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H.B. 72

             1     

TAXES AND RELATED SCHOOL FUNDING PROVISIONS

             2     
AMENDMENTS

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Michael E. Noel

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill makes changes to taxes and school funding.
             11      Highlighted Provisions:
             12          This bill:
             13          .    increases the state sales and use tax rate on food and food ingredients to the general
             14      state sales and use tax rate;
             15          .    adds food and food ingredients to the tax base for certain local option sales and use
             16      taxes;
             17          .    creates a School Equalization Fund and provides for operation of the fund;
             18          .    deposits revenues from the state sales and use tax increases into the School
             19      Equalization Fund;
             20          .    provides a methodology for allocations from the School Equalization Fund;
             21          .    reduces school district certified property tax rates by the amount of allocations from
             22      the School Equalization Fund;
             23          .    prohibits all taxing entities from imposing a property tax rate higher than the
             24      certified tax rate for a certain period of time;
             25          .    makes adjustments to property tax fee-in-lieu allocations;
             26          .    adjusts the methodology for funding charter schools and the school board and voted
             27      leeway guarantee programs;


             28          .    adjusts allocations to the Centennial Highway Fund Restricted Account; and
             29          .    makes technical changes.
             30      Money Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          This bill provides for effective dates.
             34      Utah Code Sections Affected:
             35      AMENDS:
             36          10-1-405, as last amended by Laws of Utah 2009, Chapter 212
             37          11-41-102, as last amended by Laws of Utah 2008, Chapters 286 and 384
             38          26-36a-206, as enacted by Laws of Utah 2010, Chapter 179
             39          53A-1a-513, as last amended by Laws of Utah 2010, Chapters 3 and 399
             40          53A-17a-133, as last amended by Laws of Utah 2010, Chapter 399
             41          53A-17a-134, as last amended by Laws of Utah 2010, Chapter 399
             42          53A-21-101.5, as last amended by Laws of Utah 2010, Chapter 185
             43          59-1-401, as last amended by Laws of Utah 2010, Chapter 233
             44          59-2-404, as last amended by Laws of Utah 2008, Chapter 206
             45          59-2-405, as last amended by Laws of Utah 2008, Chapter 210
             46          59-2-405.1, as last amended by Laws of Utah 2008, Chapter 210
             47          59-2-405.2, as last amended by Laws of Utah 2009, Chapter 169
             48          59-2-405.3, as enacted by Laws of Utah 2005, Chapter 217
             49          59-12-102, as last amended by Laws of Utah 2010, Chapters 88, 142, 234, and 263
             50          59-12-103, as last amended by Laws of Utah 2010, Chapter 412
             51          59-12-104.2, as last amended by Laws of Utah 2009, Chapter 203
             52          59-12-108, as last amended by Laws of Utah 2008, Chapters 286, 382, and 384
             53          59-12-401, as last amended by Laws of Utah 2010, Chapter 9
             54          59-12-402, as last amended by Laws of Utah 2010, Chapter 9
             55          59-12-703, as last amended by Laws of Utah 2008, Chapters 382 and 384
             56          59-12-802, as last amended by Laws of Utah 2008, Chapter 384
             57          59-12-804, as last amended by Laws of Utah 2008, Chapter 384
             58          59-12-1201, as last amended by Laws of Utah 2009, Chapter 203


             59          59-12-1302, as last amended by Laws of Utah 2008, Chapters 382 and 384
             60          59-12-1402, as last amended by Laws of Utah 2008, Chapters 382 and 384
             61          59-12-2003, as last amended by Laws of Utah 2010, Chapter 263
             62          59-12-2103, as enacted by Laws of Utah 2008, Chapter 323
             63          59-12-2204, as enacted by Laws of Utah 2010, Chapter 263
             64      ENACTS:
             65          53A-21-601, Utah Code Annotated 1953
             66          53A-21-602, Utah Code Annotated 1953
             67          53A-21-603, Utah Code Annotated 1953
             68          59-2-919.3, Utah Code Annotated 1953
             69          59-2-924.5, Utah Code Annotated 1953
             70     
             71      Be it enacted by the Legislature of the state of Utah:
             72          Section 1. Section 10-1-405 is amended to read:
             73           10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
             74      Rulemaking authority -- Charge for services.
             75          (1) Subject to the other provisions of this section, the commission shall collect,
             76      enforce, and administer any municipal telecommunications license tax imposed under this part
             77      pursuant to:
             78          (a) the same procedures used in the administration, collection, and enforcement of the
             79      state sales and use tax under:
             80          (i) Title 59, Chapter 1, General Taxation Policies; and
             81          (ii) Title 59, Chapter 12, Part 1, Tax Collection:
             82          (A) except for:
             83          (I) Subsection 59-12-103 (2)[(g)](f);
             84          (II) Section 59-12-104 ;
             85          (III) Section 59-12-104.1 ;
             86          (IV) Section 59-12-104.2 ;
             87          (V) Section 59-12-104.3 ;
             88          (VI) Section 59-12-107.1 ; and
             89          (VII) Section 59-12-123 ; and


             90          (B) except that for purposes of Section 59-1-1410 , the term "person" may include a
             91      customer from whom a municipal telecommunications license tax is recovered in accordance
             92      with Subsection 10-1-403 (2); and
             93          (b) a uniform interlocal agreement:
             94          (i) between:
             95          (A) the municipality that imposes the municipal telecommunications license tax; and
             96          (B) the commission;
             97          (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             98          (iii) that complies with Subsection (2)(a); and
             99          (iv) that is developed by rule in accordance with Subsection (2)(b).
             100          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             101      the commission shall:
             102          (i) transmit money collected under this part:
             103          (A) monthly; and
             104          (B) by electronic funds transfer by the commission to the municipality;
             105          (ii) conduct audits of the municipal telecommunications license tax;
             106          (iii) charge the municipality for the commission's services under this section in an
             107      amount:
             108          (A) sufficient to reimburse the commission for the cost to the commission in rendering
             109      the services; and
             110          (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
             111      license tax imposed by the ordinance of the municipality; and
             112          (iv) collect, enforce, and administer the municipal telecommunications license tax
             113      authorized under this part pursuant to the same procedures used in the administration,
             114      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             115          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             116      commission shall develop a uniform interlocal agreement that meets the requirements of this
             117      section.
             118          (3) The administrative fee charged under Subsection (2)(a) shall be:
             119          (a) deposited in the Sales and Use Tax Administrative Fees Account; and
             120          (b) used for administration of municipal telecommunications license taxes under this


             121      part.
             122          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
             123      telecommunications license tax under this part at a rate that exceeds 3.5%:
             124          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
             125      shall collect the municipal telecommunications license tax:
             126          (i) within the municipality;
             127          (ii) at a rate of 3.5%; and
             128          (iii) from a telecommunications provider required to pay the municipal
             129      telecommunications license tax on or after July 1, 2007; and
             130          (b) the commission shall collect a municipal telecommunications license tax within the
             131      municipality at the rate imposed by the municipality if:
             132          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
             133      telecommunications license tax under this part at a rate of up to 3.5%;
             134          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             135      the rate of the municipal telecommunications license tax; and
             136          (iii) a telecommunications provider is required to pay the municipal
             137      telecommunications license tax on or after the day on which the ordinance described in
             138      Subsection (4)(b)(ii) takes effect.
             139          Section 2. Section 11-41-102 is amended to read:
             140           11-41-102. Definitions.
             141          As used in this chapter:
             142          (1) "Agreement" means an oral or written agreement between a:
             143          (a) (i) county; or
             144          (ii) municipality; and
             145          (b) person.
             146          (2) "Municipality" means a:
             147          (a) city; or
             148          (b) town.
             149          (3) "Payment" includes:
             150          (a) a payment;
             151          (b) a rebate;


             152          (c) a refund; or
             153          (d) an amount similar to Subsections (3)(a) through (c).
             154          (4) "Regional retail business" means a:
             155          (a) retail business that occupies a floor area of more than 80,000 square feet;
             156          (b) dealer as defined in Section 41-1a-102 ;
             157          (c) retail shopping facility that has at least two anchor tenants if the total number of
             158      anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
             159      feet; or
             160          (d) grocery store that occupies a floor area of more than 30,000 square feet.
             161          (5) (a) "Sales and use tax" means a tax:
             162          (i) imposed on transactions within a:
             163          (A) county; or
             164          (B) municipality; and
             165          (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
             166      Sales and Use Tax Act.
             167          (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
             168      authorized under:
             169          (i) Subsection 59-12-103 (2)(a)(i);
             170          (ii) Subsection 59-12-103 (2)(b)(i);
             171          [(iii) Subsection 59-12-103 (2)(c)(i);]
             172          [(iv) Subsection 59-12-103 (2)(d)(i)(A);]
             173          [(v)] (iii) Section 59-12-301 ;
             174          [(vi)] (iv) Section 59-12-352 ;
             175          [(vii)] (v) Section 59-12-353 ;
             176          [(viii)] (vi) Section 59-12-603 ; or
             177          [(ix)] (vii) Section 59-12-1201 .
             178          (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
             179          (i) to a person;
             180          (ii) by a:
             181          (A) county; or
             182          (B) municipality;


             183          (iii) to induce the person to locate or relocate a regional retail business within the:
             184          (A) county; or
             185          (B) municipality; and
             186          (iv) that are derived from a sales and use tax.
             187          (b) "Sales and use tax incentive payment" does not include funding for public
             188      infrastructure.
             189          Section 3. Section 26-36a-206 is amended to read:
             190           26-36a-206. Penalties and interest.
             191          (1) A facility that fails to pay any assessment or file a return as required under this
             192      chapter, within the time required by this chapter, shall pay, in addition to the assessment,
             193      penalties and interest established by the department.
             194          (2) (a) Consistent with Subsection (2)(b), the department shall adopt rules in
             195      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, which establish
             196      reasonable penalties and interest for the violations described in Subsection (1).
             197          (b) If a hospital fails to timely pay the full amount of a quarterly assessment, the
             198      department shall add to the assessment:
             199          (i) a penalty equal to 5% of the quarterly amount not paid on or before the due date;
             200      and
             201          (ii) on the last day of each quarter after the due date until the assessed amount and the
             202      penalty imposed under Subsection (2)(b)(i) are paid in full, an additional 5% penalty on:
             203          (A) any unpaid quarterly assessment; and
             204          (B) any unpaid penalty assessment.
             205          (c) The division may waive, reduce, or compromise the penalties and interest provided
             206      for in this section in the same manner as provided in Subsection 59-1-401 [(8)](13).
             207          Section 4. Section 53A-1a-513 is amended to read:
             208           53A-1a-513. Funding for charter schools.
             209          (1) As used in this section:
             210          (a) "Charter school students' average local revenues" means the amount determined as
             211      follows:
             212          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             213      district per pupil local revenues of the school district in which the student resides;


             214          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             215      school on the previous October 1; and
             216          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             217      enrolled in charter schools on the previous October 1.
             218          (b) "District per pupil local revenues" means the amount determined as follows, using
             219      data from the most recently published school district annual financial reports and state
             220      superintendent's annual report:
             221          (i) calculate the sum of a school district's revenue received from:
             222          (A) a voted levy imposed under Section 53A-17a-133 ;
             223          (B) a board levy imposed under Section 53A-17a-134 ;
             224          (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
             225          (D) a tort liability levy imposed under Section 63G-7-704 ;
             226          (E) a capital outlay levy imposed under Section 53A-16-107 ; [and]
             227          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; and
             228          (G) the School Equalization Fund, in accordance with Section 53A-21-603 , except for
             229      allocations used to abate property taxes imposed for bond payments in accordance with Section
             230      53A-21-602 ; and
             231          (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
             232          (A) a school district's average daily membership; and
             233          (B) the average daily membership of a school district's resident students who attend
             234      charter schools.
             235          (c) "Resident student" means a student who is considered a resident of the school
             236      district under [Title 53A,] Chapter 2, Part 2, District of Residency.
             237          (d) "Statewide average debt service [revenues"] expenditures" means the amount
             238      determined as follows, using data from the most recently published state superintendent's
             239      annual report:
             240          (i) sum the [revenues] expenditures of each school district for general obligation
             241      bonded indebtedness from the debt service levy imposed under Section 11-14-310 and
             242      allocations from the School Equalization Fund created in Section 53A-21-603 ; and
             243          (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
             244      average daily membership.


             245          (2) (a) Charter schools shall receive funding as described in this section, except
             246      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             247          (b) Charter schools authorized by local school boards that are converted from district
             248      schools or operate in district facilities without paying reasonable rent shall receive funding as
             249      prescribed in Section 53A-1a-515 .
             250          (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
             251      funds, as applicable, on the same basis as a school district receives funds.
             252          (b) In distributing funds under [Title 53A,] Chapter 17a, Minimum School Program
             253      Act, to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             254          (i) .55 for kindergarten pupils;
             255          (ii) .9 for pupils in grades 1-6;
             256          (iii) .99 for pupils in grades 7-8; and
             257          (iv) 1.2 for pupils in grades 9-12.
             258          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
             259      resident student of the school district who is enrolled in a charter school on October 1 equal to
             260      25% of the lesser of:
             261          (A) district per pupil local revenues; or
             262          (B) charter school students' average local revenues.
             263          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             264      established under Chapter 28, Utah School Bond Guaranty Act.
             265          (b) The State Board of Education shall:
             266          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             267      state funds the school district is authorized to receive under [Title 53A,] Chapter 17a,
             268      Minimum School Program Act; and
             269          (ii) remit the money to the student's charter school.
             270          (c) Notwithstanding the method used to transfer school district revenues to charter
             271      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             272      schools under this section from:
             273          (i) unrestricted revenues available to the school district; or
             274          (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through [(F)] (G) based on
             275      the portion of the allocations to charter schools attributed to each of the revenue sources listed


             276      in Subsections (1)(b)(i)(A) through [(F)] (G).
             277          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             278      appropriation for charter schools for each student enrolled on October 1 to supplement the
             279      allocation of school district revenues under Subsection (4)(a).
             280          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
             281      state for a charter school student shall be the sum of:
             282          (A) charter school students' average local revenues minus the allocation of school
             283      district revenues under Subsection (4)(a); and
             284          (B) statewide average debt service [revenues] expenditures.
             285          (iii) If the total of a school district's allocation for a charter school student under
             286      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             287      $1427, the state shall provide an additional supplement so that a charter school receives at least
             288      $1427 per student under this Subsection (4).
             289          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
             290      amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
             291      among charter schools in proportion to each charter school's enrollment as a percentage of the
             292      total enrollment in charter schools.
             293          (B) If the State Board of Education makes adjustments to Minimum School Program
             294      allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
             295      (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
             296          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             297      expended for funding school facilities only.
             298          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             299      federal requirements and comply with relevant federal regulations.
             300          (6) The State Board of Education shall distribute funds for charter school students
             301      directly to the charter school.
             302          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             303      transportation funding.
             304          (b) The board shall also adopt rules relating to the transportation of students to and
             305      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             306          (c) The governing body of the charter school may provide transportation through an


             307      agreement or contract with the local school board, a private provider, or with parents.
             308          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             309      start-up and ongoing costs to eligible charter school applicants from money appropriated for
             310      the implementation of this part.
             311          (ii) Applications for the grants shall be filed on a form determined by the state
             312      superintendent and in conjunction with the application for a charter.
             313          (iii) The amount of a grant may vary based upon the size, scope, and special
             314      circumstances of the charter school.
             315          (iv) The governing board of the charter school shall use the grant to meet the expenses
             316      of the school as established in the school's charter.
             317          (b) The State Board of Education shall coordinate the distribution of federal money
             318      appropriated to help fund costs for establishing and maintaining charter schools within the
             319      state.
             320          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             321      endowment, gift, or donation of any property made to the school for any of the purposes of this
             322      part.
             323          (b) It is unlawful for any person affiliated with a charter school to demand or request
             324      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             325      with the charter school as a condition for employment or enrollment at the school or continued
             326      attendance at the school.
             327          Section 5. Section 53A-17a-133 is amended to read:
             328           53A-17a-133. State-supported voted leeway program authorized -- Election
             329      requirements -- State guarantee -- Reconsideration of the program.
             330          (1) An election to consider adoption or modification of a voted leeway program is
             331      required if initiative petitions signed by 10% of the number of electors who voted at the last
             332      preceding general election are presented to the local school board or by action of the board.
             333          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
             334      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             335      special tax.
             336          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             337          (b) The district may maintain a school program which exceeds the cost of the program


             338      referred to in Section 53A-17a-145 with this voted leeway.
             339          (c) In order to receive state support the first year, a district must receive voter approval
             340      no later than December 1 of the year prior to implementation.
             341          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             342      to guarantee $25.25 per weighted pupil unit for each .0001 of the first .0016 per dollar of
             343      taxable value.
             344          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             345      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
             346      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             347      taxable value if a school district levies a tax rate under both programs.
             348          (c) Beginning July 1, 2011, the $25.25 guarantee under Subsections (3)(a) and (b) shall
             349      be indexed each year to the value of the weighted pupil unit by making the value of the
             350      guarantee equal to.010544 times the value of the prior year's weighted pupil unit.
             351          (d) (i) The amount of state guarantee money to which a school district would otherwise
             352      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             353      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             354      pursuant to changes in property valuation.
             355          (ii) Except as provided in Subsection (3)(d)(iii), Subsection (3)(d)(i) applies for a
             356      period of five years following any such change in the certified tax rate.
             357          (iii) For fiscal year 2012-13, Subsection (3)(d)(i) applies for a period of six years
             358      following any such change in the certified tax rate.
             359          (e) The guarantee provided under this section does not apply to the portion of a voted
             360      leeway rate that exceeds the voted leeway rate that was in effect for the previous fiscal year,
             361      unless an increase in the voted leeway rate was authorized in an election conducted on or after
             362      July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
             363          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             364      of the existing program unless the proposition submitted to the electors expressly so states.
             365          (b) A majority vote opposing a modification does not deprive the district of authority to
             366      continue an existing program.
             367          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             368      school board levies, the board must allow the electors, in an election, to consider modifying or


