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S.B. 296

             1     

AMENDMENTS TO TAX PROVISIONS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to sales and use taxes imposed on certain accommodations and
             10      services.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    makes changes related to the taxation and collection of taxes imposed on hotel
             15      accommodations and services if a transaction involves a room remarketer;
             16          .    grants rulemaking authority to the State Tax Commission; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill takes effect on July 1, 2011.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-12-102, as last amended by Laws of Utah 2010, Chapters 88, 142, 234, and 263
             25          59-12-103, as last amended by Laws of Utah 2010, Chapter 412
             26      ENACTS:
             27          59-12-104.6, Utah Code Annotated 1953


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 59-12-102 is amended to read:
             31           59-12-102. Definitions.
             32          As used in this chapter:
             33          (1) "800 service" means a telecommunications service that:
             34          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             35          (b) is typically marketed:
             36          (i) under the name 800 toll-free calling;
             37          (ii) under the name 855 toll-free calling;
             38          (iii) under the name 866 toll-free calling;
             39          (iv) under the name 877 toll-free calling;
             40          (v) under the name 888 toll-free calling; or
             41          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             42      Federal Communications Commission.
             43          (2) (a) "900 service" means an inbound toll telecommunications service that:
             44          (i) a subscriber purchases;
             45          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             46      the subscriber's:
             47          (A) prerecorded announcement; or
             48          (B) live service; and
             49          (iii) is typically marketed:
             50          (A) under the name 900 service; or
             51          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             52      Communications Commission.
             53          (b) "900 service" does not include a charge for:
             54          (i) a collection service a seller of a telecommunications service provides to a
             55      subscriber; or
             56          (ii) the following a subscriber sells to the subscriber's customer:
             57          (A) a product; or
             58          (B) a service.


             59          (3) (a) "Admission or user fees" includes season passes.
             60          (b) "Admission or user fees" does not include annual membership dues to private
             61      organizations.
             62          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             63      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             64      Agreement after November 12, 2002.
             65          (5) "Agreement combined tax rate" means the sum of the tax rates:
             66          (a) listed under Subsection (6); and
             67          (b) that are imposed within a local taxing jurisdiction.
             68          (6) "Agreement sales and use tax" means a tax imposed under:
             69          (a) Subsection 59-12-103 (2)(a)(i)(A);
             70          (b) Subsection 59-12-103 (2)(b)(i);
             71          (c) Subsection 59-12-103 (2)(c)(i);
             72          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             73          (e) Section 59-12-204 ;
             74          (f) Section 59-12-401 ;
             75          (g) Section 59-12-402 ;
             76          (h) Section 59-12-703 ;
             77          (i) Section 59-12-802 ;
             78          (j) Section 59-12-804 ;
             79          (k) Section 59-12-1102 ;
             80          (l) Section 59-12-1302 ;
             81          (m) Section 59-12-1402 ;
             82          (n) Section 59-12-1802 ;
             83          (o) Section 59-12-2003 ;
             84          (p) Section 59-12-2103 ;
             85          (q) Section 59-12-2213 ;
             86          (r) Section 59-12-2214 ;
             87          (s) Section 59-12-2215 ;
             88          (t) Section 59-12-2216 ;
             89          (u) Section 59-12-2217 ; or


             90          (v) Section 59-12-2218 .
             91          (7) "Aircraft" is as defined in Section 72-10-102 .
             92          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             93          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             94      in Subsection 59-12-107 (1)(f) of an airline; and
             95          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             96      whether the business entity performs the following in this state:
             97          (i) check, diagnose, overhaul, and repair:
             98          (A) an onboard system of a fixed wing turbine powered aircraft; and
             99          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             100          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             101      engine;
             102          (iii) perform at least the following maintenance on a fixed wing turbine powered
             103      aircraft:
             104          (A) an inspection;
             105          (B) a repair, including a structural repair or modification;
             106          (C) changing landing gear; and
             107          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             108          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             109      completely apply new paint to the fixed wing turbine powered aircraft; and
             110          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             111      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             112      authority that certifies the fixed wing turbine powered aircraft.
             113          (9) "Alcoholic beverage" means a beverage that:
             114          (a) is suitable for human consumption; and
             115          (b) contains .5% or more alcohol by volume.
             116          (10) (a) "Ancillary service" means a service associated with, or incidental to, the
             117      provision of telecommunications service.
             118          (b) "Ancillary service" includes:
             119          (i) a conference bridging service;
             120          (ii) a detailed communications billing service;


             121          (iii) directory assistance;
             122          (iv) a vertical service; or
             123          (v) a voice mail service.
             124          (11) "Area agency on aging" is as defined in Section 62A-3-101 .
             125          (12) "Assisted amusement device" means an amusement device, skill device, or ride
             126      device that is started and stopped by an individual:
             127          (a) who is not the purchaser or renter of the right to use or operate the amusement
             128      device, skill device, or ride device; and
             129          (b) at the direction of the seller of the right to use the amusement device, skill device,
             130      or ride device.
             131          (13) "Assisted cleaning or washing of tangible personal property" means cleaning or
             132      washing of tangible personal property if the cleaning or washing labor is primarily performed
             133      by an individual:
             134          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             135      property; and
             136          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             137      property.
             138          (14) "Authorized carrier" means:
             139          (a) in the case of vehicles operated over public highways, the holder of credentials
             140      indicating that the vehicle is or will be operated pursuant to both the International Registration
             141      Plan and the International Fuel Tax Agreement;
             142          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             143      certificate or air carrier's operating certificate; or
             144          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             145      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             146          (15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of the
             147      following that is used as the primary source of energy to produce fuel or electricity:
             148          (i) material from a plant or tree; or
             149          (ii) other organic matter that is available on a renewable basis, including:
             150          (A) slash and brush from forests and woodlands;
             151          (B) animal waste;


             152          (C) methane produced:
             153          (I) at landfills; or
             154          (II) as a byproduct of the treatment of wastewater residuals;
             155          (D) aquatic plants; and
             156          (E) agricultural products.
             157          (b) "Biomass energy" does not include:
             158          (i) black liquor;
             159          (ii) treated woods; or
             160          (iii) biomass from municipal solid waste other than methane produced:
             161          (A) at landfills; or
             162          (B) as a byproduct of the treatment of wastewater residuals.
             163          (16) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             164      property, products, or services if the tangible personal property, products, or services are:
             165          (i) distinct and identifiable; and
             166          (ii) sold for one nonitemized price.
             167          (b) "Bundled transaction" does not include:
             168          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             169      the basis of the selection by the purchaser of the items of tangible personal property included in
             170      the transaction;
             171          (ii) the sale of real property;
             172          (iii) the sale of services to real property;
             173          (iv) the retail sale of tangible personal property and a service if:
             174          (A) the tangible personal property:
             175          (I) is essential to the use of the service; and
             176          (II) is provided exclusively in connection with the service; and
             177          (B) the service is the true object of the transaction;
             178          (v) the retail sale of two services if:
             179          (A) one service is provided that is essential to the use or receipt of a second service;
             180          (B) the first service is provided exclusively in connection with the second service; and
             181          (C) the second service is the true object of the transaction;
             182          (vi) a transaction that includes tangible personal property or a product subject to


             183      taxation under this chapter and tangible personal property or a product that is not subject to
             184      taxation under this chapter if the:
             185          (A) seller's purchase price of the tangible personal property or product subject to
             186      taxation under this chapter is de minimis; or
             187          (B) seller's sales price of the tangible personal property or product subject to taxation
             188      under this chapter is de minimis; and
             189          (vii) the retail sale of tangible personal property that is not subject to taxation under
             190      this chapter and tangible personal property that is subject to taxation under this chapter if:
             191          (A) that retail sale includes:
             192          (I) food and food ingredients;
             193          (II) a drug;
             194          (III) durable medical equipment;
             195          (IV) mobility enhancing equipment;
             196          (V) an over-the-counter drug;
             197          (VI) a prosthetic device; or
             198          (VII) a medical supply; and
             199          (B) subject to Subsection (16)(f):
             200          (I) the seller's purchase price of the tangible personal property subject to taxation under
             201      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             202          (II) the seller's sales price of the tangible personal property subject to taxation under
             203      this chapter is 50% or less of the seller's total sales price of that retail sale.
             204          (c) (i) For purposes of Subsection (16)(a)(i), tangible personal property, a product, or a
             205      service that is distinct and identifiable does not include:
             206          (A) packaging that:
             207          (I) accompanies the sale of the tangible personal property, product, or service; and
             208          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             209      service;
             210          (B) tangible personal property, a product, or a service provided free of charge with the
             211      purchase of another item of tangible personal property, a product, or a service; or
             212          (C) an item of tangible personal property, a product, or a service included in the
             213      definition of "purchase price."


