84          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             85          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             86      the sale prior to filing for the refund;
             87          (iv) for sales and use taxes paid under this chapter on the sale;


             88          (v) in accordance with Section 59-1-1410 ; and
             89          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             90      the person files for the refund on or before September 30, 2011;
             91          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             92      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             93      exhibitor, distributor, or commercial television or radio broadcaster;
             94          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             95      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             96      washing of tangible personal property;
             97          (b) if a seller that sells at the same business location assisted cleaning or washing of
             98      tangible personal property and cleaning or washing of tangible personal property that is not
             99      assisted cleaning or washing of tangible personal property, the exemption described in
             100      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             101      or washing of the tangible personal property; and
             102          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             103      Utah Administrative Rulemaking Act, the commission may make rules:
             104          (i) governing the circumstances under which sales are at the same business location;
             105      and
             106          (ii) establishing the procedures and requirements for a seller to separately account for
             107      sales of assisted cleaning or washing of tangible personal property;
             108          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             109      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             110      fulfilled;
             111          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             112      this state if the vehicle is:
             113          (a) not registered in this state; and
             114          (b) (i) not used in this state; or
             115          (ii) used in this state:
             116          (A) if the vehicle is not used to conduct business, for a time period that does not
             117      exceed the longer of:
             118          (I) 30 days in any calendar year; or


             119          (II) the time period necessary to transport the vehicle to the borders of this state; or
             120          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             121      the vehicle to the borders of this state;
             122          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             123          (i) the item is intended for human use; and
             124          (ii) (A) a prescription was issued for the item; or
             125          (B) the item was purchased by a hospital or other medical facility; and
             126          (b) (i) Subsection (10)(a) applies to:
             127          (A) a drug;
             128          (B) a syringe; or
             129          (C) a stoma supply; and
             130          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             131      commission may by rule define the terms:
             132          (A) "syringe"; or
             133          (B) "stoma supply";
             134          (11) sales or use of property, materials, or services used in the construction of or
             135      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             136          (12) (a) sales of an item described in Subsection (12)(c) served by:
             137          (i) the following if the item described in Subsection (12)(c) is not available to the
             138      general public:
             139          (A) a church; or
             140          (B) a charitable institution;
             141          (ii) an institution of higher education if:
             142          (A) the item described in Subsection (12)(c) is not available to the general public; or
             143          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             144      offered by the institution of higher education; or
             145          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             146          (i) a medical facility; or
             147          (ii) a nursing facility; and
             148          (c) Subsections (12)(a) and (b) apply to:
             149          (i) food and food ingredients;


             150          (ii) prepared food; or
             151          (iii) alcoholic beverages;
             152          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             153      or a product transferred electronically by a person:
             154          (i) regardless of the number of transactions involving the sale of that tangible personal
             155      property or product transferred electronically by that person; and
             156          (ii) not regularly engaged in the business of selling that type of tangible personal
             157      property or product transferred electronically;
             158          (b) this Subsection (13) does not apply if:
             159          (i) the sale is one of a series of sales of a character to indicate that the person is
             160      regularly engaged in the business of selling that type of tangible personal property or product
             161      transferred electronically;
             162          (ii) the person holds that person out as regularly engaged in the business of selling that
             163      type of tangible personal property or product transferred electronically;
             164          (iii) the person sells an item of tangible personal property or product transferred
             165      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             166          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             167      this state in which case the tax is based upon:
             168          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             169      sold; or
             170          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             171      value of the vehicle or vessel being sold at the time of the sale as determined by the
             172      commission; and
             173          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             174      commission shall make rules establishing the circumstances under which:
             175          (i) a person is regularly engaged in the business of selling a type of tangible personal
             176      property or product transferred electronically;
             177          (ii) a sale of tangible personal property or a product transferred electronically is one of
             178      a series of sales of a character to indicate that a person is regularly engaged in the business of
             179      selling that type of tangible personal property or product transferred electronically; or
             180          (iii) a person holds that person out as regularly engaged in the business of selling a type


