Download Zipped Enrolled WordPerfect SB0027.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 27 Enrolled

             1     

AMENDMENTS TO REVENUE AND TAXATION TITLE

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Howard A. Stephenson

             5     
House Sponsor: Brad L. Dee

             6      Cosponsor:Curtis S. Bramble              7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions in the Revenue and Taxation title to address certain issues
             11      related to the Utah Supreme Court case Ivory Homes v. Utah State Tax Commission.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends definitions;
             15          .    amends the circumstances under which a person who pays a tax, fee, or charge
             16      liability may receive a credit or refund;
             17          .    addresses the construction of a statute involving a tax, fee, or charge by the State
             18      Tax Commission or a court;
             19          .    addresses the taxability of a transaction consisting of taxable and nontaxable
             20      property, products, or services;
             21          .    addresses sales and use tax refund procedures; and
             22          .    makes technical and conforming changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          This bill provides for retrospective operation.
             27          This bill provides an effective date.
             28      Utah Code Sections Affected:


             29      AMENDS:
             30          10-1-405, as last amended by Laws of Utah 2011, Chapter 309
             31          59-1-1410, as enacted by Laws of Utah 2009, Chapter 212
             32          59-1-1417, as enacted by Laws of Utah 2009, Chapter 212
             33          59-12-102, as last amended by Laws of Utah 2011, Chapters 14, 285, and 314
             34          59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
             35          59-12-110, as last amended by Laws of Utah 2009, Chapters 203 and 212
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 10-1-405 is amended to read:
             39           10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
             40      Administrative charge -- Rulemaking authority.
             41          (1) Subject to the other provisions of this section, the commission shall collect,
             42      enforce, and administer any municipal telecommunications license tax imposed under this part
             43      pursuant to:
             44          (a) the same procedures used in the administration, collection, and enforcement of the
             45      state sales and use tax under:
             46          (i) Title 59, Chapter 1, General Taxation Policies; and
             47          (ii) Title 59, Chapter 12, Part 1, Tax Collection:
             48          (A) except for:
             49          (I) Subsection 59-12-103 (2)[(g)](i);
             50          (II) Section 59-12-104 ;
             51          (III) Section 59-12-104.1 ;
             52          (IV) Section 59-12-104.2 ;
             53          (V) Section 59-12-104.3 ;
             54          (VI) Section 59-12-107.1 ; and
             55          (VII) Section 59-12-123 ; and
             56          (B) except that for purposes of Section 59-1-1410 , the term "person" may include a


             57      customer from whom a municipal telecommunications license tax is recovered in accordance
             58      with Subsection 10-1-403 (2); and
             59          (b) a uniform interlocal agreement between the municipality that imposes the
             60      municipal telecommunications license tax and the commission:
             61          (i) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             62          (ii) that complies with Subsection (2)(a); and
             63          (iii) that is developed by rule in accordance with Subsection (2)(b).
             64          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             65      the commission shall:
             66          (i) transmit money collected under this part monthly by electronic funds transfer by the
             67      commission to the municipality;
             68          (ii) conduct audits of the municipal telecommunications license tax;
             69          (iii) retain and deposit an administrative charge in accordance with Section 59-1-306
             70      from revenues the commission collects from a tax under this part; and
             71          (iv) collect, enforce, and administer the municipal telecommunications license tax
             72      authorized under this part pursuant to the same procedures used in the administration,
             73      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             74          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             75      commission shall develop a uniform interlocal agreement that meets the requirements of this
             76      section.
             77          (3) If a telecommunications provider pays a municipal telecommunications license tax
             78      to the commission, the telecommunications provider shall pay the municipal
             79      telecommunications license tax to the commission:
             80          (a) monthly on or before the last day of the month immediately following the last day
             81      of the previous month if:
             82          (i) the telecommunications provider is required to file a sales and use tax return with
             83      the commission monthly under Section 59-12-108 ; or
             84          (ii) the telecommunications provider is not required to file a sales and use tax return


             85      under Title 59, Chapter 12, Sales and Use Tax Act; or
             86          (b) quarterly on or before the last day of the month immediately following the last day
             87      of the previous quarter if the telecommunications provider is required to file a sales and use tax
             88      return with the commission quarterly under Section 59-12-108 .
             89          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
             90      telecommunications license tax under this part at a rate that exceeds 3.5%:
             91          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
             92      shall collect the municipal telecommunications license tax:
             93          (i) within the municipality;
             94          (ii) at a rate of 3.5%; and
             95          (iii) from a telecommunications provider required to pay the municipal
             96      telecommunications license tax on or after July 1, 2007; and
             97          (b) the commission shall collect a municipal telecommunications license tax within the
             98      municipality at the rate imposed by the municipality if:
             99          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
             100      telecommunications license tax under this part at a rate of up to 3.5%;
             101          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             102      the rate of the municipal telecommunications license tax; and
             103          (iii) a telecommunications provider is required to pay the municipal
             104      telecommunications license tax on or after the day on which the ordinance described in
             105      Subsection (4)(b)(ii) takes effect.
             106          Section 2. Section 59-1-1410 is amended to read:
             107           59-1-1410. Action for collection of tax, fee, or charge -- Action for refund or
             108      credit of tax, fee, or charge -- Denial of refund claim under appeal -- Appeal of denied
             109      refund claim.
             110          (1) (a) Except as provided in Subsections (3) through (7) and Sections 59-5-114 ,
             111      59-7-519 , 59-10-536 , and 59-11-113 , the commission shall assess a tax, fee, or charge within
             112      three years after the day on which a person files a return.


             113          (b) Except as provided in Subsections (3) through (7), if the commission does not
             114      assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the
             115      commission may not commence a proceeding to collect the tax, fee, or charge.
             116          (2) (a) Except as provided in Subsection (2)(b), for purposes of this part, a return filed
             117      before the last day prescribed by statute or rule for filing the return is considered to be filed on
             118      the last day for filing the return.
             119          (b) A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is
             120      considered to be filed on April 15 of the succeeding calendar year if the return:
             121          (i) is for a period ending with or within a calendar year; and
             122          (ii) is filed before April 15 of the succeeding calendar year.
             123          (3) The commission may assess a tax, fee, or charge or commence a proceeding for the
             124      collection of a tax, fee, or charge at any time if:
             125          (a) a person:
             126          (i) files a:
             127          (A) false return with intent to evade; or
             128          (B) fraudulent return with intent to evade; or
             129          (ii) fails to file a return; or
             130          (b) the commission estimates the amount of tax, fee, or charge due in accordance with
             131      Subsection 59-1-1406 (2).
             132          (4) The commission may extend the period to make an assessment or to commence a
             133      proceeding to collect a tax, fee, or charge if:
             134          (a) the three-year period under Subsection (1) has not expired; and
             135          (b) the commission and the person sign a written agreement:
             136          (i) authorizing the extension; and
             137          (ii) providing for the length of the extension.
             138          (5) The commission may make an assessment as provided in Subsection (6) if:
             139          (a) the commission delays an audit at the request of a person;
             140          (b) the person subsequently refuses to agree to an extension request by the commission;


             141      and
             142          (c) the three-year period under Subsection (1) expires before the commission
             143      completes the audit.
             144          (6) An assessment under Subsection (5) shall be:
             145          (a) for the time period for which the commission could not make the assessment
             146      because of the expiration of the three-year period; and
             147          (b) in an amount equal to the difference between:
             148          (i) the commission's estimate of the amount of tax, fee, or charge the person would
             149      have been assessed for the time period described in Subsection (6)(a); and
             150          (ii) the amount of tax, fee, or charge the person actually paid for the time period
             151      described in Subsection (6)(a).
             152          (7) If a person erroneously pays a liability, overpays a liability, pays a liability more
             153      than once, or the commission erroneously receives, collects, or computes a liability, the
             154      commission shall:
             155          (a) credit the liability against any amount of liability the person owes; and
             156          (b) refund any balance to:
             157          (i) the person; or
             158          (ii) (A) the person's assign;
             159          (B) the person's personal representative;
             160          (C) the person's successor; or
             161          (D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the
             162      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             163      Rulemaking Act.
             164          (8) (a) Except as provided in Subsection (8)(b) or Section 19-2-124 , 59-7-522 ,
             165      59-10-529 , or 59-12-110 , the commission may not make a credit or refund unless a person files
             166      a claim with the commission within the later of:
             167          (i) three years from the due date of the return, including the period of any extension of
             168      time provided in statute for filing the return; or


             169          (ii) two years from the date the tax was paid.
             170          (b) The commission shall extend the time period for a person to file a claim under
             171      Subsection (8)(a) if:
             172          (i) the time period described in Subsection (8)(a) has not expired; and
             173          (ii) the commission and the person sign a written agreement:
             174          (A) authorizing the extension; and
             175          (B) providing for the length of the extension.
             176          (9) If the commission denies a claim for a credit or refund, a person may request a
             177      redetermination of the denial by filing a petition or request for agency action with the
             178      commission:
             179          (a) (i) within a 30-day period after the day on which the commission mails a notice of
             180      denial for the claim for credit or refund; or
             181          (ii) within a 90-day period after the day on which the commission mails a notice of
             182      denial for the claim for credit or refund, if the notice is addressed to a person outside the
             183      United States or the District of Columbia; and
             184          (b) in accordance with:
             185          (i) Section 59-1-501 ; and
             186          (ii) Title 63G, Chapter 4, Administrative Procedures Act.
             187          (10) The action of the commission on a person's petition for redetermination of a denial
             188      of a claim for credit or refund is final 30 days after the day on which the commission sends the
             189      commission's decision or order, unless the person seeks judicial review.
             190          Section 3. Section 59-1-1417 is amended to read:
             191           59-1-1417. Burden of proof -- Statutory construction.
             192          (1) In a proceeding before the commission, the burden of proof is on the petitioner
             193      except for determining the following, in which the burden of proof is on the commission:
             194          [(1)] (a) whether the petitioner committed fraud with intent to evade a tax, fee, or
             195      charge;
             196          [(2)] (b) whether the petitioner is obligated as the transferee of property of the person


             197      that originally owes a liability or a preceding transferee, but not to show that the person that
             198      originally owes a liability is obligated for the liability; and
             199          [(3)] (c) whether the petitioner is liable for an increase in a deficiency if the increase is
             200      asserted initially after a notice of deficiency is mailed in accordance with Section 59-1-1405
             201      and a petition under Part 5, Petitions for Redetermination of Deficiencies, is filed, unless the
             202      increase in the deficiency is the result of a change or correction of federal taxable income:
             203          [(a)] (i) required to be reported; and
             204          [(b)] (ii) of which the commission has no notice at the time the commission mails the
             205      notice of deficiency.
             206          (2) Regardless of whether a taxpayer has paid or remitted a tax, fee, or charge, the
             207      commission or a court considering a case involving the tax, fee, or charge shall:
             208          (a) construe a statute imposing the tax, fee, or charge strictly in favor of the taxpayer;
             209      and
             210          (b) construe a statute providing an exemption from or credit against the tax, fee, or
             211      charge strictly against the taxpayer.
             212          Section 4. Section 59-12-102 is amended to read:
             213           59-12-102. Definitions.
             214          As used in this chapter:
             215          (1) "800 service" means a telecommunications service that:
             216          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             217          (b) is typically marketed:
             218          (i) under the name 800 toll-free calling;
             219          (ii) under the name 855 toll-free calling;
             220          (iii) under the name 866 toll-free calling;
             221          (iv) under the name 877 toll-free calling;
             222          (v) under the name 888 toll-free calling; or
             223          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             224      Federal Communications Commission.