             214          (ii) For purposes of Subsection (16)(c)(i)(B), an item of tangible personal property, a
             215      product, or a service is provided free of charge with the purchase of another item of tangible
             216      personal property, a product, or a service if the sales price of the purchased item of tangible
             217      personal property, product, or service does not vary depending on the inclusion of the tangible
             218      personal property, product, or service provided free of charge.
             219          (d) (i) For purposes of Subsection (16)(a)(ii), property sold for one nonitemized price
             220      does not include a price that is separately identified by tangible personal property, product, or
             221      service on the following, regardless of whether the following is in paper format or electronic
             222      format:
             223          (A) a binding sales document; or
             224          (B) another supporting sales-related document that is available to a purchaser.
             225          (ii) For purposes of Subsection (16)(d)(i), a binding sales document or another
             226      supporting sales-related document that is available to a purchaser includes:
             227          (A) a bill of sale;
             228          (B) a contract;
             229          (C) an invoice;
             230          (D) a lease agreement;
             231          (E) a periodic notice of rates and services;
             232          (F) a price list;
             233          (G) a rate card;
             234          (H) a receipt; or
             235          (I) a service agreement.
             236          (e) (i) For purposes of Subsection (16)(b)(vi), the sales price of tangible personal
             237      property or a product subject to taxation under this chapter is de minimis if:
             238          (A) the seller's purchase price of the tangible personal property or product is 10% or
             239      less of the seller's total purchase price of the bundled transaction; or
             240          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             241      the seller's total sales price of the bundled transaction.
             242          (ii) For purposes of Subsection (16)(b)(vi), a seller:
             243          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             244      purchase price or sales price of the tangible personal property or product subject to taxation


             245      under this chapter is de minimis; and
             246          (B) may not use a combination of the seller's purchase price and the seller's sales price
             247      to determine if the purchase price or sales price of the tangible personal property or product
             248      subject to taxation under this chapter is de minimis.
             249          (iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a service
             250      contract to determine if the sales price of tangible personal property or a product is de minimis.
             251          (f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of
             252      the seller's purchase price and the seller's sales price to determine if tangible personal property
             253      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             254      price of that retail sale.
             255          (17) "Certified automated system" means software certified by the governing board of
             256      the agreement that:
             257          (a) calculates the agreement sales and use tax imposed within a local taxing
             258      jurisdiction:
             259          (i) on a transaction; and
             260          (ii) in the states that are members of the agreement;
             261          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             262      member of the agreement; and
             263          (c) maintains a record of the transaction described in Subsection (17)(a)(i).
             264          (18) "Certified service provider" means an agent certified:
             265          (a) by the governing board of the agreement; and
             266          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             267      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             268      own purchases.
             269          (19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparel
             270      suitable for general use.
             271          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             272      commission shall make rules:
             273          (i) listing the items that constitute "clothing"; and
             274          (ii) that are consistent with the list of items that constitute "clothing" under the
             275      agreement.


             276          (20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             277          (21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             278      fuels that does not constitute industrial use under Subsection (48) or residential use under
             279      Subsection (94).
             280          (22) (a) "Common carrier" means a person engaged in or transacting the business of
             281      transporting passengers, freight, merchandise, or other property for hire within this state.
             282          (b) (i) "Common carrier" does not include a person who, at the time the person is
             283      traveling to or from that person's place of employment, transports a passenger to or from the
             284      passenger's place of employment.
             285          (ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3,
             286      Utah Administrative Rulemaking Act, the commission may make rules defining what
             287      constitutes a person's place of employment.
             288          (23) "Component part" includes:
             289          (a) poultry, dairy, and other livestock feed, and their components;
             290          (b) baling ties and twine used in the baling of hay and straw;
             291          (c) fuel used for providing temperature control of orchards and commercial
             292      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             293      off-highway type farm machinery; and
             294          (d) feed, seeds, and seedlings.
             295          (24) "Computer" means an electronic device that accepts information:
             296          (a) (i) in digital form; or
             297          (ii) in a form similar to digital form; and
             298          (b) manipulates that information for a result based on a sequence of instructions.
             299          (25) "Computer software" means a set of coded instructions designed to cause:
             300          (a) a computer to perform a task; or
             301          (b) automatic data processing equipment to perform a task.
             302          (26) (a) "Conference bridging service" means an ancillary service that links two or
             303      more participants of an audio conference call or video conference call.
             304          (b) "Conference bridging service" includes providing a telephone number as part of the
             305      ancillary service described in Subsection (26)(a).
             306          (c) "Conference bridging service" does not include a telecommunications service used


             307      to reach the ancillary service described in Subsection (26)(a).
             308          (27) "Construction materials" means any tangible personal property that will be
             309      converted into real property.
             310          (28) "Delivered electronically" means delivered to a purchaser by means other than
             311      tangible storage media.
             312          (29) (a) "Delivery charge" means a charge:
             313          (i) by a seller of:
             314          (A) tangible personal property;
             315          (B) a product transferred electronically; or
             316          (C) services; and
             317          (ii) for preparation and delivery of the tangible personal property, product transferred
             318      electronically, or services described in Subsection (29)(a)(i) to a location designated by the
             319      purchaser.
             320          (b) "Delivery charge" includes a charge for the following:
             321          (i) transportation;
             322          (ii) shipping;
             323          (iii) postage;
             324          (iv) handling;
             325          (v) crating; or
             326          (vi) packing.
             327          (30) "Detailed telecommunications billing service" means an ancillary service of
             328      separately stating information pertaining to individual calls on a customer's billing statement.
             329          (31) "Dietary supplement" means a product, other than tobacco, that:
             330          (a) is intended to supplement the diet;
             331          (b) contains one or more of the following dietary ingredients:
             332          (i) a vitamin;
             333          (ii) a mineral;
             334          (iii) an herb or other botanical;
             335          (iv) an amino acid;
             336          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             337      dietary intake; or


             338          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             339      described in Subsections (31)(b)(i) through (v);
             340          (c) (i) except as provided in Subsection (31)(c)(ii), is intended for ingestion in:
             341          (A) tablet form;
             342          (B) capsule form;
             343          (C) powder form;
             344          (D) softgel form;
             345          (E) gelcap form; or
             346          (F) liquid form; or
             347          (ii) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in
             348      a form described in Subsections (31)(c)(i)(A) through (F), is not represented:
             349          (A) as conventional food; and
             350          (B) for use as a sole item of:
             351          (I) a meal; or
             352          (II) the diet; and
             353          (d) is required to be labeled as a dietary supplement:
             354          (i) identifiable by the "Supplemental Facts" box found on the label; and
             355          (ii) as required by 21 C.F.R. Sec. 101.36.
             356          (32) (a) "Direct mail" means printed material delivered or distributed by United States
             357      mail or other delivery service:
             358          (i) to:
             359          (A) a mass audience; or
             360          (B) addressees on a mailing list provided:
             361          (I) by a purchaser of the mailing list; or
             362          (II) at the discretion of the purchaser of the mailing list; and
             363          (ii) if the cost of the printed material is not billed directly to the recipients.
             364          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             365      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             366          (c) "Direct mail" does not include multiple items of printed material delivered to a
             367      single address.
             368          (33) "Directory assistance" means an ancillary service of providing:


             369          (a) address information; or
             370          (b) telephone number information.
             371          (34) (a) "Disposable home medical equipment or supplies" means medical equipment
             372      or supplies that:
             373          (i) cannot withstand repeated use; and
             374          (ii) are purchased by, for, or on behalf of a person other than:
             375          (A) a health care facility as defined in Section 26-21-2 ;
             376          (B) a health care provider as defined in Section 78B-3-403 ;
             377          (C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
             378          (D) a person similar to a person described in Subsections (34)(a)(ii)(A) through (C).
             379          (b) "Disposable home medical equipment or supplies" does not include:
             380          (i) a drug;
             381          (ii) durable medical equipment;
             382          (iii) a hearing aid;
             383          (iv) a hearing aid accessory;
             384          (v) mobility enhancing equipment; or
             385          (vi) tangible personal property used to correct impaired vision, including:
             386          (A) eyeglasses; or
             387          (B) contact lenses.
             388          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             389      commission may by rule define what constitutes medical equipment or supplies.
             390          (35) (a) "Drug" means a compound, substance, or preparation, or a component of a
             391      compound, substance, or preparation that is:
             392          (i) recognized in:
             393          (A) the official United States Pharmacopoeia;
             394          (B) the official Homeopathic Pharmacopoeia of the United States;
             395          (C) the official National Formulary; or
             396          (D) a supplement to a publication listed in Subsections (35)(a)(i)(A) through (C);
             397          (ii) intended for use in the:
             398          (A) diagnosis of disease;
             399          (B) cure of disease;


             400          (C) mitigation of disease;
             401          (D) treatment of disease; or
             402          (E) prevention of disease; or
             403          (iii) intended to affect:
             404          (A) the structure of the body; or
             405          (B) any function of the body.
             406          (b) "Drug" does not include:
             407          (i) food and food ingredients;
             408          (ii) a dietary supplement;
             409          (iii) an alcoholic beverage; or
             410          (iv) a prosthetic device.
             411          (36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" means
             412      equipment that:
             413          (i) can withstand repeated use;
             414          (ii) is primarily and customarily used to serve a medical purpose;
             415          (iii) generally is not useful to a person in the absence of illness or injury; and
             416          (iv) is not worn in or on the body.
             417          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             418      equipment described in Subsection (36)(a).
             419          (c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not include
             420      mobility enhancing equipment.
             421          (37) "Electronic" means:
             422          (a) relating to technology; and
             423          (b) having:
             424          (i) electrical capabilities;
             425          (ii) digital capabilities;
             426          (iii) magnetic capabilities;
             427          (iv) wireless capabilities;
             428          (v) optical capabilities;
             429          (vi) electromagnetic capabilities; or
             430          (vii) capabilities similar to Subsections (37)(b)(i) through (vi).


             431          (38) "Employee" is as defined in Section 59-10-401 .
             432          (39) "Fixed guideway" means a public transit facility that uses and occupies:
             433          (a) rail for the use of public transit; or
             434          (b) a separate right-of-way for the use of public transit.
             435          (40) "Fixed wing turbine powered aircraft" means an aircraft that:
             436          (a) is powered by turbine engines;
             437          (b) operates on jet fuel; and
             438          (c) has wings that are permanently attached to the fuselage of the aircraft.
             439          (41) "Fixed wireless service" means a telecommunications service that provides radio
             440      communication between fixed points.
             441          (42) (a) "Food and food ingredients" means substances:
             442          (i) regardless of whether the substances are in:
             443          (A) liquid form;
             444          (B) concentrated form;
             445          (C) solid form;
             446          (D) frozen form;
             447          (E) dried form; or
             448          (F) dehydrated form; and
             449          (ii) that are:
             450          (A) sold for:
             451          (I) ingestion by humans; or
             452          (II) chewing by humans; and
             453          (B) consumed for the substance's:
             454          (I) taste; or
             455          (II) nutritional value.
             456          (b) "Food and food ingredients" includes an item described in Subsection (78)(b)(iii).
             457          (c) "Food and food ingredients" does not include:
             458          (i) an alcoholic beverage;
             459          (ii) tobacco; or
             460          (iii) prepared food.
             461          (43) (a) "Fundraising sales" means sales:


             462          (i) (A) made by a school; or
             463          (B) made by a school student;
             464          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             465      materials, or provide transportation; and
             466          (iii) that are part of an officially sanctioned school activity.
             467          (b) For purposes of Subsection (43)(a)(iii), "officially sanctioned school activity"
             468      means a school activity:
             469          (i) that is conducted in accordance with a formal policy adopted by the school or school
             470      district governing the authorization and supervision of fundraising activities;
             471          (ii) that does not directly or indirectly compensate an individual teacher or other
             472      educational personnel by direct payment, commissions, or payment in kind; and
             473          (iii) the net or gross revenues from which are deposited in a dedicated account
             474      controlled by the school or school district.
             475          (44) "Geothermal energy" means energy contained in heat that continuously flows
             476      outward from the earth that is used as the sole source of energy to produce electricity.
             477          (45) "Governing board of the agreement" means the governing board of the agreement
             478      that is:
             479          (a) authorized to administer the agreement; and
             480          (b) established in accordance with the agreement.
             481          (46) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             482          (i) the executive branch of the state, including all departments, institutions, boards,
             483      divisions, bureaus, offices, commissions, and committees;
             484          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             485      Office of the Court Administrator, and similar administrative units in the judicial branch;
             486          (iii) the legislative branch of the state, including the House of Representatives, the
             487      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             488      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             489      Analyst;
             490          (iv) the National Guard;
             491          (v) an independent entity as defined in Section 63E-1-102 ; or
             492          (vi) a political subdivision as defined in Section 17B-1-102 .