             181      of tangible personal property or product transferred electronically;
             182          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             183      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             184      facility, of the following:
             185          (i) machinery and equipment that:
             186          (A) are used:
             187          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             188      recycler described in Subsection 59-12-102 (54)(b):
             189          (Aa) in the manufacturing process;
             190          (Bb) to manufacture an item sold as tangible personal property; and
             191          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             192      (14)(a)(i)(A)(I) in the state; or
             193          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             194      59-12-102 (54)(b):
             195          (Aa) to process an item sold as tangible personal property; and
             196          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             197      (14)(a)(i)(A)(II) in the state; and
             198          (B) have an economic life of three or more years; and
             199          (ii) normal operating repair or replacement parts that:
             200          (A) have an economic life of three or more years; and
             201          (B) are used:
             202          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             203      recycler described in Subsection 59-12-102 (54)(b):
             204          (Aa) in the manufacturing process; and
             205          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             206      state; or
             207          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             208      59-12-102 (54)(b):
             209          (Aa) to process an item sold as tangible personal property; and
             210          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             211      state;


             212          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             213      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             214      of the following:
             215          (i) machinery and equipment that:
             216          (A) are used:
             217          (I) in the manufacturing process;
             218          (II) to manufacture an item sold as tangible personal property; and
             219          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             220      (14)(b) in the state; and
             221          (B) have an economic life of three or more years; and
             222          (ii) normal operating repair or replacement parts that:
             223          (A) are used:
             224          (I) in the manufacturing process; and
             225          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             226          (B) have an economic life of three or more years;
             227          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             228      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             229      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             230      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             231      of the 2002 North American Industry Classification System of the federal Executive Office of
             232      the President, Office of Management and Budget, of the following:
             233          (i) machinery and equipment that:
             234          (A) are used:
             235          (I) (Aa) in the production process, other than the production of real property; or
             236          (Bb) in research and development; and
             237          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             238      in the state; and
             239          (B) have an economic life of three or more years; and
             240          (ii) normal operating repair or replacement parts that:
             241          (A) have an economic life of three or more years; and
             242          (B) are used in:


             243          (I) (Aa) the production process, except for the production of real property; and
             244          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             245          (II) (Aa) research and development; and
             246          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             247          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             248      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             249      Search Portals, of the 2002 North American Industry Classification System of the federal
             250      Executive Office of the President, Office of Management and Budget, of the following:
             251          (A) machinery and equipment that:
             252          (I) are used in the operation of the web search portal;
             253          (II) have an economic life of three or more years; and
             254          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             255      in the state; and
             256          (B) normal operating repair or replacement parts that:
             257          (I) are used in the operation of the web search portal;
             258          (II) have an economic life of three or more years; and
             259          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             260      in the state; or
             261          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
             262      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
             263      American Industry Classification System of the federal Executive Office of the President,
             264      Office of Management and Budget, of the following:
             265          (A) machinery and equipment that:
             266          (I) are used in the operation of the web search portal; and
             267          (II) have an economic life of three or more years; and
             268          (B) normal operating repair or replacement parts that:
             269          (I) are used in the operation of the web search portal; and
             270          (II) have an economic life of three or more years;
             271          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             272      Utah Administrative Rulemaking Act, the commission:
             273          (i) shall by rule define the term "establishment"; and


             274          (ii) may by rule define what constitutes:
             275          (A) processing an item sold as tangible personal property;
             276          (B) the production process, except for the production of real property;
             277          (C) research and development; or
             278          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             279          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             280      commission shall:
             281          (i) review the exemptions described in this Subsection (14) and make
             282      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             283      exemptions should be continued, modified, or repealed; and
             284          (ii) include in its report:
             285          (A) an estimate of the cost of the exemptions;
             286          (B) the purpose and effectiveness of the exemptions; and
             287          (C) the benefits of the exemptions to the state;
             288          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             289          (i) tooling;
             290          (ii) special tooling;
             291          (iii) support equipment;
             292          (iv) special test equipment; or
             293          (v) parts used in the repairs or renovations of tooling or equipment described in
             294      Subsections (15)(a)(i) through (iv); and
             295          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             296          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             297      performance of any aerospace or electronics industry contract with the United States
             298      government or any subcontract under that contract; and
             299          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             300      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             301      by:
             302          (A) a government identification tag placed on the tooling, equipment, or parts; or
             303          (B) listing on a government-approved property record if placing a government
             304      identification tag on the tooling, equipment, or parts is impractical;