             369      discontinuing the program prior to a subsequent increase in other levies that would increase the
             370      total local school board levy.
             371          (d) Nothing contained in this section terminates, without an election, the authority of a
             372      school district to continue an existing voted leeway program previously authorized by the
             373      voters.
             374          (5) Notwithstanding Section 59-2-919 , a school district may budget an increased
             375      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             376      section in addition to revenue from new growth as defined in Subsection 59-2-924 (4), without
             377      having to comply with the notice requirements of Section 59-2-919 , if:
             378          (a) the voted leeway is approved:
             379          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             380          (ii) within the four-year period immediately preceding the year in which the school
             381      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             382      the voted leeway; and
             383          (b) for a voted leeway approved or modified in accordance with this section on or after
             384      January 1, 2009, the school district complies with the requirements of Subsection (7).
             385          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             386      section that exceeds the certified tax rate without having to comply with the notice
             387      requirements of Section 59-2-919 if:
             388          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             389      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             390      under this section;
             391          (b) the voted leeway was approved:
             392          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             393          (ii) within the four-year period immediately preceding the year in which the school
             394      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             395      the voted leeway; and
             396          (c) for a voted leeway approved or modified in accordance with this section on or after
             397      January 1, 2009, the school district complies with requirements of Subsection (7).
             398          (7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
             399      electors regarding the adoption or modification of a voted leeway program shall contain the


             400      following statement:
             401          "A vote in favor of this tax means that (name of the school district) may increase
             402      revenue from this property tax without advertising the increase for the next five years."
             403          Section 6. Section 53A-17a-134 is amended to read:
             404           53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
             405          (1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
             406      value to maintain a school program above the cost of the basic school program as follows:
             407          (a) a local school board shall use the monies generated by the tax for class size
             408      reduction within the school district;
             409          (b) if a local school board determines that the average class size in the school district is
             410      not excessive, it may use the monies for other school purposes but only if the board has
             411      declared the use for other school purposes in a public meeting prior to levying the tax rate; and
             412          (c) a district may not use the monies for other school purposes under Subsection (1)(b)
             413      until it has certified in writing that its class size needs are already being met and has identified
             414      the other school purposes for which the monies will be used to the State Board of Education
             415      and the state board has approved their use for other school purposes.
             416          (2) (a) The state shall contribute an amount sufficient to guarantee $25.25 per weighted
             417      pupil unit for each .0001 per dollar of taxable value.
             418          (b) The guarantee shall increase in the same manner as provided for the voted leeway
             419      guarantee in Subsection 53A-17a-133 (3)(c).
             420          (c) (i) The amount of state guarantee money to which a school district would otherwise
             421      be entitled [to] under this Subsection (2) may not be reduced for the sole reason that the
             422      district's levy is reduced as a consequence of changes in the certified tax rate under Section
             423      59-2-924 pursuant to changes in property valuation.
             424          (ii) Except as provided in Subsection (2)(c)(iii), Subsection (2)(c)(i) applies for a
             425      period of five years following any such change in the certified tax rate.
             426          (iii) For fiscal year 2012-13, Subsection (2)(c)(i) applies for a period of six years
             427      following any such change in the certified tax rate.
             428          (d) The guarantee provided under this section does not apply to:
             429          (i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
             430      leeway was approved by voters pursuant to Subsections (4) through (6); or


             431          (ii) the portion of a board-authorized leeway rate that is in excess of the
             432      board-authorized leeway rate that was in effect for the previous fiscal year.
             433          (3) The levy authorized under this section is not in addition to the maximum rate of
             434      .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
             435      rate under that section.
             436          (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
             437      require voter approval, but the board may require voter approval if requested by a majority of
             438      the board.
             439          (5) An election to consider disapproval of the board-authorized levy is required, if
             440      within 60 days after the levy is established by the board, referendum petitions signed by the
             441      number of legal voters required in Section 20A-7-301 , who reside within the school district, are
             442      filed with the school district.
             443          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
             444      the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
             445      election is required under this section, the levy applies to the fiscal year beginning July 1 of the
             446      next calendar year.
             447          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
             448      occur at a general election in even-numbered years, except that a vote required under this
             449      section in odd-numbered years shall occur at a special election held on a day in odd-numbered
             450      years that corresponds to the general election date. The school district shall pay for the cost of
             451      a special election.
             452          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
             453      this section is governed by Section 53A-17a-133 .
             454          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
             455      of the board subject to disapproval procedures specified in this section.
             456          (8) A board levy election does not require publication of a voter information pamphlet.
             457          Section 7. Section 53A-21-101.5 is amended to read:
             458           53A-21-101.5. Definitions.
             459          As used in this chapter:
             460          (1) "ADM" or "pupil in average daily membership" is as defined in Section
             461      53A-17a-103 .


             462          (2) "Base tax effort rate" means the average of:
             463          (a) the highest combined capital levy rate; and
             464          (b) the average combined capital levy rate for the school districts statewide.
             465          (3) "Combined capital levy rate" means a rate that includes the sum of the following
             466      property tax levies:
             467          (a) the capital outlay levy authorized in Section 53A-16-107 ;
             468          (b) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
             469      budgeted for debt service or capital outlay;
             470          (c) the debt service levy authorized in Section 11-14-310 ; and
             471          (d) the voted capital outlay leeway authorized in Section 53A-16-110 .
             472          (4) "Derived net taxable value" means the quotient of:
             473          (a) the total property tax collections from April 1 through the following March 31 for a
             474      school district for the calendar year preceding the March 31 date; divided by
             475          (b) the school district's total tax rate for the calendar year preceding the March 31
             476      referenced in Subsection (4)(a).
             477          (5) "Highest combined capital levy rate" means the highest combined capital levy rate
             478      imposed by a school district within the state for a fiscal year.
             479          (6) "Property tax base per ADM" means the quotient of:
             480          (a) a school district's derived net taxable value; divided by
             481          (b) the school district's ADM.
             482          (7) "Property tax yield per ADM" means:
             483          (a) the product of:
             484          (i) a school district's derived net taxable value; and
             485          (ii) the base tax effort rate; divided by
             486          (b) the school district's ADM.
             487          (8) "School Equalization Fund" or "fund" means the fund created in Section
             488      53A-21-602 .
             489          [(8)] (9) "Statewide average property tax base per ADM" means the quotient of:
             490          (a) the sum of all school districts' derived net taxable value; divided by
             491          (b) the sum of all school districts' ADM.
             492          Section 8. Section 53A-21-601 is enacted to read:


             493     
Part 6. School Equalization

             494          53A-21-601. Definitions.
             495          As used in this part:
             496          (1) "Enrollment" means enrollment in a school district or charter school as of the
             497      October 1 enrollment counts.
             498          (2) "Three-year average enrollment growth" means an amount calculated by:
             499          (a) subtracting the enrollment in the year that is three years prior to the current year
             500      from the enrollment in the current year; and
             501          (b) dividing the number resulting from the subtraction under Subsection (2)(a) by
             502      three.
             503          Section 9. Section 53A-21-602 is enacted to read:
             504          53A-21-602. School Equalization Fund -- Sources of revenue -- Interest.
             505          (1) There is created a special revenue fund within the Education Fund known as the
             506      "School Equalization Fund."
             507          (2) (a) The fund shall be funded by:
             508          (i) sales and use tax revenues deposited in accordance with Section 59-12-103 ; and
             509          (ii) legislative appropriations.
             510          (b) Any interest earned on the fund shall be deposited into the fund.
             511          (3) The State Board of Education shall distribute revenues deposited into the fund in
             512      accordance with Section 53A-21-603 .
             513          (4) A school district or charter school that receives an allocation from the School
             514      Equalization Fund:
             515          (a) shall first use funds to reduce and replace property taxes imposed for capital outlay
             516      in accordance with Section 53A-16-107 ; and
             517          (b) if property taxes imposed for capital outlay are fully reduced in accordance with
             518      Subsection (4)(a), shall first use the funds in place of property tax levies imposed under
             519      Sections 11-14-310 , 53A-16-110 , 53A-17a-133 , 53A-17a-134 , 53A-17a-145 , and 63G-7-704 ,
             520      and then may use the funds for any capital outlay or general fund purpose.
             521          Section 10. Section 53A-21-603 is enacted to read:
             522          53A-21-603. School Equalization Program -- Allocations.
             523          (1) There is created the "School Equalization Program," as described in this section.


             524          (2) For fiscal years beginning on or after July 1, 2012, the State Board of Education
             525      shall annually allocate School Equalization Program funds in accordance with Subsection (3).
             526          (3) Except as provided in Subsection (4), the State Board of Education shall annually:
             527          (a) determine the amount of funds available in the School Equalization Fund for
             528      allocation;
             529          (b) distribute 75% of the available funds to school districts in proportion to each school
             530      district's percentage of statewide enrollment in the current year; and
             531          (c) distribute 25% of the available funds to school districts in proportion to each school
             532      district's percentage of the combined total of three-year average enrollment growth in all school
             533      districts with an increase in three-year average enrollment growth.
             534          (4) (a) In making allocations under Subsection (3), the State Board of Education shall
             535      allocate funds in fiscal year 2012-13 only to the extent that the related certified tax rate
             536      reduction under Section 59-2-924.5 does not reduce a school district's certified tax rate below
             537      the minimum basic tax rate imposed under Section 53A-17a-135 .
             538          (b) The State Board of Education shall allocate any funds that are not allocated due to
             539      Subsection (4)(a) to other school districts in accordance with the allocation methodology under
             540      Subsection (3).
             541          (5) By April 1, 2012, the State Board of Education shall notify the Tax Commission
             542      and each school district of projected allocations under this section for fiscal year 2012-13.
             543          (6) If a new school district is created or school district boundaries are adjusted, the
             544      enrollment and three-year average enrollment growth shall be calculated on the basis of
             545      enrollment in school district schools located within that school district's newly created or
             546      adjusted boundaries.
             547          Section 11. Section 59-1-401 is amended to read:
             548           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             549      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             550      interest.
             551          (1) As used in this section:
             552          (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
             553      commission:
             554          (i) has implemented the commission's GenTax system; and


             555          (ii) at least 30 days before implementing the commission's GenTax system as described
             556      in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
             557      stating:
             558          (A) the date the commission will implement the GenTax system with respect to the tax,
             559      fee, or charge; and
             560          (B) that, at the time the commission implements the GenTax system with respect to the
             561      tax, fee, or charge:
             562          (I) a person that files a return after the due date as described in Subsection (2)(a) is
             563      subject to the penalty described in Subsection (2)(c)(ii); and
             564          (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
             565      subject to the penalty described in Subsection (3)(b)(ii).
             566          (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
             567      charge, the later of:
             568          (i) the date on which the commission implements the commission's GenTax system
             569      with respect to the tax, fee, or charge; or
             570          (ii) 30 days after the date the commission provides the notice described in Subsection
             571      (1)(a)(ii) with respect to the tax, fee, or charge.
             572          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
             573          (A) a tax, fee, or charge the commission administers under:
             574          (I) this title;
             575          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             576          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             577          (IV) Section 19-6-410.5 ;
             578          (V) Section 19-6-714 ;
             579          (VI) Section 19-6-805 ;
             580          (VII) Section 34A-2-202 ;
             581          (VIII) Section 40-6-14 ;
             582          (IX) Section 69-2-5 ;
             583          (X) Section 69-2-5.5 ; or
             584          (XI) Section 69-2-5.6 ; or
             585          (B) another amount that by statute is subject to a penalty imposed under this section.


             586          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             587          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;
             588          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
             589          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309 ;
             590          (D) Chapter 3, Tax Equivalent Property Act; or
             591          (E) Chapter 4, Privilege Tax.
             592          (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
             593      tax, fee, or charge.
             594          (2) (a) The due date for filing a return is:
             595          (i) if the person filing the return is not allowed by law an extension of time for filing
             596      the return, the day on which the return is due as provided by law; or
             597          (ii) if the person filing the return is allowed by law an extension of time for filing the
             598      return, the earlier of:
             599          (A) the date the person files the return; or
             600          (B) the last day of that extension of time as allowed by law.
             601          (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
             602      return after the due date described in Subsection (2)(a).
             603          (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
             604          (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
             605      tax, fee, or charge:
             606          (A) $20; or
             607          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             608          (ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
             609      fee, or charge, beginning on the activation date for the tax, fee, or charge:
             610          (A) $20; or
             611          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
             612      filed no later than five days after the due date described in Subsection (2)(a);
             613          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
             614      more than five days after the due date but no later than 15 days after the due date described in
             615      Subsection (2)(a); or
             616          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is


             617      filed more than 15 days after the due date described in Subsection (2)(a).
             618          (d) This Subsection (2) does not apply to:
             619          (i) an amended return; or
             620          (ii) a return with no tax due.
             621          (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
             622          (i) the person files a return on or before the due date for filing a return described in
             623      Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
             624      date;
             625          (ii) the person:
             626          (A) is subject to a penalty under Subsection (2)(b); and
             627          (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
             628      due date for filing a return described in Subsection (2)(a);
             629          (iii) (A) the person is subject to a penalty under Subsection (2)(b); and
             630          (B) the commission estimates an amount of tax due for that person in accordance with
             631      Subsection 59-1-1406 (2);
             632          (iv) the person:
             633          (A) is mailed a notice of deficiency; and
             634          (B) within a 30-day period after the day on which the notice of deficiency described in
             635      Subsection (3)(a)(iv)(A) is mailed:
             636          (I) does not file a petition for redetermination or a request for agency action; and
             637          (II) fails to pay the tax, fee, or charge due on a return;
             638          (v) (A) the commission:
             639          (I) issues an order constituting final agency action resulting from a timely filed petition
             640      for redetermination or a timely filed request for agency action; or
             641          (II) is considered to have denied a request for reconsideration under Subsection
             642      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             643      request for agency action; and
             644          (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
             645      after the date the commission:
             646          (I) issues the order constituting final agency action described in Subsection
             647      (3)(a)(v)(A)(I); or


             648          (II) is considered to have denied the request for reconsideration described in
             649      Subsection (3)(a)(v)(A)(II); or
             650          (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
             651      of a final judicial decision resulting from a timely filed petition for judicial review.
             652          (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
             653          (i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             654      respect to an unactivated tax, fee, or charge:
             655          (A) $20; or
             656          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             657          (ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             658      respect to an activated tax, fee, or charge, beginning on the activation date:
             659          (A) $20; or
             660          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
             661      tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
             662      return described in Subsection (2)(a);
             663          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
             664      fee, or charge due on the return is paid more than five days after the due date for filing a return
             665      described in Subsection (2)(a) but no later than 15 days after that due date; or
             666          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
             667      tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
             668      return described in Subsection (2)(a).
             669          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
             670      quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 , there
             671      shall be added a penalty in an amount determined by applying the interest rate provided under
             672      Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
             673      of the underpayment.
             674          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             675      excess of the required installment over the amount, if any, of the installment paid on or before
             676      the due date for the installment.
             677          (ii) The period of the underpayment shall run from the due date for the installment to
             678      whichever of the following dates is the earlier:


             679          (A) the original due date of the tax return, without extensions, for the taxable year; or
             680          (B) with respect to any portion of the underpayment, the date on which that portion is
             681      paid.
             682          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             683      against unpaid required installments in the order in which the installments are required to be
             684      paid.
             685          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             686      person allowed by law an extension of time for filing a corporate franchise or income tax return
             687      under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
             688      under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
             689      Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
             690      including the extension of time, the person fails to pay:
             691          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             692      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b); or
             693          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             694      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             695          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             696      extension of time for filing the return is an amount equal to 2% of the tax due on the return,
             697      unpaid as of the day on which the return is due as provided by law.
             698          (6) If a person does not file a return within an extension of time allowed by Section
             699      59-7-505 or 59-10-516 , the person:
             700          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             701          (b) is subject to a penalty in an amount equal to the sum of:
             702          (i) a late file penalty in an amount equal to the greater of:
             703          (A) $20; or
             704          (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
             705      provided by law, not including the extension of time; and
             706          (ii) a late pay penalty in an amount equal to the greater of:
             707          (A) $20; or
             708          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
             709      due as provided by law, not including the extension of time.


             710          (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
             711      in this Subsection (7)(a).
             712          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
             713      fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
             714      is due to negligence.
             715          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
             716      tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
             717      underpayment.
             718          (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
             719      the penalty is the greater of $500 per period or 50% of the entire underpayment.
             720          (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
             721      charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
             722          (b) If the commission determines that a person is liable for a penalty imposed under
             723      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
             724      penalty.
             725          (i) The notice of proposed penalty shall:
             726          (A) set forth the basis of the assessment; and
             727          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             728          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             729      penalty is proposed may:
             730          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             731      or
             732          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             733          (iii) A person against whom a penalty is proposed in accordance with this Subsection
             734      (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
             735      the commission.
             736          (iv) (A) If the commission determines that a person is liable for a penalty under this
             737      Subsection (7), the commission shall assess the penalty and give notice and demand for
             738      payment.
             739          (B) The commission shall mail the notice and demand for payment described in
             740      Subsection (7)(b)(iv)(A):


             741          (I) to the person's last-known address; and
             742          (II) in accordance with Section 59-1-1404 .
             743          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             744      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             745          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             746      determining that:
             747          (A) the seller meets one or more of the criteria described in Subsection
             748      59-12-107 (1)(a); and
             749          (B) the commission or a county, city, or town may require the seller to collect a tax
             750      under Subsections 59-12-103 (2)(a) through [(d)] (c); or
             751          (ii) the commission issues a final unappealable administrative order determining that:
             752          (A) the seller meets one or more of the criteria described in Subsection
             753      59-12-107 (1)(a); and
             754          (B) the commission or a county, city, or town may require the seller to collect a tax
             755      under Subsections 59-12-103 (2)(a) through [(d)] (c).
             756          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             757      subject to the penalty under Subsection (7)(a)(ii) if:
             758          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             759      determining that:
             760          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             761      and
             762          (II) the commission or a county, city, or town may require the seller to collect a tax
             763      under Subsections 59-12-103 (2)(a) through [(d)] (c); or
             764          (B) the commission issues a final unappealable administrative order determining that:
             765          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             766      and
             767          (II) the commission or a county, city, or town may require the seller to collect a tax
             768      under Subsections 59-12-103 (2)(a) through [(d)] (c); and
             769          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             770      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             771      establishment of new law.