             493          (b) "Governmental entity" does not include the state systems of public and higher
             494      education, including:
             495          (i) a college campus of the Utah College of Applied Technology;
             496          (ii) a school;
             497          (iii) the State Board of Education;
             498          (iv) the State Board of Regents; or
             499          (v) a state institution of higher education as defined in Section 53B-3-102 .
             500          (47) "Hydroelectric energy" means water used as the sole source of energy to produce
             501      electricity.
             502          (48) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             503      other fuels:
             504          (a) in mining or extraction of minerals;
             505          (b) in agricultural operations to produce an agricultural product up to the time of
             506      harvest or placing the agricultural product into a storage facility, including:
             507          (i) commercial greenhouses;
             508          (ii) irrigation pumps;
             509          (iii) farm machinery;
             510          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             511      registered under Title 41, Chapter 1a, Part 2, Registration; and
             512          (v) other farming activities;
             513          (c) in manufacturing tangible personal property at an establishment described in SIC
             514      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             515      Executive Office of the President, Office of Management and Budget;
             516          (d) by a scrap recycler if:
             517          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             518      one or more of the following items into prepared grades of processed materials for use in new
             519      products:
             520          (A) iron;
             521          (B) steel;
             522          (C) nonferrous metal;
             523          (D) paper;


             524          (E) glass;
             525          (F) plastic;
             526          (G) textile; or
             527          (H) rubber; and
             528          (ii) the new products under Subsection (48)(d)(i) would otherwise be made with
             529      nonrecycled materials; or
             530          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             531      cogeneration facility as defined in Section 54-2-1 .
             532          (49) (a) Except as provided in Subsection (49)(b), "installation charge" means a charge
             533      for installing:
             534          (i) tangible personal property; or
             535          (ii) a product transferred electronically.
             536          (b) "Installation charge" does not include a charge for repairs or renovations of:
             537          (i) tangible personal property; or
             538          (ii) a product transferred electronically.
             539          (50) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             540      personal property or a product transferred electronically for:
             541          (i) (A) a fixed term; or
             542          (B) an indeterminate term; and
             543          (ii) consideration.
             544          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             545      amount of consideration may be increased or decreased by reference to the amount realized
             546      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             547      Code.
             548          (c) "Lease" or "rental" does not include:
             549          (i) a transfer of possession or control of property under a security agreement or
             550      deferred payment plan that requires the transfer of title upon completion of the required
             551      payments;
             552          (ii) a transfer of possession or control of property under an agreement that requires the
             553      transfer of title:
             554          (A) upon completion of required payments; and


             555          (B) if the payment of an option price does not exceed the greater of:
             556          (I) $100; or
             557          (II) 1% of the total required payments; or
             558          (iii) providing tangible personal property along with an operator for a fixed period of
             559      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             560      designed.
             561          (d) For purposes of Subsection (50)(c)(iii), an operator is necessary for equipment to
             562      perform as designed if the operator's duties exceed the:
             563          (i) set-up of tangible personal property;
             564          (ii) maintenance of tangible personal property; or
             565          (iii) inspection of tangible personal property.
             566          (51) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             567      if the tangible storage media is not physically transferred to the purchaser.
             568          (52) "Local taxing jurisdiction" means a:
             569          (a) county that is authorized to impose an agreement sales and use tax;
             570          (b) city that is authorized to impose an agreement sales and use tax; or
             571          (c) town that is authorized to impose an agreement sales and use tax.
             572          (53) "Manufactured home" is as defined in Section 58-56-3 .
             573          (54) For purposes of Section 59-12-104 , "manufacturing facility" means:
             574          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             575      Industrial Classification Manual of the federal Executive Office of the President, Office of
             576      Management and Budget;
             577          (b) a scrap recycler if:
             578          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             579      one or more of the following items into prepared grades of processed materials for use in new
             580      products:
             581          (A) iron;
             582          (B) steel;
             583          (C) nonferrous metal;
             584          (D) paper;
             585          (E) glass;


             586          (F) plastic;
             587          (G) textile; or
             588          (H) rubber; and
             589          (ii) the new products under Subsection (54)(b)(i) would otherwise be made with
             590      nonrecycled materials; or
             591          (c) a cogeneration facility as defined in Section 54-2-1 .
             592          (55) "Member of the immediate family of the producer" means a person who is related
             593      to a producer described in Subsection 59-12-104 (20)(a) as a:
             594          (a) child or stepchild, regardless of whether the child or stepchild is:
             595          (i) an adopted child or adopted stepchild; or
             596          (ii) a foster child or foster stepchild;
             597          (b) grandchild or stepgrandchild;
             598          (c) grandparent or stepgrandparent;
             599          (d) nephew or stepnephew;
             600          (e) niece or stepniece;
             601          (f) parent or stepparent;
             602          (g) sibling or stepsibling;
             603          (h) spouse;
             604          (i) person who is the spouse of a person described in Subsections (55)(a) through (g);
             605      or
             606          (j) person similar to a person described in Subsections (55)(a) through (i) as
             607      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             608      Administrative Rulemaking Act.
             609          (56) "Mobile home" is as defined in Section 58-56-3 .
             610          (57) "Mobile telecommunications service" is as defined in the Mobile
             611      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             612          (58) (a) "Mobile wireless service" means a telecommunications service, regardless of
             613      the technology used, if:
             614          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             615          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             616          (iii) the origination point described in Subsection (58)(a)(i) and the termination point


             617      described in Subsection (58)(a)(ii) are not fixed.
             618          (b) "Mobile wireless service" includes a telecommunications service that is provided
             619      by a commercial mobile radio service provider.
             620          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             621      commission may by rule define "commercial mobile radio service provider."
             622          (59) (a) Except as provided in Subsection (59)(c), "mobility enhancing equipment"
             623      means equipment that is:
             624          (i) primarily and customarily used to provide or increase the ability to move from one
             625      place to another;
             626          (ii) appropriate for use in a:
             627          (A) home; or
             628          (B) motor vehicle; and
             629          (iii) not generally used by persons with normal mobility.
             630          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             631      the equipment described in Subsection (59)(a).
             632          (c) Notwithstanding Subsection (59)(a), "mobility enhancing equipment" does not
             633      include:
             634          (i) a motor vehicle;
             635          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             636      vehicle manufacturer;
             637          (iii) durable medical equipment; or
             638          (iv) a prosthetic device.
             639          (60) "Model 1 seller" means a seller registered under the agreement that has selected a
             640      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             641      functions for agreement sales and use taxes other than the seller's obligation under Section
             642      59-12-124 to remit a tax on the seller's own purchases.
             643          (61) "Model 2 seller" means a seller registered under the agreement that:
             644          (a) except as provided in Subsection (61)(b), has selected a certified automated system
             645      to perform the seller's sales tax functions for agreement sales and use taxes; and
             646          (b) notwithstanding Subsection (61)(a), retains responsibility for remitting all of the
             647      sales tax:


             648          (i) collected by the seller; and
             649          (ii) to the appropriate local taxing jurisdiction.
             650          (62) (a) Subject to Subsection (62)(b), "model 3 seller" means a seller registered under
             651      the agreement that has:
             652          (i) sales in at least five states that are members of the agreement;
             653          (ii) total annual sales revenues of at least $500,000,000;
             654          (iii) a proprietary system that calculates the amount of tax:
             655          (A) for an agreement sales and use tax; and
             656          (B) due to each local taxing jurisdiction; and
             657          (iv) entered into a performance agreement with the governing board of the agreement.
             658          (b) For purposes of Subsection (62)(a), "model 3 seller" includes an affiliated group of
             659      sellers using the same proprietary system.
             660          (63) "Model 4 seller" means a seller that is registered under the agreement and is not a
             661      model 1 seller, model 2 seller, or model 3 seller.
             662          (64) "Modular home" means a modular unit as defined in Section 58-56-3 .
             663          (65) "Motor vehicle" is as defined in Section 41-1a-102 .
             664          (66) "Oil shale" means a group of fine black to dark brown shales containing
             665      bituminous material that yields petroleum upon distillation.
             666          (67) (a) "Other fuels" means products that burn independently to produce heat or
             667      energy.
             668          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             669      personal property.
             670          (68) (a) "Paging service" means a telecommunications service that provides
             671      transmission of a coded radio signal for the purpose of activating a specific pager.
             672          (b) For purposes of Subsection (68)(a), the transmission of a coded radio signal
             673      includes a transmission by message or sound.
             674          (69) "Pawnbroker" is as defined in Section 13-32a-102 .
             675          (70) "Pawn transaction" is as defined in Section 13-32a-102 .
             676          (71) (a) "Permanently attached to real property" means that for tangible personal
             677      property attached to real property:
             678          (i) the attachment of the tangible personal property to the real property:


             679          (A) is essential to the use of the tangible personal property; and
             680          (B) suggests that the tangible personal property will remain attached to the real
             681      property in the same place over the useful life of the tangible personal property; or
             682          (ii) if the tangible personal property is detached from the real property, the detachment
             683      would:
             684          (A) cause substantial damage to the tangible personal property; or
             685          (B) require substantial alteration or repair of the real property to which the tangible
             686      personal property is attached.
             687          (b) "Permanently attached to real property" includes:
             688          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             689          (A) essential to the operation of the tangible personal property; and
             690          (B) attached only to facilitate the operation of the tangible personal property;
             691          (ii) a temporary detachment of tangible personal property from real property for a
             692      repair or renovation if the repair or renovation is performed where the tangible personal
             693      property and real property are located; or
             694          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             695      Subsection (71)(c)(iii) or (iv).
             696          (c) "Permanently attached to real property" does not include:
             697          (i) the attachment of portable or movable tangible personal property to real property if
             698      that portable or movable tangible personal property is attached to real property only for:
             699          (A) convenience;
             700          (B) stability; or
             701          (C) for an obvious temporary purpose;
             702          (ii) the detachment of tangible personal property from real property except for the
             703      detachment described in Subsection (71)(b)(ii);
             704          (iii) an attachment of the following tangible personal property to real property if the
             705      attachment to real property is only through a line that supplies water, electricity, gas,
             706      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             707      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             708          (A) a computer;
             709          (B) a telephone;


             710          (C) a television; or
             711          (D) tangible personal property similar to Subsections (71)(c)(iii)(A) through (C) as
             712      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             713      Administrative Rulemaking Act; or
             714          (iv) an item listed in Subsection [(111)] (114)(c).
             715          (72) "Person" includes any individual, firm, partnership, joint venture, association,
             716      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             717      municipality, district, or other local governmental entity of the state, or any group or
             718      combination acting as a unit.
             719          (73) "Place of primary use":
             720          (a) for telecommunications service other than mobile telecommunications service,
             721      means the street address representative of where the customer's use of the telecommunications
             722      service primarily occurs, which shall be:
             723          (i) the residential street address of the customer; or
             724          (ii) the primary business street address of the customer; or
             725          (b) for mobile telecommunications service, is as defined in the Mobile
             726      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             727          (74) (a) "Postpaid calling service" means a telecommunications service a person
             728      obtains by making a payment on a call-by-call basis:
             729          (i) through the use of a:
             730          (A) bank card;
             731          (B) credit card;
             732          (C) debit card; or
             733          (D) travel card; or
             734          (ii) by a charge made to a telephone number that is not associated with the origination
             735      or termination of the telecommunications service.
             736          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             737      service, that would be a prepaid wireless calling service if the service were exclusively a
             738      telecommunications service.
             739          (75) "Postproduction" means an activity related to the finishing or duplication of a
             740      medium described in Subsection 59-12-104 (54)(a).


             741          (76) "Prepaid calling service" means a telecommunications service:
             742          (a) that allows a purchaser access to telecommunications service that is exclusively
             743      telecommunications service;
             744          (b) that:
             745          (i) is paid for in advance; and
             746          (ii) enables the origination of a call using an:
             747          (A) access number; or
             748          (B) authorization code;
             749          (c) that is dialed:
             750          (i) manually; or
             751          (ii) electronically; and
             752          (d) sold in predetermined units or dollars that decline:
             753          (i) by a known amount; and
             754          (ii) with use.
             755          (77) "Prepaid wireless calling service" means a telecommunications service:
             756          (a) that provides the right to utilize:
             757          (i) mobile wireless service; and
             758          (ii) other service that is not a telecommunications service, including:
             759          (A) the download of a product transferred electronically;
             760          (B) a content service; or
             761          (C) an ancillary service;
             762          (b) that:
             763          (i) is paid for in advance; and
             764          (ii) enables the origination of a call using an:
             765          (A) access number; or
             766          (B) authorization code;
             767          (c) that is dialed:
             768          (i) manually; or
             769          (ii) electronically; and
             770          (d) sold in predetermined units or dollars that decline:
             771          (i) by a known amount; and


             772          (ii) with use.
             773          (78) (a) "Prepared food" means:
             774          (i) food:
             775          (A) sold in a heated state; or
             776          (B) heated by a seller;
             777          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             778      item; or
             779          (iii) except as provided in Subsection (78)(c), food sold with an eating utensil provided
             780      by the seller, including a:
             781          (A) plate;
             782          (B) knife;
             783          (C) fork;
             784          (D) spoon;
             785          (E) glass;
             786          (F) cup;
             787          (G) napkin; or
             788          (H) straw.
             789          (b) "Prepared food" does not include:
             790          (i) food that a seller only:
             791          (A) cuts;
             792          (B) repackages; or
             793          (C) pasteurizes; or
             794          (ii) (A) the following:
             795          (I) raw egg;
             796          (II) raw fish;
             797          (III) raw meat;
             798          (IV) raw poultry; or
             799          (V) a food containing an item described in Subsections (78)(b)(ii)(A)(I) through (IV);
             800      and
             801          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             802      Food and Drug Administration's Food Code that a consumer cook the items described in


             803      Subsection (78)(b)(ii)(A) to prevent food borne illness; or
             804          (iii) the following if sold without eating utensils provided by the seller:
             805          (A) food and food ingredients sold by a seller if the seller's proper primary
             806      classification under the 2002 North American Industry Classification System of the federal
             807      Executive Office of the President, Office of Management and Budget, is manufacturing in
             808      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             809      Manufacturing;
             810          (B) food and food ingredients sold in an unheated state:
             811          (I) by weight or volume; and
             812          (II) as a single item; or
             813          (C) a bakery item, including:
             814          (I) a bagel;
             815          (II) a bar;
             816          (III) a biscuit;
             817          (IV) bread;
             818          (V) a bun;
             819          (VI) a cake;
             820          (VII) a cookie;
             821          (VIII) a croissant;
             822          (IX) a danish;
             823          (X) a donut;
             824          (XI) a muffin;
             825          (XII) a pastry;
             826          (XIII) a pie;
             827          (XIV) a roll;
             828          (XV) a tart;
             829          (XVI) a torte; or
             830          (XVII) a tortilla.
             831          (c) Notwithstanding Subsection (78)(a)(iii), an eating utensil provided by the seller
             832      does not include the following used to transport the food:
             833          (i) a container; or


             834          (ii) packaging.
             835          (79) "Prescription" means an order, formula, or recipe that is issued:
             836          (a) (i) orally;
             837          (ii) in writing;
             838          (iii) electronically; or
             839          (iv) by any other manner of transmission; and
             840          (b) by a licensed practitioner authorized by the laws of a state.
             841          (80) (a) Except as provided in Subsection (80)(b)(ii) or (iii), "prewritten computer
             842      software" means computer software that is not designed and developed:
             843          (i) by the author or other creator of the computer software; and
             844          (ii) to the specifications of a specific purchaser.
             845          (b) "Prewritten computer software" includes:
             846          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             847      software is not designed and developed:
             848          (A) by the author or other creator of the computer software; and
             849          (B) to the specifications of a specific purchaser;
             850          (ii) notwithstanding Subsection (80)(a), computer software designed and developed by
             851      the author or other creator of the computer software to the specifications of a specific purchaser
             852      if the computer software is sold to a person other than the purchaser; or
             853          (iii) notwithstanding Subsection (80)(a) and except as provided in Subsection (80)(c),
             854      prewritten computer software or a prewritten portion of prewritten computer software:
             855          (A) that is modified or enhanced to any degree; and
             856          (B) if the modification or enhancement described in Subsection (80)(b)(iii)(A) is
             857      designed and developed to the specifications of a specific purchaser.
             858          (c) Notwithstanding Subsection (80)(b)(iii), "prewritten computer software" does not
             859      include a modification or enhancement described in Subsection (80)(b)(iii) if the charges for
             860      the modification or enhancement are:
             861          (i) reasonable; and
             862          (ii) separately stated on the invoice or other statement of price provided to the
             863      purchaser.
             864          (81) (a) "Private communication service" means a telecommunications service:


             865          (i) that entitles a customer to exclusive or priority use of one or more communications
             866      channels between or among termination points; and
             867          (ii) regardless of the manner in which the one or more communications channels are
             868      connected.
             869          (b) "Private communications service" includes the following provided in connection
             870      with the use of one or more communications channels:
             871          (i) an extension line;
             872          (ii) a station;
             873          (iii) switching capacity; or
             874          (iv) another associated service that is provided in connection with the use of one or
             875      more communications channels as defined in Section 59-12-215 .
             876          (82) (a) "Prosthetic device" means a device that is worn on or in the body to:
             877          (i) artificially replace a missing portion of the body;
             878          (ii) prevent or correct a physical deformity or physical malfunction; or
             879          (iii) support a weak or deformed portion of the body.
             880          (b) "Prosthetic device" includes:
             881          (i) parts used in the repairs or renovation of a prosthetic device;
             882          (ii) replacement parts for a prosthetic device;
             883          (iii) a dental prosthesis; or
             884          (iv) a hearing aid.
             885          (c) "Prosthetic device" does not include:
             886          (i) corrective eyeglasses; or
             887          (ii) contact lenses.
             888          (83) (a) "Protective equipment" means an item:
             889          (i) for human wear; and
             890          (ii) that is:
             891          (A) designed as protection:
             892          (I) to the wearer against injury or disease; or
             893          (II) against damage or injury of other persons or property; and
             894          (B) not suitable for general use.
             895          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             896      commission shall make rules:
             897          (i) listing the items that constitute "protective equipment"; and
             898          (ii) that are consistent with the list of items that constitute "protective equipment"
             899      under the agreement.
             900          (84) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             901      printed matter, other than a photocopy:
             902          (i) regardless of:
             903          (A) characteristics;
             904          (B) copyright;
             905          (C) form;
             906          (D) format;
             907          (E) method of reproduction; or
             908          (F) source; and
             909          (ii) made available in printed or electronic format.
             910          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             911      commission may by rule define the term "photocopy."
             912          (85) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             913          (i) valued in money; and
             914          (ii) for which tangible personal property, a product transferred electronically, or
             915      services are:
             916          (A) sold;
             917          (B) leased; or
             918          (C) rented.
             919          (b) "Purchase price" and "sales price" include:
             920          (i) the seller's cost of the tangible personal property, a product transferred
             921      electronically, or services sold;
             922          (ii) expenses of the seller, including:
             923          (A) the cost of materials used;
             924          (B) a labor cost;
             925          (C) a service cost;
             926          (D) interest;