             305          (16) sales of newspapers or newspaper subscriptions;
             306          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             307      product transferred electronically traded in as full or part payment of the purchase price, except
             308      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             309      trade-ins are limited to other vehicles only, and the tax is based upon:
             310          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             311      vehicle being traded in; or
             312          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             313      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             314      commission; and
             315          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             316      following items of tangible personal property or products transferred electronically traded in as
             317      full or part payment of the purchase price:
             318          (i) money;
             319          (ii) electricity;
             320          (iii) water;
             321          (iv) gas; or
             322          (v) steam;
             323          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             324      or a product transferred electronically used or consumed primarily and directly in farming
             325      operations, regardless of whether the tangible personal property or product transferred
             326      electronically:
             327          (A) becomes part of real estate; or
             328          (B) is installed by a:
             329          (I) farmer;
             330          (II) contractor; or
             331          (III) subcontractor; or
             332          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             333      product transferred electronically if the tangible personal property or product transferred
             334      electronically is exempt under Subsection (18)(a)(i); and
             335          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are


             336      subject to the taxes imposed by this chapter:
             337          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             338      incidental to farming:
             339          (I) machinery;
             340          (II) equipment;
             341          (III) materials; or
             342          (IV) supplies; and
             343          (B) tangible personal property that is considered to be used in a manner that is
             344      incidental to farming includes:
             345          (I) hand tools; or
             346          (II) maintenance and janitorial equipment and supplies;
             347          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             348      transferred electronically if the tangible personal property or product transferred electronically
             349      is used in an activity other than farming; and
             350          (B) tangible personal property or a product transferred electronically that is considered
             351      to be used in an activity other than farming includes:
             352          (I) office equipment and supplies; or
             353          (II) equipment and supplies used in:
             354          (Aa) the sale or distribution of farm products;
             355          (Bb) research; or
             356          (Cc) transportation; or
             357          (iii) a vehicle required to be registered by the laws of this state during the period
             358      ending two years after the date of the vehicle's purchase;
             359          (19) sales of hay;
             360          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             361      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             362      garden, farm, or other agricultural produce is sold by:
             363          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             364      agricultural produce;
             365          (b) an employee of the producer described in Subsection (20)(a); or
             366          (c) a member of the immediate family of the producer described in Subsection (20)(a);


             367          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             368      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             369          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             370      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             371      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             372      manufacturer, processor, wholesaler, or retailer;
             373          (23) a product stored in the state for resale;
             374          (24) (a) purchases of a product if:
             375          (i) the product is:
             376          (A) purchased outside of this state;
             377          (B) brought into this state:
             378          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             379          (II) by a nonresident person who is not living or working in this state at the time of the
             380      purchase;
             381          (C) used for the personal use or enjoyment of the nonresident person described in
             382      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             383          (D) not used in conducting business in this state; and
             384          (ii) for:
             385          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             386      the product for a purpose for which the product is designed occurs outside of this state;
             387          (B) a boat, the boat is registered outside of this state; or
             388          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             389      outside of this state;
             390          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             391          (i) a lease or rental of a product; or
             392          (ii) a sale of a vehicle exempt under Subsection (33); and
             393          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             394      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             395      following:
             396          (i) conducting business in this state if that phrase has the same meaning in this
             397      Subsection (24) as in Subsection (63);


             398          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             399      as in Subsection (63); or
             400          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             401      this Subsection (24) as in Subsection (63);
             402          (25) a product purchased for resale in this state, in the regular course of business, either
             403      in its original form or as an ingredient or component part of a manufactured or compounded
             404      product;
             405          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             406      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             407      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             408      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             409      Act;
             410          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             411      person for use in compounding a service taxable under the subsections;
             412          (28) purchases made in accordance with the special supplemental nutrition program for
             413      women, infants, and children established in 42 U.S.C. Sec. 1786;
             414          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             415      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             416      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             417      Manual of the federal Executive Office of the President, Office of Management and Budget;
             418          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             419      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             420          (a) not registered in this state; and
             421          (b) (i) not used in this state; or
             422          (ii) used in this state:
             423          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             424      time period that does not exceed the longer of:
             425          (I) 30 days in any calendar year; or
             426          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             427      the borders of this state; or
             428          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time