             772          (8) The penalty for failure to file an information return, information report, or a
             773      complete supporting schedule is $50 for each information return, information report, or
             774      supporting schedule up to a maximum of $1,000.
             775          (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
             776      or impede administration of a law relating to a tax, fee, or charge and files a purported return
             777      that fails to contain information from which the correctness of reported tax, fee, or charge
             778      liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
             779      substantially incorrect, the penalty is $500.
             780          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             781      Subsection 59-12-108 (1)(a):
             782          (i) is subject to a penalty described in Subsection (2); and
             783          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             784      allowable under Subsection 59-12-108 (2).
             785          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             786      required by Subsection 59-12-108 (1)(a)(ii)(B):
             787          (i) is subject to a penalty described in Subsection (2); and
             788          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             789      allowable under Subsection 59-12-108 (2).
             790          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
             791          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             792      following documents:
             793          (A) a return;
             794          (B) an affidavit;
             795          (C) a claim; or
             796          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             797          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
             798      will be used in connection with any material matter administered by the commission; and
             799          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             800      with any material matter administered by the commission, would result in an understatement of
             801      another person's liability for a tax, fee, or charge.
             802          (b) The following acts apply to Subsection (11)(a)(i):


             803          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             804          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             805          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             806          (iv) advising in the preparation or presentation of any portion of a document described
             807      in Subsection (11)(a)(i);
             808          (v) aiding in the preparation or presentation of any portion of a document described in
             809      Subsection (11)(a)(i);
             810          (vi) assisting in the preparation or presentation of any portion of a document described
             811      in Subsection (11)(a)(i); or
             812          (vii) counseling in the preparation or presentation of any portion of a document
             813      described in Subsection (11)(a)(i).
             814          (c) For purposes of Subsection (11)(a), the penalty:
             815          (i) shall be imposed by the commission;
             816          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             817      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             818          (iii) is in addition to any other penalty provided by law.
             819          (d) The commission may seek a court order to enjoin a person from engaging in
             820      conduct that is subject to a penalty under this Subsection (11).
             821          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             822      commission may make rules prescribing the documents that are similar to Subsections
             823      (11)(a)(i)(A) through (C).
             824          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             825      provided in Subsections (12)(b) through (e).
             826          (b) (i) A person who is required by this title or any laws the commission administers or
             827      regulates to register with or obtain a license or permit from the commission, who operates
             828      without having registered or secured a license or permit, or who operates when the registration,
             829      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             830          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             831      penalty may not:
             832          (A) be less than $500; or
             833          (B) exceed $1,000.


             834          (c) (i) A person who, with intent to evade a tax, fee, or charge or requirement of this
             835      title or any lawful requirement of the commission, fails to make, render, sign, or verify a return
             836      or to supply information within the time required by law, or who makes, renders, signs, or
             837      verifies a false or fraudulent return or statement, or who supplies false or fraudulent
             838      information, is guilty of a third degree felony.
             839          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             840      penalty may not:
             841          (A) be less than $1,000; or
             842          (B) exceed $5,000.
             843          (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
             844      charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
             845      guilty of a second degree felony.
             846          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             847      penalty may not:
             848          (A) be less than $1,500; or
             849          (B) exceed $25,000.
             850          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             851          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             852      documents:
             853          (I) a return;
             854          (II) an affidavit;
             855          (III) a claim; or
             856          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             857          (B) subject to Subsection (12)(e)(iii), with knowledge that [the] a document described
             858      in Subsection (12)(e)(i)(A):
             859          (I) is false or fraudulent as to any material matter; and
             860          (II) could be used in connection with any material matter administered by the
             861      commission.
             862          (ii) The following acts apply to Subsection (12)(e)(i):
             863          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             864          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);


             865          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             866          (D) advising in the preparation or presentation of any portion of a document described
             867      in Subsection (12)(e)(i)(A);
             868          (E) aiding in the preparation or presentation of any portion of a document described in
             869      Subsection (12)(e)(i)(A);
             870          (F) assisting in the preparation or presentation of any portion of a document described
             871      in Subsection (12)(e)(i)(A); or
             872          (G) counseling in the preparation or presentation of any portion of a document
             873      described in Subsection (12)(e)(i)(A).
             874          (iii) This Subsection (12)(e) applies:
             875          (A) regardless of whether the person for which the document described in Subsection
             876      (12)(e)(i)(A) is prepared or presented:
             877          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             878          (II) consented to the falsity of [the] a document described in Subsection (12)(e)(i)(A);
             879      and
             880          (B) in addition to any other penalty provided by law.
             881          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             882      penalty may not:
             883          (A) be less than $1,500; or
             884          (B) exceed $25,000.
             885          (v) The commission may seek a court order to enjoin a person from engaging in
             886      conduct that is subject to a penalty under this Subsection (12)(e).
             887          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             888      the commission may make rules prescribing the documents that are similar to Subsections
             889      (12)(e)(i)(A)(I) through (III).
             890          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             891      the later of six years:
             892          (i) from the date the tax should have been remitted; or
             893          (ii) after the day on which the person commits the criminal offense.
             894          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             895      commission may waive, reduce, or compromise any of the penalties or interest imposed under


             896      this part.
             897          Section 12. Section 59-2-404 is amended to read:
             898           59-2-404. Uniform fee on aircraft -- Collection of fee by commission --
             899      Distribution of fees.
             900          (1) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
             901      beginning on January 1, 2009, an aircraft, required to be registered with the state is:
             902          (a) exempt from the tax imposed by Section 59-2-103 ; and
             903          (b) in lieu of the tax imposed by Section 59-2-103 , subject to a uniform statewide fee
             904      of $25.
             905          (2) (a) The uniform fee shall be collected by the commission with the registration fee
             906      and distributed to the county in which the aircraft is based, in accordance with Subsection (3).
             907          (b) A based aircraft is an aircraft which is hangared, tied down, or parked at the airport
             908      for a plurality of the year.
             909          (3) (a) [The] Forty-five percent of the uniform fees received by a county under
             910      Subsection (2) shall be distributed to each taxing entity within the county that is not a school
             911      district in the same proportion in which revenues collected from the ad valorem property tax
             912      are distributed.
             913          (b) Each taxing entity described in Subsection (3)(a) that receives revenues from the
             914      uniform fee imposed by this section shall distribute the revenues in the same proportion in
             915      which revenues collected from the ad valorem property tax are distributed.
             916          (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
             917      be distributed by the county to each school district within the county in proportion to the school
             918      district's percentage of the total current year enrollment in all of the school districts within the
             919      county, as of October 1 enrollment counts.
             920          (4) The commission shall promulgate rules to implement this section.
             921          Section 13. Section 59-2-405 is amended to read:
             922           59-2-405. Uniform fee on tangible personal property required to be registered
             923      with the state -- Distribution of revenues -- Appeals.
             924          (1) The property described in Subsection (2), except Subsection (2)(b)(ii), is exempt
             925      from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section 2,
             926      Subsection (6).


             927          (2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
             928      statewide uniform fee in lieu of the ad valorem tax on:
             929          (i) motor vehicles required to be registered with the state that weigh 12,001 pounds or
             930      more;
             931          (ii) motorcycles as defined in Section 41-1a-102 that are required to be registered with
             932      the state;
             933          (iii) watercraft required to be registered with the state;
             934          (iv) recreational vehicles required to be registered with the state; and
             935          (v) all other tangible personal property required to be registered with the state before it
             936      is used on a public highway, on a public waterway, on public land, or in the air.
             937          (b) The following tangible personal property is exempt from the statewide uniform fee
             938      imposed by this section:
             939          (i) aircraft;
             940          (ii) state-assessed commercial vehicles;
             941          (iii) tangible personal property subject to a uniform fee imposed by:
             942          (A) Section 59-2-405.1 ;
             943          (B) Section 59-2-405.2 ; or
             944          (C) Section 59-2-405.3 ; and
             945          (iv) personal property that is exempt from state or county ad valorem property taxes
             946      under the laws of this state or of the federal government.
             947          (3) Beginning on January 1, 1999, the uniform fee is 1.5% of the fair market value of
             948      the personal property, as established by the commission.
             949          (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is
             950      brought into the state and is required to be registered in Utah shall, as a condition of
             951      registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by
             952      the state of origin have been paid for the current calendar year.
             953          (5) (a) [The] Forty-five percent of the revenues collected in each county from the
             954      uniform fee shall be distributed by the county to each taxing entity that is not a school district
             955      in which the property described in Subsection (2) is located in the same proportion in which
             956      revenue collected from ad valorem real property tax is distributed.
             957          (b) [Each] A taxing entity shall distribute the revenues received under Subsection


             958      (5)(a) in the same proportion in which revenue collected from ad valorem real property tax is
             959      distributed.
             960          (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
             961      be distributed by the county to each school district within the county in proportion to the school
             962      district's percentage of the total current year enrollment in all of the school districts within the
             963      county, as of October 1 enrollment counts.
             964          (6) An appeal relating to the uniform fee imposed on the tangible personal property
             965      described in Subsection (2) shall be filed pursuant to Section 59-2-1005 .
             966          Section 14. Section 59-2-405.1 is amended to read:
             967           59-2-405.1. Uniform fee on certain vehicles weighing 12,000 pounds or less --
             968      Distribution of revenues -- Appeals.
             969          (1) The property described in Subsection (2) is exempt from ad valorem property taxes
             970      pursuant to Utah Constitution Article XIII, Section 2, Subsection (6).
             971          (2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
             972      statewide uniform fee in lieu of the ad valorem tax on:
             973          (i) motor vehicles as defined in Section 41-1a-102 that:
             974          (A) are required to be registered with the state; and
             975          (B) weigh 12,000 pounds or less; and
             976          (ii) state-assessed commercial vehicles required to be registered with the state that
             977      weigh 12,000 pounds or less.
             978          (b) The following tangible personal property is exempt from the statewide uniform fee
             979      imposed by this section:
             980          (i) aircraft;
             981          (ii) tangible personal property subject to a uniform fee imposed by:
             982          (A) Section 59-2-405 ;
             983          (B) Section 59-2-405.2 ; or
             984          (C) Section 59-2-405.3 ; and
             985          (iii) tangible personal property that is exempt from state or county ad valorem property
             986      taxes under the laws of this state or of the federal government.
             987          (3) (a) Except as provided in Subsections (3)(b) and (c), beginning on January 1, 1999,
             988      the uniform fee for purposes of this section is as follows:


             989      Age of Vehicle Uniform Fee
             990      12 or more years $10
             991      9 or more years but less than 12 years $50
             992      6 or more years but less than 9 years $80
             993      3 or more years but less than 6 years $110
             994      Less than 3 years $150
             995          (b) For registrations under Section 41-1a-215.5 , beginning on January 1, 2007, the
             996      uniform fee for purposes of this section is as follows:
             997      Age of Vehicle Uniform Fee
             998      12 or more years $5
             999      9 or more years but less than 12 years $25
             1000      6 or more years but less than 9 years $40
             1001      3 or more years but less than 6 years $55
             1002      Less than 3 years $75
             1003          (c) Notwithstanding Subsections (3)(a) and (b), beginning on September 1, 2001, for a
             1004      motor vehicle issued a temporary sports event registration certificate in accordance with
             1005      Section 41-3-306 , the uniform fee for purposes of this section is $5 for the event period
             1006      specified on the temporary sports event registration certificate regardless of the age of the
             1007      motor vehicle.
             1008          (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is
             1009      brought into the state and is required to be registered in Utah shall, as a condition of
             1010      registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by
             1011      the state of origin have been paid for the current calendar year.
             1012          (5) (a) [The] Forty-five percent of the revenues collected in each county from the
             1013      uniform fee shall be distributed by the county to each taxing entity that is not a school district
             1014      in which the property described in Subsection (2) is located in the same proportion in which
             1015      revenue collected from ad valorem real property tax is distributed.
             1016          (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
             1017      the same proportion in which revenue collected from ad valorem real property tax is


             1018      distributed.
             1019          (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
             1020      be distributed by the county to each school district within the county in proportion to the school
             1021      district's percentage of the total current year enrollment in all of the school districts within the
             1022      county, as of October 1 enrollment counts.
             1023          Section 15. Section 59-2-405.2 is amended to read:
             1024           59-2-405.2. Definitions -- Uniform statewide fee on certain tangible personal
             1025      property -- Distribution of revenues -- Rulemaking authority -- Determining the length of
             1026      a vessel.
             1027          (1) As used in this section:
             1028          (a) (i) Except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor
             1029      vehicle that:
             1030          (A) is an:
             1031          (I) all-terrain type I vehicle as defined in Section 41-22-2 ; or
             1032          (II) all-terrain type II vehicle as defined in Section 41-22-2 ;
             1033          (B) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
             1034      Vehicles; and
             1035          (C) has:
             1036          (I) an engine with more than 150 cubic centimeters displacement;
             1037          (II) a motor that produces more than five horsepower; or
             1038          (III) an electric motor; and
             1039          (ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a
             1040      snowmobile.
             1041          (b) "Camper" means a camper:
             1042          (i) as defined in Section 41-1a-102 ; and
             1043          (ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             1044      Registration.
             1045          (c) (i) "Canoe" means a vessel that:
             1046          (A) is long and narrow;
             1047          (B) has curved sides; and
             1048          (C) is tapered:


             1049          (I) to two pointed ends; or
             1050          (II) to one pointed end and is blunt on the other end; and
             1051          (ii) "canoe" includes:
             1052          (A) a collapsible inflatable canoe;
             1053          (B) a kayak;
             1054          (C) a racing shell;
             1055          (D) a rowing scull; or
             1056          (E) notwithstanding the definition of vessel in Subsection (1)(aa), a canoe with an
             1057      outboard motor.
             1058          (d) "Dealer" is as defined in Section 41-1a-102 .
             1059          (e) "Jon boat" means a vessel that:
             1060          (i) has a square bow; and
             1061          (ii) has a flat bottom.
             1062          (f) "Motor vehicle" is as defined in Section 41-22-2 .
             1063          (g) "Other motorcycle" means a motor vehicle that:
             1064          (i) is:
             1065          (A) a motorcycle as defined in Section 41-1a-102 ; and
             1066          (B) designed primarily for use and operation over unimproved terrain;
             1067          (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             1068      Registration; and
             1069          (iii) has:
             1070          (A) an engine with more than 150 cubic centimeters displacement; or
             1071          (B) a motor that produces more than five horsepower.
             1072          (h) (i) "Other trailer" means a portable vehicle without motive power that is primarily
             1073      used:
             1074          (A) to transport tangible personal property; and
             1075          (B) for a purpose other than a commercial purpose; and
             1076          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             1077      purposes of Subsection (1)(h)(i)(B), the commission may by rule define what constitutes a
             1078      purpose other than a commercial purpose.
             1079          (i) "Outboard motor" is as defined in Section 41-1a-102 .