             927          (E) a loss;
             928          (F) the cost of transportation to the seller; or
             929          (G) a tax imposed on the seller;
             930          (iii) a charge by the seller for any service necessary to complete the sale; or
             931          (iv) consideration a seller receives from a person other than the purchaser if:
             932          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             933      and
             934          (II) the consideration described in Subsection (85)(b)(iv)(A)(I) is directly related to a
             935      price reduction or discount on the sale;
             936          (B) the seller has an obligation to pass the price reduction or discount through to the
             937      purchaser;
             938          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             939      the seller at the time of the sale to the purchaser; and
             940          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             941      seller to claim a price reduction or discount; and
             942          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             943      coupon, or other documentation with the understanding that the person other than the seller
             944      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             945          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             946      organization allowed a price reduction or discount, except that a preferred customer card that is
             947      available to any patron of a seller does not constitute membership in a group or organization
             948      allowed a price reduction or discount; or
             949          (III) the price reduction or discount is identified as a third party price reduction or
             950      discount on the:
             951          (Aa) invoice the purchaser receives; or
             952          (Bb) certificate, coupon, or other documentation the purchaser presents.
             953          (c) "Purchase price" and "sales price" do not include:
             954          (i) a discount:
             955          (A) in a form including:
             956          (I) cash;
             957          (II) term; or


             958          (III) coupon;
             959          (B) that is allowed by a seller;
             960          (C) taken by a purchaser on a sale; and
             961          (D) that is not reimbursed by a third party; or
             962          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             963      provided to the purchaser:
             964          (A) the following from credit extended on the sale of tangible personal property or
             965      services:
             966          (I) a carrying charge;
             967          (II) a financing charge; or
             968          (III) an interest charge;
             969          (B) a delivery charge;
             970          (C) an installation charge;
             971          (D) a manufacturer rebate on a motor vehicle; or
             972          (E) a tax or fee legally imposed directly on the consumer.
             973          (86) "Purchaser" means a person to whom:
             974          (a) a sale of tangible personal property is made;
             975          (b) a product is transferred electronically; or
             976          (c) a service is furnished.
             977          (87) "Regularly rented" means:
             978          (a) rented to a guest for value three or more times during a calendar year; or
             979          (b) advertised or held out to the public as a place that is regularly rented to guests for
             980      value.
             981          (88) "Renewable energy" means:
             982          (a) biomass energy;
             983          (b) hydroelectric energy;
             984          (c) geothermal energy;
             985          (d) solar energy; or
             986          (e) wind energy.
             987          (89) (a) "Renewable energy production facility" means a facility that:
             988          (i) uses renewable energy to produce electricity; and


             989          (ii) has a production capacity of 20 kilowatts or greater.
             990          (b) A facility is a renewable energy production facility regardless of whether the
             991      facility is:
             992          (i) connected to an electric grid; or
             993          (ii) located on the premises of an electricity consumer.
             994          (90) "Rental" is as defined in Subsection (50).
             995          (91) "Repairs or renovations of tangible personal property" means:
             996          (a) a repair or renovation of tangible personal property that is not permanently attached
             997      to real property; or
             998          (b) attaching tangible personal property or a product that is transferred electronically to
             999      other tangible personal property if the other tangible personal property to which the tangible
             1000      personal property or product that is transferred electronically is attached is not permanently
             1001      attached to real property.
             1002          (92) "Research and development" means the process of inquiry or experimentation
             1003      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1004      preparing those devices, technologies, or applications for marketing.
             1005          (93) (a) "Residential telecommunications services" means a telecommunications
             1006      service or an ancillary service that is provided to an individual for personal use:
             1007          (i) at a residential address; or
             1008          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1009      service or ancillary service is provided to and paid for by the individual residing at the
             1010      institution rather than the institution.
             1011          (b) For purposes of Subsection (93)(a), a residential address includes an:
             1012          (i) apartment; or
             1013          (ii) other individual dwelling unit.
             1014          (94) "Residential use" means the use in or around a home, apartment building, sleeping
             1015      quarters, and similar facilities or accommodations.
             1016          (95) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1017      than:
             1018          (a) resale;
             1019          (b) sublease; or


             1020          (c) subrent.
             1021          (96) (a) "Retailer" means any person engaged in a regularly organized business in
             1022      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1023      who is selling to the user or consumer and not for resale.
             1024          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1025      engaged in the business of selling to users or consumers within the state.
             1026          (97) "Room additional charge" means the difference between:
             1027          (a) the amount received by a room remarketer from a purchaser for the purchase of
             1028      accommodations and services described in Subsection 59-12-103 (1)(i); and
             1029          (b) the room net charge.
             1030          (98) "Room net charge" means the amount received by an owner or operator of
             1031      accommodations and services described in Subsection 59-12-103 (1)(i) from a room remarketer.
             1032          (99) (a) Except as provided in Subsection (99)(b), "room remarketer" means a person
             1033      that has an ability, access, authority, or a right, through an Internet transaction or other means,
             1034      to arrange for, book, broker, distribute, facilitate, offer, remarket, resell, or reserve the transfer
             1035      of accommodations and services described in Subsection 59-12-103 (1)(i) that are subject to a
             1036      tax under this chapter.
             1037          (b) "Room remarketer" does not include an owner or operator of accommodations and
             1038      services described in Subsection 59-12-103 (1)(i).
             1039          [(97)] (100) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1040      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1041      Subsection 59-12-103 (1), for consideration.
             1042          (b) "Sale" includes:
             1043          (i) installment and credit sales;
             1044          (ii) any closed transaction constituting a sale;
             1045          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1046      chapter;
             1047          (iv) any transaction if the possession of property is transferred but the seller retains the
             1048      title as security for the payment of the price; and
             1049          (v) any transaction under which right to possession, operation, or use of any article of
             1050      tangible personal property is granted under a lease or contract and the transfer of possession


             1051      would be taxable if an outright sale were made.
             1052          [(98)] (101) "Sale at retail" is as defined in Subsection (95).
             1053          [(99)] (102) "Sale-leaseback transaction" means a transaction by which title to tangible
             1054      personal property or a product transferred electronically that is subject to a tax under this
             1055      chapter is transferred:
             1056          (a) by a purchaser-lessee;
             1057          (b) to a lessor;
             1058          (c) for consideration; and
             1059          (d) if:
             1060          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1061      of the tangible personal property or product transferred electronically;
             1062          (ii) the sale of the tangible personal property or product transferred electronically to the
             1063      lessor is intended as a form of financing:
             1064          (A) for the tangible personal property or product transferred electronically; and
             1065          (B) to the purchaser-lessee; and
             1066          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1067      is required to:
             1068          (A) capitalize the tangible personal property or product transferred electronically for
             1069      financial reporting purposes; and
             1070          (B) account for the lease payments as payments made under a financing arrangement.
             1071          [(100)] (103) "Sales price" is as defined in Subsection (85).
             1072          [(101)] (104) (a) "Sales relating to schools" means the following sales by, amounts
             1073      paid to, or amounts charged by a school:
             1074          (i) sales that are directly related to the school's educational functions or activities
             1075      including:
             1076          (A) the sale of:
             1077          (I) textbooks;
             1078          (II) textbook fees;
             1079          (III) laboratory fees;
             1080          (IV) laboratory supplies; or
             1081          (V) safety equipment;


             1082          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1083      that:
             1084          (I) a student is specifically required to wear as a condition of participation in a
             1085      school-related event or school-related activity; and
             1086          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1087      place of ordinary clothing;
             1088          (C) sales of the following if the net or gross revenues generated by the sales are
             1089      deposited into a school district fund or school fund dedicated to school meals:
             1090          (I) food and food ingredients; or
             1091          (II) prepared food; or
             1092          (D) transportation charges for official school activities; or
             1093          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1094      event or school-related activity.
             1095          (b) "Sales relating to schools" does not include:
             1096          (i) bookstore sales of items that are not educational materials or supplies;
             1097          (ii) except as provided in Subsection [(101)] (104)(a)(i)(B):
             1098          (A) clothing;
             1099          (B) clothing accessories or equipment;
             1100          (C) protective equipment; or
             1101          (D) sports or recreational equipment; or
             1102          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1103      event or school-related activity if the amounts paid or charged are passed through to a person:
             1104          (A) other than a:
             1105          (I) school;
             1106          (II) nonprofit organization authorized by a school board or a governing body of a
             1107      private school to organize and direct a competitive secondary school activity; or
             1108          (III) nonprofit association authorized by a school board or a governing body of a
             1109      private school to organize and direct a competitive secondary school activity; and
             1110          (B) that is required to collect sales and use taxes under this chapter.
             1111          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1112      commission may make rules defining the term "passed through."