             429      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             430      state;
             431          (31) sales of aircraft manufactured in Utah;
             432          (32) amounts paid for the purchase of telecommunications service for purposes of
             433      providing telecommunications service;
             434          (33) sales, leases, or uses of the following:
             435          (a) a vehicle by an authorized carrier; or
             436          (b) tangible personal property that is installed on a vehicle:
             437          (i) sold or leased to or used by an authorized carrier; and
             438          (ii) before the vehicle is placed in service for the first time;
             439          (34) (a) 45% of the sales price of any new manufactured home; and
             440          (b) 100% of the sales price of any used manufactured home;
             441          (35) sales relating to schools and fundraising sales;
             442          (36) sales or rentals of durable medical equipment if:
             443          (a) a person presents a prescription for the durable medical equipment; and
             444          (b) the durable medical equipment is used for home use only;
             445          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             446      Section 72-11-102 ; and
             447          (b) the commission shall by rule determine the method for calculating sales exempt
             448      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             449          (38) sales to a ski resort of:
             450          (a) snowmaking equipment;
             451          (b) ski slope grooming equipment;
             452          (c) passenger ropeways as defined in Section 72-11-102 ; or
             453          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             454      described in Subsections (38)(a) through (c);
             455          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             456          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             457      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             458      59-12-102 ;
             459          (b) if a seller that sells or rents at the same business location the right to use or operate


             460      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             461      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             462      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             463      amusement, entertainment, or recreation for the assisted amusement devices; and
             464          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             465      Utah Administrative Rulemaking Act, the commission may make rules:
             466          (i) governing the circumstances under which sales are at the same business location;
             467      and
             468          (ii) establishing the procedures and requirements for a seller to separately account for
             469      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             470      assisted amusement devices;
             471          (41) (a) sales of photocopies by:
             472          (i) a governmental entity; or
             473          (ii) an entity within the state system of public education, including:
             474          (A) a school; or
             475          (B) the State Board of Education; or
             476          (b) sales of publications by a governmental entity;
             477          (42) amounts paid for admission to an athletic event at an institution of higher
             478      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             479      20 U.S.C. Sec. 1681 et seq.;
             480          (43) (a) sales made to or by:
             481          (i) an area agency on aging; or
             482          (ii) a senior citizen center owned by a county, city, or town; or
             483          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             484          (44) sales or leases of semiconductor fabricating, processing, research, or development
             485      materials regardless of whether the semiconductor fabricating, processing, research, or
             486      development materials:
             487          (a) actually come into contact with a semiconductor; or
             488          (b) ultimately become incorporated into real property;
             489          (45) an amount paid by or charged to a purchaser for accommodations and services
             490      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section


             491      59-12-104.2 ;
             492          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             493      sports event registration certificate in accordance with Section 41-3-306 for the event period
             494      specified on the temporary sports event registration certificate;
             495          (47) sales or uses of electricity, if the sales or uses are:
             496          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             497      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             498      source, as designated in the tariff by the Public Service Commission of Utah; and
             499          (b) for an amount of electricity that is:
             500          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             501      under the tariff described in Subsection (47)(a); and
             502          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             503      Subsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);
             504          (48) sales or rentals of mobility enhancing equipment if a person presents a
             505      prescription for the mobility enhancing equipment;
             506          (49) sales of water in a:
             507          (a) pipe;
             508          (b) conduit;
             509          (c) ditch; or
             510          (d) reservoir;
             511          (50) sales of currency or coinage that constitute legal tender of the United States or of a
             512      foreign nation;
             513          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             514          (i) does not constitute legal tender of any nation; and
             515          (ii) has a gold, silver, or platinum content of 80% or more; and
             516          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             517          (i) ingot;
             518          (ii) bar;
             519          (iii) medallion; or
             520          (iv) decorative coin;
             521          (52) amounts paid on a sale-leaseback transaction;


             522          (53) sales of a prosthetic device:
             523          (a) for use on or in a human; and
             524          (b) (i) for which a prescription is required; or
             525          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             526          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             527      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             528      or equipment is primarily used in the production or postproduction of the following media for
             529      commercial distribution:
             530          (i) a motion picture;
             531          (ii) a television program;
             532          (iii) a movie made for television;
             533          (iv) a music video;
             534          (v) a commercial;
             535          (vi) a documentary; or
             536          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             537      commission by administrative rule made in accordance with Subsection (54)(d); or
             538          (b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery or
             539      equipment by an establishment described in Subsection (54)(c) that is used for the production
             540      or postproduction of the following are subject to the taxes imposed by this chapter:
             541          (i) a live musical performance;
             542          (ii) a live news program; or
             543          (iii) a live sporting event;
             544          (c) the following establishments listed in the 1997 North American Industry
             545      Classification System of the federal Executive Office of the President, Office of Management
             546      and Budget, apply to Subsections (54)(a) and (b):
             547          (i) NAICS Code 512110; or
             548          (ii) NAICS Code 51219; and
             549          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             550      commission may by rule:
             551          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             552      or