             1080          (j) "Personal watercraft" means a personal watercraft:
             1081          (i) as defined in Section 73-18-2 ; and
             1082          (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
             1083      Boating Act.
             1084          (k) (i) "Pontoon" means a vessel that:
             1085          (A) is:
             1086          (I) supported by one or more floats; and
             1087          (II) propelled by either inboard or outboard power; and
             1088          (B) is not:
             1089          (I) a houseboat; or
             1090          (II) a collapsible inflatable vessel; and
             1091          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1092      commission may by rule define the term "houseboat."
             1093          (l) "Qualifying adjustment, exemption, or reduction" means an adjustment, exemption,
             1094      or reduction:
             1095          (i) of all or a portion of a qualifying payment;
             1096          (ii) granted by a county during the refund period; and
             1097          (iii) received by a qualifying person.
             1098          (m) (i) "Qualifying payment" means the payment made:
             1099          (A) of a uniform statewide fee in accordance with this section:
             1100          (I) by a qualifying person;
             1101          (II) to a county; and
             1102          (III) during the refund period; and
             1103          (B) on an item of qualifying tangible personal property; and
             1104          (ii) if a qualifying person received a qualifying adjustment, exemption, or reduction for
             1105      an item of qualifying tangible personal property, the qualifying payment for that qualifying
             1106      tangible personal property is equal to the difference between:
             1107          (A) the payment described in this Subsection (1)(m) for that item of qualifying tangible
             1108      personal property; and
             1109          (B) the amount of the qualifying adjustment, exemption, or reduction.
             1110          (n) "Qualifying person" means a person that paid a uniform statewide fee:


             1111          (i) during the refund period;
             1112          (ii) in accordance with this section; and
             1113          (iii) on an item of qualifying tangible personal property.
             1114          (o) "Qualifying tangible personal property" means a:
             1115          (i) qualifying vehicle; or
             1116          (ii) qualifying watercraft.
             1117          (p) "Qualifying vehicle" means:
             1118          (i) an all-terrain vehicle with an engine displacement that is 100 or more cubic
             1119      centimeters but 150 or less cubic centimeters;
             1120          (ii) an other motorcycle with an engine displacement that is 100 or more cubic
             1121      centimeters but 150 or less cubic centimeters;
             1122          (iii) a small motor vehicle with an engine displacement that is 100 or more cubic
             1123      centimeters but 150 or less cubic centimeters;
             1124          (iv) a snowmobile with an engine displacement that is 100 or more cubic centimeters
             1125      but 150 or less cubic centimeters; or
             1126          (v) a street motorcycle with an engine displacement that is 100 or more cubic
             1127      centimeters but 150 or less cubic centimeters.
             1128          (q) "Qualifying watercraft" means a:
             1129          (i) canoe;
             1130          (ii) collapsible inflatable vessel;
             1131          (iii) jon boat;
             1132          (iv) pontoon;
             1133          (v) sailboat; or
             1134          (vi) utility boat.
             1135          (r) "Refund period" means the time period:
             1136          (i) beginning on January 1, 2006; and
             1137          (ii) ending on December 29, 2006.
             1138          (s) "Sailboat" means a sailboat as defined in Section 73-18-2 .
             1139          (t) (i) "Small motor vehicle" means a motor vehicle that:
             1140          (A) is required to be registered in accordance with Title 41, Motor Vehicles; and
             1141          (B) has:


             1142          (I) an engine with 150 or less cubic centimeters displacement; or
             1143          (II) a motor that produces five or less horsepower; and
             1144          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1145      commission may by rule develop a process for an owner of a motor vehicle to certify whether
             1146      the motor vehicle has:
             1147          (A) an engine with 150 or less cubic centimeters displacement; or
             1148          (B) a motor that produces five or less horsepower.
             1149          (u) "Snowmobile" means a motor vehicle that:
             1150          (i) is a snowmobile as defined in Section 41-22-2 ;
             1151          (ii) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
             1152      Vehicles; and
             1153          (iii) has:
             1154          (A) an engine with more than 150 cubic centimeters displacement; or
             1155          (B) a motor that produces more than five horsepower.
             1156          (v) "Street motorcycle" means a motor vehicle that:
             1157          (i) is:
             1158          (A) a motorcycle as defined in Section 41-1a-102 ; and
             1159          (B) designed primarily for use and operation on highways;
             1160          (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             1161      Registration; and
             1162          (iii) has:
             1163          (A) an engine with more than 150 cubic centimeters displacement; or
             1164          (B) a motor that produces more than five horsepower.
             1165          (w) "Tangible personal property owner" means a person that owns an item of
             1166      qualifying tangible personal property.
             1167          (x) "Tent trailer" means a portable vehicle without motive power that:
             1168          (i) is constructed with collapsible side walls that:
             1169          (A) fold for towing by a motor vehicle; and
             1170          (B) unfold at a campsite;
             1171          (ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
             1172          (iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,


             1173      Registration; and
             1174          (iv) does not require a special highway movement permit when drawn by a
             1175      self-propelled motor vehicle.
             1176          (y) (i) Except as provided in Subsection (1)(y)(ii), "travel trailer" means a travel trailer:
             1177          (A) as defined in Section 41-1a-102 ; and
             1178          (B) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             1179      Registration; and
             1180          (ii) notwithstanding Subsection (1)(y)(i), "travel trailer" does not include:
             1181          (A) a camper; or
             1182          (B) a tent trailer.
             1183          (z) (i) "Utility boat" means a vessel that:
             1184          (A) has:
             1185          (I) two or three bench seating;
             1186          (II) an outboard motor; and
             1187          (III) a hull made of aluminum, fiberglass, or wood; and
             1188          (B) does not have:
             1189          (I) decking;
             1190          (II) a permanent canopy; or
             1191          (III) a floor other than the hull; and
             1192          (ii) notwithstanding Subsection (1)(z)(i), "utility boat" does not include a collapsible
             1193      inflatable vessel.
             1194          (aa) "Vessel" means a vessel:
             1195          (i) as defined in Section 73-18-2 , including an outboard motor of the vessel; and
             1196          (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
             1197      Boating Act.
             1198          (2) (a) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
             1199      beginning on January 1, 2006, the tangible personal property described in Subsection (2)(b) is:
             1200          (i) exempt from the tax imposed by Section 59-2-103 ; and
             1201          (ii) in lieu of the tax imposed by Section 59-2-103 , subject to uniform statewide fees as
             1202      provided in this section.
             1203          (b) The following tangible personal property applies to Subsection (2)(a) if that


             1204      tangible personal property is required to be registered with the state:
             1205          (i) an all-terrain vehicle;
             1206          (ii) a camper;
             1207          (iii) an other motorcycle;
             1208          (iv) an other trailer;
             1209          (v) a personal watercraft;
             1210          (vi) a small motor vehicle;
             1211          (vii) a snowmobile;
             1212          (viii) a street motorcycle;
             1213          (ix) a tent trailer;
             1214          (x) a travel trailer; and
             1215          (xi) a vessel if that vessel is less than 31 feet in length as determined under Subsection
             1216      (6).
             1217          (3) For purposes of this section, the uniform statewide fees are:
             1218          (a) for an all-terrain vehicle, an other motorcycle, or a snowmobile:
             1219      Age of All-Terrain Vehicle, Other Motorcycle, or Snowmobile Uniform Statewide Fee
             1220      12 or more years $10
             1221      9 or more years but less than 12 years $20
             1222      6 or more years but less than 9 years $30
             1223      3 or more years but less than 6 years $35
             1224      Less than 3 years $45
             1225          (b) for a camper or a tent trailer:
             1226      Age of Camper or Tent Trailer Uniform Statewide Fee
             1227      12 or more years $10
             1228      9 or more years but less than 12 years $25
             1229      6 or more years but less than 9 years $35
             1230      3 or more years but less than 6 years $50
             1231      Less than 3 years $70
             1232          (c) for an other trailer:


             1233      Age of Other Trailer Uniform Statewide Fee
             1234      12 or more years $10
             1235      9 or more years but less than 12 years $15
             1236      6 or more years but less than 9 years $20
             1237      3 or more years but less than 6 years $25
             1238      Less than 3 years $30
             1239          (d) for a personal watercraft:
             1240      Age of Personal Watercraft Uniform Statewide Fee
             1241      12 or more years $10
             1242      9 or more years but less than 12 years $25
             1243      6 or more years but less than 9 years $35
             1244      3 or more years but less than 6 years $45
             1245      Less than 3 years $55
             1246          (e) for a small motor vehicle:
             1247      Age of Small Motor Vehicle Uniform Statewide Fee
             1248      6 or more years $10
             1249      3 or more years but less than 6 years $15
             1250      Less than 3 years $25
             1251          (f) for a street motorcycle:
             1252      Age of Street Motorcycle Uniform Statewide Fee
             1253      12 or more years $10
             1254      9 or more years but less than 12 years $35
             1255      6 or more years but less than 9 years $50
             1256      3 or more years but less than 6 years $70
             1257      Less than 3 years $95
             1258          (g) for a travel trailer:
             1259      Age of Travel Trailer Uniform Statewide Fee
             1260      12 or more years $20
             1261      9 or more years but less than 12 years $65
             1262      6 or more years but less than 9 years $90
             1263      3 or more years but less than 6 years $135
             1264      Less than 3 years $175
             1265          (h) $10 regardless of the age of the vessel if the vessel is:
             1266          (i) less than 15 feet in length;
             1267          (ii) a canoe;
             1268          (iii) a jon boat; or
             1269          (iv) a utility boat;
             1270          (i) for a collapsible inflatable vessel, pontoon, or sailboat, regardless of age:
             1271      Length of Vessel Uniform Statewide Fee
             1272      15 feet or more in length but less than 19 feet in length $15
             1273      19 feet or more in length but less than 23 feet in length $25
             1274      23 feet or more in length but less than 27 feet in length $40
             1275      27 feet or more in length but less than 31 feet in length $75
             1276          (j) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             1277      sailboat, or utility boat, that is 15 feet or more in length but less than 19 feet in length:
             1278      Age of Vessel Uniform Statewide Fee
             1279      12 or more years $25
             1280      9 or more years but less than 12 years $65
             1281      6 or more years but less than 9 years $80
             1282      3 or more years but less than 6 years $110
             1283      Less than 3 years $150
             1284          (k) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             1285      sailboat, or utility boat, that is 19 feet or more in length but less than 23 feet in length:
             1286      Age of Vessel Uniform Statewide Fee
             1287      12 or more years $50
             1288      9 or more years but less than 12 years $120
             1289      6 or more years but less than 9 years $175
             1290      3 or more years but less than 6 years $220
             1291      Less than 3 years $275
             1292          (l) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             1293      sailboat, or utility boat, that is 23 feet or more in length but less than 27 feet in length:
             1294      Age of Vessel Uniform Statewide Fee
             1295      12 or more years $100
             1296      9 or more years but less than 12 years $180
             1297      6 or more years but less than 9 years $240
             1298      3 or more years but less than 6 years $310
             1299      Less than 3 years $400
             1300          (m) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             1301      sailboat, or utility boat, that is 27 feet or more in length but less than 31 feet in length:
             1302      Age of Vessel Uniform Statewide Fee
             1303      12 or more years $120
             1304      9 or more years but less than 12 years $250
             1305      6 or more years but less than 9 years $350
             1306      3 or more years but less than 6 years $500
             1307      Less than 3 years $700
             1308          (4) Notwithstanding Section 59-2-407 , tangible personal property subject to the
             1309      uniform statewide fees imposed by this section that is brought into the state shall, as a
             1310      condition of registration, be subject to the uniform statewide fees unless all property taxes or
             1311      uniform fees imposed by the state of origin have been paid for the current calendar year.
             1312          (5) (a) [The] Forty-five percent of the revenues collected in [each] a county from the
             1313      uniform statewide fees imposed by this section shall be distributed by the county to each taxing
             1314      entity that is not a school district in which each item of tangible personal property subject to the
             1315      uniform statewide fees is located in the same proportion in which revenues collected from the
             1316      ad valorem property tax are distributed.


             1317          (b) Each taxing entity described in Subsection (5)(a) that receives revenues from the
             1318      uniform statewide fees imposed by this section shall distribute the revenues in the same
             1319      proportion in which revenues collected from the ad valorem property tax are distributed.
             1320          (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
             1321      be distributed by the county to each school district within the county in proportion to the school
             1322      district's percentage of the total current year enrollment in all of the school districts within the
             1323      county, as of October 1 enrollment counts.
             1324          (6) (a) For purposes of the uniform statewide fee imposed by this section, the length of
             1325      a vessel shall be determined as provided in this Subsection (6).
             1326          (b) (i) Except as provided in Subsection (6)(b)(ii), the length of a vessel shall be
             1327      measured as follows:
             1328          (A) the length of a vessel shall be measured in a straight line; and
             1329          (B) the length of a vessel is equal to the distance between the bow of the vessel and the
             1330      stern of the vessel.
             1331          (ii) Notwithstanding Subsection (6)(b)(i), the length of a vessel may not include the
             1332      length of:
             1333          (A) a swim deck;
             1334          (B) a ladder;
             1335          (C) an outboard motor; or
             1336          (D) an appurtenance or attachment similar to Subsections (6)(b)(ii)(A) through (C) as
             1337      determined by the commission by rule.
             1338          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1339      the commission may by rule define what constitutes an appurtenance or attachment similar to
             1340      Subsections (6)(b)(ii)(A) through (C).
             1341          (c) The length of a vessel:
             1342          (i) (A) for a new vessel, is the length:
             1343          (I) listed on the manufacturer's statement of origin if the length of the vessel measured
             1344      under Subsection (6)(b) is equal to the length of the vessel listed on the manufacturer's
             1345      statement of origin; or
             1346          (II) listed on a form submitted to the commission by a dealer in accordance with
             1347      Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b) is not equal to


             1348      the length of the vessel listed on the manufacturer's statement of origin; or
             1349          (B) for a vessel other than a new vessel, is the length:
             1350          (I) corresponding to the model number if the length of the vessel measured under
             1351      Subsection (6)(b) is equal to the length of the vessel determined by reference to the model
             1352      number; or
             1353          (II) listed on a form submitted to the commission by an owner of the vessel in
             1354      accordance with Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b)
             1355      is not equal to the length of the vessel determined by reference to the model number; and
             1356          (ii) (A) is determined at the time of the:
             1357          (I) first registration as defined in Section 41-1a-102 that occurs on or after January 1,
             1358      2006; or
             1359          (II) first renewal of registration that occurs on or after January 1, 2006; and
             1360          (B) may be determined after the time described in Subsection (6)(c)(ii)(A) only if the
             1361      commission requests that a dealer or an owner submit a form to the commission in accordance
             1362      with Subsection (6)(d).
             1363          (d) (i) A form under Subsection (6)(c) shall:
             1364          (A) be developed by the commission;
             1365          (B) be provided by the commission to:
             1366          (I) a dealer; or
             1367          (II) an owner of a vessel;
             1368          (C) provide for the reporting of the length of a vessel;
             1369          (D) be submitted to the commission at the time the length of the vessel is determined in
             1370      accordance with Subsection (6)(c)(ii);
             1371          (E) be signed by:
             1372          (I) if the form is submitted by a dealer, that dealer; or
             1373          (II) if the form is submitted by an owner of the vessel, an owner of the vessel; and
             1374          (F) include a certification that the information set forth in the form is true.
             1375          (ii) A certification made under Subsection (6)(d)(i)(F) is considered as if made under
             1376      oath and subject to the same penalties as provided by law for perjury.
             1377          (iii) (A) A dealer or an owner that submits a form to the commission under Subsection
             1378      (6)(c) is considered to have given the dealer's or owner's consent to an audit or review by:


             1379          (I) the commission;
             1380          (II) the county assessor; or
             1381          (III) the commission and the county assessor.
             1382          (B) The consent described in Subsection (6)(d)(iii)(A) is a condition to the acceptance
             1383      of any form.
             1384          (7) (a) A county that collected a qualifying payment from a qualifying person during
             1385      the refund period shall issue a refund to the qualifying person as described in Subsection (7)(b)
             1386      if:
             1387          (i) the difference described in Subsection (7)(b) is $1 or more; and
             1388          (ii) the qualifying person submitted a form in accordance with Subsections (7)(c) and
             1389      (d).
             1390          (b) The refund amount shall be calculated as follows:
             1391          (i) for a qualifying vehicle, the refund amount is equal to the difference between:
             1392          (A) the qualifying payment the qualifying person paid on the qualifying vehicle during
             1393      the refund period; and
             1394          (B) the amount of the statewide uniform fee:
             1395          (I) for that qualifying vehicle; and
             1396          (II) that the qualifying person would have been required to pay:
             1397          (Aa) during the refund period; and
             1398          (Bb) in accordance with this section had Laws of Utah 2006, Fifth Special Session,
             1399      Chapter 3, Section 1, been in effect during the refund period; and
             1400          (ii) for a qualifying watercraft, the refund amount is equal to the difference between:
             1401          (A) the qualifying payment the qualifying person paid on the qualifying watercraft
             1402      during the refund period; and
             1403          (B) the amount of the statewide uniform fee:
             1404          (I) for that qualifying watercraft;
             1405          (II) that the qualifying person would have been required to pay:
             1406          (Aa) during the refund period; and
             1407          (Bb) in accordance with this section had Laws of Utah 2006, Fifth Special Session,
             1408      Chapter 3, Section 1, been in effect during the refund period.
             1409          (c) Before the county issues a refund to the qualifying person in accordance with


             1410      Subsection (7)(a) the qualifying person shall submit a form to the county to verify the
             1411      qualifying person is entitled to the refund.
             1412          (d) (i) A form under Subsection (7)(c) or (8) shall:
             1413          (A) be developed by the commission;
             1414          (B) be provided by the commission to the counties;
             1415          (C) be provided by the county to the qualifying person or tangible personal property
             1416      owner;
             1417          (D) provide for the reporting of the following:
             1418          (I) for a qualifying vehicle:
             1419          (Aa) the type of qualifying vehicle; and
             1420          (Bb) the amount of cubic centimeters displacement;
             1421          (II) for a qualifying watercraft:
             1422          (Aa) the length of the qualifying watercraft;
             1423          (Bb) the age of the qualifying watercraft; and
             1424          (Cc) the type of qualifying watercraft;
             1425          (E) be signed by the qualifying person or tangible personal property owner; and
             1426          (F) include a certification that the information set forth in the form is true.
             1427          (ii) A certification made under Subsection (7)(d)(i)(F) is considered as if made under
             1428      oath and subject to the same penalties as provided by law for perjury.
             1429          (iii) (A) A qualifying person or tangible personal property owner that submits a form to
             1430      a county under Subsection (7)(c) or (8) is considered to have given the qualifying person's
             1431      consent to an audit or review by:
             1432          (I) the commission;
             1433          (II) the county assessor; or
             1434          (III) the commission and the county assessor.
             1435          (B) The consent described in Subsection (7)(d)(iii)(A) is a condition to the acceptance
             1436      of any form.
             1437          (e) The county shall make changes to the commission's records with the information
             1438      received by the county from the form submitted in accordance with Subsection (7)(c).
             1439          (8) A county shall change its records regarding an item of qualifying tangible personal
             1440      property if the tangible personal property owner submits a form to the county in accordance