             1113          [(102)] (105) For purposes of this section and Section 59-12-104 , "school":
             1114          (a) means:
             1115          (i) an elementary school or a secondary school that:
             1116          (A) is a:
             1117          (I) public school; or
             1118          (II) private school; and
             1119          (B) provides instruction for one or more grades kindergarten through 12; or
             1120          (ii) a public school district; and
             1121          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1122          [(103)] (106) "Seller" means a person that makes a sale, lease, or rental of:
             1123          (a) tangible personal property;
             1124          (b) a product transferred electronically; or
             1125          (c) a service.
             1126          [(104)] (107) (a) "Semiconductor fabricating, processing, research, or development
             1127      materials" means tangible personal property or a product transferred electronically if the
             1128      tangible personal property or product transferred electronically is:
             1129          (i) used primarily in the process of:
             1130          (A) (I) manufacturing a semiconductor;
             1131          (II) fabricating a semiconductor; or
             1132          (III) research or development of a:
             1133          (Aa) semiconductor; or
             1134          (Bb) semiconductor manufacturing process; or
             1135          (B) maintaining an environment suitable for a semiconductor; or
             1136          (ii) consumed primarily in the process of:
             1137          (A) (I) manufacturing a semiconductor;
             1138          (II) fabricating a semiconductor; or
             1139          (III) research or development of a:
             1140          (Aa) semiconductor; or
             1141          (Bb) semiconductor manufacturing process; or
             1142          (B) maintaining an environment suitable for a semiconductor.
             1143          (b) "Semiconductor fabricating, processing, research, or development materials"


             1144      includes:
             1145          (i) parts used in the repairs or renovations of tangible personal property or a product
             1146      transferred electronically described in Subsection [(104)] (107)(a); or
             1147          (ii) a chemical, catalyst, or other material used to:
             1148          (A) produce or induce in a semiconductor a:
             1149          (I) chemical change; or
             1150          (II) physical change;
             1151          (B) remove impurities from a semiconductor; or
             1152          (C) improve the marketable condition of a semiconductor.
             1153          [(105)] (108) "Senior citizen center" means a facility having the primary purpose of
             1154      providing services to the aged as defined in Section 62A-3-101 .
             1155          [(106)] (109) "Simplified electronic return" means the electronic return:
             1156          (a) described in Section 318(C) of the agreement; and
             1157          (b) approved by the governing board of the agreement.
             1158          [(107)] (110) "Solar energy" means the sun used as the sole source of energy for
             1159      producing electricity.
             1160          [(108)] (111) (a) "Sports or recreational equipment" means an item:
             1161          (i) designed for human use; and
             1162          (ii) that is:
             1163          (A) worn in conjunction with:
             1164          (I) an athletic activity; or
             1165          (II) a recreational activity; and
             1166          (B) not suitable for general use.
             1167          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1168      commission shall make rules:
             1169          (i) listing the items that constitute "sports or recreational equipment"; and
             1170          (ii) that are consistent with the list of items that constitute "sports or recreational
             1171      equipment" under the agreement.
             1172          [(109)] (112) "State" means the state of Utah, its departments, and agencies.
             1173          [(110)] (113) "Storage" means any keeping or retention of tangible personal property or
             1174      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose


             1175      except sale in the regular course of business.
             1176          [(111)] (114) (a) Except as provided in Subsection [(111)] (114)(d) or (e), "tangible
             1177      personal property" means personal property that:
             1178          (i) may be:
             1179          (A) seen;
             1180          (B) weighed;
             1181          (C) measured;
             1182          (D) felt; or
             1183          (E) touched; or
             1184          (ii) is in any manner perceptible to the senses.
             1185          (b) "Tangible personal property" includes:
             1186          (i) electricity;
             1187          (ii) water;
             1188          (iii) gas;
             1189          (iv) steam; or
             1190          (v) prewritten computer software.
             1191          (c) "Tangible personal property" includes the following regardless of whether the item
             1192      is attached to real property:
             1193          (i) a dishwasher;
             1194          (ii) a dryer;
             1195          (iii) a freezer;
             1196          (iv) a microwave;
             1197          (v) a refrigerator;
             1198          (vi) a stove;
             1199          (vii) a washer; or
             1200          (viii) an item similar to Subsections [(111)] (114)(c)(i) through (vii) as determined by
             1201      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1202      Rulemaking Act.
             1203          (d) "Tangible personal property" does not include a product that is transferred
             1204      electronically.
             1205          (e) "Tangible personal property" does not include the following if attached to real


             1206      property, regardless of whether the attachment to real property is only through a line that
             1207      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1208      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1209      Rulemaking Act:
             1210          (i) a hot water heater;
             1211          (ii) a water filtration system; or
             1212          (iii) a water softener system.
             1213          [(112)] (115) "Tar sands" means impregnated sands that yield mixtures of liquid
             1214      hydrocarbon and require further processing other than mechanical blending before becoming
             1215      finished petroleum products.
             1216          [(113)] (116) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1217      or software" means an item listed in Subsection [(113)] (116)(b) if that item is purchased or
             1218      leased primarily to enable or facilitate one or more of the following to function:
             1219          (i) telecommunications switching or routing equipment, machinery, or software; or
             1220          (ii) telecommunications transmission equipment, machinery, or software.
             1221          (b) The following apply to Subsection [(113)] (116)(a):
             1222          (i) a pole;
             1223          (ii) software;
             1224          (iii) a supplementary power supply;
             1225          (iv) temperature or environmental equipment or machinery;
             1226          (v) test equipment;
             1227          (vi) a tower; or
             1228          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1229      Subsections [(113)] (116)(b)(i) through (vi) as determined by the commission by rule made in
             1230      accordance with Subsection [(113)] (116)(c).
             1231          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1232      commission may by rule define what constitutes equipment, machinery, or software that
             1233      functions similarly to an item listed in Subsections [(113)] (116)(b)(i) through (vi).
             1234          [(114)] (117) "Telecommunications equipment, machinery, or software required for
             1235      911 service" means equipment, machinery, or software that is required to comply with 47
             1236      C.F.R. Sec. 20.18.


             1237          [(115)] (118) "Telecommunications maintenance or repair equipment, machinery, or
             1238      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1239      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1240      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1241      of the following:
             1242          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1243          (b) telecommunications switching or routing equipment, machinery, or software; or
             1244          (c) telecommunications transmission equipment, machinery, or software.
             1245          [(116)] (119) (a) "Telecommunications service" means the electronic conveyance,
             1246      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1247      point, or among or between points.
             1248          (b) "Telecommunications service" includes:
             1249          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1250      processing application is used to act:
             1251          (A) on the code, form, or protocol of the content;
             1252          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1253          (C) regardless of whether the service:
             1254          (I) is referred to as voice over Internet protocol service; or
             1255          (II) is classified by the Federal Communications Commission as enhanced or value
             1256      added;
             1257          (ii) an 800 service;
             1258          (iii) a 900 service;
             1259          (iv) a fixed wireless service;
             1260          (v) a mobile wireless service;
             1261          (vi) a postpaid calling service;
             1262          (vii) a prepaid calling service;
             1263          (viii) a prepaid wireless calling service; or
             1264          (ix) a private communications service.
             1265          (c) "Telecommunications service" does not include:
             1266          (i) advertising, including directory advertising;
             1267          (ii) an ancillary service;


             1268          (iii) a billing and collection service provided to a third party;
             1269          (iv) a data processing and information service if:
             1270          (A) the data processing and information service allows data to be:
             1271          (I) (Aa) acquired;
             1272          (Bb) generated;
             1273          (Cc) processed;
             1274          (Dd) retrieved; or
             1275          (Ee) stored; and
             1276          (II) delivered by an electronic transmission to a purchaser; and
             1277          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1278      or information;
             1279          (v) installation or maintenance of the following on a customer's premises:
             1280          (A) equipment; or
             1281          (B) wiring;
             1282          (vi) Internet access service;
             1283          (vii) a paging service;
             1284          (viii) a product transferred electronically, including:
             1285          (A) music;
             1286          (B) reading material;
             1287          (C) a ring tone;
             1288          (D) software; or
             1289          (E) video;
             1290          (ix) a radio and television audio and video programming service:
             1291          (A) regardless of the medium; and
             1292          (B) including:
             1293          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1294      programming service by a programming service provider;
             1295          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1296          (III) audio and video programming services delivered by a commercial mobile radio
             1297      service provider as defined in 47 C.F.R. Sec. 20.3;
             1298          (x) a value-added nonvoice data service; or


             1299          (xi) tangible personal property.
             1300          [(117)] (120) (a) "Telecommunications service provider" means a person that:
             1301          (i) owns, controls, operates, or manages a telecommunications service; and
             1302          (ii) engages in an activity described in Subsection [(117)] (120)(a)(i) for the shared use
             1303      with or resale to any person of the telecommunications service.
             1304          (b) A person described in Subsection [(117)] (120)(a) is a telecommunications service
             1305      provider whether or not the Public Service Commission of Utah regulates:
             1306          (i) that person; or
             1307          (ii) the telecommunications service that the person owns, controls, operates, or
             1308      manages.
             1309          [(118)] (121) (a) "Telecommunications switching or routing equipment, machinery, or
             1310      software" means an item listed in Subsection [(118)] (121)(b) if that item is purchased or
             1311      leased primarily for switching or routing:
             1312          (i) an ancillary service;
             1313          (ii) data communications;
             1314          (iii) voice communications; or
             1315          (iv) telecommunications service.
             1316          (b) The following apply to Subsection [(118)] (121)(a):
             1317          (i) a bridge;
             1318          (ii) a computer;
             1319          (iii) a cross connect;
             1320          (iv) a modem;
             1321          (v) a multiplexer;
             1322          (vi) plug in circuitry;
             1323          (vii) a router;
             1324          (viii) software;
             1325          (ix) a switch; or
             1326          (x) equipment, machinery, or software that functions similarly to an item listed in
             1327      Subsections [(118)] (121)(b)(i) through (ix) as determined by the commission by rule made in
             1328      accordance with Subsection [(118)] (121)(c).
             1329          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             1330      commission may by rule define what constitutes equipment, machinery, or software that
             1331      functions similarly to an item listed in Subsections [(118)] (121)(b)(i) through (ix).
             1332          [(119)] (122) (a) "Telecommunications transmission equipment, machinery, or
             1333      software" means an item listed in Subsection [(119)] (122)(b) if that item is purchased or
             1334      leased primarily for sending, receiving, or transporting:
             1335          (i) an ancillary service;
             1336          (ii) data communications;
             1337          (iii) voice communications; or
             1338          (iv) telecommunications service.
             1339          (b) The following apply to Subsection [(119)] (122)(a):
             1340          (i) an amplifier;
             1341          (ii) a cable;
             1342          (iii) a closure;
             1343          (iv) a conduit;
             1344          (v) a controller;
             1345          (vi) a duplexer;
             1346          (vii) a filter;
             1347          (viii) an input device;
             1348          (ix) an input/output device;
             1349          (x) an insulator;
             1350          (xi) microwave machinery or equipment;
             1351          (xii) an oscillator;
             1352          (xiii) an output device;
             1353          (xiv) a pedestal;
             1354          (xv) a power converter;
             1355          (xvi) a power supply;
             1356          (xvii) a radio channel;
             1357          (xviii) a radio receiver;
             1358          (xix) a radio transmitter;
             1359          (xx) a repeater;
             1360          (xxi) software;