             225          (2) (a) "900 service" means an inbound toll telecommunications service that:
             226          (i) a subscriber purchases;
             227          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             228      the subscriber's:
             229          (A) prerecorded announcement; or
             230          (B) live service; and
             231          (iii) is typically marketed:
             232          (A) under the name 900 service; or
             233          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             234      Communications Commission.
             235          (b) "900 service" does not include a charge for:
             236          (i) a collection service a seller of a telecommunications service provides to a
             237      subscriber; or
             238          (ii) the following a subscriber sells to the subscriber's customer:
             239          (A) a product; or
             240          (B) a service.
             241          (3) (a) "Admission or user fees" includes season passes.
             242          (b) "Admission or user fees" does not include annual membership dues to private
             243      organizations.
             244          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             245      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             246      Agreement after November 12, 2002.
             247          (5) "Agreement combined tax rate" means the sum of the tax rates:
             248          (a) listed under Subsection (6); and
             249          (b) that are imposed within a local taxing jurisdiction.
             250          (6) "Agreement sales and use tax" means a tax imposed under:
             251          (a) Subsection 59-12-103 (2)(a)(i)(A);
             252          (b) Subsection 59-12-103 (2)(b)(I);


             253          (c) Subsection 59-12-103 (2)(c)(i);
             254          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             255          (e) Section 59-12-204 ;
             256          (f) Section 59-12-401 ;
             257          (g) Section 59-12-402 ;
             258          (h) Section 59-12-703 ;
             259          (i) Section 59-12-802 ;
             260          (j) Section 59-12-804 ;
             261          (k) Section 59-12-1102 ;
             262          (l) Section 59-12-1302 ;
             263          (m) Section 59-12-1402 ;
             264          (n) Section 59-12-1802 ;
             265          (o) Section 59-12-2003 ;
             266          (p) Section 59-12-2103 ;
             267          (q) Section 59-12-2213 ;
             268          (r) Section 59-12-2214 ;
             269          (s) Section 59-12-2215 ;
             270          (t) Section 59-12-2216 ;
             271          (u) Section 59-12-2217 ; or
             272          (v) Section 59-12-2218 .
             273          (7) "Aircraft" is as defined in Section 72-10-102 .
             274          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             275          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             276      in Subsection 59-12-107 (1)(f) of an airline; and
             277          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             278      whether the business entity performs the following in this state:
             279          (i) check, diagnose, overhaul, and repair:
             280          (A) an onboard system of a fixed wing turbine powered aircraft; and


             281          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             282          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             283      engine;
             284          (iii) perform at least the following maintenance on a fixed wing turbine powered
             285      aircraft:
             286          (A) an inspection;
             287          (B) a repair, including a structural repair or modification;
             288          (C) changing landing gear; and
             289          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             290          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             291      completely apply new paint to the fixed wing turbine powered aircraft; and
             292          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             293      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             294      authority that certifies the fixed wing turbine powered aircraft.
             295          (9) "Alcoholic beverage" means a beverage that:
             296          (a) is suitable for human consumption; and
             297          (b) contains .5% or more alcohol by volume.
             298          (10) (a) "Ancillary service" means a service associated with, or incidental to, the
             299      provision of telecommunications service.
             300          (b) "Ancillary service" includes:
             301          (i) a conference bridging service;
             302          (ii) a detailed communications billing service;
             303          (iii) directory assistance;
             304          (iv) a vertical service; or
             305          (v) a voice mail service.
             306          (11) "Area agency on aging" is as defined in Section 62A-3-101 .
             307          (12) "Assisted amusement device" means an amusement device, skill device, or ride
             308      device that is started and stopped by an individual:


             309          (a) who is not the purchaser or renter of the right to use or operate the amusement
             310      device, skill device, or ride device; and
             311          (b) at the direction of the seller of the right to use the amusement device, skill device,
             312      or ride device.
             313          (13) "Assisted cleaning or washing of tangible personal property" means cleaning or
             314      washing of tangible personal property if the cleaning or washing labor is primarily performed
             315      by an individual:
             316          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             317      property; and
             318          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             319      property.
             320          (14) "Authorized carrier" means:
             321          (a) in the case of vehicles operated over public highways, the holder of credentials
             322      indicating that the vehicle is or will be operated pursuant to both the International Registration
             323      Plan and the International Fuel Tax Agreement;
             324          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             325      certificate or air carrier's operating certificate; or
             326          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             327      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             328          (15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of the
             329      following that is used as the primary source of energy to produce fuel or electricity:
             330          (i) material from a plant or tree; or
             331          (ii) other organic matter that is available on a renewable basis, including:
             332          (A) slash and brush from forests and woodlands;
             333          (B) animal waste;
             334          (C) methane produced:
             335          (I) at landfills; or
             336          (II) as a byproduct of the treatment of wastewater residuals;


             337          (D) aquatic plants; and
             338          (E) agricultural products.
             339          (b) "Biomass energy" does not include:
             340          (i) black liquor;
             341          (ii) treated woods; or
             342          (iii) biomass from municipal solid waste other than methane produced:
             343          (A) at landfills; or
             344          (B) as a byproduct of the treatment of wastewater residuals.
             345          (16) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             346      property, products, or services if the tangible personal property, products, or services are:
             347          (i) distinct and identifiable; and
             348          (ii) sold for one nonitemized price.
             349          (b) "Bundled transaction" does not include:
             350          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             351      the basis of the selection by the purchaser of the items of tangible personal property included in
             352      the transaction;
             353          (ii) the sale of real property;
             354          (iii) the sale of services to real property;
             355          (iv) the retail sale of tangible personal property and a service if:
             356          (A) the tangible personal property:
             357          (I) is essential to the use of the service; and
             358          (II) is provided exclusively in connection with the service; and
             359          (B) the service is the true object of the transaction;
             360          (v) the retail sale of two services if:
             361          (A) one service is provided that is essential to the use or receipt of a second service;
             362          (B) the first service is provided exclusively in connection with the second service; and
             363          (C) the second service is the true object of the transaction;
             364          (vi) a transaction that includes tangible personal property or a product subject to


             365      taxation under this chapter and tangible personal property or a product that is not subject to
             366      taxation under this chapter if the:
             367          (A) seller's purchase price of the tangible personal property or product subject to
             368      taxation under this chapter is de minimis; or
             369          (B) seller's sales price of the tangible personal property or product subject to taxation
             370      under this chapter is de minimis; and
             371          (vii) the retail sale of tangible personal property that is not subject to taxation under
             372      this chapter and tangible personal property that is subject to taxation under this chapter if:
             373          (A) that retail sale includes:
             374          (I) food and food ingredients;
             375          (II) a drug;
             376          (III) durable medical equipment;
             377          (IV) mobility enhancing equipment;
             378          (V) an over-the-counter drug;
             379          (VI) a prosthetic device; or
             380          (VII) a medical supply; and
             381          (B) subject to Subsection (16)(f):
             382          (I) the seller's purchase price of the tangible personal property subject to taxation under
             383      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             384          (II) the seller's sales price of the tangible personal property subject to taxation under
             385      this chapter is 50% or less of the seller's total sales price of that retail sale.
             386          (c) (i) For purposes of Subsection (16)(a)(i), tangible personal property, a product, or a
             387      service that is distinct and identifiable does not include:
             388          (A) packaging that:
             389          (I) accompanies the sale of the tangible personal property, product, or service; and
             390          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             391      service;
             392          (B) tangible personal property, a product, or a service provided free of charge with the


             393      purchase of another item of tangible personal property, a product, or a service; or
             394          (C) an item of tangible personal property, a product, or a service included in the
             395      definition of "purchase price."
             396          (ii) For purposes of Subsection (16)(c)(i)(B), an item of tangible personal property, a
             397      product, or a service is provided free of charge with the purchase of another item of tangible
             398      personal property, a product, or a service if the sales price of the purchased item of tangible
             399      personal property, product, or service does not vary depending on the inclusion of the tangible
             400      personal property, product, or service provided free of charge.
             401          (d) (i) For purposes of Subsection (16)(a)(ii), property sold for one nonitemized price
             402      does not include a price that is separately identified by tangible personal property, product, or
             403      service on the following, regardless of whether the following is in paper format or electronic
             404      format:
             405          (A) a binding sales document; or
             406          (B) another supporting sales-related document that is available to a purchaser.
             407          (ii) For purposes of Subsection (16)(d)(i), a binding sales document or another
             408      supporting sales-related document that is available to a purchaser includes:
             409          (A) a bill of sale;
             410          (B) a contract;
             411          (C) an invoice;
             412          (D) a lease agreement;
             413          (E) a periodic notice of rates and services;
             414          (F) a price list;
             415          (G) a rate card;
             416          (H) a receipt; or
             417          (I) a service agreement.
             418          (e) (i) For purposes of Subsection (16)(b)(vi), the sales price of tangible personal
             419      property or a product subject to taxation under this chapter is de minimis if:
             420          (A) the seller's purchase price of the tangible personal property or product is 10% or


             421      less of the seller's total purchase price of the bundled transaction; or
             422          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             423      the seller's total sales price of the bundled transaction.
             424          (ii) For purposes of Subsection (16)(b)(vi), a seller:
             425          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             426      purchase price or sales price of the tangible personal property or product subject to taxation
             427      under this chapter is de minimis; and
             428          (B) may not use a combination of the seller's purchase price and the seller's sales price
             429      to determine if the purchase price or sales price of the tangible personal property or product
             430      subject to taxation under this chapter is de minimis.
             431          (iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a service
             432      contract to determine if the sales price of tangible personal property or a product is de minimis.
             433          (f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of
             434      the seller's purchase price and the seller's sales price to determine if tangible personal property
             435      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             436      price of that retail sale.
             437          (17) "Certified automated system" means software certified by the governing board of
             438      the agreement that:
             439          (a) calculates the agreement sales and use tax imposed within a local taxing
             440      jurisdiction:
             441          (i) on a transaction; and
             442          (ii) in the states that are members of the agreement;
             443          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             444      member of the agreement; and
             445          (c) maintains a record of the transaction described in Subsection (17)(a)(i).
             446          (18) "Certified service provider" means an agent certified:
             447          (a) by the governing board of the agreement; and
             448          (b) to perform all of a seller's sales and use tax functions for an agreement sales and


             449      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             450      own purchases.
             451          (19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparel
             452      suitable for general use.
             453          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             454      commission shall make rules:
             455          (i) listing the items that constitute "clothing"; and
             456          (ii) that are consistent with the list of items that constitute "clothing" under the
             457      agreement.
             458          (20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             459          (21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             460      fuels that does not constitute industrial use under Subsection (48) or residential use under
             461      Subsection (96).
             462          (22) (a) "Common carrier" means a person engaged in or transacting the business of
             463      transporting passengers, freight, merchandise, or other property for hire within this state.
             464          (b) (i) "Common carrier" does not include a person who, at the time the person is
             465      traveling to or from that person's place of employment, transports a passenger to or from the
             466      passenger's place of employment.
             467          (ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3,
             468      Utah Administrative Rulemaking Act, the commission may make rules defining what
             469      constitutes a person's place of employment.
             470          (23) "Component part" includes:
             471          (a) poultry, dairy, and other livestock feed, and their components;
             472          (b) baling ties and twine used in the baling of hay and straw;
             473          (c) fuel used for providing temperature control of orchards and commercial
             474      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             475      off-highway type farm machinery; and
             476          (d) feed, seeds, and seedlings.