             1441      with Subsection (7)(d).
             1442          (9) (a) For purposes of this Subsection (9) "owner of tangible personal property" means
             1443      a person that was required to pay a uniform statewide fee:
             1444          (i) during the refund period;
             1445          (ii) in accordance with this section; and
             1446          (iii) on an item of tangible personal property subject to the uniform statewide fees
             1447      imposed by this section.
             1448          (b) A county that collected revenues from uniform statewide fees imposed by this
             1449      section during the refund period shall notify an owner of tangible personal property:
             1450          (i) of the tangible personal property classification changes made to this section
             1451      pursuant to Laws of Utah 2006, Fifth Special Session, Chapter 3, Section 1;
             1452          (ii) that the owner of tangible personal property may obtain and file a form to modify
             1453      the county's records regarding the owner's tangible personal property; and
             1454          (iii) that the owner may be entitled to a refund pursuant to Subsection (7).
             1455          Section 16. Section 59-2-405.3 is amended to read:
             1456           59-2-405.3. Uniform statewide fee on motor homes -- Distribution of revenues.
             1457          (1) For purposes of this section, "motor home" means:
             1458          (a) a motor home, as defined in Section 13-14-102 , that is required to be registered
             1459      with the state; or
             1460          (b) a self-propelled vehicle that is:
             1461          (i) modified for primary use as a temporary dwelling for travel, recreational, or
             1462      vacation use; and
             1463          (ii) required to be registered with the state.
             1464          (2) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
             1465      beginning on January 1, 2006, a motor home is:
             1466          (a) exempt from the tax imposed by Section 59-2-103 ; and
             1467          (b) in lieu of the tax imposed by Section 59-2-103 , subject to a uniform statewide fee
             1468      as provided in Subsection (3).
             1469          (3) The uniform statewide fee described in Subsection (2)(b) is:
             1470          (a) beginning on January 1, 2006, and ending December 31, 2007, 1.25% of the fair
             1471      market value of the motor home, as established by the commission; and


             1472          (b) beginning on January 1, 2008, 1% of the fair market value of the motor home, as
             1473      established by the commission.
             1474          (4) Notwithstanding Section 59-2-407 , a motor home subject to the uniform statewide
             1475      fee imposed by this section that is brought into the state shall, as a condition of registration, be
             1476      subject to the uniform statewide fee unless all property taxes or uniform fees imposed by the
             1477      state of origin have been paid for the current calendar year.
             1478          (5) (a) Each county shall distribute 45% of the revenue collected by the county from
             1479      the uniform statewide fee imposed by this section to each taxing entity that is not a school
             1480      district in which each motor home subject to the uniform statewide fee is located in the same
             1481      proportion in which revenue collected from the ad valorem property tax is distributed.
             1482          (b) Each taxing entity described in Subsection (5)(a) that receives revenue from the
             1483      uniform statewide fee imposed by this section shall distribute the revenue in the same
             1484      proportion in which revenue collected from the ad valorem property tax is distributed.
             1485          (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
             1486      be distributed by the county to each school district within the county in proportion to the school
             1487      district's percentage of the total current year enrollment in all of the school districts within the
             1488      county, as of October 1 enrollment counts.
             1489          (6) An appeal relating to the uniform statewide fee imposed on a motor home by this
             1490      section shall be filed pursuant to Section 59-2-1005 .
             1491          Section 17. Section 59-2-919.3 is enacted to read:
             1492          59-2-919.3. Limitation on property tax -- Bond issuance.
             1493          (1) For the taxable year beginning on January 1, 2012 and ending on December 31,
             1494      2012, a taxing entity may not levy a tax rate that exceeds its certified tax rate calculated in
             1495      accordance with Sections 59-2-924 and 59-2-924.5 .
             1496          (2) Subsection (1) may not be construed to limit the ability of a taxing entity to:
             1497          (a) submit a bond proposal to voters in accordance with applicable law; or
             1498          (b) issue general obligation bonds previously approved by the taxing entity's voters.
             1499          Section 18. Section 59-2-924.5 is enacted to read:
             1500          59-2-924.5. Reduction of certified tax rate for school districts based on school
             1501      equalization allocation.
             1502          For the 2012 tax year, the certified tax rate of each school district shall be decreased by


             1503      the amount necessary to reduce revenues for that school district by the projected amount of the
             1504      allocation that the State Board of Education will make to that school district under Section
             1505      53A-21-603 for fiscal year 2012-13.
             1506          Section 19. Section 59-12-102 is amended to read:
             1507           59-12-102. Definitions.
             1508          As used in this chapter:
             1509          (1) "800 service" means a telecommunications service that:
             1510          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1511          (b) is typically marketed:
             1512          (i) under the name 800 toll-free calling;
             1513          (ii) under the name 855 toll-free calling;
             1514          (iii) under the name 866 toll-free calling;
             1515          (iv) under the name 877 toll-free calling;
             1516          (v) under the name 888 toll-free calling; or
             1517          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1518      Federal Communications Commission.
             1519          (2) (a) "900 service" means an inbound toll telecommunications service that:
             1520          (i) a subscriber purchases;
             1521          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1522      the subscriber's:
             1523          (A) prerecorded announcement; or
             1524          (B) live service; and
             1525          (iii) is typically marketed:
             1526          (A) under the name 900 service; or
             1527          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1528      Communications Commission.
             1529          (b) "900 service" does not include a charge for:
             1530          (i) a collection service a seller of a telecommunications service provides to a
             1531      subscriber; or
             1532          (ii) the following a subscriber sells to the subscriber's customer:
             1533          (A) a product; or


             1534          (B) a service.
             1535          (3) (a) "Admission or user fees" includes season passes.
             1536          (b) "Admission or user fees" does not include annual membership dues to private
             1537      organizations.
             1538          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1539      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1540      Agreement after November 12, 2002.
             1541          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1542          (a) listed under Subsection (6); and
             1543          (b) that are imposed within a local taxing jurisdiction.
             1544          (6) "Agreement sales and use tax" means a tax imposed under:
             1545          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1546          (b) Subsection 59-12-103 (2)(b)(i);
             1547          [(c) Subsection 59-12-103 (2)(c)(i);]
             1548          [(d) Subsection 59-12-103 (2)(d)(i)(A)(I);]
             1549          [(e)] (c) Section 59-12-204 ;
             1550          [(f)] (d) Section 59-12-401 ;
             1551          [(g)] (e) Section 59-12-402 ;
             1552          [(h)] (f) Section 59-12-703 ;
             1553          [(i)] (g) Section 59-12-802 ;
             1554          [(j)] (h) Section 59-12-804 ;
             1555          [(k)] (i) Section 59-12-1102 ;
             1556          [(l)] (j) Section 59-12-1302 ;
             1557          [(m)] (k) Section 59-12-1402 ;
             1558          [(n)] (l) Section 59-12-1802 ;
             1559          [(o)] (m) Section 59-12-2003 ;
             1560          [(p)] (n) Section 59-12-2103 ;
             1561          [(q)] (o) Section 59-12-2213 ;
             1562          [(r)] (p) Section 59-12-2214 ;
             1563          [(s)] (q) Section 59-12-2215 ;
             1564          [(t)] (r) Section 59-12-2216 ;


             1565          [(u)] (s) Section 59-12-2217 ; or
             1566          [(v)] (t) Section 59-12-2218 .
             1567          (7) "Aircraft" is as defined in Section 72-10-102 .
             1568          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1569          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             1570      in Subsection 59-12-107 (1)(f) of an airline; and
             1571          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1572      whether the business entity performs the following in this state:
             1573          (i) check, diagnose, overhaul, and repair:
             1574          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1575          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1576          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1577      engine;
             1578          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1579      aircraft:
             1580          (A) an inspection;
             1581          (B) a repair, including a structural repair or modification;
             1582          (C) changing landing gear; and
             1583          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1584          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1585      completely apply new paint to the fixed wing turbine powered aircraft; and
             1586          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1587      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1588      authority that certifies the fixed wing turbine powered aircraft.
             1589          (9) "Alcoholic beverage" means a beverage that:
             1590          (a) is suitable for human consumption; and
             1591          (b) contains .5% or more alcohol by volume.
             1592          (10) (a) "Ancillary service" means a service associated with, or incidental to, the
             1593      provision of telecommunications service.
             1594          (b) "Ancillary service" includes:
             1595          (i) a conference bridging service;


             1596          (ii) a detailed communications billing service;
             1597          (iii) directory assistance;
             1598          (iv) a vertical service; or
             1599          (v) a voice mail service.
             1600          (11) "Area agency on aging" is as defined in Section 62A-3-101 .
             1601          (12) "Assisted amusement device" means an amusement device, skill device, or ride
             1602      device that is started and stopped by an individual:
             1603          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1604      device, skill device, or ride device; and
             1605          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1606      or ride device.
             1607          (13) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1608      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1609      by an individual:
             1610          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1611      property; and
             1612          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1613      property.
             1614          (14) "Authorized carrier" means:
             1615          (a) in the case of vehicles operated over public highways, the holder of credentials
             1616      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1617      Plan and the International Fuel Tax Agreement;
             1618          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1619      certificate or air carrier's operating certificate; or
             1620          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1621      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1622          (15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of the
             1623      following that is used as the primary source of energy to produce fuel or electricity:
             1624          (i) material from a plant or tree; or
             1625          (ii) other organic matter that is available on a renewable basis, including:
             1626          (A) slash and brush from forests and woodlands;


             1627          (B) animal waste;
             1628          (C) methane produced:
             1629          (I) at landfills; or
             1630          (II) as a byproduct of the treatment of wastewater residuals;
             1631          (D) aquatic plants; and
             1632          (E) agricultural products.
             1633          (b) "Biomass energy" does not include:
             1634          (i) black liquor;
             1635          (ii) treated woods; or
             1636          (iii) biomass from municipal solid waste other than methane produced:
             1637          (A) at landfills; or
             1638          (B) as a byproduct of the treatment of wastewater residuals.
             1639          (16) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1640      property, products, or services if the tangible personal property, products, or services are:
             1641          (i) distinct and identifiable; and
             1642          (ii) sold for one nonitemized price.
             1643          (b) "Bundled transaction" does not include:
             1644          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1645      the basis of the selection by the purchaser of the items of tangible personal property included in
             1646      the transaction;
             1647          (ii) the sale of real property;
             1648          (iii) the sale of services to real property;
             1649          (iv) the retail sale of tangible personal property and a service if:
             1650          (A) the tangible personal property:
             1651          (I) is essential to the use of the service; and
             1652          (II) is provided exclusively in connection with the service; and
             1653          (B) the service is the true object of the transaction;
             1654          (v) the retail sale of two services if:
             1655          (A) one service is provided that is essential to the use or receipt of a second service;
             1656          (B) the first service is provided exclusively in connection with the second service; and
             1657          (C) the second service is the true object of the transaction;


             1658          (vi) a transaction that includes tangible personal property or a product subject to
             1659      taxation under this chapter and tangible personal property or a product that is not subject to
             1660      taxation under this chapter if the:
             1661          (A) seller's purchase price of the tangible personal property or product subject to
             1662      taxation under this chapter is de minimis; or
             1663          (B) seller's sales price of the tangible personal property or product subject to taxation
             1664      under this chapter is de minimis; and
             1665          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1666      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1667          (A) that retail sale includes:
             1668          (I) food and food ingredients;
             1669          (II) a drug;
             1670          (III) durable medical equipment;
             1671          (IV) mobility enhancing equipment;
             1672          (V) an over-the-counter drug;
             1673          (VI) a prosthetic device; or
             1674          (VII) a medical supply; and
             1675          (B) subject to Subsection (16)(f):
             1676          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1677      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1678          (II) the seller's sales price of the tangible personal property subject to taxation under
             1679      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1680          (c) (i) For purposes of Subsection (16)(a)(i), tangible personal property, a product, or a
             1681      service that is distinct and identifiable does not include:
             1682          (A) packaging that:
             1683          (I) accompanies the sale of the tangible personal property, product, or service; and
             1684          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             1685      service;
             1686          (B) tangible personal property, a product, or a service provided free of charge with the
             1687      purchase of another item of tangible personal property, a product, or a service; or
             1688          (C) an item of tangible personal property, a product, or a service included in the


             1689      definition of "purchase price."
             1690          (ii) For purposes of Subsection (16)(c)(i)(B), an item of tangible personal property, a
             1691      product, or a service is provided free of charge with the purchase of another item of tangible
             1692      personal property, a product, or a service if the sales price of the purchased item of tangible
             1693      personal property, product, or service does not vary depending on the inclusion of the tangible
             1694      personal property, product, or service provided free of charge.
             1695          (d) (i) For purposes of Subsection (16)(a)(ii), property sold for one nonitemized price
             1696      does not include a price that is separately identified by tangible personal property, product, or
             1697      service on the following, regardless of whether the following is in paper format or electronic
             1698      format:
             1699          (A) a binding sales document; or
             1700          (B) another supporting sales-related document that is available to a purchaser.
             1701          (ii) For purposes of Subsection (16)(d)(i), a binding sales document or another
             1702      supporting sales-related document that is available to a purchaser includes:
             1703          (A) a bill of sale;
             1704          (B) a contract;
             1705          (C) an invoice;
             1706          (D) a lease agreement;
             1707          (E) a periodic notice of rates and services;
             1708          (F) a price list;
             1709          (G) a rate card;
             1710          (H) a receipt; or
             1711          (I) a service agreement.
             1712          (e) (i) For purposes of Subsection (16)(b)(vi), the sales price of tangible personal
             1713      property or a product subject to taxation under this chapter is de minimis if:
             1714          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1715      less of the seller's total purchase price of the bundled transaction; or
             1716          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1717      the seller's total sales price of the bundled transaction.
             1718          (ii) For purposes of Subsection (16)(b)(vi), a seller:
             1719          (A) shall use the seller's purchase price or the seller's sales price to determine if the


             1720      purchase price or sales price of the tangible personal property or product subject to taxation
             1721      under this chapter is de minimis; and
             1722          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1723      to determine if the purchase price or sales price of the tangible personal property or product
             1724      subject to taxation under this chapter is de minimis.
             1725          (iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a service
             1726      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1727          (f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of
             1728      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1729      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             1730      price of that retail sale.
             1731          (17) "Certified automated system" means software certified by the governing board of
             1732      the agreement that:
             1733          (a) calculates the agreement sales and use tax imposed within a local taxing
             1734      jurisdiction:
             1735          (i) on a transaction; and
             1736          (ii) in the states that are members of the agreement;
             1737          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1738      member of the agreement; and
             1739          (c) maintains a record of the transaction described in Subsection (17)(a)(i).
             1740          (18) "Certified service provider" means an agent certified:
             1741          (a) by the governing board of the agreement; and
             1742          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1743      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             1744      own purchases.
             1745          (19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparel
             1746      suitable for general use.
             1747          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1748      commission shall make rules:
             1749          (i) listing the items that constitute "clothing"; and
             1750          (ii) that are consistent with the list of items that constitute "clothing" under the


             1751      agreement.
             1752          (20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1753          (21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1754      fuels that does not constitute industrial use under Subsection (48) or residential use under
             1755      Subsection (94).
             1756          (22) (a) "Common carrier" means a person engaged in or transacting the business of
             1757      transporting passengers, freight, merchandise, or other property for hire within this state.
             1758          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1759      traveling to or from that person's place of employment, transports a passenger to or from the
             1760      passenger's place of employment.
             1761          (ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3,
             1762      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1763      constitutes a person's place of employment.
             1764          (23) "Component part" includes:
             1765          (a) poultry, dairy, and other livestock feed, and their components;
             1766          (b) baling ties and twine used in the baling of hay and straw;
             1767          (c) fuel used for providing temperature control of orchards and commercial
             1768      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1769      off-highway type farm machinery; and
             1770          (d) feed, seeds, and seedlings.
             1771          (24) "Computer" means an electronic device that accepts information:
             1772          (a) (i) in digital form; or
             1773          (ii) in a form similar to digital form; and
             1774          (b) manipulates that information for a result based on a sequence of instructions.
             1775          (25) "Computer software" means a set of coded instructions designed to cause:
             1776          (a) a computer to perform a task; or
             1777          (b) automatic data processing equipment to perform a task.
             1778          (26) (a) "Conference bridging service" means an ancillary service that links two or
             1779      more participants of an audio conference call or video conference call.
             1780          (b) "Conference bridging service" includes providing a telephone number as part of the
             1781      ancillary service described in Subsection (26)(a).


             1782          (c) "Conference bridging service" does not include a telecommunications service used
             1783      to reach the ancillary service described in Subsection (26)(a).
             1784          (27) "Construction materials" means any tangible personal property that will be
             1785      converted into real property.
             1786          (28) "Delivered electronically" means delivered to a purchaser by means other than
             1787      tangible storage media.
             1788          (29) (a) "Delivery charge" means a charge:
             1789          (i) by a seller of:
             1790          (A) tangible personal property;
             1791          (B) a product transferred electronically; or
             1792          (C) services; and
             1793          (ii) for preparation and delivery of the tangible personal property, product transferred
             1794      electronically, or services described in Subsection (29)(a)(i) to a location designated by the
             1795      purchaser.
             1796          (b) "Delivery charge" includes a charge for the following:
             1797          (i) transportation;
             1798          (ii) shipping;
             1799          (iii) postage;
             1800          (iv) handling;
             1801          (v) crating; or
             1802          (vi) packing.
             1803          (30) "Detailed telecommunications billing service" means an ancillary service of
             1804      separately stating information pertaining to individual calls on a customer's billing statement.
             1805          (31) "Dietary supplement" means a product, other than tobacco, that:
             1806          (a) is intended to supplement the diet;
             1807          (b) contains one or more of the following dietary ingredients:
             1808          (i) a vitamin;
             1809          (ii) a mineral;
             1810          (iii) an herb or other botanical;
             1811          (iv) an amino acid;
             1812          (v) a dietary substance for use by humans to supplement the diet by increasing the total


             1813      dietary intake; or
             1814          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1815      described in Subsections (31)(b)(i) through (v);
             1816          (c) (i) except as provided in Subsection (31)(c)(ii), is intended for ingestion in:
             1817          (A) tablet form;
             1818          (B) capsule form;
             1819          (C) powder form;
             1820          (D) softgel form;
             1821          (E) gelcap form; or
             1822          (F) liquid form; or
             1823          (ii) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in
             1824      a form described in Subsections (31)(c)(i)(A) through (F), is not represented:
             1825          (A) as conventional food; and
             1826          (B) for use as a sole item of:
             1827          (I) a meal; or
             1828          (II) the diet; and
             1829          (d) is required to be labeled as a dietary supplement:
             1830          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1831          (ii) as required by 21 C.F.R. Sec. 101.36.
             1832          (32) (a) "Direct mail" means printed material delivered or distributed by United States
             1833      mail or other delivery service:
             1834          (i) to:
             1835          (A) a mass audience; or
             1836          (B) addressees on a mailing list provided:
             1837          (I) by a purchaser of the mailing list; or
             1838          (II) at the discretion of the purchaser of the mailing list; and
             1839          (ii) if the cost of the printed material is not billed directly to the recipients.
             1840          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1841      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1842          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1843      single address.