             553          (ii) define:
             554          (A) "commercial distribution";
             555          (B) "live musical performance";
             556          (C) "live news program"; or
             557          (D) "live sporting event";
             558          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             559      on or before June 30, 2019, of machinery or equipment that:
             560          (i) is leased or purchased for or by a facility that:
             561          (A) is a renewable energy production facility;
             562          (B) is located in the state; and
             563          (C) (I) becomes operational on or after July 1, 2004; or
             564          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             565      2004, as a result of the use of the machinery or equipment;
             566          (ii) has an economic life of five or more years; and
             567          (iii) is used to make the facility or the increase in capacity of the facility described in
             568      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             569      transmission grid including:
             570          (A) a wind turbine;
             571          (B) generating equipment;
             572          (C) a control and monitoring system;
             573          (D) a power line;
             574          (E) substation equipment;
             575          (F) lighting;
             576          (G) fencing;
             577          (H) pipes; or
             578          (I) other equipment used for locating a power line or pole; and
             579          (b) this Subsection (55) does not apply to:
             580          (i) machinery or equipment used in construction of:
             581          (A) a new renewable energy production facility; or
             582          (B) the increase in the capacity of a renewable energy production facility;
             583          (ii) contracted services required for construction and routine maintenance activities;


             584      and
             585          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             586      of the facility described in Subsection (55)(a)(i)(C)(II), machinery or equipment used or
             587      acquired after:
             588          (A) the renewable energy production facility described in Subsection (55)(a)(i) is
             589      operational as described in Subsection (55)(a)(iii); or
             590          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             591      in Subsection (55)(a)(iii);
             592          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             593      on or before June 30, 2019, of machinery or equipment that:
             594          (i) is leased or purchased for or by a facility that:
             595          (A) is a waste energy production facility;
             596          (B) is located in the state; and
             597          (C) (I) becomes operational on or after July 1, 2004; or
             598          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             599      2004, as a result of the use of the machinery or equipment;
             600          (ii) has an economic life of five or more years; and
             601          (iii) is used to make the facility or the increase in capacity of the facility described in
             602      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             603      transmission grid including:
             604          (A) generating equipment;
             605          (B) a control and monitoring system;
             606          (C) a power line;
             607          (D) substation equipment;
             608          (E) lighting;
             609          (F) fencing;
             610          (G) pipes; or
             611          (H) other equipment used for locating a power line or pole; and
             612          (b) this Subsection (56) does not apply to:
             613          (i) machinery or equipment used in construction of:
             614          (A) a new waste energy facility; or


             615          (B) the increase in the capacity of a waste energy facility;
             616          (ii) contracted services required for construction and routine maintenance activities;
             617      and
             618          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             619      described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or acquired after:
             620          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             621      described in Subsection (56)(a)(iii); or
             622          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             623      in Subsection (56)(a)(iii);
             624          (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
             625      or before June 30, 2019, of machinery or equipment that:
             626          (i) is leased or purchased for or by a facility that:
             627          (A) is located in the state;
             628          (B) produces fuel from biomass energy including:
             629          (I) methanol; or
             630          (II) ethanol; and
             631          (C) (I) becomes operational on or after July 1, 2004; or
             632          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             633      a result of the installation of the machinery or equipment;
             634          (ii) has an economic life of five or more years; and
             635          (iii) is installed on the facility described in Subsection (57)(a)(i);
             636          (b) this Subsection (57) does not apply to:
             637          (i) machinery or equipment used in construction of:
             638          (A) a new facility described in Subsection (57)(a)(i); or
             639          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             640          (ii) contracted services required for construction and routine maintenance activities;
             641      and
             642          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             643      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             644          (A) the facility described in Subsection (57)(a)(i) is operational; or
             645          (B) the increased capacity described in Subsection (57)(a)(i) is operational;