             477          (24) "Computer" means an electronic device that accepts information:
             478          (a) (i) in digital form; or
             479          (ii) in a form similar to digital form; and
             480          (b) manipulates that information for a result based on a sequence of instructions.
             481          (25) "Computer software" means a set of coded instructions designed to cause:
             482          (a) a computer to perform a task; or
             483          (b) automatic data processing equipment to perform a task.
             484          (26) (a) "Conference bridging service" means an ancillary service that links two or
             485      more participants of an audio conference call or video conference call.
             486          (b) "Conference bridging service" may include providing a telephone number as part of
             487      the ancillary service described in Subsection (26)(a).
             488          (c) "Conference bridging service" does not include a telecommunications service used
             489      to reach the ancillary service described in Subsection (26)(a).
             490          (27) "Construction materials" means any tangible personal property that will be
             491      converted into real property.
             492          (28) "Delivered electronically" means delivered to a purchaser by means other than
             493      tangible storage media.
             494          (29) (a) "Delivery charge" means a charge:
             495          (i) by a seller of:
             496          (A) tangible personal property;
             497          (B) a product transferred electronically; or
             498          (C) services; and
             499          (ii) for preparation and delivery of the tangible personal property, product transferred
             500      electronically, or services described in Subsection (29)(a)(i) to a location designated by the
             501      purchaser.
             502          (b) "Delivery charge" includes a charge for the following:
             503          (i) transportation;
             504          (ii) shipping;


             505          (iii) postage;
             506          (iv) handling;
             507          (v) crating; or
             508          (vi) packing.
             509          (30) "Detailed telecommunications billing service" means an ancillary service of
             510      separately stating information pertaining to individual calls on a customer's billing statement.
             511          (31) "Dietary supplement" means a product, other than tobacco, that:
             512          (a) is intended to supplement the diet;
             513          (b) contains one or more of the following dietary ingredients:
             514          (i) a vitamin;
             515          (ii) a mineral;
             516          (iii) an herb or other botanical;
             517          (iv) an amino acid;
             518          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             519      dietary intake; or
             520          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             521      described in Subsections (31)(b)(i) through (v);
             522          (c) (i) except as provided in Subsection (31)(c)(ii), is intended for ingestion in:
             523          (A) tablet form;
             524          (B) capsule form;
             525          (C) powder form;
             526          (D) softgel form;
             527          (E) gelcap form; or
             528          (F) liquid form; or
             529          (ii) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in
             530      a form described in Subsections (31)(c)(i)(A) through (F), is not represented:
             531          (A) as conventional food; and
             532          (B) for use as a sole item of:


             533          (I) a meal; or
             534          (II) the diet; and
             535          (d) is required to be labeled as a dietary supplement:
             536          (i) identifiable by the "Supplemental Facts" box found on the label; and
             537          (ii) as required by 21 C.F.R. Sec. 101.36.
             538          (32) (a) "Direct mail" means printed material delivered or distributed by United States
             539      mail or other delivery service:
             540          (i) to:
             541          (A) a mass audience; or
             542          (B) addressees on a mailing list provided:
             543          (I) by a purchaser of the mailing list; or
             544          (II) at the discretion of the purchaser of the mailing list; and
             545          (ii) if the cost of the printed material is not billed directly to the recipients.
             546          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             547      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             548          (c) "Direct mail" does not include multiple items of printed material delivered to a
             549      single address.
             550          (33) "Directory assistance" means an ancillary service of providing:
             551          (a) address information; or
             552          (b) telephone number information.
             553          (34) (a) "Disposable home medical equipment or supplies" means medical equipment
             554      or supplies that:
             555          (i) cannot withstand repeated use; and
             556          (ii) are purchased by, for, or on behalf of a person other than:
             557          (A) a health care facility as defined in Section 26-21-2 ;
             558          (B) a health care provider as defined in Section 78B-3-403 ;
             559          (C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
             560          (D) a person similar to a person described in Subsections (34)(a)(ii)(A) through ©.


             561          (b) "Disposable home medical equipment or supplies" does not include:
             562          (i) a drug;
             563          (ii) durable medical equipment;
             564          (iii) a hearing aid;
             565          (iv) a hearing aid accessory;
             566          (v) mobility enhancing equipment; or
             567          (vi) tangible personal property used to correct impaired vision, including:
             568          (A) eyeglasses; or
             569          (B) contact lenses.
             570          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             571      commission may by rule define what constitutes medical equipment or supplies.
             572          (35) (a) "Drug" means a compound, substance, or preparation, or a component of a
             573      compound, substance, or preparation that is:
             574          (i) recognized in:
             575          (A) the official United States Pharmacopoeia;
             576          (B) the official Homeopathic Pharmacopoeia of the United States;
             577          (C) the official National Formulary; or
             578          (D) a supplement to a publication listed in Subsections (35)(a)(i)(A) through (C);
             579          (ii) intended for use in the:
             580          (A) diagnosis of disease;
             581          (B) cure of disease;
             582          (C) mitigation of disease;
             583          (D) treatment of disease; or
             584          (E) prevention of disease; or
             585          (iii) intended to affect:
             586          (A) the structure of the body; or
             587          (B) any function of the body.
             588          (b) "Drug" does not include:


             589          (i) food and food ingredients;
             590          (ii) a dietary supplement;
             591          (iii) an alcoholic beverage; or
             592          (iv) a prosthetic device.
             593          (36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" means
             594      equipment that:
             595          (i) can withstand repeated use;
             596          (ii) is primarily and customarily used to serve a medical purpose;
             597          (iii) generally is not useful to a person in the absence of illness or injury; and
             598          (iv) is not worn in or on the body.
             599          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             600      equipment described in Subsection (36)(a).
             601          (c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not include
             602      mobility enhancing equipment.
             603          (37) "Electronic" means:
             604          (a) relating to technology; and
             605          (b) having:
             606          (i) electrical capabilities;
             607          (ii) digital capabilities;
             608          (iii) magnetic capabilities;
             609          (iv) wireless capabilities;
             610          (v) optical capabilities;
             611          (vi) electromagnetic capabilities; or
             612          (vii) capabilities similar to Subsections (37)(b)(i) through (vi).
             613          (38) "Employee" is as defined in Section 59-10-401 .
             614          (39) "Fixed guideway" means a public transit facility that uses and occupies:
             615          (a) rail for the use of public transit; or
             616          (b) a separate right-of-way for the use of public transit.


             617          (40) "Fixed wing turbine powered aircraft" means an aircraft that:
             618          (a) is powered by turbine engines;
             619          (b) operates on jet fuel; and
             620          (c) has wings that are permanently attached to the fuselage of the aircraft.
             621          (41) "Fixed wireless service" means a telecommunications service that provides radio
             622      communication between fixed points.
             623          (42) (a) "Food and food ingredients" means substances:
             624          (i) regardless of whether the substances are in:
             625          (A) liquid form;
             626          (B) concentrated form;
             627          (C) solid form;
             628          (D) frozen form;
             629          (E) dried form; or
             630          (F) dehydrated form; and
             631          (ii) that are:
             632          (A) sold for:
             633          (I) ingestion by humans; or
             634          (II) chewing by humans; and
             635          (B) consumed for the substance's:
             636          (I) taste; or
             637          (II) nutritional value.
             638          (b) "Food and food ingredients" includes an item described in Subsection (79)(b)(iii).
             639          (c) "Food and food ingredients" does not include:
             640          (i) an alcoholic beverage;
             641          (ii) tobacco; or
             642          (iii) prepared food.
             643          (43) (a) "Fundraising sales" means sales:
             644          (i) (A) made by a school; or


             645          (B) made by a school student;
             646          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             647      materials, or provide transportation; and
             648          (iii) that are part of an officially sanctioned school activity.
             649          (b) For purposes of Subsection (43)(a)(iii), "officially sanctioned school activity"
             650      means a school activity:
             651          (i) that is conducted in accordance with a formal policy adopted by the school or school
             652      district governing the authorization and supervision of fundraising activities;
             653          (ii) that does not directly or indirectly compensate an individual teacher or other
             654      educational personnel by direct payment, commissions, or payment in kind; and
             655          (iii) the net or gross revenues from which are deposited in a dedicated account
             656      controlled by the school or school district.
             657          (44) "Geothermal energy" means energy contained in heat that continuously flows
             658      outward from the earth that is used as the sole source of energy to produce electricity.
             659          (45) "Governing board of the agreement" means the governing board of the agreement
             660      that is:
             661          (a) authorized to administer the agreement; and
             662          (b) established in accordance with the agreement.
             663          (46) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             664          (i) the executive branch of the state, including all departments, institutions, boards,
             665      divisions, bureaus, offices, commissions, and committees;
             666          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             667      Office of the Court Administrator, and similar administrative units in the judicial branch;
             668          (iii) the legislative branch of the state, including the House of Representatives, the
             669      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             670      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             671      Analyst;
             672          (iv) the National Guard;


             673          (v) an independent entity as defined in Section 63E-1-102 ; or
             674          (vi) a political subdivision as defined in Section 17B-1-102 .
             675          (b) "Governmental entity" does not include the state systems of public and higher
             676      education, including:
             677          (i) a college campus of the Utah College of Applied Technology;
             678          (ii) a school;
             679          (iii) the State Board of Education;
             680          (iv) the State Board of Regents; or
             681          (v) an institution of higher education.
             682          (47) "Hydroelectric energy" means water used as the sole source of energy to produce
             683      electricity.
             684          (48) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             685      other fuels:
             686          (a) in mining or extraction of minerals;
             687          (b) in agricultural operations to produce an agricultural product up to the time of
             688      harvest or placing the agricultural product into a storage facility, including:
             689          (i) commercial greenhouses;
             690          (ii) irrigation pumps;
             691          (iii) farm machinery;
             692          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             693      registered under Title 41, Chapter 1a, Part 2, Registration; and
             694          (v) other farming activities;
             695          (c) in manufacturing tangible personal property at an establishment described in SIC
             696      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             697      Executive Office of the President, Office of Management and Budget;
             698          (d) by a scrap recycler if:
             699          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             700      one or more of the following items into prepared grades of processed materials for use in new


             701      products:
             702          (A) iron;
             703          (B) steel;
             704          (C) nonferrous metal;
             705          (D) paper;
             706          (E) glass;
             707          (F) plastic;
             708          (G) textile; or
             709          (H) rubber; and
             710          (ii) the new products under Subsection (48)(d)(i) would otherwise be made with
             711      nonrecycled materials; or
             712          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             713      cogeneration facility as defined in Section 54-2-1 .
             714          (49) (a) Except as provided in Subsection (49)(b), "installation charge" means a charge
             715      for installing:
             716          (i) tangible personal property; or
             717          (ii) a product transferred electronically.
             718          (b) "Installation charge" does not include a charge for:
             719          (i) repairs or renovations of:
             720          (A) tangible personal property; or
             721          (B) a product transferred electronically; or
             722          (ii) attaching tangible personal property or a product transferred electronically:
             723          (A) to other tangible personal property; and
             724          (B) as part of a manufacturing or fabrication process.
             725          (50) "Institution of higher education" means an institution of higher education listed in
             726      Section 53B-2-101 .
             727          (51) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             728      personal property or a product transferred electronically for:


             729          (i) (A) a fixed term; or
             730          (B) an indeterminate term; and
             731          (ii) consideration.
             732          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             733      amount of consideration may be increased or decreased by reference to the amount realized
             734      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             735      Code.
             736          (c) "Lease" or "rental" does not include:
             737          (i) a transfer of possession or control of property under a security agreement or
             738      deferred payment plan that requires the transfer of title upon completion of the required
             739      payments;
             740          (ii) a transfer of possession or control of property under an agreement that requires the
             741      transfer of title:
             742          (A) upon completion of required payments; and
             743          (B) if the payment of an option price does not exceed the greater of:
             744          (I) $100; or
             745          (II) 1% of the total required payments; or
             746          (iii) providing tangible personal property along with an operator for a fixed period of
             747      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             748      designed.
             749          (d) For purposes of Subsection(51)(c)(iii), an operator is necessary for equipment to
             750      perform as designed if the operator's duties exceed the:
             751          (i) set-up of tangible personal property;
             752          (ii) maintenance of tangible personal property; or
             753          (iii) inspection of tangible personal property.
             754          (52) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             755      if the tangible storage media is not physically transferred to the purchaser.
             756          (53) "Local taxing jurisdiction" means a:


             757          (a) county that is authorized to impose an agreement sales and use tax;
             758          (b) city that is authorized to impose an agreement sales and use tax; or
             759          (c) town that is authorized to impose an agreement sales and use tax.
             760          (54) "Manufactured home" is as defined in Section 15A-1-302 .
             761          (55) For purposes of Section 59-12-104 , "manufacturing facility" means:
             762          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             763      Industrial Classification Manual of the federal Executive Office of the President, Office of
             764      Management and Budget;
             765          (b) a scrap recycler if:
             766          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             767      one or more of the following items into prepared grades of processed materials for use in new
             768      products:
             769          (A) iron;
             770          (B) steel;
             771          (C) nonferrous metal;
             772          (D) paper;
             773          (E) glass;
             774          (F) plastic;
             775          (G) textile; or
             776          (H) rubber; and
             777          (ii) the new products under Subsection (55)(b)(i) would otherwise be made with
             778      nonrecycled materials; or
             779          (c) a cogeneration facility as defined in Section 54-2-1 .
             780          (56) "Member of the immediate family of the producer" means a person who is related
             781      to a producer described in Subsection 59-12-104 (20)(a) as a:
             782          (a) child or stepchild, regardless of whether the child or stepchild is:
             783          (i) an adopted child or adopted stepchild; or
             784          (ii) a foster child or foster stepchild;


             785          (b) grandchild or stepgrandchild;
             786          (c) grandparent or stepgrandparent;
             787          (d) nephew or stepnephew;
             788          (e) niece or stepniece;
             789          (f) parent or stepparent;
             790          (g) sibling or stepsibling;
             791          (h) spouse;
             792          (i) person who is the spouse of a person described in Subsections (56)(a) through (g);
             793      or
             794          (j) person similar to a person described in Subsections (56)(a) through (i) as
             795      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             796      Administrative Rulemaking Act.
             797          (57) "Mobile home" is as defined in Section 15A-1-302 .
             798          (58) "Mobile telecommunications service" is as defined in the Mobile
             799      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             800          (59) (a) "Mobile wireless service" means a telecommunications service, regardless of
             801      the technology used, if:
             802          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             803          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             804          (iii) the origination point described in Subsection (59)(a)(i) and the termination point
             805      described in Subsection (59)(a)(ii) are not fixed.
             806          (b) "Mobile wireless service" includes a telecommunications service that is provided
             807      by a commercial mobile radio service provider.
             808          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             809      commission may by rule define "commercial mobile radio service provider."
             810          (60) (a) Except as provided in Subsection (60)(c), "mobility enhancing equipment"
             811      means equipment that is:
             812          (i) primarily and customarily used to provide or increase the ability to move from one


             813      place to another;
             814          (ii) appropriate for use in a:
             815          (A) home; or
             816          (B) motor vehicle; and
             817          (iii) not generally used by persons with normal mobility.
             818          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             819      the equipment described in Subsection (60)(a).
             820          (c) Notwithstanding Subsection (60)(a), "mobility enhancing equipment" does not
             821      include:
             822          (i) a motor vehicle;
             823          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             824      vehicle manufacturer;
             825          (iii) durable medical equipment; or
             826          (iv) a prosthetic device.
             827          (61) "Model 1 seller" means a seller registered under the agreement that has selected a
             828      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             829      functions for agreement sales and use taxes other than the seller's obligation under Section
             830      59-12-124 to remit a tax on the seller's own purchases.
             831          (62) "Model 2 seller" means a seller registered under the agreement that:
             832          (a) except as provided in Subsection (62)(b), has selected a certified automated system
             833      to perform the seller's sales tax functions for agreement sales and use taxes; and
             834          (b) notwithstanding Subsection (62)(a), retains responsibility for remitting all of the
             835      sales tax:
             836          (i) collected by the seller; and
             837          (ii) to the appropriate local taxing jurisdiction.
             838          (63) (a) Subject to Subsection (63)(b), "model 3 seller" means a seller registered under
             839      the agreement that has:
             840          (i) sales in at least five states that are members of the agreement;


             841          (ii) total annual sales revenues of at least $500,000,000;
             842          (iii) a proprietary system that calculates the amount of tax:
             843          (A) for an agreement sales and use tax; and
             844          (B) due to each local taxing jurisdiction; and
             845          (iv) entered into a performance agreement with the governing board of the agreement.
             846          (b) For purposes of Subsection (63)(a), "model 3 seller" includes an affiliated group of
             847      sellers using the same proprietary system.
             848          (64) "Model 4 seller" means a seller that is registered under the agreement and is not a
             849      model 1 seller, model 2 seller, or model 3 seller.
             850          (65) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             851          (66) "Motor vehicle" is as defined in Section 41-1a-102 .
             852          (67) "Oil shale" means a group of fine black to dark brown shales containing
             853      bituminous material that yields petroleum upon distillation.
             854          (68) (a) "Other fuels" means products that burn independently to produce heat or
             855      energy.
             856          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             857      personal property.
             858          (69) (a) "Paging service" means a telecommunications service that provides
             859      transmission of a coded radio signal for the purpose of activating a specific pager.
             860          (b) For purposes of Subsection (69)(a), the transmission of a coded radio signal
             861      includes a transmission by message or sound.
             862          (70) "Pawnbroker" is as defined in Section 13-32a-102 .
             863          (71) "Pawn transaction" is as defined in Section 13-32a-102 .
             864          (72) (a) "Permanently attached to real property" means that for tangible personal
             865      property attached to real property:
             866          (i) the attachment of the tangible personal property to the real property:
             867          (A) is essential to the use of the tangible personal property; and
             868          (B) suggests that the tangible personal property will remain attached to the real


             869      property in the same place over the useful life of the tangible personal property; or
             870          (ii) if the tangible personal property is detached from the real property, the detachment
             871      would:
             872          (A) cause substantial damage to the tangible personal property; or
             873          (B) require substantial alteration or repair of the real property to which the tangible
             874      personal property is attached.
             875          (b) "Permanently attached to real property" includes:
             876          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             877          (A) essential to the operation of the tangible personal property; and
             878          (B) attached only to facilitate the operation of the tangible personal property;
             879          (ii) a temporary detachment of tangible personal property from real property for a
             880      repair or renovation if the repair or renovation is performed where the tangible personal
             881      property and real property are located; or
             882          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             883      Subsection (72)(c)(iii) or (iv).
             884          (c) "Permanently attached to real property" does not include:
             885          (i) the attachment of portable or movable tangible personal property to real property if
             886      that portable or movable tangible personal property is attached to real property only for:
             887          (A) convenience;
             888          (B) stability; or
             889          (C) for an obvious temporary purpose;
             890          (ii) the detachment of tangible personal property from real property except for the
             891      detachment described in Subsection (72)(b)(ii);
             892          (iii) an attachment of the following tangible personal property to real property if the
             893      attachment to real property is only through a line that supplies water, electricity, gas,
             894      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             895      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             896          (A) a computer;


             897          (B) a telephone;
             898          (C) a television; or
             899          (D) tangible personal property similar to Subsections (72)(c)(iii)(A) through (C) as
             900      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             901      Administrative Rulemaking Act; or
             902          (iv) an item listed in Subsection (113)(c).
             903          (73) "Person" includes any individual, firm, partnership, joint venture, association,
             904      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             905      municipality, district, or other local governmental entity of the state, or any group or
             906      combination acting as a unit.
             907          (74) "Place of primary use":
             908          (a) for telecommunications service other than mobile telecommunications service,
             909      means the street address representative of where the customer's use of the telecommunications
             910      service primarily occurs, which shall be:
             911          (i) the residential street address of the customer; or
             912          (ii) the primary business street address of the customer; or
             913          (b) for mobile telecommunications service, is as defined in the Mobile
             914      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             915          (75) (a) "Postpaid calling service" means a telecommunications service a person
             916      obtains by making a payment on a call-by-call basis:
             917          (i) through the use of a:
             918          (A) bank card;
             919          (B) credit card;
             920          (C) debit card; or
             921          (D) travel card; or
             922          (ii) by a charge made to a telephone number that is not associated with the origination
             923      or termination of the telecommunications service.
             924          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling


             925      service, that would be a prepaid wireless calling service if the service were exclusively a
             926      telecommunications service.
             927          (76) "Postproduction" means an activity related to the finishing or duplication of a
             928      medium described in Subsection 59-12-104 (54)(a).
             929          (77) "Prepaid calling service" means a telecommunications service:
             930          (a) that allows a purchaser access to telecommunications service that is exclusively
             931      telecommunications service;
             932          (b) that:
             933          (i) is paid for in advance; and
             934          (ii) enables the origination of a call using an:
             935          (A) access number; or
             936          (B) authorization code;
             937          (c) that is dialed:
             938          (i) manually; or
             939          (ii) electronically; and
             940          (d) sold in predetermined units or dollars that decline:
             941          (i) by a known amount; and
             942          (ii) with use.
             943          (78) "Prepaid wireless calling service" means a telecommunications service:
             944          (a) that provides the right to utilize:
             945          (i) mobile wireless service; and
             946          (ii) other service that is not a telecommunications service, including:
             947          (A) the download of a product transferred electronically;
             948          (B) a content service; or
             949          (C) an ancillary service;
             950          (b) that:
             951          (i) is paid for in advance; and
             952          (ii) enables the origination of a call using an:


             953          (A) access number; or
             954          (B) authorization code;
             955          (c) that is dialed:
             956          (i) manually; or
             957          (ii) electronically; and
             958          (d) sold in predetermined units or dollars that decline:
             959          (i) by a known amount; and
             960          (ii) with use.
             961          (79) (a) "Prepared food" means:
             962          (i) food:
             963          (A) sold in a heated state; or
             964          (B) heated by a seller;
             965          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             966      item; or
             967          (iii) except as provided in Subsection (79)(c), food sold with an eating utensil provided
             968      by the seller, including a:
             969          (A) plate;
             970          (B) knife;
             971          (C) fork;
             972          (D) spoon;
             973          (E) glass;
             974          (F) cup;
             975          (G) napkin; or
             976          (H) straw.
             977          (b) "Prepared food" does not include:
             978          (i) food that a seller only:
             979          (A) cuts;
             980          (B) repackages; or


             981          (C) pasteurizes; or
             982          (ii) (A) the following:
             983          (I) raw egg;
             984          (II) raw fish;
             985          (III) raw meat;
             986          (IV) raw poultry; or
             987          (V) a food containing an item described in Subsections (79)(b)(ii)(A)(I) through (IV);
             988      and
             989          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             990      Food and Drug Administration's Food Code that a consumer cook the items described in
             991      Subsection (79)(b)(ii)(A) to prevent food borne illness; or
             992          (iii) the following if sold without eating utensils provided by the seller:
             993          (A) food and food ingredients sold by a seller if the seller's proper primary
             994      classification under the 2002 North American Industry Classification System of the federal
             995      Executive Office of the President, Office of Management and Budget, is manufacturing in
             996      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             997      Manufacturing;
             998          (B) food and food ingredients sold in an unheated state:
             999          (I) by weight or volume; and
             1000          (II) as a single item; or
             1001          (C) a bakery item, including:
             1002          (I) a bagel;
             1003          (II) a bar;
             1004          (III) a biscuit;
             1005          (IV) bread;
             1006          (V) a bun;
             1007          (VI) a cake;
             1008          (VII) a cookie;