             1361          (xxii) a terminal;
             1362          (xxiii) a timing unit;
             1363          (xxiv) a transformer;
             1364          (xxv) a wire; or
             1365          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1366      Subsections [(119)] (122)(b)(i) through (xxv) as determined by the commission by rule made in
             1367      accordance with Subsection [(119)] (122)(c).
             1368          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1369      commission may by rule define what constitutes equipment, machinery, or software that
             1370      functions similarly to an item listed in Subsections [(119)] (122)(b)(i) through (xxv).
             1371          [(120)] (123) "Tobacco" means:
             1372          (a) a cigarette;
             1373          (b) a cigar;
             1374          (c) chewing tobacco;
             1375          (d) pipe tobacco; or
             1376          (e) any other item that contains tobacco.
             1377          [(121)] (124) "Unassisted amusement device" means an amusement device, skill
             1378      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1379      operate the amusement device, skill device, or ride device.
             1380          [(122)] (125) (a) "Use" means the exercise of any right or power over tangible personal
             1381      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1382      incident to the ownership or the leasing of that tangible personal property, product transferred
             1383      electronically, or service.
             1384          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1385      property, a product transferred electronically, or a service in the regular course of business and
             1386      held for resale.
             1387          [(123)] (126) "Value-added nonvoice data service" means a service:
             1388          (a) that otherwise meets the definition of a telecommunications service except that a
             1389      computer processing application is used to act primarily for a purpose other than conveyance,
             1390      routing, or transmission; and
             1391          (b) with respect to which a computer processing application is used to act on data or


             1392      information:
             1393          (i) code;
             1394          (ii) content;
             1395          (iii) form; or
             1396          (iv) protocol.
             1397          [(124)] (127) (a) Subject to Subsection [(124)] (127)(b), "vehicle" means the following
             1398      that are required to be titled, registered, or titled and registered:
             1399          (i) an aircraft as defined in Section 72-10-102 ;
             1400          (ii) a vehicle as defined in Section 41-1a-102 ;
             1401          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1402          (iv) a vessel as defined in Section 41-1a-102 .
             1403          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1404          (i) a vehicle described in Subsection [(124)] (127)(a); or
             1405          (ii) (A) a locomotive;
             1406          (B) a freight car;
             1407          (C) railroad work equipment; or
             1408          (D) other railroad rolling stock.
             1409          [(125)] (128) "Vehicle dealer" means a person engaged in the business of buying,
             1410      selling, or exchanging a vehicle as defined in Subsection [(124)] (127).
             1411          [(126)] (129) (a) "Vertical service" means an ancillary service that:
             1412          (i) is offered in connection with one or more telecommunications services; and
             1413          (ii) offers an advanced calling feature that allows a customer to:
             1414          (A) identify a caller; and
             1415          (B) manage multiple calls and call connections.
             1416          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1417      conference bridging service.
             1418          [(127)] (130) (a) "Voice mail service" means an ancillary service that enables a
             1419      customer to receive, send, or store a recorded message.
             1420          (b) "Voice mail service" does not include a vertical service that a customer is required
             1421      to have in order to utilize a voice mail service.
             1422          [(128)] (131) (a) Except as provided in Subsection [(128)] (131)(b), "waste energy


             1423      facility" means a facility that generates electricity:
             1424          (i) using as the primary source of energy waste materials that would be placed in a
             1425      landfill or refuse pit if it were not used to generate electricity, including:
             1426          (A) tires;
             1427          (B) waste coal; or
             1428          (C) oil shale; and
             1429          (ii) in amounts greater than actually required for the operation of the facility.
             1430          (b) "Waste energy facility" does not include a facility that incinerates:
             1431          (i) municipal solid waste;
             1432          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1433          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1434          [(129)] (132) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1435          [(130)] (133) "Wind energy" means wind used as the sole source of energy to produce
             1436      electricity.
             1437          [(131)] (134) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1438      geographic location by the United States Postal Service.
             1439          Section 2. Section 59-12-103 is amended to read:
             1440           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1441      tax revenues.
             1442          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1443      charged for the following transactions:
             1444          (a) retail sales of tangible personal property made within the state;
             1445          (b) amounts paid for:
             1446          (i) telecommunications service, other than mobile telecommunications service, that
             1447      originates and terminates within the boundaries of this state;
             1448          (ii) mobile telecommunications service that originates and terminates within the
             1449      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             1450      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1451          (iii) an ancillary service associated with a:
             1452          (A) telecommunications service described in Subsection (1)(b)(i); or
             1453          (B) mobile telecommunications service described in Subsection (1)(b)(ii);


             1454          (c) sales of the following for commercial use:
             1455          (i) gas;
             1456          (ii) electricity;
             1457          (iii) heat;
             1458          (iv) coal;
             1459          (v) fuel oil; or
             1460          (vi) other fuels;
             1461          (d) sales of the following for residential use:
             1462          (i) gas;
             1463          (ii) electricity;
             1464          (iii) heat;
             1465          (iv) coal;
             1466          (v) fuel oil; or
             1467          (vi) other fuels;
             1468          (e) sales of prepared food;
             1469          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1470      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1471      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             1472      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1473      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             1474      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             1475      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1476      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             1477      exhibition, cultural, or athletic activity;
             1478          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1479      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1480          (i) the tangible personal property; and
             1481          (ii) parts used in the repairs or renovations of the tangible personal property described
             1482      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1483      of that tangible personal property;
             1484          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for


             1485      assisted cleaning or washing of tangible personal property;
             1486          (i) subject to Section 59-12-104.6 , amounts paid or charged for tourist home, hotel,
             1487      motel, or trailer court accommodations and services that are regularly rented for less than 30
             1488      consecutive days;
             1489          (j) amounts paid or charged for laundry or dry cleaning services;
             1490          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1491      this state the tangible personal property is:
             1492          (i) stored;
             1493          (ii) used; or
             1494          (iii) otherwise consumed;
             1495          (l) amounts paid or charged for tangible personal property if within this state the
             1496      tangible personal property is:
             1497          (i) stored;
             1498          (ii) used; or
             1499          (iii) consumed; and
             1500          (m) amounts paid or charged for a sale:
             1501          (i) (A) of a product that:
             1502          (I) is transferred electronically; and
             1503          (II) would be subject to a tax under this chapter if the product was transferred in a
             1504      manner other than electronically; or
             1505          (B) of a repair or renovation of a product that:
             1506          (I) is transferred electronically; and
             1507          (II) would be subject to a tax under this chapter if the product was transferred in a
             1508      manner other than electronically; and
             1509          (ii) regardless of whether the sale provides:
             1510          (A) a right of permanent use of the product; or
             1511          (B) a right to use the product that is less than a permanent use, including a right:
             1512          (I) for a definite or specified length of time; and
             1513          (II) that terminates upon the occurrence of a condition.
             1514          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             1515      is imposed on a transaction described in Subsection (1) equal to the sum of:


             1516          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1517          (A) 4.70%; and
             1518          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             1519      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1520      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             1521      State Sales and Use Tax Act; and
             1522          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1523      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1524      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             1525      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1526          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1527      transaction under this chapter other than this part.
             1528          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1529      on a transaction described in Subsection (1)(d) equal to the sum of:
             1530          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             1531          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1532      transaction under this chapter other than this part.
             1533          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1534      on amounts paid or charged for food and food ingredients equal to the sum of:
             1535          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             1536      a tax rate of 1.75%; and
             1537          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1538      amounts paid or charged for food and food ingredients under this chapter other than this part.
             1539          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             1540      tangible personal property other than food and food ingredients, a state tax and a local tax is
             1541      imposed on the entire bundled transaction equal to the sum of:
             1542          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             1543          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             1544          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             1545      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1546      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,


             1547      Additional State Sales and Use Tax Act; and
             1548          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             1549      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1550      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             1551      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1552          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             1553      described in Subsection (2)(a)(ii).
             1554          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             1555      transaction described in Subsection (2)(d)(i):
             1556          (A) if the sales price of the bundled transaction is attributable to tangible personal
             1557      property, a product, or a service that is subject to taxation under this chapter and tangible
             1558      personal property, a product, or service that is not subject to taxation under this chapter, the
             1559      entire bundled transaction is subject to taxation under this chapter unless:
             1560          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1561      personal property, product, or service that is not subject to taxation under this chapter from the
             1562      books and records the seller keeps in the seller's regular course of business; or
             1563          (II) state or federal law provides otherwise; or
             1564          (B) if the sales price of a bundled transaction is attributable to two or more items of
             1565      tangible personal property, products, or services that are subject to taxation under this chapter
             1566      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             1567      higher tax rate unless:
             1568          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1569      personal property, product, or service that is subject to taxation under this chapter at the lower
             1570      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             1571          (II) state or federal law provides otherwise.
             1572          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             1573      seller's regular course of business includes books and records the seller keeps in the regular
             1574      course of business for nontax purposes.
             1575          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             1576      rate imposed under the following shall take effect on the first day of a calendar quarter:
             1577          (i) Subsection (2)(a)(i)(A);


             1578          (ii) Subsection (2)(b)(i);
             1579          (iii) Subsection (2)(c)(i); or
             1580          (iv) Subsection (2)(d)(i)(A)(I).
             1581          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
             1582      begins after the effective date of the tax rate increase if the billing period for the transaction
             1583      begins before the effective date of a tax rate increase imposed under:
             1584          (A) Subsection (2)(a)(i)(A);
             1585          (B) Subsection (2)(b)(i);
             1586          (C) Subsection (2)(c)(i); or
             1587          (D) Subsection (2)(d)(i)(A)(I).
             1588          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             1589      billing period that began before the effective date of the repeal of the tax or the tax rate
             1590      decrease if the billing period for the transaction begins before the effective date of the repeal of
             1591      the tax or the tax rate decrease imposed under:
             1592          (A) Subsection (2)(a)(i)(A);
             1593          (B) Subsection (2)(b)(i);
             1594          (C) Subsection (2)(c)(i); or
             1595          (D) Subsection (2)(d)(i)(A)(I).
             1596          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             1597      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             1598      or change in a tax rate takes effect:
             1599          (A) on the first day of a calendar quarter; and
             1600          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1601          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             1602          (A) Subsection (2)(a)(i)(A);
             1603          (B) Subsection (2)(b)(i);
             1604          (C) Subsection (2)(c)(i); or
             1605          (D) Subsection (2)(d)(i)(A)(I).
             1606          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1607      the commission may by rule define the term "catalogue sale."
             1608          (3) (a) The following state taxes shall be deposited into the General Fund:


             1609          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1610          (ii) the tax imposed by Subsection (2)(b)(i);
             1611          (iii) the tax imposed by Subsection (2)(c)(i); or
             1612          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1613          (b) The following local taxes shall be distributed to a county, city, or town as provided
             1614      in this chapter:
             1615          (i) the tax imposed by Subsection (2)(a)(ii);
             1616          (ii) the tax imposed by Subsection (2)(b)(ii);
             1617          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1618          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             1619          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1620      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1621      through (g):
             1622          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1623          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             1624          (B) for the fiscal year; or
             1625          (ii) $17,500,000.
             1626          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             1627      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             1628      Department of Natural Resources to:
             1629          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             1630      protect sensitive plant and animal species; or
             1631          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1632      act, to political subdivisions of the state to implement the measures described in Subsections
             1633      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             1634          (ii) Money transferred to the Department of Natural Resources under Subsection
             1635      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             1636      person to list or attempt to have listed a species as threatened or endangered under the
             1637      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1638          (iii) At the end of each fiscal year:
             1639          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources


             1640      Conservation and Development Fund created in Section 73-10-24 ;
             1641          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1642      Program Subaccount created in Section 73-10c-5 ; and
             1643          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1644      Program Subaccount created in Section 73-10c-5 .
             1645          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             1646      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1647      created in Section 4-18-6 .
             1648          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1649      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1650      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             1651      water rights.
             1652          (ii) At the end of each fiscal year:
             1653          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1654      Conservation and Development Fund created in Section 73-10-24 ;
             1655          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1656      Program Subaccount created in Section 73-10c-5 ; and
             1657          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1658      Program Subaccount created in Section 73-10c-5 .
             1659          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1660      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1661      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1662          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1663      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             1664      Development Fund may also be used to:
             1665          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1666      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1667      quantifying surface and ground water resources and describing the hydrologic systems of an
             1668      area in sufficient detail so as to enable local and state resource managers to plan for and
             1669      accommodate growth in water use without jeopardizing the resource;
             1670          (B) fund state required dam safety improvements; and


             1671          (C) protect the state's interest in interstate water compact allocations, including the
             1672      hiring of technical and legal staff.
             1673          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1674      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1675      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1676          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1677      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             1678      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             1679          (i) provide for the installation and repair of collection, treatment, storage, and
             1680      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1681          (ii) develop underground sources of water, including springs and wells; and
             1682          (iii) develop surface water sources.
             1683          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1684      2006, the difference between the following amounts shall be expended as provided in this
             1685      Subsection (5), if that difference is greater than $1:
             1686          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1687      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1688          (ii) $17,500,000.
             1689          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1690          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1691      credits; and
             1692          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1693      restoration.
             1694          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1695      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1696      created in Section 73-10-24 .
             1697          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             1698      remaining difference described in Subsection (5)(a) shall be:
             1699          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             1700      credits; and
             1701          (B) expended by the Division of Water Resources for cloud-seeding projects


             1702      authorized by Title 73, Chapter 15, Modification of Weather.
             1703          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1704      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1705      created in Section 73-10-24 .
             1706          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1707      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             1708      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             1709      Division of Water Resources for:
             1710          (i) preconstruction costs:
             1711          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1712      26, Bear River Development Act; and
             1713          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1714      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             1715          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1716      Chapter 26, Bear River Development Act;
             1717          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1718      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1719          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             1720      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1721          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             1722      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             1723          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1724      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             1725      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1726      incurred for employing additional technical staff for the administration of water rights.
             1727          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             1728      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             1729      Fund created in Section 73-10-24 .
             1730          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1731      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1732      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in


             1733      the Transportation Fund created by Section 72-2-102 .
             1734          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             1735      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             1736      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             1737      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             1738      transactions under Subsection (1).
             1739          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             1740      have been paid off and the highway projects completed that are intended to be paid from
             1741      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             1742      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             1743      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             1744      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             1745      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             1746          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             1747      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             1748      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             1749      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             1750      following taxes, which represents a portion of the approximately 17% of sales and use tax
             1751      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             1752          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1753          (ii) the tax imposed by Subsection (2)(b)(i);
             1754          (iii) the tax imposed by Subsection (2)(c)(i); and
             1755          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1756          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             1757      Subsection (7)(a), and until Subsection (8)(c) applies, for a fiscal year beginning on or after
             1758      July 1, 2011, the Division of Finance shall deposit into the Centennial Highway Fund
             1759      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             1760      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             1761      portion of the approximately 17% of sales and use tax revenues generated annually by the sales
             1762      and use tax on vehicles and vehicle-related products:
             1763          (i) the tax imposed by Subsection (2)(a)(i)(A);


             1764          (ii) the tax imposed by Subsection (2)(b)(i);
             1765          (iii) the tax imposed by Subsection (2)(c)(i); and
             1766          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1767          (c) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             1768      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             1769      highway projects completed that are intended to be paid from revenues deposited in the
             1770      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             1771      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             1772      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             1773      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             1774      which represents a portion of the approximately 17% of sales and use tax revenues generated
             1775      annually by the sales and use tax on vehicles and vehicle-related products:
             1776          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1777          (ii) the tax imposed by Subsection (2)(b)(i);
             1778          (iii) the tax imposed by Subsection (2)(c)(i); and
             1779          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1780          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             1781      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             1782      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             1783          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             1784      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             1785      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             1786      Critical Highway Needs Fund created by Section 72-2-125 .
             1787          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             1788      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             1789      have been paid off and the highway projects completed that are included in the prioritized
             1790      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             1791      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             1792      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             1793      of 2005 created by Section 72-2-124 .
             1794          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year


             1795      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             1796      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             1797          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             1798      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             1799      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             1800      amount of tax revenue generated by a .025% tax rate on the transactions described in
             1801      Subsection (1).
             1802          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             1803      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             1804      food and food ingredients, except for tax revenue generated by a bundled transaction
             1805      attributable to food and food ingredients and tangible personal property other than food and
             1806      food ingredients described in Subsection (2)(e).
             1807          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             1808      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             1809      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             1810      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             1811      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             1812      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             1813      amount of tax revenue generated by a .025% tax rate on the transactions described in
             1814      Subsection (1).
             1815          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             1816      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             1817      charged for food and food ingredients, except for tax revenue generated by a bundled
             1818      transaction attributable to food and food ingredients and tangible personal property other than
             1819      food and food ingredients described in Subsection (2)(e).
             1820          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             1821      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             1822      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             1823      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             1824      chokepoints in construction management.
             1825          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into


             1826      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             1827      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             1828      and food ingredients and tangible personal property other than food and food ingredients
             1829      described in Subsection (2)(e).
             1830          Section 3. Section 59-12-104.6 is enacted to read:
             1831          59-12-104.6. Amounts paid or charged for certain accommodations and services if
             1832      transaction involves a room remarketer.
             1833          (1) If amounts paid or charged for accommodations and services described in
             1834      Subsection 59-12-103 (1)(i) are paid to or charged by a room remarketer, the amount subject to
             1835      a tax under this chapter includes the:
             1836          (a) room net charge; and
             1837          (b) room additional charge.
             1838          (2) A room remarketer shall collect from a purchaser:
             1839          (a) the portion of the tax under this chapter that is imposed upon the room net charge;
             1840      and
             1841          (b) the portion of the tax under this chapter that is imposed upon the room additional
             1842      charge.
             1843          (3) A room remarketer shall remit to the owner or operator of the accommodations and
             1844      services described in Subsection 59-12-103 (1)(i) the amount the room remarketer collects
             1845      under Subsection (2)(a).
             1846          (4) (a) Except as provided in Subsection (4)(c), an owner or operator shall remit to the
             1847      commission the amount the owner or operator receives under Subsection (3).
             1848          (b) Except as provided in Subsection (4)(c), a room remarketer shall remit to the
             1849      commission the amount the room remarketer collects under Subsection (2)(b).
             1850          (c) If a county or municipality collects a tax under Part 3, Transient Room Tax, or Part
             1851      3A, Municipality Transient Room Tax, and does not remit the tax to the commission:
             1852          (i) an owner or operator shall remit to the county or municipality the amount the owner
             1853      or operator receives under Subsection (3); and
             1854          (ii) a room remarketer shall remit to the county or municipality the amount the room
             1855      remarketer collects under Subsection (2)(b).
             1856          (5) (a) This Subsection (5) applies to a bundled transaction that is attributable to


             1857      accommodations and services described in Subsection 59-12-103 (1)(i) and tangible personal
             1858      property or a service other than accommodations and services described in Subsection
             1859      59-12-103 (1)(i).
             1860          (b) If a room remarketer is able to determine the portion of the purchase price of a
             1861      bundled transaction that is attributable to accommodations and services described in
             1862      Subsection 59-12-103 (1)(i), the room remarketer shall determine the room additional charge on
             1863      that portion of the purchase price.
             1864          (c) If a room remarketer is unable to determine the portion of the purchase price of a
             1865      bundled transaction that is attributable to accommodations and services described in
             1866      Subsection 59-12-103 (1)(i), the room remarketer shall determine the room additional charge on
             1867      the basis of 70% of the average retail rate of similar accommodations and services, plus 15%.
             1868          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             1869      Act, the commission may make rules providing for the collection of a tax under this chapter on
             1870      a transaction involving amounts paid or charged to two or more room remarketers.
             1871          Section 4. Effective date.
             1872          This bill takes effect on July 1, 2011.




Legislative Review Note
    as of 2-18-11 7:57 AM


Office of Legislative Research and General Counsel


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