             646          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             647      product transferred electronically to a person within this state if that tangible personal property
             648      or product transferred electronically is subsequently shipped outside the state and incorporated
             649      pursuant to contract into and becomes a part of real property located outside of this state;
             650          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             651      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             652      gross receipts, or other similar transaction excise tax on the transaction against which the other
             653      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             654          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             655      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             656      refund:
             657          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             658          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             659      which the sale is made;
             660          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             661      sale prior to filing for the refund;
             662          (iv) for sales and use taxes paid under this chapter on the sale;
             663          (v) in accordance with Section 59-1-1410 ; and
             664          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             665      the person files for the refund on or before June 30, 2011;
             666          (59) purchases:
             667          (a) of one or more of the following items in printed or electronic format:
             668          (i) a list containing information that includes one or more:
             669          (A) names; or
             670          (B) addresses; or
             671          (ii) a database containing information that includes one or more:
             672          (A) names; or
             673          (B) addresses; and
             674          (b) used to send direct mail;
             675          (60) redemptions or repurchases of a product by a person if that product was:
             676          (a) delivered to a pawnbroker as part of a pawn transaction; and


             677          (b) redeemed or repurchased within the time period established in a written agreement
             678      between the person and the pawnbroker for redeeming or repurchasing the product;
             679          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             680          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             681      and
             682          (ii) has a useful economic life of one or more years; and
             683          (b) the following apply to Subsection (61)(a):
             684          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             685          (ii) telecommunications equipment, machinery, or software required for 911 service;
             686          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             687          (iv) telecommunications switching or routing equipment, machinery, or software; or
             688          (v) telecommunications transmission equipment, machinery, or software;
             689          (62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             690      personal property or a product transferred electronically that are used in the research and
             691      development of coal-to-liquids, oil shale, or tar sands technology; and
             692          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             693      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             694      purchases of tangible personal property or a product transferred electronically that are used in
             695      the research and development of coal-to-liquids, oil shale, and tar sands technology;
             696          (63) (a) purchases of tangible personal property or a product transferred electronically
             697      if:
             698          (i) the tangible personal property or product transferred electronically is:
             699          (A) purchased outside of this state;
             700          (B) brought into this state at any time after the purchase described in Subsection
             701      (63)(a)(i)(A); and
             702          (C) used in conducting business in this state; and
             703          (ii) for:
             704          (A) tangible personal property or a product transferred electronically other than the
             705      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             706      for a purpose for which the property is designed occurs outside of this state; or
             707          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered


             708      outside of this state;
             709          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             710          (i) a lease or rental of tangible personal property or a product transferred electronically;
             711      or
             712          (ii) a sale of a vehicle exempt under Subsection (33); and
             713          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             714      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             715      following:
             716          (i) conducting business in this state if that phrase has the same meaning in this
             717      Subsection (63) as in Subsection (24);
             718          (ii) the first use of tangible personal property or a product transferred electronically if
             719      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             720          (iii) a purpose for which tangible personal property or a product transferred
             721      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             722      Subsection (24);
             723          (64) sales of disposable home medical equipment or supplies if:
             724          (a) a person presents a prescription for the disposable home medical equipment or
             725      supplies;
             726          (b) the disposable home medical equipment or supplies are used exclusively by the
             727      person to whom the prescription described in Subsection (64)(a) is issued; and
             728          (c) the disposable home medical equipment and supplies are listed as eligible for
             729      payment under:
             730          (i) Title XVIII, federal Social Security Act; or
             731          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             732          (65) sales:
             733          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             734      District Act; or
             735          (b) of tangible personal property to a subcontractor of a public transit district, if the
             736      tangible personal property is:
             737          (i) clearly identified; and
             738          (ii) installed or converted to real property owned by the public transit district;


             739          (66) sales of construction materials:
             740          (a) purchased on or after July 1, 2010;
             741          (b) purchased by, on behalf of, or for the benefit of an international airport:
             742          (i) located within a county of the first class; and
             743          (ii) that has a United States customs office on its premises; and
             744          (c) if the construction materials are:
             745          (i) clearly identified;
             746          (ii) segregated; and
             747          (iii) installed or converted to real property:
             748          (A) owned or operated by the international airport described in Subsection (66)(b); and
             749          (B) located at the international airport described in Subsection (66)(b);
             750          (67) sales of construction materials:
             751          (a) purchased on or after July 1, 2008;
             752          (b) purchased by, on behalf of, or for the benefit of a new airport:
             753          (i) located within a county of the second class; and
             754          (ii) that is owned or operated by a city in which an airline as defined in Section
             755      59-2-102 is headquartered; and
             756          (c) if the construction materials are:
             757          (i) clearly identified;
             758          (ii) segregated; and
             759          (iii) installed or converted to real property:
             760          (A) owned or operated by the new airport described in Subsection (67)(b);
             761          (B) located at the new airport described in Subsection (67)(b); and
             762          (C) as part of the construction of the new airport described in Subsection (67)(b);
             763          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             764          (69) purchases and sales described in Section 9-3-511 ; and
             765          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             766      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             767      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             768      lists a state or country other than this state as the location of registry of the fixed wing turbine
             769      powered aircraft; or