             1009          (VIII) a croissant;
             1010          (IX) a danish;
             1011          (X) a donut;
             1012          (XI) a muffin;
             1013          (XII) a pastry;
             1014          (XIII) a pie;
             1015          (XIV) a roll;
             1016          (XV) a tart;
             1017          (XVI) a torte; or
             1018          (XVII) a tortilla.
             1019          (c) Notwithstanding Subsection (79)(a)(iii), an eating utensil provided by the seller
             1020      does not include the following used to transport the food:
             1021          (i) a container; or
             1022          (ii) packaging.
             1023          (80) "Prescription" means an order, formula, or recipe that is issued:
             1024          (a) (i) orally;
             1025          (ii) in writing;
             1026          (iii) electronically; or
             1027          (iv) by any other manner of transmission; and
             1028          (b) by a licensed practitioner authorized by the laws of a state.
             1029          (81) (a) Except as provided in Subsection (81)(b)(ii) or (iii), "prewritten computer
             1030      software" means computer software that is not designed and developed:
             1031          (i) by the author or other creator of the computer software; and
             1032          (ii) to the specifications of a specific purchaser.
             1033          (b) "Prewritten computer software" includes:
             1034          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1035      software is not designed and developed:
             1036          (A) by the author or other creator of the computer software; and


             1037          (B) to the specifications of a specific purchaser;
             1038          (ii) notwithstanding Subsection (81)(a), computer software designed and developed by
             1039      the author or other creator of the computer software to the specifications of a specific purchaser
             1040      if the computer software is sold to a person other than the purchaser; or
             1041          (iii) notwithstanding Subsection (81)(a) and except as provided in Subsection (81)(c),
             1042      prewritten computer software or a prewritten portion of prewritten computer software:
             1043          (A) that is modified or enhanced to any degree; and
             1044          (B) if the modification or enhancement described in Subsection (81)(b)(iii)(A) is
             1045      designed and developed to the specifications of a specific purchaser.
             1046          (c) Notwithstanding Subsection (81)(b)(iii), "prewritten computer software" does not
             1047      include a modification or enhancement described in Subsection (81)(b)(iii) if the charges for
             1048      the modification or enhancement are:
             1049          (i) reasonable; and
             1050          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             1051      invoice or other statement of price provided to the purchaser[.] at the time of sale or later, as
             1052      demonstrated by:
             1053          (A) the books and records the seller keeps at the time of the transaction in the regular
             1054      course of business, including books and records the seller keeps at the time of the transaction in
             1055      the regular course of business for nontax purposes;
             1056          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             1057          (C) the understanding of all of the parties to the transaction.
             1058          (82) (a) "Private communication service" means a telecommunications service:
             1059          (i) that entitles a customer to exclusive or priority use of one or more communications
             1060      channels between or among termination points; and
             1061          (ii) regardless of the manner in which the one or more communications channels are
             1062      connected.
             1063          (b) "Private communications service" includes the following provided in connection
             1064      with the use of one or more communications channels:


             1065          (i) an extension line;
             1066          (ii) a station;
             1067          (iii) switching capacity; or
             1068          (iv) another associated service that is provided in connection with the use of one or
             1069      more communications channels as defined in Section 59-12-215 .
             1070          (83) (a) Except as provided in Subsection (83)(b), "product transferred electronically"
             1071      means a product transferred electronically that would be subject to a tax under this chapter if
             1072      that product was transferred in a manner other than electronically.
             1073          (b) "Product transferred electronically" does not include:
             1074          (i) an ancillary service;
             1075          (ii) computer software; or
             1076          (iii) a telecommunications service.
             1077          (84) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1078          (i) artificially replace a missing portion of the body;
             1079          (ii) prevent or correct a physical deformity or physical malfunction; or
             1080          (iii) support a weak or deformed portion of the body.
             1081          (b) "Prosthetic device" includes:
             1082          (i) parts used in the repairs or renovation of a prosthetic device;
             1083          (ii) replacement parts for a prosthetic device;
             1084          (iii) a dental prosthesis; or
             1085          (iv) a hearing aid.
             1086          (c) "Prosthetic device" does not include:
             1087          (i) corrective eyeglasses; or
             1088          (ii) contact lenses.
             1089          (85) (a) "Protective equipment" means an item:
             1090          (i) for human wear; and
             1091          (ii) that is:
             1092          (A) designed as protection:


             1093          (I) to the wearer against injury or disease; or
             1094          (II) against damage or injury of other persons or property; and
             1095          (B) not suitable for general use.
             1096          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1097      commission shall make rules:
             1098          (i) listing the items that constitute "protective equipment"; and
             1099          (ii) that are consistent with the list of items that constitute "protective equipment"
             1100      under the agreement.
             1101          (86) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             1102      printed matter, other than a photocopy:
             1103          (i) regardless of:
             1104          (A) characteristics;
             1105          (B) copyright;
             1106          (C) form;
             1107          (D) format;
             1108          (E) method of reproduction; or
             1109          (F) source; and
             1110          (ii) made available in printed or electronic format.
             1111          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1112      commission may by rule define the term "photocopy."
             1113          (87) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1114          (i) valued in money; and
             1115          (ii) for which tangible personal property, a product transferred electronically, or
             1116      services are:
             1117          (A) sold;
             1118          (B) leased; or
             1119          (C) rented.
             1120          (b) "Purchase price" and "sales price" include:


             1121          (i) the seller's cost of the tangible personal property, a product transferred
             1122      electronically, or services sold;
             1123          (ii) expenses of the seller, including:
             1124          (A) the cost of materials used;
             1125          (B) a labor cost;
             1126          (C) a service cost;
             1127          (D) interest;
             1128          (E) a loss;
             1129          (F) the cost of transportation to the seller; or
             1130          (G) a tax imposed on the seller;
             1131          (iii) a charge by the seller for any service necessary to complete the sale; or
             1132          (iv) consideration a seller receives from a person other than the purchaser if:
             1133          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1134      and
             1135          (II) the consideration described in Subsection (87)(b)(iv)(A)(I) is directly related to a
             1136      price reduction or discount on the sale;
             1137          (B) the seller has an obligation to pass the price reduction or discount through to the
             1138      purchaser;
             1139          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1140      the seller at the time of the sale to the purchaser; and
             1141          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1142      seller to claim a price reduction or discount; and
             1143          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1144      coupon, or other documentation with the understanding that the person other than the seller
             1145      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1146          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1147      organization allowed a price reduction or discount, except that a preferred customer card that is
             1148      available to any patron of a seller does not constitute membership in a group or organization


             1149      allowed a price reduction or discount; or
             1150          (III) the price reduction or discount is identified as a third party price reduction or
             1151      discount on the:
             1152          (Aa) invoice the purchaser receives; or
             1153          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1154          (c) "Purchase price" and "sales price" do not include:
             1155          (i) a discount:
             1156          (A) in a form including:
             1157          (I) cash;
             1158          (II) term; or
             1159          (III) coupon;
             1160          (B) that is allowed by a seller;
             1161          (C) taken by a purchaser on a sale; and
             1162          (D) that is not reimbursed by a third party; or
             1163          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             1164      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             1165      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             1166      transaction in the regular course of business, including books and records the seller keeps at the
             1167      time of the transaction in the regular course of business for nontax purposes, by a
             1168      preponderance of the facts and circumstances at the time of the transaction, and by the
             1169      understanding of all of the parties to the transaction:
             1170          (A) the following from credit extended on the sale of tangible personal property or
             1171      services:
             1172          (I) a carrying charge;
             1173          (II) a financing charge; or
             1174          (III) an interest charge;
             1175          (B) a delivery charge;
             1176          (C) an installation charge;


             1177          (D) a manufacturer rebate on a motor vehicle; or
             1178          (E) a tax or fee legally imposed directly on the consumer.
             1179          (88) "Purchaser" means a person to whom:
             1180          (a) a sale of tangible personal property is made;
             1181          (b) a product is transferred electronically; or
             1182          (c) a service is furnished.
             1183          (89) "Regularly rented" means:
             1184          (a) rented to a guest for value three or more times during a calendar year; or
             1185          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1186      value.
             1187          (90) "Renewable energy" means:
             1188          (a) biomass energy;
             1189          (b) hydroelectric energy;
             1190          (c) geothermal energy;
             1191          (d) solar energy; or
             1192          (e) wind energy.
             1193          (91) (a) "Renewable energy production facility" means a facility that:
             1194          (i) uses renewable energy to produce electricity; and
             1195          (ii) has a production capacity of 20 kilowatts or greater.
             1196          (b) A facility is a renewable energy production facility regardless of whether the
             1197      facility is:
             1198          (i) connected to an electric grid; or
             1199          (ii) located on the premises of an electricity consumer.
             1200          (92) "Rental" is as defined in Subsection (51).
             1201          (93) (a) Except as provided in Subsection (93)(b), "repairs or renovations of tangible
             1202      personal property" means:
             1203          (i) a repair or renovation of tangible personal property that is not permanently attached
             1204      to real property; or


             1205          (ii) attaching tangible personal property or a product transferred electronically to other
             1206      tangible personal property if:
             1207          (A) the other tangible personal property to which the tangible personal property or
             1208      product transferred electronically is attached is not permanently attached to real property; and
             1209          (B) the attachment of tangible personal property or a product transferred electronically
             1210      to other tangible personal property is made in conjunction with a repair or replacement of
             1211      tangible personal property or a product transferred electronically.
             1212          (b) "Repairs or renovations of tangible personal property" does not include attaching
             1213      prewritten computer software to other tangible personal property if the other tangible personal
             1214      property to which the prewritten computer software is attached is not permanently attached to
             1215      real property.
             1216          (94) "Research and development" means the process of inquiry or experimentation
             1217      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1218      preparing those devices, technologies, or applications for marketing.
             1219          (95) (a) "Residential telecommunications services" means a telecommunications
             1220      service or an ancillary service that is provided to an individual for personal use:
             1221          (i) at a residential address; or
             1222          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1223      service or ancillary service is provided to and paid for by the individual residing at the
             1224      institution rather than the institution.
             1225          (b) For purposes of Subsection (95)(a)(i), a residential address includes an:
             1226          (i) apartment; or
             1227          (ii) other individual dwelling unit.
             1228          (96) "Residential use" means the use in or around a home, apartment building, sleeping
             1229      quarters, and similar facilities or accommodations.
             1230          (97) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1231      than:
             1232          (a) resale;


             1233          (b) sublease; or
             1234          (c) subrent.
             1235          (98) (a) "Retailer" means any person engaged in a regularly organized business in
             1236      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1237      who is selling to the user or consumer and not for resale.
             1238          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1239      engaged in the business of selling to users or consumers within the state.
             1240          (99) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1241      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1242      Subsection 59-12-103 (1), for consideration.
             1243          (b) "Sale" includes:
             1244          (i) installment and credit sales;
             1245          (ii) any closed transaction constituting a sale;
             1246          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1247      chapter;
             1248          (iv) any transaction if the possession of property is transferred but the seller retains the
             1249      title as security for the payment of the price; and
             1250          (v) any transaction under which right to possession, operation, or use of any article of
             1251      tangible personal property is granted under a lease or contract and the transfer of possession
             1252      would be taxable if an outright sale were made.
             1253          (100) "Sale at retail" is as defined in Subsection (97).
             1254          (101) "Sale-leaseback transaction" means a transaction by which title to tangible
             1255      personal property or a product transferred electronically that is subject to a tax under this
             1256      chapter is transferred:
             1257          (a) by a purchaser-lessee;
             1258          (b) to a lessor;
             1259          (c) for consideration; and
             1260          (d) if:


             1261          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1262      of the tangible personal property or product transferred electronically;
             1263          (ii) the sale of the tangible personal property or product transferred electronically to the
             1264      lessor is intended as a form of financing:
             1265          (A) for the tangible personal property or product transferred electronically; and
             1266          (B) to the purchaser-lessee; and
             1267          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1268      is required to:
             1269          (A) capitalize the tangible personal property or product transferred electronically for
             1270      financial reporting purposes; and
             1271          (B) account for the lease payments as payments made under a financing arrangement.
             1272          (102) "Sales price" is as defined in Subsection (87).
             1273          (103) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1274      amounts charged by a school:
             1275          (i) sales that are directly related to the school's educational functions or activities
             1276      including:
             1277          (A) the sale of:
             1278          (I) textbooks;
             1279          (II) textbook fees;
             1280          (III) laboratory fees;
             1281          (IV) laboratory supplies; or
             1282          (V) safety equipment;
             1283          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1284      that:
             1285          (I) a student is specifically required to wear as a condition of participation in a
             1286      school-related event or school-related activity; and
             1287          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1288      place of ordinary clothing;


             1289          (C) sales of the following if the net or gross revenues generated by the sales are
             1290      deposited into a school district fund or school fund dedicated to school meals:
             1291          (I) food and food ingredients; or
             1292          (II) prepared food; or
             1293          (D) transportation charges for official school activities; or
             1294          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1295      event or school-related activity.
             1296          (b) "Sales relating to schools" does not include:
             1297          (i) bookstore sales of items that are not educational materials or supplies;
             1298          (ii) except as provided in Subsection (103)(a)(i)(B):
             1299          (A) clothing;
             1300          (B) clothing accessories or equipment;
             1301          (C) protective equipment; or
             1302          (D) sports or recreational equipment; or
             1303          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1304      event or school-related activity if the amounts paid or charged are passed through to a person:
             1305          (A) other than a:
             1306          (I) school;
             1307          (II) nonprofit organization authorized by a school board or a governing body of a
             1308      private school to organize and direct a competitive secondary school activity; or
             1309          (III) nonprofit association authorized by a school board or a governing body of a
             1310      private school to organize and direct a competitive secondary school activity; and
             1311          (B) that is required to collect sales and use taxes under this chapter.
             1312          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1313      commission may make rules defining the term "passed through."
             1314          (104) For purposes of this section and Section 59-12-104 , "school":
             1315          (a) means:
             1316          (i) an elementary school or a secondary school that:


             1317          (A) is a:
             1318          (I) public school; or
             1319          (II) private school; and
             1320          (B) provides instruction for one or more grades kindergarten through 12; or
             1321          (ii) a public school district; and
             1322          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1323          (105) "Seller" means a person that makes a sale, lease, or rental of:
             1324          (a) tangible personal property;
             1325          (b) a product transferred electronically; or
             1326          (c) a service.
             1327          (106) (a) "Semiconductor fabricating, processing, research, or development materials"
             1328      means tangible personal property or a product transferred electronically if the tangible personal
             1329      property or product transferred electronically is:
             1330          (i) used primarily in the process of:
             1331          (A) (I) manufacturing a semiconductor;
             1332          (II) fabricating a semiconductor; or
             1333          (III) research or development of a:
             1334          (Aa) semiconductor; or
             1335          (Bb) semiconductor manufacturing process; or
             1336          (B) maintaining an environment suitable for a semiconductor; or
             1337          (ii) consumed primarily in the process of:
             1338          (A) (I) manufacturing a semiconductor;
             1339          (II) fabricating a semiconductor; or
             1340          (III) research or development of a:
             1341          (Aa) semiconductor; or
             1342          (Bb) semiconductor manufacturing process; or
             1343          (B) maintaining an environment suitable for a semiconductor.
             1344          (b) "Semiconductor fabricating, processing, research, or development materials"


             1345      includes:
             1346          (i) parts used in the repairs or renovations of tangible personal property or a product
             1347      transferred electronically described in Subsection (106)(a); or
             1348          (ii) a chemical, catalyst, or other material used to:
             1349          (A) produce or induce in a semiconductor a:
             1350          (I) chemical change; or
             1351          (II) physical change;
             1352          (B) remove impurities from a semiconductor; or
             1353          (C) improve the marketable condition of a semiconductor.
             1354          (107) "Senior citizen center" means a facility having the primary purpose of providing
             1355      services to the aged as defined in Section 62A-3-101 .
             1356          (108) "Simplified electronic return" means the electronic return:
             1357          (a) described in Section 318(C) of the agreement; and
             1358          (b) approved by the governing board of the agreement.
             1359          (109) "Solar energy" means the sun used as the sole source of energy for producing
             1360      electricity.
             1361          (110) (a) "Sports or recreational equipment" means an item:
             1362          (i) designed for human use; and
             1363          (ii) that is:
             1364          (A) worn in conjunction with:
             1365          (I) an athletic activity; or
             1366          (II) a recreational activity; and
             1367          (B) not suitable for general use.
             1368          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1369      commission shall make rules:
             1370          (i) listing the items that constitute "sports or recreational equipment"; and
             1371          (ii) that are consistent with the list of items that constitute "sports or recreational
             1372      equipment" under the agreement.


             1373          (111) "State" means the state of Utah, its departments, and agencies.
             1374          (112) "Storage" means any keeping or retention of tangible personal property or any
             1375      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1376      sale in the regular course of business.
             1377          (113) (a) Except as provided in Subsection (113)(d) or (e), "tangible personal property"
             1378      means personal property that:
             1379          (i) may be:
             1380          (A) seen;
             1381          (B) weighed;
             1382          (C) measured;
             1383          (D) felt; or
             1384          (E) touched; or
             1385          (ii) is in any manner perceptible to the senses.
             1386          (b) "Tangible personal property" includes:
             1387          (i) electricity;
             1388          (ii) water;
             1389          (iii) gas;
             1390          (iv) steam; or
             1391          (v) prewritten computer software, regardless of the manner in which the prewritten
             1392      computer software is transferred.
             1393          (c) "Tangible personal property" includes the following regardless of whether the item
             1394      is attached to real property:
             1395          (i) a dishwasher;
             1396          (ii) a dryer;
             1397          (iii) a freezer;
             1398          (iv) a microwave;
             1399          (v) a refrigerator;
             1400          (vi) a stove;


             1401          (vii) a washer; or
             1402          (viii) an item similar to Subsections (113)(c)(i) through (vii) as determined by the
             1403      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1404      Rulemaking Act.
             1405          (d) "Tangible personal property" does not include a product that is transferred
             1406      electronically.
             1407          (e) "Tangible personal property" does not include the following if attached to real
             1408      property, regardless of whether the attachment to real property is only through a line that
             1409      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1410      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1411      Rulemaking Act:
             1412          (i) a hot water heater;
             1413          (ii) a water filtration system; or
             1414          (iii) a water softener system.
             1415          (114) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1416      and require further processing other than mechanical blending before becoming finished
             1417      petroleum products.
             1418          (115) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1419      software" means an item listed in Subsection (115)(b) if that item is purchased or leased
             1420      primarily to enable or facilitate one or more of the following to function:
             1421          (i) telecommunications switching or routing equipment, machinery, or software; or
             1422          (ii) telecommunications transmission equipment, machinery, or software.
             1423          (b) The following apply to Subsection (115)(a):
             1424          (i) a pole;
             1425          (ii) software;
             1426          (iii) a supplementary power supply;
             1427          (iv) temperature or environmental equipment or machinery;
             1428          (v) test equipment;


             1429          (vi) a tower; or
             1430          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1431      Subsections (115)(b)(i) through (vi) as determined by the commission by rule made in
             1432      accordance with Subsection (115)(c).
             1433          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1434      commission may by rule define what constitutes equipment, machinery, or software that
             1435      functions similarly to an item listed in Subsections (115)(b)(i) through (vi).
             1436          (116) "Telecommunications equipment, machinery, or software required for 911
             1437      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1438      Sec. 20.18.
             1439          (117) "Telecommunications maintenance or repair equipment, machinery, or software"
             1440      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1441      one or more of the following, regardless of whether the equipment, machinery, or software is
             1442      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1443      following:
             1444          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1445          (b) telecommunications switching or routing equipment, machinery, or software; or
             1446          (c) telecommunications transmission equipment, machinery, or software.
             1447          (118) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1448      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1449      among or between points.
             1450          (b) "Telecommunications service" includes:
             1451          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1452      processing application is used to act:
             1453          (A) on the code, form, or protocol of the content;
             1454          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1455          (C) regardless of whether the service:
             1456          (I) is referred to as voice over Internet protocol service; or


             1457          (II) is classified by the Federal Communications Commission as enhanced or value
             1458      added;
             1459          (ii) an 800 service;
             1460          (iii) a 900 service;
             1461          (iv) a fixed wireless service;
             1462          (v) a mobile wireless service;
             1463          (vi) a postpaid calling service;
             1464          (vii) a prepaid calling service;
             1465          (viii) a prepaid wireless calling service; or
             1466          (ix) a private communications service.
             1467          (c) "Telecommunications service" does not include:
             1468          (i) advertising, including directory advertising;
             1469          (ii) an ancillary service;
             1470          (iii) a billing and collection service provided to a third party;
             1471          (iv) a data processing and information service if:
             1472          (A) the data processing and information service allows data to be:
             1473          (I) (Aa) acquired;
             1474          (Bb) generated;
             1475          (Cc) processed;
             1476          (Dd) retrieved; or
             1477          (Ee) stored; and
             1478          (II) delivered by an electronic transmission to a purchaser; and
             1479          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1480      or information;
             1481          (v) installation or maintenance of the following on a customer's premises:
             1482          (A) equipment; or
             1483          (B) wiring;
             1484          (vi) Internet access service;


             1485          (vii) a paging service;
             1486          (viii) a product transferred electronically, including:
             1487          (A) music;
             1488          (B) reading material;
             1489          (C) a ring tone;
             1490          (D) software; or
             1491          (E) video;
             1492          (ix) a radio and television audio and video programming service:
             1493          (A) regardless of the medium; and
             1494          (B) including:
             1495          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1496      programming service by a programming service provider;
             1497          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1498          (III) audio and video programming services delivered by a commercial mobile radio
             1499      service provider as defined in 47 C.F.R. Sec. 20.3;
             1500          (x) a value-added nonvoice data service; or
             1501          (xi) tangible personal property.
             1502          (119) (a) "Telecommunications service provider" means a person that:
             1503          (i) owns, controls, operates, or manages a telecommunications service; and
             1504          (ii) engages in an activity described in Subsection (119)(a)(i) for the shared use with or
             1505      resale to any person of the telecommunications service.
             1506          (b) A person described in Subsection (119)(a) is a telecommunications service provider
             1507      whether or not the Public Service Commission of Utah regulates:
             1508          (i) that person; or
             1509          (ii) the telecommunications service that the person owns, controls, operates, or
             1510      manages.
             1511          (120) (a) "Telecommunications switching or routing equipment, machinery, or
             1512      software" means an item listed in Subsection (120)(b) if that item is purchased or leased


             1513      primarily for switching or routing:
             1514          (i) an ancillary service;
             1515          (ii) data communications;
             1516          (iii) voice communications; or
             1517          (iv) telecommunications service.
             1518          (b) The following apply to Subsection (120)(a):
             1519          (i) a bridge;
             1520          (ii) a computer;
             1521          (iii) a cross connect;
             1522          (iv) a modem;
             1523          (v) a multiplexer;
             1524          (vi) plug in circuitry;
             1525          (vii) a router;
             1526          (viii) software;
             1527          (ix) a switch; or
             1528          (x) equipment, machinery, or software that functions similarly to an item listed in
             1529      Subsections (120)(b)(i) through (ix) as determined by the commission by rule made in
             1530      accordance with Subsection (120)(c).
             1531          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1532      commission may by rule define what constitutes equipment, machinery, or software that
             1533      functions similarly to an item listed in Subsections (120)(b)(i) through (ix).
             1534          (121) (a) "Telecommunications transmission equipment, machinery, or software"
             1535      means an item listed in Subsection (121)(b) if that item is purchased or leased primarily for
             1536      sending, receiving, or transporting:
             1537          (i) an ancillary service;
             1538          (ii) data communications;
             1539          (iii) voice communications; or
             1540          (iv) telecommunications service.