             1844          (33) "Directory assistance" means an ancillary service of providing:
             1845          (a) address information; or
             1846          (b) telephone number information.
             1847          (34) (a) "Disposable home medical equipment or supplies" means medical equipment
             1848      or supplies that:
             1849          (i) cannot withstand repeated use; and
             1850          (ii) are purchased by, for, or on behalf of a person other than:
             1851          (A) a health care facility as defined in Section 26-21-2 ;
             1852          (B) a health care provider as defined in Section 78B-3-403 ;
             1853          (C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
             1854          (D) a person similar to a person described in Subsections (34)(a)(ii)(A) through (C).
             1855          (b) "Disposable home medical equipment or supplies" does not include:
             1856          (i) a drug;
             1857          (ii) durable medical equipment;
             1858          (iii) a hearing aid;
             1859          (iv) a hearing aid accessory;
             1860          (v) mobility enhancing equipment; or
             1861          (vi) tangible personal property used to correct impaired vision, including:
             1862          (A) eyeglasses; or
             1863          (B) contact lenses.
             1864          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1865      commission may by rule define what constitutes medical equipment or supplies.
             1866          (35) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1867      compound, substance, or preparation that is:
             1868          (i) recognized in:
             1869          (A) the official United States Pharmacopoeia;
             1870          (B) the official Homeopathic Pharmacopoeia of the United States;
             1871          (C) the official National Formulary; or
             1872          (D) a supplement to a publication listed in Subsections (35)(a)(i)(A) through (C);
             1873          (ii) intended for use in the:
             1874          (A) diagnosis of disease;


             1875          (B) cure of disease;
             1876          (C) mitigation of disease;
             1877          (D) treatment of disease; or
             1878          (E) prevention of disease; or
             1879          (iii) intended to affect:
             1880          (A) the structure of the body; or
             1881          (B) any function of the body.
             1882          (b) "Drug" does not include:
             1883          (i) food and food ingredients;
             1884          (ii) a dietary supplement;
             1885          (iii) an alcoholic beverage; or
             1886          (iv) a prosthetic device.
             1887          (36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" means
             1888      equipment that:
             1889          (i) can withstand repeated use;
             1890          (ii) is primarily and customarily used to serve a medical purpose;
             1891          (iii) generally is not useful to a person in the absence of illness or injury; and
             1892          (iv) is not worn in or on the body.
             1893          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1894      equipment described in Subsection (36)(a).
             1895          (c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not include
             1896      mobility enhancing equipment.
             1897          (37) "Electronic" means:
             1898          (a) relating to technology; and
             1899          (b) having:
             1900          (i) electrical capabilities;
             1901          (ii) digital capabilities;
             1902          (iii) magnetic capabilities;
             1903          (iv) wireless capabilities;
             1904          (v) optical capabilities;
             1905          (vi) electromagnetic capabilities; or


             1906          (vii) capabilities similar to Subsections (37)(b)(i) through (vi).
             1907          (38) "Employee" is as defined in Section 59-10-401 .
             1908          (39) "Fixed guideway" means a public transit facility that uses and occupies:
             1909          (a) rail for the use of public transit; or
             1910          (b) a separate right-of-way for the use of public transit.
             1911          (40) "Fixed wing turbine powered aircraft" means an aircraft that:
             1912          (a) is powered by turbine engines;
             1913          (b) operates on jet fuel; and
             1914          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1915          (41) "Fixed wireless service" means a telecommunications service that provides radio
             1916      communication between fixed points.
             1917          (42) (a) "Food and food ingredients" means substances:
             1918          (i) regardless of whether the substances are in:
             1919          (A) liquid form;
             1920          (B) concentrated form;
             1921          (C) solid form;
             1922          (D) frozen form;
             1923          (E) dried form; or
             1924          (F) dehydrated form; and
             1925          (ii) that are:
             1926          (A) sold for:
             1927          (I) ingestion by humans; or
             1928          (II) chewing by humans; and
             1929          (B) consumed for the substance's:
             1930          (I) taste; or
             1931          (II) nutritional value.
             1932          (b) "Food and food ingredients" includes an item described in Subsection (78)(b)(iii).
             1933          (c) "Food and food ingredients" does not include:
             1934          (i) an alcoholic beverage;
             1935          (ii) tobacco; or
             1936          (iii) prepared food.


             1937          (43) (a) "Fundraising sales" means sales:
             1938          (i) (A) made by a school; or
             1939          (B) made by a school student;
             1940          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1941      materials, or provide transportation; and
             1942          (iii) that are part of an officially sanctioned school activity.
             1943          (b) For purposes of Subsection (43)(a)(iii), "officially sanctioned school activity"
             1944      means a school activity:
             1945          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1946      district governing the authorization and supervision of fundraising activities;
             1947          (ii) that does not directly or indirectly compensate an individual teacher or other
             1948      educational personnel by direct payment, commissions, or payment in kind; and
             1949          (iii) the net or gross revenues from which are deposited in a dedicated account
             1950      controlled by the school or school district.
             1951          (44) "Geothermal energy" means energy contained in heat that continuously flows
             1952      outward from the earth that is used as the sole source of energy to produce electricity.
             1953          (45) "Governing board of the agreement" means the governing board of the agreement
             1954      that is:
             1955          (a) authorized to administer the agreement; and
             1956          (b) established in accordance with the agreement.
             1957          (46) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             1958          (i) the executive branch of the state, including all departments, institutions, boards,
             1959      divisions, bureaus, offices, commissions, and committees;
             1960          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             1961      Office of the Court Administrator, and similar administrative units in the judicial branch;
             1962          (iii) the legislative branch of the state, including the House of Representatives, the
             1963      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             1964      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             1965      Analyst;
             1966          (iv) the National Guard;
             1967          (v) an independent entity as defined in Section 63E-1-102 ; or


             1968          (vi) a political subdivision as defined in Section 17B-1-102 .
             1969          (b) "Governmental entity" does not include the state systems of public and higher
             1970      education, including:
             1971          (i) a college campus of the Utah College of Applied Technology;
             1972          (ii) a school;
             1973          (iii) the State Board of Education;
             1974          (iv) the State Board of Regents; or
             1975          (v) a state institution of higher education as defined in Section 53B-3-102 .
             1976          (47) "Hydroelectric energy" means water used as the sole source of energy to produce
             1977      electricity.
             1978          (48) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             1979      other fuels:
             1980          (a) in mining or extraction of minerals;
             1981          (b) in agricultural operations to produce an agricultural product up to the time of
             1982      harvest or placing the agricultural product into a storage facility, including:
             1983          (i) commercial greenhouses;
             1984          (ii) irrigation pumps;
             1985          (iii) farm machinery;
             1986          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             1987      registered under Title 41, Chapter 1a, Part 2, Registration; and
             1988          (v) other farming activities;
             1989          (c) in manufacturing tangible personal property at an establishment described in SIC
             1990      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             1991      Executive Office of the President, Office of Management and Budget;
             1992          (d) by a scrap recycler if:
             1993          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             1994      one or more of the following items into prepared grades of processed materials for use in new
             1995      products:
             1996          (A) iron;
             1997          (B) steel;
             1998          (C) nonferrous metal;


             1999          (D) paper;
             2000          (E) glass;
             2001          (F) plastic;
             2002          (G) textile; or
             2003          (H) rubber; and
             2004          (ii) the new products under Subsection (48)(d)(i) would otherwise be made with
             2005      nonrecycled materials; or
             2006          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2007      cogeneration facility as defined in Section 54-2-1 .
             2008          (49) (a) Except as provided in Subsection (49)(b), "installation charge" means a charge
             2009      for installing:
             2010          (i) tangible personal property; or
             2011          (ii) a product transferred electronically.
             2012          (b) "Installation charge" does not include a charge for repairs or renovations of:
             2013          (i) tangible personal property; or
             2014          (ii) a product transferred electronically.
             2015          (50) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2016      personal property or a product transferred electronically for:
             2017          (i) (A) a fixed term; or
             2018          (B) an indeterminate term; and
             2019          (ii) consideration.
             2020          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2021      amount of consideration may be increased or decreased by reference to the amount realized
             2022      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2023      Code.
             2024          (c) "Lease" or "rental" does not include:
             2025          (i) a transfer of possession or control of property under a security agreement or
             2026      deferred payment plan that requires the transfer of title upon completion of the required
             2027      payments;
             2028          (ii) a transfer of possession or control of property under an agreement that requires the
             2029      transfer of title:


             2030          (A) upon completion of required payments; and
             2031          (B) if the payment of an option price does not exceed the greater of:
             2032          (I) $100; or
             2033          (II) 1% of the total required payments; or
             2034          (iii) providing tangible personal property along with an operator for a fixed period of
             2035      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2036      designed.
             2037          (d) For purposes of Subsection (50)(c)(iii), an operator is necessary for equipment to
             2038      perform as designed if the operator's duties exceed the:
             2039          (i) set-up of tangible personal property;
             2040          (ii) maintenance of tangible personal property; or
             2041          (iii) inspection of tangible personal property.
             2042          (51) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             2043      if the tangible storage media is not physically transferred to the purchaser.
             2044          (52) "Local taxing jurisdiction" means a:
             2045          (a) county that is authorized to impose an agreement sales and use tax;
             2046          (b) city that is authorized to impose an agreement sales and use tax; or
             2047          (c) town that is authorized to impose an agreement sales and use tax.
             2048          (53) "Manufactured home" is as defined in Section 58-56-3 .
             2049          (54) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2050          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2051      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2052      Management and Budget;
             2053          (b) a scrap recycler if:
             2054          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2055      one or more of the following items into prepared grades of processed materials for use in new
             2056      products:
             2057          (A) iron;
             2058          (B) steel;
             2059          (C) nonferrous metal;
             2060          (D) paper;


             2061          (E) glass;
             2062          (F) plastic;
             2063          (G) textile; or
             2064          (H) rubber; and
             2065          (ii) the new products under Subsection (54)(b)(i) would otherwise be made with
             2066      nonrecycled materials; or
             2067          (c) a cogeneration facility as defined in Section 54-2-1 .
             2068          (55) "Member of the immediate family of the producer" means a person who is related
             2069      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2070          (a) child or stepchild, regardless of whether the child or stepchild is:
             2071          (i) an adopted child or adopted stepchild; or
             2072          (ii) a foster child or foster stepchild;
             2073          (b) grandchild or stepgrandchild;
             2074          (c) grandparent or stepgrandparent;
             2075          (d) nephew or stepnephew;
             2076          (e) niece or stepniece;
             2077          (f) parent or stepparent;
             2078          (g) sibling or stepsibling;
             2079          (h) spouse;
             2080          (i) person who is the spouse of a person described in Subsections (55)(a) through (g);
             2081      or
             2082          (j) person similar to a person described in Subsections (55)(a) through (i) as
             2083      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2084      Administrative Rulemaking Act.
             2085          (56) "Mobile home" is as defined in Section 58-56-3 .
             2086          (57) "Mobile telecommunications service" is as defined in the Mobile
             2087      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2088          (58) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2089      the technology used, if:
             2090          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2091          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or


             2092          (iii) the origination point described in Subsection (58)(a)(i) and the termination point
             2093      described in Subsection (58)(a)(ii) are not fixed.
             2094          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2095      by a commercial mobile radio service provider.
             2096          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2097      commission may by rule define "commercial mobile radio service provider."
             2098          (59) (a) Except as provided in Subsection (59)(c), "mobility enhancing equipment"
             2099      means equipment that is:
             2100          (i) primarily and customarily used to provide or increase the ability to move from one
             2101      place to another;
             2102          (ii) appropriate for use in a:
             2103          (A) home; or
             2104          (B) motor vehicle; and
             2105          (iii) not generally used by persons with normal mobility.
             2106          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2107      the equipment described in Subsection (59)(a).
             2108          (c) Notwithstanding Subsection (59)(a), "mobility enhancing equipment" does not
             2109      include:
             2110          (i) a motor vehicle;
             2111          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2112      vehicle manufacturer;
             2113          (iii) durable medical equipment; or
             2114          (iv) a prosthetic device.
             2115          (60) "Model 1 seller" means a seller registered under the agreement that has selected a
             2116      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2117      functions for agreement sales and use taxes other than the seller's obligation under Section
             2118      59-12-124 to remit a tax on the seller's own purchases.
             2119          (61) "Model 2 seller" means a seller registered under the agreement that:
             2120          (a) except as provided in Subsection (61)(b), has selected a certified automated system
             2121      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2122          (b) notwithstanding Subsection (61)(a), retains responsibility for remitting all of the


             2123      sales tax:
             2124          (i) collected by the seller; and
             2125          (ii) to the appropriate local taxing jurisdiction.
             2126          (62) (a) Subject to Subsection (62)(b), "model 3 seller" means a seller registered under
             2127      the agreement that has:
             2128          (i) sales in at least five states that are members of the agreement;
             2129          (ii) total annual sales revenues of at least $500,000,000;
             2130          (iii) a proprietary system that calculates the amount of tax:
             2131          (A) for an agreement sales and use tax; and
             2132          (B) due to each local taxing jurisdiction; and
             2133          (iv) entered into a performance agreement with the governing board of the agreement.
             2134          (b) For purposes of Subsection (62)(a), "model 3 seller" includes an affiliated group of
             2135      sellers using the same proprietary system.
             2136          (63) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2137      model 1 seller, model 2 seller, or model 3 seller.
             2138          (64) "Modular home" means a modular unit as defined in Section 58-56-3 .
             2139          (65) "Motor vehicle" is as defined in Section 41-1a-102 .
             2140          (66) "Oil shale" means a group of fine black to dark brown shales containing
             2141      bituminous material that yields petroleum upon distillation.
             2142          (67) (a) "Other fuels" means products that burn independently to produce heat or
             2143      energy.
             2144          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2145      personal property.
             2146          (68) (a) "Paging service" means a telecommunications service that provides
             2147      transmission of a coded radio signal for the purpose of activating a specific pager.
             2148          (b) For purposes of Subsection (68)(a), the transmission of a coded radio signal
             2149      includes a transmission by message or sound.
             2150          (69) "Pawnbroker" is as defined in Section 13-32a-102 .
             2151          (70) "Pawn transaction" is as defined in Section 13-32a-102 .
             2152          (71) (a) "Permanently attached to real property" means that for tangible personal
             2153      property attached to real property:


             2154          (i) the attachment of the tangible personal property to the real property:
             2155          (A) is essential to the use of the tangible personal property; and
             2156          (B) suggests that the tangible personal property will remain attached to the real
             2157      property in the same place over the useful life of the tangible personal property; or
             2158          (ii) if the tangible personal property is detached from the real property, the detachment
             2159      would:
             2160          (A) cause substantial damage to the tangible personal property; or
             2161          (B) require substantial alteration or repair of the real property to which the tangible
             2162      personal property is attached.
             2163          (b) "Permanently attached to real property" includes:
             2164          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2165          (A) essential to the operation of the tangible personal property; and
             2166          (B) attached only to facilitate the operation of the tangible personal property;
             2167          (ii) a temporary detachment of tangible personal property from real property for a
             2168      repair or renovation if the repair or renovation is performed where the tangible personal
             2169      property and real property are located; or
             2170          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2171      Subsection (71)(c)(iii) or (iv).
             2172          (c) "Permanently attached to real property" does not include:
             2173          (i) the attachment of portable or movable tangible personal property to real property if
             2174      that portable or movable tangible personal property is attached to real property only for:
             2175          (A) convenience;
             2176          (B) stability; or
             2177          (C) for an obvious temporary purpose;
             2178          (ii) the detachment of tangible personal property from real property except for the
             2179      detachment described in Subsection (71)(b)(ii);
             2180          (iii) an attachment of the following tangible personal property to real property if the
             2181      attachment to real property is only through a line that supplies water, electricity, gas,
             2182      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2183      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2184          (A) a computer;


             2185          (B) a telephone;
             2186          (C) a television; or
             2187          (D) tangible personal property similar to Subsections (71)(c)(iii)(A) through (C) as
             2188      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2189      Administrative Rulemaking Act; or
             2190          (iv) an item listed in Subsection (111)(c).
             2191          (72) "Person" includes any individual, firm, partnership, joint venture, association,
             2192      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2193      municipality, district, or other local governmental entity of the state, or any group or
             2194      combination acting as a unit.
             2195          (73) "Place of primary use":
             2196          (a) for telecommunications service other than mobile telecommunications service,
             2197      means the street address representative of where the customer's use of the telecommunications
             2198      service primarily occurs, which shall be:
             2199          (i) the residential street address of the customer; or
             2200          (ii) the primary business street address of the customer; or
             2201          (b) for mobile telecommunications service, is as defined in the Mobile
             2202      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2203          (74) (a) "Postpaid calling service" means a telecommunications service a person
             2204      obtains by making a payment on a call-by-call basis:
             2205          (i) through the use of a:
             2206          (A) bank card;
             2207          (B) credit card;
             2208          (C) debit card; or
             2209          (D) travel card; or
             2210          (ii) by a charge made to a telephone number that is not associated with the origination
             2211      or termination of the telecommunications service.
             2212          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2213      service, that would be a prepaid wireless calling service if the service were exclusively a
             2214      telecommunications service.
             2215          (75) "Postproduction" means an activity related to the finishing or duplication of a