             770          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             771      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             772      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             773      lists a state or country other than this state as the location of registry of the fixed wing turbine
             774      powered aircraft.
             775          Section 2. Section 59-12-104.6 is enacted to read:
             776          59-12-104.6. Procedure for claiming a sales and use tax exemption for certain
             777      lodging related purchases -- Rulemaking authority -- Applicability of section.
             778          (1) As used in this section:
             779          (a) "Designated establishment within the lodging industry" means an establishment
             780      described in NAICS Code 721110 or 721191of the 2007 North American Industry
             781      Classification System of the federal Executive Office of the President, Office of Management
             782      and Budget.
             783          (b) "Exempt purchaser" means a person that:
             784          (i) makes a lodging related purchase; and
             785          (ii) may claim an exemption from a tax under this chapter for the purchase.
             786          (c) "Lodging related purchase" means the purchase of the following from a seller that is
             787      a designated establishment within the lodging industry:
             788          (i) accommodations and services described in Subsection 59-12-103 (1)(i); or
             789          (ii) any other tangible personal property, product, or service that is:
             790          (A) purchased as part of a transaction that includes the purchase of accommodations
             791      and services described in Subsection (1)(c)(i); and
             792          (B) included on the invoice, bill of sale, or similar document provided to the purchaser
             793      of the accommodations and services described in Subsection (1)(c)(i).
             794          (2) Except as provided in Subsection (3), an exempt purchaser that makes a lodging
             795      related purchase:
             796          (a) shall pay a tax that would otherwise be imposed under this chapter on the lodging
             797      related purchase but for the purchaser being allowed to claim an exemption from a tax under
             798      this chapter for the purchase; and
             799          (b) may apply to the commission for a refund of the tax described in Subsection (2)(a)
             800      that the purchaser pays.


             801          (3) An exempt purchaser that makes a lodging related purchase may claim an
             802      exemption from a tax under this chapter at the point of sale if the exempt purchaser:
             803          (a) is an agency or instrumentality of the United States;
             804          (b) is exempt from a tax under this chapter on a lodging related purchase as authorized
             805      by a diplomatic tax exemption card issued by the United States; or
             806          (c) may claim the exemption at the point of sale in accordance with Section
             807      59-12-104.1 .
             808          (4) An exempt purchaser that applies to the commission for a refund may not make an
             809      application to the commission for a refund more frequently than monthly.
             810          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             811      commission may make rules providing:
             812          (a) procedures for applying for a refund under this section;
             813          (b) standards for determining and verifying the amount of a lodging related purchase by
             814      an exempt purchaser; and
             815          (c) procedures for claiming a refund on a monthly basis.
             816          (6) This section does not apply to amounts taxed by the Navajo Nation that are exempt
             817      from sales and use taxes in accordance with Section 59-12-104.2 .
             818          Section 3. Section 59-12-302 is amended to read:
             819           59-12-302. Collection of tax -- Administrative fee -- Penalties.
             820          (1) (a) Except as provided in Subsection (1)(b) or (c), the tax authorized under this part
             821      shall be administered, collected, and enforced in accordance with:
             822          (i) the same procedures used to administer, collect, and enforce the tax under:
             823          (A) Part 1, Tax Collection; or
             824          (B) Part 2, Local Sales and Use Tax Act; and
             825          (ii) Chapter 1, General Taxation Policies.
             826          [(b) (i) Notwithstanding Section 59-12-206 , each county may collect the tax imposed
             827      by the county and need not transmit the tax to the commission or contract with the commission
             828      to collect the tax.]
             829          [(ii)] (b) The [amount of tax collected shall be reported to the commission as provided
             830      in] location of a transaction shall be determined in accordance with Sections 59-12-211
             831      through 59-12-215 .