             1541          (b) The following apply to Subsection (121)(a):
             1542          (i) an amplifier;
             1543          (ii) a cable;
             1544          (iii) a closure;
             1545          (iv) a conduit;
             1546          (v) a controller;
             1547          (vi) a duplexer;
             1548          (vii) a filter;
             1549          (viii) an input device;
             1550          (ix) an input/output device;
             1551          (x) an insulator;
             1552          (xi) microwave machinery or equipment;
             1553          (xii) an oscillator;
             1554          (xiii) an output device;
             1555          (xiv) a pedestal;
             1556          (xv) a power converter;
             1557          (xvi) a power supply;
             1558          (xvii) a radio channel;
             1559          (xviii) a radio receiver;
             1560          (xix) a radio transmitter;
             1561          (xx) a repeater;
             1562          (xxi) software;
             1563          (xxii) a terminal;
             1564          (xxiii) a timing unit;
             1565          (xxiv) a transformer;
             1566          (xxv) a wire; or
             1567          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1568      Subsections (121)(b)(i) through (xxv) as determined by the commission by rule made in


             1569      accordance with Subsection (121)(c).
             1570          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1571      commission may by rule define what constitutes equipment, machinery, or software that
             1572      functions similarly to an item listed in Subsections (121)(b)(i) through (xxv).
             1573          (122) (a) "Textbook for a higher education course" means a textbook or other printed
             1574      material that is required for a course:
             1575          (i) offered by an institution of higher education; and
             1576          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1577          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1578          (123) "Tobacco" means:
             1579          (a) a cigarette;
             1580          (b) a cigar;
             1581          (c) chewing tobacco;
             1582          (d) pipe tobacco; or
             1583          (e) any other item that contains tobacco.
             1584          (124) "Unassisted amusement device" means an amusement device, skill device, or
             1585      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1586      the amusement device, skill device, or ride device.
             1587          (125) (a) "Use" means the exercise of any right or power over tangible personal
             1588      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1589      incident to the ownership or the leasing of that tangible personal property, product transferred
             1590      electronically, or service.
             1591          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1592      property, a product transferred electronically, or a service in the regular course of business and
             1593      held for resale.
             1594          (126) "Value-added nonvoice data service" means a service:
             1595          (a) that otherwise meets the definition of a telecommunications service except that a
             1596      computer processing application is used to act primarily for a purpose other than conveyance,


             1597      routing, or transmission; and
             1598          (b) with respect to which a computer processing application is used to act on data or
             1599      information:
             1600          (i) code;
             1601          (ii) content;
             1602          (iii) form; or
             1603          (iv) protocol.
             1604          (127) (a) Subject to Subsection (127)(b), "vehicle" means the following that are
             1605      required to be titled, registered, or titled and registered:
             1606          (i) an aircraft as defined in Section 72-10-102 ;
             1607          (ii) a vehicle as defined in Section 41-1a-102 ;
             1608          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1609          (iv) a vessel as defined in Section 41-1a-102 .
             1610          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1611          (i) a vehicle described in Subsection (127)(a); or
             1612          (ii) (A) a locomotive;
             1613          (B) a freight car;
             1614          (C) railroad work equipment; or
             1615          (D) other railroad rolling stock.
             1616          (128) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1617      exchanging a vehicle as defined in Subsection (127).
             1618          (129) (a) "Vertical service" means an ancillary service that:
             1619          (i) is offered in connection with one or more telecommunications services; and
             1620          (ii) offers an advanced calling feature that allows a customer to:
             1621          (A) identify a caller; and
             1622          (B) manage multiple calls and call connections.
             1623          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1624      conference bridging service.


             1625          (130) (a) "Voice mail service" means an ancillary service that enables a customer to
             1626      receive, send, or store a recorded message.
             1627          (b) "Voice mail service" does not include a vertical service that a customer is required
             1628      to have in order to utilize a voice mail service.
             1629          (131) (a) Except as provided in Subsection (131)(b), "waste energy facility" means a
             1630      facility that generates electricity:
             1631          (i) using as the primary source of energy waste materials that would be placed in a
             1632      landfill or refuse pit if it were not used to generate electricity, including:
             1633          (A) tires;
             1634          (B) waste coal; or
             1635          (C) oil shale; and
             1636          (ii) in amounts greater than actually required for the operation of the facility.
             1637          (b) "Waste energy facility" does not include a facility that incinerates:
             1638          (i) municipal solid waste;
             1639          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1640          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1641          (132) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1642          (133) "Wind energy" means wind used as the sole source of energy to produce
             1643      electricity.
             1644          (134) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1645      location by the United States Postal Service.
             1646          Section 5. Section 59-12-103 is amended to read:
             1647           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1648      tax revenues.
             1649          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1650      charged for the following transactions:
             1651          (a) retail sales of tangible personal property made within the state;
             1652          (b) amounts paid for:


             1653          (i) telecommunications service, other than mobile telecommunications service, that
             1654      originates and terminates within the boundaries of this state;
             1655          (ii) mobile telecommunications service that originates and terminates within the
             1656      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             1657      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1658          (iii) an ancillary service associated with a:
             1659          (A) telecommunications service described in Subsection (1)(b)(i); or
             1660          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             1661          (c) sales of the following for commercial use:
             1662          (i) gas;
             1663          (ii) electricity;
             1664          (iii) heat;
             1665          (iv) coal;
             1666          (v) fuel oil; or
             1667          (vi) other fuels;
             1668          (d) sales of the following for residential use:
             1669          (i) gas;
             1670          (ii) electricity;
             1671          (iii) heat;
             1672          (iv) coal;
             1673          (v) fuel oil; or
             1674          (vi) other fuels;
             1675          (e) sales of prepared food;
             1676          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1677      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1678      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             1679      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1680      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf


             1681      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             1682      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1683      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             1684      exhibition, cultural, or athletic activity;
             1685          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1686      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1687          (i) the tangible personal property; and
             1688          (ii) parts used in the repairs or renovations of the tangible personal property described
             1689      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1690      of that tangible personal property;
             1691          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             1692      assisted cleaning or washing of tangible personal property;
             1693          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             1694      accommodations and services that are regularly rented for less than 30 consecutive days;
             1695          (j) amounts paid or charged for laundry or dry cleaning services;
             1696          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1697      this state the tangible personal property is:
             1698          (i) stored;
             1699          (ii) used; or
             1700          (iii) otherwise consumed;
             1701          (l) amounts paid or charged for tangible personal property if within this state the
             1702      tangible personal property is:
             1703          (i) stored;
             1704          (ii) used; or
             1705          (iii) consumed; and
             1706          (m) amounts paid or charged for a sale:
             1707          (i) (A) of a product transferred electronically; or
             1708          (B) of a repair or renovation of a product transferred electronically; and


             1709          (ii) regardless of whether the sale provides:
             1710          (A) a right of permanent use of the product; or
             1711          (B) a right to use the product that is less than a permanent use, including a right:
             1712          (I) for a definite or specified length of time; and
             1713          (II) that terminates upon the occurrence of a condition.
             1714          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             1715      is imposed on a transaction described in Subsection (1) equal to the sum of:
             1716          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1717          (A) 4.70%; and
             1718          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             1719      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1720      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             1721      State Sales and Use Tax Act; and
             1722          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1723      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1724      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             1725      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1726          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1727      transaction under this chapter other than this part.
             1728          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1729      on a transaction described in Subsection (1)(d) equal to the sum of:
             1730          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             1731          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1732      transaction under this chapter other than this part.
             1733          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1734      on amounts paid or charged for food and food ingredients equal to the sum of:
             1735          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             1736      a tax rate of 1.75%; and


             1737          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1738      amounts paid or charged for food and food ingredients under this chapter other than this part.
             1739          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             1740      tangible personal property other than food and food ingredients, a state tax and a local tax is
             1741      imposed on the entire bundled transaction equal to the sum of:
             1742          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             1743          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             1744          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             1745      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1746      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             1747      Additional State Sales and Use Tax Act; and
             1748          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             1749      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1750      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             1751      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1752          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             1753      described in Subsection (2)(a)(ii).
             1754          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             1755      transaction described in Subsection (2)(d)(i):
             1756          (A) if the sales price of the bundled transaction is attributable to tangible personal
             1757      property, a product, or a service that is subject to taxation under this chapter and tangible
             1758      personal property, a product, or service that is not subject to taxation under this chapter, the
             1759      entire bundled transaction is subject to taxation under this chapter unless:
             1760          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1761      personal property, product, or service that is not subject to taxation under this chapter from the
             1762      books and records the seller keeps in the seller's regular course of business; or
             1763          (II) state or federal law provides otherwise; or
             1764          (B) if the sales price of a bundled transaction is attributable to two or more items of


             1765      tangible personal property, products, or services that are subject to taxation under this chapter
             1766      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             1767      higher tax rate unless:
             1768          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1769      personal property, product, or service that is subject to taxation under this chapter at the lower
             1770      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             1771          (II) state or federal law provides otherwise.
             1772          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             1773      seller's regular course of business includes books and records the seller keeps in the regular
             1774      course of business for nontax purposes.
             1775          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
             1776      and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
             1777      product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
             1778      of tangible personal property, other property, a product, or a service that is not subject to
             1779      taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
             1780      the seller, at the time of the transaction:
             1781          (A) separately states the portion of the transaction that is not subject to taxation under
             1782      this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
             1783          (B) is able to identify by reasonable and verifiable standards, from the books and
             1784      records the seller keeps in the seller's regular course of business, the portion of the transaction
             1785      that is not subject to taxation under this chapter.
             1786          (ii) A purchaser and a seller may correct the taxability of a transaction if:
             1787          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
             1788      the transaction that is not subject to taxation under this chapter was not separately stated on an
             1789      invoice, bill of sale, or similar document provided to the purchaser because of an error or
             1790      ignorance of the law; and
             1791          (B) the seller is able to identify by reasonable and verifiable standards, from the books
             1792      and records the seller keeps in the seller's regular course of business, the portion of the


             1793      transaction that is not subject to taxation under this chapter.
             1794          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
             1795      in the seller's regular course of business includes books and records the seller keeps in the
             1796      regular course of business for nontax purposes.
             1797          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
             1798      personal property, products, or services that are subject to taxation under this chapter at
             1799      different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
             1800      unless the seller, at the time of the transaction:
             1801          (A) separately states the items subject to taxation under this chapter at each of the
             1802      different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
             1803          (B) is able to identify by reasonable and verifiable standards the tangible personal
             1804      property, product, or service that is subject to taxation under this chapter at the lower tax rate
             1805      from the books and records the seller keeps in the seller's regular course of business.
             1806          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
             1807      seller's regular course of business includes books and records the seller keeps in the regular
             1808      course of business for nontax purposes.
             1809          [(e)] (g) Subject to Subsections (2)[(f)](h) and [(g)](i), a tax rate repeal or tax rate
             1810      change for a tax rate imposed under the following shall take effect on the first day of a calendar
             1811      quarter:
             1812          (i) Subsection (2)(a)(i)(A);
             1813          (ii) Subsection (2)(b)(i);
             1814          (iii) Subsection (2)(c)(i); or
             1815          (iv) Subsection (2)(d)(i)(A)(I).
             1816          [(f)] (h) (i) A tax rate increase shall take effect on the first day of the first billing period
             1817      that begins after the effective date of the tax rate increase if the billing period for the
             1818      transaction begins before the effective date of a tax rate increase imposed under:
             1819          (A) Subsection (2)(a)(i)(A);
             1820          (B) Subsection (2)(b)(I);