             2216      medium described in Subsection 59-12-104 (54)(a).
             2217          (76) "Prepaid calling service" means a telecommunications service:
             2218          (a) that allows a purchaser access to telecommunications service that is exclusively
             2219      telecommunications service;
             2220          (b) that:
             2221          (i) is paid for in advance; and
             2222          (ii) enables the origination of a call using an:
             2223          (A) access number; or
             2224          (B) authorization code;
             2225          (c) that is dialed:
             2226          (i) manually; or
             2227          (ii) electronically; and
             2228          (d) sold in predetermined units or dollars that decline:
             2229          (i) by a known amount; and
             2230          (ii) with use.
             2231          (77) "Prepaid wireless calling service" means a telecommunications service:
             2232          (a) that provides the right to utilize:
             2233          (i) mobile wireless service; and
             2234          (ii) other service that is not a telecommunications service, including:
             2235          (A) the download of a product transferred electronically;
             2236          (B) a content service; or
             2237          (C) an ancillary service;
             2238          (b) that:
             2239          (i) is paid for in advance; and
             2240          (ii) enables the origination of a call using an:
             2241          (A) access number; or
             2242          (B) authorization code;
             2243          (c) that is dialed:
             2244          (i) manually; or
             2245          (ii) electronically; and
             2246          (d) sold in predetermined units or dollars that decline:


             2247          (i) by a known amount; and
             2248          (ii) with use.
             2249          (78) (a) "Prepared food" means:
             2250          (i) food:
             2251          (A) sold in a heated state; or
             2252          (B) heated by a seller;
             2253          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2254      item; or
             2255          (iii) except as provided in Subsection (78)(c), food sold with an eating utensil provided
             2256      by the seller, including a:
             2257          (A) plate;
             2258          (B) knife;
             2259          (C) fork;
             2260          (D) spoon;
             2261          (E) glass;
             2262          (F) cup;
             2263          (G) napkin; or
             2264          (H) straw.
             2265          (b) "Prepared food" does not include:
             2266          (i) food that a seller only:
             2267          (A) cuts;
             2268          (B) repackages; or
             2269          (C) pasteurizes; or
             2270          (ii) (A) the following:
             2271          (I) raw egg;
             2272          (II) raw fish;
             2273          (III) raw meat;
             2274          (IV) raw poultry; or
             2275          (V) a food containing an item described in Subsections (78)(b)(ii)(A)(I) through (IV);
             2276      and
             2277          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the


             2278      Food and Drug Administration's Food Code that a consumer cook the items described in
             2279      Subsection (78)(b)(ii)(A) to prevent food borne illness; or
             2280          (iii) the following if sold without eating utensils provided by the seller:
             2281          (A) food and food ingredients sold by a seller if the seller's proper primary
             2282      classification under the 2002 North American Industry Classification System of the federal
             2283      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2284      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2285      Manufacturing;
             2286          (B) food and food ingredients sold in an unheated state:
             2287          (I) by weight or volume; and
             2288          (II) as a single item; or
             2289          (C) a bakery item, including:
             2290          (I) a bagel;
             2291          (II) a bar;
             2292          (III) a biscuit;
             2293          (IV) bread;
             2294          (V) a bun;
             2295          (VI) a cake;
             2296          (VII) a cookie;
             2297          (VIII) a croissant;
             2298          (IX) a danish;
             2299          (X) a donut;
             2300          (XI) a muffin;
             2301          (XII) a pastry;
             2302          (XIII) a pie;
             2303          (XIV) a roll;
             2304          (XV) a tart;
             2305          (XVI) a torte; or
             2306          (XVII) a tortilla.
             2307          (c) Notwithstanding Subsection (78)(a)(iii), an eating utensil provided by the seller
             2308      does not include the following used to transport the food:


             2309          (i) a container; or
             2310          (ii) packaging.
             2311          (79) "Prescription" means an order, formula, or recipe that is issued:
             2312          (a) (i) orally;
             2313          (ii) in writing;
             2314          (iii) electronically; or
             2315          (iv) by any other manner of transmission; and
             2316          (b) by a licensed practitioner authorized by the laws of a state.
             2317          (80) (a) Except as provided in Subsection (80)(b)(ii) or (iii), "prewritten computer
             2318      software" means computer software that is not designed and developed:
             2319          (i) by the author or other creator of the computer software; and
             2320          (ii) to the specifications of a specific purchaser.
             2321          (b) "Prewritten computer software" includes:
             2322          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2323      software is not designed and developed:
             2324          (A) by the author or other creator of the computer software; and
             2325          (B) to the specifications of a specific purchaser;
             2326          (ii) notwithstanding Subsection (80)(a), computer software designed and developed by
             2327      the author or other creator of the computer software to the specifications of a specific purchaser
             2328      if the computer software is sold to a person other than the purchaser; or
             2329          (iii) notwithstanding Subsection (80)(a) and except as provided in Subsection (80)(c),
             2330      prewritten computer software or a prewritten portion of prewritten computer software:
             2331          (A) that is modified or enhanced to any degree; and
             2332          (B) if the modification or enhancement described in Subsection (80)(b)(iii)(A) is
             2333      designed and developed to the specifications of a specific purchaser.
             2334          (c) Notwithstanding Subsection (80)(b)(iii), "prewritten computer software" does not
             2335      include a modification or enhancement described in Subsection (80)(b)(iii) if the charges for
             2336      the modification or enhancement are:
             2337          (i) reasonable; and
             2338          (ii) separately stated on the invoice or other statement of price provided to the
             2339      purchaser.


             2340          (81) (a) "Private communication service" means a telecommunications service:
             2341          (i) that entitles a customer to exclusive or priority use of one or more communications
             2342      channels between or among termination points; and
             2343          (ii) regardless of the manner in which the one or more communications channels are
             2344      connected.
             2345          (b) "Private communications service" includes the following provided in connection
             2346      with the use of one or more communications channels:
             2347          (i) an extension line;
             2348          (ii) a station;
             2349          (iii) switching capacity; or
             2350          (iv) another associated service that is provided in connection with the use of one or
             2351      more communications channels as defined in Section 59-12-215 .
             2352          (82) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2353          (i) artificially replace a missing portion of the body;
             2354          (ii) prevent or correct a physical deformity or physical malfunction; or
             2355          (iii) support a weak or deformed portion of the body.
             2356          (b) "Prosthetic device" includes:
             2357          (i) parts used in the repairs or renovation of a prosthetic device;
             2358          (ii) replacement parts for a prosthetic device;
             2359          (iii) a dental prosthesis; or
             2360          (iv) a hearing aid.
             2361          (c) "Prosthetic device" does not include:
             2362          (i) corrective eyeglasses; or
             2363          (ii) contact lenses.
             2364          (83) (a) "Protective equipment" means an item:
             2365          (i) for human wear; and
             2366          (ii) that is:
             2367          (A) designed as protection:
             2368          (I) to the wearer against injury or disease; or
             2369          (II) against damage or injury of other persons or property; and
             2370          (B) not suitable for general use.


             2371          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2372      commission shall make rules:
             2373          (i) listing the items that constitute "protective equipment"; and
             2374          (ii) that are consistent with the list of items that constitute "protective equipment"
             2375      under the agreement.
             2376          (84) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             2377      printed matter, other than a photocopy:
             2378          (i) regardless of:
             2379          (A) characteristics;
             2380          (B) copyright;
             2381          (C) form;
             2382          (D) format;
             2383          (E) method of reproduction; or
             2384          (F) source; and
             2385          (ii) made available in printed or electronic format.
             2386          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2387      commission may by rule define the term "photocopy."
             2388          (85) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2389          (i) valued in money; and
             2390          (ii) for which tangible personal property, a product transferred electronically, or
             2391      services are:
             2392          (A) sold;
             2393          (B) leased; or
             2394          (C) rented.
             2395          (b) "Purchase price" and "sales price" include:
             2396          (i) the seller's cost of the tangible personal property, a product transferred
             2397      electronically, or services sold;
             2398          (ii) expenses of the seller, including:
             2399          (A) the cost of materials used;
             2400          (B) a labor cost;
             2401          (C) a service cost;


             2402          (D) interest;
             2403          (E) a loss;
             2404          (F) the cost of transportation to the seller; or
             2405          (G) a tax imposed on the seller;
             2406          (iii) a charge by the seller for any service necessary to complete the sale; or
             2407          (iv) consideration a seller receives from a person other than the purchaser if:
             2408          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2409      and
             2410          (II) the consideration described in Subsection (85)(b)(iv)(A)(I) is directly related to a
             2411      price reduction or discount on the sale;
             2412          (B) the seller has an obligation to pass the price reduction or discount through to the
             2413      purchaser;
             2414          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2415      the seller at the time of the sale to the purchaser; and
             2416          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2417      seller to claim a price reduction or discount; and
             2418          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2419      coupon, or other documentation with the understanding that the person other than the seller
             2420      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2421          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2422      organization allowed a price reduction or discount, except that a preferred customer card that is
             2423      available to any patron of a seller does not constitute membership in a group or organization
             2424      allowed a price reduction or discount; or
             2425          (III) the price reduction or discount is identified as a third party price reduction or
             2426      discount on the:
             2427          (Aa) invoice the purchaser receives; or
             2428          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2429          (c) "Purchase price" and "sales price" do not include:
             2430          (i) a discount:
             2431          (A) in a form including:
             2432          (I) cash;


             2433          (II) term; or
             2434          (III) coupon;
             2435          (B) that is allowed by a seller;
             2436          (C) taken by a purchaser on a sale; and
             2437          (D) that is not reimbursed by a third party; or
             2438          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             2439      provided to the purchaser:
             2440          (A) the following from credit extended on the sale of tangible personal property or
             2441      services:
             2442          (I) a carrying charge;
             2443          (II) a financing charge; or
             2444          (III) an interest charge;
             2445          (B) a delivery charge;
             2446          (C) an installation charge;
             2447          (D) a manufacturer rebate on a motor vehicle; or
             2448          (E) a tax or fee legally imposed directly on the consumer.
             2449          (86) "Purchaser" means a person to whom:
             2450          (a) a sale of tangible personal property is made;
             2451          (b) a product is transferred electronically; or
             2452          (c) a service is furnished.
             2453          (87) "Regularly rented" means:
             2454          (a) rented to a guest for value three or more times during a calendar year; or
             2455          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2456      value.
             2457          (88) "Renewable energy" means:
             2458          (a) biomass energy;
             2459          (b) hydroelectric energy;
             2460          (c) geothermal energy;
             2461          (d) solar energy; or
             2462          (e) wind energy.
             2463          (89) (a) "Renewable energy production facility" means a facility that:


             2464          (i) uses renewable energy to produce electricity; and
             2465          (ii) has a production capacity of 20 kilowatts or greater.
             2466          (b) A facility is a renewable energy production facility regardless of whether the
             2467      facility is:
             2468          (i) connected to an electric grid; or
             2469          (ii) located on the premises of an electricity consumer.
             2470          (90) "Rental" is as defined in Subsection (50).
             2471          (91) "Repairs or renovations of tangible personal property" means:
             2472          (a) a repair or renovation of tangible personal property that is not permanently attached
             2473      to real property; or
             2474          (b) attaching tangible personal property or a product that is transferred electronically to
             2475      other tangible personal property if the other tangible personal property to which the tangible
             2476      personal property or product that is transferred electronically is attached is not permanently
             2477      attached to real property.
             2478          (92) "Research and development" means the process of inquiry or experimentation
             2479      aimed at the discovery of facts, devices, technologies, or applications and the process of
             2480      preparing those devices, technologies, or applications for marketing.
             2481          (93) (a) "Residential telecommunications services" means a telecommunications
             2482      service or an ancillary service that is provided to an individual for personal use:
             2483          (i) at a residential address; or
             2484          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2485      service or ancillary service is provided to and paid for by the individual residing at the
             2486      institution rather than the institution.
             2487          (b) For purposes of Subsection (93)(a), a residential address includes an:
             2488          (i) apartment; or
             2489          (ii) other individual dwelling unit.
             2490          (94) "Residential use" means the use in or around a home, apartment building, sleeping
             2491      quarters, and similar facilities or accommodations.
             2492          (95) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2493      than:
             2494          (a) resale;


             2495          (b) sublease; or
             2496          (c) subrent.
             2497          (96) (a) "Retailer" means any person engaged in a regularly organized business in
             2498      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2499      who is selling to the user or consumer and not for resale.
             2500          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2501      engaged in the business of selling to users or consumers within the state.
             2502          (97) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2503      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2504      Subsection 59-12-103 (1), for consideration.
             2505          (b) "Sale" includes:
             2506          (i) installment and credit sales;
             2507          (ii) any closed transaction constituting a sale;
             2508          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2509      chapter;
             2510          (iv) any transaction if the possession of property is transferred but the seller retains the
             2511      title as security for the payment of the price; and
             2512          (v) any transaction under which right to possession, operation, or use of any article of
             2513      tangible personal property is granted under a lease or contract and the transfer of possession
             2514      would be taxable if an outright sale were made.
             2515          (98) "Sale at retail" is as defined in Subsection (95).
             2516          (99) "Sale-leaseback transaction" means a transaction by which title to tangible
             2517      personal property or a product transferred electronically that is subject to a tax under this
             2518      chapter is transferred:
             2519          (a) by a purchaser-lessee;
             2520          (b) to a lessor;
             2521          (c) for consideration; and
             2522          (d) if:
             2523          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2524      of the tangible personal property or product transferred electronically;
             2525          (ii) the sale of the tangible personal property or product transferred electronically to the


             2526      lessor is intended as a form of financing:
             2527          (A) for the tangible personal property or product transferred electronically; and
             2528          (B) to the purchaser-lessee; and
             2529          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2530      is required to:
             2531          (A) capitalize the tangible personal property or product transferred electronically for
             2532      financial reporting purposes; and
             2533          (B) account for the lease payments as payments made under a financing arrangement.
             2534          (100) "Sales price" is as defined in Subsection (85).
             2535          (101) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2536      amounts charged by a school:
             2537          (i) sales that are directly related to the school's educational functions or activities
             2538      including:
             2539          (A) the sale of:
             2540          (I) textbooks;
             2541          (II) textbook fees;
             2542          (III) laboratory fees;
             2543          (IV) laboratory supplies; or
             2544          (V) safety equipment;
             2545          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2546      that:
             2547          (I) a student is specifically required to wear as a condition of participation in a
             2548      school-related event or school-related activity; and
             2549          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2550      place of ordinary clothing;
             2551          (C) sales of the following if the net or gross revenues generated by the sales are
             2552      deposited into a school district fund or school fund dedicated to school meals:
             2553          (I) food and food ingredients; or
             2554          (II) prepared food; or
             2555          (D) transportation charges for official school activities; or
             2556          (ii) amounts paid to or amounts charged by a school for admission to a school-related


             2557      event or school-related activity.
             2558          (b) "Sales relating to schools" does not include:
             2559          (i) bookstore sales of items that are not educational materials or supplies;
             2560          (ii) except as provided in Subsection (101)(a)(i)(B):
             2561          (A) clothing;
             2562          (B) clothing accessories or equipment;
             2563          (C) protective equipment; or
             2564          (D) sports or recreational equipment; or
             2565          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2566      event or school-related activity if the amounts paid or charged are passed through to a person:
             2567          (A) other than a:
             2568          (I) school;
             2569          (II) nonprofit organization authorized by a school board or a governing body of a
             2570      private school to organize and direct a competitive secondary school activity; or
             2571          (III) nonprofit association authorized by a school board or a governing body of a
             2572      private school to organize and direct a competitive secondary school activity; and
             2573          (B) that is required to collect sales and use taxes under this chapter.
             2574          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2575      commission may make rules defining the term "passed through."
             2576          (102) For purposes of this section and Section 59-12-104 , "school":
             2577          (a) means:
             2578          (i) an elementary school or a secondary school that:
             2579          (A) is a:
             2580          (I) public school; or
             2581          (II) private school; and
             2582          (B) provides instruction for one or more grades kindergarten through 12; or
             2583          (ii) a public school district; and
             2584          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2585          (103) "Seller" means a person that makes a sale, lease, or rental of:
             2586          (a) tangible personal property;
             2587          (b) a product transferred electronically; or


             2588          (c) a service.
             2589          (104) (a) "Semiconductor fabricating, processing, research, or development materials"
             2590      means tangible personal property or a product transferred electronically if the tangible personal
             2591      property or product transferred electronically is:
             2592          (i) used primarily in the process of:
             2593          (A) (I) manufacturing a semiconductor;
             2594          (II) fabricating a semiconductor; or
             2595          (III) research or development of a:
             2596          (Aa) semiconductor; or
             2597          (Bb) semiconductor manufacturing process; or
             2598          (B) maintaining an environment suitable for a semiconductor; or
             2599          (ii) consumed primarily in the process of:
             2600          (A) (I) manufacturing a semiconductor;
             2601          (II) fabricating a semiconductor; or
             2602          (III) research or development of a:
             2603          (Aa) semiconductor; or
             2604          (Bb) semiconductor manufacturing process; or
             2605          (B) maintaining an environment suitable for a semiconductor.
             2606          (b) "Semiconductor fabricating, processing, research, or development materials"
             2607      includes:
             2608          (i) parts used in the repairs or renovations of tangible personal property or a product
             2609      transferred electronically described in Subsection (104)(a); or
             2610          (ii) a chemical, catalyst, or other material used to:
             2611          (A) produce or induce in a semiconductor a:
             2612          (I) chemical change; or
             2613          (II) physical change;
             2614          (B) remove impurities from a semiconductor; or
             2615          (C) improve the marketable condition of a semiconductor.
             2616          (105) "Senior citizen center" means a facility having the primary purpose of providing
             2617      services to the aged as defined in Section 62A-3-101 .
             2618          (106) "Simplified electronic return" means the electronic return:


             2619          (a) described in Section 318(C) of the agreement; and
             2620          (b) approved by the governing board of the agreement.
             2621          (107) "Solar energy" means the sun used as the sole source of energy for producing
             2622      electricity.
             2623          (108) (a) "Sports or recreational equipment" means an item:
             2624          (i) designed for human use; and
             2625          (ii) that is:
             2626          (A) worn in conjunction with:
             2627          (I) an athletic activity; or
             2628          (II) a recreational activity; and
             2629          (B) not suitable for general use.
             2630          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2631      commission shall make rules:
             2632          (i) listing the items that constitute "sports or recreational equipment"; and
             2633          (ii) that are consistent with the list of items that constitute "sports or recreational
             2634      equipment" under the agreement.
             2635          (109) "State" means the state of Utah, its departments, and agencies.
             2636          (110) "Storage" means any keeping or retention of tangible personal property or any
             2637      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             2638      sale in the regular course of business.
             2639          (111) (a) Except as provided in Subsection (111)(d) or (e), "tangible personal property"
             2640      means personal property that:
             2641          (i) may be:
             2642          (A) seen;
             2643          (B) weighed;
             2644          (C) measured;
             2645          (D) felt; or
             2646          (E) touched; or
             2647          (ii) is in any manner perceptible to the senses.
             2648          (b) "Tangible personal property" includes:
             2649          (i) electricity;


             2650          (ii) water;
             2651          (iii) gas;
             2652          (iv) steam; or
             2653          (v) prewritten computer software.
             2654          (c) "Tangible personal property" includes the following regardless of whether the item
             2655      is attached to real property:
             2656          (i) a dishwasher;
             2657          (ii) a dryer;
             2658          (iii) a freezer;
             2659          (iv) a microwave;
             2660          (v) a refrigerator;
             2661          (vi) a stove;
             2662          (vii) a washer; or
             2663          (viii) an item similar to Subsections (111)(c)(i) through (vii) as determined by the
             2664      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2665      Rulemaking Act.
             2666          (d) "Tangible personal property" does not include a product that is transferred
             2667      electronically.
             2668          (e) "Tangible personal property" does not include the following if attached to real
             2669      property, regardless of whether the attachment to real property is only through a line that
             2670      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2671      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2672      Rulemaking Act:
             2673          (i) a hot water heater;
             2674          (ii) a water filtration system; or
             2675          (iii) a water softener system.
             2676          (112) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             2677      and require further processing other than mechanical blending before becoming finished
             2678      petroleum products.
             2679          (113) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             2680      software" means an item listed in Subsection (113)(b) if that item is purchased or leased


             2681      primarily to enable or facilitate one or more of the following to function:
             2682          (i) telecommunications switching or routing equipment, machinery, or software; or
             2683          (ii) telecommunications transmission equipment, machinery, or software.
             2684          (b) The following apply to Subsection (113)(a):
             2685          (i) a pole;
             2686          (ii) software;
             2687          (iii) a supplementary power supply;
             2688          (iv) temperature or environmental equipment or machinery;
             2689          (v) test equipment;
             2690          (vi) a tower; or
             2691          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2692      Subsections (113)(b)(i) through (vi) as determined by the commission by rule made in
             2693      accordance with Subsection (113)(c).
             2694          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2695      commission may by rule define what constitutes equipment, machinery, or software that
             2696      functions similarly to an item listed in Subsections (113)(b)(i) through (vi).
             2697          (114) "Telecommunications equipment, machinery, or software required for 911
             2698      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             2699      Sec. 20.18.
             2700          (115) "Telecommunications maintenance or repair equipment, machinery, or software"
             2701      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             2702      one or more of the following, regardless of whether the equipment, machinery, or software is
             2703      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             2704      following:
             2705          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2706          (b) telecommunications switching or routing equipment, machinery, or software; or
             2707          (c) telecommunications transmission equipment, machinery, or software.
             2708          (116) (a) "Telecommunications service" means the electronic conveyance, routing, or
             2709      transmission of audio, data, video, voice, or any other information or signal to a point, or
             2710      among or between points.
             2711          (b) "Telecommunications service" includes:


             2712          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2713      processing application is used to act:
             2714          (A) on the code, form, or protocol of the content;
             2715          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2716          (C) regardless of whether the service:
             2717          (I) is referred to as voice over Internet protocol service; or
             2718          (II) is classified by the Federal Communications Commission as enhanced or value
             2719      added;
             2720          (ii) an 800 service;
             2721          (iii) a 900 service;
             2722          (iv) a fixed wireless service;
             2723          (v) a mobile wireless service;
             2724          (vi) a postpaid calling service;
             2725          (vii) a prepaid calling service;
             2726          (viii) a prepaid wireless calling service; or
             2727          (ix) a private communications service.
             2728          (c) "Telecommunications service" does not include:
             2729          (i) advertising, including directory advertising;
             2730          (ii) an ancillary service;
             2731          (iii) a billing and collection service provided to a third party;
             2732          (iv) a data processing and information service if:
             2733          (A) the data processing and information service allows data to be:
             2734          (I) (Aa) acquired;
             2735          (Bb) generated;
             2736          (Cc) processed;
             2737          (Dd) retrieved; or
             2738          (Ee) stored; and
             2739          (II) delivered by an electronic transmission to a purchaser; and
             2740          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2741      or information;
             2742          (v) installation or maintenance of the following on a customer's premises:


             2743          (A) equipment; or
             2744          (B) wiring;
             2745          (vi) Internet access service;
             2746          (vii) a paging service;
             2747          (viii) a product transferred electronically, including:
             2748          (A) music;
             2749          (B) reading material;
             2750          (C) a ring tone;
             2751          (D) software; or
             2752          (E) video;
             2753          (ix) a radio and television audio and video programming service:
             2754          (A) regardless of the medium; and
             2755          (B) including:
             2756          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2757      programming service by a programming service provider;
             2758          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2759          (III) audio and video programming services delivered by a commercial mobile radio
             2760      service provider as defined in 47 C.F.R. Sec. 20.3;
             2761          (x) a value-added nonvoice data service; or
             2762          (xi) tangible personal property.
             2763          (117) (a) "Telecommunications service provider" means a person that:
             2764          (i) owns, controls, operates, or manages a telecommunications service; and
             2765          (ii) engages in an activity described in Subsection (117)(a)(i) for the shared use with or
             2766      resale to any person of the telecommunications service.
             2767          (b) A person described in Subsection (117)(a) is a telecommunications service provider
             2768      whether or not the Public Service Commission of Utah regulates:
             2769          (i) that person; or
             2770          (ii) the telecommunications service that the person owns, controls, operates, or
             2771      manages.
             2772          (118) (a) "Telecommunications switching or routing equipment, machinery, or
             2773      software" means an item listed in Subsection (118)(b) if that item is purchased or leased


             2774      primarily for switching or routing:
             2775          (i) an ancillary service;
             2776          (ii) data communications;
             2777          (iii) voice communications; or
             2778          (iv) telecommunications service.
             2779          (b) The following apply to Subsection (118)(a):
             2780          (i) a bridge;
             2781          (ii) a computer;
             2782          (iii) a cross connect;
             2783          (iv) a modem;
             2784          (v) a multiplexer;
             2785          (vi) plug in circuitry;
             2786          (vii) a router;
             2787          (viii) software;
             2788          (ix) a switch; or
             2789          (x) equipment, machinery, or software that functions similarly to an item listed in
             2790      Subsections (118)(b)(i) through (ix) as determined by the commission by rule made in
             2791      accordance with Subsection (118)(c).
             2792          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2793      commission may by rule define what constitutes equipment, machinery, or software that
             2794      functions similarly to an item listed in Subsections (118)(b)(i) through (ix).
             2795          (119) (a) "Telecommunications transmission equipment, machinery, or software"
             2796      means an item listed in Subsection (119)(b) if that item is purchased or leased primarily for
             2797      sending, receiving, or transporting:
             2798          (i) an ancillary service;
             2799          (ii) data communications;
             2800          (iii) voice communications; or
             2801          (iv) telecommunications service.
             2802          (b) The following apply to Subsection (119)(a):
             2803          (i) an amplifier;
             2804          (ii) a cable;


             2805          (iii) a closure;
             2806          (iv) a conduit;
             2807          (v) a controller;
             2808          (vi) a duplexer;
             2809          (vii) a filter;
             2810          (viii) an input device;
             2811          (ix) an input/output device;
             2812          (x) an insulator;
             2813          (xi) microwave machinery or equipment;
             2814          (xii) an oscillator;
             2815          (xiii) an output device;
             2816          (xiv) a pedestal;
             2817          (xv) a power converter;
             2818          (xvi) a power supply;
             2819          (xvii) a radio channel;
             2820          (xviii) a radio receiver;
             2821          (xix) a radio transmitter;
             2822          (xx) a repeater;
             2823          (xxi) software;
             2824          (xxii) a terminal;
             2825          (xxiii) a timing unit;
             2826          (xxiv) a transformer;
             2827          (xxv) a wire; or
             2828          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2829      Subsections (119)(b)(i) through (xxv) as determined by the commission by rule made in
             2830      accordance with Subsection (119)(c).
             2831          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2832      commission may by rule define what constitutes equipment, machinery, or software that
             2833      functions similarly to an item listed in Subsections (119)(b)(i) through (xxv).
             2834          (120) "Tobacco" means:
             2835          (a) a cigarette;


             2836          (b) a cigar;
             2837          (c) chewing tobacco;
             2838          (d) pipe tobacco; or
             2839          (e) any other item that contains tobacco.
             2840          (121) "Unassisted amusement device" means an amusement device, skill device, or
             2841      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             2842      the amusement device, skill device, or ride device.
             2843          (122) (a) "Use" means the exercise of any right or power over tangible personal
             2844      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2845      incident to the ownership or the leasing of that tangible personal property, product transferred
             2846      electronically, or service.
             2847          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             2848      property, a product transferred electronically, or a service in the regular course of business and
             2849      held for resale.
             2850          (123) "Value-added nonvoice data service" means a service:
             2851          (a) that otherwise meets the definition of a telecommunications service except that a
             2852      computer processing application is used to act primarily for a purpose other than conveyance,
             2853      routing, or transmission; and
             2854          (b) with respect to which a computer processing application is used to act on data or
             2855      information:
             2856          (i) code;
             2857          (ii) content;
             2858          (iii) form; or
             2859          (iv) protocol.
             2860          (124) (a) Subject to Subsection (124)(b), "vehicle" means the following that are
             2861      required to be titled, registered, or titled and registered:
             2862          (i) an aircraft as defined in Section 72-10-102 ;
             2863          (ii) a vehicle as defined in Section 41-1a-102 ;
             2864          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2865          (iv) a vessel as defined in Section 41-1a-102 .
             2866          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:


             2867          (i) a vehicle described in Subsection (124)(a); or
             2868          (ii) (A) a locomotive;
             2869          (B) a freight car;
             2870          (C) railroad work equipment; or
             2871          (D) other railroad rolling stock.
             2872          (125) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             2873      exchanging a vehicle as defined in Subsection (124).
             2874          (126) (a) "Vertical service" means an ancillary service that:
             2875          (i) is offered in connection with one or more telecommunications services; and
             2876          (ii) offers an advanced calling feature that allows a customer to:
             2877          (A) identify a caller; and
             2878          (B) manage multiple calls and call connections.
             2879          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2880      conference bridging service.
             2881          (127) (a) "Voice mail service" means an ancillary service that enables a customer to
             2882      receive, send, or store a recorded message.
             2883          (b) "Voice mail service" does not include a vertical service that a customer is required
             2884      to have in order to utilize a voice mail service.
             2885          (128) (a) Except as provided in Subsection (128)(b), "waste energy facility" means a
             2886      facility that generates electricity:
             2887          (i) using as the primary source of energy waste materials that would be placed in a
             2888      landfill or refuse pit if it were not used to generate electricity, including:
             2889          (A) tires;
             2890          (B) waste coal; or
             2891          (C) oil shale; and
             2892          (ii) in amounts greater than actually required for the operation of the facility.
             2893          (b) "Waste energy facility" does not include a facility that incinerates:
             2894          (i) municipal solid waste;
             2895          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             2896          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2897          (129) "Watercraft" means a vessel as defined in Section 73-18-2 .


             2898          (130) "Wind energy" means wind used as the sole source of energy to produce
             2899      electricity.
             2900          (131) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             2901      location by the United States Postal Service.
             2902          Section 20. Section 59-12-103 is amended to read:
             2903           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             2904      tax revenues.
             2905          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             2906      charged for the following transactions:
             2907          (a) retail sales of tangible personal property made within the state;
             2908          (b) amounts paid for:
             2909          (i) telecommunications service, other than mobile telecommunications service, that
             2910      originates and terminates within the boundaries of this state;
             2911          (ii) mobile telecommunications service that originates and terminates within the
             2912      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             2913      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             2914          (iii) an ancillary service associated with a:
             2915          (A) telecommunications service described in Subsection (1)(b)(i); or
             2916          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             2917          (c) sales of the following for commercial use:
             2918          (i) gas;
             2919          (ii) electricity;
             2920          (iii) heat;
             2921          (iv) coal;
             2922          (v) fuel oil; or
             2923          (vi) other fuels;
             2924          (d) sales of the following for residential use:
             2925          (i) gas;
             2926          (ii) electricity;
             2927          (iii) heat;
             2928          (iv) coal;


             2929          (v) fuel oil; or
             2930          (vi) other fuels;
             2931          (e) sales of prepared food;
             2932          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             2933      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             2934      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             2935      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             2936      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             2937      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             2938      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             2939      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             2940      exhibition, cultural, or athletic activity;
             2941          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             2942      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             2943          (i) the tangible personal property; and
             2944          (ii) parts used in the repairs or renovations of the tangible personal property described
             2945      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             2946      of that tangible personal property;
             2947          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             2948      assisted cleaning or washing of tangible personal property;
             2949          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             2950      accommodations and services that are regularly rented for less than 30 consecutive days;
             2951          (j) amounts paid or charged for laundry or dry cleaning services;
             2952          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             2953      this state the tangible personal property is:
             2954          (i) stored;
             2955          (ii) used; or
             2956          (iii) otherwise consumed;
             2957          (l) amounts paid or charged for tangible personal property if within this state the
             2958      tangible personal property is:
             2959          (i) stored;


             2960          (ii) used; or
             2961          (iii) consumed; and
             2962          (m) amounts paid or charged for a sale:
             2963          (i) (A) of a product that:
             2964          (I) is transferred electronically; and
             2965          (II) would be subject to a tax under this chapter if the product was transferred in a
             2966      manner other than electronically; or
             2967          (B) of a repair or renovation of a product that:
             2968          (I) is transferred electronically; and
             2969          (II) would be subject to a tax under this chapter if the product was transferred in a
             2970      manner other than electronically; and
             2971          (ii) regardless of whether the sale provides:
             2972          (A) a right of permanent use of the product; or
             2973          (B) a right to use the product that is less than a permanent use, including a right:
             2974          (I) for a definite or specified length of time; and
             2975          (II) that terminates upon the occurrence of a condition.
             2976          (2) (a) Except as provided in [Subsections (2)(b) through (e)] Subsection (2)(b) or (c),
             2977      a state tax and a local tax is imposed on a transaction described in Subsection (1) equal to the
             2978      sum of:
             2979          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             2980          (A) 4.70%; and
             2981          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             2982      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             2983      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             2984      State Sales and Use Tax Act; and
             2985          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             2986      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             2987      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             2988      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             2989          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2990      transaction under this chapter other than this part.


             2991          (b) Except as provided in Subsection (2)[(d) or (e)](c) or (d), a state tax and a local tax
             2992      is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
             2993          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             2994          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             2995      transaction under this chapter other than this part.
             2996          [(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is
             2997      imposed on amounts paid or charged for food and food ingredients equal to the sum of:]
             2998          [(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             2999      a tax rate of 1.75%; and]
             3000          [(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3001      amounts paid or charged for food and food ingredients under this chapter other than this part.]
             3002          [(d) (i) For a bundled transaction that is attributable to food and food ingredients and
             3003      tangible personal property other than food and food ingredients, a state tax and a local tax is
             3004      imposed on the entire bundled transaction equal to the sum of:]
             3005          [(A) a state tax imposed on the entire bundled transaction equal to the sum of:]
             3006          [(I) the tax rate described in Subsection (2)(a)(i)(A); and]
             3007          [(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             3008      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             3009      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             3010      Additional State Sales and Use Tax Act; and]
             3011          [(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             3012      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             3013      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             3014      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and]
             3015          [(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             3016      described in Subsection (2)(a)(ii).]
             3017          [(ii)] (c) (i) Subject to Subsection (2)[(d)(iii)](c)(ii), for a bundled transaction [other
             3018      than a bundled transaction described in Subsection (2)(d)(i)]:
             3019          (A) if the sales price of the bundled transaction is attributable to tangible personal
             3020      property, a product, or a service that is subject to taxation under this chapter and tangible
             3021      personal property, a product, or service that is not subject to taxation under this chapter, the


             3022      entire bundled transaction is subject to taxation under this chapter unless:
             3023          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             3024      personal property, product, or service that is not subject to taxation under this chapter from the
             3025      books and records the seller keeps in the seller's regular course of business; or
             3026          (II) state or federal law provides otherwise; or
             3027          (B) if the sales price of a bundled transaction is attributable to two or more items of
             3028      tangible personal property, products, or services that are subject to taxation under this chapter
             3029      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             3030      higher tax rate unless:
             3031          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             3032      personal property, product, or service that is subject to taxation under this chapter at the lower
             3033      tax rate from the books and records the seller keeps in the seller's regular course of business; or