             832          (c) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
             833      Subsections 59-12-205 (2) through (6).
             834          (d) (i) [If the commission collects a tax under this part, the] The commission:
             835          (A) except as provided in Subsection (1)(d)(i)(B), shall distribute the revenues
             836      [generated by] collected from the tax to the county within which the revenues were [generated]
             837      collected; and
             838          (B) [notwithstanding Subsection (1)(d)(i)(A),] may retain an amount of tax collected
             839      under this part of not to exceed the lesser of:
             840          (I) 1.5%; or
             841          (II) an amount equal to the cost to the commission of administering this part.
             842          (ii) Any amount the commission retains under Subsection (1)(d)(i)(B) shall be:
             843          (A) placed in the Sales and Use Tax Administrative Fees Account; and
             844          (B) used as provided in Subsection 59-12-206 (2).
             845          [(2) (a) The tax ordinance adopted by a county pursuant to Section 59-12-301 may
             846      include provisions for the imposition of penalties and interest if a person or entity required to
             847      pay a tax under this part fails to timely remit the tax to the collecting agent.]
             848          [(b) A county legislative body may not establish penalties and interest by ordinance
             849      that exceed the penalties and interest rates authorized for the commission in Sections 59-1-401
             850      and 59-1-402 .]
             851          [(3) A county may adopt an ordinance imposing penalties and interest under
             852      Subsection (2) only if the county does not contract with the commission to collect the tax.]
             853          [(4) If a county elects to collect the tax as provided in Subsection (1), the commission
             854      shall interpret, audit, and adjudicate the tax imposed under this part.]
             855          Section 4. Section 59-12-354 is amended to read:
             856           59-12-354. Collection of tax -- Administrative fee -- Penalties.
             857          (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
             858      shall be administered, collected, and enforced in accordance with:
             859          (a) the same procedures used to administer, collect, and enforce the tax under:
             860          (i) Part 1, Tax Collection; or
             861          (ii) Part 2, Local Sales and Use Tax Act; and
             862          (b) Chapter 1, General Taxation Policies.


             863          [(2) Notwithstanding Section 59-12-206 , a municipality imposing a tax under this
             864      part:]
             865          [(a) may collect the tax and is not required to:]
             866          [(i) transmit revenues generated by the tax to the commission; or]
             867          [(ii) contract with the commission to collect the tax;]
             868          [(b)] (2) (a) [shall report the revenues it collects to the commission as provided in] The
             869      location of a transaction shall be determined in accordance with Sections 59-12-211 through
             870      59-12-215 [; and].
             871          [(c) subject to the limitations of Subsections (4) and (5), may adopt an ordinance
             872      imposing penalties and interest on a person who:]
             873          [(i) is required to pay the tax under this part; and]
             874          [(ii) does not remit the tax to the collecting agent in a timely manner.]
             875          [(d)] (b) (i) [If the commission collects a tax under this part, the] The commission:
             876          (A) except as provided in Subsection (2)(d)(i)(B), shall distribute the revenues
             877      [generated by] collected from the tax to the municipality within which the revenues were
             878      [generated] collected; and
             879          (B) [notwithstanding Subsection (2)(d)(i)(A),] may retain an amount of tax collected
             880      under this part of not to exceed the lesser of:
             881          (I) 1.5%; or
             882          (II) an amount equal to the cost to the commission of administering this part.
             883          (ii) Any amount the commission retains under Subsection (2)[(d)](b)(i)(B) shall be:
             884          (A) placed in the Sales and Use Tax Administrative Fees Account; and
             885          (B) used as provided in Subsection 59-12-206 (2).
             886          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
             887      Subsections 59-12-205 (2) through (6).
             888          [(4) A governing body of a municipality adopting an ordinance imposing penalties and
             889      interest under Subsection (2)(c) may impose penalties and interest in amounts that are less than
             890      or equal to the penalties and interest rates authorized for the commission under Sections
             891      59-1-401 and 59-1-402 .]
             892          [(5) A municipality may adopt an ordinance imposing penalties and interest under
             893      Subsection (2)(c) only if the municipality does not contract with the commission to collect the


             894      tax.]
             895          [(6) If a municipality elects to collect the tax as provided in Subsection (2), the
             896      commission shall interpret, audit, and adjudicate the tax imposed under this part.]
             897          Section 5. Effective date.
             898          (1) This bill takes effect on July 1, 2011.
             899          (2) The amendments to Section 59-12-104.6 apply to a lodging related purchase made
             900      on or after July 1, 2011.


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