             1821          (C) Subsection (2)(c)(i); or
             1822          (D) Subsection (2)(d)(i)(A)(I).
             1823          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             1824      billing period that began before the effective date of the repeal of the tax or the tax rate
             1825      decrease if the billing period for the transaction begins before the effective date of the repeal of
             1826      the tax or the tax rate decrease imposed under:
             1827          (A) Subsection (2)(a)(i)(A);
             1828          (B) Subsection (2)(b)(i);
             1829          (C) Subsection (2)(c)(i); or
             1830          (D) Subsection (2)(d)(i)(A)(I).
             1831          [(g)] (i) (i) For a tax rate described in Subsection (2)[(g)](i)(ii), if a tax due on a
             1832      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
             1833      tax rate repeal or change in a tax rate takes effect:
             1834          (A) on the first day of a calendar quarter; and
             1835          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1836          (ii) Subsection (2)[(g)](i)(i) applies to the tax rates described in the following:
             1837          (A) Subsection (2)(a)(i)(A);
             1838          (B) Subsection (2)(b)(i);
             1839          (C) Subsection (2)(c)(i); or
             1840          (D) Subsection (2)(d)(i)(A)(I).
             1841          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1842      the commission may by rule define the term "catalogue sale."
             1843          (3) (a) The following state taxes shall be deposited into the General Fund:
             1844          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1845          (ii) the tax imposed by Subsection (2)(b)(i);
             1846          (iii) the tax imposed by Subsection (2)(c)(i); or
             1847          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1848          (b) The following local taxes shall be distributed to a county, city, or town as provided


             1849      in this chapter:
             1850          (i) the tax imposed by Subsection (2)(a)(ii);
             1851          (ii) the tax imposed by Subsection (2)(b)(ii);
             1852          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1853          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             1854          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1855      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1856      through (g):
             1857          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1858          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             1859          (B) for the fiscal year; or
             1860          (ii) $17,500,000.
             1861          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             1862      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             1863      Department of Natural Resources to:
             1864          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             1865      protect sensitive plant and animal species; or
             1866          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1867      act, to political subdivisions of the state to implement the measures described in Subsections
             1868      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             1869          (ii) Money transferred to the Department of Natural Resources under Subsection
             1870      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             1871      person to list or attempt to have listed a species as threatened or endangered under the
             1872      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1873          (iii) At the end of each fiscal year:
             1874          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1875      Conservation and Development Fund created in Section 73-10-24 ;
             1876          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan


             1877      Program Subaccount created in Section 73-10c-5 ; and
             1878          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1879      Program Subaccount created in Section 73-10c-5 .
             1880          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             1881      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1882      created in Section 4-18-6 .
             1883          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1884      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1885      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             1886      water rights.
             1887          (ii) At the end of each fiscal year:
             1888          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1889      Conservation and Development Fund created in Section 73-10-24 ;
             1890          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1891      Program Subaccount created in Section 73-10c-5 ; and
             1892          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1893      Program Subaccount created in Section 73-10c-5 .
             1894          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1895      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1896      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1897          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1898      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             1899      Development Fund may also be used to:
             1900          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1901      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1902      quantifying surface and ground water resources and describing the hydrologic systems of an
             1903      area in sufficient detail so as to enable local and state resource managers to plan for and
             1904      accommodate growth in water use without jeopardizing the resource;


             1905          (B) fund state required dam safety improvements; and
             1906          (C) protect the state's interest in interstate water compact allocations, including the
             1907      hiring of technical and legal staff.
             1908          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1909      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1910      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1911          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1912      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             1913      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             1914          (i) provide for the installation and repair of collection, treatment, storage, and
             1915      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1916          (ii) develop underground sources of water, including springs and wells; and
             1917          (iii) develop surface water sources.
             1918          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1919      2006, the difference between the following amounts shall be expended as provided in this
             1920      Subsection (5), if that difference is greater than $1:
             1921          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1922      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1923          (ii) $17,500,000.
             1924          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1925          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1926      credits; and
             1927          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1928      restoration.
             1929          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1930      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1931      created in Section 73-10-24 .
             1932          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the


             1933      remaining difference described in Subsection (5)(a) shall be:
             1934          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             1935      credits; and
             1936          (B) expended by the Division of Water Resources for cloud-seeding projects
             1937      authorized by Title 73, Chapter 15, Modification of Weather.
             1938          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1939      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1940      created in Section 73-10-24 .
             1941          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1942      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             1943      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             1944      Division of Water Resources for:
             1945          (i) preconstruction costs:
             1946          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1947      26, Bear River Development Act; and
             1948          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1949      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             1950          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1951      Chapter 26, Bear River Development Act;
             1952          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1953      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1954          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             1955      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1956          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1957      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             1958      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1959      incurred for employing additional technical staff for the administration of water rights.
             1960          (f) At the end of each fiscal year, any unexpended dedicated credits described in


             1961      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             1962      Fund created in Section 73-10-24 .
             1963          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1964      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1965      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             1966      the Transportation Fund created by Section 72-2-102 .
             1967          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             1968      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             1969      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             1970      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             1971      transactions under Subsection (1).
             1972          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             1973      have been paid off and the highway projects completed that are intended to be paid from
             1974      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             1975      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             1976      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             1977      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             1978      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             1979          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             1980      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             1981      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             1982      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             1983      following taxes, which represents a portion of the approximately 17% of sales and use tax
             1984      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             1985          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1986          (ii) the tax imposed by Subsection (2)(b)(i);
             1987          (iii) the tax imposed by Subsection (2)(c)(i); and
             1988          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).


             1989          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             1990      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             1991      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             1992      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             1993      of the revenues collected from the following taxes, which represents a portion of the
             1994      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             1995      on vehicles and vehicle-related products:
             1996          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1997          (ii) the tax imposed by Subsection (2)(b)(i);
             1998          (iii) the tax imposed by Subsection (2)(c)(i); and
             1999          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             2000          (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             2001      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
             2002      obligation bonds have been paid off and the highway projects completed that are intended to be
             2003      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             2004      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             2005      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
             2006      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
             2007      revenues collected from the following taxes, which represents a portion of the approximately
             2008      17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
             2009      vehicle-related products:
             2010          (i) the tax imposed by Subsection (2)(a)(i)(A);
             2011          (ii) the tax imposed by Subsection (2)(b)(i);
             2012          (iii) the tax imposed by Subsection (2)(c)(i); and
             2013          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             2014          (d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             2015      Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
             2016      year beginning on or after July 1, 2012, the Division of Finance shall deposit into the


             2017      Centennial Highway Fund Restricted Account created by Section 72-2-118 :
             2018          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             2019      the revenues collected from the following taxes, which represents a portion of the
             2020      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             2021      on vehicles and vehicle-related products:
             2022          (A) the tax imposed by Subsection (2)(a)(i)(A);
             2023          (B) the tax imposed by Subsection (2)(b)(i);
             2024          (C) the tax imposed by Subsection (2)(c)(i); and
             2025          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             2026          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             2027      current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
             2028      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             2029      (8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
             2030          (e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             2031      Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
             2032      have been paid off and the highway projects completed that are intended to be paid from
             2033      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             2034      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
             2035      beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
             2036      Investment Fund of 2005 created by Section 72-2-124 :
             2037          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             2038      the revenues collected from the following taxes, which represents a portion of the
             2039      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             2040      on vehicles and vehicle-related products:
             2041          (A) the tax imposed by Subsection (2)(a)(i)(A);
             2042          (B) the tax imposed by Subsection (2)(b)(i);
             2043          (C) the tax imposed by Subsection (2)(c)(i); and
             2044          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus


             2045          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             2046      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             2047      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             2048      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
             2049          (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
             2050      sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
             2051      lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
             2052      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             2053      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             2054      (8)(d) or (e) equal to the product of:
             2055          (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
             2056      in the previous fiscal year; and
             2057          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             2058      (8)(e)(i)(A) through (D) in the current fiscal year.
             2059          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             2060      Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
             2061      taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
             2062      of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
             2063      in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
             2064      (e).
             2065          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             2066      from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
             2067      under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
             2068      revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             2069      (D) in the current fiscal year under Subsection (8)(d) or (e).
             2070          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             2071      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             2072      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .


             2073          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             2074      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             2075      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             2076      Critical Highway Needs Fund created by Section 72-2-125 .
             2077          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             2078      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             2079      have been paid off and the highway projects completed that are included in the prioritized
             2080      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             2081      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             2082      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             2083      of 2005 created by Section 72-2-124 .
             2084          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             2085      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             2086      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             2087          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             2088      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             2089      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             2090      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2091      Subsection (1).
             2092          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             2093      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             2094      food and food ingredients, except for tax revenue generated by a bundled transaction
             2095      attributable to food and food ingredients and tangible personal property other than food and
             2096      food ingredients described in Subsection (2)(e).
             2097          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             2098      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             2099      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             2100      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)


             2101      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             2102      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             2103      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2104      Subsection (1).
             2105          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             2106      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             2107      charged for food and food ingredients, except for tax revenue generated by a bundled
             2108      transaction attributable to food and food ingredients and tangible personal property other than
             2109      food and food ingredients described in Subsection (2)(e).
             2110          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             2111      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             2112      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             2113      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             2114      chokepoints in construction management.
             2115          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             2116      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             2117      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             2118      and food ingredients and tangible personal property other than food and food ingredients
             2119      described in Subsection (2)(e).
             2120          Section 6. Section 59-12-110 is amended to read:
             2121           59-12-110. Refunds procedures.
             2122          (1) A seller that files a claim for a refund under Section 59-12-107 for bad debt shall
             2123      file the claim with the commission within three years from the date on which the seller could
             2124      first claim the refund for the bad debt.
             2125          (2) A seller that files a claim for a refund for a repossessed item shall file the claim
             2126      with the commission within three years from the date the item is repossessed.
             2127          [(3) A taxpayer may obtain a refund under Section 59-1-1410 of a tax paid under this
             2128      chapter on a transaction that is taxable under Subsection 59-12-103 (1) if:]


             2129          [(a) the sale or use is exempt from sales and use taxes under Section 59-12-104 on the
             2130      date of purchase; and]
             2131          [(b) the taxpayer files a claim for a refund with the commission as provided in Section
             2132      59-1-1410 .]
             2133          (3) Except as provided in Subsection (1) or (2), procedures and requirements for a
             2134      taxpayer to obtain a refund from the commission are as provided in Section 59-1-1410 .
             2135          Section 7. Retrospective operation -- Effective date.
             2136          (1) The amendments to the following sections have retrospective operation to
             2137      September 27, 2011, and apply to a refund request that is pending on, or filed on or after,
             2138      September 27, 2011:
             2139          (a) Section 59-1-1410 ;
             2140          (b) Section 59-1-1417 ; and
             2141          (c) Section 59-12-110 .
             2142          (2) The amendments to the following sections take effect on July 1, 2014, and apply to
             2143      a refund request that is pending on, or filed on or after, January 1, 2012:
             2144          (a) Section 10-1-405 ;
             2145          (b) Section 59-12-102 ; and
             2146          (c) Section 59-12-103 .


[Bill Documents][Bills Directory]